Caseware UK (AP4) 2023.0.135 2023.0.135 2024-09-302024-09-302024-09-30truefalse2023-10-01falseNo description of principal activity33falsefalse SC059461 2023-10-01 2024-09-30 SC059461 2022-10-01 2023-09-30 SC059461 2024-09-30 SC059461 2023-09-30 SC059461 2022-10-01 SC059461 c:Director1 2023-10-01 2024-09-30 SC059461 c:Director1 2024-09-30 SC059461 c:Director2 2023-10-01 2024-09-30 SC059461 c:Director3 2023-10-01 2024-09-30 SC059461 c:Director4 2023-10-01 2024-09-30 SC059461 c:Director5 2023-10-01 2024-09-30 SC059461 c:RegisteredOffice 2023-10-01 2024-09-30 SC059461 d:Buildings 2023-10-01 2024-09-30 SC059461 d:Buildings 2024-09-30 SC059461 d:Buildings 2023-09-30 SC059461 d:Buildings d:OwnedOrFreeholdAssets 2023-10-01 2024-09-30 SC059461 d:Buildings d:LeasedAssetsHeldAsLessee 2023-10-01 2024-09-30 SC059461 d:Buildings d:ShortLeaseholdAssets 2023-10-01 2024-09-30 SC059461 d:PlantMachinery 2023-10-01 2024-09-30 SC059461 d:PlantMachinery 2024-09-30 SC059461 d:PlantMachinery 2023-09-30 SC059461 d:PlantMachinery d:OwnedOrFreeholdAssets 2023-10-01 2024-09-30 SC059461 d:PlantMachinery d:LeasedAssetsHeldAsLessee 2023-10-01 2024-09-30 SC059461 d:MotorVehicles 2023-10-01 2024-09-30 SC059461 d:MotorVehicles 2024-09-30 SC059461 d:MotorVehicles 2023-09-30 SC059461 d:MotorVehicles d:OwnedOrFreeholdAssets 2023-10-01 2024-09-30 SC059461 d:MotorVehicles d:LeasedAssetsHeldAsLessee 2023-10-01 2024-09-30 SC059461 d:OwnedOrFreeholdAssets 2023-10-01 2024-09-30 SC059461 d:LeasedAssetsHeldAsLessee 2023-10-01 2024-09-30 SC059461 d:CurrentFinancialInstruments 2024-09-30 SC059461 d:CurrentFinancialInstruments 2023-09-30 SC059461 d:Non-currentFinancialInstruments 2024-09-30 SC059461 d:Non-currentFinancialInstruments 2023-09-30 SC059461 d:CurrentFinancialInstruments d:WithinOneYear 2024-09-30 SC059461 d:CurrentFinancialInstruments d:WithinOneYear 2023-09-30 SC059461 d:Non-currentFinancialInstruments d:AfterOneYear 2024-09-30 SC059461 d:Non-currentFinancialInstruments d:AfterOneYear 2023-09-30 SC059461 d:ShareCapital 2024-09-30 SC059461 d:ShareCapital 2023-09-30 SC059461 d:ShareCapital 2022-10-01 SC059461 d:SharePremium 2023-10-01 2024-09-30 SC059461 d:SharePremium 2024-09-30 SC059461 d:SharePremium 2022-10-01 2023-09-30 SC059461 d:SharePremium 2023-09-30 SC059461 d:SharePremium 2022-10-01 SC059461 d:CapitalRedemptionReserve 2023-10-01 2024-09-30 SC059461 d:CapitalRedemptionReserve 2024-09-30 SC059461 d:CapitalRedemptionReserve 2022-10-01 2023-09-30 SC059461 d:CapitalRedemptionReserve 2023-09-30 SC059461 d:CapitalRedemptionReserve 2022-10-01 SC059461 d:OtherMiscellaneousReserve 2023-10-01 2024-09-30 SC059461 d:OtherMiscellaneousReserve 2024-09-30 SC059461 d:OtherMiscellaneousReserve 2022-10-01 2023-09-30 SC059461 d:OtherMiscellaneousReserve 2023-09-30 SC059461 d:OtherMiscellaneousReserve 2022-10-01 SC059461 d:RetainedEarningsAccumulatedLosses 2023-10-01 2024-09-30 SC059461 d:RetainedEarningsAccumulatedLosses 2024-09-30 SC059461 d:RetainedEarningsAccumulatedLosses 2022-10-01 2023-09-30 SC059461 d:RetainedEarningsAccumulatedLosses 2023-09-30 SC059461 d:RetainedEarningsAccumulatedLosses 2022-10-01 SC059461 c:OrdinaryShareClass1 2023-10-01 2024-09-30 SC059461 c:OrdinaryShareClass1 2024-09-30 SC059461 c:OrdinaryShareClass1 2023-09-30 SC059461 c:FRS102 2023-10-01 2024-09-30 SC059461 c:Audited 2023-10-01 2024-09-30 SC059461 c:FullAccounts 2023-10-01 2024-09-30 SC059461 c:PrivateLimitedCompanyLtd 2023-10-01 2024-09-30 SC059461 d:Subsidiary1 2023-10-01 2024-09-30 SC059461 d:Subsidiary1 1 2023-10-01 2024-09-30 SC059461 d:Subsidiary2 2023-10-01 2024-09-30 SC059461 d:Subsidiary2 1 2023-10-01 2024-09-30 SC059461 d:Subsidiary3 2023-10-01 2024-09-30 SC059461 d:Subsidiary3 1 2023-10-01 2024-09-30 SC059461 d:Subsidiary4 2023-10-01 2024-09-30 SC059461 d:Subsidiary4 1 2023-10-01 2024-09-30 SC059461 d:WithinOneYear 2024-09-30 SC059461 d:WithinOneYear 2023-09-30 SC059461 d:BetweenOneFiveYears 2024-09-30 SC059461 d:BetweenOneFiveYears 2023-09-30 SC059461 d:HirePurchaseContracts d:WithinOneYear 2024-09-30 SC059461 d:HirePurchaseContracts d:WithinOneYear 2023-09-30 SC059461 d:HirePurchaseContracts d:BetweenOneFiveYears 2024-09-30 SC059461 d:HirePurchaseContracts d:BetweenOneFiveYears 2023-09-30 SC059461 c:Consolidated 2024-09-30 SC059461 c:ConsolidatedGroupCompanyAccounts 2023-10-01 2024-09-30 SC059461 d:RetirementBenefitObligationsDeferredTax 2024-09-30 SC059461 d:RetirementBenefitObligationsDeferredTax 2023-09-30 SC059461 2 2023-10-01 2024-09-30 SC059461 4 2023-10-01 2024-09-30 SC059461 6 2023-10-01 2024-09-30 SC059461 e:PoundSterling 2023-10-01 2024-09-30 xbrli:shares iso4217:GBP xbrli:pure
Registered number: SC059461














CHAP (HOLDINGS) LIMITED





ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

 
CHAP (HOLDINGS) LIMITED
 

COMPANY INFORMATION


Directors
A S Craigie (resigned 15 January 2025)
H Craigie 
S L Gee 
J A Clark 
D W Shewan 




Registered number
SC059461



Registered office
Enterprise Drive
Westhill

Aberdeenshire

AB32 6TQ




Independent auditor
Anderson Anderson & Brown Audit LLP

Kingshill View

Prime Four Business Parl

Kingswells

Aberdeenshire

AB15 8PU





 
CHAP (HOLDINGS) LIMITED
 

CONTENTS



Page
Group strategic report
1 - 2
Directors' report
3 - 4
Directors' responsibilities statement
5
Independent auditor's report
6 - 9
Consolidated profit and loss account
10
Consolidated statement of comprehensive income
11
Consolidated balance sheet
12 - 13
Company balance sheet
14 - 15
Consolidated statement of changes in equity
16
Company statement of changes in equity
17
Consolidated statement of cash flows
18 - 19
Consolidated analysis of net debt
20
Notes to the financial statements
21 - 45

 
CHAP (HOLDINGS) LIMITED
 

GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024

Principal activities
 
The principal activities of the parent company and group are that of construction, civil engineering contracting and property development. There have not been any significant changes in the parent company or group's principal activities during the year under review. The directors are not aware, at the date of this report, of any likely major changes on the parent company or group's activities in the next year.

Business review
 
The group has had a successful year, showing solid growth and good progress in trading. The group is well-positioned for further growth, and will continue focusing on its people, operational efficiencies, and market opportunities to overcome challenges and sustain its positive momentum.
The future outlook remains positive, with expectations of continued success in the Civils and Construction divisions, ongoing geographical expansion, and strong financial performance.
Financial performance
Turnover: The group reported turnover of £57.7m, up £4.5m from the previous year. This reflects a combination of factors, including the robust performance of the Civils division, which saw a marked increase in activity. Additionally, the opening of the regional office in Dundee expanded the company’s geographical reach, contributing to this growth.
Gross profit: The comparable gross profit increased significantly to £7.4m (excluding exceptional costs), compared to £4.9m in the previous year. The gross margin percentage increased from 9.2% to 12.9%, a positive indicator of improved operational efficiency and profitability.
Exceptional cost of sales/ fair value movement: The group reported an exceptional cost of sale of £881k, primarily attributed to the write-down of land, which impacted the operating profit. A positive fair value adjustment of £315k was made following a review of the current valuation of investment properties, providing an accurate representation of their current value. The company still achieved a positive operating profit of £654k, demonstrating resilience in its performance.  
Profit before tax (Excluding exceptional costs): The group reported a profit before tax, excluding exceptional items, of £1.4m, up from £0.2m in the prior year, showing a significant improvement in underlying profitability.
Strategic developments
Expansion of geographic coverage: One of the key strategic initiatives this year was the opening of a regional office in Dundee. This move was part of the group's broader strategy to expand its geographic footprint and reach new markets, contributing to the increase in turnover. The regional office will also serve to strengthen relationships with local clients and improve operational efficiency in the region.
Recruitment of senior personnel: The group continued its recruitment drive for senior management and key operational staff. The recruitment of skilled personnel is crucial to supporting the group’s growth strategy, particularly as it continues to expand and diversify. The group has focused on attracting individuals with experience and expertise to strengthen its leadership team and ensure the continued success of operations.
Operational excellence and focus on health, safety and wellbeing
Health, safety, and wellbeing: The group continues to prioritise the health, safety, and wellbeing of its employees, clients, and the supply chain. This focus ensures that the group maintains a positive reputation in the industry, promotes a safe working environment, and minimises risks. These efforts are integral to maintaining long-term sustainability and operational excellence.
Employee relations: CHAP Group has developed strong relationships with its workforce, a crucial element for the ongoing success of the group. The group values its people and has built a positive organisational culture, which is reflected in the loyalty of its staff and their commitment to delivering quality results.

Page 1

 
CHAP (HOLDINGS) LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024

Principal risks and uncertainties
 
Reliance on key personnel: The group continues to be reliant on a core group of key management and operational staff for its ongoing success and expansion. The group’s ability to continue its growth trajectory is closely tied to the retention and development of these individuals, and it must remain vigilant in supporting and incentivising its talent pool.
Market conditions and competition: The construction industry, particularly in the Civils division, remains competitive. The group must continuously adapt to changing market conditions, including fluctuations in demand, pricing pressures, and the availability of resources. Effective cost control, operational efficiency, and maintaining high levels of customer satisfaction will be critical for maintaining profitability.

Financial key performance indicators
 
The Board reviews in detail the performance of each of the businesses through their monthly management accounts and contract costing reports. The Board reviews enquiry levels, order book, contract performance, turnover, manpower levels, gross margins achieved and overheads.
Directors' statement of compliance with duty to promote the success of the group
 
The group directors consider, both individually and collectively, that they have acted in the way they consider, in good faith, would be most likely to promote the success of the group for the benefit of its members as a whole in the decisions taken during the current year.  

When making these decisions the directors have given regard to:

The likely consequences of any decision on the long-term;
The interests of the group's employees;
The need to foster the group's business relationships with suppliers, customers and others;
The impact of the group's operations on the community and environment;
The desirability of the group maintaining a reputation for high standards of business conduct; and
The need to act fairly between shareholders of the group.

The vast majority of stakeholder engagement is carried out by the Board.

The Board considers and discusses information from across the organisation to help it understand the impact of the company's operations, and the interests and views of our key stakeholders. It also reviews strategy, financial and operational performance as well as information covering areas such as key risks, legal and regulatory compliance.

As a result of these activities, the Board has an overview of engagement with stakeholders, and other relevant factors, which enables the directors to comply with their legal duty under section 172 of the Companies Act 2006.



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





H Craigie
Director

Date: 14 March 2025
Page 2

 
CHAP (HOLDINGS) LIMITED
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024

The directors present their report and the financial statements for the year ended 30 September 2024.

Results and dividends

The profit for the year, after taxation, amounted to £584k (2023 - £206k).

During the year dividends of £142k were declared (2023 - £nil).

Directors

The directors who served during the year were:

A S Craigie (resigned 15 January 2025)
H Craigie 
S L Gee 
J A Clark 
D W Shewan 

Engagement with suppliers, customers and others

The group's supply chain has been audited and verified against important criteria such as financial stability, anti-bribery, modern slavery and exploitation, safety, fair employment practices and environmental compliance.  In addition, we are constantly reviewing our supply chain for compliance and will continue to support local businesses that encourage the fair employment of the disadvantaged and those that adopt fair ethical trading initiatives within the goods and services they supply the group.  We pay our suppliers on time, and maintain close relationships with them, providing support where it may be required.

Environment and SECR compliance

We fully recognise our responsibility to protect the environment and we have strong environmental policy objectives and guidelines in place which we review and update regularly. 

The following disclosures cover the financial year from 1 October 2023 to 30 September 2024 and is inclusive of the results for CHAP Group (Aberdeen) Limited. All of the Group’s operating activities are included. During this period the Group’s energy usage and emissions were as follows:


Sept 24
Sept 23
UK Energy usage 
(kWh)
 
204,778
192,564
Associated Greenhouse gas emissions
(CO2 equivalent tonnes)
 
296,592
341,208
Fuel used
(Litres)
 
361,933
293,001
Intensity ratio
(Emissions per £'000 revenue)
6.632
6,412


Energy efficiency action

We are committed to energy efficiency and have a number of policies and programs to decrease energy usage where possible.

Page 3

 
CHAP (HOLDINGS) LIMITED
 

DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024

Intensity ratio and methodologies

Greenhouse gas emissions are reported in tonnes carbon dioxide equivalents CO2e. Calculations are performed using the emission factors which are in accordance with the current guidelines from the UK Government GHG Conversion Factors for Company Reporting 2020.

Definitions

Electricity: Electricity is the amount consumed in the UK resulting from the purchase of electricity for our own use, including for transport purposes.

Gas combustion: is the amount consumed in the UK resulting from stationary or mobile activities for which the business is responsible. Gas is defined in the guidance but covers methane, ethane, propane, butane, hydrogen & carbon monoxide.

Transport: is the amount of energy consumed from activities which the business is responsible and covers all energy used by site based vehicles, used to support the logistical operations as well as offsite spend through reimbursed employee travel.

Ratios

We believe the best method of assessment is total revenues for the group based on the value used for group Consolidation purposes. Based on this value reported our key ratio is 6.632 tCO2e per £1,000 of revenues.

Disclosure of information to auditor

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 auditor is 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 auditor is aware of that information.

Auditor

The auditor, Anderson Anderson & Brown Audit LLPwill 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.
 





H Craigie
Director

Date: 14 March 2025
Page 4

 
CHAP (HOLDINGS) LIMITED
 

DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 SEPTEMBER 2024

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 judgements and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

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 parent 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 parent company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Page 5

 
CHAP (HOLDINGS) LIMITED
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CHAP (HOLDINGS) LIMITED
 

Opinion


We have audited the financial statements of CHAP (Holdings) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 September 2024, which comprise the Consolidated profit and loss account, 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 30 September 2024 and of the group's 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 Auditor's 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 6

 
CHAP (HOLDINGS) LIMITED
 

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CHAP (HOLDINGS) LIMITED (CONTINUED)

Other information


The other information comprises the information included in the annual report other than the financial statements and our Auditor's 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.


Responsibilities of directors
 

As explained more fully in the Directors' responsibilities statement set out on page 5, 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.


Page 7

 
CHAP (HOLDINGS) LIMITED
 

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CHAP (HOLDINGS) LIMITED (CONTINUED)

Auditor's 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 Auditor's 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:

We obtained an understanding of the legal and regulatory frameworks within which the group operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were Construction, Employment, Health & Safety and Taxation legislation plus the Companies Act 2006.

We identified the greatest risk of material impact on the financial statements from irregularities including fraud to be:

Management override of controls to manipulate the company's key performance indicators to meet targets;
Timing and completeness of revenue recognition, specifically including managements estimate of amount recoverable on long term contracts;
Management judgement applied in calculating provisions; and
Compliance with relevant laws and regulations which directly impact the financial statements and those that the company needs to comply with for the purpose of trading.

Our audit procedures to respond to these risks included:

Testing of journal entries and other adjustments for appropriateness;
Evaluating the business rationale of significant transactions outside the normal course of business;
Reviewing judgements made by management in their calculation of accounting estimates, including amounts recoverable on long term contracts, for potential management bias;
Enquiries of management about litigation and claims and inspection of relevant correspondence;
Reviewing legal and professional fees to identify indications of actual or potential litigation, claims and any non-compliance with laws and regulations; and
Performing a disclosure checklist on the financial statements to ensure Companies Act 2006 requirements are satisfied.

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 Auditor's report.


Page 8

 
CHAP (HOLDINGS) LIMITED
 

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CHAP (HOLDINGS) LIMITED (CONTINUED)

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 2006Our 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 an Auditor's 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 members, as a body, for our audit work, for this report, or for the opinions we have formed.





Derek Mair (Senior statutory auditor)
  
for and on behalf of
Anderson Anderson & Brown Audit LLP
 
Statutory Auditor
  
Kingshill View
Prime Four Business Park
Kingswells
Aberdeenshire
AB15 8PU

17 March 2025
Page 9

 
CHAP (HOLDINGS) LIMITED
 

CONSOLIDATED PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 SEPTEMBER 2024

2024
2023
Note
£000
£000

  

Turnover
 4 
57,665
53,213

Cost of sales
  
(50,223)
(48,311)

Exceptional cost of sales
 5 
(881)
-

Gross profit
  
6,561
4,902

Administrative expenses
  
(6,222)
(4,396)

Fair value movements
 17 
315
-

Operating profit
 6 
654
506

Interest receivable and similar income
 9 
78
45

Interest payable and similar expenses
 10 
(107)
(240)

Other finance cost
 11 
(73)
(105)

Profit before tax
  
552
206

Tax on profit
 12 
32
-

Profit for the financial year
  
584
206

The notes on pages 21 to 45 form part of these financial statements.
Page 10

 
CHAP (HOLDINGS) LIMITED
 

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 SEPTEMBER 2024

2024
2023
Note
£000
£000


Profit for the financial year

  

584
206

Other comprehensive income
  


Actuarial gain on defined benefit schemes
 29 
128
380

Movement on deferred tax relating to pension gains / (losses)
 26 
(95)
(138)

Purchase of treasury shares
 28 
64
(60)

Other comprehensive income for the year
  
97
182

Total comprehensive income for the year
  
681
388

Profit for the year attributable to:
  


Owners of the parent company
  
584
206

  
584
206

The notes on pages 21 to 45 form part of these financial statements.
Page 11

 
CHAP (HOLDINGS) LIMITED
REGISTERED NUMBER:SC059461

CONSOLIDATED BALANCE SHEET
AS AT 30 SEPTEMBER 2024

2024
2023
Note
£000
£000

Fixed assets
  

Intangible assets
 14 
7
15

Tangible assets
 15 
3,012
2,680

Investment property
 17 
6,218
5,402

  
9,237
8,097

Current assets
  

Stocks
 18 
6,025
7,674

Debtors
 19 
12,433
12,776

Cash at bank and in hand
 20 
2,569
984

  
21,027
21,434

Creditors: amounts falling due within one year
 21 
(16,991)
(16,980)

Net current assets
  
 
 
4,036
 
 
4,454

Total assets less current liabilities
  
13,273
12,551

Creditors: amounts falling due after more than one year
 22 
(669)
(167)

Provisions for liabilities
  

Net assets excluding pension liability
  
12,604
12,384

Pension liability
 29 
(1,112)
(1,492)

Net assets
  
11,492
10,892


Capital and reserves
  

Called up share capital 
 27 
969
969

Share premium account
 28 
52
52

Capital redemption reserve
 28 
100
100

Treasury shares
 28 
(21)
(82)

Profit and loss account
 28 
10,392
9,853

  
11,492
10,892

Page 12

 
CHAP (HOLDINGS) LIMITED
REGISTERED NUMBER:SC059461

CONSOLIDATED BALANCE SHEET (CONTINUED)
AS AT 30 SEPTEMBER 2024

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




H Craigie
Director

Date: 14 March 2025

The notes on pages 21 to 45 form part of these financial statements.
Page 13

 
CHAP (HOLDINGS) LIMITED
REGISTERED NUMBER:SC059461

COMPANY BALANCE SHEET
AS AT 30 SEPTEMBER 2024

2024
2023
Note
£000
£000

Fixed assets
  

Intangible assets
 14 
7
15

Tangible assets
 15 
1,797
2,349

Investments
 16 
317
317

Investment Property
 17 
6,218
5,402

  
8,339
8,083

Current assets
  

Debtors
 19 
493
2,257

Cash at bank and in hand
 20 
1,599
89

  
2,092
2,346

Creditors: amounts falling due within one year
 21 
(589)
(461)

Net current assets
  
 
 
1,503
 
 
1,885

Total assets less current liabilities
  
9,842
9,968

  

Creditors: amounts falling due after more than one year
 22 
(26)
(41)

  

Net assets excluding pension liability
  
9,816
9,927

Pension liability
 29 
(1,112)
(1,492)

Net assets
  
8,704
8,435


Capital and reserves
  

Called up share capital 
 27 
969
969

Share premium account
 28 
52
52

Capital redemption reserve
 28 
100
100

Other reserves
 28 
(21)
(82)

Profit and loss account brought forward
  
7,396
7,245

Profit/(loss) for the year
  
254
(31)

Other changes in the profit and loss account

  

(45)
182

Profit and loss account carried forward
  
7,604
7,396

  
8,704
8,435

Page 14

 
CHAP (HOLDINGS) LIMITED
REGISTERED NUMBER:SC059461

COMPANY BALANCE SHEET (CONTINUED)
AS AT 30 SEPTEMBER 2024

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




H Craigie
Director

Date: 14 March 2025

The notes on pages 21 to 45 form part of these financial statements.
Page 15

 
CHAP (HOLDINGS) LIMITED
 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2024


Called up share capital
Share premium account
Capital redemption reserve
Treasury shares
Profit and loss account
Total equity

£000
£000
£000
£000
£000
£000


At 1 October 2022
969
52
100
(16)
9,465
10,570



Profit for the year
-
-
-
-
206
206

Actuarial gains on pension scheme
-
-
-
-
242
242

Net transfer of Treasury shares
-
-
-
(66)
(60)
(126)



At 1 October 2023
969
52
100
(82)
9,853
10,892



Profit for the year
-
-
-
-
584
584

Actuarial gains on pension scheme
-
-
-
-
33
33

Dividends: Equity capital
-
-
-
-
(142)
(142)

Net transfer of Treasury shares
-
-
-
61
64
125


At 30 September 2024
969
52
100
(21)
10,392
11,492


The notes on pages 21 to 45 form part of these financial statements.
Page 16

 
CHAP (HOLDINGS) LIMITED
 

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2024


Called up share capital
Share premium account
Capital redemption reserve
Treasury shares
Profit and loss account
Total equity

£000
£000
£000
£000
£000
£000


At 1 October 2022
969
52
100
(16)
7,245
8,350



Loss for the year
-
-
-
-
(31)
(31)

Actuarial gains on pension scheme
-
-
-
-
242
242

Net transfer of Treasury shares
-
-
-
(66)
(60)
(126)



At 1 October 2023
969
52
100
(82)
7,396
8,435



Profit for the year
-
-
-
-
254
254

Actuarial gains on pension scheme
-
-
-
-
33
33

Dividends: Equity capital
-
-
-
-
(142)
(142)

Net transfer of Treasury shares
-
-
-
61
64
125


At 30 September 2024
969
52
100
(21)
7,605
8,705


The notes on pages 21 to 45 form part of these financial statements.
Page 17

 
CHAP (HOLDINGS) LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

2024
2023
£000
£000

Cash flows from operating activities

Profit for the financial year
584
206

Adjustments for:

Amortisation of intangible assets
7
7

Depreciation of tangible assets
292
179

Loss on disposal of tangible assets
(36)
(16)

Interest payable and similar charges
107
240

Interest receivable and similar charges
(78)
(45)

Taxation charge
(32)
-

Decrease in stocks
1,650
666

Decrease/(increase) in debtors
273
(3,164)

Increase in creditors
786
3,074

Increase/(decrease) in provisions
-
(348)

(Decrease) in net pension assets/liabs
(252)
(170)

Fair value gains recognised in P&L
(315)
-

Net cash generated from operating activities

2,986
629


Cash flows from investing activities

Purchase of tangible fixed assets
(289)
(133)

Sale of tangible fixed assets
36
16

Interest received
78
45

Net cash from investing activities

(175)
(72)
Page 18

 
CHAP (HOLDINGS) LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024


2024
2023

£000
£000



Cash flows from financing activities

Repayment of loans
(963)
(1,988)

Repayment of finance leases
(139)
(71)

Dividends paid
(142)
-

Interest paid
(89)
(235)

Net funds utilised on the transfer of Treasury shares
125
(126)

HP interest paid
(18)
(5)

Net cash used in financing activities
(1,226)
(2,425)

Net increase/(decrease) in cash and cash equivalents
1,585
(1,868)

Cash and cash equivalents at beginning of year
984
2,852

Cash and cash equivalents at the end of year
2,569
984


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
2,569
984

2,569
984


The notes on pages 21 to 45 form part of these financial statements.

Page 19

 
CHAP (HOLDINGS) LIMITED
 

CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 30 SEPTEMBER 2024





At 1 October 2023
Cash flows
New finance leases
At 30 September 2024
£000

£000

£000

£000

Cash at bank and in hand

984

1,585

-

2,569

Debt due within 1 year

(1,823)

963

-

(860)

Finance leases

(234)

138

(845)

(941)


(1,073)
2,686
(845)
768

The notes on pages 21 to 45 form part of these financial statements.
Page 20

 
CHAP (HOLDINGS) LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

1.


General information

CHAP (Holdings) Limited (the 'group' and the 'parent company') is a limited liability company incorporated in Scotland. The registered office is Enterprise Drive, Westhill Industrial Estate, Westhill, Aberdeenshire, AB32 6TQ.

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 judgement 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 Profit and loss account in these financial statements.

  
2.2

Basis of consolidation

The consolidated financial statements present the results of the parent 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.

 
2.3

Going concern

The directors, having made due and careful enquiry, are of the opinion that the group has adequate working capital to continue in operation for a period of at least 12 months following the approval of these financial statements. The director’s assessment includes a detailed consideration of the group’s order book and forecast cashflows to determine the group’s financial headroom.  
The directors remain pleased with the ongoing commitment of the group to its debt reduction plans as well as its current strong performance across committed and proposed projects. The group has currently zero net debt and noted the good relationship the group has with its bankers.
The directors, therefore, have made an informed judgement at the time of approving the financial statements, that there is a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future.  As a result, the directors have continued to adopt the going concern basis of accounting in preparing the annual financial statements.

Page 21

 
CHAP (HOLDINGS) LIMITED
 

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

2.Accounting policies (continued)

 
2.4

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:

The amount of profit attributable to the stage of completion of a long term contract is recognised when the outcome of the contract can be foreseen with reasonable certainty, Turnover for such contracts is stated at the cost appropriate to their stage of completion plus attributable profits, less amounts recognised in previous years. Provision is made for losses as soon as they are foreseen.
Contract work in progress in stated at costs incurred, less those transferred to the profit and loss account, after deducting foreseeable losses and payments on account not matched with turnover.
Amounts recoverable on contracts are included in debtors and represent turnover recognised in excess of payments on account.
Other house sales turnover is recognised on legal completion and when construction is complete.

 
2.5

Operating leases: the group as lessee

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

 
2.6

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.7

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.

 
2.8

Borrowing costs

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

Page 22

 
CHAP (HOLDINGS) LIMITED
 

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

2.Accounting policies (continued)

 
2.9

Pensions

Defined contribution pension plan
The group contributes to 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.
Defined benefit pension plan
The group operates a defined benefit plan for certain employees. A defined benefit plan defines the pension benefit that the employee will receive on retirement, usually dependent upon several factors including but not limited to age, length of service and remuneration. A defined benefit plan is a pension plan that is not a defined contribution plan.
The liability recognised in the Balance sheet in respect of the defined benefit plan is the present value of the defined benefit obligation at the end of the balance sheet date less the fair value of plan assets at the balance sheet date (if any) out of which the obligations are to be settled.
The defined benefit obligation is calculated using the projected unit credit method. Annually the company engages independent actuaries to calculate the obligation. The present value is determined by discounting the estimated future payments using market yields on high quality corporate bonds that are denominated in sterling and that have terms approximating to the estimated period of the future payments ('discount rate').
The fair value of plan assets is measured in accordance with the FRS 102 fair value hierarchy and in accordance with the group's policy for similarly held assets. This includes the use of appropriate valuation techniques.
Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are charged or credited to other comprehensive income. These amounts together with the return on plan assets, less amounts included in net interest, are disclosed as 'Remeasurement of net defined benefit liability'.
The cost of the defined benefit plan, recognised in profit or loss as employee costs, except where included in the cost of an asset, comprises:
a) the increase in net pension benefit liability arising from employee service during the period; and
b) the cost of plan introductions, benefit changes, curtailments and settlements.
The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. This cost is recognised in profit or loss as a 'finance expense'.

Page 23

 
CHAP (HOLDINGS) LIMITED
 

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

2.Accounting policies (continued)

 
2.10

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; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

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.


 
2.11

Exceptional items

Exceptional items are transactions that fall within the ordinary activities of the group but are presented separately due to their size or incidence.

 
2.12

Intangible assets

Goodwill
Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight line basis to the Statement of comprehensive income over its useful economic life. Goodwill has no residual value. The finite useful life of goodwill is estimated to be 4 years.

 
2.13

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.

Page 24

 
CHAP (HOLDINGS) LIMITED
 

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

2.Accounting policies (continued)


2.13
Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Buildings
-
25 years
Plant and machinery
-
2 to 10 years
Motor vehicles
-
3 to 10 years

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.

No depreciation is provided on freehold land.

 
2.14

Investment property

Investment property is carried at fair value determined by external valuers and derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset. No depreciation is provided. Changes in fair value are recognised in profit or loss.

 
2.15

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

Investments in unlisted group shares, whose market value can be reliably determined, are remeasured to market value at each balance sheet date. Gains and losses on remeasurement are recognised in the Consolidated profit and loss account for the period. Where market value cannot be reliably determined, such investments are stated at historic cost less impairment.

 
2.16

Stocks and Work in progress

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 first in, first out 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.

 
2.17

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 25

 
CHAP (HOLDINGS) LIMITED
 

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

2.Accounting policies (continued)

 
2.18

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.

 
2.19

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.

 
2.20

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.

 
2.21

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.

Basic financial assets

Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) 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 debtors due with the operating cycle fall into this category of financial instruments.

Impairment of financial assets

At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss. 

Page 26

 
CHAP (HOLDINGS) LIMITED
 

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

2.Accounting policies (continued)


2.21
Financial instruments (continued)

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 instrument is 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 creditors, bank loans, other loans and loans due to fellow group companies are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments 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.

Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors 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.

Derecognition of financial instruments

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the group transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the group will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Consolidated profit and loss account.
 
Page 27

 
CHAP (HOLDINGS) LIMITED
 

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

2.Accounting policies (continued)


2.21
Financial instruments (continued)

For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

 
2.22

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.


Judgements in applying accounting policies and key sources of estimation uncertainty

Judgements made by the directors, in the application of these accounting policies that have significant effect on the financial statements and estimates with a significant risk of material adjustment in the next year are discussed below:
Long term contracts
Management review construction contracts on a regular basis to assess how each contract is progressing. There are key judgements made regarding the profit to be recognised and also in identifying any loss making contracts such that losses can be recognised immediately in the financial statements. In addition management are also required to assess the potential risks attributable to a specific ongoing contract such that adequate provisions are in place to address these risks. Regular meetings are held and jobs are reviewed by key management personnel, including directors, to ensure that the accounting for such contracts is reflective of commercial reality at any given point in time.
Work in progress
In respect of Homes division, site development costs are allocated on a unit by unit basis across specific sites based on overall projected margins. Given the nature of such assessments, there is an inherent degree of uncertainty when estimating the profitability of a site. A regular review of all sites takes place and the margins are amended where necessary. The group conducted reviews of the carrying value of its work in progress as part of the year-end process and no issues were identified. 

Page 28

 
CHAP (HOLDINGS) LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

4.


Turnover

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


2024
2023
£000
£000

Sale of goods
1,180
2,700

Rendering of services
11,558
6,133

Construction contract revenue
44,517
43,910

Investment property
410
470

57,665
53,213


All turnover arose within the United Kingdom during the current and prior year.


5.


Exceptional items

2024
2023
£000
£000


Impairment of work in progress
(881)
-

(881)
-


6.


Operating profit

The operating profit is stated after charging:

2024
2023
£000
£000

Depreciation of tangible fixed assets
292
179

Amortisation of intangible fixed assets
7
7

Auditor's remuneration
42
40

Other operating lease rentals
25
11

Profit on sale of assets
(36)
(16)

Page 29

 
CHAP (HOLDINGS) LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

7.


Employees

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


Group
Group
2024
2023
£000
£000


Wages and salaries
8,369
6,690

Social security costs
798
677

Cost of defined contribution scheme
491
374

9,658
7,741


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



Group
Group
Company
Company
        2024
        2023
        2024
        2023
            No.
            No.
            No.
            No.









Management
8
7
3
3



Administration, selling and distribution
21
30
-
-



Production
133
109
-
-

162
146
3
3


8.


Directors' remuneration

2024
2023
£000
£000

Directors' emoluments
520
498

Group contributions to defined contribution pension schemes
56
34

576
532


During the year retirement benefits were accruing to 2 directors (2023 - 2) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £258k (2023 - £248k).

The value of the group's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £24k (2023 - £22k).

Page 30

 
CHAP (HOLDINGS) LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

9.


Interest receivable

2024
2023
£000
£000


Other interest receivable
78
45

78
45


10.


Interest payable and similar expenses

2024
2023
£000
£000


Bank interest payable
29
175

Finance leases and hire purchase contracts
18
5

Other interest payable
60
60

107
240


11.


Other finance costs

2024
2023
£000
£000

Net interest on defined benefit pension scheme liability
(73)
(105)

(73)
(105)

Page 31

 
CHAP (HOLDINGS) LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

12.


Taxation


2024
2023
£000
£000

Corporation tax


Adjustments in respect of previous periods
(32)
-


Total current tax

(32)
-


Taxation on (loss)/profit on ordinary activities
(32)
-

Factors affecting tax charge for the year

The tax assessed for the year is lower than (2023 - lower than) the standard rate of corporation tax in the UK of 25% (2023 - 19%). The differences are explained below:

2024
2023
£000
£000


Profit on ordinary activities before tax
551
206


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 19%)
138
39

Effects of:


Expenses not deductible for tax purposes
14
-

Fixed asset differences
1
29

Movement in deferred tax not recognised
(185)
(68)

Total tax charge for the year
(32)
-


13.


Dividends

2024
2023
£000
£000


Dividends
142
-

142
-

Page 32

 
CHAP (HOLDINGS) LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

14.


Intangible assets

Group





Software
 Goodwill
Total

£000
£000
£000



Cost


At 1 October 2023
37
653
690



At 30 September 2024

37
653
690



Amortisation


At 1 October 2023
23
653
676


Charge for the year on owned assets
7
-
7



At 30 September 2024

30
653
683



Net book value



At 30 September 2024
7
-
7



At 30 September 2023
14
-
14



Page 33

 
CHAP (HOLDINGS) LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

15.


Tangible fixed assets

Group






Freehold property
Plant and machinery
Motor vehicles
Total

£000
£000
£000
£000



Cost or valuation


At 1 October 2023
3,856
627
698
5,181


Additions
97
548
489
1,134


Disposals
-
(2)
(240)
(242)


Transfer to investment properties
(501)
-
-
(501)



At 30 September 2024

3,452
1,173
947
5,572



Depreciation


At 1 October 2023
1,566
359
576
2,501


Charge for the year on owned assets
132
26
9
167


Charge for the year on financed assets
-
62
72
134


Disposals
-
(2)
(240)
(242)



At 30 September 2024

1,698
445
417
2,560



Net book value



At 30 September 2024
1,754
728
530
3,012



At 30 September 2023
2,290
268
122
2,680

The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:


2024
2023
£000
£000



Plant and machinery
672
196

Motor vehicles
381
58

1,053
254

Page 34

 
CHAP (HOLDINGS) LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

           15.Tangible fixed assets (continued)


Company






Freehold property
Plant and machinery
Motor vehicles
Total

£000
£000
£000
£000

Cost or valuation


At 1 October 2023
3,856
216
78
4,150


Additions
97
-
-
97


Transfer to investment properties
(501)
-
-
(501)



At 30 September 2024

3,452
216
78
3,746



Depreciation


At 1 October 2023
1,566
214
21
1,801


Charge for the year on owned assets
132
2
-
134


Charge for the year on financed assets
-
-
14
14



At 30 September 2024

1,698
216
35
1,949



Net book value



At 30 September 2024
1,754
-
43
1,797



At 30 September 2023
2,290
2
57
2,349






The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:


2024
2023
£000
£000



Motor vehicles
42
58

42
58

Page 35

 
CHAP (HOLDINGS) LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

16.


Fixed asset investments

Company





Investments in subsidiary companies

£000



Cost or valuation


At 1 October 2023
317



At 30 September 2024
317





Subsidiary undertakings


The following were subsidiary undertakings of the company:

Name

Registered office

Class of shares

Holding

CHAP Group (Aberdeen) Limited
Enterprise Drive, Westhill, AB32 6TQ
Ordinary
100%
CHAP Quarries (Aberdeen) Limited
Enterprise Drive, Westhill, AB32 6TQ
Ordinary
100%
CHAP Homes Limited
Enterprise Drive, Westhill, AB32 6TQ
Ordinary
100%
CHAP Civil Engineering Limited
Enterprise Drive, Westhill, AB32 6TQ
Ordinary
100%

The aggregate of the share capital and reserves as at 30 September 2024 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)
£000
£000

CHAP Group (Aberdeen) Limited
3,104
331

CHAP Quarries (Aberdeen) Limited
-
-

CHAP Homes Limited
-
-

CHAP Civil Engineering Limited
-
-

Page 36

 
CHAP (HOLDINGS) LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

17.


Investment property

Group and Company


Freehold investment property

£000



Valuation


At 1 October 2023
5,402


Surplus on revaluation
315


Transfer from tangible fixed assets
501



At 30 September 2024
6,218

During the year, following an assessment by the directors, land that was classified as tangible fixed assets has been transferred to investment properties. The directors believe this change aligns with the current intention and use of the land.
At the year-end, the directors conducted a review of the investment property portfolio's valuation. After thoroughly considering local market conditions and consulting with property experts, the directors updated the fair values of the investment properties. The directors believe that these valuations are a true and fair reflection of the investment property portfolio at year-end. 





18.


Stocks

Group
Group
2024
2023
£000
£000

Raw materials and consumables
110
78

Work in progress
5,770
7,451

Finished goods and goods for resale
145
145

6,025
7,674


Page 37

 
CHAP (HOLDINGS) LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

19.


Debtors

Group
Group
Company
Company
2024
2023
2024
2023
£000
£000
£000
£000



Trade debtors
5,411
7,094
16
15

Amounts owed by group undertakings
-
-
-
1,700

Other debtors
143
16
18
16

Prepayments and accrued income
631
549
181
153

Amounts recoverable on long term contracts
5,970
4,744
-
-

Deferred taxation
278
373
278
373

12,433
12,776
493
2,257


Included within trade debtors are amounts of £159k (2023 - £171k) relating to loans provided under a shared equity scheme where a percentage of the sales value of the property is offered to the customer as an incentive to assist with the purchase.
Amounts owed by group undertakings are unsecured, interest free and repayable on demand.


20.


Cash and cash equivalents

Group
Group
Company
Company
2024
2023
2024
2023
£000
£000
£000
£000

Cash at bank and in hand
2,569
984
1,599
89

2,569
984
1,599
89



21.


Creditors: Amounts falling due within one year

Group
Group
Company
Company
2024
2023
2024
2023
£000
£000
£000
£000

Bank loans
-
963
-
-

Other loans
860
860
-
-

Trade creditors
4,027
4,267
106
91

Other taxation and social security
251
356
16
15

Obligations under finance lease and hire purchase contracts
272
67
15
15

Other creditors
50
23
24
9

Accruals and deferred income
11,531
10,444
428
331

16,991
16,980
589
461



Page 38

 
CHAP (HOLDINGS) LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

22.


Creditors: Amounts falling due after more than one year

Group
Group
Company
Company
2024
2023
2024
2023
£000
£000
£000
£000

Obligations under finance leases and hire purchase contracts
669
167
26
41

669
167
26
41




23.


Loans


Analysis of the maturity of loans is given below:


Group
Group
2024
2023
£000
£000

Amounts falling due within one year

Bank loans
-
963

Other loans
860
860


860
1,823


The group was part of banking arrangement. Amounts due to the bank were secured by cross guarantees from the parent company and subsidiaries and a floating charge over all the assets of each of these companies. At 30 September 2024, the loan was fully paid.
Other loans are currently repayable on demand and security has been provided for the loan against the development land included within work in progress. 


24.


Hire purchase and finance leases


Minimum lease payments under hire purchase fall due as follows:

Group
Group
Company
Company
2024
2023
2024
2023
£000
£000
£000
£000

Within one year
272
67
15
15

Between 1-5 years
669
167
26
41

941
234
41
56

Obligations under finance lease and hire purchase contracts are secured against the assets to which they relate. 

Page 39

 
CHAP (HOLDINGS) LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

25.


Financial instruments

Group
Group
2024
2023
£000
£000

Financial assets

Financial assets measured at amortised cost
20,967
12,838


Financial liabilities

Financial liabilities measured at amortised cost
(17,408)
(16,896)


Financial assets measured at amortised cost comprise cash, trade debtors, amounts receivable on long-term contracts and other debtors.


Financial liabilities measured at amortised cost comprise bank loans, other loans, trade creditors, other creditors and accruals.
Page 40

 
CHAP (HOLDINGS) LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

26.


Deferred taxation


Group



2024
2023


£000

£000






At beginning of year
373
511


Utilised in year
(95)
(138)



At end of year
278
373

Company


2024
2023


£000

£000






At beginning of year
373
511


Utilised in year
(95)
(138)



At end of year
278
373

The deferred tax balance is made up as follows:

Group
Group
Company
Company
2024
2023
2024
2023
£000
£000
£000
£000

Pension liability
278
373
278
373

278
373
278
373



Page 41

 
CHAP (HOLDINGS) LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

27.


Share capital

2024
2023
£000
£000
Allotted, called up and fully paid



1,938,850 (2023 - 1,938,850) Ordinary shares of £0.50 each
969
969

The holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at meetings of the company.



28.


Reserves

Share premium account

The share premium reserve represent the amounts paid excess of the nominal value for the parent company's share capital.

Capital redemption reserve

The capital redemption reserve represents ordinary shares repurchased by the parent company.

Treasury shares

Treasury shares are those which the parent company has bought back from shareholders and holds in its own treasury. As of 30 September 2024, the parent company holds 41,501 (2023 - 164,302) of its own ordinary shares of £0.50 each as treasury shares shown within reserves.

Profit and loss account

The profit and loss account represents cumulative profits and losses net of dividends and other adjustments. 

Page 42

 
CHAP (HOLDINGS) LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

29.


Pension commitments

The group operates a Defined benefit pension scheme.

CHAP (Holdings) Limited operates a defined benefit pension scheme which was set up on 1 April 1976. The scheme is closed to new entrants and the link to future salary accrual has been broken. The assets of the scheme are totally separate from those of the company and are invested in financial institutions.
The FRS 102 valuation of the parent company Scheme was assessed as at 30 September 2024 by an independent qualified actuary in accordance with FRS 102. As required by FRS 102, the defined benefit liabilities have been measured using the projected unit method.



Reconciliation of present value of plan liabilities:


2024
2023
£000
£000

Reconciliation of present value of plan liabilities


At the beginning of the year
9,238
10,130

Interest cost
487
537

Actuarial gains/(losses)
419
(524)

Benefits paid
(785)
(905)

At the end of the year
9,359
9,238



Reconciliation of present value of plan assets:


2024
2023
£000
£000



At the beginning of the year
7,746
8,088

Interest income
414
432

Actuarial gains/(losses)
547
(144)

Contributions
325
275

Benefits paid
(785)
(905)

At the end of the year
8,247
7,746
Page 43

 
CHAP (HOLDINGS) LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
 
29.Pension commitments (continued)


Composition of plan assets:


2024
2023
£000
£000



Equities
3,723
3,233

Bonds
3,261
2,903

Diversified Growth
629
253

Property
-
759

Insured pensions
425
463

Cash
209
135

Total plan assets
8,247
7,746

2024
2023
£000
£000


Fair value of plan assets
8,247
7,746

Present value of plan liabilities
(9,359)
(9,238)

Net pension scheme liability
(1,112)
(1,492)


The amounts recognised in profit or loss are as follows:

2024
2023
£000
£000



Net interest on defined benefit liability
(73)
(105)

Total
(73)
(105)


2024
2023
£000
£000

Analysis of actuarial loss recognised in Other Comprehensive Income


Actual return less interest income included in net interest income
547
(144)

Experience gains and losses arising on the scheme liabilities
(212)
(137)

Changes in assumptions underlying the present value of the scheme liabilities
(207)
661

128
380
Page 44

 
CHAP (HOLDINGS) LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
 
29.Pension commitments (continued)


Principal actuarial assumptions at the balance sheet date (expressed as weighted averages):

2024
2023
%
%
Discount rate


4.85

3.23
 
Retail price inflation


3.2

3.5
 
Consumer price inflation


2.9

2.7
 
Rate of inflation-linked revaluation of pensions in deferment


2.15

2.25
 
Rate of inflation-linked pensions in payment increases


3.00

3.05
 



 
- for a male aged 65 now


20.4

21.9
 
- at 65 for a male aged 45 now


21.4

23.5
 
- for a female aged 65 now


22.9

24.6
 
- at 65 for a female member aged 45 now


24.0

26.3
 
-

-
 






30.


Commitments under operating leases

At 30 September 2024, the group and the parent company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:


Group
Group
Company
Company
2024
2023
2024
2023
£000
£000
£000
£000

Not later than 1 year
114
12
24
12

Later than 1 year and not later than 5 years
262
18
40
18

376
30
64
30


31.


Related party transactions

During the year the group made purchases from Steph Craigie Kitchens & Bathrooms Limited, totalling £43k (2023 - £119k). The company is owned by the spouse of a member of key management personnel. Amounts were outstanding at the year-end of £nil (2023 - £nil).


32.


Controlling party

The parent company was under the control of the directors during the current and prior periods.

Page 45