REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JANUARY 2023 |
FOR |
WHITTAKER'S JEWELLERS LIMITED |
REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JANUARY 2023 |
FOR |
WHITTAKER'S JEWELLERS LIMITED |
WHITTAKER'S JEWELLERS LIMITED (REGISTERED NUMBER: 05018945) |
CONTENTS OF THE FINANCIAL STATEMENTS |
for the Year Ended 31 January 2023 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 3 |
Report of the Independent Auditors | 5 |
Income Statement | 8 |
Other Comprehensive Income | 9 |
Balance Sheet | 10 |
Statement of Changes in Equity | 11 |
Cash Flow Statement | 12 |
Notes to the Cash Flow Statement | 13 |
Notes to the Financial Statements | 14 |
WHITTAKER'S JEWELLERS LIMITED |
COMPANY INFORMATION |
for the Year Ended 31 January 2023 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Statutory Auditors |
Chartered Accountants |
Carlton House |
Bull Close Lane |
Halifax |
HX1 2EG |
WHITTAKER'S JEWELLERS LIMITED (REGISTERED NUMBER: 05018945) |
STRATEGIC REPORT |
for the Year Ended 31 January 2023 |
The directors present their strategic report for the year ended 31 January 2023. |
REVIEW OF BUSINESS |
Four branches reverted to the franchisor during February and March 2022, leaving the company with just one non-franchised branch. |
Despite the huge disruption caused by the franchise reversions the directors consider the results and position of the company to be satisfactory and the company is well placed to take advantage of any opportunities that arise in the future. |
The continued aim of the company is to offer quality products with excellent service. |
The key performance indicators include turnover, pretax profits, net current assets and net assets. |
The directors monitor turnover and profitability to ensure it is in line with expectations and previously set targets. |
Turnover for the year reduced from £8.5m to £1.2m with pretax profits falling from £1.6 million to £0.1 million. |
At the year end the company had net current assets of £10m (2022 £10m) and net assets of £11m (2022 £11m). |
Margins have been affected by selling stock back to the franchisor at cost. |
Other key performance indicators are: |
2023 | 2022 |
Number of stores operating during year | 5 | 6 |
Number of stores at year end | 1 | 5 |
Average number of employees | 10 | 64 |
Gross profit percentage | 47% | 43% |
PRINCIPAL RISKS AND UNCERTAINTIES |
The directors consider the following areas to be the principal risks and uncertainties faced by the company: |
Competition and the market. The company faces strong competition in the supply of its products in a changing environment. Economic and political uncertainty can also affect retail spending. |
Precious metal prices. Prices can fluctuate based on political and economic factors and can therefore impact on the price of products supplied and customer demand. |
Fluctuation in currency rates. The company buys products in sterling but a fluctuation in rates can indirectly result in price changes. |
The directors are constantly monitoring the risks and uncertainties faced by the company and take appropriate action wherever possible in terms of policy to reduce and mitigate such risks. |
ON BEHALF OF THE BOARD: |
WHITTAKER'S JEWELLERS LIMITED (REGISTERED NUMBER: 05018945) |
REPORT OF THE DIRECTORS |
for the Year Ended 31 January 2023 |
The directors present their report with the financial statements of the company for the year ended 31 January 2023. |
PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of retail jewellers. |
DIVIDENDS |
Interim dividends per share were paid as follows: |
£20 | - 24 February 2022 |
£20 | - 22 March 2022 |
£20 | - 22 April 2022 |
£20 | - 24 May 2022 |
£20 | - 23 June 2022 |
£20 | - 27 July 2022 |
£20 | - 24 August 2022 |
£20 | - 23 September 2022 |
£20 | - 24 October 2022 |
£20 | - 23 November 2022 |
£20 | - 15 December 2022 |
£120 | - 23 January 2023 |
£ |
The directors recommend that no final dividend be paid. |
The total distribution of dividends for the year ended 31 January 2023 will be £ |
FUTURE DEVELOPMENTS |
The company continues to trade through its non-franchised branch and is considering various options for diversification.. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 February 2022 to the date of this report. |
FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES |
The company maintains a healthy bank balance and considers liquidity risk to be low. There is no credit risk as retail sales are settled at the till. The company's activities indirectly expose it to the risk of changes in foreign currency exchange rates. Such risks are under constant review by the directors. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
WHITTAKER'S JEWELLERS LIMITED (REGISTERED NUMBER: 05018945) |
REPORT OF THE DIRECTORS |
for the Year Ended 31 January 2023 |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
WHITTAKER'S JEWELLERS LIMITED |
Opinion |
We have audited the financial statements of Whittaker's Jewellers Limited (the 'company') for the year ended 31 January 2023 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the company's affairs as at 31 January 2023 and of its profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
WHITTAKER'S JEWELLERS LIMITED |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page three, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so. |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
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. |
We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations; this responsibility lies with management. |
The engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations. |
We identified the laws and regulations applicable to the company through discussions with the directors and from our commercial knowledge and experience of other regulated entities. |
We focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or operation of the company. |
These included the Companies Act 2006 and legislation for taxation, data protection, anti-bribery, employment and health & safety. |
The company is also subject to the Hallmarking Act 1973 because it supplies precious metal jewellery (gold, silver, platinum or palladium). Under this Act, the shop must display a notice explaining the approved hallmarks where customers can see it and using the approved Dealer A format. |
The company is also subject to Anti-Money Laundering regulations. The company is not a registered High Value Dealer so cannot accept €10,000 or more in cash. |
During the year the company was also subject to franchise agreements with its franchisor relating to four of the five branches trading during the year. All of these agreements ceased during February and March 2022. |
We assessed the extent of compliance with these laws and regulations through making enquiries of the directors. |
Identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. |
We enquired of the directors if there was any actual or potential litigation or claims involving the company. |
We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur by the following procedures: |
We asked the directors as to where they considered there was susceptibility to fraud and whether they had knowledge of actual, suspected or alleged fraud. |
We considered the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. |
We used the Mercia audit package to guide our audit work so that we maximised the likelihood of detection of irregularities, including fraud. |
We addressed the fraud risk relating to management override of controls by the following procedures: |
We carried out journal testing and analytical procedures to identify any unusual matters. |
We assessed whether there was any potential management bias evident in making judgements and assumptions underlying accounting estimates. |
We investigated the rationale behind significant or unusual transactions. |
We addressed the fraud risk relating to revenue recognition by carrying out substantive testing of sales. |
We checked that the dealer A notice was on display. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
WHITTAKER'S JEWELLERS LIMITED |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Statutory Auditors |
Chartered Accountants |
Carlton House |
Bull Close Lane |
Halifax |
HX1 2EG |
WHITTAKER'S JEWELLERS LIMITED (REGISTERED NUMBER: 05018945) |
INCOME STATEMENT |
for the Year Ended 31 January 2023 |
31.1.23 | 31.1.22 |
Notes | £ | £ | £ | £ |
TURNOVER | 3 |
Cost of sales |
GROSS PROFIT |
Distribution costs |
Administrative expenses |
572,115 | 2,145,602 |
12,234 | 1,479,464 |
Other operating income |
OPERATING PROFIT | 5 |
Interest receivable and similar income |
PROFIT BEFORE TAXATION |
Tax on profit | 6 |
PROFIT FOR THE FINANCIAL YEAR |
WHITTAKER'S JEWELLERS LIMITED (REGISTERED NUMBER: 05018945) |
OTHER COMPREHENSIVE INCOME |
for the Year Ended 31 January 2023 |
31.1.23 | 31.1.22 |
Notes | £ | £ |
PROFIT FOR THE YEAR |
OTHER COMPREHENSIVE INCOME |
Pension reserve movement |
Income tax relating to other comprehensive income |
OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
WHITTAKER'S JEWELLERS LIMITED (REGISTERED NUMBER: 05018945) |
BALANCE SHEET |
31 January 2023 |
31.1.23 | 31.1.22 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 9 |
Tangible assets | 10 |
Investments | 11 |
CURRENT ASSETS |
Stocks | 12 |
Debtors | 13 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 14 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
15 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 19 | ( |
) | ( |
) |
PENSION ASSET | 21 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 20 |
Pension reserve |
Retained earnings |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
WHITTAKER'S JEWELLERS LIMITED (REGISTERED NUMBER: 05018945) |
STATEMENT OF CHANGES IN EQUITY |
for the Year Ended 31 January 2023 |
Called up |
share | Retained | Pension | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1 February 2021 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - |
Balance at 31 January 2022 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - |
Balance at 31 January 2023 |
WHITTAKER'S JEWELLERS LIMITED (REGISTERED NUMBER: 05018945) |
CASH FLOW STATEMENT |
for the Year Ended 31 January 2023 |
31.1.23 | 31.1.22 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | ( |
) |
Tax paid | ( |
) |
Net cash from operating activities | ( |
) |
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Sale of tangible fixed assets |
Interest received |
Net cash from investing activities | ( |
) |
Cash flows from financing activities |
Loan advance from (to) related party | (17,530 | ) | 12,900 |
Government grants | 193 | 158,735 |
Amount introduced by directors | 343,916 | 9,117 |
Amount withdrawn by directors | (367,263 | ) | (73,899 | ) |
Equity dividends paid | ( |
) | ( |
) |
Net cash from financing activities | ( |
) | ( |
) |
(Decrease)/increase in cash and cash equivalents | ( |
) |
Cash and cash equivalents at beginning of year |
2 |
8,562,214 |
5,766,520 |
Cash and cash equivalents at end of year | 2 |
WHITTAKER'S JEWELLERS LIMITED (REGISTERED NUMBER: 05018945) |
NOTES TO THE CASH FLOW STATEMENT |
for the Year Ended 31 January 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
31.1.23 | 31.1.22 |
£ | £ |
Profit before taxation |
Depreciation charges |
Loss on disposal of fixed assets |
Government grants | ( |
) | ( |
) |
Finance income | (49,246 | ) | (734 | ) |
337,003 | 1,606,925 |
Decrease in stocks |
(Increase)/decrease in trade and other debtors | ( |
) |
Decrease in trade and other creditors | ( |
) | ( |
) |
Cash generated from operations | ( |
) |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31 January 2023 |
31.1.23 | 1.2.22 |
£ | £ |
Cash and cash equivalents | 7,477,901 | 8,562,231 |
Bank overdrafts | ( |
) | ( |
) |
7,477,777 | 8,562,214 |
Year ended 31 January 2022 |
31.1.22 | 1.2.21 |
£ | £ |
Cash and cash equivalents | 8,562,231 | 5,766,520 |
Bank overdrafts | ( |
) |
8,562,214 | 5,766,520 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.2.22 | Cash flow | At 31.1.23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 8,562,231 | (1,084,330 | ) | 7,477,901 |
Bank overdrafts | (17 | ) | (107 | ) | (124 | ) |
8,562,214 | ( |
) | 7,477,777 |
Total | 8,562,214 | (1,084,437 | ) | 7,477,777 |
WHITTAKER'S JEWELLERS LIMITED (REGISTERED NUMBER: 05018945) |
NOTES TO THE FINANCIAL STATEMENTS |
for the Year Ended 31 January 2023 |
1. | STATUTORY INFORMATION |
Whittaker's Jewellers Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
The company's principal place of business is Ground Floor, 63 High Street, Yarm, Stockton on Tees. |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Critical accounting judgements and key sources of estimation uncertainty |
Estimates and judgements are continually evaluated by management and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. |
The company makes estimates and assumptions regarding the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities within the next financial year are addressed below: |
Useful economic lives of tangible and intangible assets |
The annual depreciation and amortisation charge is sensitive to changes in the estimated useful economic lives and residual values of assets. The useful economic lives and residual values are re-assessed annually. Amounts involved are shown in the fixed assets note. |
Defined benefit pension scheme |
Details of the estimates and their underlying assumptions are detailed in the Employee Benefit Obligations note. |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Turnover is recognised when goods are delivered to the customer. |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
Tangible fixed assets |
Short leasehold | - |
Plant and machinery | - |
Motor vehicles | - |
Computer equipment | - |
Fixed assets are initially recognised when they have been brought into use by the company. If there is any indication of impairment the assets are written down accordingly. |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
The company measures the cost of stock on a first in first out basis and includes expenditure incurred in acquiring the stocks. |
WHITTAKER'S JEWELLERS LIMITED (REGISTERED NUMBER: 05018945) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31 January 2023 |
2. | ACCOUNTING POLICIES - continued |
Financial instruments |
(i) Basic financial assets and liabilities are recognised when the company becomes a party to the contractual provisions of the instrument. |
Basic financial assets and liabilities are initially recognised at transaction price, unless the arrangement constitutes a financing transaction. Financing transactions are measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. |
Basic financial assets and liabilities consist of trade debtors, other debtors, cash and bank and trade and other creditors. These assets and liabilities are measured at amortised cost equivalent to the undiscounted amount of cash or other consideration expected to be paid or received. |
At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment . |
(ii) Investments are measured at cost less impairment. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The company operates a defined benefit pension scheme for the directors. The company's defined benefit pension scheme measures assets at fair value and obligations at present value to arrive at a surplus or deficit in the balance sheet. |
The company also operates a defined contribution pension scheme for all employees. Contributions payable to this scheme are charged to profit or loss in the period to which they relate. |
Government grants |
Government grants are recognised in accordance with the accrual model. |
3. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the company. |
An analysis of turnover by class of business is given below: |
31.1.23 | 31.1.22 |
£ | £ |
WHITTAKER'S JEWELLERS LIMITED (REGISTERED NUMBER: 05018945) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31 January 2023 |
4. | EMPLOYEES AND DIRECTORS |
31.1.23 | 31.1.22 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
31.1.23 | 31.1.22 |
Administrative | 1 | 2 |
Retail | 9 | 62 |
31.1.23 | 31.1.22 |
£ | £ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes |
Defined benefit schemes |
5. | OPERATING PROFIT |
The operating profit is stated after charging: |
31.1.23 | 31.1.22 |
£ | £ |
Other operating leases |
Depreciation - owned assets |
Loss on disposal of fixed assets |
Auditors' remuneration |
6. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
31.1.23 | 31.1.22 |
£ | £ |
Current tax: |
UK corporation tax |
Tax on profit |
UK corporation tax has been charged at 19% (2022 - 19%). |
WHITTAKER'S JEWELLERS LIMITED (REGISTERED NUMBER: 05018945) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31 January 2023 |
6. | TAXATION - continued |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
31.1.23 | 31.1.22 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of (2022 - |
Effects of: |
Expenses not deductible for tax purposes |
Depreciation in excess of capital allowances |
Total tax charge | 51,339 | 323,021 |
Tax effects relating to effects of other comprehensive income |
31.1.23 |
Gross | Tax | Net |
£ | £ | £ |
Pension reserve movement | - | 328,000 |
31.1.22 |
Gross | Tax | Net |
£ | £ | £ |
Pension reserve movement | - | 90,000 |
There are no factors affecting future tax charges. |
7. | DIVIDENDS |
31.1.23 | 31.1.22 |
£ | £ |
Ordinary shares of £1 each |
Interim |
8. | GOVERNMENT GRANTS |
2023 | 2022 |
Coronavirus job retention scheme | - | 88,049 |
Local government pandemic grants for retailers | - | 69,820 |
Covid SSP grants | 193 | 866 |
Total | 193 | 158,735 |
Additional government assistance: no business rates were charged from 1 April 2020 to 30 June 2021.Then from 1 July 2021 to 31 March 2022 only one third of business rates were charged to the company by the relevant local authorities. Finally, from 1 April 2022 to the year end only half of business rates were charged. |
WHITTAKER'S JEWELLERS LIMITED (REGISTERED NUMBER: 05018945) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31 January 2023 |
9. | INTANGIBLE FIXED ASSETS |
Franchise |
rights |
£ |
COST |
At 1 February 2022 |
Disposals | ( |
) |
At 31 January 2023 |
AMORTISATION |
At 1 February 2022 |
Eliminated on disposal | ( |
) |
At 31 January 2023 |
NET BOOK VALUE |
At 31 January 2023 |
At 31 January 2022 |
10. | TANGIBLE FIXED ASSETS |
Short | Plant and | Motor | Computer |
leasehold | machinery | vehicles | equipment | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 February 2022 |
Additions |
Disposals | ( |
) | ( |
) | ( |
) | ( |
) |
At 31 January 2023 |
DEPRECIATION |
At 1 February 2022 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) | ( |
) | ( |
) |
At 31 January 2023 |
NET BOOK VALUE |
At 31 January 2023 |
At 31 January 2022 |
11. | FIXED ASSET INVESTMENTS |
Unlisted |
investments |
£ |
COST |
At 1 February 2022 |
and 31 January 2023 |
NET BOOK VALUE |
At 31 January 2023 |
At 31 January 2022 |
WHITTAKER'S JEWELLERS LIMITED (REGISTERED NUMBER: 05018945) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31 January 2023 |
12. | STOCKS |
31.1.23 | 31.1.22 |
£ | £ |
Goods for resale |
13. | DEBTORS |
31.1.23 | 31.1.22 |
£ | £ |
Amounts falling due within one year: |
Trade debtors |
Other debtors |
Directors' current accounts | 78,642 | 59,652 |
Tax |
Prepayments & accrued income |
Amounts falling due after more than one year: |
Tax |
Aggregate amounts |
14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.1.23 | 31.1.22 |
£ | £ |
Bank loans and overdrafts (see note 16) |
Trade creditors |
Tax |
VAT | 17,929 | 324,756 |
Other creditors |
Directors' current accounts | 2,441 | 6,798 |
Accrued expenses |
15. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
31.1.23 | 31.1.22 |
£ | £ |
Accruals and deferred income |
16. | LOANS |
An analysis of the maturity of loans is given below: |
31.1.23 | 31.1.22 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank overdrafts |
WHITTAKER'S JEWELLERS LIMITED (REGISTERED NUMBER: 05018945) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31 January 2023 |
17. | LEASING AGREEMENTS |
Minimum lease payments under non-cancellable operating leases fall due as follows: |
31.1.23 | 31.1.22 |
£ | £ |
Within one year |
Between one and five years |
Rent concessions of £nil (2022: £9,620) have been netted off rental charges in the profit & loss account. This relates to just one of the stores trading at the time the first pandemic lockdown was implemented. The landlords of the other stores did not offer rent concessions. |
18. | FINANCIAL INSTRUMENTS |
The company has the following financial instruments. |
Financial assets measured at amortised cost: trade debtors & other debtors with amounts as shown in the debtors note. |
Financial liabilities measured at undiscounted amounts payable: trade creditors, other creditors and directors' current accounts with amounts as shown in the creditors note. |
Equity instruments measured at cost less impairment: investments with amount shown in the investments note. |
19. | PROVISIONS FOR LIABILITIES |
31.1.23 | 31.1.22 |
£ | £ |
Other provisions |
Dilapidations provision | 1,700 | 1,700 |
Dilapidations provision is expected to be needed when the lease ends |
20. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 31.1.23 | 31.1.22 |
value: | £ | £ |
Ordinary | £1 | 1,000 | 1,000 |
Shares are non redeemable with full voting, dividend and distribution rights. |
21. | EMPLOYEE BENEFIT OBLIGATIONS |
The company operates a defined benefit pension scheme for the benefit of the directors. The scheme was funded by an initial contribution of £1.6 million. No further contributions are expected to be needed. |
The most recent actuarial valuation was carried out at 31 January 2023. |
The amounts recognised in profit or loss are as follows: |
Defined benefit |
pension plans |
31.1.23 | 31.1.22 |
£ | £ |
Current service cost |
Net interest from net defined benefit asset/liability |
(18,000 |
) |
(12,000 |
) |
Past service cost |
(18,000 | ) | (12,000 | ) |
Actual return on plan assets | ( |
) |
WHITTAKER'S JEWELLERS LIMITED (REGISTERED NUMBER: 05018945) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31 January 2023 |
21. | EMPLOYEE BENEFIT OBLIGATIONS - continued |
Changes in the present value of the defined benefit obligation are as follows: |
Defined benefit |
pension plans |
31.1.23 | 31.1.22 |
£ | £ |
Opening defined benefit obligation |
Interest cost |
Actuarial losses/(gains) | ( |
) | ( |
) |
Changes in the fair value of scheme assets are as follows: |
Defined benefit |
pension plans |
31.1.23 | 31.1.22 |
£ | £ |
Opening fair value of scheme assets |
Expected return | 35,000 | 25,000 |
Actuarial gains/(losses) | ( |
) |
The amounts recognised in other comprehensive income are as follows: |
Defined benefit |
pension plans |
31.1.23 | 31.1.22 |
£ | £ |
Actual return on scheme assets less expected return |
( |
) |
Experience gains & losses on scheme liabilities |
(430,000 |
) |
(55,000 |
) |
(310,000 | ) | (78,000 | ) |
The major categories of scheme assets as a percentage of total scheme assets are as follows: |
Defined benefit |
pension plans |
31.1.23 | 31.1.22 |
Equities | 57% | 68% |
Commodities | 14% | 8% |
Cash | 9% | 10% |
Bonds | 12% | 14% |
Property | 8% | - |
100% | 100% |
Principal actuarial assumptions at the balance sheet date (expressed as weighted averages): |
31.1.23 | 31.1.22 |
Discount rate |
Future pension increases |
Expected return on plan assets | 2.00% | 1.50% |
WHITTAKER'S JEWELLERS LIMITED (REGISTERED NUMBER: 05018945) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31 January 2023 |
21. | EMPLOYEE BENEFIT OBLIGATIONS - continued |
The amount shown in other comprehensive income as experience gains and losses on scheme liabilities has arisen as a result of changes in assumptions underlying the present value of scheme liabilities. |
22. | CAPITAL COMMITMENTS |
31.1.23 | 31.1.22 |
£ | £ |
Contracted but not provided for in the |
financial statements |
23. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
The following advances and credits to directors subsisted during the years ended 31 January 2023 and 31 January 2022: |
31.1.23 | 31.1.22 |
£ | £ |
Balance outstanding at start of year |
Amounts advanced |
Amounts repaid | ( |
) | ( |
) |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year |
Balance outstanding at start of year |
Amounts advanced |
Amounts repaid | ( |
) | ( |
) |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year |
Balance outstanding at start of year |
Amounts advanced |
Amounts repaid |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year |
Balance outstanding at start of year |
Amounts advanced |
Amounts repaid | ( |
) |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year |
Interest is charged on overdrawn loan accounts at the official HMRC rate. Such balances are repayable on demand. |
24. | RELATED PARTY DISCLOSURES |
WHITTAKER'S JEWELLERS LIMITED (REGISTERED NUMBER: 05018945) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31 January 2023 |
24. | RELATED PARTY DISCLOSURES - continued |
31.1.23 | 31.1.22 |
£ | £ |
Interest receivable | 1,406 | 170 |
31.1.23 | 31.1.22 |
£ | £ |
Amount due from related party |
Amount due to related party |
Key management remuneration is the same as directors' remuneration. |
25. | ULTIMATE CONTROLLING PARTY |
The controlling party is J L A Evans. |