Company No:
Contents
DIRECTOR | Mr J Chapman (Resigned 31 July 2024) |
Mr I Rooney |
REGISTERED OFFICE | C/O Pm+M First Floor |
Sandringham House | |
Hollins Brook Park | |
Pilsworth Road | |
Bury | |
BL9 8RN | |
United Kingdom |
COMPANY NUMBER | 04785274 (England and Wales) |
CHARTERED ACCOUNTANTS | PM+M Solutions for Business LLP |
New Century House | |
Greenbank Technology Park | |
Challenge Way | |
Blackburn | |
BB1 5QB |
The director presents this annual report and the unaudited financial statements of the Company for the financial period ended 31 July 2024.
PRINCIPAL ACTIVITIES
Business Performance
The financial period to 31 July 2024 has presented significant challenges due to the regulatory restrictions introduced by the industry regulator, OFGEM in February 2023. These restrictions, designed to protect vulnerable utility customers, have placed limitations on pre-disconnection and warrant-related activities across the sector. As a result, the company has faced a reduction in work volumes, directly impacting its core operations and revenues.
Despite these challenges, the company has prioritised resilience and long-term readiness. A strategic decision was made to retain staff throughout the period of reduced activity, ensuring that the company maintains its capacity to scale operations and meet demand efficiently when the restrictions are lifted. This commitment reflects the company’s focus on sustaining a skilled and experienced workforce, which is integral to delivering high-quality services.
Additionally, the company has made considerable investments in software and IT systems during this period. These advancements aim to enhance operational efficiency, streamline workflows, and enable more effective service delivery in the future. By leveraging technology, the company has positioned itself to operate more cost-effectively and adapt quickly to the evolving needs of its clients.
While overall profitability declined due to the regulatory restrictions and reduced activity levels, strategic cost management and investments in operational improvements have ensured the business remains stable. Furthermore, the company’s continued engagement with utility clients has reinforced its reputation as a reliable partner during challenging times.
Business Outlook
The regulatory restrictions have been lifted early in the 2025 period and the company remains cautiously optimistic about the future, recognising both the challenges and opportunities in the current regulatory environment. The company’s strategic decisions during this period have positioned it to capitalise on opportunities as they arise.
Looking ahead, the company’s key priorities include:
• Deploying Retained Workforce: Leveraging the retained and experienced workforce to rapidly scale operations and deliver high-quality services as restrictions ease, ensuring a seamless response to client needs.
• Maximising IT Investments: Harnessing the benefits of newly developed software and IT systems to drive efficiencies, reduce costs, and enhance service delivery.
• Expanding Service Offerings: Broadening the range of services provided to utility clients, to diversify revenue streams.
• Adapting to Regulatory Changes: Maintaining readiness to adjust operations swiftly in response to any changes in OFGEM’s policies and preparing for a return to pre-disconnection and warrant work at scale.
The company is confident that its proactive approach during this challenging period will yield long-term benefits. By retaining its workforce, investing in technology, and building operational resilience, the business is well-equipped to support its clients effectively and seize new opportunities as they emerge providing a strong foundation for future growth and success.
DIRECTOR
The directors, who served during the financial period and to the date of this report except as noted, were as follows:
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(Resigned 31 July 2024) |
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SMALL COMPANIES EXEMPTION
Approved and signed by:
Mr I Rooney
Director |
Note | 31.07.2024 | 31.01.2023 | ||
£ | £ | |||
Fixed assets | ||||
Intangible assets | 3 |
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Tangible assets | 4 |
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422,516 | 366,486 | |||
Current assets | ||||
Stocks |
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Debtors | 5 |
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Cash at bank and in hand |
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727,660 | 618,430 | |||
Creditors: amounts falling due within one year | 6 | (
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Net current liabilities | (670,715) | (79,455) | ||
Total assets less current liabilities | (248,199) | 287,031 | ||
Creditors: amounts falling due after more than one year | 7 | (
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Provision for liabilities |
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Net (liabilities)/assets | (
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Capital and reserves | ||||
Called-up share capital |
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Total shareholders' (deficit)/funds | (
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Director's responsibilities:
These financial statements have been prepared in accordance with the provisions of FRS 102 Section 1A – small entities. The financial statements of Churchill Recovery Solutions Ltd. (registered number:
Mr I Rooney
Director |
The principal accounting policies are summarised below. They have all been applied consistently throughout the financial period and to the preceding financial year, unless otherwise stated.
Churchill Recovery Solutions Ltd. (the Company) is a private company, limited by shares, incorporated in the United Kingdom under the Companies Act 2006 and is registered in England and Wales. The address of the Company's registered office is C/O Pm+M First Floor, Sandringham House, , Hollins Brook Park, Pilsworth Road, Bury, BL9 8RN, United Kingdom.
The financial statements have been prepared under the historical cost convention, modified to include certain items at fair value, and in accordance with Section 1A of Financial Reporting Standard 102 (FRS 102) ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ issued by the Financial Reporting Council and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime.
The financial statements are presented in pounds sterling which is the functional currency of the Company and rounded to the nearest £.
The director has assessed the Balance Sheet, likely future cash flows arising from the pipeline of works and the available finance facilities at the date of approving these financial statements. The director has a reasonable expectation that the Company has adequate resources to continue in operational existence and to meet its financial obligations as they fall due for at least 12 months from the date of signing these financial statements. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.
The financial statements are presented for a period longer than one year. As such, comparative amounts presented in the financial statements (including the related notes) are not entirely comparable.
Turnover is stated net of VAT and trade discounts and is recognised when the significant risks and rewards are considered to have been transferred to the buyer. Turnover from the supply of services represents the value of services provided under contracts to the extent that there is a right to consideration and is recorded at the fair value of the consideration received or receivable. Where a contract has only been partially completed at the Balance Sheet date turnover represents the fair value of the service provided to date based on the stage of completion of the contract activity at the Balance Sheet date. Where payments are received from customers in advance of services provided, the amounts are recorded as deferred income and included as part of creditors due within one year.
Short term benefits
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Defined contribution schemes
The Company operates a defined contribution scheme. The amount charged to the Statement of Income and Retained Earnings in respect of pension costs and other post-retirement benefits is the contributions payable in the financial period. Differences between contributions payable in the financial period and contributions actually paid are included as either accruals or prepayments in the Balance Sheet.
Current tax is provided at amounts expected to be paid (or recoverable) using the tax rates and laws that have been enacted or substantively enacted at the Balance Sheet date.
Deferred tax
Deferred tax arises as a result of including items of income and expenditure in taxation computations in periods different from those in which they are included in the Company's financial statements. Deferred tax is provided in full on timing differences which result in an obligation to pay more or less tax at a future date, at the average tax rates that are expected to apply when the timing differences reverse, based on current tax rates and laws. Deferred tax assets and liabilities are not discounted.
The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.
Amortisation is not applied to assets in the developmental phase.
Development costs |
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All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.
Vehicles |
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Office equipment |
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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.
Assets, other than those measured at fair value, are assessed for indicators of impairment at each Balance Sheet date. If there is objective evidence of impairment, an impairment loss is recognised in the Statement of Income and Retained Earnings as described below.
Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the instrument.
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.
Financial assets and liabilities are only offset in the Balance Sheet when, and only when there exists a legally enforceable right to set off the recognised amounts and the Company intends either 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.
Financial assets are derecognised when and only when the contractual rights to the cash flows from the financial asset expire or are settled, or the Company transfers to another party substantially all of the risks and rewards of ownership of the financial asset, or the Company, despite having retained some, but not all, significant risks and rewards of ownership, has transferred control of the asset to another party.
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.
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
Equity instruments
Equity instruments issued by the Company are recorded at the fair value of cash or other resources received or receivable, net of direct issue costs. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the Company.
Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.
Period from 01.02.2023 to 31.07.2024 |
Year ended 31.01.2023 |
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Number | Number | ||
Monthly average number of persons employed by the Company during the period, including the director |
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Development costs | Total | ||
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Cost | |||
At 01 February 2023 |
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Additions |
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At 31 July 2024 |
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Net book value | |||
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At 31 January 2023 |
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Vehicles | Office equipment | Total | |||
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Additions |
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Disposals | (
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Charge for the financial period |
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Disposals | (
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At 31 July 2024 |
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Net book value | |||||
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At 31 January 2023 |
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31.07.2024 | 31.01.2023 | ||
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Trade debtors |
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Deferred tax asset |
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Other debtors |
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31.07.2024 | 31.01.2023 | ||
£ | £ | ||
Bank loans |
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Trade creditors |
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Other taxation and social security |
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Other creditors |
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31.07.2024 | 31.01.2023 | ||
£ | £ | ||
Bank loans |
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Other creditors |
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Commitments
31.07.2024 | 31.01.2023 | ||
£ | £ | ||
Total future minimum lease payments under non-cancellable operating lease |
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