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REGISTERED NUMBER: 04246652 (England and Wales)















GROUP STRATEGIC REPORT, REPORT OF THE DIRECTOR AND

CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JANUARY 2022

FOR

SECOND CHANCE GROUP LIMITED

SECOND CHANCE GROUP LIMITED (REGISTERED NUMBER: 04246652)






CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS
for the year ended 31 January 2022




Page

Company Information 1

Group Strategic Report 2

Report of the Director 4

Report of the Independent Auditors 6

Consolidated Income Statement 9

Consolidated Other Comprehensive Income 10

Consolidated Balance Sheet 11

Company Balance Sheet 12

Consolidated Statement of Changes in Equity 13

Company Statement of Changes in Equity 14

Consolidated Cash Flow Statement 15

Notes to the Consolidated Cash Flow Statement 16

Notes to the Consolidated Financial Statements 17


SECOND CHANCE GROUP LIMITED

COMPANY INFORMATION
for the year ended 31 January 2022







DIRECTOR: T P Daniels





SECRETARY: P K Daniels





REGISTERED OFFICE: 17 St Peters Place
Fleetwood
Lancashire
FY7 6EB





REGISTERED NUMBER: 04246652 (England and Wales)





AUDITORS: Jones Harris Limited
Statutory Auditors
17 St Peters Place
Fleetwood
Lancashire
FY7 6EB

SECOND CHANCE GROUP LIMITED (REGISTERED NUMBER: 04246652)

GROUP STRATEGIC REPORT
for the year ended 31 January 2022

The director presents his strategic report of the company and the group for the year ended 31 January 2022.

Second Chance Group Limited has not traded during the year under review. Second Chance Limited is one of the largest wholesale sports goods suppliers in EMEA. It is a family run business where the close family have all helped to contribute towards the success of the company.

REVIEW OF BUSINESS
During the year the group has consolidated its trading position and turnover has remained at the level achieved last year. The trading company benefitted from the growth in the leisure market during the Covid pandemic as consumers looked for new hobbies that they were able to do within the restrictions that were introduced. For the year ended 31st January 2022 the following key performance indicators are presented:


2022 2021 Change
£    £    %

Turnover 12,983 12,930 0.4%

Gross profit 3,943 4,147 (4.9%)

Profit before tax 2,373 2,893 (18.0%)

Whilst turnover levels have been maintained, gross profit levels have been depressed, largely as a result of significant increases in the freight shipping costs. Profit before tax is lower this year, reflecting increases in most of the overheads incurred.

Consolidated balance sheet ratios:
2022 2021 Change

Current ratio 6.5 4.5 2.0

Debtor days 38 42 (4 days)

The current ratio has risen this year as the balance sheet has strengthened from the profits that have been made within the group. Debtor days have fallen slightly which indicates that there is no problem with cash flow and that customers are paying us within a reasonable period.


SECOND CHANCE GROUP LIMITED (REGISTERED NUMBER: 04246652)

GROUP STRATEGIC REPORT
for the year ended 31 January 2022

PRINCIPAL RISKS AND UNCERTAINTIES
Trading company operational risks

The company sources most of its products from China. There are potential political and exchange rate risks in this area over which the company has no control. This could impact on the price and supply of stocks if the situation in that region became volatile.

The company acts as distributor for a number of manufacturers. These agreements are for fixed periods and, if not renewed, the range of products offered by the company will reduce, which could have an impact on turnover. The directors are constantly seeking new manufacturers to work with and new product ranges are being taken on regularly. Initially, the company focussed solely on golf products but in recent years has expanded into products for cycling and fishing.

The company has benefitted in recent years from the boom in the leisure market which resulted from the Covid pandemic. However, as the pandemic restrictions have been lifted, the growth in sales has slowed. The UK market now faces the cost of living crisis and a potential recession and consumers are likely to reduce spending on unnecessary spending, such as leisure goods. The directors feel that having a wide range of products available over different sports they are mitigating some of this risk.

Trading company financial risks

The company does a significant amount of its trade in currencies other than Sterling and a fall in value of Sterling could affect the profitability of the company.

ON BEHALF OF THE BOARD:





P K Daniels - Secretary


2 September 2022

SECOND CHANCE GROUP LIMITED (REGISTERED NUMBER: 04246652)

REPORT OF THE DIRECTOR
for the year ended 31 January 2022

The director presents his report with the financial statements of the company and the group for the year ended 31 January 2022.

DIVIDENDS
Interim dividends per share were paid during the year as follows:
A Ordinary £1 - £4057.15 - 30 April 2021
B Ordinary £1 - £6914.30 - 30 April 2021
C Ordinary £1 - £6080 - 30 April 2021
D Ordinary £1 - £5920 - 30 April 2021

The total distribution of dividends for the year ended 31 January 2022 will be £ 564,001 .

Interim dividends were declared on 30th April 2021 as follows:


Class of Share
Dividend per
Share

A Ordinary £4,057.15
B Ordinary £6,914.30
C Ordinary £6,080.00
D Ordinary £5,920.00

FUTURE DEVELOPMENTS
The directors continue to investigate new product ranges that they could add to their catalogue, whilst maintaining their market presence with their existing goods.

EVENTS SINCE THE END OF THE YEAR
Information relating to events since the end of the year is given in the notes to the financial statements.

DIRECTOR
T P Daniels held office during the whole of the period from 1 February 2021 to the date of this report.

STATEMENT OF DIRECTOR'S RESPONSIBILITIES
The director is responsible for preparing the Group Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the director is required to:

- select suitable accounting policies and then apply them consistently;
- make judgements and accounting estimates that are reasonable and prudent;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The director is responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable him to ensure that the financial statements comply with the Companies Act 2006. He is 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.

SECOND CHANCE GROUP LIMITED (REGISTERED NUMBER: 04246652)

REPORT OF THE DIRECTOR
for the year ended 31 January 2022


STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the director is aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and he has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

AUDITORS
The auditors, Jones Harris Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





P K Daniels - Secretary


2 September 2022

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
SECOND CHANCE GROUP LIMITED

Opinion
We have audited the financial statements of Second Chance Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 January 2022 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, 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 our opinion the financial statements:
-give a true and fair view of the state of the group's and of the parent company affairs as at 31 January 2022 and of the group's profit for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 director's 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 and 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 director with respect to going concern are described in the relevant sections of this report.

Other information
The director is responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Director, but does not include the financial statements and our Report of the Auditors thereon.

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.

In connection with our audit of the financial statements, 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 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 the audit:
- the information given in the Group Strategic Report and the Report of the Director for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Group Strategic Report and the Report of the Director have been prepared in accordance with applicable legal requirements.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
SECOND CHANCE GROUP LIMITED


Matters on which we are required to report by exception
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 Report of the Director.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
- the parent company financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of director's remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

Responsibilities of director
As explained more fully in the Statement of Director's Responsibilities set out on page four, the director is 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 director determines 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 director is responsible for assessing the group's and the parent 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 director either intends to liquidate the group or the parent company or to cease operations, or has no realistic alternative but to do so.

Auditors' 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 a Report of the Auditors 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Audit procedures performed in order to mitigate the risks highlighted include the following:
- Discussions with management, including consideration of known or suspected instances of non-compliance with laws and regulation and fraud.
-Evaluation and testing of the effectiveness of the management's controls designed to prevent and detect irregularities.
-Reviewing key correspondence with regulatory authorities in relation to compliance with relevant regulations.
-Challenging assumptions and judgements made by the management as well as explanations given.
-Identifying and testing journal entries, in particular those posted around the year end.

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 Report of the Auditors.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
SECOND CHANCE GROUP LIMITED


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 a Report of the Auditors 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.




Martin W Wigley (Senior Statutory Auditor)
for and on behalf of Jones Harris Limited
Statutory Auditors
17 St Peters Place
Fleetwood
Lancashire
FY7 6EB

2 September 2022

SECOND CHANCE GROUP LIMITED (REGISTERED NUMBER: 04246652)

CONSOLIDATED
INCOME STATEMENT
for the year ended 31 January 2022

2022 2021
Notes £    £   

TURNOVER 12,983,474 12,930,902

Cost of sales 9,040,319 8,783,874
GROSS PROFIT 3,943,155 4,147,028

Administrative expenses 1,654,608 1,320,258
2,288,547 2,826,770

Other operating income 79,784 62,574
OPERATING PROFIT 5 2,368,331 2,889,344

Interest receivable and similar income 5,931 5,926
2,374,262 2,895,270
Amounts written off investments 6 100 -
2,374,162 2,895,270

Interest payable and similar expenses 7 1,646 2,532
PROFIT BEFORE TAXATION 2,372,516 2,892,738

Tax on profit 8 467,714 550,490
PROFIT FOR THE FINANCIAL YEAR 1,904,802 2,342,248
Profit attributable to:
Owners of the parent 1,904,802 2,342,248

SECOND CHANCE GROUP LIMITED (REGISTERED NUMBER: 04246652)

CONSOLIDATED
OTHER COMPREHENSIVE INCOME
for the year ended 31 January 2022

2022 2021
Notes £    £   

PROFIT FOR THE YEAR 1,904,802 2,342,248


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR
THE YEAR

1,904,802

2,342,248

Total comprehensive income attributable to:
Owners of the parent 1,904,802 2,342,248

SECOND CHANCE GROUP LIMITED (REGISTERED NUMBER: 04246652)

CONSOLIDATED BALANCE SHEET
31 January 2022

2022 2021
Notes £    £   
FIXED ASSETS
Tangible assets 11 462,600 528,829
Investments 12 - 100
462,600 528,929

CURRENT ASSETS
Stocks 13 2,956,100 2,096,973
Debtors 14 1,681,144 1,955,376
Cash at bank 2,442,712 1,832,251
7,079,956 5,884,600
CREDITORS
Amounts falling due within one year 15 (1,087,446 ) (1,299,401 )
NET CURRENT ASSETS 5,992,510 4,585,199
TOTAL ASSETS LESS CURRENT
LIABILITIES

6,455,110

5,114,128

CREDITORS
Amounts falling due after more than one year 16 (443 ) (4,867 )

PROVISIONS FOR LIABILITIES 19 (32,648 ) (28,043 )
NET ASSETS 6,422,019 5,081,218

CAPITAL AND RESERVES
Called up share capital 20 100 100
Retained earnings 21 6,421,919 5,081,118
SHAREHOLDERS' FUNDS 6,422,019 5,081,218

The financial statements were approved by the director and authorised for issue on 2 September 2022 and were signed by:





P K Daniels - Director


SECOND CHANCE GROUP LIMITED (REGISTERED NUMBER: 04246652)

COMPANY BALANCE SHEET
31 January 2022

2022 2021
Notes £    £   
FIXED ASSETS
Tangible assets 11 - -
Investments 12 90 190
90 190

CURRENT ASSETS
Debtors 14 1,480,279 425,916
Cash at bank - 354
1,480,279 426,270
CREDITORS
Amounts falling due within one year 15 (24,862 ) -
NET CURRENT ASSETS 1,455,417 426,270
TOTAL ASSETS LESS CURRENT
LIABILITIES

1,455,507

426,460

CAPITAL AND RESERVES
Called up share capital 20 100 100
Retained earnings 1,455,407 426,360
SHAREHOLDERS' FUNDS 1,455,507 426,460

Company's profit for the financial year 1,593,048 380,000

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

The financial statements were approved by the director and authorised for issue on 2 September 2022 and were signed by:





T P Daniels - Director


SECOND CHANCE GROUP LIMITED (REGISTERED NUMBER: 04246652)

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the year ended 31 January 2022

Called up
share Retained Total
capital earnings equity
£    £    £   

Balance at 1 February 2020 190 3,118,870 3,119,060

Changes in equity
Issue of share capital (90 ) - (90 )
Dividends - (380,000 ) (380,000 )
Total comprehensive income - 2,342,248 2,342,248
Balance at 31 January 2021 100 5,081,118 5,081,218

Changes in equity
Dividends - (564,001 ) (564,001 )
Total comprehensive income - 1,904,802 1,904,802
Balance at 31 January 2022 100 6,421,919 6,422,019

SECOND CHANCE GROUP LIMITED (REGISTERED NUMBER: 04246652)

COMPANY STATEMENT OF CHANGES IN EQUITY
for the year ended 31 January 2022

Called up
share Retained Total
capital earnings equity
£    £    £   

Balance at 1 February 2020 100 426,360 426,460

Changes in equity
Dividends - (380,000 ) (380,000 )
Total comprehensive income - 380,000 380,000
Balance at 31 January 2021 100 426,360 426,460

Changes in equity
Dividends - (564,001 ) (564,001 )
Total comprehensive income - 1,593,048 1,593,048
Balance at 31 January 2022 100 1,455,407 1,455,507

SECOND CHANCE GROUP LIMITED (REGISTERED NUMBER: 04246652)

CONSOLIDATED CASH FLOW STATEMENT
for the year ended 31 January 2022

2022 2021
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 1,853,886 2,624,799
Interest paid (347 ) (1,791 )
Interest element of hire purchase payments paid (1,299 ) (741 )
Tax paid (763,062 ) (213,497 )
Net cash from operating activities 1,089,178 2,408,770

Cash flows from investing activities
Purchase of tangible fixed assets (15,043 ) (280,110 )
Sale of tangible fixed assets - 6,350
Sale of fixed asset investments 100 -
Interest received 5,931 5,926
Net cash from investing activities (9,012 ) (267,834 )

Cash flows from financing activities
Capital repayments in year (3,039 ) (3,143 )
Amount introduced by directors 171,354 203,600
Amount withdrawn by directors (74,019 ) (302,934 )
Equity dividends paid (564,001 ) (380,000 )
Net cash from financing activities (469,705 ) (482,477 )

Increase in cash and cash equivalents 610,461 1,658,459
Cash and cash equivalents at beginning of
year

2

1,832,251

173,792

Cash and cash equivalents at end of year 2 2,442,712 1,832,251

SECOND CHANCE GROUP LIMITED (REGISTERED NUMBER: 04246652)

NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT
for the year ended 31 January 2022

1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS
2022 2021
£    £   
Profit before taxation 2,372,516 2,892,738
Depreciation charges 35,856 33,710
Loss/(profit) on disposal of fixed assets 45,416 (439 )
Finance costs 1,646 2,532
Finance income (5,931 ) (5,926 )
2,449,503 2,922,615
Increase in stocks (859,127 ) (108,260 )
Decrease/(increase) in trade and other debtors 170,012 (603,981 )
Increase in trade and other creditors 93,498 414,425
Cash generated from operations 1,853,886 2,624,799

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 January 2022
31/1/22 1/2/21
£    £   
Cash and cash equivalents 2,442,712 1,832,251
Year ended 31 January 2021
31/1/21 1/2/20
£    £   
Cash and cash equivalents 1,832,251 232,128
Bank overdrafts - (58,336 )
1,832,251 173,792


3. ANALYSIS OF CHANGES IN NET FUNDS

At 1/2/21 Cash flow At 31/1/22
£    £    £   
Net cash
Cash at bank 1,832,251 610,461 2,442,712
1,832,251 610,461 2,442,712
Debt
Finance leases (8,641 ) 3,039 (5,602 )
(8,641 ) 3,039 (5,602 )
Total 1,823,610 613,500 2,437,110

SECOND CHANCE GROUP LIMITED (REGISTERED NUMBER: 04246652)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
for the year ended 31 January 2022

1. STATUTORY INFORMATION

Second Chance Group Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the General Information page.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Turnover
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.
Improvements to leasehold property - 2% on cost
Fixtures and fittings - 10% on reducing balance
Motor vehicles - 25% on reducing balance
Computer equipment - 33% on cost

Tangible fixed assets are stated at cost less accumulated depreciation. Such cost includes costs directly attributable to making the asset capable of operating as intended. Depreciation is provided on tangible assets at rates calculated to write off the cost, less estimated residual value, of each asset on a systematic basis over its useful expected life. The carrying values of tangible fixed assets are reviewed for impairment when events or changes in circumstances indicate the carrying value may not be recovered.

Investments in subsidiaries
Investments in subsidiary undertakings are recognised at cost.

Stocks
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

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.

SECOND CHANCE GROUP LIMITED (REGISTERED NUMBER: 04246652)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
for the year ended 31 January 2022

2. ACCOUNTING POLICIES - continued

Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate.

Grants
During the year the group received government support in the form of the Coronavirus Job Retention Scheme. This has been recognised under the accruals model and included within the Income Statement.

Going concern
The group has a lengthy and consistent record of strong cash generation which is more than sufficient to meet it's day-to-day working capital requirements. The directors have a reasonable expectation that the group has adequate resources to continue in existence for the foreseeable future and for at least 12 months from the date that these Financial Statements are approved. Therefore, the group adopts the going concern basis in preparing the Financial Statements.

SECOND CHANCE GROUP LIMITED (REGISTERED NUMBER: 04246652)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
for the year ended 31 January 2022

3. CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

In the application of the Group's accounting policies, which are described in note 2, the directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and 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 if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods.

Critical judgements in applying the Company's accounting policies and key source of estimation uncertainty

The following are the key sources of estimation uncertainty that the directors have assessed as being applicable to the Group and that have the most significant effect on the amounts recognised in the financial statements. It is deemed that there are no critical accounting judgements.

Fixed Assets

Accounting for fixed assets involves the use of estimates for (a) the useful live of the assets over which they are to be depreciated , and (b) the existence and any amount of impairment. Details of fixed assets can be found in note 10.

Fixed assets are depreciated as detailed in note 2 over the estimated useful lives. When the company estimates useful lives various factors are considered including expected technology obsolescence and the expected usage of the asset. The company regularly reviews these assets useful lives and future economic utilization and the physical condition of the assets concerned.

The carrying value of the assets is assessed periodically to determine whether there are any indications of any impairment of the value beyond the depreciation charge. If this is the case, an impairment charge is taken against the carrying value of the assets and charged to profit and loss account. The impairment of fixed assets require management judgement in determining the amounts to be impaired, in particular judgement is used when assessing the future cash flows.

Stock

Stock provisions are provided where it is considered that the amount realisable is considered to be less than its carrying amount. The provision's are made using management's best estimate for recoverable amounts.

4. EMPLOYEES AND DIRECTORS
2022 2021
£    £   
Wages and salaries 914,169 840,835
Social security costs 75,346 62,473
Other pension costs 131,746 45,741
1,121,261 949,049

The average number of employees during the year was as follows:
2022 2021

Total staff 38 42

The average number of employees by undertakings that were proportionately consolidated during the year was 38 (2021 - 42 ) .

SECOND CHANCE GROUP LIMITED (REGISTERED NUMBER: 04246652)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
for the year ended 31 January 2022

4. EMPLOYEES AND DIRECTORS - continued

2022 2021
£    £   
Director's remuneration 69,012 30,627
Director's pension contributions to money purchase schemes 108,049 30,113

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 3 3

5. OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2022 2021
£    £   
Other operating leases 117,935 133,319
Depreciation - owned assets 34,207 32,005
Depreciation - assets on hire purchase contracts 1,649 1,832
Loss/(profit) on disposal of fixed assets 45,416 (439 )
Auditors' remuneration 12,300 -

6. AMOUNTS WRITTEN OFF INVESTMENTS
2022 2021
£    £   
Investments written off 100 -

7. INTEREST PAYABLE AND SIMILAR EXPENSES
2022 2021
£    £   
Bank interest 347 1,791
Hire purchase 1,299 741
1,646 2,532

8. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2022 2021
£    £   
Current tax:
UK corporation tax 463,108 550,830

Deferred tax 4,606 (340 )
Tax on profit 467,714 550,490

SECOND CHANCE GROUP LIMITED (REGISTERED NUMBER: 04246652)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
for the year ended 31 January 2022

8. TAXATION - continued

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

2022 2021
£    £   
Profit before tax 2,372,516 2,892,738
Profit multiplied by the standard rate of corporation tax in the UK of 19 % (2021 -
19 %)

450,778

549,620

Effects of:
Expenses not deductible for tax purposes 8,931 247
Depreciation in excess of capital allowances 3,218 963
Deferred tax charge 4,606 (340 )
Trade losses for year carried forward 181 -
Total tax charge 467,714 550,490

9. INDIVIDUAL INCOME STATEMENT

As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements.


10. DIVIDENDS
2022 2021
£    £   
A Ordinary shares of £1 each
Interim 142,000 80,000
B Ordinary shares of £1 each
Interim 242,001 140,000
C Ordinary shares of £1 each
Interim 91,200 80,000
D Ordinary shares of £1 each
Interim 88,800 80,000
564,001 380,000

SECOND CHANCE GROUP LIMITED (REGISTERED NUMBER: 04246652)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
for the year ended 31 January 2022

11. TANGIBLE FIXED ASSETS

Group
Improvements
to Fixtures
Freehold leasehold and
property property fittings
£    £    £   
COST
At 1 February 2021 250,000 170,253 289,249
Additions - - 12,503
Disposals - (75,157 ) -
At 31 January 2022 250,000 95,096 301,752
DEPRECIATION
At 1 February 2021 - 46,286 205,171
Charge for year - 3,405 9,661
Eliminated on disposal - (29,766 ) -
At 31 January 2022 - 19,925 214,832
NET BOOK VALUE
At 31 January 2022 250,000 75,171 86,920
At 31 January 2021 250,000 123,967 84,078

Motor Computer
vehicles equipment Totals
£    £    £   
COST
At 1 February 2021 99,443 82,043 890,988
Additions - 2,540 15,043
Disposals (4,003 ) (55,062 ) (134,222 )
At 31 January 2022 95,440 29,521 771,809
DEPRECIATION
At 1 February 2021 34,959 75,743 362,159
Charge for year 16,113 6,677 35,856
Eliminated on disposal (3,978 ) (55,062 ) (88,806 )
At 31 January 2022 47,094 27,358 309,209
NET BOOK VALUE
At 31 January 2022 48,346 2,163 462,600
At 31 January 2021 64,484 6,300 528,829

SECOND CHANCE GROUP LIMITED (REGISTERED NUMBER: 04246652)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
for the year ended 31 January 2022

11. TANGIBLE FIXED ASSETS - continued

Group

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:
Fixtures
and
fittings
£   
COST
At 1 February 2021
and 31 January 2022 23,000
DEPRECIATION
At 1 February 2021 6,513
Charge for year 1,649
At 31 January 2022 8,162
NET BOOK VALUE
At 31 January 2022 14,838
At 31 January 2021 16,487

12. FIXED ASSET INVESTMENTS

Group
Shares in
group
undertakings
£   
COST
At 1 February 2021 100
Disposals (100 )
At 31 January 2022 -
NET BOOK VALUE
At 31 January 2022 -
At 31 January 2021 100

SECOND CHANCE GROUP LIMITED (REGISTERED NUMBER: 04246652)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
for the year ended 31 January 2022

12. FIXED ASSET INVESTMENTS - continued

Company
Shares in
group
undertakings
£   
COST
At 1 February 2021 190
Disposals (100 )
At 31 January 2022 90
NET BOOK VALUE
At 31 January 2022 90
At 31 January 2021 190

The group or the company's investments at the Balance Sheet date in the share capital of companies include the following:

Subsidiary

Second Chance Limited
Registered office: 17 St Peters Place, Fleetwood, Lancashire FY7 6EB
Nature of business: Wholesale sports goods suppliers
%
Class of shares: holding
Ordinary 100.00
2022 2021
£    £   
Aggregate capital and reserves 4,966,602 4,654,848
Profit for the year 1,905,754 2,342,248


13. STOCKS

Group
2022 2021
£    £   
Stocks 2,956,100 2,096,973

SECOND CHANCE GROUP LIMITED (REGISTERED NUMBER: 04246652)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
for the year ended 31 January 2022

14. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group Company
2022 2021 2022 2021
£    £    £    £   
Trade debtors 1,350,810 1,484,949 - -
Amounts owed by group undertakings - - 1,244,447 425,906
Other debtors 47,500 85,769 44,503 10
Directors' current accounts 191,329 288,664 191,329 -
Tax - 6,884 - -
Prepayments 91,505 89,110 - -
1,681,144 1,955,376 1,480,279 425,916

15. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group Company
2022 2021 2022 2021
£    £    £    £   
Hire purchase contracts (see note 17) 5,159 3,774 - -
Trade creditors 481,287 582,323 - -
Tax 243,993 550,831 - -
Social security and other taxes 11,018 21,083 - -
VAT 290,113 15,105 - -
Other creditors 24,666 2,539 24,362 -
Accrued expenses 31,210 123,746 500 -
1,087,446 1,299,401 24,862 -

16. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

Group
2022 2021
£    £   
Hire purchase contracts (see note 17) 443 4,867

17. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Group
Hire purchase contracts
2022 2021
£    £   
Net obligations repayable:
Within one year 5,159 3,774
Between one and five years 443 4,867
5,602 8,641

SECOND CHANCE GROUP LIMITED (REGISTERED NUMBER: 04246652)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
for the year ended 31 January 2022

18. SECURED DEBTS

The following secured debts are included within creditors:

Group
2022 2021
£    £   
Hire purchase contracts 5,602 8,641

The hire purchase is secured on the assets to which it relates.

19. PROVISIONS FOR LIABILITIES

Group
2022 2021
£    £   
Deferred tax 32,648 28,043

Group
Deferred
tax
£   
Balance at 1 February 2021 28,043
Movement during year 4,605
Balance at 31 January 2022 32,648

Finance bill 2021 provisions to increase the main rate of UK corporation tax from 1st April 2023. As substantive enactment had occurred before the balance sheet date, deferred tax balances as at 31st January 2022 have been updated to be measured at a rate of 25% (2021: 19%).

20. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2022 2021
value: £    £   
35 A Ordinary £1 35 35
35 B Ordinary £1 35 35
15 C Ordinary £1 15 15
15 D Ordinary £1 15 15
100 100

SECOND CHANCE GROUP LIMITED (REGISTERED NUMBER: 04246652)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
for the year ended 31 January 2022

21. RESERVES

Group
Retained
earnings
£   

At 1 February 2021 5,081,118
Profit for the year 1,904,802
Dividends (564,001 )
At 31 January 2022 6,421,919


22. DIRECTOR'S ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to a director subsisted during the years ended 31 January 2022 and 31 January 2021:

2022 2021
£    £   
T P Daniels
Balance outstanding at start of year 241,890 138,565
Amounts advanced 104,197 268,805
Amounts repaid (154,758 ) (165,480 )
Amounts written off - -
Amounts waived - -
Balance outstanding at end of year 191,329 241,890

The loan to the director was unsecured and repayable on demand. Interest is payable at the HMRC rate applicable to beneficial loan arrangements.

23. RELATED PARTY DISCLOSURES

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements.

During the year, total dividends of £242,000 were paid to the director .

Entities with control, joint control or significant influence over the entity
2022 2021
£    £   
Dividends paid by the company 564,001 380,000
Rent paid 65,000 65,000
Amount due from related party 191,329 -
Amount due to related party 24,362 -

SECOND CHANCE GROUP LIMITED (REGISTERED NUMBER: 04246652)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
for the year ended 31 January 2022

23. RELATED PARTY DISCLOSURES - continued

Other related parties
2022 2021
£    £   
Transfers 44,503 -
Amount due from related party 44,503 -

24. POST BALANCE SHEET EVENTS

In June 2022, the group purchased freehold property from the director, Mr T P Daniels, for a total consideration of £476,000.