REGISTERED NUMBER: 03068928 (England and Wales) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTOR AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31ST DECEMBER 2022 |
FOR |
DAUNT BOOKS LIMITED |
REGISTERED NUMBER: 03068928 (England and Wales) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTOR AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31ST DECEMBER 2022 |
FOR |
DAUNT BOOKS LIMITED |
DAUNT BOOKS LIMITED (REGISTERED NUMBER: 03068928) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31ST DECEMBER 2022 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Director | 3 |
Report of the Independent Auditors | 4 |
Consolidated Profit and Loss Account | 7 |
Consolidated Balance Sheet | 8 |
Company Balance Sheet | 9 |
Consolidated Statement of Changes in Equity | 10 |
Company Statement of Changes in Equity | 11 |
Consolidated Cash Flow Statement | 12 |
Notes to the Consolidated Cash Flow Statement | 13 |
Notes to the Consolidated Financial Statements | 14 |
DAUNT BOOKS LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31ST DECEMBER 2022 |
DIRECTOR: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants |
Statutory Auditors |
First Floor, Jebsen House |
53-61 High Street |
Ruislip |
Middlesex |
HA4 7BD |
DAUNT BOOKS LIMITED (REGISTERED NUMBER: 03068928) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31ST DECEMBER 2022 |
The director presents his strategic report of the company and the group for the year ended 31st December 2022. |
REVIEW OF BUSINESS |
The business is in robust health and remains very well run, continuing to benefit from a loyal and expanding base of customers. The bookshops enjoy an excellent reputation within their communities and good relationships with both its suppliers and landlords. The major risk to the business is the reimposition of mandatory closure in consequence of another pandemic. |
Relevant Key Performance Indicators for the business are: |
Key Performance Indicator | 2022 | 2021 |
Turnover | £13,132,101 | £9,023,798 |
Gross Profit | £5,657,821 | £4,092,248 |
Gross Profit Margin (%) | 43.0% | 45.3% |
Operating Profit | £427,198 | £1,379,868 |
Shareholders' Funds | £6,742,749 | £6,477,744 |
PRINCIPAL RISKS AND UNCERTAINTIES |
The new risk stems from the current economic climate and whatever that may bring in terms of potential sales falling due to a reduction in disposable income and a potential higher taxation burden on the company. the careful running of the company, however, means that we are in a strong position going into this, and we remain confident that we will be able to navigate the impacts of the worsening recession. |
The group remains independently owned by the Daunt family and it is expected that meanwhile James Daunt will continue as CEO of both the Waterstones and Barnes & Noble bookselling businesses. |
ON BEHALF OF THE BOARD: |
DAUNT BOOKS LIMITED (REGISTERED NUMBER: 03068928) |
REPORT OF THE DIRECTOR |
FOR THE YEAR ENDED 31ST DECEMBER 2022 |
The director presents his report with the financial statements of the company and the group for the year ended 31st December 2022. |
DIVIDENDS |
No dividends will be distributed for the year ended 31st December 2022. |
DIRECTOR |
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. |
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 |
Under section 487(2) of the Companies Act 2006, Sproull & Co., Chartered Accountants and Statutory Auditors, are deemed to be reappointed as auditors. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
DAUNT BOOKS LIMITED |
Opinion |
We have audited the financial statements of Daunt Books Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31st December 2022 which comprise the Consolidated Profit and Loss Account, 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 31st December 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 |
DAUNT BOOKS 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 three, 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: |
The senior statutory auditor led a discussion with all members of the engagement team regarding the susceptibility of the company's financial statements to material misstatement, including how fraud might occur. The areas identified in this discussion were: |
- | Manipulation or error in the calculation of deferred and accrued income leading to the overstatement or understatement of net income; |
- | Manipulation or error in existence and/or duplication of number of candidates placed on a job leading to overstatement or understatement of net income. |
The procedures we carried out to gain sufficient appropriate audit evidence in the above areas included: |
- | Identifying and assessing the design effectiveness of controls which management has in place to prevent and detect fraud and error; |
- | Understanding the potential for override of these controls on the financial reporting process, and how those charged with governance address these override potentials; |
- | Performing tests of controls and substantive testing on appropriate samples; |
- | Documenting the assumptions and judgements made by management in their significant accounting estimates and challenging these with management; |
- | Identifying and testing journal entries, in particular those around the year-end, and those involving unusual postings, account combinations or amounts. |
Overall, the senior statutory auditor was satisfied that the engagement team collectively had the appropriate competence and capabilities to identify or recognise irregularities. In particular, the senior statutory auditor has a number of years' experience in dealing with similar Employment Agency businesses and preparing accounts under FRS 102. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
DAUNT BOOKS LIMITED |
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. |
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. |
for and on behalf of |
Chartered Accountants |
Statutory Auditors |
First Floor, Jebsen House |
53-61 High Street |
Ruislip |
Middlesex |
HA4 7BD |
DAUNT BOOKS LIMITED (REGISTERED NUMBER: 03068928) |
CONSOLIDATED PROFIT AND LOSS ACCOUNT |
FOR THE YEAR ENDED 31ST DECEMBER 2022 |
2022 | 2021 |
Notes | £ | £ |
TURNOVER | 3 | 13,132,101 | 9,023,798 |
Cost of sales | 7,474,280 | 4,931,550 |
GROSS PROFIT | 5,657,821 | 4,092,248 |
Administrative expenses | 5,230,623 | 3,095,185 |
427,198 | 997,063 |
Other operating income | - | 382,805 |
OPERATING PROFIT | 5 | 427,198 | 1,379,868 |
Interest receivable and similar income | 9,249 | 261 |
436,447 | 1,380,129 |
Interest payable and similar expenses | 6 | - | 44 |
PROFIT BEFORE TAXATION | 436,447 | 1,380,085 |
Tax on profit | 7 | 171,441 | 280,913 |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
265,006 |
1,099,172 |
Profit attributable to: |
Owners of the parent | 265,005 | 1,099,167 |
Non-controlling interests | 1 | 5 |
265,006 | 1,099,172 |
Total comprehensive income attributable to: |
Owners of the parent | 265,005 | 1,099,167 |
Non-controlling interests | 1 | 5 |
265,006 | 1,099,172 |
DAUNT BOOKS LIMITED (REGISTERED NUMBER: 03068928) |
CONSOLIDATED BALANCE SHEET |
31ST DECEMBER 2022 |
2022 | 2021 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 10 | - | - |
Tangible assets | 11 | 1,533,441 | 1,564,743 |
Investments | 12 | - | - |
1,533,441 | 1,564,743 |
CURRENT ASSETS |
Stocks | 13 | 1,224,254 | 1,550,700 |
Debtors | 14 | 1,700,165 | 1,299,004 |
Cash at bank | 4,333,717 | 3,355,344 |
7,258,136 | 6,205,048 |
CREDITORS |
Amounts falling due within one year | 15 | 1,839,876 | 1,292,018 |
NET CURRENT ASSETS | 5,418,260 | 4,913,030 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
6,951,701 |
6,477,773 |
PROVISIONS FOR LIABILITIES | 18 | 208,922 | - |
NET ASSETS | 6,742,779 | 6,477,773 |
CAPITAL AND RESERVES |
Called up share capital | 19 | 2 | 2 |
Retained earnings | 6,742,747 | 6,477,742 |
SHAREHOLDERS' FUNDS | 6,742,749 | 6,477,744 |
NON-CONTROLLING INTERESTS | 30 | 29 |
TOTAL EQUITY | 6,742,779 | 6,477,773 |
The financial statements were approved by the director and authorised for issue on 5th October 2023 and were signed by: |
A J Daunt - Director |
DAUNT BOOKS LIMITED (REGISTERED NUMBER: 03068928) |
COMPANY BALANCE SHEET |
31ST DECEMBER 2022 |
2022 | 2021 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 10 |
Tangible assets | 11 |
Investments | 12 |
CURRENT ASSETS |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 15 |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CAPITAL AND RESERVES |
Called up share capital | 19 |
Retained earnings |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | - | - |
The financial statements were approved by the director and authorised for issue on |
DAUNT BOOKS LIMITED (REGISTERED NUMBER: 03068928) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31ST DECEMBER 2022 |
Called up |
share | Retained | Non-controlling | Total |
capital | earnings | Total | interests | equity |
£ | £ | £ | £ | £ |
Balance at 1st January 2021 | 2 | 5,378,575 | 5,378,577 | 24 | 5,378,601 |
Changes in equity |
Total comprehensive income | - | 1,099,167 | 1,099,167 | 5 | 1,099,172 |
Balance at 31st December 2021 | 2 | 6,477,742 | 6,477,744 | 29 | 6,477,773 |
Changes in equity |
Total comprehensive income | - | 265,005 | 265,005 | 1 | 265,006 |
Balance at 31st December 2022 | 2 | 6,742,747 | 6,742,749 | 30 | 6,742,779 |
DAUNT BOOKS LIMITED (REGISTERED NUMBER: 03068928) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31ST DECEMBER 2022 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1st January 2021 |
Changes in equity |
Balance at 31st December 2021 |
Changes in equity |
Balance at 31st December 2022 |
DAUNT BOOKS LIMITED (REGISTERED NUMBER: 03068928) |
CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31ST DECEMBER 2022 |
2022 | 2021 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 1,333,683 | 556,488 |
Interest paid | - | (44 | ) |
Tax paid | (280,913 | ) | (97,754 | ) |
Net cash from operating activities | 1,052,770 | 458,690 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (83,646 | ) | (823 | ) |
Interest received | 9,249 | 261 |
Net cash from investing activities | (74,397 | ) | (562 | ) |
Cash flows from financing activities |
Government grants | - | 382,805 |
Net cash from financing activities | - | 382,805 |
Increase in cash and cash equivalents | 978,373 | 840,933 |
Cash and cash equivalents at beginning of year |
2 |
3,355,344 |
2,514,411 |
Cash and cash equivalents at end of year | 2 | 4,333,717 | 3,355,344 |
DAUNT BOOKS LIMITED (REGISTERED NUMBER: 03068928) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31ST DECEMBER 2022 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2022 | 2021 |
£ | £ |
Profit before taxation | 436,447 | 1,380,085 |
Depreciation charges | 102,489 | 111,776 |
Loss on disposal of fixed assets | 12,459 | - |
Government grants | - | (382,805 | ) |
Finance costs | - | 44 |
Finance income | (9,249 | ) | (261 | ) |
542,146 | 1,108,839 |
Decrease in stocks | 326,446 | 137,757 |
Increase in trade and other debtors | (281,161 | ) | (404,099 | ) |
Increase/(decrease) in trade and other creditors | 746,252 | (286,009 | ) |
Cash generated from operations | 1,333,683 | 556,488 |
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 31st December 2022 |
31.12.22 | 1.1.22 |
£ | £ |
Cash and cash equivalents | 4,333,717 | 3,355,344 |
Year ended 31st December 2021 |
31.12.21 | 1.1.21 |
£ | £ |
Cash and cash equivalents | 3,355,344 | 2,514,411 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.1.22 | Cash flow | At 31.12.22 |
£ | £ | £ |
Net cash |
Cash at bank | 3,355,344 | 978,373 | 4,333,717 |
3,355,344 | 978,373 | 4,333,717 |
Total | 3,355,344 | 978,373 | 4,333,717 |
DAUNT BOOKS LIMITED (REGISTERED NUMBER: 03068928) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31ST DECEMBER 2022 |
1. | STATUTORY INFORMATION |
Daunt Books Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Basis of consolidation |
The group financial statements consolidate the financial statements of Daunt Books Limited and its subsidiary. |
Related party exemption |
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. |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Goodwill |
Goodwill relating to the acquisition of a subsidiary in 1995 has been amortised on a straight line basis over 5 years. |
Goodwill relating to the acquisition of a business in 2010 was written off in full in the year of acquisition. |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
Tangible fixed assets |
Freehold property | - |
Improvements to property | - |
Fixtures and fittings | - |
Computer equipment | - |
Freehold property is depreciated over its estimated useful economic life after taking the residual value of the assets into consideration. The directors consider the residual value of the company's freehold property to be in excess of the original cost and consequently no depreciation is provided. |
The residual value of the company's assets and whether the value has been impaired are considered by the director on an annual basis. |
DAUNT BOOKS LIMITED (REGISTERED NUMBER: 03068928) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2022 |
2. | ACCOUNTING POLICIES - continued |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Financial instruments |
Financial instruments are classified according to the substance of the financial instrument's contractual obligations, as financial assets, financial liabilities or equity instruments. |
Financial instruments are initially measured at transaction price (after deducting transaction costs) and subsequently held at amortised cost. |
Taxation |
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. |
Hire purchase and leasing commitments |
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 contributes to personal pension schemes for employees. The assets of the schemes are held independently of the company by an insurance company. The amount charged to the profit and loss account is the contributions payable in the year. |
3. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the group. |
4. | EMPLOYEES AND DIRECTORS |
2022 | 2021 |
£ | £ |
Wages and salaries | 2,681,125 | 1,624,449 |
Social security costs | 305,321 | 156,538 |
Other pension costs | 43,067 | 40,652 |
3,029,513 | 1,821,639 |
The average number of employees during the year was as follows: |
2022 | 2021 |
Directors | 1 | 1 |
Management and senior staff | 5 | 4 |
Retail staff | 75 | 56 |
2022 | 2021 |
£ | £ |
Director's remuneration | - | - |
DAUNT BOOKS LIMITED (REGISTERED NUMBER: 03068928) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2022 |
5. | OPERATING PROFIT |
The operating profit is stated after charging: |
2022 | 2021 |
£ | £ |
Other operating leases | 940,705 | 632,125 |
Depreciation - owned assets | 102,489 | 111,776 |
Loss on disposal of fixed assets | 12,459 | - |
Auditors' remuneration | 18,400 | 23,500 |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2022 | 2021 |
£ | £ |
Interest on overdue tax | - | 44 |
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 | 82,519 | 280,913 |
Deferred tax | 88,922 | - |
Tax on profit | 171,441 | 280,913 |
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 | 436,447 | 1,380,085 |
Profit multiplied by the standard rate of corporation tax in the UK of 19 % (2021 - 19 %) |
82,925 |
262,216 |
Effects of: |
Expenses not deductible for tax purposes | 2,758 | 73 |
Capital allowances in excess of depreciation | (3,164 | ) | - |
Depreciation in excess of capital allowances | - | 18,624 |
Deferred tax provision | 88,922 | - |
Total tax charge | 171,441 | 280,913 |
DAUNT BOOKS LIMITED (REGISTERED NUMBER: 03068928) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2022 |
8. | INDIVIDUAL PROFIT AND LOSS ACCOUNT |
As permitted by Section 408 of the Companies Act 2006, the Profit and Loss Account of the parent company is not presented as part of these financial statements. |
9. | GOVERNMENT GRANTS |
Included within Other Operating Income are amounts the group has recognised as government grants, as follows: |
2022 | 2021 |
£ | £ |
Coronavirus Job Retention Scheme | - | 160,082 |
Retail, Hospitality and Leisure Grant Fund | - | 222,723 |
- | 382,805 |
10. | INTANGIBLE FIXED ASSETS |
Group |
Goodwill |
£ |
COST |
At 1st January 2022 |
and 31st December 2022 | 86,946 |
AMORTISATION |
At 1st January 2022 |
and 31st December 2022 | 86,946 |
NET BOOK VALUE |
At 31st December 2022 | - |
At 31st December 2021 | - |
DAUNT BOOKS LIMITED (REGISTERED NUMBER: 03068928) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2022 |
11. | TANGIBLE FIXED ASSETS |
Group |
Fixtures |
Freehold | Improvements | and | Computer |
property | to property | fittings | equipment | Totals |
£ | £ | £ | £ | £ |
COST |
At 1st January 2022 | 1,018,043 | 1,592,421 | 488,044 | 93,393 | 3,191,901 |
Additions | - | - | 77,030 | 6,616 | 83,646 |
Disposals | - | - | (261,439 | ) | (91,946 | ) | (353,385 | ) |
At 31st December 2022 | 1,018,043 | 1,592,421 | 303,635 | 8,063 | 2,922,162 |
DEPRECIATION |
At 1st January 2022 | - | 1,073,050 | 463,124 | 90,984 | 1,627,158 |
Charge for year | - | 96,624 | 5,338 | 527 | 102,489 |
Eliminated on disposal | - | - | (250,352 | ) | (90,574 | ) | (340,926 | ) |
At 31st December 2022 | - | 1,169,674 | 218,110 | 937 | 1,388,721 |
NET BOOK VALUE |
At 31st December 2022 | 1,018,043 | 422,747 | 85,525 | 7,126 | 1,533,441 |
At 31st December 2021 | 1,018,043 | 519,371 | 24,920 | 2,409 | 1,564,743 |
12. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1st January 2022 |
and 31st December 2022 |
NET BOOK VALUE |
At 31st December 2022 |
At 31st December 2021 |
DAUNT BOOKS LIMITED (REGISTERED NUMBER: 03068928) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2022 |
12. | FIXED ASSET INVESTMENTS - continued |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiary |
Registered office: 83 Marylebone High Street, London, W1U 4QW |
Nature of business: |
% |
Class of shares: | holding |
13. | STOCKS |
Group |
2022 | 2021 |
£ | £ |
Finished goods | 1,224,254 | 1,550,700 |
14. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group |
2022 | 2021 |
£ | £ |
Trade debtors | 98,693 | 64,703 |
Other debtors | 199,425 | 79,425 |
VAT | 1,148,172 | 920,775 |
Prepayments | 253,875 | 234,101 |
1,700,165 | 1,299,004 |
15. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2022 | 2021 | 2022 | 2021 |
£ | £ | £ | £ |
Trade creditors | 938,928 | 571,100 |
Amounts owed to group undertakings | - | - |
Taxation | 82,519 | 280,913 |
Social security and other taxes | 623,311 | 62,143 |
Other creditors | 138,763 | 147,476 |
Directors' current accounts | 813 | 813 | - | - |
Accrued expenses | 55,542 | 229,573 |
1,839,876 | 1,292,018 |
DAUNT BOOKS LIMITED (REGISTERED NUMBER: 03068928) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2022 |
16. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Non-cancellable |
operating leases |
2022 | 2021 |
£ | £ |
Within one year | 770,550 | 705,948 |
Between one and five years | 979,971 | 1,267,854 |
1,750,521 | 1,973,802 |
The operating lease commitments relate to the properties from which the business trades. These operating leases are subject to periodic rent reviews, though break clauses are available as these reviews fall due. |
The operating lease commitments shown above are the total amounts payable up to each break clause. |
17. | FINANCIAL INSTRUMENTS |
Categorisation of financial instruments |
2022 | 2021 |
£ | £ |
Financial assets that are debt instruments measured at amortised cost | 4,432,410 | 3,420,047 |
Financial liabilities measured at amortised cost | 1,133,233 | 948,149 |
Financial assets measured at amortised cost comprises cash and trade debtors. |
Financial liabilities measured at amortised cost comprises trade creditors, accrued expenses and other creditors. |
18. | PROVISIONS FOR LIABILITIES |
Group |
2022 | 2021 |
£ | £ |
Deferred taxation movement | 88,922 | - |
Other provisions | 120,000 | - |
Aggregate amounts | 208,922 | - |
DAUNT BOOKS LIMITED (REGISTERED NUMBER: 03068928) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2022 |
18. | PROVISIONS FOR LIABILITIES - continued |
Group |
Deferred tax |
£ |
Provided during year | 88,922 |
Balance at 31st December 2022 | 88,922 |
19. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2022 | 2021 |
value: | £ | £ |
Ordinary | £1 | 2 | 2 |
20. | ULTIMATE CONTROLLING PARTY |
The ultimate controlling party is |