Company registration number 00637140 (England and Wales)
CHARTERS OF ALDERSHOT LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
CHARTERS OF ALDERSHOT LIMITED
COMPANY INFORMATION
Directors
J Leppard
D McQueen
Secretary
H Leppard
Company number
00637140
Registered office
251 Ash Road
Aldershot
Hampshire
GU12 4DD
Auditor
Alliotts LLP
3 London Square
Cross Lanes
Guildford
GU1 1UJ
CHARTERS OF ALDERSHOT LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Statement of comprehensive income
7
Statement of financial position
8
Statement of changes in equity
9
Statement of cash flows
10
Notes to the financial statements
11 - 23
CHARTERS OF ALDERSHOT LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 1 -

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

Review of the business

The trading result for 2024 was pleasing with the ongoing Peugeot and Citroen businesses in Aldershot showing an improvement over 2023. The Reading site was closed in mid-2023 and the site will now be sold as it is surplus to the group needs.

 

The retail new car market has hampered the sales department performance, but overall volumes remained good in Peugeot. Used car stocking has been streamlined and we have seen profitability improved.

 

The aftersales departments continued to perform well in 2024.

 

Profit before tax is reported of £322,251 (2023 - £114,881).

 

The company’s key indicators during the year were as follows:

 

                            2024            2023

 

Turnover                            £22,053,147        £22,741,749

Gross Profit                        £2,785,665        £2,787,248

EBITDA                            £321,135        £232,423

EBITDA as a percentage of total turnover            1.46%            1.02%

Principal risks and uncertainties

We see the increasing percentage of electric cars, with a resulting reduction in total service hours, being a challenge for the coming year and the future. Customer satisfaction remains a top priority as the loyalty of our customers gives great stability to the business.

Development and performance

We continue to work with Stellantis, the owner of both brands we represent, to achieve our shared objectives.

Position as at 31 December 2024

The directors are delighted to report that all bank loans have now been repaid and that the dividends drawn were broadly in line with the profit after tax reported. The forthcoming planned sale of the Reading premises will give the opportunity for exciting expansion.

On behalf of the board

D McQueen
Director
11 August 2025
CHARTERS OF ALDERSHOT LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -

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 the operation of motor franchises for Peugeot, Citroen. The company disposed of its Ssangyong franchise during the year.

Results and dividends

The results for the year are set out on page 7.

Ordinary dividends were paid amounting to £194,970. The directors do not recommend payment of a further dividend.

Directors

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

J Leppard
D McQueen
Qualifying third party indemnity provisions

The company has made qualifying third party indemnity provisions for the benefit of its directors during the year. These provisions remain in force at the reporting date.

Financial instruments
Objectives and policies

The Company's operations expose it to a variety of financial risks that include the effects of changes in debt market prices, credit risk, liquidity risk and interest rate risk. The Company has in place a risk management programme that seeks to limit the adverse effects on the financial performance of the company by monitoring levels of debt finance and related finance costs.

Liquidity and cash flow risk

The Company manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring that the Company has sufficient liquid resources to meet the operating needs of the business.

Price risk

The Company is exposed to vehicle price risk as a result of its operations. However, given the size of the company's operations, the cost of managing exposure to vehicle price risk exceed any potential benefits. The directors will revisit the appropriateness of this policy should the company's operations change in size or nature.

Credit risk

The Company has implemented policies that require appropriate credit checks on potential customers before sales are made.

Auditor

Alliotts LLP were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed 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.

CHARTERS OF ALDERSHOT LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 3 -

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.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
D McQueen
Director
11 August 2025
CHARTERS OF ALDERSHOT LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF CHARTERS OF ALDERSHOT LIMITED
- 4 -
Opinion

We have audited the financial statements of Charters of Aldershot Limited (the 'company') for the year ended 31 December 2024 which comprise the statement of comprehensive income, the statement of financial position, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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:

CHARTERS OF ALDERSHOT LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF CHARTERS OF ALDERSHOT LIMITED (CONTINUED)
- 5 -
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.

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:

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

 

To address the risk of fraud through management bias and override of controls, we:

CHARTERS OF ALDERSHOT LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF CHARTERS OF ALDERSHOT LIMITED (CONTINUED)
- 6 -

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

 

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

 

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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.

Use of our report

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.

Christopher Cairns BSc FCA (Senior Statutory Auditor)
For and on behalf of Alliotts LLP, Statutory Auditor
Chartered Accountants
3 London Square
Cross Lanes
Guildford
GU1 1UJ
11 August 2025
CHARTERS OF ALDERSHOT LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
- 7 -
Continuing
Discontinued
31 December
Continuing
Discontinued
31 December
operations
operations
2024
operations
operations
2023
Notes
£
£
£
£
£
£
Turnover
3
22,053,147
-
22,053,147
22,134,608
607,141
22,741,749
Cost of sales
(19,267,482)
-
0
(19,267,482)
(19,444,872)
(509,629)
(19,954,501)
Gross profit
2,785,665
-
2,785,665
2,689,736
97,512
2,787,248
Administrative expenses
(2,675,286)
-
0
(2,675,286)
(2,397,290)
(377,826)
(2,775,116)
Other operating income
226,104
-
0
226,104
119,324
39,078
158,402
Operating profit
4
336,483
-
336,483
411,770
(241,236)
170,534
Interest receivable and similar income
7
19
-
0
19
46
-
0
46
Interest payable and similar expenses
8
(14,251)
-
0
(14,251)
(55,699)
-
0
(55,699)
Profit before taxation
322,251
-
0
322,251
356,117
(241,236)
114,881
Tax on profit
9
(93,349)
-
0
(93,349)
(39,391)
-
0
(39,391)
Profit for the financial year
228,902
-
0
228,902
316,726
(241,236)
75,490
CHARTERS OF ALDERSHOT LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2024
31 December 2024
- 8 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
13
3,877,427
3,896,492
Current assets
Stocks
14
5,648,782
5,554,948
Debtors
15
556,550
575,979
Cash at bank and in hand
-
0
283,124
6,205,332
6,414,051
Creditors: amounts falling due within one year
16
(6,881,910)
(7,149,487)
Net current liabilities
(676,578)
(735,436)
Total assets less current liabilities
3,200,849
3,161,056
Provisions for liabilities
Deferred tax liability
18
11,408
5,547
(11,408)
(5,547)
Net assets
3,189,441
3,155,509
Capital and reserves
Called up share capital
20
18,994
18,994
Capital redemption reserve
55,006
55,006
Profit and loss reserves
3,115,441
3,081,509
Total equity
3,189,441
3,155,509

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 11 August 2025 and are signed on its behalf by:
D McQueen
Director
Company registration number 00637140 (England and Wales)
CHARTERS OF ALDERSHOT LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 9 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 January 2023
18,994
55,006
3,200,989
3,274,989
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
75,490
75,490
Dividends
11
-
-
(194,970)
(194,970)
Balance at 31 December 2023
18,994
55,006
3,081,509
3,155,509
Year ended 31 December 2024:
Profit and total comprehensive income
-
-
228,902
228,902
Dividends
11
-
-
(194,970)
(194,970)
Balance at 31 December 2024
18,994
55,006
3,115,441
3,189,441
CHARTERS OF ALDERSHOT LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 10 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
25
1,295,610
555,100
Interest paid
(14,251)
(55,699)
Income taxes paid
(35,802)
(112,366)
Net cash inflow from operating activities
1,245,557
387,035
Investing activities
Purchase of tangible fixed assets
(33,640)
(12,396)
Interest received
19
46
Net cash used in investing activities
(33,621)
(12,350)
Financing activities
Repayment of bank loans
(425,000)
(300,000)
Dividends paid
(194,970)
(194,970)
Net cash used in financing activities
(619,970)
(494,970)
Net increase/(decrease) in cash and cash equivalents
591,966
(120,285)
Cash and cash equivalents at beginning of year
(593,265)
(472,980)
Cash and cash equivalents at end of year
(1,299)
(593,265)
Relating to:
Cash at bank and in hand
-
0
283,124
Bank overdrafts included in creditors payable within one year
(1,299)
(876,389)
CHARTERS OF ALDERSHOT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 11 -
1
Accounting policies
Company information

Charters of Aldershot Limited is a private company limited by shares incorporated in England and Wales. The registered office is 251 Ash Road, Aldershot, Hampshire, GU12 4DD.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

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

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

 

The company sells new and used vehicles and spare parts as well as providing vehicle servicing. Revenue is recognised on the delivery of the vehicle and/or parts to the customer.

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

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.

CHARTERS OF ALDERSHOT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 12 -

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
20 years straight-line
Leasehold land and buildings
50 years straight-line
Plant and equipment
15% - 20% straight-line
Fixtures, fittings and equipment
15% - 33% straight-line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.5
Impairment of fixed assets

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

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

 

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

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

1.6
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 profit or loss. Reversals of impairment losses are also recognised in profit or loss.

Consignment vehicles that are regarded effectively as being under the control of the company, are included within stocks on the balance sheet, although legal title has not passed to the company. The corresponding liability is included as vehicle consignment creditors and is secured directly on these vehicles.

CHARTERS OF ALDERSHOT 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, 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.

1.8
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 statement of financial position 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.

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

 

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

 

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

Other financial liabilities

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

 

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

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.9
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 income statement 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.

CHARTERS OF ALDERSHOT 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 income statement, 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 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.

1.12
Retirement benefits

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

1.13
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss 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

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The main estimates included in the accounts include depreciation, which is based on standard useful lives for each type of asset and accruals which are based on either quotes, after date invoices or prior invoices where applicable.

CHARTERS OF ALDERSHOT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
2
Judgements and key sources of estimation uncertainty
(Continued)
- 16 -
3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Sale of goods
22,053,147
22,741,749
2024
2023
£
£
Other revenue
Interest income
19
46

Turnover has been wholly generated within the UK.

4
Operating profit
2024
2023
Operating profit for the year is stated after charging:
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
16,920
16,115
Depreciation of owned tangible fixed assets
52,705
61,843
Impairment of stocks recognised or reversed
34,379
55,539
Operating lease charges
349,097
145,356

Prior year adjustment

An adjustment has been made in the above note to restate the comparative total charges incurred under operating leases to included items that had previously be omitted in error.

5
Employees

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

2024
2023
Number
Number
Production
10
10
Administration and support
17
17
Sales
8
8
Other departments
11
11
Total
46
46
CHARTERS OF ALDERSHOT 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
1,733,850
1,810,233
Social security costs
171,985
192,928
Pension costs
103,147
99,897
2,008,982
2,103,058
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
96,697
96,709
Company pension contributions to defined contribution schemes
56,700
56,900
153,397
153,609

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2023 - 1).

7
Interest receivable and similar income
2024
2023
£
£
Interest income
Other interest income
19
46
8
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
3,580
12,661
Other interest on financial liabilities
10,671
43,038
14,251
55,699
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
87,488
35,802
CHARTERS OF ALDERSHOT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
9
Taxation
2024
2023
£
£
(Continued)
- 18 -
Deferred tax
Origination and reversal of timing differences
5,861
3,589
Total tax charge
93,349
39,391

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
322,251
114,881
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 23.52%)
80,563
27,020
Tax effect of expenses that are not deductible in determining taxable profit
3,849
-
0
Depreciation on assets not qualifying for tax allowances
8,937
13,205
Adjustment to deferred tax for changes in tax rates
-
0
213
Marginal relief
-
0
(1,047)
Taxation charge for the year
93,349
39,391
10
Discontinued operations
Reading Branch

In June 2023 the Company closed its branch in Reading and ended its franchise with SsangYong.

11
Dividends
2024
2023
£
£
Final paid
100,000
100,000
Interim paid
94,970
94,970
194,970
194,970
CHARTERS OF ALDERSHOT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 19 -
12
Impairments

Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:

2024
2023
Notes
£
£
In respect of:
Stocks
14
34,379
55,539
Recognised in:
Cost of sales
34,379
55,539
13
Tangible fixed assets
Freehold land and buildings
Leasehold land and buildings
Plant and equipment
Fixtures, fittings and equipment
Total
£
£
£
£
£
Cost
At 1 January 2024
1,877,467
3,113,784
99,541
197,510
5,288,302
Additions
-
0
-
0
33,640
-
0
33,640
At 31 December 2024
1,877,467
3,113,784
133,181
197,510
5,321,942
Depreciation and impairment
At 1 January 2024
435,368
727,047
80,241
149,154
1,391,810
Depreciation charged in the year
-
0
35,746
14,103
2,856
52,705
At 31 December 2024
435,368
762,793
94,344
152,010
1,444,515
Carrying amount
At 31 December 2024
1,442,099
2,350,991
38,837
45,500
3,877,427
At 31 December 2023
1,442,099
2,386,737
19,300
48,356
3,896,492
14
Stocks
2024
2023
£
£
Finished goods and goods for resale
5,648,782
5,554,948

Included within finished goods and goods for resale is consignment stock totalling £896,857 (2023: £1,009,487). This stock is pledged as security against the consignment stock liability included in other creditors.

CHARTERS OF ALDERSHOT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 20 -
15
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
290,739
384,341
Other debtors
83,926
59,344
Prepayments and accrued income
181,885
132,294
556,550
575,979
16
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans and overdrafts
17
1,299
1,301,389
Trade creditors
1,342,853
1,219,123
Corporation tax
87,488
35,802
Other taxation and social security
7,020
97,180
Other creditors
4,989,093
4,091,121
Accruals and deferred income
454,157
404,872
6,881,910
7,149,487
17
Loans and overdrafts
2024
2023
£
£
Bank loans
-
0
425,000
Bank overdrafts
1,299
876,389
1,299
1,301,389
Payable within one year
1,299
1,301,389

The bank loan was secured by fixed and floating charges over all of the assets of the company.

CHARTERS OF ALDERSHOT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
17
Loans and overdrafts
(Continued)
- 21 -

In October 2016, a £2,000,000 bank loan denominated in sterling with a nominal interest rate of 2.75% over LIBOR was taken out,. This was renewed on 23 September 2019, with a revised maturity date of 23 September 2024.

 

The loan was repaid during the year and the carrying amount at the year end is £nil (2023: £425,000).

 

Financial covenants attached to the loan are as follows:

 

Under the terms the loan, the company must also provide the bank with the following documentation:

18
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/decelerated capital allowances
11,408
6,473
Short term timing differences
-
(926)
11,408
5,547
2024
Movements in the year:
£
Liability at 1 January 2024
5,547
Charge to profit or loss
5,861
Liability at 31 December 2024
11,408

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.

19
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
103,147
99,897

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.

CHARTERS OF ALDERSHOT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 22 -
20
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
18,994
18,994
18,994
18,994

The company has one class of ordinary shares which have attached to them full voting, dividend and capital distribution (including on winding up) rights.

21
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2024
2023
£
£
Within one year
259,580
191,996
Between two and five years
141,822
203,614
In over five years
2,014,747
2,030,992
2,416,149
2,426,602

Prior year adjustment

An adjustment has been made to the comparative figures in the above table to recognise additional operating lease commitments which had not been correctly disclosed in the prior year.

22
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2024
2023
£
£
Aggregate compensation
153,397
153,609
23
Directors' transactions

Dividends totalling £194,970 (2023 - £194,970) were paid in the year in respect of shares held by the company's directors.

 

24
Ultimate controlling party

The ultimate controlling party is J Leppard by virtue of his majority shareholding in the company.

CHARTERS OF ALDERSHOT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 23 -
25
Cash generated from operations
2024
2023
£
£
Profit after taxation
228,902
75,490
Adjustments for:
Taxation charged
93,349
39,391
Finance costs
14,251
55,699
Investment income
(19)
(46)
Depreciation and impairment of tangible fixed assets
52,705
61,843
Movements in working capital:
Increase in stocks
(93,834)
(1,413,253)
Decrease in debtors
19,429
101,913
Increase in creditors
980,827
1,634,063
Cash generated from operations
1,295,610
555,100
26
Analysis of changes in net debt
1 January 2024
Cash flows
31 December 2024
£
£
£
Cash at bank and in hand
283,124
(283,124)
-
Bank overdrafts
(876,389)
875,090
(1,299)
(593,265)
591,966
(1,299)
Borrowings excluding overdrafts
(425,000)
425,000
-
(1,018,265)
1,016,966
(1,299)
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