Registered number:
For the Period Ended
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Chambertin Capital Limited
Company Information
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Chambertin Capital Limited
Contents
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Chambertin Capital Limited
Group Strategic Report
For the Period Ended 31 December 2023
The directors of Chambertin Capital Limited present their Strategic Report on the affairs of the Company and its subsidiary undertakings (the Group) together with the audited financial statements and independent auditor’s report for the 9 months ended 31 December 2023.
Stellex Capital Management, a middle-market private equity firm with extensive experience in industrial businesses and family successions, acquired a controlling interest in Chambertin Capital Limited on 31 May 2023. The vendor (B J Hall, and close family members) has retained significant control in the new Group, headed by Bamboo Topco Limited (a company registered in Jersey), through shareholdings in and loans to the parent Group headed by Bamboo Topco Limited. The Directors have consequently chosen to change the financial year-end to 31 December 2023 and these financial statements are for a period of nine months. Results
The principal activities of the Group during the period continued to be the design, manufacture and supply of components and assemblies for the Electrical Transmission & Distribution, Power Storage and DC Electro refinery markets. In addition, the group has made significant in-roads in the development of new products and customers in the Energy Transition market i.e. Electric Vehicles, Green Hydrogen and Metals Recycling.
Business performance remained robust, with a pro-rated growth in turnover of 2% as the Group's main operation in India reached full capacity. Given the high demand for its products, the Group embarked on a Capital Investment plan referred to below. MSS Poland Sp.zoo was established in the period to 31 March 2022, with a site in Sosnowiec, Poland. It has since commenced manufacturing and sales activities and is in the course of ramping up its facilities and operations. During this period, the Group incurred a material loss totalling £1.4m on the supply of DCB systems through its G Corner subsidiary, on a contract entered into in a prior period. This resulted from unforeseen UK government regulations. Actual gross margin achieved in the period was 15%; excluding the exceptional loss, margins were consistent at 19%. Administrative expenses increased by 16% (pro-rated). Increased costs were linked to the sale of the business to new owners, a £0.5m impairment accounted for against tangible fixed assets, alongside further investment in the Indian and Polish operations. These were offset by significant reductions in legal and professional fees. Profit before tax totalled £3.2m in the 9 months ended 31 December 2023 (Year ended 31 March 2023: £7.3m) and EBITDAE (Earnings before interest, taxation, depreciation, amortisation and items identified by management as exceptional) totalled £5.7m (Year ended 31 March 2023: £8.85m).
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Chambertin Capital Limited
Group Strategic Report (continued)
For the Period Ended 31 December 2023
Directors' statement of compliance with duty to promote the success of the Group - s172(1)
The Group’s principal objective is to establish and maintain its position as preferred partner to our customers and to increase the value of the Group by generating strong, sustainable and growing cash flows across industry and economic cycles. To achieve these objectives, the Group has the following key strategies: • Consistently meeting and surpassing our customers' expectations in terms of quality and supply reliability. • Offering development opportunities to our employees through skills enhancement and a commitment to learning, fostering an empowered workforce. • Establishing world-class operations with industry-leading process management in all disciplines, regularly practiced. • Contributing as a role model to the global energy transition as well as to a responsible and sustainable environment. • Making a positive contribution to our stakeholders and communities while achieving top-tier financial performance. The directors believe these are critical long-term factors for the success of the Group. The directors’ decision-making has supported the implementation of the strategy which aims to operate and develop the business in a way that supports both the current and future needs. The directors strongly believe that sustainable business management and practices will contribute to the long-term business success and will strengthen the Group’s leading position in the market. The directors ensure that the Group has sufficient resources to support its long-term growth strategy and fund investment. The Group operates in an industry characterised by long-term relationships between stakeholders and therefore engagement with stakeholders and maintaining a reputation for high standards of service and business conduct is vital. Engaging stakeholders and developing meaningful partnerships is essential for business. The Group engages in regular, open and proactive dialogue with all relevant stakeholders as this is needed to understand their perspectives, expectations, concerns and needs. In this way the Group is able to integrate stakeholder’s considerations. Key decisions taken by directors during the period are as follows: • To continue to invest in recruitment and training and to boost capacity to support the Group’s continued growth and expansion. • During the period under review, the Group approved and committed significant amounts on Capital Expenditure to expand its capacity in its two manufacturing bases in India and Poland. Employee engagement The Group places considerable value on the involvement of its employees and has continued to keep them informed on matters affecting them as employees and on the various factors affecting performance of the Group. This is achieved through regular meetings with employees, both formal and informal, giving the opportunity for consultation on a wide range of matters affecting their current and future interests.
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Chambertin Capital Limited
Group Strategic Report (continued)
For the Period Ended 31 December 2023
Customers
The Group's broad customer base spans industries, businesses and end users of our products. We work closely with our customers to understand their evolving needs so we can improve and adapt to meet them. The Group protects the interests of its customers through the careful selection of suppliers and other business partners, and through the standards set for its own actions. Suppliers We depend on the capability and performance of our suppliers to help deliver the products we need for our operations and our customers. The Group only works with suppliers who are prepared to eliminate problems or implement risk reduction measures. Community, environment and members The Group engages with the community and has relationships with local charities. The Group monitors and seeks to reduce its impact on the environment. Key performance indicators
The Group uses a range of financial and non-financial measures to monitor its performance against its strategic plans. The indicators cover Health & Safety, Environment, Customer Satisfaction, Employee Development, Financial Performance, Operational Performance and Fulfilment, Quality and Innovation. These measures provide the Board with leading indicators of future performance.
In addition to the traditional sales, profit and working capital indicators, the Group places significant emphasis on cash generation, ensuring that the choice of customers, suppliers and stock levels always maintains a positive cash position. The Group also constantly monitors copper and currency exposure. The Group's current ratio has increased from 2.11 at 31 March 2023 to 2.33 at 31 December 2023. The manufacturing activities in India are separately measured with regards to direct cost efficiencies and machine utilisation and are closely monitored via various KPI targets.
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Chambertin Capital Limited
Group Strategic Report (continued)
For the Period Ended 31 December 2023
The Group also continues to monitor the global macroeconomic situation and upward inflationary pressures, although its major cost of Raw Materials, notably Copper, is priced in the business in relation to the London Metal Exchange ('LME'). This means the Group prices its contracts tied into the LME price and as such, its absolute margins are not affected by market volatility. In connection with LME and other commodity prices for Copper and other materials, especially in view of recent tariff announcements, the Group does not have any material adverse exposure due to the back-to-back nature of commercial arrangements,
Cash flow and liquidity risk The Group manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring the Group has sufficient liquid resources to meet the operating needs of the business. Exchange rate risk The Group actively manages its currency rate exposures through a centralised treasury division and uses derivative instruments such as forward contracts and currency swaps to mitigate the risks from such exposures. The use of derivative instruments is subject to limits and regular monitoring by appropriate levels of management. The Rupee exchange rate against the Great British Pound remained fairly stable over the period, moving from 101.6 to 106.1, although there were some fluctuations throughout the period, and therefore, the Group continues to review and update its hedging policies to reflect growth and the changing macro-economic environment. The Group's subsidiary undertakings operate primarily in India. Therefore, the consolidated results are dependent on changes in the exchange rate with the Indian Rupee. The exchange rate used at 31 December 2023 for the purpose of this consolidation was 106.0761 Indian Rupees to the British Pound (31 March 2023: 101.5641). Interest risk The Group manages its interest rate exposures through a centralised treasury division and uses derivatives to mitigate the risks from such exposures. The use of derivative instruments is subject to limits and regular monitoring by appropriate levels of management. Credit risk Investments of cash surpluses and borrowings are made through banks which must fulfil credit ratings criteria approved by the directors.
The directors expect both Group revenues and profitability to increase in the forthcoming year as the business continues to invest in its people, systems and infrastructure in order to deliver the best service in the industry to our customers.
Subsequent to the year end, on 3 April 2024, the Company acquired the entire share capital of Elmecon Limited.
This report was approved by the board and signed on its behalf.
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Chambertin Capital Limited
Directors' Report
For the Period Ended 31 December 2023
The directors present their report and the financial statements for the period ended 31 December 2023.
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.
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;
∙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 Company and the Group and to 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 the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The directors are responsible for the maintenance and integrity of the corporate and financial information included on the Group's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements and other information included in Directors' Reports may differ from legislation in other jurisdictions.
The profit for the period, after taxation, amounted to £1,503,447 (2023 - £4,649,201).
The directors do not recommend the payment of a final dividend (Year ended 31 March 2023 - £nil).
The directors who served during the period were:
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Chambertin Capital Limited
Directors' Report (continued)
For the Period Ended 31 December 2023
Details of future developments can be found in the Group Strategic Report.
The Group’s business activities, together with the principal risks and uncertainties likely to affect its future growth and performance, are set out in the Group strategic report. The Group Strategic Report describes the financial performance of the Group, its cashflows, liquidity position and other financial and operational risks.
The Group manages its day-to-day working capital requirements through a combination of current accounts, credit facilities and intercompany loans. The Group proactively manages cashflow to ensure obligations under associated borrowings can be met. The trading and cashflow forecasts are considered to be prudent and have been prepared using the latest information on Group performance, expected future development and trading. The directors have taken into account the Group’s net current asset position, and also the Group’s cashflow and profitable trading companies. Taking all these factors into account, including all reasonable uncertainties, the directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future and in any case, for a period of not less than 12 months from the date of signing these financial statements.
The Group continues to invest in research and development with the purpose of creating innovative, efficient products for the power industry.
Development of new IT and finance systems and the improvement of those currently used by the Group is carried out continuously. The directors have taken all 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 auditors are aware of that information.
Information on employee engagement can be found in the Group Strategic Report.
Information on engagement with suppliers, customers and others can be found in the Group Strategic Report.
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Chambertin Capital Limited
Directors' Report (continued)
For the Period Ended 31 December 2023
The company made charitable donations totalling £nil (Year to 31 March 2023: £24,540) in the period.
Environmental, social and governance matters We are in the process of developing our Group wide Environmental, Social and Governance Strategy. As a Group we have continued in our pursuit of environmental protection and sustainability, this is evident in the continued increase in recycled material produced and used by the group and the setting of ‘green goals’ such as planting over 40,000 trees over previous years and 2,500 trees in the period to December 2024. The group aims to obtain carbon neutrality in its internal operations by 2030. Greenhouse gas emissions, energy consumption and energy efficiency action The Group has not disclosed information in respect of greenhouse gas emissions, energy consumption and energy efficiency action as its energy consumption in the United Kingdom for the year is 40,000kWh or lower.
Subsequent to the year end, on 3 April 2024, the Company acquired the entire share capital of Elmecon Limited (a company registered in England) for consideration totalling £1.4m.
The auditors, Hurst Accountants Limited, will 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.
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Chambertin Capital Limited
Independent Auditors' Report to the Members of Chambertin Capital Limited
We have audited the financial statements of Chambertin Capital Limited (the 'parent Company') and its subsidiaries (the 'Group') for the period ended 31 December 2023, which comprise 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 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).
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 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.
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.
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual Report. 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. 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.
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Chambertin Capital Limited
Independent Auditors' Report to the Members of Chambertin Capital Limited (continued)
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 period 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.
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.
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Chambertin Capital Limited
Independent Auditors' Report to the Members of Chambertin Capital Limited (continued)
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 Auditors' 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:
The engagement partner's assessment of the appropriateness of the collective competence and capabilities of the engagement team included consideration of the engagement team's: • Understanding of, and practical experience with audit engagements of a similar nature and complexity through appropriate training and participation; • Knowledge of the industry in which the entity operates; • Understanding of the legal and regulatory requirements specific to the entity. Identifying and assessing potential risks related to irregularities In identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following: • The nature of the industry and sector in which the Group operates; the control environment and business performance including key drivers for directors' remuneration, bonus levels and performance targets. • The outcome of enquiries of local management and parent company management, including whether management was aware of any instances of non-compliance with laws and regulations, and whether management had knowledge of any actual, suspected, or alleged fraud. • Supporting documentation relating to the Group and Company's policies and procedures for: - Identifying, evaluating, and complying with laws and regulations - Detecting and responding to the risks of fraud • The internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations. • The outcome of discussions amongst the engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud. • The legal and regulatory framework in which the Group and Company operate, particularly those laws and regulations which have a direct effect on the financial statements, such as the Companies Act 2006, pensions and tax legislation, or which had a fundamental effect on the operations of the Group and Company, including General Data Protection requirements, and Anti-bribery and Corruption. We also communicated with component auditors to request identification of any instances of non-compliance with laws and regulations that could give rise to a material misstatement of the group financial statements. The engagement partner assessed whether the engagement team collectively had the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations.
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Chambertin Capital Limited
Independent Auditors' Report to the Members of Chambertin Capital Limited (continued)
Audit response to risks identified
Our procedures to respond to the risks identified included the following: • Reviewing the financial statements disclosures and testing to supporting documentation to assess compliance with the provisions of those relevant laws and regulations which have a direct effect on the financial statements. • Discussions with management, including consideration of known or suspected instances of non-compliance with laws and regulations and fraud. Procedures to identify non-compliance with relevant laws and regulations were performed at all components within the scope of our audit. • Evaluation of the operating effectiveness of management’s controls designed to prevent and detect irregularities. • Enquiring of management about any actual and potential litigation and claims. • Performing analytical procedures to identify any unusual or unexpected relationships which may indicate risks of material misstatement due to fraud. We have also considered the risk of fraud through management override of controls by: • Testing the appropriateness of journal entries and other adjustments. For the parent company and its UK subsidiaries, we have used data analytics software to identify accounting transactions which may pose a heightened risk of material misstatement, whether due to fraud or error. • Challenging assumptions made by management in their significant accounting estimates, and assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and • Evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business. We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit. There are inherent limitations in the audit procedures described above, and the further removed non-compliance with laws and regulations are from the events and transactions reflected in the financial statements, the less likely we would become aware of them. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
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 Auditors' 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 an Auditors' 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.
for and on behalf of
Chartered Accountants
Statutory Auditors
3 Stockport Exchange
Cheshire
SK1 3GG
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Chambertin Capital Limited
Consolidated Statement of Comprehensive Income
For the Period Ended 31 December 2023
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Chambertin Capital Limited
Registered number: 05617608
Consolidated Balance Sheet
As at
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 19 to 50 form part of these financial statements.
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Chambertin Capital Limited
Registered number: 05617608
Company Balance Sheet
As at
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 19 to 50 form part of these financial statements.
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Chambertin Capital Limited
Consolidated Statement of Changes in Equity
For the Period Ended 31 December 2023
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Chambertin Capital Limited
Company Statement of Changes in Equity
For the Period Ended 31 December 2023
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Chambertin Capital Limited
Consolidated Statement of Cash Flows
For the Period Ended 31 December 2023
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Chambertin Capital Limited
Consolidated Statement of Cash Flows (continued)
For the Period Ended 31 December 2023
Consolidated Analysis of Net Debt
For the Period Ended 31 December 2023
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Chambertin Capital Limited
Notes to the Financial Statements
For the Period Ended 31 December 2023
Chambertin Capital Limited (formerly Bryden Capital Limited) is a private company limited by shares and incorporated in England and Wales. The address of the registered office and the principal place of business is c/o MSS Products Ltd, Bankfield Road, Tyldesley, Manchester, M29 8QH. The company number is 05617608.
The nature of the Group's operations and its principal activity is the manufacture and supply of components to the power industry.
2.Accounting policies
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 reporting period is the 9 months ended 31 December 2023 so that the reporting date is aligned with the wider group's accounting reference date. As the previous reporting period was the year ended 31 March 2023, the comparative amounts presented in the financial statements are not entirely comparable.
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 Statement of Comprehensive Income in these financial statements.
Parent Company disclosure exemptions
In preparing the separate financial statements of the parent Company, advantage has been taken of the following disclosure exemptions available in FRS 102:
∙No Statement of Cash Flows has been presented for the parent Company.
The following principal accounting policies have been applied:
The consolidated financial statements present the results of the 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.
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Chambertin Capital Limited
Notes to the Financial Statements
For the Period Ended 31 December 2023
2.Accounting policies (continued)
Functional and presentation currency
This differs from the presentational currency which is GBP. The reason for the difference is shareholder and investor convenience.
Transactions and balances
Foreign exchange gains and losses are presented in the Consolidated statement of comprehensive income within 'administrative expenses' and 'other operating income'. On consolidation, the results of overseas operations are translated into Sterling at rates approximating to those ruling when the transactions took place. All assets and liabilities of overseas operations are translated at the rate ruling at the reporting date. Exchange differences arising on translating the opening net assets at opening rate and the results of overseas operations at actual rate are recognised in other comprehensive income.
Page 20
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Chambertin Capital Limited
Notes to the Financial Statements
For the Period Ended 31 December 2023
2.Accounting policies (continued)
If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only.
Page 21
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Chambertin Capital Limited
Notes to the Financial Statements
For the Period Ended 31 December 2023
2.Accounting policies (continued)
Defined benefit pension plan
Page 22
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Chambertin Capital Limited
Notes to the Financial Statements
For the Period Ended 31 December 2023
2.Accounting policies (continued)
All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.
The estimated useful lives range as follows:
Page 23
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Chambertin Capital Limited
Notes to the Financial Statements
For the Period Ended 31 December 2023
2.Accounting policies (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:
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.
Assets under construction are only subject to depreciation at the point that they are brought into use. The carrying value is reviewed periodically and if any assets are likely to generate future economic benefit they are subject to impairment accordingly.
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Chambertin Capital Limited
Notes to the Financial Statements
For the Period Ended 31 December 2023
2.Accounting policies (continued)
Provisions are charged as an expense to profit or loss in the year that the Group becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties. When payments are eventually made, they are charged to the provision carried in the Balance Sheet.
Page 25
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Chambertin Capital Limited
Notes to the Financial Statements
For the Period Ended 31 December 2023
2.Accounting policies (continued)
Financial instruments are recognised in the Group's Balance Sheet when the Group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs 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 receivables due with the operating cycle fall into this category of financial instruments.
Impairment of financial assets
Financial assets are assessed for indicators of impairment at each reporting date.
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 payables, and loans due to fellow group companies are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument 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.
Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.
Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables 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.
Page 26
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Chambertin Capital Limited
Notes to the Financial Statements
For the Period Ended 31 December 2023
2.Accounting policies (continued)
Other financial instruments
Derivatives, including forward exchange contracts and futures contracts, are not classified as basic financial instruments. These are initially recognised at fair value on the date the derivative contract is entered into, with costs being charged to the profit or loss. They are subsequently measured at fair value with changes in the profit or loss.
Debt instruments that do not meet the conditions as set out in FRS 102 paragraph 11.9 are subsequently measured at fair value through the profit or loss.
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.
Page 27
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Chambertin Capital Limited
Notes to the Financial Statements
For the Period Ended 31 December 2023
The judgements, estimates and assumptions that have the most significant effect on the carrying value of assets and liabilities of the Company as at 31 December 2023 are discussed below: a) Tangible fixed assets (Group and Company) During the period, management identified indicators of impairment for certain Plant and Machinery assets. As a result, an impairment loss of £522,000 was recorded in the Consolidated Statement of Comprehensive Income. The impairment loss was determined by comparing the carrying amount of the assets to their recoverable amount, which is the higher of fair value less costs to sell and value in use, which requires management's estimation and an element of uncertainty. The carrying amount of the Group's tangible fixed assets at 31 December 2023 was £10,743,540 (31 March 2023: £11,157,809) and the Company has tangible fixed assets with a net book value of £564,849 (31 March 2023: £1,999,568). b) Amounts owed by group undertakings (Company) During the period, the directors performed an impairment assessment of a loan owed to the Company by a group undertaking totalling £3,574,000. They concluded that an impairment provision totalling £715,000 should be recognised. The Carrying value of amounts owed to the Company by group undertakings at 31 December 2023 is £7,093,000, of which £2,859,000 is due in greater than one year. c) Provision for slow-moving and obsolete stocks (Group) In determining whether provision for slow-moving and obsolete stock should be recorded in profit or loss, Group management makes judgements as to whether there is any observable data indicating that there is any future saleability of the product and the estimated net realisable value for such product, including the potential scrap value. Accordingly, provision for impairment is made where the net realisable value is less than the cost, based on estimates by Group management. At 31 December 2023, stock held by the Group totalled £14,936,956 (31 March 2023: £17,449,574). The carrying value of the Group's stocks is stated net of provisions totalling £582,041 (31 March 2023 - £151,535).
Page 28
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Chambertin Capital Limited
Notes to the Financial Statements
For the Period Ended 31 December 2023
Analysis of turnover by country of destination:
Page 29
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Chambertin Capital Limited
Notes to the Financial Statements
For the Period Ended 31 December 2023
Page 30
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Chambertin Capital Limited
Notes to the Financial Statements
For the Period Ended 31 December 2023
Page 31
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Chambertin Capital Limited
Notes to the Financial Statements
For the Period Ended 31 December 2023
Page 32
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Chambertin Capital Limited
Notes to the Financial Statements
For the Period Ended 31 December 2023
Page 33
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Chambertin Capital Limited
Notes to the Financial Statements
For the Period Ended 31 December 2023
14.Taxation (continued)
There were no factors that may affect future tax charges.
Page 34
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Chambertin Capital Limited
Notes to the Financial Statements
For the Period Ended 31 December 2023
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements. The loss after tax of the parent Company for the period/year was £
Page 35
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Chambertin Capital Limited
Notes to the Financial Statements
For the Period Ended 31 December 2023
Page 36
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Chambertin Capital Limited
Notes to the Financial Statements
For the Period Ended 31 December 2023
17.Intangible assets (continued)
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Chambertin Capital Limited
Notes to the Financial Statements
For the Period Ended 31 December 2023
Page 38
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Chambertin Capital Limited
Notes to the Financial Statements
For the Period Ended 31 December 2023
18.Tangible fixed assets (continued)
Page 39
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Chambertin Capital Limited
Notes to the Financial Statements
For the Period Ended 31 December 2023
18.Tangible fixed assets (continued)
Page 40
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Chambertin Capital Limited
Notes to the Financial Statements
For the Period Ended 31 December 2023
Page 41
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Chambertin Capital Limited
Notes to the Financial Statements
For the Period Ended 31 December 2023
Page 42
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Chambertin Capital Limited
Notes to the Financial Statements
For the Period Ended 31 December 2023
Page 43
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Chambertin Capital Limited
Notes to the Financial Statements
For the Period Ended 31 December 2023
Page 44
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Chambertin Capital Limited
Notes to the Financial Statements
For the Period Ended 31 December 2023
Page 45
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Chambertin Capital Limited
Notes to the Financial Statements
For the Period Ended 31 December 2023
27.Share capital (continued)
Profit and loss account
a) The Group's overdraft facility with Lloyds Bank plc is secured by way of an unlimited debenture over all present and future business asset, goodwill and intellectual property rights.
An omnibus guarantee agreement dated 16 March 2016, and an omnibus guarantee and set off agreement dated 4 April 2014, have been given to Lloyds Bank Plc in favour of the Company and certain subsidiary undertakings. b) The Group has a contingent liability in relation to custom duties which may be demanded totalling £2,135,577 (31 March 2023: £752,861). c) The Group has been advised of an income tax liability which may arise in respect of matters in appeal totalling £17,051 (31 March 2023: £17,809). The Group occasionally issues bonds and guarantees to specific customers. As at 31 December 2023, the value of bonds and guarantees outstanding totalled £284,795 (31 March 2023: £459,143).
Page 46
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Chambertin Capital Limited
Notes to the Financial Statements
For the Period Ended 31 December 2023
The Group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Group in an independently administered fund. The pension cost charge represents contributions payable by the Group to the fund and amounted to £343,838 (Year to 31 March 2023 - £304,108) . Contributions totalling £nil (31 March 2023 - £nil) were payable to the fund at the balance sheet date and are included in creditors.
MSS India Private Limited, a subsidiary undertaking, operates a defined benefit gratuity plan. The scheme provides
for lump sum payments to employees on retirement, death while in employment or termination of employment of an amount equivalent to 15 days salary for every completed year of service or party thereof in six months, provided the employee has completed 5 years of service.
The following tables summarise the components of the net benefit expense recognised in the Consolidated Statement of Comprehensive Income and the Consolidated Balance Sheet.
Page 47
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Chambertin Capital Limited
Notes to the Financial Statements
For the Period Ended 31 December 2023
31.Pension commitments (continued)
Page 48
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Chambertin Capital Limited
Notes to the Financial Statements
For the Period Ended 31 December 2023
31.Pension commitments (continued)
Page 49
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Chambertin Capital Limited
Notes to the Financial Statements
For the Period Ended 31 December 2023
At 1 April 2023, the Group was controlled by B J Hall by virtue of his controlling shareholding in the Company.
During the year, on 31 May 2023, the entire share capital of the Company was acquired by Bamboo Bidco Limited, a company registered in Jersey. The ultimate controlling party is now Stellex Capital Holdings II Luxembourg SARL.
Page 50
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