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REGISTERED NUMBER: 00618332 (England and Wales)













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: K Maxwell
I Maxwell
N Maxwell
A Maxwell
F Maxwell



SECRETARY: N Maxwell



REGISTERED OFFICE: Unit 4
Durham Road Trading Estate
Birtley
Chester-le-Street
County Durham
DH3 2BQ



REGISTERED NUMBER: 00618332 (England and Wales)



AUDITORS: TTR Barnes
Chartered Accountants
and Registered Auditor
3-5 Grange Terrace
Stockton Road
Sunderland
Tyne & Wear
SR2 7DG



BANKERS: National Westminster Bank Plc
52 Fawcett Street
Sunderland
Tyne and Wear
SR1 1SB



SOLICITORS: Peter Dunn & Co.
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:





N Maxwell - Director


4 October 2023

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.

K Maxwell
I Maxwell
N Maxwell
A Maxwell
F Maxwell

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:





N Maxwell - Director


4 October 2023

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.




Allan Russell FCA (Senior Statutory Auditor)
for and on behalf of TTR Barnes
Chartered Accountants
and Registered Auditor
3-5 Grange Terrace
Stockton Road
Sunderland
Tyne & Wear
SR2 7DG

5 October 2023

Maxwells (Sunderland) Limited (Registered number: 00618332)

Statement of Comprehensive
Income
for the year ended 31 January 2023

2023 2022
Notes £    £   

TURNOVER 3 6,217,471 7,417,330

Cost of sales 3,314,018 4,041,278
GROSS PROFIT 2,903,453 3,376,052

Administrative expenses 2,891,147 3,269,845
12,306 106,207

Other operating income 6,300 14,558
OPERATING PROFIT 5 18,606 120,765

Interest receivable and similar income 2,279 142
PROFIT BEFORE TAXATION 20,885 120,907

Tax on profit 6 (13,498 ) 18,972
PROFIT FOR THE FINANCIAL YEAR 34,383 101,935

OTHER COMPREHENSIVE INCOME
Deferred tax adjustment on revaluation 67,596 -
Income tax relating to other comprehensive
income

-

-
OTHER COMPREHENSIVE INCOME
FOR THE YEAR, NET OF INCOME TAX

67,596

-
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

101,979

101,935

Maxwells (Sunderland) Limited (Registered number: 00618332)

Statement of Financial Position
31 January 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 8 - -
Tangible assets 9 3,508,729 3,640,785
Investments 10 2,550 2,550
3,511,279 3,643,335

CURRENT ASSETS
Stocks 11 1,475,743 1,565,472
Debtors 12 79,388 63,301
Cash at bank and in hand 509,481 554,334
2,064,612 2,183,107
CREDITORS
Amounts falling due within one year 13 1,025,920 1,269,142
NET CURRENT ASSETS 1,038,692 913,965
TOTAL ASSETS LESS CURRENT
LIABILITIES

4,549,971

4,557,300

PROVISIONS FOR LIABILITIES 16 74,438 183,746
NET ASSETS 4,475,533 4,373,554

CAPITAL AND RESERVES
Called up share capital 17 6,350 6,350
Revaluation reserve 18 649,932 715,343
Retained earnings 18 3,819,251 3,651,861
SHAREHOLDERS' FUNDS 4,475,533 4,373,554

The financial statements were approved by the Board of Directors and authorised for issue on 4 October 2023 and were signed on its behalf by:





N Maxwell - Director


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 6,350 3,549,926 715,343 4,271,619

Changes in equity
Total comprehensive income - 101,935 - 101,935
Balance at 31 January 2022 6,350 3,651,861 715,343 4,373,554

Changes in equity
Total comprehensive income - 167,390 (65,411 ) 101,979
Balance at 31 January 2023 6,350 3,819,251 649,932 4,475,533

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 (140,255 ) (278,746 )
Tax paid (20,785 ) (20,309 )
Net cash from operating activities (161,040 ) (299,055 )

Cash flows from investing activities
Purchase of tangible fixed assets (10,896 ) (21,598 )
Sale of tangible fixed assets 102,177 -
Interest received 2,279 142
Net cash from investing activities 93,560 (21,456 )

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 (366 ) (141,385 )

Decrease in cash and cash equivalents (67,846 ) (461,896 )
Cash and cash equivalents at beginning of
year

2

554,334

1,016,230

Cash and cash equivalents at end of year 2 486,488 554,334

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 20,885 120,907
Depreciation charges 23,009 29,797
Profit on disposal of fixed assets (7,734 ) -
Finance income (2,279 ) (142 )
33,881 150,562
Decrease/(increase) in stocks 89,729 (218,036 )
Increase in trade and other debtors (16,087 ) (5,272 )
Decrease in trade and other creditors (247,778 ) (206,000 )
Cash generated from operations (140,255 ) (278,746 )

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 (22,993 ) -
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 - (82,801 )
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 (67,846 ) 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 private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

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
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Freehold property - not provided
Short leasehold - not provided
Improvements to property - not provided
Plant and machinery - 20% on reducing balance
Fixtures and fittings - 15% on reducing balance
Motor vehicles - 25% on reducing balance

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 6,217,471 7,417,330
6,217,471 7,417,330

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 2,059,477 2,391,305
Social security costs 169,254 217,891
Other pension costs 52,448 60,209
2,281,179 2,669,405

The average number of employees during the year was as follows:
2023 2022

Office and management 10 10
Administration 1 1
Operational 90 91
101 102

2023 2022
£    £   
Directors' remuneration 326,815 753,015
Directors' pension contributions to money purchase schemes 18,148 23,898

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 2 2

Information regarding the highest paid director is as follows:
2023 2022
£    £   
Emoluments etc 155,500 348,600

5. OPERATING PROFIT

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

2023 2022
£    £   
Hire of plant and machinery - 467
Depreciation - owned assets 23,009 29,797
Profit on disposal of fixed assets (7,734 ) -
Auditors' remuneration 20,350 26,754

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 2,714 20,785

Deferred tax (16,212 ) (1,813 )
Tax on profit (13,498 ) 18,972

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 20,885 120,907
Profit multiplied by the standard rate of corporation tax in the UK of 19%
(2022 - 19%)

3,968

22,972

Effects of:
Expenses not deductible for tax purposes 759 470
Capital allowances in excess of depreciation (2,013 ) (2,657 )
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 - 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 61,500
Disposals (7,500 )
At 31 January 2023 54,000
AMORTISATION
At 1 February 2022 61,500
Eliminated on disposal (7,500 )
At 31 January 2023 54,000
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 2,704,538 750,000 104,357
Additions - - -
Disposals (93,080 ) - (1,150 )
At 31 January 2023 2,611,458 750,000 103,207
DEPRECIATION
At 1 February 2022 2,533 - 70,790
Charge for year - - -
Eliminated on disposal (431 ) - (1,150 )
At 31 January 2023 2,102 - 69,640
NET BOOK VALUE
At 31 January 2023 2,609,356 750,000 33,567
At 31 January 2022 2,702,005 750,000 33,567

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 148,155 621,222 122,608 4,450,880
Additions 6,592 4,304 - 10,896
Disposals (94,238 ) (512,120 ) (40,334 ) (740,922 )
At 31 January 2023 60,509 113,406 82,274 3,720,854
DEPRECIATION
At 1 February 2022 126,877 525,820 84,075 810,095
Charge for year 4,530 11,400 7,079 23,009
Eliminated on disposal (93,095 ) (488,827 ) (37,476 ) (620,979 )
At 31 January 2023 38,312 48,393 53,678 212,125
NET BOOK VALUE
At 31 January 2023 22,197 65,013 28,596 3,508,729
At 31 January 2022 21,278 95,402 38,533 3,640,785

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 1,475,743 1,565,472

12. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade debtors 5,567 7,044
J D Maxwell Settlement account 34,550 34,550
Maxwells Retirement Benefit
Scheme 1,195 1,195
Prepayments and accrued income 38,076 20,512
79,388 63,301

13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Bank loans and overdrafts (see note 14) 22,993 -
Trade creditors 258,144 286,530
Tax 2,714 20,785
Social security and other taxes 283,147 555,234
Other creditors 62,494 43,543
Directors' current accounts 316,959 317,325
Accrued expenses 79,469 45,725
1,025,920 1,269,142

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 22,993 -

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 183,746
Accelerated capital allowances (109,308 )
Balance at 31 January 2023 74,438

17. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
4,650 A £1 4,650 4,650
34,000 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 3,651,861 715,343 4,367,204
Profit for the year 34,383 34,383
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 3,819,251 649,932 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 £ 552,370 (2022 - £ 878,111 ) was paid.

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.