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Registered number:
FOR THE YEAR ENDED 31 DECEMBER 2024
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ARTHUR CHATWIN LIMITED
COMPANY INFORMATION
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ARTHUR CHATWIN LIMITED
CONTENTS
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ARTHUR CHATWIN LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
The directors present their strategic report of the year ended 31st December 2024.
Arthur Chatwin Limited has operated as a family business since 1913 under the trading name “Chatwins”. A central bakery and Head Office in Nantwich services the retail stores and wholesale customers in Cheshire, Staffordshire, North Wales and Merseyside.
During 2024 turnover increased by 4% to £14.2m. There were no new store openings during the year, and we closed our Chester City Centre store at the end of 2024 when the lease expired. Following this closure the business now has 23 retail outlets. The performance of the company during the year has produced encouraging results. As a result of controlling costs, operating profit improved by £292,091 to £329,093 this year. During the year we invested £309,732 in new capital expenditure across the company.
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ARTHUR CHATWIN LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
Liquidity risk:
The company seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs by closely managing cashflow projections. The company does finance some of its investments in tangible fixed assets through hire purchase contracts. The maturity of these obligations is set out in the notes to the financial statements. Economic Risk: The company purchases significant volume of wholesale food product and energy costs, both which can have significant volatility and have considerable impact on the cost base. This risk is mitigated by fixing long term contracts with suppliers and constant review of product pricing. Trading risk: The company identifies that there are significant risks complying with legislation in the following areas:- - Health and Safety - Food Hygiene - Employment Law The company uses external advisors to provide a framework of policies, procedures and internal controls to address risks in all these areas. Key performance indicators: The company manages the business through the following key performance indicators: - Increase/decrease in turnover - Change in the average transaction value - Raw ingredient percentage - Wage percentage - Waste percentage - EBITDA
The directors do not foresee any changes to the principal activities of the company. We are actively looking for new shops. With the UK food to go market expected to continue to grow we are in a strong position to expand our number of outlets.
This report was approved by the board on 30 July 2025 and signed on its behalf.
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ARTHUR CHATWIN LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
The directors present their report and the financial statements for the year ended 31 December 2024.
The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Company's financial statements and then apply them consistently;
∙make judgments 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 to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The profit for the year, after taxation, amounted to £249,339 (2023 - loss £8,586).
Ordinary dividends were paid amounting to £174,710 (2023: £25,000). The directors do not recommend the payment of a final dividend.
The directors who served during the year were:
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ARTHUR CHATWIN LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
Disabled persons
The company is responsive to the needs of its employees. As such, should any employee of the company become disabled during their time with us, we will actively retrain that employee and make reasonable adjustments to their working environment where possible, in order to keep the employee with the company. It is the policy of the company that the recruitment, training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees. Employee involvement The Board maintain regular communication with employees by holding regular staff meetings where free flow of information and ideas is encouraged. Through these meetings, informal shop visits and factory floor walks, the views of the teams operating in the shops and the bakery are well known.
The auditors, WR Partners, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board on
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ARTHUR CHATWIN LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ARTHUR CHATWIN LIMITED
We have audited the financial statements of Arthur Chatwin Limited (the 'Company') for the year ended 31 December 2024, which comprise the Profit and Loss Account, the Balance Sheet, the Statement of Cash Flows, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
The company has a defined benefit pension scheme, which, other than the disclosure in note 32 describing the potential scheme liability, is not included in the financial statements in accordance with FRS 102. The directors have not requested an FRS 102 actuarial report on the defined benefit pension scheme at 31 December 2024. For this reason, we were unable to obtain sufficient appropriate audit evidence to be able to verify the value of the defined pension scheme liability at 31 December 2024 or 31 December 2023. In addition, the FRS 102 defined benefit pension scheme disclosures are not included within the financial statements. Were any adjustments to the pension balance to be required, the strategic report and directors report would also need to be amended.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the 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.
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ARTHUR CHATWIN LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ARTHUR CHATWIN LIMITED (CONTINUED)
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
As described in the Basis for qualified opinion on other matters prescribed by the Companies Act 2006 section of our report we have concluded that we are unable to determine whether a material mis-statement exists in the other information.
Except for the matter described in the Basis for qualified opinion on other matters prescribed by the Companies Act 2006 section of our report, in our opinion, based on the work undertaken in the course of the 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.
Except for the material misstatement described in the Basis for qualified opinion on other matters prescribed by the Companies Act 2006 section of our report, 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 and the Directors' Report.
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ARTHUR CHATWIN LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ARTHUR CHATWIN LIMITED (CONTINUED)
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
The audit team obtained an understanding of the legal and regulatory frameworks that are applicable to the Company and determined that the most significant are those that relate to the reporting framework (FRS102 and the Companies Act 2006), the relevant tax compliance regulations, employment law, Health and Safety Regulations and the EU General Data Protection Regulation (GDPR). We understood how the Company is complying with these frameworks by making enquiries of management and those responsible for legal and compliance procedures. We also reviewed board minutes to identify any recorded instances of irregularity or non compliance that might have a material impact on the financial statements. We assessed the susceptibility of the Company's financial statements to material misstatement, including how fraud might occur by meeting with key management to understand where they considered there was susceptibility to fraud. Based on our understanding our procedures involved enquiries of management and those charged with governance, manual journal entry testing, cashbook reviews for large and unusual items and the challenge of significant accounting estimates used in preparing the financial statements.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those 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.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.
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ARTHUR CHATWIN LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ARTHUR CHATWIN LIMITED (CONTINUED)
This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.
for and on behalf of
Chartered Accountants
Statutory Auditors
Drake House
Gadbrook Park
Rudheath
Cheshire
CW9 7RA
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ARTHUR CHATWIN LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2024
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ARTHUR CHATWIN LIMITED
REGISTERED NUMBER: 00716597
BALANCE SHEET
AS AT 31 DECEMBER 2024
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ARTHUR CHATWIN LIMITED
REGISTERED NUMBER: 00716597
BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf on
The notes on pages 15 to 39 form part of these financial statements.
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ARTHUR CHATWIN LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
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ARTHUR CHATWIN LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
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ARTHUR CHATWIN LIMITED
STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
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ARTHUR CHATWIN LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Arthur Chatwin Limited is a private company limited by shares incorporated in England and Wales. The
registered office is 4 Market Street, Nantwich, Cheshire, CW5 5DJ.
2.Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).
The following principal accounting policies have been applied:
At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. This includes the ability to meet its obligations as they fall due, including contributions to the defined benefit pension scheme. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
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ARTHUR CHATWIN LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
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ARTHUR CHATWIN LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
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ARTHUR CHATWIN LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Goodwill
Other intangible assets
At each reporting date the company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.
All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.
The estimated useful lives range as follows:
At each reporting date the Company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.
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ARTHUR CHATWIN LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
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ARTHUR CHATWIN LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Provisions are charged as an expenses to profit or loss in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the epxenditure required to settle the obligation, taking into account relevant risks and uncertainties.
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ 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.
The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.
Basic financial assets
Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
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ARTHUR CHATWIN LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.
Other financial assets
Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.
Impairment of financial assets
At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. 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.
Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.
If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.
Basic 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 the deduction of all its liabilities.
Basic financial liabilities, which include trade and other creditors, bank loans and other loans are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.
Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.
Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.
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ARTHUR CHATWIN LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ 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.
Derecognition of financial instruments
Derecognition of financial assets
Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained.
Derecognition of financial liabilities
Financial liabilities are derecognised when the Company's contractual obligations expire or are discharged or cancelled.
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ARTHUR CHATWIN LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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. Dilapidations The directors estimate the value of dilapidation cost for each of the leasehold properties. The cost of dilapidations is based on both historic and recent dilapidations claims on a cost per metre squared adjusted for the period remining on the leases. The dilapidations provision at 31 December 2024 was £244,200 (2023 - £209,212). In the opinion of the directors, the accounting estimates and judgements made in the course of preparing these financial statements are not difficult, subjective or complex to a degree which would warrant their description as critical. The directors have made the decision not to include the defined benefit pension balance in the financial statements.
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ARTHUR CHATWIN LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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ARTHUR CHATWIN LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Page 25
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ARTHUR CHATWIN LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Page 26
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ARTHUR CHATWIN LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Page 27
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ARTHUR CHATWIN LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
13.Taxation (continued)
Page 28
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ARTHUR CHATWIN LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
13.Taxation (continued)
There were no factors that may affect future tax charges.
Page 29
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ARTHUR CHATWIN LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Page 30
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ARTHUR CHATWIN LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
16.Tangible fixed assets (continued)
Page 31
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ARTHUR CHATWIN LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Investment property comprised one property commercially let.
The fair value of the investment property was arrived at on the basis of a valuation carried out at 8 December 2021 by Lamb & Swift. Commercial Property, RICS registered valuers, who are not connected with the company. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties. During the year the property has been reclassified as freehold property and is now used for trading purposes.
Page 32
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ARTHUR CHATWIN LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Page 33
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ARTHUR CHATWIN LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
At 31 December 2024 the loan from Santander UK plc was secured by charges over the company's
freehold property located at Market Street, Nantwich. The defined benefit pension deficit referred to in note 32 is secured by a charges over freehold properties located at Bridge Street, Congleton and High Street, Newcastle Under-Lyme. At 31 December 2024 there was 1 loan from Santander UK plc as follows; Outstanding balance at 31 December 2024 £898,333 repayable over 5 years ending 3 February 2027 at a rate of 3% above base. At this date there is expected to be a review. The net obligations under finance lease and HP contracts are secured on the assets to which the finance relates.
Page 34
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ARTHUR CHATWIN LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Page 35
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ARTHUR CHATWIN LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
26.Deferred taxation (continued)
Revaluation reserve
Capital redemption reserve
Profit and loss account
Page 36
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ARTHUR CHATWIN LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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.
The charge to the profit and loss account in respect of defined contribution pension schemes was £91,856 (2023: £101,643).
At the balance sheet date, contributions of £18,125 (2023 - £17,210) were included within current liabilities.
Page 37
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ARTHUR CHATWIN LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
32.Other financial commitments
The company previously operated a defined benefit pension scheme for its members. Contributions to this scheme are made by Arthur Chatwin Limited, the sponsoring employer. The assets of the scheme are held in funds independent of the company and administered by trustees. Contributions to the company's defined benefit scheme are charged to the profit and loss account such that when taken together with expected future benefits the scheme will be able to meet its obligations as they fall due. The pension scheme obligations are determined by a qualified actuary. The pension costs for the period represent pension charges, levies and contributions payable by the company to the fund to spread the cost of pensions over employees working lives with the company. There were no outstanding or prepaid contributions at either the beginning or end of the financial period.
The latest full actuarial valuation / funding update was performed at 5 April 2022 by an independent, professionally qualified actuary. Following the actuarial valuation there were significant changes to defined benefit pension liability resulting from increases in the the discount rate reducing pension scheme liabilities. The actuarial valuation / funding update as at 31 October 2022 reported a deficit of £785,000. The directors acknowledge that in the absence of a Full FRS102 pension disclosures report they have not complied with the disclosure requirements of FRS102 but in view of the deficit have arranged that the scheme hold a legal charge against company property, have earmarked a schedule of shortfall payments and are undertaking to regularly review the asset position to ensure the scheme is adequately funded in order to meet its ongoing liabilities. During the year the company made pension deficit payments totalling £150,722 (31 December 2023: £143,545). Going forward, payments have been set to increase at 5% p.a from the base level of £138,915 set by the scheme actuaries in 2022. The scheme is closed to new members with all current employees paying contributions to a defined contribution scheme.
Page 38
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ARTHUR CHATWIN LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
The company is ultimately controlled by Mr E R Chatwin, who is the majority shareholder.
Page 39
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