Caseware UK (AP4) 2022.0.179 2022.0.179 falsefalse2022-02-01false225289 02667340 2022-02-01 2023-01-31 02667340 2021-02-01 2022-01-31 02667340 2023-01-31 02667340 2022-01-31 02667340 2021-02-01 02667340 5 2021-02-01 2022-01-31 02667340 d:CompanySecretary1 2022-02-01 2023-01-31 02667340 d:Director1 2022-02-01 2023-01-31 02667340 d:Director2 2022-02-01 2023-01-31 02667340 d:Director6 2022-02-01 2023-01-31 02667340 d:Director6 2023-01-31 02667340 d:Director7 2022-02-01 2023-01-31 02667340 d:Director7 2023-01-31 02667340 d:Director8 2022-02-01 2023-01-31 02667340 d:Director8 2023-01-31 02667340 d:RegisteredOffice 2022-02-01 2023-01-31 02667340 e:Buildings 2022-02-01 2023-01-31 02667340 e:Buildings 2023-01-31 02667340 e:Buildings 2022-01-31 02667340 e:Buildings e:OwnedOrFreeholdAssets 2022-02-01 2023-01-31 02667340 e:Buildings e:LeasedAssetsHeldAsLessee 2022-02-01 2023-01-31 02667340 e:Buildings e:LongLeaseholdAssets 2022-02-01 2023-01-31 02667340 e:PlantMachinery 2022-02-01 2023-01-31 02667340 e:PlantMachinery 2023-01-31 02667340 e:PlantMachinery 2022-01-31 02667340 e:PlantMachinery e:OwnedOrFreeholdAssets 2022-02-01 2023-01-31 02667340 e:PlantMachinery e:LeasedAssetsHeldAsLessee 2022-02-01 2023-01-31 02667340 e:MotorVehicles 2022-02-01 2023-01-31 02667340 e:MotorVehicles 2023-01-31 02667340 e:MotorVehicles 2022-01-31 02667340 e:MotorVehicles e:OwnedOrFreeholdAssets 2022-02-01 2023-01-31 02667340 e:MotorVehicles e:LeasedAssetsHeldAsLessee 2022-02-01 2023-01-31 02667340 e:OwnedOrFreeholdAssets 2022-02-01 2023-01-31 02667340 e:LeasedAssetsHeldAsLessee 2022-02-01 2023-01-31 02667340 e:PatentsTrademarksLicencesConcessionsSimilar 2022-02-01 2023-01-31 02667340 e:PatentsTrademarksLicencesConcessionsSimilar 2023-01-31 02667340 e:PatentsTrademarksLicencesConcessionsSimilar 2022-01-31 02667340 e:ComputerSoftware 2022-02-01 2023-01-31 02667340 e:ComputerSoftware 2023-01-31 02667340 e:ComputerSoftware 2022-01-31 02667340 e:CurrentFinancialInstruments 2023-01-31 02667340 e:CurrentFinancialInstruments 2022-01-31 02667340 e:Non-currentFinancialInstruments 2023-01-31 02667340 e:Non-currentFinancialInstruments 2022-01-31 02667340 e:CurrentFinancialInstruments e:WithinOneYear 2023-01-31 02667340 e:CurrentFinancialInstruments e:WithinOneYear 2022-01-31 02667340 e:Non-currentFinancialInstruments e:AfterOneYear 2023-01-31 02667340 e:Non-currentFinancialInstruments e:AfterOneYear 2022-01-31 02667340 e:Non-currentFinancialInstruments e:BetweenOneTwoYears 2023-01-31 02667340 e:Non-currentFinancialInstruments e:BetweenOneTwoYears 2022-01-31 02667340 e:Non-currentFinancialInstruments e:BetweenTwoFiveYears 2023-01-31 02667340 e:Non-currentFinancialInstruments e:BetweenTwoFiveYears 2022-01-31 02667340 e:Non-currentFinancialInstruments e:MoreThanFiveYears 2023-01-31 02667340 e:Non-currentFinancialInstruments e:MoreThanFiveYears 2022-01-31 02667340 e:ShareCapital 2022-02-01 2023-01-31 02667340 e:ShareCapital 2023-01-31 02667340 e:ShareCapital 2021-02-01 2022-01-31 02667340 e:ShareCapital 2022-01-31 02667340 e:ShareCapital 2021-02-01 02667340 e:CapitalRedemptionReserve 2022-02-01 2023-01-31 02667340 e:CapitalRedemptionReserve 2023-01-31 02667340 e:CapitalRedemptionReserve 2021-02-01 2022-01-31 02667340 e:CapitalRedemptionReserve 2022-01-31 02667340 e:CapitalRedemptionReserve 2021-02-01 02667340 e:RevaluationReserve 2022-02-01 2023-01-31 02667340 e:RevaluationReserve 2023-01-31 02667340 e:RevaluationReserve 2021-02-01 2022-01-31 02667340 e:RevaluationReserve 2022-01-31 02667340 e:RevaluationReserve 2021-02-01 02667340 e:RevaluationReserve 5 2021-02-01 2022-01-31 02667340 e:RetainedEarningsAccumulatedLosses 2022-02-01 2023-01-31 02667340 e:RetainedEarningsAccumulatedLosses 2023-01-31 02667340 e:RetainedEarningsAccumulatedLosses 2021-02-01 2022-01-31 02667340 e:RetainedEarningsAccumulatedLosses 2022-01-31 02667340 e:RetainedEarningsAccumulatedLosses 2021-02-01 02667340 e:AcceleratedTaxDepreciationDeferredTax 2023-01-31 02667340 e:AcceleratedTaxDepreciationDeferredTax 2022-01-31 02667340 e:RetirementBenefitObligationsDeferredTax 2023-01-31 02667340 e:RetirementBenefitObligationsDeferredTax 2022-01-31 02667340 e:OtherDeferredTax 2023-01-31 02667340 e:OtherDeferredTax 2022-01-31 02667340 d:OrdinaryShareClass1 2022-02-01 2023-01-31 02667340 d:OrdinaryShareClass1 2023-01-31 02667340 d:OrdinaryShareClass1 2022-01-31 02667340 d:FRS102 2022-02-01 2023-01-31 02667340 d:Audited 2022-02-01 2023-01-31 02667340 d:FullAccounts 2022-02-01 2023-01-31 02667340 d:PrivateLimitedCompanyLtd 2022-02-01 2023-01-31 02667340 e:Subsidiary1 2022-02-01 2023-01-31 02667340 e:Subsidiary1 1 2022-02-01 2023-01-31 02667340 e:Subsidiary2 2022-02-01 2023-01-31 02667340 e:Subsidiary2 1 2022-02-01 2023-01-31 02667340 e:WithinOneYear 2023-01-31 02667340 e:WithinOneYear 2022-01-31 02667340 e:BetweenOneFiveYears 2023-01-31 02667340 e:BetweenOneFiveYears 2022-01-31 02667340 e:MoreThanFiveYears 2023-01-31 02667340 e:MoreThanFiveYears 2022-01-31 02667340 e:HirePurchaseContracts e:WithinOneYear 2023-01-31 02667340 e:HirePurchaseContracts e:WithinOneYear 2022-01-31 02667340 e:HirePurchaseContracts e:BetweenOneFiveYears 2023-01-31 02667340 e:HirePurchaseContracts e:BetweenOneFiveYears 2022-01-31 02667340 d:Consolidated 2023-01-31 02667340 d:ConsolidatedGroupCompanyAccounts 2022-02-01 2023-01-31 02667340 e:PatentsTrademarksLicencesConcessionsSimilar e:ExternallyAcquiredIntangibleAssets 2022-02-01 2023-01-31 02667340 e:ComputerSoftware e:ExternallyAcquiredIntangibleAssets 2022-02-01 2023-01-31 02667340 4 2022-02-01 2023-01-31 02667340 5 2022-02-01 2023-01-31 02667340 6 2022-02-01 2023-01-31 02667340 e:ExternallyAcquiredIntangibleAssets 2022-02-01 2023-01-31 02667340 e:PatentsTrademarksLicencesConcessionsSimilar e:OwnedIntangibleAssets 2022-02-01 2023-01-31 02667340 e:ComputerSoftware e:OwnedIntangibleAssets 2022-02-01 2023-01-31 xbrli:shares iso4217:GBP xbrli:pure

Registered number: 02667340










HYPERAMA PLC










ANNUAL REPORT AND FINANCIAL STATEMENTS

For the 52 weeks Ended 31 January 2023

 
HYPERAMA PLC
 

COMPANY INFORMATION


Directors
M Suknam Johal 
M Singh Johal 
D B Hidson (resigned 24 October 2022)
G N J Mills (resigned 3 August 2023)
R Harris (appointed 1 July 2023)




Company secretary
Sharan Kaur



Registered number
02667340



Registered office
Hyperama Buildings
Bull Close Road

Nottingham

Nottinghamshire

NG7 2UT




Independent auditors
PKF Smith Cooper Audit Limited
Statutory Auditors

1 Prospect Place

Millennium Way

Pride Park

Derby

DE24 8HG





 
HYPERAMA PLC
 

CONTENTS



Page
Group strategic report
1 - 2
Directors' report
3 - 5
Independent auditors' report
6 - 9
Consolidated profit and loss account
10
Consolidated statement of comprehensive income
11
Consolidated balance sheet
12
Company balance sheet
13
Consolidated statement of changes in equity
14
Company statement of changes in equity
15
Consolidated Statement of cash flows
16 - 17
Consolidated analysis of net debt
18
Notes to the financial statements
19 - 42


 
HYPERAMA PLC
 

GROUP STRATEGIC REPORT
For the 52 weeks Ended 31 January 2023

Business review
 
Within this report the directors aim to present a balanced and comprehensive review of the development and performance of the business during the year and its position at the period end. Our review is consistent with the size and nature of our business and is written in the context of the risks and uncertainties we face.
During the 52 weeks,  the Group's principal activities has changed significantly with the sale / discontinued operation of the Cash & Carry business. The business has now resized its operation and will continue with its JK Foods division with the distribution and supply to restaurants, takeaways, wholesalers and retailers throughout the UK of its range of Asian and Far East food products and specialist packaging. 
Turnover on continuing operations has increased year on year by £2.6 million, however, the gross profit % on continuing operations decreased from 16.9% to 14.1%, due to overall increased costs levels. In addition the continued operations in the year included some one off costs amounting to £1.6 miliion,  of which £1.2 million is included as exceptional costs. The market remains a difficult environment and the supply chain disruption experienced in the broader market during the year, resulted in additional costs for importation of product from the Far East. Net cash generated from operating activities was an overall deficiency of £15.9 million due to the repayment of creditors as a result of the sale of the C&C division at £13.4m million (2022: £2.2 million increase).
During the year, due to the on-going challenges of the economic environment, the directors reviewed the strategic aims of the Group and implemented a major restructure, which included the disposal of a number of its operations and reducing its overhead costs. As part of this reorganisation, the Group has sold its cash and carry division at Peterborough, West Bromwich and Nottingham. Also it has closed its Bring Me Drink online services. The strategic aim of this reorganisation is to improve the overall profitability and cash generation of the Group. The deals resulted in a gross cash inflow to the business of £13.1 million.
As shown on the balance sheet, the financial position at the year-end remained strong with net assets of £14.9m.

Principal risks and uncertainties
 
Business Risk
The business has been impacted by the ongoing impact of price increases and supply constraints and an overall increase in costs, The Group is now as an Oriental food wholesaler/ distributor has continued to operate but has seen a constriction of trading in the 52 weeks, due to the supply chain disruption encountered. Failure to adapt to these changing circumstances could have an adverse effect on our business and the team has been working tirelessly to ensure continuity of trade for our customers.
Financial Risk Management
The Group's operations expose it to a variety of financial risks that include the effects of changes in debt market prices, credit risk, liquidity risk, interest rate risk and foreign exchange risk. The Group has a risk management programme that seeks to limit the adverse effects on the financial performance of the Group by monitoring levels of debt finance and related finance costs. The Group has implemented policies that require appropriate credit checks before a sale is made. The Group maintains a mixture of long term and short-term debt, including an invoice discounting facility and stock loans, to ensure the Group has sufficient funds for its operations and any planned expansions. The Group hedges its exposure to foreign currency fluctuations using forward exchange contracts where required

Financial key performance indicators
 
We consider that our key financial performance indicators are those that communicate the financial performance and strength of the Group as a whole, these being turnover, gross margin, EBITDA, and cashflow. These have been considered within the business review.

Other key performance indicators
 
 The directors do not use any other key performance indicators to monitor the business.

Page 1

 
HYPERAMA PLC
 

GROUP STRATEGIC REPORT (CONTINUED)
For the 52 weeks Ended 31 January 2023

Directors' statement of compliance with duty to promote the success of the Group
 
The Directors of Hyperama plc consider that they have acted in the way they consider, in good faith, would be the most likely to promote the success of the Company for the benefit of its members as a whole, having regard to matters set out in s172(1)(a-f) of the Companies Act 2006, in the decisions taken during the year  ended       31 January 2023. In particular:
(a) Likely consequences of any decision in the long-term
Our core business model and strategy are designed to secure sustainable long-term growth whilst continuing to deliver strong results in the meantime. 
(b) The interests of the Company’s employees
Our employees are fundamental to the delivery of our strategy. We encourage employee participation and have worked hard on improving the working environment. We have regard for their interests and this has helped shape our decision-making processes.
(c) The need to foster the Company’s business relationships with suppliers, customers and others
Engaging with our stakeholders is very much a part of our ethos as it strengthens our relationships and helps us make better business decisions. 
(d) The impact of the Company’s operations on the community and the environment
We are proud to support our local community. In 2022/23, as part of our Corporate Social Responsibility (CSR) programme to support local communities, we are providing product to a local foodbank.
We have introduced a number of initiatives to minimise our impact on the environment, including installing energy saving lighting, installing EV charging points at the Nottingham site and exploring the use of solar energy on our site and the switching to Hybrid vehicles.
(e) The desirability of the Company maintaining a reputation for high standards of business conduct
The Board is committed to achieving and maintaining high standards of business conduct, corporate governance, integrity and business ethics.
(f) The need to act fairly as between members of the Company.
The Company is a public limited company and the interests of the shareholders as a whole are considered so that members are treated fairly.


This report was approved by the board on 20 October 2023 and signed on its behalf.



R Harris
Director

Page 2

 
HYPERAMA PLC
 

 
DIRECTORS' REPORT
For the 52 weeks Ended 31 January 2023

The directors present their report and the financial statements for the 52 weeks ended 31 January 2023.

Directors' responsibilities statement

The directors are responsible for preparing the Group strategic report, the Directors' report and the consolidated financial statements in accordance with applicable law and regulations.
 
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 the Group and of the profit or loss of the Group for that period.

 In preparing these financial statements, the directors are required to:


select suitable accounting policies for the Group's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group 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 the Group and to enable them to ensure that the financial statements comply with the Companies Act 2006They are 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.

Principal activity

The Group's principal activities during the period were the wholesale of groceries, wines and spirits, tobacco and household goods and the importation, development and distribution of ethnic food. The Group also operates warehousing and storage facilities for land transport activities. During the year the Group disposed of its wholesale operations.

Results and dividends

The profit for the 52 weeks, after taxation, amounted to £602 thousand (2022 - loss £236 thousand).

Dividends of £159,000 were paid during the period (2022: £164,000).

Directors

The directors who served during the 52 weeks were:

M Suknam Johal 
M Singh Johal 
D B Hidson (resigned 24 October 2022)
G N J Mills (resigned 3 August 2023)

Future developments

There are no significant future developments in the business about which the directors are required to report.

Page 3

 
HYPERAMA PLC
 

 
DIRECTORS' REPORT (CONTINUED)
For the 52 weeks Ended 31 January 2023

Engagement with employees

Details of the number of employees and related costs can be found in note 8 to the financial statements.
The Group's employment policies have been designed to meet the needs of its business, and follow best practice whilst complying with both current and anticipated legislation. Applied consistently throughout the Group they provide a fair framework within which employees work.
The Group is firmly committed to ensuring that the manner in which it employs staff is fair and equitable. Its equal opportunities policy is designed to ensure that no person or group of individuals will be treated less favourably because of their race, colour, ethnic origin, gender or sexual orientation, age or disability.
The Group maintains a policy of regular consultation and discussion with its employees on a wide range of issues that are likely to affect their interests and ensure that all employees are aware of the financial and economic performance of their business units and of the Group as a whole.

Engagement with suppliers, customers and others

The Group remains committed to the  on-going development ot its business  relationships with suppliers and customers.

Disabled employees

The Group gives full and fair consideration to applications for employment by disabled persons. In the event of employees becoming disabled whilst in the service of the Group, every effort is made to continue their employment by transfer to alternative duties, if required and by provision of such retraining as appropriate. It is the policy of the Group that the training, career development and promotion of disabled persons should, as far as possible, be identical with that of other employees.

Greenhouse gas emissions, energy consumption and energy efficiency action

The figures below detail the annual GHG emissions (scope 1&2) from activities for which the Group is directly responsible.  

The methodology used to calculate emissions is abased upon GHG protocol Corporate Accounting and Reporting Standards and has been calculated using the carbon convention factors published by the BEIS in January 2022. 


Energy Performance              2023             2022
     
      
kWh energy use kWh                   4,852,999  6,745,111
Diesel Transport  L                     352,034     368,297
     
     
Scope 1 Emissions                                   976                    925
Scope 2 Emissions                                1,390                         1,414
Total Carbon emissions TCO2e 2,         530                  339
     
Intensity Ratio tonnes of CO2 
per £m sales                                 47.38              16.58
During the year we had full years benefit of carbon footprint reduction as a result of the upgrade to LED lighting across the estate.

Page 4

 
HYPERAMA PLC
 

 
DIRECTORS' REPORT (CONTINUED)
For the 52 weeks Ended 31 January 2023

Matters covered in the Group strategic report

The Group have included details of key risks and uncertainties and disclosures in respect of engagement with suppliers, customers and others in the Strategic Report using the provisions of section 414(c) of the Companies Act 2006.

Statement of corporate governance arrangements

The Group does not follow a specific code on corporate governance. This is due to the fact that the Company is not defined as a large private company under the regulations and is a plc, on a historic basis. Therefore, the Waites principles are not seen as an appropriate code to follow, due to the following:The directors are the shareholders of the Group. The Group seeks to ensure that it maintains positive relationships with staff and suppliers and monitors this on an ongoing basis. The directors seek to identify and mitigate the risks facing the Group, whilst promoting the success of the Group by identifying appropriate opportunities. This is driven by regular board meetings, which set and review goals and objectives to achieve the Group’s strategy.

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company and the Group's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company and the Group's auditors are aware of that information.

Post balance sheet events

There have been no significant events affecting the Group since the year end.

Auditors

Under section 487(2) of the Companies Act 2006PKF Smith Cooper Audit Limited will be deemed to have been reappointed as auditors 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.

This report was approved by the board on 20 October 2023 and signed on its behalf.
 





R Harris
Director

Page 5

 
HYPERAMA PLC
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HYPERAMA PLC
 

Opinion


Based on our understanding of the Company and industry, we identify the key laws and regulations affecting the Group. We have audited the financial statements of HYPERAMA PLC (the 'parent Company') and its subsidiaries (the 'Group') for the 52 weeks ended 31 January 2023, which comprise the Group Profit and loss account, the Group Statement of comprehensive income, the Group and Company Balance sheets, the Group Statement of cash flows, the Group and Company Statement of changes in equity and the related notes, including a summary of significant accounting policiesThe 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's affairs as at 31 January 2023 and of the Group's profit for the 52 weeks 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


Based on our understanding of the Company and industry, we identify the key laws and regulations affecting the Group. 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 United Kingdom, including the Financial Reporting Council'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 Group's or 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 directors with respect to going concern are described in the relevant sections of this report.


Page 6

 
HYPERAMA PLC
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HYPERAMA PLC (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and  our Auditors' 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.


Based on our understanding of the Company and industry, we identify the key laws and regulations affecting the Group. We have nothing to report in this regard.


Opinion 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 Directors' report for the financial 52 weeks for which the financial statements are prepared is consistent with the financial statements; and
the Group strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.


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 Directors' report.


Based on our understanding of the Company and industry, we identify the key laws and regulations affecting the Group. 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:


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 directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

As explained more fully in the Directors' responsibilities statement set out on page 3, 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 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 directors either intend to liquidate the Group or the parent Company or to cease operations, or have no realistic alternative but to do so.


Page 7

 
HYPERAMA PLC
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HYPERAMA PLC (CONTINUED)


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 an Auditors' 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 Group financial statements.


Irregularities, including fraud, are instances of non-compliance with laws and regulations.Based on our understanding of the Company and industry, we identify the key laws and regulations affecting the Group. 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:

We  identified that the principal risk of fraud or noncompliance with laws and regulations related to:
management bias in respect of accounting estimates and judgements made:
management override of control;
posting of unusual journals or transactions
significant cash based transactions/misappropriation of cash
compliance with bank/debt covenants
We focussed on those area that could give rise to a material misstatement in the Group financial statements. Our procedures included, but were not limited to:
• Enquiry of management and those charged with governance around actual and potential litigation and    claims, including instances of non-compliance with laws and regulations and fraud;
• Reviewing minutes of meetings of those charged with governance where available;
• Reviewing legal expenditure in the year to identify instances of non-compliance with laws and regulations   and fraud
• Reviewing financial statement disclosures and testing to supporting documentation to assess compliance   with applicable laws and regulations.
• Performing audit work over the risk of management override of controls, including testing of journal entries  and other adjustments for appropriateness, evaluating the business rationale of significant transactions    outside the normal course of business and reviewing accounting estimates for bias. In particular, property   valuations and recoverability and completeness of amounts due to the Group and Company, in repsect of   retrospective rebates and overriders.; analytical procedures to identify any unexpected or  unusual    relationships that might indicate material misstatement due to fraud, 
It is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.


Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.  The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.


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 Auditors' report.


Page 8

 
HYPERAMA PLC
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HYPERAMA PLC (CONTINUED)


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 2006Our 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 Auditors' 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.





James Delve (Senior statutory auditor)
for and on behalf of
PKF Smith Cooper Audit Limited
Statutory Auditors
1 Prospect Place
Millennium Way
Pride Park
Derby
DE24 8HG

20 October 2023
Page 9

 
HYPERAMA PLC
 

CONSOLIDATED PROFIT AND LOSS ACCOUNT
For the 52 weeks Ended 31 January 2023

Continuing operations
Discontin'd operations
Total
Continuing operations
Discontinued operations
Total
2023
2023
2023
2022
2022
2022
Note
£000
£000
£000
£000
£000
£000

  

Turnover
 4 
41,195
71,026
112,221
38,553
102,891
141,444

Cost of sales
  
(34,309)
(64,623)
(98,932)
(31,085)
(92,549)
(123,634)

Exceptional cost of sales
 13 
(958)
-
(958)
(943)
-
(943)

Gross profit
  
5,928
6,403
12,331
6,525
10,342
16,867

Distribution costs
  
(1,859)
(138)
(1,997)
(1,863)
(162)
(2,025)

Exceptional distribution costs
 13 
(272)
-
(272)
-
-
-

Administrative expenses
  
(5,094)
(9,949)
(15,043)
(4,548)
(10,391)
(14,939)

Exceptional administrative expenses
 13 
-
5,603
5,603
-
-
-

Other operating income
 5 
-
-
-
26
-
26

Operating profit/(loss)
 6 
(1,297)
1,919
622
140
(211)
(71)

Interest receivable and similar income
  
20
-
20
14
-
14

Interest payable and similar expenses
 10 
(269)
(1)
(270)
(145)
(4)
(149)

Profit/(loss) before tax
  
(1,546)
1,918
372
9
(215)
(206)

Tax on profit/(loss)
 11 
230
-
230
(30)
-
(30)

Profit/(loss) for the financial 52 weeks
  
(1,316)
1,918
602
(21)
(215)
(236)

Profit/(loss) for the 52 weeks attributable to:
  

Owners of the parent
  
(1,316)
1,918
602
(236)
-
(236)

The notes on pages 19 to 42 form part of these financial statements.

Page 10

 
HYPERAMA PLC
 

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the 52 weeks Ended 31 January 2023

2023
2022
Note
£000
£000


Profit/(loss) for the financial 52 weeks

  

602
(236)

Other comprehensive income
  


Unrealised surplus on revaluation of tangible fixed assets
  
-
150

Other comprehensive income for the 52 weeks/year
  
-
150

Total comprehensive income for the 52 weeks
  
602
(86)

Profit/(loss) for the 52 weeks attributable to:
  


Owners of the parent Company
  
602
(236)

The notes on pages 19 to 42 form part of these financial statements.

Page 11

 
HYPERAMA PLC
Registered number: 02667340

CONSOLIDATED BALANCE SHEET
As at 31 January 2023

2023
2022
Note
£000
£000

Fixed assets
  

Intangible assets
 15 
230
367

Tangible assets
 16 
9,854
13,400

Investments
 17 
-
-

  
10,084
13,767

Current assets
  

Stocks
 18 
5,991
13,686

Debtors: amounts falling due after more than one year
 19 
6,000
-

Debtors: amounts falling due within one year
 19 
7,334
11,675

Cash at bank and in hand
 20 
102
461

  
19,427
25,822

Creditors: amounts falling due within one year
 21 
(9,511)
(22,150)

Net current assets
  
 
 
9,916
 
 
3,672

Total assets less current liabilities
  
20,000
17,439

Creditors: amounts falling due after more than one year
 22 
(5,079)
(2,543)

Provisions for liabilities
  

Deferred taxation
 25 
(47)
(465)

Net assets
  
14,874
14,431


Capital and reserves
  

Called up share capital 
 26 
149
149

Revaluation reserve
 27 
2,791
2,791

Capital redemption reserve
 27 
2,058
2,058

Profit and loss account
 27 
9,876
9,433

  
14,874
14,431


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 20 October 2023.




R Harris
Director

The notes on pages 19 to 42 form part of these financial statements.

Page 12

 
HYPERAMA PLC
Registered number: 02667340

COMPANY BALANCE SHEET
As at 31 January 2023

2023
2022
Note
£000
£000

Fixed assets
  

Intangible assets
 15 
222
359

Tangible assets
 16 
9,016
12,614

  
9,238
12,973

Current assets
  

Stocks
 18 
5,990
13,685

Debtors: amounts falling due after more than one year
 19 
6,000
-

Debtors: amounts falling due within one year
 19 
8,094
12,443

Cash at bank and in hand
 20 
69
437

  
20,153
26,565

Creditors: amounts falling due within one year
 21 
(9,378)
(22,083)

Net current assets
  
 
 
10,775
 
 
4,482

Total assets less current liabilities
  
20,013
17,455

  

Creditors: amounts falling due after more than one year
 22 
(5,079)
(2,543)

Provisions for liabilities
  

Deferred taxation
 25 
(60)
(481)

Net assets
  
14,874
14,431


Capital and reserves
  

Called up share capital 
 26 
149
149

Revaluation reserve
 27 
2,791
2,791

Capital redemption reserve
 27 
2,058
2,058

Profit and loss account
 27 
9,876
9,433

  
14,874
14,431


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 20 October 2023.


R Harris
Director

The notes on pages 19 to 42 form part of these financial statements.

Page 13

 
HYPERAMA PLC
 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the 52 weeks Ended 31 January 2023


Called up share capital
Capital redemption reserve
Revaluation reserve
Profit and loss account
Total equity

£000
£000
£000
£000
£000


At 1 February 2021
149
2,058
2,641
9,833
14,681


Comprehensive income for the year

Loss for the year

-
-
-
(236)
(236)

Surplus on revaluation of freehold property
-
-
150
-
150


Other comprehensive income for the year
-
-
150
-
150


Total comprehensive income for the year
-
-
150
(236)
(86)


Contributions by and distributions to owners

Dividends: Equity capital
-
-
-
(164)
(164)


Total transactions with owners
-
-
-
(164)
(164)



At 1 February 2022
149
2,058
2,791
9,433
14,431


Comprehensive income for the 52 weeks

Profit for the 52 weeks
-
-
-
602
602
Total comprehensive income for the 52 weeks
-
-
-
602
602


Contributions by and distributions to owners

Dividends: Equity capital
-
-
-
(159)
(159)


Total transactions with owners
-
-
-
(159)
(159)


At 31 January 2023
149
2,058
2,791
9,876
14,874


The notes on pages 19 to 42 form part of these financial statements.

Page 14

 
HYPERAMA PLC
 

COMPANY STATEMENT OF CHANGES IN EQUITY
For the 52 weeks Ended 31 January 2023


Called up share capital
Capital redemption reserve
Revaluation reserve
Profit and loss account
Total equity

£000
£000
£000
£000
£000


At 1 February 2021
149
2,058
2,641
9,834
14,682


Comprehensive income for period

Profit for the period

-
-
-
(237)
(237)

Surplus on revaluation of freehold property
-
-
150
-
150


Other comprehensive income for the year
-
-
150
-
150


Total comprehensive income for the year
-
-
150
(237)
(87)


Contributions by and distributions to owners

Dividends: Equity capital
-
-
-
(164)
(164)


Total transactions with owners
-
-
-
(164)
(164)



At 1 February 2022
149
2,058
2,791
9,433
14,431


Comprehensive income for the period

Profit for the 52 weeks
-
-
-
602
602
Total comprehensive income for the 52 weeks
-
-
-
602
602


Contributions by and distributions to owners

Dividends: Equity capital
-
-
-
(159)
(159)


Total transactions with owners
-
-
-
(159)
(159)


At 31 January 2023
149
2,058
2,791
9,876
14,874


The notes on pages 19 to 42 form part of these financial statements.

Page 15

 
HYPERAMA PLC
 

CONSOLIDATED STATEMENT OF CASH FLOWS
For the 52 weeks Ended 31 January 2023

2023
2022
£000
£000

Cash flows from operating activities

Profit/(loss) for the financial 52 weeks
602
(236)

Adjustments for:

Amortisation of intangible assets
101
75

Depreciation of tangible assets
1,088
1,089

Profit on disposal of tangible assets
(92)
(11)

Interest paid
270
149

Interest received
(20)
(14)

Taxation charge
(230)
30

Decrease/(increase) in stocks
3,073
(27)

(Increase) in debtors
(1,699)
(640)

(Decrease)/increase in creditors
(13,395)
2,210

Increase in amounts owed to groups
2
-

Corporation tax received/(paid)
2
(6)

Profit on sale of division
(5,603)
-

Net cash generated from operating activities

(15,901)
2,619


Cash flows from investing activities

Purchase of intangible fixed assets
(7)
(195)

Sale of intangible assets
-
36

Purchase of tangible fixed assets
(383)
(1,480)

Sale of tangible fixed assets
81
146

Interest received
20
14

HP interest paid
(8)
(15)

Net proceeds from sale of division
13,065
-

Net cash from investing activities

12,768
(1,494)

Cash flows from financing activities

Repayment of loans
(589)
(616)

Other new loans
4,000
-

Repayment of/new finance leases
(216)
(293)

Dividends paid
(159)
(164)

Interest paid
(262)
(134)

Net cash used in financing activities
2,774
(1,207)

Net (decrease) in cash and cash equivalents
(359)
(82)

Cash and cash equivalents at beginning of 52 weeks
461
543

Cash and cash equivalents at the end of 52 weeks
102
461


Cash and cash equivalents at the end of 52 weeks comprise:
Page 16

 
HYPERAMA PLC
 

CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
For the 52 weeks Ended 31 January 2023


2023
2022

£000
£000


Cash at bank and in hand
102
461


The notes on pages 19 to 42 form part of these financial statements.

Page 17

 
HYPERAMA PLC
 

CONSOLIDATED ANALYSIS OF NET DEBT
For the 52 weeks Ended 31 January 2023





At 1 February 2022
Cash flows
Other non-cash changes
At 31 January 2023
£000

£000

£000

£000

Cash at bank and in hand

461

(359)

-

102

Debt due after 1 year

(2,331)

(3,200)

541

(4,990)

Debt due within 1 year

(619)

(212)

(541)

(1,372)

Finance leases

(415)

216

-

(199)


(2,904)
(3,555)
-
(6,459)

The notes on pages 19 to 42 form part of these financial statements.

Page 18

 
HYPERAMA PLC
 

 
NOTES TO THE FINANCIAL STATEMENTS
For the 52 weeks Ended 31 January 2023

1.


General information

Hyperama plc is a a public limited company limited by shares  incorporated in England and Wales. Its registered office is included on the information page within the financial statements. The Group's principal activity is disclosed in the directors' report. The accounts are rounded tol the nearest £'000.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgment in applying the Group's accounting policies (see note 3).

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Profit and loss account in these financial statements.

The following principal accounting policies have been applied:

 
2.2

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated statement of comprehensive income from the date on which control is obtained. They are deconsolidated from the date control ceases.

Page 19

 
HYPERAMA PLC
 

 
NOTES TO THE FINANCIAL STATEMENTS
For the 52 weeks Ended 31 January 2023

2.Accounting policies (continued)

 
2.3

Going concern

The Group has experienced a challenging year, with the on-going increases in supply chain and freight costs. This on-going economic volatility has impacted upon the Group's  year end results and  resulted in the directors re-assessing the Group's strategic aims including a review of each division to assess its overall contribution to the Group and to implement efficiencies and streamline costs.
Following this review, during the year, the directors implemented a major restructure, which included the disposal of a number of its operations. As part of this reorganisation, the Group has sold its cash and carry division at Peterborough, West Bromwich and Nottingham and closed its Bring Me Drink on-line services. The strategic aim of this reorganisation is to improve the overall profitability and cash generation of the Group. The deals resulted in a gross cash inflow to the business of £13.1 million. These decisive actions have ensured that the Group will continue to have sufficient funds in place, to meet the liabilities of the Group, as they fall due and to ensure that the Group have flexibility in their funding requirements, so that no reliance is placed on one funding source.
The Directors believe that the Group’s financial statements should be prepared on a going concern basis and have considered a period of twelve months from the date of approval of the financial
statements. Forecasts have been prepared through to January 2025 and the Directors consider that the Group has adequate funding in place, to remain in operation for the foreseeable future and to
meet its current liabilities as they fall due however the forecasts show the Group is reliant on the continued support of the Group’s creditors, in particular the Bank, the directors and their connected companies, and the Hyperama Executive Retirement Benefit Scheme. Based on the continued availability of this support the directors continue to adopt the going concern basis
in preparing the financial statements.

 
2.4

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Consolidated profit and loss account within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

Page 20

 
HYPERAMA PLC
 

 
NOTES TO THE FINANCIAL STATEMENTS
For the 52 weeks Ended 31 January 2023

2.Accounting policies (continued)

 
2.5

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the Group has transferred the significant risks and rewards of ownership to the buyer;
the Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the Group will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of revenue can be measured reliably;
it is probable that the Group will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

Revenue of the sale of goods is recognised on the dispatch of goods. Revenue in recognition of the provision of storage services is recognised over the period to which it relates.

 
2.6

Operating leases: the Group as lessee

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

 
2.7

Leased assets: the Group as lessee

Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives. Assets acquired by hire purchase are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to profit or loss so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

Page 21

 
HYPERAMA PLC
 

 
NOTES TO THE FINANCIAL STATEMENTS
For the 52 weeks Ended 31 January 2023

2.Accounting policies (continued)

 
2.8

Government grants

Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the Consolidated profit and loss account in the same period as the related expenditure.

 
2.9

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.10

Borrowing costs

All borrowing costs are recognised in profit or loss in the 52 weeks in which they are incurred.

 
2.11

Pensions

Defined contribution pension plan

The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the Group in independently administered funds.

Page 22

 
HYPERAMA PLC
 

 
NOTES TO THE FINANCIAL STATEMENTS
For the 52 weeks Ended 31 January 2023

2.Accounting policies (continued)

 
2.12

Current and deferred taxation

The tax expense for the 52 weeks comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company and the Group operate and generate income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits;
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and
Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

 
2.13

Exceptional items

Exceptional items are transactions that fall within the ordinary activities of the Group but are presented separately due to their size or incidence.

 
2.14

Intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.
All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years, with patents being amortised over 10 years and computer software over 3 years, once available for use.

 
2.15

Tangible assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Page 23

 
HYPERAMA PLC
 

 
NOTES TO THE FINANCIAL STATEMENTS
For the 52 weeks Ended 31 January 2023

2.Accounting policies (continued)


2.15
Tangible assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Long-term leasehold property
-
15% straight line and 0%
Plant and machinery
-
8% - 33% straight line
Motor vehicles
-
15% to 25% straight line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

The directors do not consider it appropriate to depreciate long leasehold property since, in their opinion, any charge to depreciation would be immaterial as the estimated residual value of the building is not materially different from the carrying value of the building. Any minor additions are depreciated at a rate of 15% per annum.

 
2.16

Revaluation of tangible fixed assets

Individual freehold and leasehold properties are carried at current year value at fair value at the date of the revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Revaluations are undertaken with sufficient regularity to ensure the carrying amount does not differ materially from that which would be determined using fair value at the balance sheet date.
Fair values are determined from market based evidence normally undertaken by professionally qualified valuers.

Revaluation gains and losses are recognised in other comprehensive income unless losses exceed the previously recognised gains or reflect a clear consumption of economic benefits, in which case the excess losses are recognised in profit or loss.

 
2.17

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.18

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. 
At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

 
2.19

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

Page 24

 
HYPERAMA PLC
 

 
NOTES TO THE FINANCIAL STATEMENTS
For the 52 weeks Ended 31 January 2023

2.Accounting policies (continued)

 
2.20

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours.
In the Consolidated statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.

 
2.21

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.22

Financial instruments

The Group only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or income as appropriate. The company does not currently apply hedge accounting for interest rate and foreign exchange derivatives.

 
2.23

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.


3.


Judgments in applying accounting policies and key sources of estimation uncertainty

There are no key judgments or key sources of estimation uncertainty with the exception of the basis used for the revaluation of long leasehold properties.


4.


Turnover

An analysis of turnover by class of business is as follows:


2023
2022
£000
£000

Supply and distribution of ethnic food- continuing
40,898
38,360

Wholesale activities - discontinued
71,026
102,891

Storage income - continuing
297
193

112,221
141,444


All turnover arose within the United Kingdom.

Page 25

 
HYPERAMA PLC
 

 
NOTES TO THE FINANCIAL STATEMENTS
For the 52 weeks Ended 31 January 2023

5.


Other operating income

2023
2022
£000
£000

Government grants receivable- coronavirus job retention scheme
-
26



6.


Operating profit/(loss)

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

2023
2022
£000
£000

Depreciation of tangible fixed assets
1,087
1,090

Amortisation of intangible assets, including goodwill
101
75

Exchange differences
258
8

Defined contribution pension cost
126
106

Government grants
-
(26)


7.


Auditors' remuneration

During the 52 weeks, the Group obtained the following services from the Company's auditors and their associates:


2023
2022
£000
£000

Fees payable to the Company's auditors and their associates for the audit of the consolidated and parent Company's financial statements
39
36

Fees payable to the Company's auditors and their associates in respect of:

Taxation compliance services
4
3

All taxation advisory services not included above
40
10

Corporate finance services not included above
60
106

All non-audit services not included above
10
-

Fees payable to the Company's auditors and their associates in connection with the Group's pension scheme(s) in respect of:

The auditing of accounts of the scheme(s)
-
2

Page 26

 
HYPERAMA PLC
 

 
NOTES TO THE FINANCIAL STATEMENTS
For the 52 weeks Ended 31 January 2023

8.


Employees

Staff costs, including directors' remuneration, were as follows:


Group
Group
Company
Company
2023
2022
2023
2022
£000
£000
£000
£000


Wages and salaries
6,430
7,714
6,348
7,643

Social security costs
588
680
582
674

Cost of defined contribution scheme
126
106
124
105

7,144
8,500
7,054
8,422


The average monthly number of employees, including the directors, during the 52 weeks was as follows:



Group
Group
Company
Company
        2023
        2022
        2023
        2022
            No.
            No.
            No.
            No.









Directors
4
5
4
5



Distribution
81
61
80
59



Sales
143
225
141
225

228
291
225
289


9.


Directors' remuneration

2023
2022
£000
£000

Directors' emoluments
182
179

Group contributions to defined contribution pension schemes
2
-


During the 52 weeks retirement benefits were accruing to no directors (2022 - NIL) in respect of defined contribution pension schemes.


10.


Interest payable and similar expenses

2023
2022
£000
£000


Bank interest payable
151
98

Finance leases and hire purchase contracts
8
15

Other interest payable
111
36

270
149

Page 27

 
HYPERAMA PLC
 

 
NOTES TO THE FINANCIAL STATEMENTS
For the 52 weeks Ended 31 January 2023

11.


Taxation


2023
2022
£000
£000

Corporation tax


Current tax on profits for the year
148
-

Adjustments in respect of previous periods
40
(98)


Total current tax
188
(98)

Deferred tax


Origination and reversal of timing differences
(439)
82

Changes to tax rates
-
96

Adjustments in respect of previous periods
21
(50)

Total deferred tax
(418)
128


Taxation on (loss)/profit on ordinary activities
(230)
30

Factors affecting tax charge for the 52 weeks/year

The tax assessed for the 52 weeks/year is lower than (2022 - higher than) the standard rate of corporation tax in the UK of 19% (2022 - 19%). The differences are explained below:

2023
2022
£000
£000


Profit/(loss) on ordinary activities before tax
371
(202)


Profit/(loss) on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2022 - 19%)
71
(38)

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
68
8

Remeasurement of tax rate for changes
(89)
111

Utilisation of tax losses
-
46

Movement in deferred tax not recognised
(70)
-

Adjustments to tax charge in respect of prior periods
61
(148)

Tax reliefs on disposal of assets
(271)
-

Unrelieved tax losses carried forward
-
51

Total tax charge for the 52 weeks/year
(230)
30


Factors that may affect future tax charges

In  April 2023 the corporation tax rate will increase to 25% from 19% for taxable profits over £250,000. 

Page 28

 
HYPERAMA PLC
 

 
NOTES TO THE FINANCIAL STATEMENTS
For the 52 weeks Ended 31 January 2023

12.


Dividends

2023
2022
£000
£000


Dividends paid on ordinary shares
159
164


13.


Exceptional items

2023
2022
£000
£000


Demurrage
453
814

Purchase price variances - freight
-
129

Stock losses
505
-

Profit on sale of division
(5,603)
-

Distribution costs - one-off
272
-

(4,373)
943

These costs are deemed exceptional due to their  size and incidence.


14.


Parent company profit for the year

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Profit and loss account in these financial statements. The profit after tax of the parent Company for the 52 weeks/year was £602 thousand (2022 - loss £237 thousand).

Page 29

 
HYPERAMA PLC
 

 
NOTES TO THE FINANCIAL STATEMENTS
For the 52 weeks Ended 31 January 2023

15.


Intangible assets

Group





Patents
Computer software
Total

£000
£000
£000



Cost


At 1 February 2022
103
414
517


Additions
3
3
6


Disposals
(11)
(76)
(87)



At 31 January 2023

95
341
436



Amortisation


At 1 February 2022
75
75
150


Charge for the 52 weeks on owned assets
11
90
101


On disposals
-
(45)
(45)



At 31 January 2023

86
120
206



Net book value



At 31 January 2023
9
221
230



At 31 January 2022
28
339
367



Page 30

 
HYPERAMA PLC
 

 
NOTES TO THE FINANCIAL STATEMENTS
For the 52 weeks Ended 31 January 2023
 
           15.Intangible assets (continued)

Company




Patents
Computer software
Total

£000
£000
£000



Cost


At 1 February 2022
95
414
509


Additions
3
3
6


Disposals
(11)
(76)
(87)



At 31 January 2023

87
341
428



Amortisation


At 1 February 2022
75
75
150


Charge for the year
11
90
101


On disposals
-
(45)
(45)



At 31 January 2023

86
120
206



Net book value



At 31 January 2023
1
221
222



At 31 January 2022
20
339
359

Page 31

 
HYPERAMA PLC
 

 
NOTES TO THE FINANCIAL STATEMENTS
For the 52 weeks Ended 31 January 2023

16.


Tangible fixed assets

Group






Long leasehold property
Plant and machinery
Motor vehicles
Total

£000
£000
£000
£000



Cost or valuation


At 1 February 2022
8,400
17,645
2,387
28,432


Additions
-
383
-
383


Disposals
-
(16,493)
(809)
(17,302)



At 31 January 2023

8,400
1,535
1,578
11,513



Depreciation


At 1 February 2022
-
13,578
1,453
15,031


Charge for the 52 weeks on owned assets
-
747
113
860


Charge for the 52 weeks on financed assets
-
8
219
227


Disposals
-
(13,781)
(678)
(14,459)



At 31 January 2023

-
552
1,107
1,659



Net book value



At 31 January 2023
8,400
983
471
9,854



At 31 January 2022
8,400
4,066
934
13,400

Page 32

 
HYPERAMA PLC
 

 
NOTES TO THE FINANCIAL STATEMENTS
For the 52 weeks Ended 31 January 2023

           16.Tangible fixed assets (continued)

The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:


2023
2022
£000
£000



Plant and machinery
-
74

Motor vehicles
359
727

359
801

Cost or valuation at 31 January 2023 is as follows:

Land and buildings
£000


At cost
-
At valuation:

June 2021 open market valuation
8,400



8,400

If the land and buildings had not been included at valuation they would have been included under the historical cost convention as follows:

2023
2022
£000
£000
as restated

Group


Cost
5,708
5,708

Accumulated depreciation
(99)
(99)

Net book value
5,609
5,609

During the year ended 31 January 2022, the building at Bull Close was revalued by CBRE Ltd - a firm of Chartered Surveyors at market value. A professional valuation was undertaken July 2021 on behalf of HSBC Bank Plc .
The long leasehold property is pledged as security for the Group's bank loans.

Page 33

 
HYPERAMA PLC
 

 
NOTES TO THE FINANCIAL STATEMENTS
For the 52 weeks Ended 31 January 2023

           16.Tangible fixed assets (continued)


Company






Long Leasehold property
Plant and machinery
Motor vehicles
Total

£000
£000
£000
£000

Cost or valuation


At 1 February 2022
8,400
16,732
2,387
27,519


Additions
-
255
-
255


Disposals
-
(16,493)
(809)
(17,302)



At 31 January 2023

8,400
494
1,578
10,472



Depreciation


At 1 February 2022
-
13,453
1,453
14,906


Charge for the 52 weeks on owned assets
-
669
113
782


Charge for the 52 weeks on financed assets
-
8
219
227


Disposals
-
(13,781)
(678)
(14,459)



At 31 January 2023

-
349
1,107
1,456



Net book value



At 31 January 2023
8,400
145
471
9,016



At 31 January 2022
8,400
3,280
934
12,614






The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:


2023
2022
£000
£000



Plant and machinery
-
74

Motor vehicles
359
727

359
801

Page 34

 
HYPERAMA PLC
 

 
NOTES TO THE FINANCIAL STATEMENTS
For the 52 weeks Ended 31 January 2023
 
 
 
 
Cost or valuation at 31 January 2023 is as follows:

Land and buildings
£000


At cost
-
At valuation:

June 2021 Open Market Valuation
8,400



 8,400


17.


Fixed asset investments


Subsidiary undertakings


he parent company owns 100% of the total share capital of £100 in its two subsidiary undertakings.


The following were subsidiary undertakings of the Company:

Name

Registered office

Class of shares

Holding

MKS Trading Limited
1 Prospect Place, Pride Park, Derby, DE24 8HG
Ordinary
100%
Hyperama Interim Limited
Bull Close Road, Nottingham, NG7 2UT
Ordinary
100%

Hyperama Interim Limited is a dormant company.


18.


Stocks

Group
Group
Company
Company
2023
2022
2023
2022
£000
£000
£000
£000

Finished goods and goods for resale
5,991
13,686
5,990
13,685


The difference between purchase price or production cost of stocks and their replacement cost is not material.

The carrying value of stocks are stated net of impairment losses totalling £137,000 (2022 - £406.000). Impairment losses totalling  £(163,000) (2022 - £68,000) were recognised in profit and loss.

Page 35

 
HYPERAMA PLC
 

 
NOTES TO THE FINANCIAL STATEMENTS
For the 52 weeks Ended 31 January 2023

19.


Debtors

Group
Group
Company
Company
2023
2022
2023
2022
£000
£000
£000
£000

Due after more than one year

Other debtors
6,000
-
6,000
-


Group
Group
Company
Company
2023
2022
2023
2022
£000
£000
£000
£000

Due within one year

Trade debtors
5,252
8,078
5,251
8,078

Amounts owed by group undertakings
-
-
892
1,112

Other debtors
1,427
2,501
1,324
2,210

Prepayments and accrued income
655
1,096
627
1,043

7,334
11,675
8,094
12,443


An impairment loss of £687,000  (2022: £13,000) was recognised against trade debtors in the year.
Amounts advanced on invoice discounting are secured on trade debtors (see note 21).
Included in other debtors at 31 January 2022 were loans to the directors.These are included in other creditors at 31 January 2023. For further details see note 32.
Other debtors includes amounts due from related parties. See note 33.


20.


Cash and cash equivalents

Group
Group
Company
Company
2023
2022
2023
2022
£000
£000
£000
£000

Cash at bank and in hand
102
461
69
437


Page 36

 
HYPERAMA PLC
 

 
NOTES TO THE FINANCIAL STATEMENTS
For the 52 weeks Ended 31 January 2023

21.


Creditors: Amounts falling due within one year

Group
Group
Company
Company
2023
2022
2023
2022
£000
£000
£000
£000

Bank loans (notes 22 and 23)
572
619
572
619

Other loans (notes 22 and 23)
800
-
800
-

Invoice discounting and advances
2,253
5,248
2,253
5,248

Trade creditors
3,104
12,790
3,053
12,741

Corporation tax
143
45
143
46

Other taxation and social security
61
1,002
61
1,002

Obligations under finance lease and hire purchase contracts (note 24)
110
203
110
203

Other creditors
1,147
607
1,147
607

Accruals and deferred income
1,321
1,636
1,239
1,617

9,511
22,150
9,378
22,083


Obligations under finance leases and hire purchase contracts are secured on the assets to which they relate.
Advances against debtors and stock are secured over trade debtors and stock balances.

Page 37

 
HYPERAMA PLC
 

 
NOTES TO THE FINANCIAL STATEMENTS
For the 52 weeks Ended 31 January 2023

22.


Creditors: Amounts falling due after more than one year

Group
Group
Company
Company
2023
2022
2023
2022
£000
£000
£000
£000

Bank loans (note 23)
1,790
2,331
1,790
2,331

Other loans (note 23)
3,200
-
3,200
-

Net obligations under finance leases and hire purchase contracts (note 24)
89
212
89
212

5,079
2,543
5,079
2,543


Obligations under finance lease and hire purchase contracts are secured on the assets to which they relate.
The other loan is an amount due to the Hyperama Executive pension scheme. The loan is repayable in annual installments and attracts interest at 1% above the Bank of England base rate. For further details see note 33  to the financial statements.
The Group and Company's bank loans and overdraft are secured by a first legal charge over the long leasehold land and buildings at Hyperama Building, Bull Close Road, Lenton Industrial Estate, Nottingham, NG7 2UT and by fixed and floating charges over all the assets of the Company.
In 2019, the Group and  Company drew down a loan of £2.4 million. At 31 January 2023 the balance on this loan is £1.4 million, and is repayable in equal quarterly installments of £79k over a 10 year period. Interest on this bank loan is repayable at a % above LIBOR.
The Group and Company drew down a further £959,000 of £1.9 million loan. At 31 January 2023, the balance on this loan is £934k. This loan is repayable in equal quarterly installments of £85k and is repayable in 5 years commencing first quarter 2021. Interest on this bank loan is repayable at a % above LIBOR.

Page 38

 
HYPERAMA PLC
 

 
NOTES TO THE FINANCIAL STATEMENTS
For the 52 weeks Ended 31 January 2023

23.


Loans

An analysis of the maturity of loans is given below:


Group
Group
Company
Company
2023
2022
2023
2022
£000
£000
£000
£000

Amounts falling due within one year

Bank loans
572
619
572
619

Other loans
800
-
800
-

Amounts falling due 1-2 years

Bank loans
593
626
593
626

Other loans
800
-
800
-

Amounts falling due 2-5 years

Bank loans
1,197
1,204
1,197
1,204

Other loans
2,400
-
2,400
-

Amounts falling due after more than 5 years

Bank loans
-
502
-
502

6,362
2,951
6,362
2,951



24.


Hire purchase and finance leases


Minimum lease payments under hire purchase fall due as follows:

Group
Group
Company
Company
2023
2022
2023
2022
£000
£000
£000
£000

Within one year
110
203
110
203

Between 1-5 years
89
212
89
212

199
415
199
415


25.


Deferred taxation


Group



2023


£000






At beginning of year
(465)


Charged to profit or loss
418



At end of year
(47)

Page 39

 
HYPERAMA PLC
 

 
NOTES TO THE FINANCIAL STATEMENTS
For the 52 weeks Ended 31 January 2023
 
25.Deferred taxation (continued)

Company


2023


£000






At beginning of year
(480)


Charged to profit or loss
420



At end of year
(60)

Group
Group
Company
Company
2023
2022
2023
2022
£000
£000
£000
£000

Accelerated capital allowances
(58)
(472)
(70)
(486)

Pension surplus
1
2
1
2

Short term timing differences
9
4
9
4

(48)
(466)
(60)
(480)


The expected net reversal of deferred taxtion assets and liabilities is not considered to be significant.


26.


Share capital

2023
2022
£000
£000
Allotted, called up and fully paid



148,760 (2022 - 148,760) Ordinary shares of £1.00 each
149
149



27.


Reserves

Revaluation reserve

Includes the cumulative effect of a revaluation of tangible fixed assets where a policy of revaluation has been adopted. This reserve is non distributable.

Capital redemption reserve

The capital redemption reserves arose on the repurchase of issued shares and in non-distributable.

Profit and loss account

Includes all current and prior year retained profit and losses. The reserve is distributable.

Page 40

 
HYPERAMA PLC
 

 
NOTES TO THE FINANCIAL STATEMENTS
For the 52 weeks Ended 31 January 2023

28.


Discontinued operations

During the year, the Group disposed of its Cash and Carry operations. A summary of these transactions is set out below: The disposals of the Cash and Carry operations occurred on October 2022 / November 2022.

£000


Cash proceeds
13,065

13,065

Net assets disposed of:


Tangible fixed assets
(2,802)

Stocks
(4,622)

Debtors
(38)

 
 
7,462

Profit on disposal before tax
(5,603)

The net inflow of cash in respect of the sale of the Cash and Carry division is as follows:

£000


Cash consideration
13,065

Net inflow of cash
13,065


29.


Contingent liabilities

The Group has a duty deferment guarantee with HMRC of  £250,000 (2022: £250,000).
The Group also has in place a £5,000 guarantee (2022: £5,000) to facilitate the purchasing from the Rural Payments Agency. 
The Group has an unlimited multilateral guarantee against the borrowings of a company under common control. The value of the borrowings under this guarantee is £Nil at the year end (2022: £1,984,259)


30.


Pension commitments

The Group operates a defined contribution pension scheme covering certain employees. The assets of the scheme are held separately from those of the Group in an independently administered fund Pension cost charged against the profits represent the amount paid to the scheme in respect of the period. Contributions for the period to 31 January 2023 amounted to £126,000 (2022: £106,000). There were outstanding contributions of £4,000 (2022: £20,000).

Page 41

 
HYPERAMA PLC
 

 
NOTES TO THE FINANCIAL STATEMENTS
For the 52 weeks Ended 31 January 2023

31.


Commitments under operating leases

At 31 January 2023 the Group and the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:


Group
Group
Company
Company
2023
2022
2023
2022
£000
£000
£000
£000

Not later than 1 year
813
1,053
688
928

Later than 1 year and not later than 5 years
2,429
3,311
1,929
2,686

Later than 5 years
167
964
-
798

3,409
5,328
2,617
4,412

32.


Transactions with directors

At 31 January 2023, there was an amount of £626,317 due to M S Johal, a director and shareholder (2022: £163,489 due from). The maximum balance owed during the period to M S Johal was £633,676 (2022: £183,489). Amounts withdrawn in total over the year were £116,944 and monies repaid in total over the year were £906,750. The loan is unsecured and repayable on demand.
Included in other debtors is a loan to M Singh, a director and shareholder. The balance at the period end was £9,153 due to M Singh (2022: £2,719). The maximum outstanding balance during the period was £3,550,158 (2022: £110,635). Amounts withdrawn in total over the year £3,575,613 and monies repaid in total over the year £3,582,047. The loan is unsecured and repayable on demand.


33.


Related party transactions

During the period, the Group paid rent of £811,057 (2022: £861,000) to the Hyperama Executive Retirement Benefits Scheme for the rental of business premises. At 31 January 2023, the Group owed the pension scheme £4,016,252 (2022: £151,218). This loan accrues interest at 1% above base rate and is repayable over 5 years.
The Group has paid rental to a company under common control of £125,000 during the year (2022: £125,000). The Group is owed £1,015,869 (2022: £885,499) by this company at the year end. This loan accrues interest at 3% above base rate and is repayable on demand.
The Group is owed £94,500 (2022: £94,500) by Quick Self Storage Holdings Limited, a company under common control.
The Group owes £51,896 (2022: £182,212) to Quick Self Storage (Darlington) Limited, a company under common control. 
During the year, the Group lent £6 million to Hyperama Investments Limited, a company controlled by M Singh. This balance is a debtor at the year end. The loan is interest-free and has no set date for repayment.
There are no key management personnel other than the directors. Directors' remuneration is disclosed in note 9.


34.


Controlling party

The ultimate controlling party is M S Johal by virtue of his 54.29% holding in the company's issued equity share capital.

Page 42

 
HYPERAMA PLC
 

Page 43