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REGISTERED NUMBER: 01209354 (England and Wales)















STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2023

FOR

GROCOLA PLC

GROCOLA PLC (REGISTERED NUMBER: 01209354)






CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023




Page

Company Information 1

Strategic Report 2

Report of the Directors 3

Report of the Independent Auditors 5

Profit and Loss Account 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


GROCOLA PLC

COMPANY INFORMATION
FOR THE YEAR ENDED 31 JULY 2023







DIRECTORS: J E Davies
M D Symons


SECRETARY: J E Davies


REGISTERED OFFICE: Jackson House
Station Road
Chingford
London
E4 7BU


REGISTERED NUMBER: 01209354 (England and Wales)


SENIOR STATUTORY AUDITOR: T P Curtis


INDEPENDENT AUDITORS: Barrow LLP
Statutory Auditor
Chartered Accountants
Jackson House
Station Road
Chingford
London
E4 7BU


SOLICITORS: E D C Lord & Co
Link House
1200 Uxbridge Road
Hayes
UB4 8JD

GROCOLA PLC (REGISTERED NUMBER: 01209354)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 JULY 2023

The directors present their strategic report for the year ended 31 July 2023.

REVIEW OF BUSINESS
The profit for the year, before taxation was £1,810,885 (2022: £1,427,012). The directors consider these results to be satisfactory.

Given the straightforward nature of the business and day to day involvement of the principal shareholder in its management, the company's directors are of the opinion that analysis using key performance indicators is not necessary for an understanding of the development, performance or position of the business. Management accounts are produced every six months, and results reviewed against the previous periods accounts to ensure the performance meets the director's expectations.

PRINCIPAL RISKS AND UNCERTAINTIES
The principal risk to the business is that the investment made by the company does not meet the required rate of return on that investment and becomes impaired. The company carries out study, research and evaluates each project carefully and extensively before making any investment. The company will also closely monitor the performance of the investment.

The company's financial instruments comprise cash, bank overdrafts and loans and other items such as trade debtors arising directly from operations. The main objective of the company's policy towards it's financial instruments is to maximise returns on cash balances, manage working capital requirements, maintain an excellent relationship with the company's bankers and finance on going operations.

The director's policy is to maintain a strong capital base to underpin the future development of the business. Operations are financed through bank borrowings and management of working capital.

There is a market risk attributable to the price of both commercial and residential property which arises due to fluctuations in the market prices which is generally linked to the economy.

The bank loans are not affected by movements in interest rates, as the interest rate is fixed for the duration of the terms. This ensures interest risk is mitigated.

MARKET VALUE OF PROPERTY
In the opinion of the director's, the market value of land and buildings held at the balance sheet date is not significantly different to the current net book value.

FINANCIAL KEY PERFORMANCE INDICATORS
The directors consider that the company's key performance indicators are its investments and return on those investments. The investment properties increased to £33,306,188 from £32,509,827 and return on these investments achieved to £1,899,238 from £1,801,742.

ON BEHALF OF THE BOARD:





M D Symons - Director


14 November 2023

GROCOLA PLC (REGISTERED NUMBER: 01209354)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 JULY 2023

The directors present their report with the financial statements of the company for the year ended 31 July 2023.

PRINCIPAL ACTIVITIES
The principal activities of the company in the year under review were those of property trading and investment.

DIVIDENDS
An interim dividend of 2.50 per share was paid on 31 March 2023. The directors recommend that no final dividend be paid.

The total distribution of dividends for the year ended 31 July 2023 will be £ 150,000 .

FUTURE DEVELOPMENTS
The directors continue to work on maximising the shareholders wealth and evaluating the investment proposals in order to make the strategic investments that will maximise the overall value of the portfolio.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 August 2022 to the date of this report.

J E Davies
M D Symons

STATUTORY INFORMATION
Some of the information required to be disclosed under the Director's report are set out in the Strategic report in accordance with S.414C (11) CA 2006.

SUPPLIER PAYMENT POLICY
The company understands the benefits to be derived from maintaining good relationships with its suppliers and accordingly seeks to abide with the payment terms agreed with suppliers wherever it is satisfied that the supplier has provided goods or services in accordance with the agreed terms and conditions.

DIRECTORS' RESPONSIBILITIES STATEMENT
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;
-state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in
the financial statements;
-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the 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.

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 ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

GROCOLA PLC (REGISTERED NUMBER: 01209354)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 JULY 2023


AUDITORS
The auditors, Barrow LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





M D Symons - Director


14 November 2023

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
GROCOLA PLC

Opinion
We have audited the financial statements of Grocola Plc (the 'company') for the year ended 31 July 2023 which comprise the Profit and Loss Account, 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 July 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
GROCOLA PLC


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 Directors' Responsibilities Statement 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:

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. 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. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We have addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the Members that presented a risk of material misstatement due to fraud.

We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates, and considered the risk of acts by the company which were contrary to applicable laws and regulations, including fraud. These included but were not limited to compliance with Companies Act 2006, the accounting standards, the Financial Conduct Authority's and tax regulations.

We focused on laws and regulations that could give rise to material misstatement in the financial statements. Our tests included, but were not limited to:

- Agreement of the financial statement disclosures to underlying supporting documentation;
- Enquiries of management, the company directors, and those responsible for legal and compliance procedures.; and
- Review of the minutes of board meetings throughout the period.

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
GROCOLA PLC


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.




T P Curtis (Senior Statutory Auditor)
for and on behalf of Barrow LLP
Statutory Auditor
Chartered Accountants
Jackson House
Station Road
Chingford
London
E4 7BU

14 November 2023

GROCOLA PLC (REGISTERED NUMBER: 01209354)

PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 JULY 2023

31.7.23 31.7.22
Notes £    £   

TURNOVER 4 1,899,238 1,801,742

Administrative expenses (530,954 ) (606,640 )
1,368,284 1,195,102

Other operating income 5 - 10,025
OPERATING PROFIT 7 1,368,284 1,205,127

Interest receivable and similar income 3,267 60
1,371,551 1,205,187
Gain on revaluation
of investment properties 681,810 376,295
2,053,361 1,581,482

Interest payable and similar expenses 8 (242,476 ) (154,470 )
PROFIT BEFORE TAXATION 1,810,885 1,427,012

Tax on profit 9 (700,690 ) (267,471 )
PROFIT FOR THE FINANCIAL YEAR 1,110,195 1,159,541

GROCOLA PLC (REGISTERED NUMBER: 01209354)

OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 JULY 2023

31.7.23 31.7.22
Notes £    £   

PROFIT FOR THE YEAR 1,110,195 1,159,541


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR THE
YEAR

1,110,195

1,159,541

GROCOLA PLC (REGISTERED NUMBER: 01209354)

BALANCE SHEET
31 JULY 2023

31.7.23 31.7.22
Notes £    £   
FIXED ASSETS
Tangible assets 11 3,336 4,131
Investment property 12 33,306,188 32,509,827
33,309,524 32,513,958

CURRENT ASSETS
Stocks 13 182,938 182,938
Debtors 14 399,066 381,300
Cash at bank and in hand 1,418,904 1,045,469
2,000,908 1,609,707
CREDITORS
Amounts falling due within one year 15 (1,365,572 ) (1,220,362 )
NET CURRENT ASSETS 635,336 389,345
TOTAL ASSETS LESS CURRENT LIABILITIES 33,944,860 32,903,303

CREDITORS
Amounts falling due after more than one year 16 (3,701,174 ) (4,083,167 )

PROVISIONS FOR LIABILITIES 19 (3,567,609 ) (3,104,254 )
NET ASSETS 26,676,077 25,715,882

CAPITAL AND RESERVES
Called up share capital 20 60,000 60,000
Non-distributable reserve 21 20,069,937 19,854,566
Retained earnings 21 6,546,140 5,801,316
SHAREHOLDERS' FUNDS 26,676,077 25,715,882

The financial statements were approved by the Board of Directors and authorised for issue on 14 November 2023 and were signed on its behalf by:




M D Symons - Director



J E Davies - Director


GROCOLA PLC (REGISTERED NUMBER: 01209354)

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JULY 2023

Called up
share Retained Non-distributable Total
capital earnings reserve equity
£    £    £    £   
Balance at 1 August 2021 60,000 5,110,231 19,536,110 24,706,341

Changes in equity
Dividends - (150,000 ) - (150,000 )
Total comprehensive income - 841,085 318,456 1,159,541
Balance at 31 July 2022 60,000 5,801,316 19,854,566 25,715,882

Changes in equity
Dividends - (150,000 ) - (150,000 )
Total comprehensive income - 894,824 215,371 1,110,195
Balance at 31 July 2023 60,000 6,546,140 20,069,937 26,676,077

GROCOLA PLC (REGISTERED NUMBER: 01209354)

CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 JULY 2023

31.7.23 31.7.22
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 1,425,595 941,077
Interest paid (242,476 ) (154,470 )
Government grants - 9,217
Tax paid (199,687 ) (113,243 )
Net cash from operating activities 983,432 682,581

Cash flows from investing activities
Purchase of investment property (114,551 ) (198,973 )
Interest received 3,267 60
Net cash from investing activities (111,284 ) (198,913 )

Cash flows from financing activities
Loan repayments in year (467,017 ) (539,096 )
Amount introduced by directors 150,000 174,212
Amount withdrawn by directors (31,696 ) (48,424 )
Equity dividends paid (150,000 ) (150,000 )
Net cash from financing activities (498,713 ) (563,308 )

Increase/(decrease) in cash and cash equivalents 373,435 (79,640 )
Cash and cash equivalents at beginning of
year

2

1,045,469

1,125,109

Cash and cash equivalents at end of year 2 1,418,904 1,045,469

GROCOLA PLC (REGISTERED NUMBER: 01209354)

NOTES TO THE CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 JULY 2023

1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS
31.7.23 31.7.22
£    £   
Profit before taxation 1,810,885 1,427,012
Depreciation charges 796 1,210
Gain on revaluation of fixed assets (681,810 ) (376,295 )
Government grants - (9,217 )
Finance costs 242,476 154,470
Finance income (3,267 ) (60 )
1,369,080 1,197,120
(Increase)/decrease in trade and other debtors (17,766 ) 9,656
Increase/(decrease) in trade and other creditors 74,281 (265,699 )
Cash generated from operations 1,425,595 941,077

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 July 2023
31.7.23 1.8.22
£    £   
Cash and cash equivalents 1,418,904 1,045,469
Year ended 31 July 2022
31.7.22 1.8.21
£    £   
Cash and cash equivalents 1,045,469 1,125,109


3. ANALYSIS OF CHANGES IN NET DEBT

At 1.8.22 Cash flow At 31.7.23
£    £    £   
Net cash
Cash at bank and in hand 1,045,469 373,435 1,418,904
1,045,469 373,435 1,418,904
Debt
Debts falling due within 1 year (476,496 ) - (476,496 )
Debts falling due after 1 year (3,534,492 ) 467,016 (3,067,476 )
(4,010,988 ) 467,016 (3,543,972 )
Total (2,965,519 ) 840,451 (2,125,068 )

GROCOLA PLC (REGISTERED NUMBER: 01209354)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023

1. STATUTORY INFORMATION

Grocola Plc is an unquoted public company, registered in England & Wales. The company's registered number and registered office address can be found on the Company Information page.

Grocola Plc's principal place of business is Highwood Fortune Lane, Elstree, Herts, WD6 3RY.

The presentation currency of the financial statements is the Pound Sterling (£).

2. STATEMENT OF COMPLIANCE

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.

3. ACCOUNTING POLICIES

Basis of preparing the financial statements
The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

Turnover
Turnover, which excludes value added tax, represents rental income which is recognised evenly over the term of each lease to which it relates.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Fixtures and fittings - 15% on reducing balance
Computer equipment - 25% on cost

Investment property
Investment properties are properties held to earn rentals and/or for capital appreciation. Investment properties are initially measured at cost, including transaction costs. Subsequently investment properties whose fair value can be measured reliably without undue cost or effort on an on-going basis are measured at fair value. Gains and losses arising from changes in the fair value of investment properties are included in profit or loss in the period in which they arise.

Stocks
Property held for resale is valued at the lower of cost and net realisable value.

Financial instruments
A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instruments.

Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes, in effect, a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Debt instruments are subsequently measured at amortised cost.

Other financial instruments are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately.

Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.


GROCOLA PLC (REGISTERED NUMBER: 01209354)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JULY 2023

3. ACCOUNTING POLICIES - continued
Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Profit and Loss Account, 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.

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.

Judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. These estimates and assumptions are based on historical experience and other factors that are believed to be reasonable under the circumstances. The following are the Company's key sources of estimation uncertainty and judgements made by the management in preparing these financial statements.

Allowance for doubtful debts
Management undertakes a review of all new customers and a periodic review of existing customers to determine whether specific risks of default exist. Beyond identification of specific risks, management undertakes periodic reviews into the calculation of allowances for doubtful debts to ensure historic trends continue to provide a basis for determining a reliable estimate for doubtful debts.

Determining residual values and useful economic lives of plant and equipment
The Company depreciates tangible assets over their estimated useful lives. The estimation of the useful lives of the asset is based on historic performance as well as expectations of future use and therefore requires estimates and assumptions to be applied by management. The actual lives of these assets can vary depending on a variety of factors, including technological innovation, product life cycles and maintenance programmes. Judgement is applied by management when determining the residual values for plant, machinery and equipment. When determining the residual value management aim to assess the amount that the company would currently obtain for the disposal of the asset, if it were already of the condition expected at the end of its useful economic life.

Fair value measurement
Management uses valuation techniques to determine the fair value of investment properties £33,306,188 (2022: £32,509,827). This involves developing estimates and assumptions consistent with how market participants would price the investment property. Management bases its assumptions on observable data as far as possible but this is not always available. In that case management uses the best information available. Estimated fair values may vary from the actual prices. Fair value measurements were applied to all classes of the properties within the investment portfolio.

GROCOLA PLC (REGISTERED NUMBER: 01209354)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JULY 2023

4. TURNOVER

The turnover and profit before taxation are attributable to the principal activities of the company.

An analysis of turnover by geographical market is given below:

31.7.23 31.7.22
£    £   
United Kingdom 1,899,238 1,801,742
1,899,238 1,801,742

5. OTHER OPERATING INCOME
31.7.23 31.7.22
£    £   
Sundry receipts - 808
Government grants - 9,217
- 10,025

6. EMPLOYEES AND DIRECTORS
31.7.23 31.7.22
£    £   
Wages and salaries 170,578 167,727
Social security costs 13,332 15,024
Other pension costs 517 519
184,427 183,270

The average number of employees during the year was as follows:
31.7.23 31.7.22

Administration 5 5

31.7.23 31.7.22
£    £   
Directors' remuneration 114,230 114,230

7. OPERATING PROFIT

The operating profit is stated after charging:

31.7.23 31.7.22
£    £   
Depreciation - owned assets 795 1,210
Auditors' remuneration 6,900 6,900
Auditors' remuneration for non audit work 16,854 21,840

8. INTEREST PAYABLE AND SIMILAR EXPENSES
31.7.23 31.7.22
£    £   
Loan interest 242,476 154,470

GROCOLA PLC (REGISTERED NUMBER: 01209354)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JULY 2023

9. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
31.7.23 31.7.22
£    £   
Current tax:
UK corporation tax 237,335 199,686

Deferred tax:
Accelerated capital allowances (84 ) (50 )
Deferred tax on revaluations 463,439 67,835
Total deferred tax 463,355 67,785
Tax on profit 700,690 267,471

UK corporation tax has been charged at 21% (2022 - 19%).

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:

31.7.23 31.7.22
£    £   
Profit before tax 1,810,885 1,427,012
Profit multiplied by the standard rate of corporation tax in the UK of 21% (2022 -
19%)

380,286

271,132

Effects of:
Expenses not deductible for tax purposes 145 -
Gain/loss on revaluation of assets (143,180 ) (71,496 )
Deferred taxation on revaluations 463,439 67,835
Total tax charge 700,690 267,471

10. DIVIDENDS
31.7.23 31.7.22
£    £   
Ordinary shares of £1 each
Interim 150,000 150,000

GROCOLA PLC (REGISTERED NUMBER: 01209354)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JULY 2023

11. TANGIBLE FIXED ASSETS
Fixtures
and Computer
fittings equipment Totals
£    £    £   
COST
At 1 August 2022
and 31 July 2023 96,173 7,821 103,994
DEPRECIATION
At 1 August 2022 92,248 7,615 99,863
Charge for year 589 206 795
At 31 July 2023 92,837 7,821 100,658
NET BOOK VALUE
At 31 July 2023 3,336 - 3,336
At 31 July 2022 3,925 206 4,131

12. INVESTMENT PROPERTY
Total
£   
FAIR VALUE
At 1 August 2022 32,509,827
Additions 114,551
Revaluations 681,810
At 31 July 2023 33,306,188
NET BOOK VALUE
At 31 July 2023 33,306,188
At 31 July 2022 32,509,827

Investment properties were valued on an open market basis at the year end by the directors. The valuation was arrived at by reference to market evidence of transaction prices for similar properties in its location and takers.

The company has allowed fixed and floating charges over the company's assets, including the investment property with a carrying amount of £33,306,188 (2022: £32,509,827), as security for the bank loan.

The carrying value of the investments includes £3,296,930 (2022: £3,019,724) of the properties held under operating leases. The rental income due from these properties were £191,700 (2022: £188,300).

13. STOCKS
31.7.23 31.7.22
£    £   
Property for resale 182,938 182,938

GROCOLA PLC (REGISTERED NUMBER: 01209354)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JULY 2023

14. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.7.23 31.7.22
£    £   
Amount due from tenants 373,120 321,417
Amount due from managing agent - 16,529
Other taxes & social security - 1,518
Value added tax - 12,931
Prepayments and accrued income 25,946 28,905
399,066 381,300

15. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.7.23 31.7.22
£    £   
Bank loans and overdrafts (see note 17) 476,496 476,496
Trade creditors - 768
Corporation tax 237,334 199,686
Social security and other taxes 3,954 -
Value added tax 3,750 -
Other creditors 167,568 125,222
Directors' current accounts 222,702 189,421
Accruals & deferred income 253,768 228,769
1,365,572 1,220,362

Included within creditors above is an amount owing to the Director which is interest free and repayable on demand.

16. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
31.7.23 31.7.22
£    £   
Bank loans (see note 17) 3,067,476 3,534,492
Directors' loan accounts 633,698 548,675
3,701,174 4,083,167

Included within creditors falling due after more than one year above is an amount owing to the Director which is interest free and not repayable on demand.

17. LOANS

An analysis of the maturity of loans is given below:

31.7.23 31.7.22
£    £   
Amounts falling due within one year or on demand:
Bank loan 476,496 476,496

Amounts falling due in more than five years:

Repayable by instalments
Bank Loan over 5 years 3,067,476 3,534,492

GROCOLA PLC (REGISTERED NUMBER: 01209354)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JULY 2023

18. SECURED DEBTS

The following secured debts are included within creditors:

31.7.23 31.7.22
£    £   
Bank loans 3,543,972 4,010,988

The bank loans are secured by a first charge over the Company's property portfolio.

19. PROVISIONS FOR LIABILITIES
31.7.23 31.7.22
£    £   
Deferred tax
Accelerated capital allowances 701 785
Deferred tax on revaluations 3,566,908 3,103,469
3,567,609 3,104,254

Deferred
tax
£   
Balance at 1 August 2022 3,104,254
Charge to Profit and Loss Account during year 463,355
Balance at 31 July 2023 3,567,609

20. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 31.7.23 31.7.22
value: £    £   
60,000 Ordinary £1 60,000 60,000

21. RESERVES
Retained Non-distributable
earnings reserve Totals
£    £    £   

At 1 August 2022 5,801,316 19,854,566 25,655,882
Profit for the year 1,110,195 1,110,195
Dividends (150,000 ) (150,000 )
Transfer of fair value gains (681,810 ) 681,810 -
Transfer of deferred tax on revaluations 466,439 (466,439 ) -
At 31 July 2023 6,546,140 20,069,937 26,616,077

22. PENSION COMMITMENTS

The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund.

The company made contributions in respect of staff and directors totalling £517 (2021 £519) to a money purchase scheme in the period. There were £Nil (2021: £Nil) outstanding charges at either balance sheet date.

GROCOLA PLC (REGISTERED NUMBER: 01209354)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JULY 2023

23. RELATED PARTY DISCLOSURES

At the year end the directors had current account credit balances totalling £856,400 (2022: £738,096).

24. ULTIMATE CONTROLLING PARTY

The controlling party is J E Davies.