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REGISTERED NUMBER: 02335963 (England and Wales)















STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JANUARY 2022

FOR

SECOND CHANCE LIMITED

SECOND CHANCE LIMITED (REGISTERED NUMBER: 02335963)






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




Page

Company Information 1

Strategic Report 2

Report of the Directors 4

Report of the Independent Auditors 6

Income Statement 9

Other Comprehensive Income 10

Balance Sheet 11

Statement of Changes in Equity 12

Cash Flow Statement 13

Notes to the Cash Flow Statement 14

Notes to the Financial Statements 15


SECOND CHANCE LIMITED

COMPANY INFORMATION
for the year ended 31 January 2022







DIRECTORS: T P Daniels
Mrs C Daniels
P K Daniels
T B Daniels





SECRETARY: T P Daniels





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





REGISTERED NUMBER: 02335963 (England and Wales)





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

SECOND CHANCE LIMITED (REGISTERED NUMBER: 02335963)

STRATEGIC REPORT
for the year ended 31 January 2022

The directors present their strategic report for the year ended 31 January 2022.

The company 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 company has consolidated its trading position and turnover has remained at the level achieved last year. The 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.

Balance sheet ratios:
2022 2021 Change

Current ratio 2.97 3.38 (0.41)

Debtor days 38 42 (4 days)

The current ratio has fallen slightly this year, largely attributable to the significant dividend declared to the holding company during the year. 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 LIMITED (REGISTERED NUMBER: 02335963)

STRATEGIC REPORT
for the year ended 31 January 2022

PRINCIPAL RISKS AND UNCERTAINTIES
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.

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 - Director


2 September 2022

SECOND CHANCE LIMITED (REGISTERED NUMBER: 02335963)

REPORT OF THE DIRECTORS
for the year ended 31 January 2022

The directors present their report with the financial statements of the company for the year ended 31 January 2022.

DIVIDENDS
An interim dividend of £17,711 per share was paid on 30 April 2021. The directors recommend that no final dividend be paid.

The total distribution of dividends for the year ended 31 January 2022 will be £ 1,594,000 .

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.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 February 2021 to the date of this report.

T P Daniels
Mrs C Daniels
P K Daniels
T B Daniels

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-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 directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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

SECOND CHANCE LIMITED (REGISTERED NUMBER: 02335963)

REPORT OF THE DIRECTORS
for the year ended 31 January 2022


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 - Director


2 September 2022

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

Opinion
We have audited the financial statements of Second Chance Limited (the 'company') for the year ended 31 January 2022 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the 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 company's affairs as at 31 January 2022 and of its 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 company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, 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 Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

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


Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

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, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page four, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

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 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 Wigley MSc ACA ATII (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 LIMITED (REGISTERED NUMBER: 02335963)

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 1,653,756 1,320,258
2,289,399 2,826,770

Other operating income 79,784 62,574
OPERATING PROFIT 5 2,369,183 2,889,344

Interest receivable and similar income 5,931 5,926
2,375,114 2,895,270

Interest payable and similar expenses 6 1,646 2,532
PROFIT BEFORE TAXATION 2,373,468 2,892,738

Tax on profit 7 467,714 550,490
PROFIT FOR THE FINANCIAL YEAR 1,905,754 2,342,248

SECOND CHANCE LIMITED (REGISTERED NUMBER: 02335963)

OTHER COMPREHENSIVE INCOME
for the year ended 31 January 2022

2022 2021
Notes £    £   

PROFIT FOR THE YEAR 1,905,754 2,342,248


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR
THE YEAR

1,905,754

2,342,248

SECOND CHANCE LIMITED (REGISTERED NUMBER: 02335963)

BALANCE SHEET
31 January 2022

2022 2021
Notes £    £   
FIXED ASSETS
Tangible assets 9 462,600 528,829

CURRENT ASSETS
Stocks 10 2,956,100 2,096,973
Debtors 11 1,445,312 1,968,548
Cash at bank 2,442,712 1,831,897
6,844,124 5,897,418
CREDITORS
Amounts falling due within one year 12 (2,307,031 ) (1,738,489 )
NET CURRENT ASSETS 4,537,093 4,158,929
TOTAL ASSETS LESS CURRENT
LIABILITIES

4,999,693

4,687,758

CREDITORS
Amounts falling due after more than one year 13 (443 ) (4,867 )

PROVISIONS FOR LIABILITIES 16 (32,648 ) (28,043 )
NET ASSETS 4,966,602 4,654,848

CAPITAL AND RESERVES
Called up share capital 17 90 90
Retained earnings 18 4,966,512 4,654,758
SHAREHOLDERS' FUNDS 4,966,602 4,654,848

The financial statements were approved by the Board of Directors and authorised for issue on 2 September 2022 and were signed on its behalf by:





P K Daniels - Director


SECOND CHANCE LIMITED (REGISTERED NUMBER: 02335963)

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 90 2,692,510 2,692,600

Changes in equity
Dividends - (380,000 ) (380,000 )
Total comprehensive income - 2,342,248 2,342,248
Balance at 31 January 2021 90 4,654,758 4,654,848

Changes in equity
Dividends - (1,594,000 ) (1,594,000 )
Total comprehensive income - 1,905,754 1,905,754
Balance at 31 January 2022 90 4,966,512 4,966,602

SECOND CHANCE LIMITED (REGISTERED NUMBER: 02335963)

CASH FLOW STATEMENT
for the year ended 31 January 2022

2022 2021
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 1,874,470 2,198,893
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 1,109,762 1,982,864

Cash flows from investing activities
Purchase of tangible fixed assets (15,043 ) (280,110 )
Sale of tangible fixed assets - 6,350
Interest received 5,931 5,926
Net cash from investing activities (9,112 ) (267,834 )

Cash flows from financing activities
Capital repayments in year (3,039 ) (3,143 )
Amount introduced by directors 177,267 203,600
Amount withdrawn by directors 111,397 (302,934 )
Movement on intercompany loan 818,540 425,906
Equity dividends paid (1,594,000 ) (380,000 )
Net cash from financing activities (489,835 ) (56,571 )

Increase in cash and cash equivalents 610,815 1,658,459
Cash and cash equivalents at beginning of
year

2

1,831,897

173,438

Cash and cash equivalents at end of year 2 2,442,712 1,831,897

SECOND CHANCE LIMITED (REGISTERED NUMBER: 02335963)

NOTES TO THE 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 2,373,468 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 )
2,450,455 2,922,615
Increase in stocks (859,127 ) (108,260 )
Decrease/(increase) in trade and other debtors 214,506 (603,981 )
Increase/(decrease) in trade and other creditors 68,636 (11,481 )
Cash generated from operations 1,874,470 2,198,893

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 1,831,897
Year ended 31 January 2021
31/1/21 1/2/20
£    £   
Cash and cash equivalents 1,831,897 231,774
Bank overdrafts - (58,336 )
1,831,897 173,438


3. ANALYSIS OF CHANGES IN NET FUNDS

At 1/2/21 Cash flow At 31/1/22
£    £    £   
Net cash
Cash at bank 1,831,897 610,815 2,442,712
1,831,897 610,815 2,442,712
Debt
Finance leases (8,641 ) 3,039 (5,602 )
(8,641 ) 3,039 (5,602 )
Total 1,823,256 613,854 2,437,110

SECOND CHANCE LIMITED (REGISTERED NUMBER: 02335963)

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

1. STATUTORY INFORMATION

Second Chance 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 Company 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.

Depreciation is not charged on leasehold buildings contrary to the provisions of FRS102 (effective January 2016). In the opinion of the directors the residual value of the properties is so high and the useful economic life so long that any depreciation is wholly immaterial.

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 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.


SECOND CHANCE LIMITED (REGISTERED NUMBER: 02335963)

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

2. ACCOUNTING POLICIES - continued
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.

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 company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Grants
During the year the company 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 company 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 company 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 company adopts the going concern basis in preparing the Financial Statements.

SECOND CHANCE LIMITED (REGISTERED NUMBER: 02335963)

NOTES TO THE 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 company'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 company 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 9.

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

SECOND CHANCE LIMITED (REGISTERED NUMBER: 02335963)

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

4. EMPLOYEES AND DIRECTORS - continued

2022 2021
£    £   
Directors' remuneration 69,012 30,627
Directors' 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. INTEREST PAYABLE AND SIMILAR EXPENSES
2022 2021
£    £   
Bank interest 347 1,791
Hire purchase 1,299 741
1,646 2,532

7. 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 LIMITED (REGISTERED NUMBER: 02335963)

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

7. 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 2,373,468 2,892,738
Profit multiplied by the standard rate of corporation tax in the UK of 19% (2021 -
19%)

450,959

549,620

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

8. DIVIDENDS
2022 2021
£    £   
Ordinary shares of £1 each
Interim 1,594,000 380,000

9. TANGIBLE FIXED ASSETS
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

SECOND CHANCE LIMITED (REGISTERED NUMBER: 02335963)

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

9. TANGIBLE FIXED ASSETS - continued

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

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

10. STOCKS
2022 2021
£    £   
Stocks 2,956,100 2,096,973

SECOND CHANCE LIMITED (REGISTERED NUMBER: 02335963)

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

11. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2022 2021
£    £   
Trade debtors 1,350,810 1,484,949
Other debtors 2,997 85,759
Directors' current accounts - 301,846
Tax - 6,884
Prepayments 91,505 89,110
1,445,312 1,968,548

12. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2022 2021
£    £   
Hire purchase contracts (see note 14) 5,159 3,774
Trade creditors 481,287 582,323
Amounts owed to group undertakings 1,244,447 425,906
Tax 243,993 550,831
Social security and other taxes 11,018 21,083
VAT 290,113 15,105
Other creditors 304 2,539
Directors' current accounts - 13,182
Accrued expenses 30,710 123,746
2,307,031 1,738,489

13. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
2022 2021
£    £   
Hire purchase contracts (see note 14) 443 4,867

14. LEASING AGREEMENTS

Minimum lease payments under hire purchase fall due as follows:

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 LIMITED (REGISTERED NUMBER: 02335963)

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

15. SECURED DEBTS

The following secured debts are included within creditors:

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

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

16. PROVISIONS FOR LIABILITIES
2022 2021
£    £   
Deferred tax 32,648 28,043

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%).

17. CALLED UP SHARE CAPITAL


Allotted, issued and fully paid:
Number: Class: Nominal 2022 2021
value: £    £   
90 Ordinary £1 90 90

18. RESERVES

Profit and loss account
The profit and loss account represents cumulative profits or losses net of dividends paid.

SECOND CHANCE LIMITED (REGISTERED NUMBER: 02335963)

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

19. DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to directors 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 (346,087 ) (165,480 )
Amounts written off - -
Amounts waived - -
Balance outstanding at end of year - 241,890

P K Daniels and Mrs C Daniels
Balance outstanding at start of year 59,954 65,032
Amounts advanced 70,294 156,505
Amounts repaid (130,248 ) (161,583 )
Amounts written off - -
Amounts waived - -
Balance outstanding at end of year - 59,954

The loans to the directors were unsecured and repayable on demand. Interest is payable at the HMRC rate applicable to beneficial loan arrangements.

20. RELATED PARTY DISCLOSURES

Entities with control, joint control or significant influence over the entity
2022 2021
£    £   
Transfers 775,459 -
Dividends paid 1,594,000 380,000
Amount due to related party 1,244,447 425,906

Key management personnel of the entity or its parent (in the aggregate)
2022 2021
£    £   
Rent paid 65,000 65,000

Other related parties
2022 2021
£    £   
Transfers (79,024 ) -
Rent paid 10,126 27,720
Amount due from related party - 79,024

21. POST BALANCE SHEET EVENTS

In June 2022, the company sold it's freehold property to Second Chance Group Limited for a consideration of £238,000.

SECOND CHANCE LIMITED (REGISTERED NUMBER: 02335963)

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

22. ULTIMATE CONTROLLING PARTY

Second Chance Group Limited is regarded by the directors as being the company's ultimate parent company.

Group financial statements are drawn up by this entity which has its registered off at 17 St Peters Place, Fleetwood, Lancashire FY7 6EB.