|
Registered number:
AUDITED CONSOLIDATED
FOR THE YEAR ENDED 31 AUGUST 2025
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
CHASESTEAD HOLDINGS LIMITED
COMPANY INFORMATION
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
CHASESTEAD HOLDINGS LIMITED
CONTENTS
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
CHASESTEAD HOLDINGS LIMITED
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 AUGUST 2025
The Directors present their Group Strategic Report, together with the audited, consolidated financial statements and Auditor's Report, for Chasestead Holdings Limited (the 'Company'), together with its consolidated subsidiaries (the 'Group') for the year ended 31 August 2025. In preparing this Group Strategic Report, the Directors have complied with s414C of the Companies Act.
The principal activity of the Company for the current and prior year was that of a holding company.
The principal activity of the Group during the current and prior year was that of light engineering, specialising in the manufacture of prototype and experimental parts and low volume production components.
Chasestead Limited and Chasestead LV Limited are leading sheet metalwork and fabrication engineers offering a complete custom sheet metal engineering solution. These are our customers’ designs that are produced to order for prototypes, testing and development, pre-production or for ongoing low volume production. We support the Automotive, Defence, General engineering and creative metalwork industries.
The financial year ending 31 August 2025 has been the best year in the Group’s history with a growth in turnover by 13% from £7,898,558 in 2024 to £9,087,930 in 2025, and an increase of profit before tax by 30% from £1,112,272 in 2024 to £1,448,055 in 2025. This was achieved through being the preferred supplier to new customers and existing customers during a good year for them with new projects. Examples were an Automotive OEM as a new customer and an automated warehouse existing customer with large orders for their general engineering requirements. We started the year with a complete new combined ERP and Finance system following significant investment in the previous year. This has allowed us to reduce some administrative non-value add processes. We have also checked pricing on long term repeat orders to ensure that the same margins are maintained despite inflationary pressures on costs. Pay rate increases to keep in line with high national inflation and a doubling of electricity price contracts were two main cost pressures at the start of the period. Raw material input prices had stabilised before the start of this year following the large rises seen in 2023-24. Raw material costs are neutralised by typically requoting customers to latest material market prices prior to purchase. Quoted prices being valid for 1 or 2 months to protect the Group from large market fluctuations. Risk management The Group will maintain and update its operational contingency plans with backup options for all processes in the Group, full cloud backup for IT systems and 2 years business continuity insurance.
There are a number of risks and uncertainties that could have a material impact on the Group's future performance.
Financial risks and their management As part of its ordinary activities, the group is exposed to a number of financial risks including liquidity risk and credit risk. The Group proactively monitors these risks to ensure that they are managed appropriately.
Page 1
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
CHASESTEAD HOLDINGS LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2025
Liquidity risk
Liquidity risk relates to the Group's ability to meet the cash flow requirements of its operations. Liquidity is managed through regular review of working capital requirements. Credit risk Credit risk principally relates to trade receivables from clients. Clients are continuously monitored to ensure that the credit lines offered are appropriate. Commercial relationships The Group's business activity is centred on a core base of close commercial relationships. Any risk to the loss of these contracts is managed through regular reviews and contact with their relationship manager to ensure that the group responds to their needs and delivers the service levels that they expect. Regulatory compliance Failing to comply with regulatory requirements could result in the group having to suspend or permanently cease activities. The Group has an in house compliance function, led by a regulatory specialist Director, to ensure that the business operates in a compliant manner and keeps up to date with the regulatory changes occurring within the industry. Personnel Personnel risk focuses on the ability of the group to attract and retain skilled individuals to deliver its growth plans. The Group employment policies, remuneration and benefits packages are regularly reviewed to ensure that they remain competitive with other companies. The Group also monitors employees to identify high performing individuals and ensure that they are developed and progressed within the group. IT systems The ability to increase the scale of the technology infrastructure at pace whilst retaining a secure and compliant environment is paramount to delivering the Group's growth strategy. The business manages this risk through continuous improvement methodology and continues to invest in developing the core systems to ensure that they remain current and compliant.
The principal financial instruments used by the group, from which financial instrument risk arises, are as follows:
∙Trade and other receivables
∙Trade and other payables
∙Cash and cash equivalents
∙Amounts receivable from and payable to other group undertakings
A summary of the financial assets and liabilities of the Group as at year end, together with the comparative balances, is provided in notes to the financial statements, along with the accounting polices applied to financial instruments.
Page 2
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
CHASESTEAD HOLDINGS LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2025
The Group uses the following KPIs and these are reported and checked during the annual quality management system audit for our ASA9100 certification and financial reviews with Directors and accountants.
Those KPIs are:
∙On time delivery performance
∙Customer satisfaction
∙Customer rejects
∙Supplier on time delivery
∙Supplier rejects
∙Value of quotes won per month
∙% of quotes won against sales target
∙Production output (monthly turnover) and monthly P&L and balance sheet position
Due to the varied nature of contracts and deliverables that the Group provides to customers, the board assess the performance of the Group using non-financial KPIs as mentioned below. The main financial KPIs that are monitored by the board are the revenue performance and the gross profit percentage, which are discussed above. The fact that the Group maintained strong EBIT and PBT results was noted favourably by the board.
The Directors will continue to progress their strategic targets below:
∙Develop the skills of our workforce through recruitment of the best skilled and an active apprenticeship and trainee scheme
∙Review and adapt contingency plan to ensure process and company operations continue in any potentially likely scenarios
∙Maintain and make careful use of the strong balance sheet and cash assets of the Group.
∙Pursue long term financial security for the company and its employees and owners with
o Investment in the premises o Target investment to create in house 5-axis machining capability o Maintain a cash surplus to fund potential gaps in projects or project start up requirements o Close the Lloyds Bank Commercial Finance invoice discounting facility as a saving on bank charges since no credit facility is needed.
∙Continue to grow our aerospace and defence portfolio working with existing customers and Make UK Defence trade association.
∙Support growth with our ability to provide design for manufacture services alongside our quotations for new product supply
∙Target £9m group turnover with 15% EBITDA
∙We will continue to maintain our AS9100 rev D and ISO9001 certification as well as Cyber Essentials IT security and specific customer accreditations.
Page 3
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
CHASESTEAD HOLDINGS LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2025
This report was approved by the board and signed on its behalf by:
Page 4
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
CHASESTEAD HOLDINGS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 AUGUST 2025
The Directors present their report and the audited financial statements for Chasestead Holdings Limited (the 'Company') the year ended 31 August 2025.
Statutory information As permitted under s414C(11) of the Companies Act 2006, the Directors have included information in the Group Stategic Report that otherwise would be required under s416(4) to be disclosed in the Directors Report, including information in respect of business activities and principal risks and uncertainties.
The Directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the Directors are required to:
∙select suitable accounting policies for the Group's financial statements and then apply them consistently;
∙make judgements and accounting estimates that are reasonable and prudent; and
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue in business.
The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and the Group and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The profit for the year, after taxation, amounted to £1,040,810 (Unaudited 2024 - £664,436).
Dividends of £200,091 was paid during the year (Unaudited 2024 - £66,597). The Directors do not propose a final dividend (Unaudited 2024 - £Nil).
The Directors who served during the year, and up to the date of signing this report, were:
Page 5
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
CHASESTEAD HOLDINGS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2025
The Group will continue to broaden its product base trying to maintain its existing market share and try to enter new markets. Sales levels and gross profit margins for the next financial year are expected to be stable with more investment into machinery and new technologies making the Group more efficient and profitable.
There have been no significant events affecting the Group since the year end.
The auditor, Barrow LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board and signed on its behalf by:
Page 6
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
CHASESTEAD HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CHASESTEAD HOLDINGS LIMITED
We have audited the financial statements of Chasestead Holdings Limited (the 'Parent Company') and its subsidiaries (the 'Group') for the year ended 31 August 2025, which comprise the Consolidated Statement of Income and Retained Earnings, the Consolidated Analysis of Net Debt, the Consolidated Balance Sheet, the Company Balance Sheet, the Consolidated Statement of Cash Flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
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 Group's or the Parent 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.
Page 7
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
CHASESTEAD HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CHASESTEAD HOLDINGS LIMITED (CONTINUED)
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.
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Group Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Group Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Group and the Parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Directors' Report.
Page 8
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
CHASESTEAD HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CHASESTEAD HOLDINGS LIMITED (CONTINUED)
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an 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 Group 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:
Extent to which the audit was capable of detecting irregularities, including fraud 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. Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Non-compliance with laws and regulations
Based on:
∙Our understanding of the Group and the sector in which it operates;
∙Discussion with management and those charged with governance; and
∙Obtaining an understanding of the Group’s policies and procedures regarding compliance with laws and
regulations. We considered the significant laws and regulations to be FRS 102, UK Tax legislation. The Group is also subject to laws and regulations where the consequence of non-compliance could have a material effect on the amount or disclosures in the financial statements, for example through the imposition of fines or litigation. We identified such laws and regulations to be the Health and Safety Legislation & Employment Equity Act.
Page 9
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
CHASESTEAD HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CHASESTEAD HOLDINGS LIMITED (CONTINUED)
Our procedures in respect of the above included:
∙Review of minutes of meeting of those charged with governance for any instances of non-compliance with
laws and regulations;
∙Review of correspondence with regulatory and tax authorities for any instances of non-compliance with laws
and regulations;
∙Review of financial statement disclosures and agreeing to supporting documentation; and
∙Review of legal expenditure accounts to understand the nature of expenditure incurred.
Fraud We assessed the susceptibility of the financial statements to material misstatement, including fraud. Our risk assessment procedures included:
∙Enquiry with management and those charged with governance regarding any known or suspected instances
of fraud;
∙Obtaining an understanding of the Group'’s policies and procedures relating to:
- Detecting and responding to the risks of fraud; and
- Internal controls established to mitigate risks related to fraud.
∙Review of minutes of meeting of those charged with governance for any known or suspected instances of
fraud;
∙Discussion amongst the engagement team as to how and where fraud might occur in the financial
statements; and
∙Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks
of material misstatement due to fraud.
Based on our risk assessment, we considered the areas most susceptible to fraud to be management override
of controls and revenue recognition, in substance around the cut off of the revenue recognised.
Our procedures in respect of the above included:
∙Testing a sample of journal entries throughout the year, which met a defined risk criteria, by agreeing to
supporting documentation; and
∙Selection of income recognised before and after the financial year end in order to assess whether the
income has been recognised in the correct period. We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditor's Report.
Page 10
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
CHASESTEAD HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CHASESTEAD HOLDINGS LIMITED (CONTINUED)
This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an 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.
for and on behalf of
Statutory Auditor
Rae House
Dane Street
Bishops Stortford
CM23 3BT
Date:
Page 11
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
CHASESTEAD HOLDINGS LIMITED
CONSOLIDATED STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 AUGUST 2025
Page 12
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
CHASESTEAD HOLDINGS LIMITED
REGISTERED NUMBER: 12333715
CONSOLIDATED BALANCE SHEET
AS AT 31 AUGUST 2025
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 18 to 40 form part of these financial statements.
Page 13
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
CHASESTEAD HOLDINGS LIMITED
REGISTERED NUMBER: 12333715
CONSOLIDATED BALANCE SHEET (CONTINUED)
AS AT 31 AUGUST 2025
Page 14
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
CHASESTEAD HOLDINGS LIMITED
REGISTERED NUMBER: 12333715
COMPANY BALANCE SHEET
AS AT 31 AUGUST 2025
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 18 to 40 form part of these financial statements.
Page 15
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
CHASESTEAD HOLDINGS LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 AUGUST 2025
Page 16
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
CHASESTEAD HOLDINGS LIMITED
CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 AUGUST 2025
Page 17
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
CHASESTEAD HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2025
Chasestead Holdings Limited (the 'Company') is a private company, limited by shares and incorporated in England and Wales. The Company's registered office and principal place of business is Icknield Way, Letchworth Garden City, SG6 1JX. The Company's registered number is 12333715.
The Group consists of Chasestead Holdings Limited and all of its subsidiaries (the 'Group'). The Company's and the Group's principal activities and nature of its operations are disclosed in the Group Strategic Report on page 1.
2.Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgement in applying the Group's accounting policies (see note 3).
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Income and Retained Earnings in these financial statements.
The following principal accounting policies have been applied:
The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance Sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Income and Retained Earnings from the date on which control is obtained. They are deconsolidated from the date control ceases.
The Group maintains long-standing relationships with established OEMs and tier-1 suppliers across the automobile and aviation sectors, supported by recurring orders and, in certain cases, multi-year contractual arrangements. The Group also holds cash reserves that are considered sufficient to meet its day-to-day operational and working capital needs under normal trading conditions. Based on the current outlook and available financial resources, the Directors do not foresee any material uncertainty that would affect the Group's ability to continue operating. The financial statements have accordingly been prepared on a going concern basis.
Page 18
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
CHASESTEAD HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2025
2.Accounting policies (continued)
Functional and presentation currency
Transactions and balances
Page 19
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
CHASESTEAD HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2025
2.Accounting policies (continued)
If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only.
Page 20
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
CHASESTEAD HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2025
2.Accounting policies (continued)
Goodwill
Page 21
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
CHASESTEAD HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2025
2.Accounting policies (continued)
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
Page 22
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
CHASESTEAD HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2025
2.Accounting policies (continued)
The Group has entered into an invoice discounting facility with a third-party finance provider to manage its working capital requirements. Under the terms of the facility, the Group assigns certain trade receivables to the provider in exchange for an immediate cash advance, typically representing a percentage of the invoice value.
The Group retains substantially all the risks and rewards associated with the assigned receivables, including the risk of slow payment, credit default, and the obligation to repay the advance. Accordingly, the facility does not qualify for derecognition of the trade receivables under Section 11 of FRS 102. The Group therefore adopts the separate presentation approach as its accounting policy. Initial measurement Trade receivables subject to the facility continue to be recognised as financial assets on the Statement of Financial Position at their transaction price (net of any trade discounts) in accordance with the Group's policy for trade debtors. The cash advance received from the provider is recognised as a financial liability (a collateralised loan) at the fair value of the proceeds received, which is the amount of cash advanced. Subsequent measurement The trade receivables are subsequently measured at amortised cost using the effective interest method, less any impairment losses for expected credit losses (bad debts), in accordance with the Group's impairment policy. The liability for the advance is subsequently measured at amortised cost. The difference between the cash received and the total amount repayable (including discount/interest charges and service fees) is recognised in the profit or loss over the period of the facility using the effective interest method. Presentation (receivable position) The Group operates the facility on a dynamic basis where cash collections from customers are periodically remitted to the provider to reduce the drawn balance. Where, at the reporting date, the cumulative collections from assigned debtors exceed the cumulative advances drawn down (resulting in a net credit balance in favour of the Group), this excess is presented as a current asset within "Other receivables" or "Prepayments and accrued income". This reflects the Group's contractual right to either draw down further funds or receive a cash refund from the provider. Conversely, where advances drawn exceed collections, the resulting net obligation is presented within "Creditors: amounts falling due within one year" as a financial liability.
Page 23
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
CHASESTEAD HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2025
2.Accounting policies (continued)
The Group has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the Group's Balance Sheet when the Group 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 trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Discounting is omitted where the effect of discounting is immaterial. The Group's cash and cash equivalents and most other debtors due with the operating cycle fall into this category of financial instruments.
Impairment of financial assets
At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.
Page 24
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
CHASESTEAD HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2025
2.Accounting policies (continued)
If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.
Basic financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Group after the deduction of all its liabilities.
Basic financial liabilities, which include trade and other creditors, bank loans, other loans and loans due to fellow group companies are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.
Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.
Derecognition of financial instruments
Derecognition of financial assets
Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Group transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Group will continue to recognise the value of the portion of the risks and rewards retained.
Derecognition of financial liabilities
Financial liabilities are derecognised when the Group's contractual obligations expire or are discharged or cancelled.
The Group has granted security to Lloyds Bank Commercial Finance Limited in connection with the invoice discounting facility operated by its subsidiary, Chasestead Limited. The security is registered at Companies House as a fixed charge.
Page 25
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
CHASESTEAD HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2025
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 accounting judgements and key sources of estimates in applying the Group's accounting policies Revenue recognition and contract accounting The recognition of revenue on engineering contracts requires management to make judgements regarding the identification of performance obligations, the extent to which contractual obligations have been satisfied and the appropriate measure of progress towards completion. Where contracts extend over more than one accounting period, management is required to estimate the total contract revenue, costs to complete and the resulting contract margin. These estimates are based on the latest available information, including contractual terms, agreed variations, expected labour and material costs, subcontractor costs and the assessment of work remaining to complete. Changes in these estimates may result in a material adjustment to revenue, profit and contract assets or liabilities in the period in which the estimates are revised. Recoverability of trade receivables and contract assets The Group assesses the recoverability of trade receivables and contract assets by considering the creditworthiness of customers, the ageing of outstanding balances, historical payment experience and specific information available regarding individual customers and contracts. Management is required to exercise judgement in determining the appropriate level of impairment allowance, particularly in respect of disputed balances, contract claims and amounts outstanding from customers experiencing financial difficulties. Actual credit losses may differ from those estimated at the reporting date. Useful economic lives of property, plant and equipment The depreciation charge is dependent on estimates of the useful economic lives and residual values of the Company's property, plant and equipment. In determining these estimates, management considers the expected utilisation of assets, technological developments, physical condition and the Group's historical experience. Changes in these estimates could result in a material change to the carrying value of property, plant and equipment and the depreciation charge in future periods. Provisions Judgement is required in relation to methods and assumptions used when estimating future cash flows required to settle present obligations for which provisions are required.
Page 26
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
CHASESTEAD HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2025
3.Judgements in applying accounting policies (continued)
Taxation Judgement is required in determining the provision for income taxes due to the complexity of legislation. There are many transactions and calculations for which the ultimate tax determination is uncertain during the ordinary course of business. The Group recognises liabilities for anticipated tax audit issues based on estimates of whether additional taxes will be due. Where the final tax outcome of these matters is different from the amounts that were initially recorded, such differences will impact the income tax and deferred tax provisions in the period in which such determination is made. The Group recognises the net future tax benefit related to deferred income tax assets to the extent that it is probable that the deductible temporary differences will reverse in the foreseeable future. Assessing the recoverability of deferred income tax assets requires the company to make significant estimates related to expectations of future taxable income. Estimates of future taxable income are based on forecast cash flows from operations and the application of existing tax laws in each jurisdiction. To the extent that future cash flows and taxable income differ significantly from estimates, the ability of the Group to realise the net deferred tax assets recorded at the end of the reporting period could be impaired.
Analysis of turnover by country of destination:
Page 27
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
CHASESTEAD HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2025
Page 28
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
CHASESTEAD HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2025
Page 29
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
CHASESTEAD HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2025
Page 30
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
CHASESTEAD HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2025
12.Taxation (continued)
Deferred tax assets have been recognised in respect of all temporary differences giving rise to deferred tax assets where the Directors believe it is probable that these assets will be recovered. Deferred taxation in respect of the timing differences which are expected to reverse on or after 1 September 2025 is therefore measured at 25%.
The Group offsets tax assets and liabilities if and only if it has a legally enforceable right to offset current tax assets and current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same tax authority. The Group has capital tax losses that arose in the UK of £268,742 (2024 - £268,742) available to carry forward for offset against future chargeable gains. No deferred tax asset has been recognised due to the uncertainty as to the timing and quantum of the recovery of these capital losses within the Group. The total amount of unprovided deferred tax £67,186 (2024 - £67,186). There were no other factors that may affect future tax charges.
Page 31
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
CHASESTEAD HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2025
Page 32
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
CHASESTEAD HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2025
Page 33
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
CHASESTEAD HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2025
Page 34
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
CHASESTEAD HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2025
Page 35
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
CHASESTEAD HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2025
Page 36
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
CHASESTEAD HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2025
Page 37
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
CHASESTEAD HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2025
Page 38
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
CHASESTEAD HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2025
The capital and reserves of the Company are as follows:
Called up share capital
Share premium
Profit and loss account
The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £148,834 (Unaudited 2024 - £141,167). Contributions totalling £15,539 (Unaudited 2024 - £12,269) were payable to the fund at the reporting date and are included in other creditors.
Page 39
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
CHASESTEAD HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2025
The Company's ultimate controlling parties are Mr Robin Moore and Mr Justin Sedgwick by virtue of their majority shareholdings in the Company's Ordinary shares.
Page 40
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||