Company registration number 11464814 (England and Wales)
CHALLENGER MOBILE COMMUNICATIONS (HOLDINGS) LTD
ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2025
PAGES FOR FILING WITH REGISTRAR
CHALLENGER MOBILE COMMUNICATIONS (HOLDINGS) LTD
CONTENTS
Page
Group balance sheet
1
Company balance sheet
2
Notes to the financial statements
3 - 17
CHALLENGER MOBILE COMMUNICATIONS (HOLDINGS) LTD
GROUP BALANCE SHEET
AS AT 31 JANUARY 2025
31 January 2025
- 1 -
2025
2024
as restated
Notes
£
£
£
£
Fixed assets
Intangible assets
4
2,876,326
3,517,766
Tangible assets
5
720,102
768,971
3,596,428
4,286,737
Current assets
Stocks
24,889
18,361
Debtors
8
1,563,165
2,002,143
Cash at bank and in hand
514,057
429,232
2,102,111
2,449,736
Creditors: amounts falling due within one year
9
(2,611,485)
(3,190,573)
Net current liabilities
(509,374)
(740,837)
Total assets less current liabilities
3,087,054
3,545,900
Creditors: amounts falling due after more than one year
10
(536,347)
(1,228,708)
Provisions for liabilities
(927,673)
(730,854)
Net assets
1,623,034
1,586,338
Capital and reserves
Called up share capital
200
200
Share premium account
13
3,499,900
3,499,900
Revaluation reserve
14
347,672
361,043
Profit and loss reserves
15
(2,224,738)
(2,274,805)
Total equity
1,623,034
1,586,338

The director of the group have elected not to include a copy of the profit and loss account within the financial statements.

These financial statements have been prepared in accordance with the provisions applicable to groups and companies subject to the small companies regime.

The financial statements were approved and signed by the director and authorised for issue on 24 June 2025
24 June 2025
Mr J Eamens
Director
Company registration number 11464814 (England and Wales)
CHALLENGER MOBILE COMMUNICATIONS (HOLDINGS) LTD
COMPANY BALANCE SHEET
AS AT 31 JANUARY 2025
31 January 2025
- 2 -
2025
2024
as restated
Notes
£
£
£
£
Fixed assets
Investments
6
7,463,886
7,440,022
Current assets
Cash at bank and in hand
7,600
7,616
Creditors: amounts falling due within one year
9
(3,743,196)
(3,232,084)
Net current liabilities
(3,735,596)
(3,224,468)
Total assets less current liabilities
3,728,290
4,215,554
Creditors: amounts falling due after more than one year
10
(228,190)
(715,454)
Net assets
3,500,100
3,500,100
Capital and reserves
Called up share capital
200
200
Share premium account
13
3,499,900
3,499,900
Total equity
3,500,100
3,500,100

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £138,780 (2024 - £98,780 profit).

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved and signed by the director and authorised for issue on 24 June 2025
24 June 2025
Mr J Eamens
Director
Company registration number 11464814 (England and Wales)
CHALLENGER MOBILE COMMUNICATIONS (HOLDINGS) LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2025
- 3 -
1
Accounting policies
Company information

Challenger Mobile Communications (Holdings) Ltd (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Communications House, Parkway, Deeside Industrial Park, Deeside, Flintshire, CH5 2NS.

 

The group consists of Challenger Mobile Communications (Holdings) Ltd and all of its subsidiaries.

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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include certain financial instruments at fair value. The principal accounting policies adopted are set out below.

The 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 for parent company information presented within the consolidated financial statements:

 

1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

CHALLENGER MOBILE COMMUNICATIONS (HOLDINGS) LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
1
Accounting policies
(Continued)
- 4 -
1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Challenger Mobile Communications (Holdings) Ltd together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All material components financial statements are made up to 31 January 2025. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

1.4
Going concern

At the time of approving the financial statements, the director has a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.

1.5
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes.

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.

1.6
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.7
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Amortisation 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:

Website
4 years
CHALLENGER MOBILE COMMUNICATIONS (HOLDINGS) LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
1
Accounting policies
(Continued)
- 5 -
1.8
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
Over 50 years
Fixtures and fittings
Between 3 & 10 years straight line
Computers
25% reducing balance
Solar Panels
Over 5 years

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 recognised in the profit and loss account.

1.9
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.10
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

CHALLENGER MOBILE COMMUNICATIONS (HOLDINGS) LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
1
Accounting policies
(Continued)
- 6 -

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.11
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 profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.12
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.13
Financial instruments

The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and 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.

CHALLENGER MOBILE COMMUNICATIONS (HOLDINGS) LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
1
Accounting policies
(Continued)
- 7 -
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 group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

CHALLENGER MOBILE COMMUNICATIONS (HOLDINGS) LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
1
Accounting policies
(Continued)
- 8 -
Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.14
Equity instruments

Equity instruments issued by the group 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 group.

1.15
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 group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is 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.

1.16
Provisions

Provisions are recognised when the group has a legal or constructive present obligation as a result of a past event, it is probable that the group will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

 

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

CHALLENGER MOBILE COMMUNICATIONS (HOLDINGS) LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
1
Accounting policies
(Continued)
- 9 -
1.17
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

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

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.18
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.19
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the director is 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.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Investments

The investment in Challenger Mobile Communications Limited reflects the consideration paid for the company of which an element has been deferred. This consideration has been discounted to net present value and unwinds each year accordingly. The discount factor utilised is based on the company's interest borrowing costs.

CHALLENGER MOBILE COMMUNICATIONS (HOLDINGS) LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
2
Judgements and key sources of estimation uncertainty
(Continued)
- 10 -
Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Property revalauations

Freehold properties is held at revalued amounts based on professional valuations. Actual value may differ to estimated value which could result in under or over statement of asset value.

Cashback provision

The cashback provision is held as a provision and is to be claimed by customers based on agreed terms. The provision is unwound monthly and any unclaimed cashback is written off to the profit and loss account to ensure that the provision is not overstated.

Cost of acquisition prepayment

The cost of acquisition prepayment is essentially to release the initial cost to the profit and loss account over the term of the individual contract in relation to hardware, cashback, retail and phone plan.

Useful life of assets

The useful economic lives of tangible fixed assets must be estimated by management to determine the period over which they are depreciated. A change in estimate would result in a change to the depreciation charged to the profit and loss account in the period.

 

In addition, the useful economic lives of intangible fixed assets must be estimated by management to determine the period over which they are amortised. A change in estimate would result in a change to the amortisation charged to the profit and loss account in the period.

3
Employees

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

Group
Company
2025
2024
2025
2024
Number
Number
Number
Number
Total
40
38
-
0
-
0
CHALLENGER MOBILE COMMUNICATIONS (HOLDINGS) LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
- 11 -
4
Intangible fixed assets
Group
Goodwill
Website
Total
£
£
£
Cost
At 1 February 2024
6,532,355
20,000
6,552,355
Additions
23,864
-
0
23,864
At 31 January 2025
6,556,219
20,000
6,576,219
Amortisation and impairment
At 1 February 2024
3,014,589
20,000
3,034,589
Amortisation charged for the year
665,304
-
0
665,304
At 31 January 2025
3,679,893
20,000
3,699,893
Carrying amount
At 31 January 2025
2,876,326
-
0
2,876,326
At 31 January 2024
3,517,766
-
0
3,517,766
The company had no intangible fixed assets at 31 January 2025 or 31 January 2024.
5
Tangible fixed assets
Group
Freehold land and buildings
Fixtures and fittings
Computers
Solar Panels
Total
£
£
£
£
£
Cost or valuation
At 1 February 2024
755,000
141,095
2,444
42,656
941,195
Additions
-
0
16,331
-
0
-
0
16,331
At 31 January 2025
755,000
157,426
2,444
42,656
957,526
Depreciation and impairment
At 1 February 2024
52,068
94,908
1,085
24,163
172,224
Depreciation charged in the year
26,034
30,361
274
8,531
65,200
At 31 January 2025
78,102
125,269
1,359
32,694
237,424
Carrying amount
At 31 January 2025
676,898
32,157
1,085
9,962
720,102
At 31 January 2024
702,932
46,187
1,359
18,493
768,971
The company had no tangible fixed assets at 31 January 2025 or 31 January 2024.
CHALLENGER MOBILE COMMUNICATIONS (HOLDINGS) LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
5
Tangible fixed assets
(Continued)
- 12 -

The land and buildings were revalued on 11 March 2022 by Jones Peckover, independent valuers with no affiliation to the company, using the market value basis. As of that date, the carrying amount was £589,062, which was subsequently revised to £755,000. The valuation complies with International Valuation Standards and was informed by recent market transactions involving comparable properties on an arm's length basis.

The revaluation surplus is disclosed in note 14.

The following assets are carried at valuation. If the assets were measured using the cost model, the carrying amounts would be as follows:

2025
2024
£
£
Group
Cost
410,264
410,264
Accumulated depreciation
(196,926)
(188,721)
Carrying value
213,338
221,543
6
Fixed asset investments
Group
Company
2025
2024
2025
2024
£
£
£
£
Shares in group undertakings and participating interests
-
-
7,463,886
7,440,022
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 February 2024
7,440,022
Valuation changes
23,864
At 31 January 2025
7,463,886
Carrying amount
At 31 January 2025
7,463,886
At 31 January 2024
7,440,022
7
Subsidiaries

Details of the company's subsidiaries at 31 January 2025 are as follows:

CHALLENGER MOBILE COMMUNICATIONS (HOLDINGS) LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
7
Subsidiaries
(Continued)
- 13 -
Name of undertaking
Address
Nature of business
Class of
% Held
shares held
Direct
Indirect
Challenger Mobile Communications Limited
1
Telecomms company
Ordinary
100.00
-
Challenger Mobile Solutions Limited
1
Dormant company
Ordinary
0
100.00
Synergy Business Consultants Limited
1
Telecomms company
Ordinary
100.00
-

Registered office addresses (all UK unless otherwise indicated):

1
Communications House Parkway, Deeside Industrial Park, Deeside, Wales, CH5 2NS
8
Debtors
Group
Company
2025
2024
2025
2024
Amounts falling due within one year:
£
£
£
£
Trade debtors
71,431
96,613
-
0
-
0
Corporation tax recoverable
-
0
3,871
-
0
-
0
Other debtors
1,229,790
1,503,177
-
-
1,301,221
1,603,661
-
-
Amounts falling due after more than one year:
Other debtors
261,944
398,482
-
-
Total debtors
1,563,165
2,002,143
-
0
-
0
9
Creditors: amounts falling due within one year
Group
Company
2025
2024
2025
2024
£
£
£
£
Bank loans
166,321
171,542
-
0
-
0
Trade creditors
576,913
951,824
-
0
-
0
Amounts owed to group undertakings
-
0
-
0
3,253,424
2,720,785
Corporation tax payable
277,599
303,572
-
0
-
0
Other taxation and social security
196,122
166,459
-
0
-
0
Other creditors
1,394,530
1,597,176
489,772
511,299
2,611,485
3,190,573
3,743,196
3,232,084
CHALLENGER MOBILE COMMUNICATIONS (HOLDINGS) LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
- 14 -
10
Creditors: amounts falling due after more than one year
Group
Company
2025
2024
2025
2024
£
£
£
£
Bank loans and overdrafts
225,009
391,328
-
0
-
0
Other creditors
311,338
837,380
228,190
715,454
536,347
1,228,708
228,190
715,454
11
Loans and overdrafts
Group
Company
2025
2024
2025
2024
£
£
£
£
Debenture loans
414,024
643,912
414,024
643,912
Bank loans
391,330
562,870
-
0
-
0
805,354
1,206,782
414,024
643,912
Payable within one year
414,142
401,430
247,821
229,888
Payable after one year
391,212
805,352
166,203
414,024

A registration of charge was created on the 4th April 2019 for a debenture over the assets of Challenger Mobile Communications (Holdings) Limited. The registration of charge is entitled to DBW Investments (14) Limited and includes a fixed charge, floating charge and negative pledge that was delivered on the 9th April 2019.

 

A registration of charge was created on the 7th March 2019 over the assets of Challenger Mobile Communications (Holdings) Limited. The registration of charge is entitled to Barclays Security Trustee Limited and includes a fixed charge, floating charge and negative pledge that was delivered on the 12th March 2019.

 

In addition to the debenture security there is also an intercompany guarantee for the assets of Challenger Mobile Communications Limited.

12
Finance lease obligations
Group
Company
2025
2024
2025
2024
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
14,768
8,520
-
0
-
0
In two to five years
715
9,235
-
0
-
0
15,483
17,755
-
-

Finance lease payments represent rentals payable by the company or group for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 5 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

CHALLENGER MOBILE COMMUNICATIONS (HOLDINGS) LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
- 15 -
13
Share premium account
Group
Company
2025
2024
2025
2024
£
£
£
£
At the beginning and end of the year
3,499,900
3,499,900
3,499,900
3,499,900
14
Revaluation reserve
Group
Company
2025
2024
2025
2024
At the beginning of the year
245,170
404,365
-
-
Prior year adjustment
115,873
-
-
-
At the beginning of the year
361,043
404,365
-
0
-
0
Deferred tax on revaluation of tangible assets
4,457
(25,494)
-
-
Transfer to retained earnings
(17,828)
(17,828)
-
-
At the end of the year
347,672
361,043
-
0
-
15
Profit and loss reserves
Group
Company
2025
2024
2025
2024
as restated
as restated
£
£
£
£
At the beginning of the year
(2,274,805)
(2,537,120)
-
-
Profit for the year
171,019
333,267
138,780
98,780
Dividends
(138,780)
(88,780)
(138,780)
(98,780)
Transfer to reserves
17,828
17,828
-
-
At the end of the year
(2,224,738)
(2,274,805)
-
0
-
16
Audit report information

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006.

The auditor's report is unqualified and includes the following:

Opinion

In our opinion the financial statements:

CHALLENGER MOBILE COMMUNICATIONS (HOLDINGS) LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
16
Audit report information
(Continued)
- 16 -
Senior Statutory Auditor:
Stephanie Baker BA(Hons) ACA
Statutory Auditor:
Xeinadin Audit Limited
Date of audit report:
24 June 2025
17
Operating lease commitments
Lessor

At the reporting end date the group had contracted with tenants for the following minimum lease payments:

Group
Company
2025
2024
2025
2024
£
£
£
£
211,329
237,726
-
-
18
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2025
2024
£
£
Aggregate compensation
163,923
164,651
Transactions with related parties

The group has taken advantage of the exemption in FRS 102, Section 33.1A from disclosing transactions between members of the group, where such transactions have been eliminated on consolidation and the subsidiaries are wholly owned.

 

Accordingly, related party disclosures have not been made for transactions between wholly owned group undertakings.

 

Transactions with other related parties, including those with directors and key management personnel, are disclosed where material and not eliminated on consolidation.

 

During the year the company entered into transactions with Decon's Decontamination & Hygiene Services Ltd which Jeff Eamens is a director of. The total sales during the year were £1,582 (2024: £4,669).

 

In addition to Jeff Eamens being a director, a close family member was remunerated (disclosed as part of key management personnel) and is considered to have influence over the reporting entity. Aside from remuneration, the employee received no other benefits from the company.

19
Prior period adjustment

The prior year adjustment relates to the revaluation of freehold land and buildings carried out in 2022 to a value of £755,000. This revaluation has now been accurately reflected in the financial statements.

CHALLENGER MOBILE COMMUNICATIONS (HOLDINGS) LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
19
Prior period adjustment
(Continued)
- 17 -
Changes to the balance sheet - group
As previously reported
Adjustment
As restated at 31 Jan 2024
£
£
£
Fixed assets
Tangible assets
614,475
154,496
768,971
Provisions for liabilities
Deferred tax
(13,929)
(38,623)
(52,552)
Net assets
1,470,465
115,873
1,586,338
Capital and reserves
Revaluation reserve
245,170
115,873
361,043
Changes to the profit and loss account - group
As previously reported
Adjustment
As restated
Period ended 31 January 2024
£
£
£
Administrative expenses
(2,898,746)
(5,721)
(2,904,467)
Reconciliation of changes in equity - company
The prior period adjustments do not give rise to any effect upon equity.
Reconciliation of changes in profit for the previous financial period
2024
£
Adjustments to prior year
Total adjustments
-
Profit as previously reported
98,780
Profit as adjusted
98,780
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