REGISTERED NUMBER: 12747384 (England and Wales) |
GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MARCH 2024 |
FOR |
J.J. CHURCHILL (HOLDINGS) LIMITED |
REGISTERED NUMBER: 12747384 (England and Wales) |
GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MARCH 2024 |
FOR |
J.J. CHURCHILL (HOLDINGS) LIMITED |
J.J. CHURCHILL (HOLDINGS) LIMITED (REGISTERED NUMBER: 12747384) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MARCH 2024 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 6 |
Report of the Independent Auditors | 7 |
Consolidated Income Statement | 10 |
Consolidated Other Comprehensive Income | 11 |
Consolidated Balance Sheet | 12 |
Company Balance Sheet | 13 |
Consolidated Statement of Changes in Equity | 14 |
Company Statement of Changes in Equity | 15 |
Consolidated Cash Flow Statement | 16 |
Notes to the Consolidated Cash Flow Statement | 17 |
Notes to the Consolidated Financial Statements | 18 |
J.J. CHURCHILL (HOLDINGS) LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31 MARCH 2024 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants |
Statutory Auditor |
161 Newhall Street |
Birmingham |
B3 1SW |
J.J. CHURCHILL (HOLDINGS) LIMITED (REGISTERED NUMBER: 12747384) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31 MARCH 2024 |
The directors present their strategic report of the company and the group for the year ended 31 March 2024. |
REVIEW OF BUSINESS |
The J.J. Churchill Holdings Ltd is the Holdings company for a Tier 1, make-to-print, precision engineering supplier. The oldest part of the Group was founded 86 years ago, we specialise in the production of gas-turbine blades for aerospace and industrial power generation, manufacturing in compliance with current AS9100 and appropriate NADCAP and customer certifications. |
Throughout 2023 - 2024, aviation has continued its post-Pandemic growth trajectory, and the aerospace sector has benefited from this. The Group's main activity relates to the long-term business-jet sector, complemented and balanced by the industrial gas-turbine market. However, expected output was severely restricted throughout the year by a fire at a key supplier. This supplier performed a customer-mandated, proprietary coating process for which there was no alternative source. The supplier has since re-instituted the process at a different facility, though this took many months. |
The Group has been successful in winning a significant new industrial gas-turbine customer in the USA. This has highlighted further opportunity that the business looks forward to developing in 2025, which together provide increasing strategic balance to our aerospace sector. |
For 2024 - 2025, the recent certification of the Gulfstream 700 has brought certainty to new-engine build rates and sustained demand is now being seen, our own production volumes correspondingly increasing. In the coming months the Dassault Falcon 10X should receive its flight certification, further cementing Pearl engine orders and consequent parts demand on the Group. Given these opportunities, the ultimate shareholders agreed to make further investment into the Group to ensure it is best placed to capitalise on these opportunities by subscribing to £1.0 m of preference shares in June 2023 and a loan of £500k in February 2024 allowing it to build the necessary stock through the long production lead-time to meet the resurgent orderbook. |
The globally critical drive to 'Net Zero' carbon is recognised by the UK aerospace sector. The Group's approach continues to be actively engaged and, meeting the challenge of the "SME Climate Commitment', to become Net Zero by 2050. More details on progress may be found towards the end of this strategic report. |
ANALYSIS USING FINANCIAL KEY PERFORMANCE INDICATORS |
Sales during the year at £16.1m (2023 - £16.1m) have remained steady. The sales opportunities outlined above give a strong order bank for forthcoming years, with average growth for the next two years being an additional 53%. |
New capital equipment acquired during the current year at £151k is significantly lower than the depreciation and impairment charge of £1.5m. This reflects resurgence in demand on delayed business-jet contracts now seeing the capital equipment previously procured for these projects come into use to meet customer-demand through 2024 and beyond. |
Loss after tax in the year at £4.6m (2023 - £0.6m profit) reflects a fall of £5.2m year-on-year. Analysis of raw material content highlights an increase of 22% compared with the previous year, this is a direct result of programme mix changes impacting Contribution. |
J.J. Churchill Limited's liabilities exceed its assets by £3.6m at the year end. The continuing support of the trading company's shareholders is fundamental to the trading company's ability to achieve its planned objectives and hence continue to trade. The shareholders have provided a letter of support to 30 April 2026, and the directors have concluded that funding would be available if required. The trading company is also reliant on the continued support of its largest customer. Based on the trading company's forecasts and projections for the next two financial years (FY 25/26 & FY 26/27) the directors are satisfied that the trading company will be able to trade on a going concern basis, whilst reducing working capital and accounts payable. |
J.J. CHURCHILL (HOLDINGS) LIMITED (REGISTERED NUMBER: 12747384) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31 MARCH 2024 |
STREAMLINED ENERGY & CARBON REPORT (SECR) |
The intensity ratio is total gross emissions in metric tonnes CO2e (mandatory emissions) per total million-pound (£m) turnover. The turnover relates to UK operations to align with the energy and emission reporting boundary. This financial metric is considered the most relevant to the Group's energy consuming activities due to the range of manufacturing processes undertaken across sites and provides a good comparison of performance over time. |
ENERGY EFFICIENCY ACTION DURING CURRENT FINANCIAL YEAR |
The management of resources and the need to embed sustainability is a crucial issue for the Company. This is exemplified with the target for reducing GHG emissions 50% by 2030 based on a FY 2020, ending March, baseline. The Company is committed to helping customers in their GHG reduction targets and as such participate within the Carbon Change Agreements which use sector-wide emission-reductions based on the types of processes undertaken. |
With customer support, the Company continues to be engaged with Ecovadis to both audit our approach and to provide a performance dashboard. The Company is delighted to report that the prior year's assessment holds, and our silver Ecovadis medal has been retained. |
Despite broadly similar activity to the previous year, Scope 1 and 2 energy consumption has fallen and FY 2023 - 2024 show a 24% reduction in tCO2e/£m. |
Improvement projects include: |
- Continued up-grading of lighting with LED lighting to replace older inefficient systems. |
- Targeted programme of planned maintenance identifying and repairing machinery air-leaks is ongoing. |
- Completed the migration from ICE-powered Company vehicles to 100% EV vehicles. |
- Old boiler replaced with small over-sink, on-demand hot-water supply. |
- A project to evaluate PV site solar power generation is being considered, it is estimated this could generate between 5% and 8% of our procured energy demands. |
- The site continues to operate a zero waste to Landfill policy. |
- ISO14001 registration was re-confirmed following periodic review. |
J.J. CHURCHILL (HOLDINGS) LIMITED (REGISTERED NUMBER: 12747384) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31 MARCH 2024 |
2022 (Market Factors) |
2023 (Market Factors) |
2024 (Market Factors) |
Energy Consumption Scope 1 & 2 (kWh) | 3,188,661 | 3,202,000 | 3,090,925 |
Greenhouse Gas Emissions Data |
Scope Definition |
Scope 1: |
Emissions from activities which the Group owns or controls (tCO²e) |
82 |
67 |
52 |
Scope 2: |
Emissions from electricity purchased for the Group's use (tCO²e) |
0 |
0 |
0 |
Total Gross Scope 1 & 2 Emissions | 82 | 67 | 52 |
Scope 3: |
Emissions from employee business travel which the Group does not own or control (tCO²e) |
5 |
12 |
23 |
Turnover (£m) | 7.1 | 16.1 | 16.1 |
Total Gross Scope 1 & 2 per £m turnover (tCO²e/£m) |
11.6 |
4.2 |
3.2 |
J.J. CHURCHILL (HOLDINGS) LIMITED (REGISTERED NUMBER: 12747384) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31 MARCH 2024 |
The market-based method calculates emissions based on the electricity that organisations have chosen to purchase, as defined in contracts or instruments such as Renewable Energy Certificates (RECs). |
The market-based method assigns an emission factor of 0 based on the principle that the group has chosen to purchase offsite renewable electricity, backed by a REC. The location-based method does not factor in instruments or contracts and assigns the local grid average emission factor to all offsite usage, regardless of where it comes from. |
The market-based method also allows organizations to calculate emissions using provider-specific factors from their electric utilities. The GHG Protocol's Scope 2 Guidance also validates this approach. Since no market has instituted comprehensive energy tracking by contractual instruments, this method uses some of the same energy production and emissions data from the location-based method for any energy not tracked by an instrument. |
Glossary of terms |
CO²e Carbon Dioxide or equivalent |
GHG Green-house Gas |
UK Operations Station Road, Market Bosworth and Westminster Industrial Estate, Measham |
Ecovadis Rolls-Royce plc appointed compliance auditors |
ICE Internal Combustion Engine |
PHEV Plug-In Hybrid Electric Vehicle |
EV Electric Vehicle |
ON BEHALF OF THE BOARD: |
J.J. CHURCHILL (HOLDINGS) LIMITED (REGISTERED NUMBER: 12747384) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 MARCH 2024 |
The directors present their report with the financial statements of the company and the group for the year ended 31 March 2024. |
DIVIDENDS |
No dividends will be distributed for the year ended 31 March 2024. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 April 2023 to the date of this report. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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 and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
AUDITORS |
The auditors, Prime, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
J.J. CHURCHILL (HOLDINGS) LIMITED |
Opinion |
We have audited the financial statements of J.J. Churchill (Holdings) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2024 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the group's and of the parent company affairs as at 31 March 2024 and of the group's loss for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and 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. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
J.J. CHURCHILL (HOLDINGS) LIMITED |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Directors 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 Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept 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 Statement of Directors' Responsibilities set out on page six, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the 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. |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows: |
- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; |
- we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the industry sector; |
- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation and data protection, anti-bribery, employment, environmental and health and safety legislation; |
- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
J.J. CHURCHILL (HOLDINGS) LIMITED |
We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: |
- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and |
- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. |
To address the risk of fraud through management bias and override of controls, we: |
- performed analytical procedures to identify any unusual or unexpected relationships; |
- tested journal entries to identify unusual transactions; |
- assessed whether judgements and assumptions made in determining accounting estimates were indicative of potential bias; and |
- investigated the rationale behind significant or unusual transactions. |
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: |
- agreeing financial statement disclosures to underlying supporting documentation; |
- enquiring of management as to actual and potential litigation and claims; and |
- reviewing correspondence with HMRC and other relevant parties. |
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. |
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or 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 Report of the Auditors. |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Chartered Accountants |
Statutory Auditor |
161 Newhall Street |
Birmingham |
B3 1SW |
J.J. CHURCHILL (HOLDINGS) LIMITED (REGISTERED NUMBER: 12747384) |
CONSOLIDATED INCOME STATEMENT |
FOR THE YEAR ENDED 31 MARCH 2024 |
2024 | 2023 |
Notes | £ | £ | £ |
TURNOVER | 3 | 16,077,634 | 16,111,131 |
Cost of sales | 17,389,024 | 13,461,347 |
GROSS (LOSS)/PROFIT | (1,311,390 | ) | 2,649,784 |
Distribution costs | 413,096 | 96,457 |
Administrative expenses | 2,483,920 | 2,694,317 |
2,897,016 | 2,790,774 |
OPERATING LOSS | 5 | (4,208,406 | ) | (140,990 | ) |
Interest payable and similar expenses | 6 | 487,871 | 306,485 |
Other finance costs | 21 | 105,000 | 67,000 |
592,871 | 373,485 |
LOSS BEFORE TAXATION | (4,801,277 | ) | (514,475 | ) |
Tax on loss | 7 | (1,186,437 | ) | (1,689,117 | ) |
(LOSS)/PROFIT FOR THE FINANCIAL YEAR |
( |
) |
(Loss)/profit attributable to: |
Owners of the parent | (3,614,840 | ) | 1,174,642 |
J.J. CHURCHILL (HOLDINGS) LIMITED (REGISTERED NUMBER: 12747384) |
CONSOLIDATED OTHER COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 31 MARCH 2024 |
2024 | 2023 |
Notes | £ | £ |
(LOSS)/PROFIT FOR THE YEAR | (3,614,840 | ) | 1,174,642 |
OTHER COMPREHENSIVE INCOME |
Actuarial gains/(losses) from assets | 117,000 | (1,989,000 | ) |
Actuarial gains/(losses) from |
a change in financial assumptions | (15,000 | ) | 2,434,000 |
Actuarial gains/(losses) from |
a change in demographic assumptions | 162,000 | - |
Actuarial gains/(losses) from experience | 86,000 | (405,000 | ) |
Income tax relating to components of other comprehensive income |
(36,750 |
) |
(608,500 |
) |
OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX |
313,250 |
(568,500 |
) |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
(3,301,590 |
) |
606,142 |
Total comprehensive income attributable to: |
Owners of the parent | (3,301,590 | ) | 606,142 |
J.J. CHURCHILL (HOLDINGS) LIMITED (REGISTERED NUMBER: 12747384) |
CONSOLIDATED BALANCE SHEET |
31 MARCH 2024 |
2024 | 2023 |
Notes | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 9 | (1,809,523 | ) | (3,175,056 | ) |
Tangible assets | 10 | 4,881,714 | 6,261,136 |
Investments | 11 | - | - |
3,072,191 | 3,086,080 |
CURRENT ASSETS |
Stocks | 12 | 7,955,191 | 2,884,376 |
Debtors | 13 | 6,308,342 | 6,449,806 |
Cash at bank | 929,124 | 1,501,302 |
15,192,657 | 10,835,484 |
CREDITORS |
Amounts falling due within one year | 14 | 13,764,275 | 4,876,780 |
NET CURRENT ASSETS | 1,428,382 | 5,958,704 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
4,500,573 |
9,044,784 |
CREDITORS |
Amounts falling due after more than one year |
15 |
(2,473,496 |
) |
(3,251,117 |
) |
PENSION LIABILITY | 22 | (1,835,000 | ) | (2,300,000 | ) |
NET ASSETS | 192,077 | 3,493,667 |
CAPITAL AND RESERVES |
Called up share capital | 20 | 1,551,908 | 1,551,908 |
Share premium | 21 | 5,541,064 | 5,541,064 |
Retained earnings | 21 | (6,900,895 | ) | (3,599,305 | ) |
SHAREHOLDERS' FUNDS | 192,077 | 3,493,667 |
The financial statements were approved by the Board of Directors and authorised for issue on 11 April 2025 and were signed on its behalf by: |
M Cooper - Director |
J.J. CHURCHILL (HOLDINGS) LIMITED (REGISTERED NUMBER: 12747384) |
COMPANY BALANCE SHEET |
31 MARCH 2024 |
2024 | 2023 |
Notes | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 9 |
Tangible assets | 10 |
Investments | 11 |
CURRENT ASSETS |
Debtors | 13 |
CREDITORS |
Amounts falling due within one year | 14 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CAPITAL AND RESERVES |
Called up share capital | 20 |
Share premium | 21 |
Retained earnings | 21 | ( |
) |
SHAREHOLDERS' FUNDS |
Company's loss for the financial year | (137,450 | ) | - |
The financial statements were approved by the Board of Directors and authorised for issue on |
J.J. CHURCHILL (HOLDINGS) LIMITED (REGISTERED NUMBER: 12747384) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 MARCH 2024 |
Called up |
share | Retained | Share | Total |
capital | earnings | premium | equity |
£ | £ | £ | £ |
Balance at 1 April 2022 | 1,537,868 | (4,205,447 | ) | 5,466,778 | 2,799,199 |
Changes in equity |
Issue of share capital | 14,040 | - | 74,286 | 88,326 |
Total comprehensive income | - | 606,142 | - | 606,142 |
Balance at 31 March 2023 | 1,551,908 | (3,599,305 | ) | 5,541,064 | 3,493,667 |
Changes in equity |
Total comprehensive income | - | (3,301,590 | ) | - | (3,301,590 | ) |
Balance at 31 March 2024 | 1,551,908 | (6,900,895 | ) | 5,541,064 | 192,077 |
J.J. CHURCHILL (HOLDINGS) LIMITED (REGISTERED NUMBER: 12747384) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 MARCH 2024 |
Called up |
share | Retained | Share | Total |
capital | earnings | premium | equity |
£ | £ | £ | £ |
Balance at 1 April 2022 |
Changes in equity |
Issue of share capital | - |
Balance at 31 March 2023 |
Changes in equity |
Total comprehensive income | - | ( |
) | - | ( |
) |
Balance at 31 March 2024 | ( |
) |
J.J. CHURCHILL (HOLDINGS) LIMITED (REGISTERED NUMBER: 12747384) |
CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 MARCH 2024 |
2024 | 2023 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | (109,907 | ) | 780,508 |
Interest paid | (350,421 | ) | (306,485 | ) |
Net cash from operating activities | (460,328 | ) | 474,023 |
Cash flows from investing activities |
Purchase of intangible fixed assets | (836,357 | ) | - |
Purchase of tangible fixed assets | (151,850 | ) | (1,702,767 | ) |
Net cash from investing activities | (988,207 | ) | (1,702,767 | ) |
Cash flows from financing activities |
New loans in year | 503,896 | - |
Capital repayments in year | (667,529 | ) | 1,389,511 |
Share issue | - | 28,080 |
Preference shares issue | 1,039,990 | - |
Net cash from financing activities | 876,357 | 1,417,591 |
(Decrease)/increase in cash and cash equivalents | (572,178 | ) | 188,847 |
Cash and cash equivalents at beginning of year |
2 |
1,501,302 |
1,312,455 |
Cash and cash equivalents at end of year |
2 |
929,124 |
1,501,302 |
J.J. CHURCHILL (HOLDINGS) LIMITED (REGISTERED NUMBER: 12747384) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 MARCH 2024 |
1. | RECONCILIATION OF LOSS BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2024 | 2023 |
£ | £ |
Loss before taxation | (4,801,277 | ) | (514,475 | ) |
Depreciation charges | 1,002,096 | 888,262 |
Pension scheme costs | (105,000 | ) | (67,000 | ) |
Finance costs | 592,871 | 373,485 |
(3,311,310 | ) | 680,272 |
(Increase)/decrease in stocks | (5,070,815 | ) | 1,479,279 |
Decrease/(increase) in trade and other debtors | 1,291,151 | (1,704,756 | ) |
Increase in trade and other creditors | 6,981,067 | 325,713 |
Cash generated from operations | (109,907 | ) | 780,508 |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31 March 2024 |
31.3.24 | 1.4.23 |
£ | £ |
Cash and cash equivalents | 929,124 | 1,501,302 |
Year ended 31 March 2023 |
31.3.23 | 1.4.22 |
£ | £ |
Cash and cash equivalents | 1,501,302 | 1,312,455 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
At 1.4.23 | Cash flow | At 31.3.24 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 1,501,302 | (572,178 | ) | 929,124 |
1,501,302 | (572,178 | ) | 929,124 |
Debt |
Finance leases | (4,037,841 | ) | 667,529 | (3,370,312 | ) |
Debts falling due within 1 year | - | (1,543,886 | ) | (1,543,886 | ) |
(4,037,841 | ) | (876,357 | ) | (4,914,198 | ) |
Total | (2,536,539 | ) | (1,448,535 | ) | (3,985,074 | ) |
J.J. CHURCHILL (HOLDINGS) LIMITED (REGISTERED NUMBER: 12747384) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MARCH 2024 |
1. | STATUTORY INFORMATION |
J.J. Churchill (Holdings) Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Going concern |
The trading company has incurred a net loss before tax of £5.2m during the year to 31 March 2024 and, as of that date, the company's liabilities exceed its assets by £3.6m. The trading company is expected to incur a net loss before tax in the year to 31 March 2025 of approximately £1.9m. |
The continuing support of the company's shareholders is fundamental to the company's ability to achieve its planned objectives and hence continue to trade. The shareholders have provided a letter of support to 30 April 2026, and the directors have concluded that funding would be available if required. The trading company is also reliant on the continued support of its largest customer. Based on the trading company's forecasts and projections for the next two financial years (FY 25/26 & FY 26/27) the directors are satisfied that the company will be able to trade on a going concern basis, whilst reducing working capital and accounts payable. |
At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future, being a period of not less than 12 months from the approval of these financial statements. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements. |
Basis of consolidation |
The group financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 31 March 2023. The results of subsidiaries acquired or sold are consolidated for the periods from the date on which control passed. |
Business combinations are accounted for under the purchase method. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used in line with those used by the group. All inter-group transactions, balances, income and expenses are eliminated on consolidation. |
Under S408 of the Companies Act 2006 the company is exempt from the requirement to present its own profit and loss account. |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Goodwill |
J.J. CHURCHILL (HOLDINGS) LIMITED (REGISTERED NUMBER: 12747384) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2024 |
2. | ACCOUNTING POLICIES - continued |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accu,ulated amortisation and any accumulated impairment losses. |
Development costs will be amortised evenly over their estimated useful life. |
Tangible fixed assets |
Freehold property | - |
Plant and machinery | - |
Stocks |
Stocks and work in progress are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
J.J. CHURCHILL (HOLDINGS) LIMITED (REGISTERED NUMBER: 12747384) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2024 |
2. | ACCOUNTING POLICIES - continued |
Pension costs and other post-retirement benefits |
The company previously operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
The company previously operated a defined benefits pension scheme for the benefit of two of the directors and certain key employees of the company, alongside a separate defined contributions pension scheme for other employees. The Company's total obligation in respect of defined benefit plans is calculated by independent,qualified actuaries and updated at least annually. The size of the obligation is sensitive to actuarial assumptions.The key assumptions are the discount rate, the rate of inflations, life expectancy, pension benefits and rate of salary increases. The pension contributions made by the company under these arrangements are shown in the notes to the financial statements. The disclosures required under FRS102 employee benefits are shown in note 22. |
3. | TURNOVER |
The turnover and loss before taxation are attributable to the one principal activity of the group. |
An analysis of turnover by geographical market is given below: |
2024 | 2023 |
£ | £ |
United Kingdom | 1,731,000 | 4,788,000 |
Europe | 13,619,000 | 10,534,000 |
Rest of world | 727,634 | 789,131 |
16,077,634 | 16,111,131 |
4. | EMPLOYEES AND DIRECTORS |
2024 | 2023 |
£ | £ |
Wages and salaries | 3,848,895 | 3,723,236 |
Social security costs | 395,617 | 404,268 |
Other pension costs | 125,618 | 131,000 |
4,370,130 | 4,258,504 |
The average number of employees during the year was as follows: |
2024 | 2023 |
Production | 74 | 80 |
Sales | 2 | 2 |
Administration | 16 | 15 |
2024 | 2023 |
£ | £ |
Directors' remuneration | 395,281 | 393,614 |
Directors' pension contributions to money purchase schemes | 37,577 | 37,645 |
J.J. CHURCHILL (HOLDINGS) LIMITED (REGISTERED NUMBER: 12747384) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2024 |
4. | EMPLOYEES AND DIRECTORS - continued |
Information regarding the highest paid director is as follows: |
2024 | 2023 |
£ | £ |
Emoluments etc | 205,281 | 205,281 |
Pension contributions to money purchase schemes | 18,577 | 18,577 |
5. | OPERATING LOSS |
The operating loss is stated after charging/(crediting): |
2024 | 2023 |
£ | £ |
Depreciation - owned assets | 300,946 | 229,964 |
Depreciation - assets on hire purchase contracts | 1,230,326 | 1,187,474 |
Goodwill amortisation | (529,176 | ) | (529,176 | ) |
Auditors' remuneration | 18,403 | 20,292 |
Auditors' remuneration for non audit work | 3,450 | 7,900 |
Foreign exchange differences | (190,409 | ) | 103,854 |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2024 | 2023 |
£ | £ |
Preference share dividend | 487,871 | 306,485 |
7. | TAXATION |
Analysis of the tax credit |
The tax credit on the loss for the year was as follows: |
2024 | 2023 |
£ | £ |
Deferred tax | (1,186,437 | ) | (1,689,117 | ) |
Tax on loss | (1,186,437 | ) | (1,689,117 | ) |
J.J. CHURCHILL (HOLDINGS) LIMITED (REGISTERED NUMBER: 12747384) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2024 |
7. | TAXATION - continued |
Reconciliation of total tax credit included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
2024 | 2023 |
£ | £ |
Loss before tax | (4,801,277 | ) | (514,475 | ) |
Loss multiplied by the standard rate of corporation tax in the UK of 25 % (2023 - 19 %) |
(1,200,319 |
) |
(97,750 |
) |
Effects of: |
Expenses not deductible for tax purposes | 35,363 | 5,000 |
Capital allowances in excess of depreciation | - | (276,000 | ) |
Depreciation in excess of capital allowances | 211,000 | - |
Defined benefit pension scheme adjustments | (30,000 | ) | (341,000 | ) |
Deferred Tax Movement | (1,186,000 | ) | (1,359,000 | ) |
Tax losses carried forward | 1,116,000 | 480,000 |
Amortisation | (132,481 | ) | (100,367 | ) |
Total tax credit | (1,186,437 | ) | (1,689,117 | ) |
Tax effects relating to effects of other comprehensive income |
2024 |
Gross | Tax | Net |
£ | £ | £ |
Actuarial gains/(losses) from assets | 117,000 | - | 117,000 |
Actuarial gains/(losses) from |
a change in financial assumptions | (15,000 | ) | 3,750 | (11,250 | ) |
Actuarial gains/(losses) from |
a change in demographic assumptions | 162,000 | (40,500 | ) | 121,500 |
Actuarial gains/(losses) from experience | 86,000 | - | 86,000 |
350,000 | (36,750 | ) | 313,250 |
2023 |
Gross | Tax | Net |
£ | £ | £ |
Actuarial gains/(losses) from assets | (1,989,000 | ) | - | (1,989,000 | ) |
Actuarial gains/(losses) from |
a change in financial assumptions | 2,434,000 | (608,500 | ) | 1,825,500 |
Actuarial gains/(losses) from |
a change in demographic assumptions |
Actuarial gains/(losses) from experience | (405,000 | ) | - | (405,000 | ) |
40,000 | (608,500 | ) | (568,500 | ) |
J.J. CHURCHILL (HOLDINGS) LIMITED (REGISTERED NUMBER: 12747384) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2024 |
8. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
9. | INTANGIBLE FIXED ASSETS |
Group |
Development |
Goodwill | costs | Totals |
£ | £ | £ |
COST |
At 1 April 2023 | (3,704,232 | ) | - | (3,704,232 | ) |
Additions | - | 836,357 | 836,357 |
At 31 March 2024 | (3,704,232 | ) | 836,357 | (2,867,875 | ) |
AMORTISATION |
At 1 April 2023 | (529,176 | ) | - | (529,176 | ) |
Amortisation for year | (529,176 | ) | - | (529,176 | ) |
At 31 March 2024 | (1,058,352 | ) | - | (1,058,352 | ) |
NET BOOK VALUE |
At 31 March 2024 | (2,645,880 | ) | 836,357 | (1,809,523 | ) |
At 31 March 2023 | (3,175,056 | ) | - | (3,175,056 | ) |
10. | TANGIBLE FIXED ASSETS |
Group |
Freehold | Plant and |
property | machinery | Totals |
£ | £ | £ |
COST |
At 1 April 2023 | 974,989 | 6,428,620 | 7,403,609 |
Additions | - | 151,850 | 151,850 |
At 31 March 2024 | 974,989 | 6,580,470 | 7,555,459 |
DEPRECIATION |
At 1 April 2023 | 142,807 | 999,666 | 1,142,473 |
Charge for year | 62,897 | 1,468,375 | 1,531,272 |
At 31 March 2024 | 205,704 | 2,468,041 | 2,673,745 |
NET BOOK VALUE |
At 31 March 2024 | 769,285 | 4,112,429 | 4,881,714 |
At 31 March 2023 | 832,182 | 5,428,954 | 6,261,136 |
J.J. CHURCHILL (HOLDINGS) LIMITED (REGISTERED NUMBER: 12747384) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2024 |
10. | TANGIBLE FIXED ASSETS - continued |
Group |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Plant and |
machinery |
£ |
COST |
At 1 April 2023 | 14,405,078 |
Additions | 135,000 |
At 31 March 2024 | 14,540,078 |
DEPRECIATION |
At 1 April 2023 | 9,565,081 |
Charge for year | 1,230,326 |
At 31 March 2024 | 10,795,407 |
NET BOOK VALUE |
At 31 March 2024 | 3,744,671 |
At 31 March 2023 | 4,839,997 |
11. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 April 2023 |
and 31 March 2024 |
NET BOOK VALUE |
At 31 March 2024 |
At 31 March 2023 |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiary |
Registered office: Station Road, Market Bosworth, Nuneaton, Warwickshire, CV13 0PF |
Nature of business: |
% |
Class of shares: | holding |
J.J. CHURCHILL (HOLDINGS) LIMITED (REGISTERED NUMBER: 12747384) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2024 |
12. | STOCKS |
Group |
2024 | 2023 |
£ | £ |
Raw materials | 1,779,068 | 567,405 |
Work-in-progress | 5,903,690 | 1,828,714 |
Finished goods | 272,433 | 488,257 |
7,955,191 | 2,884,376 |
13. | DEBTORS |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Amounts falling due within one year: |
Trade debtors | 1,714,512 | 864,924 |
Amounts owed by group undertakings | - | - |
Other debtors | - | 1,674,626 |
Prepayments and accrued income | 331,690 | 797,803 |
2,046,202 | 3,337,353 |
Amounts falling due after more than one | year: |
Deferred tax asset | 4,262,140 | 3,112,453 | - | - |
Aggregate amounts | 6,308,342 | 6,449,806 |
Deferred tax asset |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Deferred tax | 4,262,140 | 3,112,453 | - | - |
14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Other loans (see note 16) | 1,543,886 | - |
Hire purchase contracts (see note 17) | 896,816 | 786,724 |
Trade creditors | 10,328,907 | 3,597,904 |
Social security and other taxes | 117,818 | 86,516 |
Other creditors | 72,909 | 13,826 |
Accruals and deferred income | 803,939 | 391,810 |
13,764,275 | 4,876,780 |
J.J. CHURCHILL (HOLDINGS) LIMITED (REGISTERED NUMBER: 12747384) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2024 |
15. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group |
2024 | 2023 |
£ | £ |
Hire purchase contracts (see note 17) | 2,473,496 | 3,251,117 |
16. | LOANS |
An analysis of the maturity of loans is given below: |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Amounts falling due within one year or | on demand: |
Other loans | 503,896 | - |
Preference shares | 1,039,990 | - | 1,039,990 | - |
1,543,886 | - |
Details of shares shown as liabilities are as follows: |
1,039,990 £1 Preference Shares were issued in the year. The shares have priority over all other classes of shares for dividends and any return of capital, are entitled to a fixed dividend and voting rights rank pari passu with all other classes of shares. |
17. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Hire purchase | contracts |
2024 | 2023 |
£ | £ |
Net obligations repayable: |
Within one year | 896,816 | 786,724 |
Between one and five years | 2,473,496 | 3,251,117 |
3,370,312 | 4,037,841 |
Group |
Non-cancellable | operating leases |
2024 | 2023 |
£ | £ |
Within one year | 40,616 | 73,584 |
Between one and five years | 21,316 | 61,908 |
61,932 | 135,492 |
J.J. CHURCHILL (HOLDINGS) LIMITED (REGISTERED NUMBER: 12747384) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2024 |
18. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group |
2024 | 2023 |
£ | £ |
Hire purchase contracts | 3,370,312 | 4,037,841 |
The group's bank lending is secured by both a first legal charge over its freehold property together with a fixed and floating charge over the assets of the company. |
19. | DEFERRED TAX |
Group |
£ |
Balance at 1 April 2023 | (3,112,453 | ) |
Credit to Income Statement during year | (1,265,687 | ) |
Defined Benefit Pension Scheme | 116,000 |
Balance at 31 March 2024 | (4,262,140 | ) |
The above balance relates to trade losses (£4,249,140), accelerated capital allowances £416,000, short term timing differences £30,000 and defined benefit pension scheme liability (£459,000). |
20. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2024 | 2023 |
value: | £ | £ |
A Ordinary shares | 1 | 1,033,222 | 1,033,222 |
Ordinary B | 1 | 517,040 | 517,040 |
Ordinary C | .01 | 1,646 | 1,646 |
1,551,908 | 1,551,908 |
Ordinary A and Ordinary B shares have equal voting rights and ranking on liquidation or wind up. Both classes of share are entitled to a dividend and are non-redeemable. |
Ordinary C shares carry no voting rights and are ranked below Ordinary A and Ordinary B shares on liquidation or wind up. Participation in dividends is subject to Investor Consent and Director Approval and the shares are non-redeemable. |
Preference Shares were issued in the year. These are classified as a liability in the financial statements, further details given at note 16. |
J.J. CHURCHILL (HOLDINGS) LIMITED (REGISTERED NUMBER: 12747384) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2024 |
21. | RESERVES |
Group |
Retained | Share |
earnings | premium | Totals |
£ | £ | £ |
At 1 April 2023 | (3,599,305 | ) | 5,541,064 | 1,941,759 |
Deficit for the year | (3,614,840 | ) | (3,614,840 | ) |
Liability experience gain/ (loss) - defined benefit pension |
86,000 |
- |
86,000 |
Asset gain/(loss) - defined benefit pension |
117,000 |
- |
117,000 |
Actuarial gain/(loss) |
- defined benefit pension | 147,000 | - | 147,000 |
Deferred tax on actuarial loss | (36,750 | ) | - | (36,750 | ) |
At 31 March 2024 | (6,900,895 | ) | 5,541,064 | (1,359,831 | ) |
Company |
Retained | Share |
earnings | premium | Totals |
£ | £ | £ |
At 1 April 2023 | 5,541,064 |
Deficit for the year | ( |
) | ( |
) |
At 31 March 2024 | ( |
) | 5,403,614 |
22. | EMPLOYEE BENEFIT OBLIGATIONS |
J.J. Churchill Ltd operates a final salary pension scheme. The Scheme, which is a Registered Pension Scheme under Chapter 2 of Part IV of the Finance Act 2004, was closed to new and existing members in October 2020. |
In order to further reduce the pension scheme deficit, the company will pay a further £240,000 during the course of the year ended 31 March 2025. |
J.J. CHURCHILL (HOLDINGS) LIMITED (REGISTERED NUMBER: 12747384) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2024 |
22. | EMPLOYEE BENEFIT OBLIGATIONS - continued |
The amounts recognised in profit or loss are as follows: |
Defined benefit |
pension plans |
2024 | 2023 |
£ | £ |
Current service cost | - | - |
Net interest from net defined benefit asset/liability |
105,000 |
67,000 |
Past service cost | - | - |
105,000 | 67,000 |
Actual return on plan assets | 201,000 | 171,000 |
Changes in the present value of the defined benefit obligation are as follows: |
Defined benefit |
pension plans |
2024 | 2023 |
£ | £ |
Opening defined benefit obligation | 6,476,000 | 8,437,000 |
Interest cost | 306,000 | 238,000 |
Benefits paid | (214,000 | ) | (170,000 | ) |
Experience (gain)/loss | (86,000 | ) | 405,000 |
Remeasurements: |
Actuarial (gains)/losses from changes in demographic assumptions |
(162,000 |
) |
- |
Actuarial (gains)/losses from changes in financial assumptions |
15,000 |
(2,434,000 |
) |
6,335,000 | 6,476,000 |
Changes in the fair value of scheme assets are as follows: |
Defined benefit |
pension plans |
2024 | 2023 |
£ | £ |
Opening fair value of scheme assets | 4,176,000 | 6,039,000 |
Contributions by employer | 220,000 | 125,000 |
Expected return | 201,000 | 171,000 |
Benefits paid | (214,000 | ) | (170,000 | ) |
Asset gain/(loss) | 117,000 | (1,989,000 | ) |
4,500,000 | 4,176,000 |
J.J. CHURCHILL (HOLDINGS) LIMITED (REGISTERED NUMBER: 12747384) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2024 |
22. | EMPLOYEE BENEFIT OBLIGATIONS - continued |
The amounts recognised in other comprehensive income are as follows: |
Defined benefit |
pension plans |
2024 | 2023 |
£ | £ |
Actuarial (gains)/losses from changes in demographic assumptions |
162,000 |
- |
Actuarial (gains)/losses from changes in financial assumptions |
(15,000 |
) |
2,434,000 |
147,000 | 2,434,000 |
The major categories of scheme assets as amounts of total scheme assets are as follows: |
Defined benefit |
pension plans |
2024 | 2023 |
£ | £ |
Absolute return funds | 4,412,000 | 4,144,000 |
Cash | 88,000 | 32,000 |
4,500,000 | 4,176,000 |
Principal actuarial assumptions at the balance sheet date (expressed as weighted averages): |
2024 | 2023 |
Discount rate | 4.80% | 4.80% |
RPI Inflation | 3.25% | 3.30% |
CPI Inflation | 2.55% | 2.50% |
Pension increases in payment (RPI) | 3.75% | 3.75% |
Pension increases in payment (CPI) | 2.05% | 2.00% |
23. | ULTIMATE PARENT COMPANY |
The company's immediate parent company is Churchill Investment LLC, a company incorporated in USA and with a registered office of Corporation Trust Center, 1209 Orange Street, Wilmington, County of New Castle, Delaware 19801. |
There is no ultimate controlling party by virtue of the shareholding. |