Company registration number 02490956 (England and Wales)
ST. JOHN'S HOSPICE SHOPS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
PAGES FOR FILING WITH REGISTRAR
ST. JOHN'S HOSPICE SHOPS LIMITED
CONTENTS
Page
Directors' report
1
Independent auditor's report
2 - 4
Statement of income and retained earnings
5
Balance sheet
6
Notes to the financial statements
7 - 11
ST. JOHN'S HOSPICE SHOPS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2023
- 1 -

The directors present their annual report and financial statements for the year ended 31 March 2023.

Principal activities

The principal activity of the company during the year was the operation of charity shops selling donated goods to further the activities of St John's Hospice North Lancashire and South Lakes.

Directors

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

Mr M Cullinan
(Resigned 25 July 2023)
Mrs E J Bales
Mr R Moffat
Mrs S McGraw
Mrs T M Scott
(Resigned 22 September 2023)
Mrs H Coxhill
Mr K Essa
Auditor

The auditor, MHA Moore and Smalley, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

Small companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.

On behalf of the board
Mrs S McGraw
Director
12 October 2023
ST. JOHN'S HOSPICE SHOPS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF ST. JOHN'S HOSPICE SHOPS LIMITED
- 2 -
Opinion

We have audited the financial statements of St. John's Hospice Shops Limited (the 'company') for the year ended 31 March 2023 which comprise the statement of income and retained earnings, the balance sheet and notes to the financial statements, including 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:

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:

ST. JOHN'S HOSPICE SHOPS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF ST. JOHN'S HOSPICE SHOPS LIMITED
- 3 -
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 directors' report. We have nothing to report in respect of the following matters in relation to which 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:

 

ST. JOHN'S HOSPICE SHOPS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF ST. JOHN'S HOSPICE SHOPS LIMITED
- 4 -

Because of the industry in which the company operates, we identified the following areas as those most likely to have a material impact on the financial statements: Health and safety, employment law and compliance with the Companies Act.

 

Owing to the inherent limitations of an audit, there is an unavoidable risk that some material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK). For instance, the further removed non-compliance is from the events and transactions reflected in the financial statements, the less likely the auditor is to become aware of it or to recognise the non-compliance.

 

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 member 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 member those matters we are required to state to the member 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 member, for our audit work, for this report, or for the opinions we have formed.

Christine Wilson
Senior Statutory Auditor
For and on behalf of MHA Moore and Smalley
Chartered Accountants
Statutory Auditor
Priory Close
St Marys Gate
Lancaster
LA1 1XB
19 October 2023
ST. JOHN'S HOSPICE SHOPS LIMITED
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 MARCH 2023
- 5 -
2023
2022
£
£
Turnover
784,368
716,554
Cost of sales
(584,176)
(517,054)
Gross profit
200,192
199,500
Administrative expenses
(274,080)
(257,302)
Other operating income
5,385
79,568
(Loss)/profit before taxation
(68,503)
21,766
Tax on (loss)/profit
-
0
-
0
(Loss)/profit for the financial year
(68,503)
21,766
Retained earnings brought forward
29,863
8,097
Retained earnings carried forward
(38,640)
29,863

The profit and loss account has been prepared on the basis that all operations are continuing operations.

ST. JOHN'S HOSPICE SHOPS LIMITED
BALANCE SHEET
AS AT
31 MARCH 2023
31 March 2023
- 6 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
3
17,804
-
0
Current assets
Debtors
4
51,879
57,730
Cash at bank and in hand
501,958
325,719
553,837
383,449
Creditors: amounts falling due within one year
5
(610,279)
(353,584)
Net current (liabilities)/assets
(56,442)
29,865
Net (liabilities)/assets
(38,638)
29,865
Capital and reserves
Called up share capital
6
2
2
Profit and loss reserves
(38,640)
29,863
Total equity
(38,638)
29,865

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

The financial statements were approved by the board of directors and authorised for issue on 12 October 2023 and are signed on its behalf by:
Mrs S McGraw
Director
Company Registration No. 02490956
ST. JOHN'S HOSPICE SHOPS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
- 7 -
1
Accounting policies
Company information

St. John's Hospice Shops Limited is a private company limited by shares incorporated in England and Wales. The registered office is Research House, Caton Road, Lancaster, LA1 3PE.

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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

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

During the year ended 31 March 2023 there continued to be covid related staffing issues which negatively impacted the shops operations. The directors are confident that the staffing issues have been rectified as we move into 2023/24, in making their going concern assessment. The company continues to receive the short term support of its parent charity and at the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.true

1.3
Turnover

Turnover represents amounts receivable for goods net of VAT and trade discounts, to the extent that the company has a right to consideration arising from the performance of its contractual arrangements.

 

Under the Retail Gift Aid Scheme, the company sells goods as agent of the owner. When the goods are sold, the owner is notified of the sales proceeds giving them the opportunity to claim them or donate the proceeds to the charity. Such income is not recognised in the company.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer, 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.

Tangible fixed assets are stated at cost less depreciation. Potential capital items with a cost of less than £2,000 are expensed through the profit and loss account. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, as follows:

Leasehold improvements
20% straight line
Fixtures, fittings & equipment
20% straight line
Motor vehicles
25% straight line
ST. JOHN'S HOSPICE SHOPS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 8 -

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.

1.5
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss.

Recoverable amount is the higher of fair value less costs to sell and value in use. If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss.

1.6
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand and deposits held at call with banks.

1.7
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ 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.

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 loans from fellow group companies, 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 receipts 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.

ST. JOHN'S HOSPICE SHOPS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 9 -
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
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.

1.10
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.

1.11

Distribution

The distributions made in the year represents profits paid to St John's Hospice North Lancashire and South Lakes, the parent charity of the company.

 

In accordance with the latest ICAEW guidance, donations by a trading subsidiary to its parent charity can only be recognised when they are paid or when a legal obligation for their payment is created. In this scenario, a legal obligation would exist if there was a deed of covenant in place.

 

An amendment to FRS 102 was published in December 2017 which allows the distribution to be allowable for tax provided it is paid within 9 months of the year end.

2
Employees

The average monthly number of persons (excluding directors who are not remunerated) employed by the company during the year was:

2023
2022
Number
Number
Total
25
25
ST. JOHN'S HOSPICE SHOPS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 10 -
3
Tangible fixed assets
Leasehold improvements
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
Cost
At 1 April 2022
-
0
21,803
34,550
56,353
Additions
14,352
5,500
-
0
19,852
At 31 March 2023
14,352
27,303
34,550
76,205
Depreciation and impairment
At 1 April 2022
-
0
21,803
34,550
56,353
Depreciation charged in the year
1,435
613
-
0
2,048
At 31 March 2023
1,435
22,416
34,550
58,401
Carrying amount
At 31 March 2023
12,917
4,887
-
0
17,804
At 31 March 2022
-
0
-
0
-
0
-
0
4
Debtors
2023
2022
Amounts falling due within one year:
£
£
Other debtors
23,916
20,972
Prepayments and accrued income
27,963
36,758
51,879
57,730
5
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
98
-
0
Amounts owed to group undertakings
564,285
312,114
Taxation and social security
7,118
6,810
Other creditors
4,296
13,110
Accruals and deferred income
34,482
21,550
610,279
353,584
ST. JOHN'S HOSPICE SHOPS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 11 -
6
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
2
2
2
2
7
Operating lease commitments

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

2023
2022
£
£
252,834
98,899
8
Related party transactions
Transactions with related parties

 

The company has taken advantage of the exemption conferred by Section 1 of FRS102 from disclosing transactions covered by Section 33 of FRS102, namely any entered into between two or more members of the group, provided that any subsidiary which is a party to the transaction is wholly owned by such a member.

9
Parent company

The company is a subsidiary undertaking of St John's Hospice North Lancashire and South Lakes, a charitable incorporated organisation whose principal place of business is St John's Hospice, Slyne Road, Lancaster. The consolidated accounts are publically available from the Charity Commission.

2023-03-312022-04-01false19 October 2023CCH SoftwareCCH Accounts Production 2023.300Mr M CullinanMrs E J BalesMr R MoffatMrs S McGrawMrs T M ScottMrs H CoxhillMr K Essafalse024909562022-04-012023-03-3102490956bus:Director12022-04-012023-03-3102490956bus:Director22022-04-012023-03-3102490956bus:Director32022-04-012023-03-3102490956bus:Director42022-04-012023-03-3102490956bus:Director52022-04-012023-03-3102490956bus:Director62022-04-012023-03-3102490956bus:Director72022-04-012023-03-31024909562023-03-31024909562021-04-012022-03-3102490956core:RetainedEarningsAccumulatedLosses2022-03-3102490956core:RetainedEarningsAccumulatedLosses2021-03-3102490956core:ShareCapital2023-03-3102490956core:ShareCapital2022-03-3102490956core:RetainedEarningsAccumulatedLosses2023-03-3102490956core:RetainedEarningsAccumulatedLosses2022-03-31024909562022-03-3102490956core:LeaseholdImprovements2023-03-3102490956core:FurnitureFittings2023-03-3102490956core:MotorVehicles2023-03-3102490956core:LeaseholdImprovements2022-03-3102490956core:FurnitureFittings2022-03-3102490956core:MotorVehicles2022-03-3102490956core:CurrentFinancialInstrumentscore:WithinOneYear2023-03-3102490956core:CurrentFinancialInstrumentscore:WithinOneYear2022-03-3102490956core:CurrentFinancialInstruments2023-03-3102490956core:CurrentFinancialInstruments2022-03-3102490956core:LeaseholdImprovements2022-04-012023-03-3102490956core:FurnitureFittings2022-04-012023-03-3102490956core:MotorVehicles2022-04-012023-03-3102490956core:LeaseholdImprovements2022-03-3102490956core:FurnitureFittings2022-03-3102490956core:MotorVehicles2022-03-31024909562022-03-3102490956bus:PrivateLimitedCompanyLtd2022-04-012023-03-3102490956bus:SmallCompaniesRegimeForAccounts2022-04-012023-03-3102490956bus:FRS1022022-04-012023-03-3102490956bus:Audited2022-04-012023-03-3102490956bus:FullAccounts2022-04-012023-03-31xbrli:purexbrli:sharesiso4217:GBP