Company registration number 01156177 (England and Wales)
CHESTER HALL PRECISION ENGINEERING LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
CHESTER HALL PRECISION ENGINEERING LIMITED
COMPANY INFORMATION
Directors
B. A. Brown
C. A. Brown
D. D. Halsey
P. G. Brown
Secretary
S. L. Hoyle
Company number
01156177
Registered office
24 Old Bond Street
London
United Kingdom
W1S 4AP
Business address
Hurricane Way
Wickford Business Park
Essex
SS11 8YB
Auditor
SCC Chartered Accountants Ltd
17 College Street
Armagh
BT61 9BT
Bankers
Lloyds Bank Plc
47 High Street
Brentwood
Essex
CM14 4RN
CHESTER HALL PRECISION ENGINEERING LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Notes to the financial statements
11 - 22
CHESTER HALL PRECISION ENGINEERING LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 1 -

Introduction

 

The directors present the strategic report for the year ended 31 December 2024.

Business review

The principal activity of the company continued to be that of engineering in the aeronautical industry. The company manufactures parts/components assemblies and sub-assemblies for predominantly the aerospace industry (aerostructures).

 

The company's main customers continue to be tier 1 and tier 2 aerospace companies. The company continues to maintain its excellent on time and quality and delivery record with its customers. The company is operating in a niche market, and the directors believe that the company is in a strong position to benefit from future growth in the aerospace industry, from both current and new customers, and are actively looking to grow the customer database.

 

The current strategy is focused on growth and in key areas such as building strategic partnerships with our key customers, growing the core business, and growing adjacent opportunities.

 

Pre-tax profit reached £2.69 million (2023 - £2.28 million). The balance sheet remains strong with net assets of £25.1 million (2023 - £23.1 million) as the company continues to build on the distributable reserves.

Principal risks and uncertainties

The principal risks and uncertainties facing the Company are described below:

 

Financial risk

The company purchases are subject to changing market prices due to the global economic climate. The company is exposed to foreign exchange risk arising from certain suppliers and customers trading in foreign currencies. The company manages the sales and purchases to reduce this volatility. The company's financial risk management objective is to ensure that enough working capital is generated. This is achieved by careful management of cash balances, which has ensured that no external funding has been required.

Competitive and customer risk

Post covid -19, there have been potential fluctuations in demand for the company’s products. The general commercial aerospace supply chain is under pressure due to multiple factors including persistent shortages, rising costs, and geopolitical instability. This growth is putting pressure on Original Equipment Manufacturers (OEM’s) to ensure their supply chains can keep pace without compromising quality or cost efficiency. The reliance on globalised supply chains, where raw materials and components are sourced from low-cost countries, has made the industry more vulnerable to disruptions. There is also a focus on localising production to increase resilience and reduce reliance on single suppliers.

 

To manage the risk the company continues to strengthen its relationship with all its customers and is actively seeking to secure new business. The company’s reputation for competitive pricing, delivery performance, high quality, good customer focus and flexible ability to quickly invest are key components to mitigating this risk.

 

Geopolitical Instability

Increased global instability, including geopolitical tensions and conflicts, is disrupting supply chains and making it harder to secure reliable sources of raw materials and components. There is still uncertainty around the ongoing conflict in Ukraine. The company has no Russian/Ukrainian or other conflict zone customers or suppliers. Apart from driving significant fuel and energy cost escalation, the effect of sanctions in those conflict zones has been minimal on the company’s ability to maintain production.

 

CHESTER HALL PRECISION ENGINEERING LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -

Skills and Labour

The industry is facing a shortage of skilled labour, making it difficult to find and retain qualified workers. An aging workforce and high turnover rates are further exacerbating the talent shortage problem. To manage the risk the company runs an apprenticeship program in conjunction with the local college and is engaging with the college for other mutually beneficial opportunities.

 

Sustainability/Environmental Challenges

The industry is facing increasing pressure to reduce its carbon footprint and adopt sustainable practices throughout its supply chain. The company is employing sustainable practices to adhere to environmental social and governance. The company is committed to protecting our local environment and minimising the impact of our activities on the wider environment and is now assessing its full scope of 1,2 & 3 CO2 emission categories which are independently assessed and certified.

 

Financial fey performance indicators

KPI

2024

2023

Gross profit margin

18.04%

18.60%

Stock/Inventory days

250 days

208 days

Debtor/Accounts receivable days

25 days

46 days

Creditors/Accounts payable days

82 days

111 days

The company has maintained its margin and overall performance indicators have been reasonable .

 

The company does not have a history of bad debts or provision for doubtful debts.

 

Stock days are in line with production and demand.

 

Trade creditors days have shown slight improvements considering the continued increase in purchase prices.

 

The company remains financially sound and has sufficient resources to settle any liabilities as they fall due in the foreseeable future.

Future developments

The company focus will continue to meet sales targets, strengthening its relationship with all its customers and actively seeking to secure new business.

 

Planned Investments

As the demand for products and services increases, we see potential for future investment in plant and equipment to replace or modernise old plant and to manage potential program increases.

On behalf of the board

C. A. Brown
Director
16 June 2025
CHESTER HALL PRECISION ENGINEERING LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 3 -

The directors present their annual report and financial statements for the year ended 31 December 2024.

Principal activities

The principal activity of the Company continued to be that of engineering in the aeronautical industry. The Company manufactures parts/components assemblies and sub-assemblies for predominantly the aerospace industry (aerostructures). The Company's main customers continue to be tier 1 and tier 2 aerospace companies.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

B. A. Brown
C. A. Brown
D. D. Halsey
P. G. Brown
Results and dividends

The profit for the year, after taxation, amounted to £2m (2023 - £1.7m).

Interim ordinary dividends were paid amounting to £Nil (2023 - £20,000).

 

Final ordinary dividends were paid amounting to £Nil (2023 - £750,000).

Auditor

In accordance with the company's articles, a resolution proposing that SCC Chartered Accountants Ltd be reappointed as auditor of the company will be put at a General Meeting.

Statement of directors' responsibilities

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:

 

 

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.

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.

CHESTER HALL PRECISION ENGINEERING LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 4 -
On behalf of the board
C. A. Brown
Director
16 June 2025
CHESTER HALL PRECISION ENGINEERING LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF CHESTER HALL PRECISION ENGINEERING LIMITED
- 5 -
Opinion

We have audited the financial statements of Chester Hall Precision Engineering Limited (the 'company') for the year ended 31 December 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity 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:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the 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.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual 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:

CHESTER HALL PRECISION ENGINEERING LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF CHESTER HALL PRECISION ENGINEERING LIMITED (CONTINUED)
- 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:

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.

Based on our understanding of the company and industry, we identified the principal risks of non-compliance with laws and regulations related to data protection rules, quality compliance, employment law and health and safety law. We also considered those laws that have a direct impact on the preparation of the financial statements such as the Companies Act 2006 and Financial Reporting Standards.

We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements and determined that the principal risks related to fraudulent financial reporting and management bias in accounting estimates. We communicated the identified laws and regulations throughout the audit team and remained alert to any indications of non-compliance throughout the audit. Audit procedures performed by the auditors included, but were no limited to:

 

Owing to the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

CHESTER HALL PRECISION ENGINEERING LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF CHESTER HALL PRECISION ENGINEERING LIMITED (CONTINUED)
- 7 -

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.

The purpose of our audit work and to whom we owe our responsibilities

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Sean G. Cavanagh
Senior Statutory Auditor
For and on behalf of SCC Chartered Accountants Ltd
16 June 2025
Chartered Accountants
Statutory Auditor
17 College Street
Armagh
BT61 9BT
CHESTER HALL PRECISION ENGINEERING LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
19,945,607
17,731,751
Cost of sales
(16,346,758)
(14,433,300)
Gross profit
3,598,849
3,298,451
Administrative expenses
(1,396,093)
(1,258,875)
Operating profit
4
2,202,756
2,039,576
Interest receivable and similar income
7
492,529
239,522
Interest payable and similar expenses
8
-
0
(6)
Profit before taxation
2,695,285
2,279,092
Tax on profit
9
(664,669)
(541,456)
Profit for the financial year
2,030,616
1,737,636

The profit and loss account has been prepared on the basis that all operations are continuing operations.

CHESTER HALL PRECISION ENGINEERING LIMITED
BALANCE SHEET
AS AT 31 DECEMBER 2024
31 December 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
11
2,870,704
3,249,296
Investments
12
2,454,103
2,405,654
5,324,807
5,654,950
Current assets
Stocks
13
7,765,185
5,635,945
Debtors
14
2,095,429
3,190,651
Cash at bank and in hand
13,122,285
12,180,090
22,982,899
21,006,686
Creditors: amounts falling due within one year
16
(2,964,831)
(3,285,661)
Net current assets
20,018,068
17,721,025
Total assets less current liabilities
25,342,875
23,375,975
Provisions for liabilities
Deferred tax liability
17
207,459
271,175
(207,459)
(271,175)
Net assets
25,135,416
23,104,800
Capital and reserves
Called up share capital
18
20,001
20,001
Profit and loss reserves
25,115,415
23,084,799
Total equity
25,135,416
23,104,800

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 16 June 2025 and are signed on its behalf by:
B. A. Brown
C. A.  Brown
Director
Director
Company registration number 01156177 (England and Wales)
CHESTER HALL PRECISION ENGINEERING LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 10 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 January 2023
20,001
22,117,163
22,137,164
Year ended 31 December 2023:
Profit for the year
-
1,737,636
1,737,636
Dividends
10
-
(770,000)
(770,000)
Balance at 31 December 2023
20,001
23,084,799
23,104,800
Year ended 31 December 2024:
Profit for the year
-
2,030,616
2,030,616
Balance at 31 December 2024
20,001
25,115,415
25,135,416
CHESTER HALL PRECISION ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 11 -
1
Accounting policies
Company information

Chester Hall Precision Engineering Limited is a private company limited by shares incorporated in England and Wales. The registered office is 24 Old Bond Street, London, United Kingdom, W1S 4AP. The principal place of business is Hurricane Way, Wickford Business Park, Essex, SS11 8YB. The nature of the Company's operations and principal activities are engineering in the aeronautical industry.

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 are prepared in compliance with FRS 102, and requires the use of certain critical accounting estimates. The financial statements also requires management to exercise judgement in applying the company's accounting policies.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

 

 

The financial statements of the company are consolidated in the financial statements of Chester Hall Precision Engineering Holdings Limited as at 31 December 2024. These consolidated financial statements are available from its registered office at 24 Old Bond Street, London, W1S 4AP.

1.2
Going concern

The financial statements have been prepared on a going concern basis which forecasts that the company will have sufficient liquidity to meet its financial obligations for a period of more than 12 months from the date of approval of these financial statements. The forecast indicates that, whilst considering reasonable downsides, sufficient funds are expected to be generated within the company to meet the liabilities of the company as they fall due. true

 

Despite the current economic climate, the directors have a positive expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Whilst there is no evidence of potential negative effects on cash flows, the resulting sensitised liquidity and production forecasts continue to support the going concern assumption and the directors are confident they can take sufficient mitigating action to ensure that available funds will be sufficient for the business needs.

 

CHESTER HALL PRECISION ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 12 -
1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods 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.

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.

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:

Freehold land and buildings
2% per annum straight line on buildings. No depreciation on land.
Plant and machinery
10% per annum straight line
Office equipment and computers
25% per annum straight line
Motor vehicles
25% per annum reducing balance

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

Investments in an LLP and an unlimited partnership are remeasured to market value at each balance sheet date. Gains and losses on remeasurement are recognised in the Statement of Comprehensive Income for the period. Where market value cannot be reliably determined, such investments are stated at historic cost less impairment.

 

A profit share from each of these investments is received each year and is recognised in the statement of comprehensive income.

1.6
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.

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 the statement of comprehensive income. Reversals of impairment losses are also recognised in the statement of comprehensive income.

CHESTER HALL PRECISION ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 13 -
1.7
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks and financial institutions. Cash equivalents are highly liquid investments that mature in more than a year from the date of acquisition and are readily convertible to known amounts of cash with insignificant risk of change in value.

1.8
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.

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.

CHESTER HALL PRECISION ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 14 -
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, 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.

 

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.

1.9
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.

1.10
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

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.

CHESTER HALL PRECISION ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 15 -
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.

1.11
Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

1.12
Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

 

The contributions are recognised as an expense in Statement of Comprehensive Income when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Company in independently administered funds.

1.13
Leases

Rentals payable under operating leases are charged to the Statement of Comprehensive Income on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

1.14
Foreign exchange

Monetary assets and liabilities denominated in foreign currencies are translated into sterling at rates

of exchange ruling at the balance sheet date.

 

Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction.

 

Exchange gains and losses are recognised in the Statement of Comprehensive Income.

CHESTER HALL PRECISION ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 16 -
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.

 

 

3
Turnover
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
12,955,856
10,996,599
Rest of Europe
2,789,264
2,770,845
Rest of the world
4,200,487
3,964,307
19,945,607
17,731,751
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses/(gains)
11,176
(3,510)
Fees payable to the company's auditor for the audit of the company's financial statements
14,500
12,750
Depreciation of owned tangible fixed assets
385,292
460,827
Profit on disposal of tangible fixed assets
-
(3,000)
Pensions
79,409
70,975
Operating lease charges
4,918
4,550
5
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2024
2023
Number
Number
Directors
4
4
Office
5
5
Work
65
60
Total
74
69
CHESTER HALL PRECISION ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
5
Employees
(Continued)
- 17 -

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
2,745,830
2,346,299
Social security costs
292,019
244,250
Pension costs
79,409
70,975
3,117,258
2,661,524
6
Directors' remuneration
2024
2023
£
£
Directors' emoluments
409,364
379,600
Company pension contributions to defined contribution schemes
19,996
19,996
Director's BIK
9,675
9,655
439,035
409,251
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
168,570
156,700

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

7
Interest receivable and similar income
2024
2023
£
£
Interest income
Bank Interests
435,172
140,079
Other interest income
8,907
680
Total interest revenue
444,079
140,759
Income from fixed asset investments
Investment Income
48,450
98,763
Total income
492,529
239,522
CHESTER HALL PRECISION ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 18 -
8
Interest payable and similar expenses
2024
2023
£
£
Other interest
-
0
6
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
741,409
417,517
Adjustments in respect of prior periods
(13,024)
(1,697)
Total current tax
728,385
415,820
Deferred tax
Origination and reversal of timing differences
(63,716)
125,636
Total tax charge
664,669
541,456

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
2,695,285
2,279,092
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 23.52%)
673,821
536,065
Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
184
160
Adjustments in respect of prior years
(10,533)
(1,697)
Group relief - prior year
(2,490)
-
0
Capital allowances for year in excess of depreciation
3,687
7,110
Short-term timing differenes leading to a decrease in taxation
-
0
(182)
Taxation charge for the year
664,669
541,456
CHESTER HALL PRECISION ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
9
Taxation
(Continued)
- 19 -

The Company's parent company, Chester Hall Precision Engineering Holdings Limited has surrendered group losses of £5,182 (2023 - £5,020).

 

Factors that may affect future tax charges

 

Since 1 April 2017 there has been a single rate of corporation tax of 19% in place. From 1 April 2023, the main rate of corporation rose to 25% for companies with profits over £250,000. For companies with profits of £50,000 or less, they will pay corporation tax at the small profits rate of 19%. Where a company's profits fall between £50,000 and £250,000, they will pay corporation tax at the main rate reduced by marginal relief. The upper and lower limits will be proportionally reduced for short accounting periods and where they are associated companies.

10
Dividends
2024
2023
£
£
Final paid
-
0
770,000
11
Tangible fixed assets
Freehold land and buildings
Plant and machinery
Office equipment
Motor vehicles
Total
and computers
£
£
£
£
£
Cost
At 1 January 2024
1,833,577
11,103,729
78,175
79,696
13,095,177
Additions
-
0
6,700
-
0
-
0
6,700
Assets written off
-
0
(414,034)
(16,519)
-
0
(430,553)
At 31 December 2024
1,833,577
10,696,395
61,656
79,696
12,671,324
Depreciation and impairment
At 1 January 2024
279,642
9,432,072
66,970
67,197
9,845,881
Depreciation charged in the year
15,072
360,679
6,416
3,125
385,292
Assets written off
-
0
(414,034)
(16,519)
-
0
(430,553)
At 31 December 2024
294,714
9,378,717
56,867
70,322
9,800,620
Carrying amount
At 31 December 2024
1,538,863
1,317,678
4,789
9,374
2,870,704
At 31 December 2023
1,553,935
1,671,657
11,205
12,499
3,249,296

Included in freehold land and buildings is freehold land of £1,080,000 (2023 - £1,080,000) which has not been depreciated.

CHESTER HALL PRECISION ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 20 -
12
Fixed asset investments
2024
2023
£
£
Unlisted investments
2,454,103
2,405,654
Movements in fixed asset investments
Investments
£
Cost or valuation
At 1 January 2024
2,405,654
Additions
48,449
At 31 December 2024
2,454,103
Carrying amount
At 31 December 2024
2,454,103
At 31 December 2023
2,405,654
13
Stocks
2024
2023
£
£
Raw materials and consumables
3,487,354
2,278,504
Work in progress
2,789,550
1,720,475
Finished goods
1,488,281
1,636,966
7,765,185
5,635,945
14
Debtors
2024
2023
£
£
Trade debtors
1,387,607
2,212,426
Other debtors
627,578
886,555
Prepayments and accrued income
80,244
91,670
2,095,429
3,190,651
15
Cash and cash equivalents
2024
2023
£
£
Cash at bank and in hand
13,122,285
12,180,091

 

CHESTER HALL PRECISION ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 21 -
16
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
2,559,161
3,002,504
Amounts owed to group undertakings
14,474
21,000
Corporation tax
187,068
73,761
Other taxation and social security
81,338
59,726
Other creditors
2,145
1,613
Accruals and deferred income
120,645
127,057
2,964,831
3,285,661
17
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
207,689
271,348
Unpaid pension contributions
(230)
(173)
207,459
271,175
2024
Movements in the year:
£
Liability at 1 January 2024
271,175
Credit to profit or loss
(63,716)
Liability at 31 December 2024
207,459

The deferred tax liability set out above is expected to reverse within [12 months] and relates to accelerated capital allowances that are expected to mature within the same period.

18
Share capital
2024
2023
Ordinary share capital
£
£
Issued and fully paid
20,000 ordinary shares of £1 each
20,000
20,000
1 Ordinary Z shares of £1 each
1
1
20,001
20,001
CHESTER HALL PRECISION ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
18
Share capital
(Continued)
- 22 -

Ordinary shares carry voting rights, can receive dividends and can participate in any distribution on winding up of the Company. Z shares have no voting rights and only has rights to dividends when decided by members in accordance with the Company's articles. On the event of a winding up of the Company, a Z share carries the right of repayment at par value only unless the return to holders of ordinary shares exceeds an agreed amount per ordinary share, in which case all shares carry an equal right.

 

19
Reserves

Profit and loss account

 

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

20
Pension commitments

The company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £79,409 (2023 - £70,975). The pension creditor at the year end amounted to £2,145 (2023 - £1,612).

21
Commitments under operating leases

At 31 December 2024 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2024
2023
£
£
Within one year
11,871
8,185
Between two and five years
27,754
13,145
39,625
21,330

Operating lease expenditure in the current year totalled £4,918 (2023 - £4,550).

22
Controlling party

The immediate and ultimate parent Company is Chester Hall Precision Engineering Holdings Limited, a Company incorporated in England and Wales. Copies of its consolidated group accounts, which include the results of Chester Hall Precision Engineering Limited, are available from 24 Old Bond Street, London, W1S 4AP.

 

The company is controlled by the director Mr B. A. Brown.

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