Company registration number 00254274 (England and Wales)
R. C. AUSTIN LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 28 JANUARY 2023
R. C. AUSTIN LIMITED
COMPANY INFORMATION
Directors
D C Austin
M E White
Secretary
M E White
Company number
00254274
Registered office
82 St John Street
London
EC1M 4JN
Auditor
Beavis Morgan Audit Limited
82 St John Street
London
EC1M 4JN
R. C. AUSTIN LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 6
Statement of income and retained earnings
7
Balance sheet
8
Statement of cash flows
9
Notes to the financial statements
10 - 22
R. C. AUSTIN LIMITED
STRATEGIC REPORT
FOR THE PERIOD ENDED 28 JANUARY 2023
- 1 -

The directors present the strategic report and financial statements for the period ended 28 January 2023.

Fair review of the business

As shown in the company's statement of income account on page 7, the company's sales have increased by 22% from the prior period. This positive result reflects a continued strong recovery from the impacts of COVID-19.

 

Competitive pressure in the UK is a continuing risk for the company, which could result in it losing sales to its key competitors. The company manages this risk by providing added value services to its customers, having fast response times not only in supplying products but in handling all customer queries, and by maintaining strong relationships with customers.

 

The company's gross profit margin has decreased to 44.9% from 46.9% in 2022, mainly as a result of rising costs in the industry. It is the intention of the company to continue to monitor closely its direct costs and implementing employee suggestions for improving efficiency of service.

 

During the year, a property was acquired for £1,101,971.


The CBIL loan £265,909 was repaid in full on 26/01/2023.

 

Environmental policy

 

The company recognises the importance of its environmental responsibilities, monitors its impact on the environment, and designs and implements policies to reduce any damage that might be caused by the company's activities. Initiatives designed to minimise the company's impact on the environment include the safe disposal of waste, recycling renewable materials, producing electricity through extensive use of solar panels, and the change of lighting to LED, now virtually 100% complete, with savings of up to 75% in kwh used and an equivalent reduction in carbon emissions.

Principal risks and uncertainties

Liquidity risk

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

Credit risk

Investments of cash surpluses and borrowings are made through banks which must fulfil credit rating criteria approved by the Board.

 

All customers who wish to trade on credit terms are subject to credit verification procedures. They are monitored on an ongoing basis and provision is made for doubtful debts where necessary.

On behalf of the board

D C Austin
Director
26 September 2023
R. C. AUSTIN LIMITED
DIRECTORS' REPORT
FOR THE PERIOD ENDED 28 JANUARY 2023
- 2 -

The directors present their report and financial statements for the period ended 28 January 2023.

Principal activities

The principal activity of the company continued to be that of a department store. There have not been any significant changes in the principal activities in the period under review. The directors are not aware, at the date of this report, of any likely major changes in the company's activities in the next period.

Directors

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

D C Austin
M E White
Results and dividends

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

Ordinary dividends were paid amounting to £2,002.

Statement of disclosure to auditor
The directors confirm that so far as they are aware, there is no relevant audit information of which the company's auditors are unaware. They have taken all the steps that they ought to have taken as directors in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information.
On behalf of the board
D C Austin
Director
26 September 2023
R. C. AUSTIN LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE PERIOD ENDED 28 JANUARY 2023
- 3 -

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial period. 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 judgments 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.

R. C. AUSTIN LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF R. C. AUSTIN LIMITED
- 4 -
Opinion

We have audited the financial statements of R. C. Austin Limited (the 'company') for the period ended 28 January 2023, which comprise the statement of income and retained earnings, the balance sheet, the statement of cash flows, and 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 FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

 

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

 

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

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

R. C. AUSTIN LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF R. C. AUSTIN LIMITED
- 5 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report and the directors' report.

 

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:

 

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

R. C. AUSTIN LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF R. C. AUSTIN LIMITED
- 6 -
Extent to which the audit was considered capable of detecting irregularities, including fraud

Discussions with and enquiries of management and those charged with governance were held with a view to identifying those laws and regulations that could be expected to have a material impact on the financial statements. During the engagement team briefing, the outcomes of these discussions and enquiries were shared with the team, as well as consideration as to where and how fraud may occur in the entity.

 

The following laws and regulations were identified as being of significance to the entity:

 

 

 

Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised of: inquiries of management and those charged with governance as to whether the entity complies with such laws and regulations; enquiries with the same concerning any actual or potential litigation or claims; inspection of relevant legal correspondence; review of board minutes; testing the appropriateness of journal entries; and the performance of analytical review to identify unexpected movements in account balances which may be indicative of fraud.

 

No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity’s controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Matthew Burge
Senior Statutory Auditor
For and on behalf of Beavis Morgan Audit Limited
2 October 2023
Chartered Accountants
Statutory Auditor
82 St John Street
London
EC1M 4JN
R. C. AUSTIN LIMITED
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE PERIOD ENDED 28 JANUARY 2023
- 7 -
Period
Period
ended
ended
28 January
29 January
2023
2022
Notes
£
£
Turnover
3
6,473,741
5,311,433
Cost of sales
(3,564,711)
(2,817,275)
Gross profit
2,909,030
2,494,158
Distribution costs
(1,159,702)
(1,090,311)
Administrative expenses
(1,419,228)
(1,204,967)
Other operating income
3
95,089
312,183
Operating profit
4
425,189
511,063
Interest receivable and similar income
449
89
Interest payable and similar expenses
7
(27,270)
(30,129)
Profit before taxation
398,368
481,023
Taxation
8
(87,467)
(128,935)
Profit for the financial period
310,901
352,088
Retained earnings brought forward
5,997,441
5,647,549
Dividends
9
(2,002)
(2,196)
Retained earnings carried forward
6,306,340
5,997,441

The Statement of Income and Retained Earnings has been prepared on the basis that all operations are continuing operations.

R. C. AUSTIN LIMITED
BALANCE SHEET
AS AT
28 JANUARY 2023
28 January 2023
- 8 -
28 January 2023
29 January 2022
Notes
£
£
£
£
Fixed assets
Tangible assets
10
6,299,684
5,392,827
Current assets
Stocks
11
876,616
749,260
Debtors
12
98,756
108,024
Cash at bank and in hand
880,922
1,833,885
1,856,294
2,691,169
Creditors: amounts falling due within one year
13
(1,440,549)
(1,324,659)
Net current assets
415,745
1,366,510
Total assets less current liabilities
6,715,429
6,759,337
Creditors: amounts falling due after more than one year
15
(180,263)
(518,844)
Provisions for liabilities
Provisions
16
47,827
47,827
Deferred tax liability
17
133,999
148,225
(181,826)
(196,052)
Net assets
6,353,340
6,044,441
Capital and reserves
Called up share capital
19
940
940
Capital redemption reserve
20
46,060
46,060
Profit and loss reserves
6,306,340
5,997,441
Total equity
6,353,340
6,044,441
The financial statements were approved by the board of directors and authorised for issue on 26 September 2023 and are signed on its behalf by:
D C Austin
Director
Company registration number 00254274 (England and Wales)
R. C. AUSTIN LIMITED
STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 28 JANUARY 2023
- 9 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
24
736,509
1,401,728
Interest paid
(27,270)
(30,129)
Income taxes paid
(119,668)
(25,962)
Net cash inflow from operating activities
589,571
1,345,637
Investing activities
Purchase of tangible fixed assets
(1,142,292)
(28,121)
Proceeds on disposal of tangible fixed assets
1,854
4,999
Proceeds from other investments and loans
20,000
5,000
Interest received
449
89
Net cash used in investing activities
(1,119,989)
(18,033)
Financing activities
Repayment of other loans
(50,977)
(48,694)
Repayment of bank loans
(368,576)
(105,753)
Dividends paid
(2,002)
(2,196)
Net cash used in financing activities
(421,555)
(156,643)
Net (decrease)/increase in cash and cash equivalents
(951,973)
1,170,961
Cash and cash equivalents at beginning of period
1,832,895
661,934
Cash and cash equivalents at end of period
880,922
1,832,895
Relating to:
Cash at bank and in hand
880,922
1,833,885
Bank overdrafts included in creditors payable within one year
-
0
(990)
R. C. AUSTIN LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 28 JANUARY 2023
- 10 -
1
Accounting policies
Company information

R. C. Austin Limited is a private company limited by shares incorporated in England and Wales. The registered office is 82 St John Street, London, EC1M 4JN. The principal place of business is 6-8 Courtenay Street, Devon, TQ12 2DU.

1.1
Accounting convention

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

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

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

1.2
Going concern
The financial statements have been prepared on the going concern basis and the directors consider that it is appropriate to do so.true
1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts, customer loyalty points, and volume rebates. Customer loyalty points held for use against future sales are recognised as a provision.

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

1.4
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their estimated residual values over their useful lives on the following bases:

Land Freehold
Not depreciated
Buildings Freehold
2% straight line
Fixtures, fittings & equipment
10, 20 or 33% straight line
Motor vehicles
25% reducing balance

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

R. C. AUSTIN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 28 JANUARY 2023
1
Accounting policies
(Continued)
- 11 -
1.5
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.6
Cash at bank and in hand

Cash at bank and in hand are basic financial assets and include cash in hand, deposits held at call with banks and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.7
Financial instruments

The company 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 company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

R. C. AUSTIN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 28 JANUARY 2023
1
Accounting policies
(Continued)
- 12 -
Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

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

 

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

Derecognition of financial liabilities

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

1.8
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.9
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the period. Taxable profit differs from net profit as reported in the statement of income and retained earnings because it excludes items of income or expense that are taxable or deductible in other periods and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax
Provision is made in full for all taxation deferred in respect of timing differences that have originated but not reversed by the balance sheet date, except for timing differences arising on revaluations of fixed assets which are not intended to be sold and gains on disposal of fixed assets which will be rolled over into replacement assets. No provision is made for taxation on permanent differences.

Deferred tax assets are recognised to the extent that it is more likely than not that they will be recovered.
R. C. AUSTIN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 28 JANUARY 2023
1
Accounting policies
(Continued)
- 13 -
1.10
Provisions

Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

 

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

1.11
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.12
Retirement benefits

The company operates a defined contribution scheme for the benefit of its employees. Contributions payable are charged to the statement of income in the period they are payable.

1.13
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

1.14
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

2
Judgements and key sources of estimation uncertainty

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

 

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

R. C. AUSTIN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 28 JANUARY 2023
2
Judgements and key sources of estimation uncertainty
(Continued)
- 14 -
Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows:

Estimation of the useful lives of tangible assets

Estimation is required in determining the useful lives of such assets and their residual values.

3
Turnover and other revenue

An analysis of the company's turnover is as follows:

2023
2022
£
£
Turnover analysed by class of business
Non food
5,884,403
4,914,150
Food
478,390
305,400
Commissions received as turnover
268,004
218,283
Discounts allowed
(157,056)
(126,400)
6,473,741
5,311,433
2023
2022
£
£
Turnover analysed by geographical market
UK
6,473,741
5,311,433
2023
2022
£
£
Other operating income
Rental income
86,770
12,800
Interest income
8,319
8,360
Other grants
-
96,856
Coronavirus job retention scheme grant
-
194,167
95,089
312,183
4
Operating profit
2023
2022
Operating profit for the period is stated after charging/(crediting):
£
£
Government grants
-
(291,023)
Fees payable to the company's auditor for the audit of the company's financial statements
26,697
25,174
Depreciation of owned tangible fixed assets
225,180
219,480
Profit on disposal of tangible fixed assets
(10,599)
(1,820)
Operating lease charges
90,500
88,077
R. C. AUSTIN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 28 JANUARY 2023
- 15 -
5
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
118,807
108,403
Company pension contributions to defined contribution schemes
1,321
1,240
120,128
109,643
6
Employees
The average monthly number of persons (including directors) employed by the company during the period was:
2023
2022
Number
Number
Office and management
15
16
Sales and ancillary staff
73
66
Total
88
82

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
1,441,929
1,302,663
Social security costs
87,805
75,356
Pension costs
41,435
19,466
1,571,169
1,397,485
Redundancy payments made or committed
19,000
31,688
7
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank loans
21,426
21,643
Interest on other loans
5,844
8,486
27,270
30,129
R. C. AUSTIN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 28 JANUARY 2023
- 16 -
8
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
101,197
119,172
Adjustments in respect of prior periods
496
(10,757)
Total current tax
101,693
108,415
Deferred tax
Origination and reversal of timing differences
(14,226)
20,520
Total tax charge
87,467
128,935
The charge for the period can be reconciled to the profit per the statement of income account as follows:
2023
2022
£
£
Profit before taxation
398,368
481,023
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
75,690
91,394
Tax effect of expenses that are not deductible in determining taxable profit
83
162
Adjustments in respect of prior periods
-
0
(10,757)
Depreciation in excess of capital allowances
14,695
12,974
Other permanent differences
-
0
(90)
Changes in deferred tax rate
(3,001)
35,252
Tax expense for the period
87,467
128,935
9
Dividends
2023
2022
£
£
Final paid
2,002
2,196
R. C. AUSTIN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 28 JANUARY 2023
- 17 -
10
Tangible fixed assets
Land and buildings freehold
Land and buildings Leasehold improvements
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 30 January 2022
5,498,636
187,376
5,311,653
83,070
11,080,735
Additions
1,101,971
-
0
40,321
-
0
1,142,292
Disposals
-
0
-
0
(2,100)
(28,000)
(30,100)
At 28 January 2023
6,600,607
187,376
5,349,874
55,070
12,192,927
Depreciation and impairment
At 30 January 2022
351,148
187,376
5,080,511
68,873
5,687,908
Depreciation charge in the period
89,327
-
0
134,965
888
225,180
Eliminated in respect of disposals
-
0
-
0
(706)
(19,139)
(19,845)
At 28 January 2023
440,475
187,376
5,214,770
50,622
5,893,243
Carrying amount
At 28 January 2023
6,160,132
-
0
135,104
4,448
6,299,684
At 29 January 2022
5,147,488
-
0
231,142
14,197
5,392,827
11
Stocks
2023
2022
£
£
Finished goods and goods for resale
876,616
749,260
12
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
68,638
39,116
Corporation tax recoverable
5,988
5,988
Other debtors
24,130
62,920
98,756
108,024
R. C. AUSTIN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 28 JANUARY 2023
- 18 -
13
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Bank loans and overdraft
14
20,868
105,616
Other loans
14
53,763
50,977
Trade creditors
821,091
677,248
Corporation tax
101,197
119,172
Other taxation and social security
298,102
248,952
Other creditors
104,575
95,441
Accruals and deferred income
40,953
27,253
1,440,549
1,324,659
14
Loans and overdrafts
2023
2022
£
£
Bank loans
173,158
541,734
Bank overdrafts
-
0
990
Other loans
81,736
132,713
254,894
675,437
Payable within one year
74,631
156,593
Payable after one year
180,263
518,844

The bank overdraft facility is secured by a first legal charge over the freehold property,

 

Bank loans include a floating interest rate loan. The loan is repayable in equal monthly instalments until the date of maturity in May 2029. Interest is charged at 3.8% above base rate p.a., capped at 4.75% until May 2024. At the balance sheet date, £173,158 (2022: £194,007) was outstanding in respect of this loan.

 

Fixed and floating charges over all assets and undertakings of the company are held in favour of Lloyds Bank Plc in regards to the above bank loans.

 

Other loans relate to a loan from R. C. Austin 1990 Pension Plan. The loan is repayable in equal monthly instalments until the date of maturity in June 2024. The interest rate is fixed at 5% p.a. At the balance sheet date, £81,736 (2022: £132,713) was outstanding in respect of this loan.

 

A fixed charge over Unit 6, Site B, Minerva Business Park, Brunel Road, Newton Abbot is held in favour of The Trustees of R. C. Austin 1990 Pension Plan in regards to the above loan.

R. C. AUSTIN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 28 JANUARY 2023
- 19 -
15
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Bank loans
14
152,290
437,108
Other loans
14
27,973
81,736
180,263
518,844
16
Provisions for liabilities
2023
2022
£
£
Customer loyalty points provision
47,827
47,827
Deferred tax liabilities
17
133,999
148,225
181,826
196,052
Customer loyalty points provision arises from loyalty points issued to customers as rewards on purchases made which can be redeemed against future purchases to earn discounts. Loyalty points are cancelled if not used within 12 months of issue, which gives some level of uncertainty over the amount and timing of the redemption.
17
Deferred taxation

Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
133,999
148,225
2023
Movements in the period:
£
Liability at 30 January 2022
148,225
Credit to profit or loss
(14,226)
Liability at 28 January 2023
133,999

The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.

R. C. AUSTIN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 28 JANUARY 2023
- 20 -
18
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
41,435
19,466

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

19
Share capital
2023
2022
£
£
Issued and fully paid
18,800 Ordinary shares of 5p each
940
940
20
Capital redemption reserve
2023
2022
£
£
At beginning and end of the period
46,060
46,060
21
Operating lease commitments
Lessee

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

2023
2022
£
£
Within one year
90,500
90,500
Between two and five years
110,066
199,900
200,566
290,400
Lessor

At the reporting end date the company had contracted with tenants for the following minimum lease payments:

2023
2022
£
£
Within one year
81,500
-
0
Between two and five years
185,879
-
0
267,379
-
0
R. C. AUSTIN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 28 JANUARY 2023
- 21 -
22
Related party transactions
Remuneration of key management personnel

Key management personnel are considered to be the directors only. Disclosure of their compensation has been included in note 5 to the financial statements.

Related party balances and transactions

 

At the balance sheet date the company owed D C Austin, a director £4,064 (2022: £2,604).

 

During the period, the company paid £30,500 (2022: £28,077) for the rental of a warehouse from R. C. Austin 1990 Pension Plan. The directors are the trustees and beneficiaries. During the period, the company paid £60,000 (2022: £60,000) for the rental of 15-21 Wolborough Street, Newton Abbot from Nemaha Management Limited, a company incorporated in the British Virgin Islands and wholly owned by the company's Employee Benefit Trust.

 

At the balance sheet date the company held a loan from The Trustees of the R.C. Austin 1990 Pension Plan, the balance owing at the end of the period was £81,736 (2022: £132,712). Interest of £5,844 (2022: £8,486) was payable in respect of the period.

 

During the period, ordinary dividends totaling £2,002 (2022: £2,196) were paid to the directors.

23
Ultimate controlling party

The ultimate controlling party is D C Austin, a director, by virtue of his majority shareholding.

24
Cash generated from operations
2023
2022
£
£
Profit for the period after tax
310,901
352,088
Adjustments for:
Taxation charged
87,467
128,935
Finance costs
27,270
30,129
Investment income
(449)
(89)
Loss/(gain) on disposal of tangible fixed assets
8,401
(1,820)
Depreciation and impairment of tangible fixed assets
225,180
219,480
Movements in working capital:
(Increase)/decrease in stocks
(127,356)
43,522
(Increase)/decrease in debtors
(10,732)
58,566
Increase in creditors
215,827
570,917
Cash generated from operations
736,509
1,401,728
R. C. AUSTIN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 28 JANUARY 2023
- 22 -
25
Analysis of changes in net funds
30 January 2022
Cash flows
28 January 2023
£
£
£
Cash at bank and in hand
1,833,885
(952,963)
880,922
Bank overdrafts
(990)
990
-
0
1,832,895
(951,973)
880,922
Borrowings excluding overdrafts
(674,447)
419,553
(254,894)
1,158,448
(532,420)
626,028
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