CHIMNEY SHEEP LIMITED


Director	PHILLIPS, Sally


Registered Address	Unit Four Derwent Drive
	Derwent Howe Industrial Estate
	Workington
	CA14 3YW


Registered Number	08218805 (England and Wales)

Notes to the Financial Statements
for the year ended 31 March 2025

1.	Accounting policies

	Statutory information
	The company is a private company limited by shares and registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

	Basis of preparation
	The financial statements have been prepared under the historical cost convention on a going concern basis unless otherwise specified within these accounting policies and in accordance with Section 1A of Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

	Turnover policy
	Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and/or the rendering of services. Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer. Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs.

Turnover policy

Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and/or the rendering of services.

Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer. 

Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs.

	Foreign currency translation
	Transactions in foreign currencies are initially recognised at the rate of exchange ruling at the date of the transaction. At the end of each reporting period foreign currency monetary items are translated at the closing rate of exchange. Non-monetary items that are measured at historical cost are translated at the rate ruling at the date of the transaction. All differences are charged to the Income Statement

Foreign currency translation

Transactions in foreign currencies are initially recognised at the rate of exchange ruling at the date of the transaction. At the end of each reporting period foreign currency monetary items are translated at the closing rate of exchange. Non-monetary items that are measured at historical cost are translated at the rate ruling at the date of the transaction. All differences are charged to the Income Statement

	Current taxation
	Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.

	Deferred tax
	Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted.

Deferred tax

Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. 

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted.

	Intangible assets
	Intangible assets are stated at cost less accumulated amortisation and accumulated impairment losses. The assets are reviewed for impairment if the above factors indicate that the carrying amount may be impaired. Amortisation is included in 'administrative expenses' in the profit and loss account. Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Intangible assets

Intangible assets are stated at cost less accumulated amortisation and accumulated impairment losses. The assets are reviewed for impairment if the above factors indicate that the carrying amount may be impaired. Amortisation is included in 'administrative expenses' in the profit and loss account.

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

	Amortisation
	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 - 20% straight line

	Goodwill
	Goodwill arising on an acquisition of a business is carried at cost less accumulated impairment losses, if any. Goodwill is amortised over its expected useful life which is estimated to be ten years. Goodwill is assessed for impairment when there are indicators of impairment and any impairment is charged to the income statement. No reversals of impairment are recognised.

	Tangible fixed assets and depreciation
	Tangible fixed assets are stated at cost or valuation less depreciation. 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 disposal are determined by comparing the proceeds with the carrying amount and are recognised in the Income Statement Depreciation is provided on all tangible fixed assets as follows:

Tangible fixed assets and depreciation

Tangible fixed assets are stated at cost or valuation less depreciation. 

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 disposal are determined by comparing the proceeds with the carrying amount and are recognised in the Income Statement

Depreciation is provided on all tangible fixed assets as follows:


		Straight line (years)
	Land and buildings	6.67
	Plant and machinery	10
	Office Equipment	6.67

	Stocks and work in progress
	Stocks are valued at the lower of cost and estimated selling price (less any associated costs to enable such sales to complete). At each date of Statement of Financial Position, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in the Income Statement. Work in progress is valued on the basis of direct costs plus attributable overheads based on normal level of activity. Provision is made for any foreseeable losses where appropriate. No element of profit is included in the valuation of work in progress.

Stocks and work in progress

Stocks are valued at the lower of cost and estimated selling price (less any associated costs to enable such sales to complete). 

At each date of Statement of Financial Position, stocks are assessed for impairment.  If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell.  The impairment loss is recognised immediately in the Income Statement.

Work in progress is valued on the basis of direct costs plus attributable overheads based on normal level of activity. Provision is made for any foreseeable losses where appropriate. No element of profit is included in the valuation of work in progress.

	Financial instruments
	The company enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.

2.	Average number of employees


		2025		2024
	Average number of employees during the year	11		16

3.	Intangible assets

	Goodwill	Other	Total
	£	£	£
Cost or valuation
At 01 April 24	4	23,900	23,904
Additions	-	6,665	6,665
At 31 March 25	4	30,565	30,569
Amortisation and impairment
At 01 April 24	-	5,947	5,947
Charge for year	-	8,701	8,701
At 31 March 25	-	14,648	14,648
Net book value
At 31 March 25	4	15,917	15,921
At 31 March 24	4	17,953	17,957

4.	Tangible fixed assets

	Land & buildings	Plant & machinery	Office Equipment	Total
	£	£	£	£
Cost or valuation
At 01 April 24	503,238	349,822	14,097	867,157
Additions	51,262	37,286	-	88,548
At 31 March 25	554,500	387,108	14,097	955,705
Depreciation and impairment
At 01 April 24	129,056	229,476	5,123	363,655
Charge for year	73,444	24,550	1,923	99,917
At 31 March 25	202,500	254,026	7,046	463,572
Net book value
At 31 March 25	352,000	133,082	7,051	492,133
At 31 March 24	374,182	120,346	8,974	503,502


	The depreciation rate for Leasehold Improvements (included in land and buildings) has changed during the year from split 40% reducing balance/20% straight line to 15% straight line.

5.	Stocks

	2025	2024
	£	£
Raw materials and consumables	750,000	875,000
Total	750,000	875,000

6.	Debtors: amounts due within one year

	2025	2024
	£	£
Trade debtors / trade receivables	16,565	116,287
Other debtors	15,337	-
Prepayments and accrued income	17,116	13,028
Total	49,018	129,315

7.	Creditors: amounts due within one year

	2025	2024
	£	£
Trade creditors / trade payables	81,577	42,287
Bank borrowings and overdrafts	18,257	166,536
Taxation and social security	64,812	131,593
Other creditors	132,087	128,027
Accrued liabilities and deferred income	21,026	34,365
Total	317,759	502,808

8.	Creditors: amounts due after one year

	2025	2024
	£	£
Bank borrowings and overdrafts	60,000	82,800
Total	60,000	82,800

9.	Provisions for liabilities

	2025	2024
	£	£
Net deferred tax liability (asset)	60,763	66,047
Total	60,763	66,047

10.	Related party transactions
	Chimney Sheep Limited has made advertising and marketing payments to another company of which Ms S Phillips is a director. The total paid during the year is £10,000 (2024 - £23,275). Ms S Phillips is a director of another company which Chimney Sheep Limited loaned money to, the amount outstanding at the year end is £30,361 (2024 - (£19,577)). No interest is charged on the loan and is repayable on demand.

10.

Related party transactions

Chimney Sheep Limited has made advertising and marketing payments to another company of which Ms S Phillips is a director. The total paid during the year is £10,000 (2024 - £23,275).

Ms S Phillips is a director of another company which Chimney Sheep Limited loaned money to, the amount outstanding at the year end is £30,361 (2024 - (£19,577)). No interest is charged on the loan and is repayable on demand.

	Notes	2025		2024
		£	£	£	£
Fixed assets
Intangible assets	3		15,921		17,957
Tangible assets	4		492,133		503,502
			508,054		521,459
Current assets
Stocks	5	750,000		875,000
Debtors	6	49,018		129,315
Cash at bank and on hand		92,043		12,436
		891,061		1,016,751
Creditors amounts falling due within one year	7	(317,759)		(502,808)
Net current assets (liabilities)			573,302		513,943
Total assets less current liabilities			1,081,356		1,035,402
Creditors amounts falling due after one year	8		(60,000)		(82,800)
Provisions for liabilities	9		(60,763)		(66,047)
Net assets			960,593		886,555
Capital and reserves
Called up share capital			1,000		1,000
Profit and loss account			959,593		885,555
Shareholders' funds			960,593		886,555