REGISTERED NUMBER: |
Strategic Report, Report of the Directors and |
Financial Statements |
for the Year Ended 31 January 2023 |
for |
Maxwells (Sunderland) Limited |
REGISTERED NUMBER: |
Strategic Report, Report of the Directors and |
Financial Statements |
for the Year Ended 31 January 2023 |
for |
Maxwells (Sunderland) Limited |
Maxwells (Sunderland) Limited (Registered number: 00618332) |
Contents of the Financial Statements |
for the year ended 31 January 2023 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 6 |
Statement of Comprehensive Income | 10 |
Statement of Financial Position | 11 |
Statement of Changes in Equity | 12 |
Statement of Cash Flows | 13 |
Notes to the Statement of Cash Flows | 14 |
Notes to the Financial Statements | 15 |
Maxwells (Sunderland) Limited |
Company Information |
for the year ended 31 January 2023 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants |
and Registered Auditor |
3-5 Grange Terrace |
Stockton Road |
Sunderland |
Tyne & Wear |
SR2 7DG |
BANKERS: |
52 Fawcett Street |
Sunderland |
Tyne and Wear |
SR1 1SB |
SOLICITORS: |
20 Athenaeum Street |
Sunderland |
Tyne and Wear |
SR1 1DH |
Maxwells (Sunderland) Limited (Registered number: 00618332) |
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 |
The company offer a range of hardware and do-it-yourself goods to both trade and domestic customers. |
A key financial performance indicator used by the directors is the gross profit percentage generated. The directors are pleased that the effects on the supply chain and price increases have not impacted greatly on the company's profitability. |
The results for the year noted below show a 1.18% increase in gross profit percentage which supports the successful strategies implemented by the directors during such a difficult year. |
Key financial results are as follows :- |
2023 | 2022 | 2021 | 2020 | 2019 |
£ | £ | £ | £ | £ |
Sales | 6,217,471 | 7,417,330 | 7,212,416 | 6,848,370 | 7,334,323 |
Cost of Sales | 3,314,018 | 4,041,278 | 3,910,436 | 3,619,087 | 3,336,634 |
Gross Profit % | 46.70% | 45.52% | 45.78% | 47.15% | 45.49% |
Liquidity Ratio | 201.24% | 172.01% | 147.37% | 167.50% | 164.41% |
Trading Ratio | 44.53% | 38.74% | 34.46% | 40.14% | 37.51% |
Gearing Ratio | 0.41% | 0.00% | 1.34% | 6.41% | 10.71% |
The directors continue to review the company's cashflow and maintain strong controls over expenditure and use of resources, reducing costs wherever possible, particularly during the current economic crisis. |
The company retains a strong hold in the local market as at 31 January 2023 and the directors intend to continually drive the company forward as a leading DIY merchant in the North East of England and anticipate for that to remain in the future.. |
Maxwells (Sunderland) Limited (Registered number: 00618332) |
Strategic Report |
for the year ended 31 January 2023 |
PRINCIPAL RISKS AND UNCERTAINTIES |
The directors are of the opinion that the principle risks and uncertainties which face the company are those associated with trading within the current economic environment. |
The directors continually monitor results and review market demand so that they may act accordingly and manage resources as well as risk. |
The risks and uncertainties have been monitored by the directors during the year and performance would appear reasonable. |
FINANCIAL RISK MANAGEMENT |
The company's operations may expose it to a variety of financial risks that include the effects of changes in prices, credit risk and liquidity risk. The company seeks to limit the adverse effect on the financial performance of the company as follows : |
Price risk |
The directors monitor movements in market prices on a regular basis. The company's exposure to equity securities price risk is also closely monitored and the investments are actively managed to avoid any significant risk of losses. |
Credit risk |
The company is mainly cash based and therefore the risk from credit is very low. If credit were to be provided, credit check policies are in place . |
Liquidity risk |
The company actively maintains sufficient liquid working capital balances to fund its operations and is, therefore, not subject to significant liquidity risk. |
Interest rate risk |
The company holds interest bearing assets and liabilities. Cash balances earn interest at variable rates and the directors consider interest rate risk on cash balances to be minimal. |
ON BEHALF OF THE BOARD: |
Maxwells (Sunderland) Limited (Registered number: 00618332) |
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 hardware dealers and Do-It-Yourself merchants. |
DIVIDENDS |
The total distribution of dividends for the year ended 31 January 2023 will be nil (2022: nil). |
FUTURE DEVELOPMENTS |
The directors intend to strive to succeed in the year ahead which may again involve trading within a difficult economic environment. |
Results for 2023 are positive and reflect the strong structure within the company. The directors anticipate the business environment will remain competitive. They believe that the company is in a good financial position and the risks that have been identified have been managed. With careful focus and efficient use of resources, as well as continuing review of the market, the directors are confident in the company's ability to maintain and build on this position, albeit with cautious growth expectations. |
EVENTS SINCE THE END OF THE YEAR |
Information relating to events since the end of the year is given in the notes to the financial statements. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 February 2022 to the date of this report. |
DISCLOSURE IN THE STRATEGIC REPORT |
The directors have chosen to prepare a Strategic Report which includes a review of the business and the financial risk management. |
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), 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 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. |
Maxwells (Sunderland) Limited (Registered number: 00618332) |
Report of the Directors |
for the year ended 31 January 2023 |
STATEMENT OF DIRECTORS' RESPONSIBILITIES - continued |
Directors are also responsible for stating whether the applicable accounting standards have been followed, subject to any material departure's disclosed and explained in the financial statements. |
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 |
Maxwells (Sunderland) Limited |
Opinion |
We have audited the financial statements of Maxwells (Sunderland) Limited (the 'company') for the year ended 31 January 2023 which comprise the Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and Notes to the Statement of Cash Flows, 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. |
Report of the Independent Auditors to the Members of |
Maxwells (Sunderland) Limited |
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. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on pages four and five, 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. |
Report of the Independent Auditors to the Members of |
Maxwells (Sunderland) Limited |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
- the 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 directors and other |
management, and from our commercial knowledge and experience of the do-it-yourself sector; |
- we focused on specific laws and regulations which we considered may have a direct material effect on the |
financial statements or the operations of the company, including the Companies Act 2006, taxation legislation and |
data protection, anti-bribery, employment, environmental (including Waste Electrical and Electronic Equipment |
recycling (WEEE) Regulations 2013) and health and safety legislation; |
- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of |
management and inspecting legal correspondence; |
- and 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 assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: |
- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of |
actual, suspected and alleged fraud; and |
- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. |
To address the risk of fraud through management bias and override of controls, we: |
- performed analytical procedures to identify any unusual or unexpected relationships; |
- tested journal entries to identify unusual transactions; |
- assessed whether judgements and assumptions made in determining the accounting estimates were indicative of |
potential bias; and |
- investigated the rationale behind significant or unusual transactions. |
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: |
- agreeing financial statement disclosures to underlying supporting documentation; |
- reading the minutes of meetings of those charged with governance; |
- enquiring of management as to actual and potential litigation and claims; and |
- reviewing correspondence with HMRC, relevant regulators including the Health and Safety Executive, and the |
company's legal advisors. |
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. |
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. |
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 |
Maxwells (Sunderland) 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 |
Chartered Accountants |
and Registered Auditor |
3-5 Grange Terrace |
Stockton Road |
Sunderland |
Tyne & Wear |
SR2 7DG |
Maxwells (Sunderland) Limited (Registered number: 00618332) |
Statement of Comprehensive |
Income |
for the year ended 31 January 2023 |
2023 | 2022 |
Notes | £ | £ |
TURNOVER | 3 |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
12,306 | 106,207 |
Other operating income |
OPERATING PROFIT | 5 |
Interest receivable and similar income |
PROFIT BEFORE TAXATION |
Tax on profit | 6 | ( |
) |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME |
Deferred tax adjustment on revaluation |
Income tax relating to other comprehensive income |
OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
Maxwells (Sunderland) Limited (Registered number: 00618332) |
Statement of Financial Position |
31 January 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 8 |
Tangible assets | 9 |
Investments | 10 |
CURRENT ASSETS |
Stocks | 11 |
Debtors | 12 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 13 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
PROVISIONS FOR LIABILITIES | 16 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 17 |
Revaluation reserve | 18 |
Retained earnings | 18 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
Maxwells (Sunderland) Limited (Registered number: 00618332) |
Statement of Changes in Equity |
for the year ended 31 January 2023 |
Called up |
share | Retained | Revaluation | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1 February 2021 |
Changes in equity |
Total comprehensive income | - |
Balance at 31 January 2022 |
Changes in equity |
Total comprehensive income | - | ( |
) |
Balance at 31 January 2023 |
Maxwells (Sunderland) Limited (Registered number: 00618332) |
Statement of Cash Flows |
for the year ended 31 January 2023 |
2023 | 2022 |
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 |
Amount introduced by directors | 431,428 | 348,323 |
Amount withdrawn by directors | (431,794 | ) | (489,708 | ) |
Net cash from financing activities | ( |
) | ( |
) |
Decrease in cash and cash equivalents | ( |
) | ( |
) |
Cash and cash equivalents at beginning of year |
2 |
1,016,230 |
Cash and cash equivalents at end of year | 2 | 554,334 |
Maxwells (Sunderland) Limited (Registered number: 00618332) |
Notes to the Statement of Cash Flows |
for the year ended 31 January 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2023 | 2022 |
£ | £ |
Profit before taxation |
Depreciation charges |
Profit on disposal of fixed assets | ( |
) |
Finance income | (2,279 | ) | (142 | ) |
33,881 | 150,562 |
Decrease/(increase) in stocks | ( |
) |
Increase 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 Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts: |
Year ended 31 January 2023 |
31/1/23 | 1/2/22 |
£ | £ |
Cash and cash equivalents | 509,481 | 554,334 |
Bank overdrafts | ( |
) |
486,488 | 554,334 |
Year ended 31 January 2022 |
31/1/22 | 1/2/21 |
£ | £ |
Cash and cash equivalents | 554,334 | 1,099,031 |
Bank overdrafts | ( |
) |
554,334 | 1,016,230 |
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 | 554,334 | (44,853 | ) | 509,481 |
Bank overdrafts | - | (22,993 | ) | (22,993 | ) |
554,334 | ( |
) | 486,488 |
Total | 554,334 | (67,846 | ) | 486,488 |
Maxwells (Sunderland) Limited (Registered number: 00618332) |
Notes to the Financial Statements |
for the year ended 31 January 2023 |
1. | STATUTORY INFORMATION |
Maxwells (Sunderland) Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The financial statements have been prepared on a going concern basis which assumes that the company will continue in operational existence for the foreseeable future, which the directors consider appropriate. |
Significant judgements and estimates |
The following estimates have been made in the process of applying the above accounting policies, these are the estimates that have the most significant effect on the financial statements: |
Depreciation - depreciation is calculated so as to write off the cost of an asset, less its residual value, over the useful economic life of that asset. An estimate of the useful economic life of assets is detailed in the depreciation accounting policy. The depreciation charge for the year is £23,009. |
The following judgements have been made in the process of applying the above accounting policies, these are the judgements that have the most significant effect on the financial statements |
Valuation of Stock - stock is held at the lower of cost and net realisable value, a judgement has been made to establish if there should be a provision for stock items that have reduced in value. |
Turnover and income recognition |
Turnover represents the amount derived from the provision of goods and services falling within the company's activities after deduction of trade discounts and value added tax. |
Income is recognised upon delivery of goods to customer, usually at the point of sale. |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
Tangible fixed assets |
Freehold property | - |
Short leasehold | - |
Improvements to property | - |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
No depreciation was charged during the year on development land included in improvements to property as land is expected to appreciate overtime. |
Tangible fixed assets are all measured at cost less any accumulated depreciation and impairments. |
Stocks |
Stocks are valued at the lower of cost and net realisable value. Cost is computed on a first in first out basis. Net realisable value is based on estimated selling price less the estimated cost of disposal. |
Maxwells (Sunderland) Limited (Registered number: 00618332) |
Notes to the Financial Statements - continued |
for the year ended 31 January 2023 |
2. | ACCOUNTING POLICIES - continued |
Financial instruments |
The company only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are recognised at transaction value and subsequently measured at their settlement value. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, 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 statement of financial position date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position 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 contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
Revaluation of freehold and short leasehold property |
As described in note 9, the freehold and short leasehold property are stated at fair value based on the valuation performed by an independent valuer Lofthouse and Partners with experience in the location and the category of property valued.The valuer used observable market prices adjusted as necessary for any difference in the future, location and condition of the specific asset. |
3. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the company. |
An analysis of turnover by geographical market is given below: |
2023 | 2022 |
£ | £ |
United Kingdom |
Maxwells (Sunderland) Limited (Registered number: 00618332) |
Notes to the Financial Statements - continued |
for the year ended 31 January 2023 |
4. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
2023 | 2022 |
Office and management | 10 | 10 |
Administration | 1 | 1 |
Operational | 90 | 91 |
2023 | 2022 |
£ | £ |
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 |
Information regarding the highest paid director is as follows: |
2023 | 2022 |
£ | £ |
Emoluments etc |
5. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2023 | 2022 |
£ | £ |
Hire of plant and machinery |
Depreciation - owned assets |
Profit on disposal of fixed assets | ( |
) |
Auditors' remuneration |
Maxwells (Sunderland) Limited (Registered number: 00618332) |
Notes to the Financial Statements - continued |
for the year ended 31 January 2023 |
6. | TAXATION |
Analysis of the tax (credit)/charge |
The tax (credit)/charge on the profit for the year was as follows: |
2023 | 2022 |
£ | £ |
Current tax: |
UK corporation tax |
Deferred tax | ( |
) | ( |
) |
Tax on profit | ( |
) |
UK corporation tax has been charged at 19% . |
Reconciliation of total tax (credit)/charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
2023 | 2022 |
£ | £ |
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 |
Capital allowances in excess of depreciation | ( |
) | ( |
) |
Deferred tax | (16,212 | ) | (1,813 | ) |
Total tax (credit)/charge | (13,498 | ) | 18,972 |
Tax effects relating to effects of other comprehensive income |
2023 |
Gross | Tax | Net |
£ | £ | £ |
Deferred tax adjustment on revaluation | - | 67,596 |
7. | GOVERNMENT GRANTS |
2023 | 2022 |
£ | £ |
Job retention scheme grants | - | 10,101 |
Maxwells (Sunderland) Limited (Registered number: 00618332) |
Notes to the Financial Statements - continued |
for the year ended 31 January 2023 |
8. | INTANGIBLE FIXED ASSETS |
Goodwill |
£ |
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 |
9. | TANGIBLE FIXED ASSETS |
Improvements |
Freehold | Short | to |
property | leasehold | property |
£ | £ | £ |
COST OR VALUATION |
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 |
Maxwells (Sunderland) Limited (Registered number: 00618332) |
Notes to the Financial Statements - continued |
for the year ended 31 January 2023 |
9. | TANGIBLE FIXED ASSETS - continued |
Fixtures |
Plant and | and | Motor |
machinery | fittings | vehicles | Totals |
£ | £ | £ | £ |
COST OR VALUATION |
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 |
Cost or valuation at 31 January 2023 is represented by: |
Improvements |
Freehold | Short | to |
property | leasehold | property |
£ | £ | £ |
Valuation in 2017 | 42,966 | 277,924 | - |
Cost | 2,568,492 | 472,076 | 103,207 |
2,611,458 | 750,000 | 103,207 |
Fixtures |
Plant and | and | Motor |
machinery | fittings | vehicles | Totals |
£ | £ | £ | £ |
Valuation in 2017 | - | - | - | 320,890 |
Cost | 60,509 | 113,406 | 82,274 | 3,399,964 |
60,509 | 113,406 | 82,274 | 3,720,854 |
If freehold and short leasehold had not been revalued they would have been included at the following historical cost: |
2023 | 2022 |
£ | £ |
Cost | 3,040,568 | 3,118,648 |
Aggregate depreciation | 73,060 | 73,060 |
Freehold Property were valued on an open market basis on 18 October 2016 by Lofthouse and Partners . |
Maxwells (Sunderland) Limited (Registered number: 00618332) |
Notes to the Financial Statements - continued |
for the year ended 31 January 2023 |
10. | FIXED ASSET INVESTMENTS |
Investments (neither listed nor unlisted) were as follows: |
2023 | 2022 |
£ | £ |
Other investments | 2,550 | 2,550 |
11. | STOCKS |
2023 | 2022 |
£ | £ |
Stocks |
12. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Trade debtors |
J D Maxwell Settlement account |
Maxwells Retirement Benefit |
Scheme | 1,195 | 1,195 |
Prepayments and accrued income |
13. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Bank loans and overdrafts (see note 14) |
Trade creditors |
Tax |
Social security and other taxes |
Other creditors |
Directors' current accounts |
Accrued expenses |
14. | LOANS |
An analysis of the maturity of loans is given below: |
2023 | 2022 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank overdrafts |
15. | SECURED DEBTS |
There are two legal charges held over the property at Unit 4, Durham Road, Birtley and Shotton Road, South West Industrial Estate, Peterlee. |
Maxwells (Sunderland) Limited (Registered number: 00618332) |
Notes to the Financial Statements - continued |
for the year ended 31 January 2023 |
16. | PROVISIONS FOR LIABILITIES |
2023 | 2022 |
£ | £ |
Deferred tax provision | 74,438 | 183,746 |
Deferred |
tax |
£ |
Balance at 1 February 2022 |
Accelerated capital allowances | ( |
) |
Balance at 31 January 2023 |
17. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
A | £1 | 4,650 | 4,650 |
B | 5p | 1,700 | 1,700 |
6,350 | 6,350 |
Called up share capital represents the nominal value of shares that have been issued. All shares issued carry full voting and dividend rights. |
18. | RESERVES |
Retained | Revaluation |
earnings | reserve | Totals |
£ | £ | £ |
At 1 February 2022 | 4,367,204 |
Profit for the year |
Revaluation in period | - | (25,500 | ) | (25,500 | ) |
Movement in deferred tax | - | 93,096 | 93,096 |
Reserve transfer | 133,007 | (133,007 | ) | - |
At 31 January 2023 | 4,469,183 |
Retained earnings include all current and prior period profits and losses less any distributions made. |
Revaluation reserve includes all current and prior period gains and losses on revaluation of the property including any associated deferred tax. |
19. | PENSION COMMITMENTS |
Defined Contribution Scheme |
The company operates two defined contribution pension schemes. The assets of the schemes are held separately from those of the company in independently administered funds. The pension cost charges represent contributions payable to the funds and amounted to £34,300 (2022 - £36,311) for staff and £23,898 (2022 - £18,239) for directors. |
Maxwells (Sunderland) Limited (Registered number: 00618332) |
Notes to the Financial Statements - continued |
for the year ended 31 January 2023 |
20. | RELATED PARTY DISCLOSURES |
During the year, a total of key management personnel compensation of £ |
21. | AUDITOR LIABILITY LIMITATION AGREEMENT |
The limitation of liability in respect of this audit is 10 times the audit fee which was agreed in our terms of engagement letter dated 1 February 2022. |
22. | POST BALANCE SHEET EVENTS |
Post the balance sheet date but before the approval of the accounts one store has been permanently closed. The cost of which at this stage cannot be reliably measured. |
23. | CONTROLLING PARTY |
The company was under the control of the directors. |