Company registration number 01898401 (England and Wales)
Chapelton Board Sales Ltd
Annual Report And Financial Statements
For The Year Ended 31 August 2024
Chapelton Board Sales Ltd
Company Information
Directors
Mr N A Skelton
Mr G M Skelton
Secretary
Mrs A Skelton
Company number
01898401
Registered office
6-10 Forstal Road
Aylesford
Kent
ME20 7AU
Auditor
Loucas
The Carriage House
Mill Street
Maidstone
Kent
ME15 6YE
Business address
6-10 Forstal Road
Aylesford
Kent
ME20 7AU
Bankers
Barclays Bank plc
1 Churchill Place
London
E14 5HP
Chapelton Board Sales Ltd
Contents
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Profit and loss account
8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Statement of cash flows
12
Notes to the financial statements
13 - 25
Chapelton Board Sales Ltd
Strategic Report
For The Year Ended 31 August 2024
Page 1
The directors present the strategic report for the year ended 31 August 2024.
Review of the business
Revenue
During the reporting period we experienced a decline in overall turnover. This reduction is primarily attributed to the decreasing market prices, reflecting broader market trends. Despite this, the company managed to navigate these challenging conditions effectively.
Profitability
Our profitability has seen a notable increase over the period. This improvement can be credited to our strategic market positioning and the optimized use of available supply. By focusing on these areas, we have managed to enhance our profit margins despite the drop in turnover.
Cash Flow
The company's cash flow has remained robust throughout the reporting period. We have maintained a positive cash position, which is indicative of our strong liquidity management and operational efficiency. This has provided us with the financial stability required to continue our operations seamlessly.
Market Share
Despite increased competition we have maintained our position in a very tough market and have managed to move into some new product areas. We have worked hard at developing new products that should see sustained growth over the coming years.
Investment
We continue to invest in technology to ensure that our security and information is best in class and train our staff to ensure that we can meet new and changing challenges.
Outlook
The outlook for 2025 onwards is very positive, with numerous opportunities for growth and innovation. Figures for Q4 2024 and Q1 2025 are very promising and a vast improvement on the previous period However, it will be important to stay agile and responsive to market changes, competitive pressures, and economic uncertainties. We will do this by focusing on strategic partnerships, innovation, and effective cost management, allowing the company to position itself for sustained success.
Principal risks and uncertainties
The directors consider proper risk management to be crucial to the company's future success and give a high priority to ensuring that adequate systems and structure are in place to measure, analyse and limit exposure to risk. The directors have established key procedures to ensure that internal controls are effective and are commensurate with a company of this size. A key control is the day to day supervision of the business by the directors. Other internal controls continue to be developed.
Chapelton Board Sales Ltd
Strategic Report (Continued)
For The Year Ended 31 August 2024
Page 2
Key performance indicators
In the light of market conditions, the key performance indicators use by the company are turnover, gross profit percentage, net profit percentage and EBITDA.
2024
2023
Turnover
10,130,054
12,772,594
Gross profit percentage
11.97%
10.78%
Net profit percentage
1.78%
1.67%
EBITDA
322,993
378,970
Mr G M Skelton
Director
9 April 2025
Chapelton Board Sales Ltd
Directors' Report
For The Year Ended 31 August 2024
Page 3
The directors present their annual report and financial statements for the year ended 31 August 2024.
Principal activities
The principal activity of the company continued to be that of wholesale paper and board agents.
Results and dividends
The results for the year are set out on page 8.
Ordinary dividends were paid amounting to £299,170. The directors do not recommend payment of a further dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr N A Skelton
Mr G M Skelton
Auditor
The auditor, Loucas, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
On behalf of the board
Mr G M Skelton
Director
9 April 2025
Chapelton Board Sales Ltd
Directors' Responsibilities Statement
For The Year Ended 31 August 2024
Page 4
The directors are responsible for preparing the annual report 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 of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Chapelton Board Sales Ltd
Independent Auditor's Report
To The Member Of Chapelton Board Sales Ltd
Page 5
Opinion
We have audited the financial statements of Chapelton Board Sales Ltd (the 'company') for the year ended 31 August 2024 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 31 August 2024 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual 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.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
Chapelton Board Sales Ltd
Independent Auditor's Report
To The Member Of Chapelton Board Sales Ltd (Continued)
Page 6
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
As part of designing our audit, we determined materiality and assessed the risks of material misstatement in the financial statements, including how fraud may occur by enquiring of management's own consideration of fraud. In particular we assessed whether judgements made in making accounting estimates are indicative of potential bias, and evaluated the business rationale of significant transactions outside the normal course of business. We also addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and other adjustments. We also considered potential financial or other pressures, opportunities and motivations for fraud. As part of discussions with management we identified the internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations and how management monitor these processes.
We obtained an understanding of the legal and regulatory environment applicable to the company and established the most relevant laws and regulations are FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland" (United Kingdom Generally Accepted Accounting Practice), Companies Act 2006, direct and indirect taxation legislation in the United Kingdom, and operational laws and regulations including health and safety, employment law, anti-money laundering, anti-bribery and corruption, and GDPR rules.
Additionally we also identified the Forest Strewardship Council (FSE) and the Programme for the Endoresement of Foresct Certification (PEFC) as being regulations that could reasonably be expected to have a material effect on the financial statements. This has been identified through our experience of the sector in which the entity operates, and through discussions with the directors and management.
We considered the extent of compliance with these laws and regulations as part of our procedures on the related financial statement lines. We made enquiries of management with regards to compliance with the above laws and regulations and corroborated any necessary evidence, for example, review and inspection of legal invoices and correspondence with the relevant authorities and the entity's solicitors. With regards to FSE and PEFC we also reviewed inspection documents from an external consultant.
Chapelton Board Sales Ltd
Independent Auditor's Report
To The Member Of Chapelton Board Sales Ltd (Continued)
Page 7
Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that 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, misrepresentation or through collusion. There are inherent limitations in the audit procedures performed as non-compliance with laws and regulations may not necessarily be reflected in transactions reported in the financial statements, and therefore we may be less likely to become aware of it. Management and those charged with governance of the entity have the primary responsibility for the prevention and detection of fraud.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
This report is made solely to the company's member 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 member those matters we are required to state to the member in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's member, for our audit work, for this report, or for the opinions we have formed.
Mr Athos Louca FCCA, ICPAC
Senior Statutory Auditor
For and on behalf of Loucas
9 April 2025
Chartered Certified Accountants
Statutory Auditor
The Carriage House
Mill Street
Maidstone
Kent
ME15 6YE
Chapelton Board Sales Ltd
Profit And Loss Account
For The Year Ended 31 August 2024
Page 8
2024
2023
Notes
£
£
Turnover
3
10,130,054
12,772,594
Cost of sales
(8,917,654)
(11,395,850)
Gross profit
1,212,400
1,376,744
Administrative expenses
(899,234)
(1,018,929)
Other operating income
5,000
Operating profit
4
313,166
362,815
Interest receivable and similar income
7
2,046
Interest payable and similar expenses
8
(56,816)
(85,826)
Amounts written off investments
9
(78,000)
(63,193)
Profit before taxation
180,396
213,796
Tax on profit
10
(69,207)
(66,077)
Profit for the financial year
111,189
147,719
The profit and loss account has been prepared on the basis that all operations are continuing operations.
Chapelton Board Sales Ltd
Statement Of Comprehensive Income
For The Year Ended 31 August 2024
Page 9
2024
2023
£
£
Profit for the year
111,189
147,719
Other comprehensive income
Tax relating to other comprehensive income
(11,003)
Total comprehensive income for the year
111,189
136,716
Chapelton Board Sales Ltd
Balance Sheet
As At 31 August 2024
Page 10
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
13
337,552
345,769
Investments
14
2,000
80,000
339,552
425,769
Current assets
Stocks
16
575,678
1,976,546
Debtors falling due after more than one year
17
178,000
Debtors falling due within one year
17
2,299,483
2,817,249
Cash at bank and in hand
936,206
556,833
3,989,367
5,350,628
Creditors: amounts falling due within one year
18
(1,660,321)
(2,919,818)
Net current assets
2,329,046
2,430,810
Total assets less current liabilities
2,668,598
2,856,579
Provisions for liabilities
Deferred tax liability
20
45,847
45,847
(45,847)
(45,847)
Net assets
2,622,751
2,810,732
Capital and reserves
Called up share capital
22
20,905
20,905
Share premium account
15
15
Revaluation reserve
262,175
262,175
Capital redemption reserve
12,895
12,895
Profit and loss reserves
2,326,761
2,514,742
Total equity
2,622,751
2,810,732
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The financial statements were approved by the board of directors and authorised for issue on 9 April 2025 and are signed on its behalf by:
Mr G M Skelton
Director
Company registration number 01898401 (England and Wales)
Chapelton Board Sales Ltd
Statement Of Changes In Equity
For The Year Ended 31 August 2024
Page 11
Share capital
Share premium account
Revaluation reserve
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
£
Balance at 1 September 2022
20,905
15
273,178
12,895
2,596,193
2,903,186
Year ended 31 August 2023:
Profit for the year
-
-
-
-
147,719
147,719
Other comprehensive income:
Tax relating to other comprehensive income
-
-
(11,003)
-
(11,003)
Total comprehensive income for the year
-
-
(11,003)
-
147,719
136,716
Dividends
11
-
-
-
-
(229,170)
(229,170)
Balance at 31 August 2023
20,905
15
262,175
12,895
2,514,742
2,810,732
Year ended 31 August 2024:
Profit and total comprehensive income for the year
-
-
-
-
111,189
111,189
Dividends
11
-
-
-
-
(299,170)
(299,170)
Balance at 31 August 2024
20,905
15
262,175
12,895
2,326,761
2,622,751
Chapelton Board Sales Ltd
Statement Of Cash Flows
For The Year Ended 31 August 2024
Page 12
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
25
1,870,676
652,166
Interest paid
(56,816)
(85,826)
Income taxes paid
(19,999)
(444,512)
Net cash inflow from operating activities
1,793,861
121,828
Investing activities
Purchase of tangible fixed assets
(1,610)
Repayment of loans
2,000
Interest received
2,046
Net cash generated from investing activities
436
2,000
Financing activities
Repayment of bank loans
(1,115,754)
(289,025)
Dividends paid
(299,170)
(229,170)
Net cash used in financing activities
(1,414,924)
(518,195)
Net increase/(decrease) in cash and cash equivalents
379,373
(394,367)
Cash and cash equivalents at beginning of year
556,833
951,200
Cash and cash equivalents at end of year
936,206
556,833
Chapelton Board Sales Ltd
Notes To The Financial Statements
For The Year Ended 31 August 2024
Page 13
1
Accounting policies
Company information
Chapelton Board Sales Ltd is a private company limited by shares incorporated in England and Wales. The registered office is 6-10 Forstal Road, Aylesford, Kent, ME20 7AU.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties. The principal accounting policies adopted are set out below.
The company has taken advantage of the exemption under section 400 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group.
Chapelton Board Sales Ltd is a wholly owned subsidiary of Chapelton Group Ltd and the results of Chapelton Board Sales Ltd are included in the consolidated financial statements of Chapelton Group Ltd which are available from 6-10 Forstal Road, Aylesford, Kent, ME20 7AU.
1.2
Going concern
Atruet 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. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Commissions are recognised when they become receivable. This is considered to be when the customer is invoiced.
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Chapelton Board Sales Ltd
Notes To The Financial Statements (Continued)
For The Year Ended 31 August 2024
1
Accounting policies
(Continued)
Page 14
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Buildings
2% straight line
Fixtures and fittings
20% and 25% reducing balance
Computers
25% straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.5
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
1.6
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.7
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
Chapelton Board Sales Ltd
Notes To The Financial Statements (Continued)
For The Year Ended 31 August 2024
1
Accounting policies
(Continued)
Page 15
Cost is calculated using the first in first out method.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.8
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.9
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company 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 debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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. Financial assets classified as receivable within one year are not amortised.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Chapelton Board Sales Ltd
Notes To The Financial Statements (Continued)
For The Year Ended 31 August 2024
1
Accounting policies
(Continued)
Page 16
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of 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 company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.10
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.11
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Chapelton Board Sales Ltd
Notes To The Financial Statements (Continued)
For The Year Ended 31 August 2024
1
Accounting policies
(Continued)
Page 17
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.12
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.14
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Chapelton Board Sales Ltd
Notes To The Financial Statements (Continued)
For The Year Ended 31 August 2024
2
Judgements and key sources of estimation uncertainty
(Continued)
Page 18
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Debtors
The provision for impairment of receivables requires that management closely review the outstanding trade receivables, also considering ageing, payment history and credit risk coverage. An assessment is made on an individual basis with each customer's balance being reviewed closely.
Stock provision
Management reviews the inventory balances to determine if inventories can be sold at amounts greater than or equal to their carrying amounts plus costs to sell. The review is broken down into product groups to allow clearer identification of slow moving inventories, obsolete inventories and partially or fully damaged inventories. The identification process includes historical performance of the inventory along with current operational plans. Damaged stock is written off or provided for depending on the extent of damage. Management makes an allowance for any items considered to be obsolete. The allowance represents the difference between the cost of inventory and its estimated net realisable value.
3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Sale of goods
9,715,508
12,360,282
Commissions received
414,546
412,312
10,130,054
12,772,594
2024
2023
£
£
Other revenue
Interest income
2,046
-
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange (gains)/losses
(2,754)
2,113
Fees payable to the company's auditor for the audit of the company's financial statements
13,556
12,029
Depreciation of owned tangible fixed assets
9,827
16,155
Chapelton Board Sales Ltd
Notes To The Financial Statements (Continued)
For The Year Ended 31 August 2024
Page 19
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Management
2
2
Sales
8
7
Accounts
2
2
Total
12
11
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
387,024
366,965
Social security costs
38,849
37,400
Pension costs
67,557
36,073
493,430
440,438
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
9,096
9,096
Company pension contributions to defined contribution schemes
22,300
11,527
31,396
20,623
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Other interest income
2,046
8
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
56,816
85,826
Chapelton Board Sales Ltd
Notes To The Financial Statements (Continued)
For The Year Ended 31 August 2024
Page 20
9
Amounts written off investments
2024
2023
£
£
Other gains and losses
(78,000)
(63,193)
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
69,207
66,077
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Profit before taxation
180,396
213,796
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
45,099
40,621
Tax effect of expenses that are not deductible in determining taxable profit
24,683
17,755
Effect of change in corporation tax rate
7,724
Group relief
(575)
(23)
Taxation charge for the year
69,207
66,077
In addition to the amount charged to the profit and loss account, the following amounts relating to tax have been recognised directly in other comprehensive income:
2024
2023
£
£
Deferred tax arising on:
Revaluation of property
-
11,003
11
Dividends
2024
2023
£
£
Final paid
299,170
229,170
Chapelton Board Sales Ltd
Notes To The Financial Statements (Continued)
For The Year Ended 31 August 2024
Page 21
12
Impairments
Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:
2024
2023
Notes
£
£
In respect of:
Fixed asset investments
14
78,000
63,193
Recognised in:
Amounts written off investments
78,000
63,193
The impairment losses in respect of financial assets are recognised in other gains and losses in the profit and loss account.
13
Tangible fixed assets
Buildings
Fixtures and fittings
Computers
Total
£
£
£
£
Cost or valuation
At 1 September 2023
400,000
49,467
179,112
628,579
Additions
1,610
1,610
At 31 August 2024
400,000
49,467
180,722
630,189
Depreciation and impairment
At 1 September 2023
56,000
49,232
177,578
282,810
Depreciation charged in the year
8,000
59
1,768
9,827
At 31 August 2024
64,000
49,291
179,346
292,637
Carrying amount
At 31 August 2024
336,000
176
1,376
337,552
At 31 August 2023
344,000
235
1,534
345,769
Land and buildings are valued at fair value by the directors at the balance sheet date.
Chapelton Board Sales Ltd
Notes To The Financial Statements (Continued)
For The Year Ended 31 August 2024
13
Tangible fixed assets
(Continued)
Page 22
Land and buildings are carried at valuation. If land and buildings were measured using the cost model, the carrying amounts would have been:
Land and Buildings
2024
2023
£
£
Cost
111,354
111,354
Accumulated depreciation
(17,817)
(15,590)
Carrying value
93,537
95,764
14
Fixed asset investments
2024
2023
Notes
£
£
Investments in subsidiaries
15
2,000
80,000
Movements in fixed asset investments
Shares in subsidiaries
£
Cost or valuation
At 1 September 2023
80,000
Valuation changes
(78,000)
At 31 August 2024
2,000
Carrying amount
At 31 August 2024
2,000
At 31 August 2023
80,000
15
Subsidiaries
Details of the company's subsidiaries at 31 August 2024 are as follows:
Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
J & S Uwins Ltd
6-10 Forstal Road, Aylesford, Kent, ME20 7AU
Consultancy
Ordinary
100.00
Chapelton Board Sales Ltd
Notes To The Financial Statements (Continued)
For The Year Ended 31 August 2024
Page 23
16
Stocks
2024
2023
£
£
Finished goods and goods for resale
575,678
1,976,546
17
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
1,912,797
2,687,928
Corporation tax recoverable
13,923
Amounts owed by group undertakings
252,460
2,788
Prepayments and accrued income
134,226
112,610
2,299,483
2,817,249
2024
2023
Amounts falling due after more than one year:
£
£
Other debtors
178,000
Total debtors
2,477,483
2,817,249
18
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans
19
1,115,754
Trade creditors
1,280,384
1,465,372
Corporation tax
35,285
Other taxation and social security
300,089
271,763
Other creditors
159
Accruals and deferred income
44,563
66,770
1,660,321
2,919,818
The bank loan is secured by a fixed and floating charge over the assets of Chapelton Board Sales Ltd.
Chapelton Board Sales Ltd
Notes To The Financial Statements (Continued)
For The Year Ended 31 August 2024
Page 24
19
Loans and overdrafts
2024
2023
£
£
Bank loans
1,115,754
Payable within one year
1,115,754
The bank loan is secured by a fixed and floating charge over the assets of Chapelton Board Sales Ltd.
The company operates a Trade Cycle Loan facility with an interest rate of 1.95% above the Bank of England base rate. The loan is repayable on demand.
20
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2024
2023
Balances:
£
£
Revaluations
45,847
45,847
There were no deferred tax movements in the year.
21
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
67,557
36,073
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
22
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
20,905
20,905
20,905
20,905
Chapelton Board Sales Ltd
Notes To The Financial Statements (Continued)
For The Year Ended 31 August 2024
Page 25
23
Related party transactions
The following amounts were outstanding at the reporting end date:
2024
2023
Amounts due from related parties
£
£
Other related parties
78,000
-
Amounts owed are payable on demand.
24
Ultimate controlling party
The parent company of Chapelton Board Sales Ltd is Chapelton Group Ltd and its registered office is 6-10 Forstal Road, Aylesford, Kent, ME20 7AU. A copy of the group's consolidated financial statements can be obtained from their registered office.
25
Cash generated from operations
2024
2023
£
£
Profit for the year after tax
111,189
147,719
Adjustments for:
Taxation charged
69,207
66,077
Finance costs
56,816
85,826
Investment income
(2,046)
Depreciation and impairment of tangible fixed assets
9,827
16,155
Other gains and losses
78,000
63,193
Movements in working capital:
Decrease/(increase) in stocks
1,400,868
(530,502)
Decrease in debtors
325,843
2,500,934
Decrease in creditors
(179,028)
(1,697,236)
Cash generated from operations
1,870,676
652,166
26
Analysis of changes in net funds/(debt)
1 September 2023
Cash flows
31 August 2024
£
£
£
Cash at bank and in hand
556,833
379,373
936,206
Borrowings excluding overdrafts
(1,115,754)
1,115,754
-
(558,921)
1,495,127
936,206
2024-08-312023-09-01falsefalsefalseCCH SoftwareCCH Accounts Production 2025.100Mr N A SkeltonMr G M SkeltonMrs A Skelton018984012023-09-012024-08-3101898401bus:Director12023-09-012024-08-3101898401bus:Director22023-09-012024-08-3101898401bus:CompanySecretary12023-09-012024-08-3101898401bus:RegisteredOffice2023-09-012024-08-3101898401bus:Agent12023-09-012024-08-31018984012024-08-31018984012022-09-012023-08-3101898401core:RetainedEarningsAccumulatedLosses2022-09-012023-08-3101898401core:RetainedEarningsAccumulatedLosses2023-09-012024-08-3101898401core:RevaluationReserve2022-09-012023-08-3101898401core:RevenueReservesInvestmentFundsOnly2022-09-012023-08-31018984012023-08-3101898401core:LandBuildingscore:OwnedOrFreeholdAssets2024-08-3101898401core:FurnitureFittings2024-08-3101898401core:ComputerEquipment2024-08-3101898401core:LandBuildingscore:OwnedOrFreeholdAssets2023-08-3101898401core:FurnitureFittings2023-08-3101898401core:ComputerEquipment2023-08-3101898401core:Non-currentFinancialInstrumentscore:AfterOneYear2024-08-3101898401core:Non-currentFinancialInstrumentscore:AfterOneYear2023-08-3101898401core:CurrentFinancialInstrumentscore:WithinOneYear2024-08-3101898401core:CurrentFinancialInstrumentscore:WithinOneYear2023-08-3101898401core:CurrentFinancialInstruments2024-08-3101898401core:CurrentFinancialInstruments2023-08-3101898401core:ShareCapital2024-08-3101898401core:ShareCapital2023-08-3101898401core:SharePremium2024-08-3101898401core:SharePremium2023-08-3101898401core:RevaluationReserve2024-08-3101898401core:RevaluationReserve2023-08-3101898401core:CapitalRedemptionReserve2024-08-3101898401core:CapitalRedemptionReserve2023-08-3101898401core:RetainedEarningsAccumulatedLosses2024-08-3101898401core:RetainedEarningsAccumulatedLosses2023-08-3101898401core:ShareCapital2022-08-3101898401core:SharePremium2022-08-3101898401core:RevaluationReserve2022-08-3101898401core:CapitalRedemptionReserve2022-08-3101898401core:RetainedEarningsAccumulatedLosses2022-08-3101898401core:ShareCapitalOrdinaryShareClass12024-08-3101898401core:ShareCapitalOrdinaryShareClass12023-08-310189840112023-09-012024-08-310189840112022-09-012023-08-31018984012023-08-31018984012022-08-3101898401core:LandBuildingscore:OwnedOrFreeholdAssets2023-09-012024-08-3101898401core:FurnitureFittings2023-09-012024-08-3101898401core:ComputerEquipment2023-09-012024-08-3101898401core:UKTax2023-09-012024-08-3101898401core:UKTax2022-09-012023-08-3101898401core:LandBuildingscore:OwnedOrFreeholdAssets2023-08-3101898401core:FurnitureFittings2023-08-3101898401core:ComputerEquipment2023-08-3101898401core:Non-currentFinancialInstruments2024-08-3101898401core:Non-currentFinancialInstruments2023-08-3101898401core:Subsidiary12023-09-012024-08-3101898401core:Subsidiary112023-09-012024-08-3101898401bus:OrdinaryShareClass12023-09-012024-08-3101898401bus:OrdinaryShareClass12024-08-3101898401bus:OrdinaryShareClass12023-08-3101898401bus:PrivateLimitedCompanyLtd2023-09-012024-08-3101898401bus:FRS1022023-09-012024-08-3101898401bus:Audited2023-09-012024-08-3101898401bus:FullAccounts2023-09-012024-08-31xbrli:purexbrli:sharesiso4217:GBP