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rve2023-07-31
REGISTERED NUMBER: 06905848 (England and Wales)















STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024

FOR

CHEANEY SHOES LIMITED

CHEANEY SHOES LIMITED (REGISTERED NUMBER: 06905848)

CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024










Page

Company Information 1

Strategic Report 2

Report of the Directors 3

Report of the Independent Auditors 5

Statement of Comprehensive Income 8

Statement of Financial Position 9

Statement of Changes in Equity 10

Statement of Cash Flows 11

Notes to the Statement of Cash Flows 12

Notes to the Financial Statements 13


CHEANEY SHOES LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31 JULY 2024







DIRECTORS: W J Church BSc, MBA, MRICS
J D I Church BA (Hons) C. Dip A.F
A J Bateman





REGISTERED OFFICE: 69 Rushton Road
Desborough
Northamptonshire
NN14 2RR





REGISTERED NUMBER: 06905848 (England and Wales)





AUDITORS: Shaw Gibbs (Audit) Limited
Chartered Certified Accountants
Statutory Auditor
Eagle House
28 Billing Road
Northampton
Northamptonshire
NN1 5AJ

CHEANEY SHOES LIMITED (REGISTERED NUMBER: 06905848)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 JULY 2024


The directors present their strategic report for the year ended 31 July 2024.

REVIEW OF BUSINESS
The financial year was a more challenging one as cost pressures continued to adversely effect the business. In particular increasing wage costs and utility contracts. Sales increased by 3% to £9,399,464 and net assets grew to £9,358,086 resulting in an EBITDA performance for the year of £812,275.

Significant capital investment was made during the year with the opening of a new retail shop on New Bond Street, London, and various improvements to the Factory.

Autumn trade is fairing well in retail and the Directors are confident that this will continue. The recently announced Employer National Insurance increases from next April will give an additional cost to the business with 141 employees. Cost reductions plans are being investigated by the Board.

The business has maintained a strong balance sheet and cash reserves giving a sound basis for ongoing growth in the years ahead.

PRINCIPAL RISKS AND UNCERTAINTIES
Our business is dependent upon maintaining a sufficient order book to supply the factory, receiving a consistent supply of quality leather at stable prices, and growing and retaining a skilled labour force.

Financial risk management
A significant element of our raw materials are purchased in Euros, giving us foreign currency risk exposure. We are able to offset part of this by using Euro inflows from our European sales.

The manufacturing business requires a sufficient level of working capital to meet its needs. The financial requirements of the business are monitored on a regular basis, and financial facilities are in place to ensure sufficient headroom.

Interest rate risk
The Company finances its operations through a mixture of retained profits, bank borrowings and related party loans. The Company's exposure to interest rate fluctuations on its borrowings is managed by use of a mixture of fixed and variable rates.

Utility bills
In common with many businesses the company is continuing to face significant increases in its energy costs. The Company uses an energy broker to agree contracts with suppliers. These have provided protection against the current market increases. It is difficult to accurately forecast the increase in costs the business will face as these contracts end. The costs will be dependent upon future market pricing and the level of any Government support available.


Currency risk
The Company is exposed to transaction foreign exchange risk. Transactions are partially hedged via Euro purchases against Euro receipts.

SIGNED BY ORDER OF THE DIRECTORS:





W J Church BSc, MBA, MRICS - Director


6 January 2025

CHEANEY SHOES LIMITED (REGISTERED NUMBER: 06905848)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 JULY 2024


The directors present their report with the financial statements of the company for the year ended 31 July 2024.

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of design, manufacture and distribution of footwear.

DIVIDENDS
The total distribution of dividends for the year ended 31 July 2024 was £180,000 (2023: £200,000).

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

W J Church BSc, MBA, MRICS
J D I Church BA (Hons) C. Dip A.F
A J Bateman

POLITICAL DONATIONS AND EXPENDITURE
There were no political donations.

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), 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 of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-select suitable accounting policies and then apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

CHEANEY SHOES LIMITED (REGISTERED NUMBER: 06905848)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 JULY 2024


AUDITORS
The auditors, Shaw Gibbs (Audit) Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

SIGNED BY ORDER OF THE DIRECTORS:





W J Church BSc, MBA, MRICS - Director


6 January 2025

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
CHEANEY SHOES LIMITED


Opinion
We have audited the financial statements of Cheaney Shoes Limited (the 'company') for the year ended 31 July 2024 which comprise the Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and Notes to the Statement of Cash Flows, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
-give a true and fair view of the state of the company's affairs as at 31 July 2024 and of its profit for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

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

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

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

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

Other information
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
CHEANEY SHOES LIMITED


Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

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

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

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

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be the override of controls by management and the understatement of revenue. Our audit procedures to respond to these risks included enquiries of management about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, reviewing regulatory correspondence and professional fees, detailed substantive testing on the completeness of income, and reviewing accounting estimates for biases.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

These inherent limitations are particularly significant in the case of misstatement resulting from fraud as this may involve sophisticated schemes designed to avoid detection, including deliberate failure to record transactions, collusion or the provision of intentional misrepresentations.

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

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
CHEANEY SHOES LIMITED


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




Robyn Liddell (Senior Statutory Auditor)
for and on behalf of Shaw Gibbs (Audit) Limited
Chartered Certified Accountants
Statutory Auditor
Eagle House
28 Billing Road
Northampton
Northamptonshire
NN1 5AJ

9 January 2025

CHEANEY SHOES LIMITED (REGISTERED NUMBER: 06905848)

STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 JULY 2024

2024 2023
Notes £    £    £    £   

TURNOVER 3 9,399,464 9,090,912

Cost of sales 6,681,492 6,436,107
GROSS PROFIT 2,717,972 2,654,805

Distribution costs 1,356,620 1,121,115
Administrative expenses 844,868 739,552
2,201,488 1,860,667
OPERATING PROFIT 5 516,484 794,138

Interest receivable and similar income 104,226 75,958
620,710 870,096

Interest payable and similar expenses 6 2,679 2,679
PROFIT BEFORE TAXATION 618,031 867,417

Tax on profit 7 132,836 206,855
PROFIT FOR THE FINANCIAL YEAR 485,195 660,562

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

485,195

660,562

CHEANEY SHOES LIMITED (REGISTERED NUMBER: 06905848)

STATEMENT OF FINANCIAL POSITION
31 JULY 2024

2024 2023
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 9 1 1
Tangible assets 10 1,906,718 1,855,890
1,906,719 1,855,891

CURRENT ASSETS
Stocks 11 6,835,833 5,909,557
Debtors 12 713,817 733,340
Cash at bank and in hand 1,773,058 2,233,172
9,322,708 8,876,069
CREDITORS
Amounts falling due within one year 13 1,610,237 1,393,543
NET CURRENT ASSETS 7,712,471 7,482,526
TOTAL ASSETS LESS CURRENT
LIABILITIES

9,619,190

9,338,417

CREDITORS
Amounts falling due after more than one
year

14

(17,574

)

(43,955

)

PROVISIONS FOR LIABILITIES 17 (243,530 ) (241,571 )
NET ASSETS 9,358,086 9,052,891

CAPITAL AND RESERVES
Called up share capital 18 50,000 50,000
Revaluation reserve 19 299,391 308,509
Retained earnings 19 9,008,695 8,694,382
SHAREHOLDERS' FUNDS 9,358,086 9,052,891

The financial statements were approved by the Board of Directors and authorised for issue on 6 January 2025 and were signed on its behalf by:





J D I Church BA (Hons) C. Dip A.F - Director


CHEANEY SHOES LIMITED (REGISTERED NUMBER: 06905848)

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JULY 2024

Called up
share Retained Revaluation Total
capital earnings reserve equity
£    £    £    £   
Balance at 1 August 2022 50,000 8,224,702 317,627 8,592,329

Changes in equity
Dividends - (200,000 ) - (200,000 )
Total comprehensive income - 669,680 (9,118 ) 660,562
Balance at 31 July 2023 50,000 8,694,382 308,509 9,052,891

Changes in equity
Dividends - (180,000 ) - (180,000 )
Total comprehensive income - 494,313 (9,118 ) 485,195
Balance at 31 July 2024 50,000 9,008,695 299,391 9,358,086

CHEANEY SHOES LIMITED (REGISTERED NUMBER: 06905848)

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 JULY 2024

2024 2023
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 114,255 (218,485 )
Interest element of hire purchase
payments paid

(2,679

)

(2,679

)
Tax paid (122,916 ) (80,826 )
Net cash from operating activities (11,340 ) (301,990 )

Cash flows from investing activities
Purchase of tangible fixed assets (346,619 ) (843,855 )
Sale of tangible fixed assets - 16,200
Interest received 104,226 75,958
Net cash from investing activities (242,393 ) (751,697 )

Cash flows from financing activities
Capital repayments in year (26,381 ) (26,381 )
Equity dividends paid (180,000 ) (200,000 )
Net cash from financing activities (206,381 ) (226,381 )

Decrease in cash and cash equivalents (460,114 ) (1,280,068 )
Cash and cash equivalents at
beginning of year

2

2,233,172

3,513,240

Cash and cash equivalents at end of
year

2

1,773,058

2,233,172

CHEANEY SHOES LIMITED (REGISTERED NUMBER: 06905848)

NOTES TO THE STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 JULY 2024


1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS
2024 2023
£    £   
Profit before taxation 618,031 867,417
Depreciation charges 295,791 218,256
Loss on disposal of fixed assets - 1,339
Finance costs 2,679 2,679
Finance income (104,226 ) (75,958 )
812,275 1,013,733
Increase in stocks (926,276 ) (1,190,390 )
Decrease/(increase) in trade and other debtors 48,676 (61,023 )
Increase in trade and other creditors 179,580 19,195
Cash generated from operations 114,255 (218,485 )

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 31 July 2024
31/7/24 1/8/23
£    £   
Cash and cash equivalents 1,773,058 2,233,172
Year ended 31 July 2023
31/7/23 1/8/22
£    £   
Cash and cash equivalents 2,233,172 3,513,240


3. ANALYSIS OF CHANGES IN NET FUNDS

At 1/8/23 Cash flow At 31/7/24
£    £    £   
Net cash
Cash at bank and in hand 2,233,172 (460,114 ) 1,773,058
2,233,172 (460,114 ) 1,773,058
Debt
Finance leases (70,050 ) 26,381 (43,669 )
(70,050 ) 26,381 (43,669 )
Total 2,163,122 (433,733 ) 1,729,389

CHEANEY SHOES LIMITED (REGISTERED NUMBER: 06905848)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024


1. STATUTORY INFORMATION

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

The presentation currency of the financial statements is the Pound Sterling (£).


2. ACCOUNTING POLICIES

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

Critical accounting judgements and key sources of estimation uncertainty
The preparation of financial statements requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the company accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements are disclosed within the individual accounting policies below.

Turnover
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Goodwill
Goodwill, being the amount paid in connection with the acquisition of a business in 2009, is being amortised evenly over its estimated useful life of five years.

Intangible assets
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

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.
Freehold property - 2% on cost
Long leasehold - over the life of the lease
Plant and machinery - at varying rates on cost
Fixtures and fittings - 33% on cost
Motor vehicles - 20% on cost
Computer equipment - at varying rates on cost

Depreciation methods, useful lives and residual values are reviewed at each balance sheet date. The selection of these residual values and estimated lives requires the exercise of judgement. The directors are required to assess whether there is an indication of impairment to the carrying value of assets. In making that assessment, judgements are made in estimating value in use. The directors consider that the individual carrying values of assets are supportable by their value in use.

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

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

CHEANEY SHOES LIMITED (REGISTERED NUMBER: 06905848)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JULY 2024


2. ACCOUNTING POLICIES - continued

Financial instruments
Cash and cash equivalents in the balance sheet comprise cash at banks and in hand and short term deposits with an original maturity date of three months or less.

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the statement of comprehensive income under administrative expenses.

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 entity after deducting all of its financial liabilities.

Where the contractual obligations of financial instruments (including share capital) are equivalent to a similar debt instrument, those financial instruments are classed as financial liabilities. Financial liabilities are presented as such in the balance sheet. Finance costs and gains or losses relating to financial liabilities are included in the profit and loss account. Finance costs are calculated so as to produce a constant rate of return on the outstanding liability.

Where the contractual terms of share capital do not have any terms meeting the definition of a financial liability then this is classed as an equity instrument. Dividends and distributions relating to equity instruments are debited direct to equity.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, 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 statement of financial position date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position 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.

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

CHEANEY SHOES LIMITED (REGISTERED NUMBER: 06905848)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JULY 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. TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by geographical market is given below:

2024 2023
£    £   
United Kingdom 6,560,236 6,515,793
Rest of the world 2,839,228 2,575,119
9,399,464 9,090,912

4. EMPLOYEES AND DIRECTORS
2024 2023
£    £   
Wages and salaries 3,738,983 3,694,863
Social security costs 340,332 329,949
Other pension costs 86,011 79,223
4,165,326 4,104,035

The average number of employees during the year was as follows:
2024 2023

Direct labour staff 79 82
Administrative staff 30 31
Retail & e-commerce staff 32 29
141 142

2024 2023
£    £   
Directors' remuneration 277,584 270,666
Directors' pension contributions to money purchase schemes 9,135 5,383

CHEANEY SHOES LIMITED (REGISTERED NUMBER: 06905848)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JULY 2024


4. EMPLOYEES AND DIRECTORS - continued

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

Money purchase schemes 3 2

Information regarding the highest paid director is as follows:
2024 2023
£    £   
Emoluments etc 93,711 90,236
Pension contributions to money purchase schemes 3,907 4,062

5. OPERATING PROFIT

The operating profit is stated after charging:

2024 2023
£    £   
Other operating leases - 3,600
Depreciation - owned assets 281,463 204,075
Depreciation - assets on hire purchase contracts 14,328 14,181
Loss on disposal of fixed assets - 1,339
Auditors' remuneration 12,825 12,690

6. INTEREST PAYABLE AND SIMILAR EXPENSES
2024 2023
£    £   
Hire purchase 2,679 2,679

7. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2024 2023
£    £   
Current tax:
UK corporation tax 187,827 150,713
Over/under provision in prior
year (56,950 ) 13
Total current tax 130,877 150,726

Deferred tax 1,959 56,129
Tax on profit 132,836 206,855

UK corporation tax has been charged at 25% (2023 - 25%).

CHEANEY SHOES LIMITED (REGISTERED NUMBER: 06905848)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JULY 2024


7. TAXATION - continued

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

2024 2023
£    £   
Profit before tax 618,031 867,417
Profit multiplied by the standard rate of corporation tax in the UK of
25% (2023 - 25%)

154,508

216,854

Effects of:
Expenses not deductible for tax purposes 1,788 (342 )
Depreciation in excess of capital allowances 33,489 18,978
Adjustments to tax charge in respect of previous periods (56,949 ) (12 )
Change in tax rates - (28,623 )
Total tax charge 132,836 206,855

8. DIVIDENDS
2024 2023
£    £   
Ordinary A shares of £1 each
Interim 180,000 200,000

9. INTANGIBLE FIXED ASSETS
Goodwill
£   
COST
At 1 August 2023
and 31 July 2024 1
NET BOOK VALUE
At 31 July 2024 1
At 31 July 2023 1

CHEANEY SHOES LIMITED (REGISTERED NUMBER: 06905848)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JULY 2024


10. TANGIBLE FIXED ASSETS
Freehold Long Plant and
property leasehold machinery
£    £    £   
COST
At 1 August 2023 815,000 1,567,179 975,382
Additions - 197,935 84,814
Disposals - (267,219 ) -
At 31 July 2024 815,000 1,497,895 1,060,196
DEPRECIATION
At 1 August 2023 90,999 1,108,291 395,284
Charge for year 10,111 132,799 98,232
Eliminated on disposal - (267,219 ) -
At 31 July 2024 101,110 973,871 493,516
NET BOOK VALUE
At 31 July 2024 713,890 524,024 566,680
At 31 July 2023 724,001 458,888 580,098

Fixtures
and Motor Computer
fittings vehicles equipment Totals
£    £    £    £   
COST
At 1 August 2023 409,211 20,810 623,460 4,411,042
Additions - 13,825 50,045 346,619
Disposals - - - (267,219 )
At 31 July 2024 409,211 34,635 673,505 4,490,442
DEPRECIATION
At 1 August 2023 354,343 20,810 585,425 2,555,152
Charge for year 845 2,535 51,269 295,791
Eliminated on disposal - - - (267,219 )
At 31 July 2024 355,188 23,345 636,694 2,583,724
NET BOOK VALUE
At 31 July 2024 54,023 11,290 36,811 1,906,718
At 31 July 2023 54,868 - 38,035 1,855,890

Included in cost of land and buildings is freehold land of £ 360,000 (2023 - £ 360,000 ) which is not depreciated.

The net book value of tangible fixed assets includes £ 110,885 (2023 - £ 125,213 ) in respect of assets held under hire purchase contracts.

CHEANEY SHOES LIMITED (REGISTERED NUMBER: 06905848)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JULY 2024


11. STOCKS
2024 2023
£    £   
Raw materials 723,885 775,641
Work-in-progress 517,036 565,296
Finished goods 5,594,912 4,568,620
6,835,833 5,909,557

12. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Trade debtors 520,455 545,300
Other debtors 56,152 29,475
Tax 29,153 -
Prepayments and accrued income 108,057 158,565
713,817 733,340

13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Hire purchase contracts (see note 15) 26,095 26,095
Trade creditors 591,795 395,117
Tax 187,827 150,713
Social security and other taxes 87,720 89,529
VAT 141,499 124,677
Other creditors 281,352 295,710
Accruals and deferred income 293,949 311,702
1,610,237 1,393,543

14. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
2024 2023
£    £   
Hire purchase contracts (see note 15) 17,574 43,955

15. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts
2024 2023
£    £   
Net obligations repayable:
Within one year 26,095 26,095
Between one and five years 17,574 43,955
43,669 70,050

CHEANEY SHOES LIMITED (REGISTERED NUMBER: 06905848)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JULY 2024


15. LEASING AGREEMENTS - continued

Non-cancellable operating leases
2024 2023
£    £   
Within one year 569,617 526,570
Between one and five years 2,046,177 851,121
In more than five years 286,712 -
2,902,506 1,377,691

16. SECURED DEBTS

The following secured debts are included within creditors:

2024 2023
£    £   
Hire purchase contracts 43,669 70,050

Hire purchase debt has all been secured on the related assets.

17. PROVISIONS FOR LIABILITIES
2024 2023
£    £   
Deferred tax 243,530 241,571

Deferred
tax
£   
Balance at 1 August 2023 241,571
Provided during year 1,959
Balance at 31 July 2024 243,530

Deferred tax has been provided at 25% (2023 - 25%).

18. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2024 2023
value: £    £   
5,000 Ordinary A £1 5,000 5,000
22,500 Ordinary B £1 22,500 22,500
22,500 Ordinary C £1 22,500 22,500
50,000 50,000

CHEANEY SHOES LIMITED (REGISTERED NUMBER: 06905848)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JULY 2024


19. RESERVES
Retained Revaluation
earnings reserve Totals
£    £    £   

At 1 August 2023 8,694,382 308,509 9,002,891
Profit for the year 485,195 485,195
Dividends (180,000 ) (180,000 )
Transfer 9,118 (9,118 ) -
At 31 July 2024 9,008,695 299,391 9,308,086

20. RELATED PARTY DISCLOSURES

During the year, a total of key management personnel compensation of £ 319,668 (2023 - £ 308,374 ) was paid.