Company Registration No. 02787775 (England and Wales)
NEEDHAM CHALKS (HAM) LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024
PAGES FOR FILING WITH REGISTRAR
NEEDHAM CHALKS (HAM) LIMITED
CONTENTS
Page
Balance sheet
1
Statement of changes in equity
2
Notes to the financial statements
3 - 10
NEEDHAM CHALKS (HAM) LIMITED
BALANCE SHEET
AS AT
31 JANUARY 2024
31 January 2024
- 1 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
5
1,827,221
2,016,498
Investment property
6
857,186
990,522
2,684,407
3,007,020
Current assets
Stocks
327,826
349,706
Debtors
7
691,394
553,855
Cash at bank and in hand
631,516
2,878,948
1,650,736
3,782,509
Creditors: amounts falling due within one year
8
(447,333)
(3,369,748)
Net current assets
1,203,403
412,761
Net assets
3,887,810
3,419,781
Capital and reserves
Called up share capital
10
2
2
Profit and loss reserves
11
3,887,808
3,419,779
Total equity
3,887,810
3,419,781

The directors of the company have taken advantage of the option under section 444 of the Companies Act 2006 to not include a copy of the profit and loss account or directors' report within the financial statements.true

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

The financial statements were approved by the board of directors and authorised for issue on 28 October 2024 and are signed on its behalf by:
CR Collings
Director
Company registration number 02787775 (England and Wales)
NEEDHAM CHALKS (HAM) LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JANUARY 2024
- 2 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 February 2022
2
1,971,169
1,971,171
Year ended 31 January 2023:
Profit and total comprehensive income
-
1,448,610
1,448,610
Balance at 31 January 2023
2
3,419,779
3,419,781
Year ended 31 January 2024:
Profit and total comprehensive income
-
468,029
468,029
Balance at 31 January 2024
2
3,887,808
3,887,810
NEEDHAM CHALKS (HAM) LIMITED
NOTES TO THE  FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024
- 3 -
1
Accounting policies
Company information

Needham Chalks (HAM) Limited is a private company limited by shares incorporated in England and Wales. The registered office is Latchmore Bank, Little Hallingbury, Bishop's Stortford, Hertfordshire, CM22 7PJ.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements. Based upon the information available they consider that the company will continue in business for at least the next 12 months.

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue from the sale of goods and services is recognised when the significant risks and rewards of ownership of the goods and/or services have passed to the buyer, the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.4
Intangible fixed assets - 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.

NEEDHAM CHALKS (HAM) LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 4 -
1.5
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold buildings
2% straight line
Quarry plant and equipment
10-25% straight line
Fixtures, fittings & equipment
25% straight line
Computer equipment
25% straight line
Motor vehicles
25% straight line
Quarries
The quarries are depreciated over the life of the quarry licence with consideration given to average extraction rates

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 profit or loss.

1.6
Investment properties

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.

1.7
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.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

1.8
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.9
Cash and cash equivalents

Cash at bank and in hand are basic financial assets and include cash in hand and deposits held at call with banks.

NEEDHAM CHALKS (HAM) LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 5 -
1.10
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.

Basic financial assets

Basic financial assets, which include 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 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. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets are 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.

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, including creditors and loans from fellow group companies 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.

Other financial liabilities

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value though profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

1.11
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.12
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

NEEDHAM CHALKS (HAM) LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 6 -
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 it 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 relates 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.

1.13
Employee benefits

The costs of short-term employee 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.

 

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.

1.14
Retirement benefits
The company operates a defined contribution scheme for the benefit of its employees. Contributions payable are charged to the profit and loss account in the year they are payable.
1.15
Leases

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

2
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 only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

NEEDHAM CHALKS (HAM) LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
2
Judgements and key sources of estimation uncertainty
(Continued)
- 7 -
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.

Depreciation

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives.

Deferred taxation

Deferred taxation is calculated as the timing difference between the tax treatment and accounting treatment of transactions in the financial statements. Deferred taxation is calculated at the tax rates expected to apply when the liability is settled and is reviewed annually for indications that the liability recognised will no longer requirement settlement.

Stock valuation

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Stock is reviewed annually for signs of impairment and obsolescence, and where this is found to be the case, a stock provision included in the financial statements.

Valuation of investment property

The fair value of investment property is arrived at based on a valuation by the directors which considers the present value of the future rental income and the residual value of the land. Gains or losses on revaluation are recognised in the profit and loss account.

3
Employees

The average monthly number of persons (including directors) employed by the company during the year was 18 (2023 -17).

4
Intangible fixed assets
Goodwill
£
Cost
At 1 February 2023 and 31 January 2024
699,000
Amortisation and impairment
At 1 February 2023 and 31 January 2024
699,000
Carrying amount
At 31 January 2024
-
0
At 31 January 2023
-
0
NEEDHAM CHALKS (HAM) LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 8 -
5
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 1 February 2023
1,779,673
1,893,645
3,673,318
Additions
-
0
59,324
59,324
Disposals
-
0
(20,571)
(20,571)
At 31 January 2024
1,779,673
1,932,398
3,712,071
Depreciation and impairment
At 1 February 2023
359,819
1,297,001
1,656,820
Depreciation charged in the year
74,729
168,369
243,098
Eliminated in respect of disposals
-
0
(15,068)
(15,068)
At 31 January 2024
434,548
1,450,302
1,884,850
Carrying amount
At 31 January 2024
1,345,125
482,096
1,827,221
At 31 January 2023
1,419,854
596,644
2,016,498
6
Investment property
2024
£
Fair value
At 1 February 2023
990,522
Revaluations
(133,336)
At 31 January 2024
857,186

Investment property comprises of a quarry which was transferred from freehold land and buildings in the financial year end 31 January 2023, following the property being leased out to an independent third party. The fair value of the investment property has been arrived at on the basis of a valuation by the directors, considering the present value of the future rental income and residual value of the land.

7
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
379,251
427,823
Corporation tax recoverable
40,876
-
0
Amounts owed by group undertakings
36,337
-
0
Other debtors
95,930
75,266
552,394
503,089
NEEDHAM CHALKS (HAM) LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
7
Debtors
(Continued)
- 9 -
2024
2023
Amounts falling due after more than one year:
£
£
Deferred tax asset
139,000
50,766
Total debtors
691,394
553,855
8
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
312,318
221,299
Amounts owed to group undertakings
-
0
2,737,153
Corporation tax
-
0
163,875
Other taxation and social security
12,900
56,680
Other creditors
122,115
190,741
447,333
3,369,748
9
Audit report information

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:

The auditor's report was unqualified.

Senior Statutory Auditor:
Caroline Peters
Statutory Auditor:
Rickard Luckin Limited
Date of audit report:
29 October 2024
10
Called up share capital
2024
2023
£
£
Ordinary share capital
Issued and fully paid
2 Ordinary shares of £1 each
2
2
11
Profit and loss reserves

The company has £403,455 (2023: £503,457) of non distributable retained earnings and £3,547,442 (2023: £2,916,322) of distributable retained earnings.

NEEDHAM CHALKS (HAM) LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 10 -
12
Events after the reporting date

After the balance sheet date, Needham Chalks sold a freehold property and the tangible fixed assets associated with the property to an independent third party for consideration of £2,718,500.

13
Related party transactions

The company has taken advantage of the exemption available to qualifying entities, as the company is a wholly owned subsidiary, from the requirement to disclose transactions with group companies on the grounds that publicly available consolidated financial statements are prepared by the ultimate parent company.

 

At the year end the company was owed £7,591 (2023: £97,900) by an associated company with common directorships and with whom, a joint venture ended in the financial year.

14
Parent company

The company is a wholly owned subsidiary of Harlow Agricultural Merchants Limited, a company incorporated in England and Wales. The registered office, and principal place of business, of Harlow Agricultural Merchants Limited is - Latchmore Bank, Little Hallingbury, Bishop's Stortford, Hertfordshire, CM22 7PJ.

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