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Registration number: 03055556

Challenge Electronics Limited

Unaudited Financial Statements

for the Year Ended 31 May 2024

 

Challenge Electronics Limited

Contents

Balance Sheet

1 to 2

Notes to the Unaudited Financial Statements

3 to 10

 

Challenge Electronics Limited

(Registration number: 03055556)
Balance Sheet as at 31 May 2024

Note

2024
£

2023
£

Fixed assets

 

Tangible assets

4

30,280

40,374

Investments

5

23,678

23,678

 

53,958

64,052

Current assets

 

Stocks

6

78,525

87,462

Debtors

7

150,167

105,405

Cash at bank and in hand

 

98,505

188,904

 

327,197

381,771

Creditors: Amounts falling due within one year

8

(204,280)

(198,158)

Net current assets

 

122,917

183,613

Total assets less current liabilities

 

176,875

247,665

Provisions for liabilities

7

(1,130)

Net assets

 

176,882

246,535

Capital and reserves

 

Called up share capital

600

600

Retained earnings

176,282

245,935

Shareholders' funds

 

176,882

246,535

 

Challenge Electronics Limited

(Registration number: 03055556)
Balance Sheet as at 31 May 2024

For the financial year ending 31 May 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime. As permitted by section 444 (5A) of the Companies Act 2006, the directors have not delivered to the registrar a copy of the Profit and Loss Account.

Approved and authorised by the Board on 21 November 2024 and signed on its behalf by:
 

.........................................
Mr Tim Denyer
Company secretary and director

 

Challenge Electronics Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 May 2024

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Unit 9 Bowmans Trading Estate
Bessemer Drive
Stevenage
Hertfordshire
SG1 2DL

These financial statements were authorised for issue by the Board on 21 November 2024.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).

Basis of preparation

These financial statements have been prepared using the historical cost convention.

The financial statements are prepared in sterling, which is the functional currency of the entity.

 

Challenge Electronics Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 May 2024

2

Accounting policies (continued)

Judgements

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

The company receives income in the form of dividends from its subisidiary. Dividends are recorded when voted and agreed by the board.

Management income is received from connected companies in respect of employee services and costs incurred on behalf of the group. The amount is recognised on an accruals basis.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Plant and machinery

25% Reducing balance

Fixture and Fittings

25% Straight line

Office Equipment

25% Reducing balance

Investments

Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment. Investments are wholly comprised of two subsidiary companies.

 

Challenge Electronics Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 May 2024

2

Accounting policies (continued)

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits.

Trade debtors

Trade debtors are amounts due from customers for goods sold in the ordinary course of business.

Trade debtors are recognised at transaction price.

Trade debtors are reviewed annually for bad debts and any adjustment is made accordingly through the profit and loss.

Stocks

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers.

Trade creditors are recognised at transaction price.

 

Challenge Electronics Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 May 2024

2

Accounting policies (continued)

Share capital

Ordinary shares are classified as equity.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

3

Staff numbers

The average number of persons employed by the company (including directors) during the year, was 13 (2023 - 13).

 

Challenge Electronics Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 May 2024

4

Tangible assets

Furniture, fittings and equipment
 £

Plant and machinery
£

Total
£

Cost or valuation

At 1 June 2023

14,901

165,652

180,553

At 31 May 2024

14,901

165,652

180,553

Depreciation

At 1 June 2023

13,494

126,685

140,179

Charge for the year

352

9,742

10,094

At 31 May 2024

13,846

136,427

150,273

Carrying amount

At 31 May 2024

1,055

29,225

30,280

At 31 May 2023

1,407

38,967

40,374

5

Investments

2024
£

2023
£

Investments in subsidiaries

23,678

23,678

Subsidiaries

£

Cost or valuation

At 1 June 2023

23,678

Provision

Carrying amount

At 31 May 2024

23,678

At 31 May 2023

23,678

 

Challenge Electronics Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 May 2024

5

Investments (continued)

Details of undertakings

Details of the investments in which the company holds 20% or more of the nominal value of any class of share capital are as follows:

Undertaking

Holding

Proportion of voting rights and shares held

     

2024

2023

Subsidiary undertakings

Concept Research Limited

Ordinary

100%

100%

 

     

Subsidiary undertakings

Concept Research Limited

The principal activity of Concept Research Limited is sale of pest deterrents and pest control devices.

6

Stocks

2024
£

2023
£

Finished goods and goods for resale

78,525

87,462

7

Debtors

Current

Note

2024
£

2023
£

Trade debtors

 

89,887

49,792

Amounts owed by related parties

11

27,273

22,663

Prepayments

 

33,007

32,950

   

150,167

105,405

 

Challenge Electronics Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 May 2024

8

Creditors

Creditors: amounts falling due within one year

2024
£

2023
£

Due within one year

Trade creditors

52,272

80,119

Taxation and social security

34,608

23,570

Accruals and deferred income

74,110

47,088

Other creditors

43,290

47,381

204,280

198,158

9

Share capital

Allotted, called up and fully paid shares

 

2024

2023

 

No.

£

No.

£

Ordinary A of £1 each

500

500

500

500

Ordinary B of £1 each

100

100

100

100

 

600

600

600

600

Rights, preferences and restrictions

Ordinary A have the following rights, preferences and restrictions:
Carry full voting rights.

Ordinary B have the following rights, preferences and restrictions:
Do not carry any voting rights.

 

Challenge Electronics Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 May 2024

10

Dividends

Interim dividends paid

   

2024
£

 

2023
£

Interim dividend of £72 (2023 - £96.00) per each Ordinary A

 

36,000

 

48,000

Interim dividend of £72 per each Ordinary B

 

-

 

-

   

36,000

 

48,000

11

Related party transactions

Other related party transactions

At the balance sheet date the company owed £32,001 (2023: £36,918) to Mrs J Johnson and Mrs C Denyer, shareholders of the business. These loans are interest free and repayable on demand.
 

Summary of transactions with subsidiaries


At the balance sheet date the company was owed £6,373 by (2023: £22,663) Concept Research Limited. Concept Research Limited is a subsidiary of Challenge Electronics Limited. This loan is repayable on demand and interest free.
 

12

Ultimate controlling party

The ultimate controlling party is Mr T Denyer and Mr D Johnson, directors and majority shareholders.