Company registration number 06653474 (England and Wales)
CHESHIRE RETAIL (NW) LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
CHESHIRE RETAIL (NW) LTD
COMPANY INFORMATION
Director
Mr N Soni
Company number
06653474
Registered office
135 Higher Parr Street
St. Helens
Merseyside
United Kingdom
WA9 1DA
Auditor
Hentons
Northgate
118 North Street
Leeds
West Yorkshire
LS2 7PN
CHESHIRE RETAIL (NW) LTD
CONTENTS
Page
Strategic report
1
Director's report
2 - 3
Independent auditor's report
4 - 6
Profit and loss account
7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 22
CHESHIRE RETAIL (NW) LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2022
- 1 -
The director presents the strategic report for the year ended 30 June 2022.
Review of the business
We aim to present a balanced and comprehensive analysis of the business. Our review is consistent with the size and non- complex nature of the business.
The company operates 13 retail outlets in the Northwest offering big brand products at low prices. A summary of the key financial highlights is as below:
Principal risks and uncertainties
The principal risks of the business are risks generally associated with the operation of independent retail discount stores.
The business environment that the company operates in continues to be challenging, with smaller independent stores facing price competition of larger retailers, which impacts on gross margins.
The company aims to improve and maintain its retail outlets to a high standard and attract increases day to day footfall in the local communities when the stores are based.
During the year the business hired new personnel in the head office to manage the estate and help transition new stores.
Increase staff costs, a hike in energy tariffs and supply chain problems during the year has significantly impacted profits, however, the financial forecast shows a positive result with the introduction of 3 new stores.
Mr N Soni
Director
16 November 2023
CHESHIRE RETAIL (NW) LTD
DIRECTOR'S REPORT
FOR THE YEAR ENDED 30 JUNE 2022
- 2 -
The director presents his annual report and financial statements for the year ended 30 June 2022.
Principal activities
The principal activity of the company continued to be that of retail store.
Results and dividends
The results for the year are set out on page 7.
Ordinary dividends were paid amounting to £15,601. The director does not recommend payment of a further dividend.
Preference dividends were paid amounting to £37,842.
Director
The director who held office during the year and up to the date of signature of the financial statements was as follows:
Mr N Soni
Auditor
The auditor, Hentons, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Statement of director's responsibilities
The director is responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the director must not approve the financial statements unless he is 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 director is 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 director is 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. He is 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.
Disclosure in the Strategic Report
The directors review of the business and their consideration of the risks and uncertainties surrounding the business maybe found in the Strategic Report.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
CHESHIRE RETAIL (NW) LTD
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2022
- 3 -
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
On behalf of the board
Mr N Soni
Director
16 November 2023
CHESHIRE RETAIL (NW) LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF CHESHIRE RETAIL (NW) LTD
- 4 -
Opinion
We have audited the financial statements of Cheshire Retail (NW) Ltd (the 'company') for the year ended 30 June 2022 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including 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 30 June 2022 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.
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 Auditor's 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 director's 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 director with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The director is responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
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 our audit:
the information given in the strategic report and the director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the director's report have been prepared in accordance with applicable legal requirements.
CHESHIRE RETAIL (NW) LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF CHESHIRE RETAIL (NW) LTD
- 5 -
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 director's report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, 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 remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of director
As explained more fully in the director's responsibilities statement, the director is 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 director determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the director is 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 director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Our audit procedures to respond to the risks identified included the following:
In line with all audits under ISAs (UK) we were required to perform tests to respond to the risk of management override. We tested the appropriateness of journal entries, evaluated the judgements made for accounting estimates to assess if any bias, and assessed the rationale behind any significant or unusual transactions.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
CHESHIRE RETAIL (NW) LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF CHESHIRE RETAIL (NW) LTD
- 6 -
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 an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Chris Howitt
Senior Statutory Auditor
For and on behalf of Hentons
16 November 2023
Chartered Accountants
Statutory Auditor
Northgate
118 North Street
Leeds
West Yorkshire
LS2 7PN
CHESHIRE RETAIL (NW) LTD
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 JUNE 2022
- 7 -
2022
2021
Notes
£
£
Turnover
3
14,321,442
11,805,159
Cost of sales
(11,236,239)
(9,281,661)
Gross profit
3,085,203
2,523,498
Administrative expenses
(3,425,024)
(2,417,762)
Other operating income
642,878
640,789
Operating profit
4
303,057
746,525
Interest receivable and similar income
7
14,734
12,500
Interest payable and similar expenses
8
(123,176)
(16,303)
Profit before taxation
194,615
742,722
Tax on profit
9
(43,947)
(172,434)
Profit for the financial year
150,668
570,288
The profit and loss account has been prepared on the basis that all operations are continuing operations.
CHESHIRE RETAIL (NW) LTD
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2022
- 8 -
2022
2021
£
£
Profit for the year
150,668
570,288
Other comprehensive income
-
-
Total comprehensive income for the year
150,668
570,288
CHESHIRE RETAIL (NW) LTD
BALANCE SHEET
- 9 -
2022
2021
Notes
£
£
£
£
Fixed assets
Goodwill
11
399,971
369,857
Tangible assets
12
133,090
201,961
533,061
571,818
Current assets
Stocks
13
817,259
715,097
Debtors
14
2,468,673
1,817,718
Cash at bank and in hand
588,737
1,594,930
3,874,669
4,127,745
Creditors: amounts falling due within one year
15
(1,606,715)
(1,699,251)
Net current assets
2,267,954
2,428,494
Total assets less current liabilities
2,801,015
3,000,312
Creditors: amounts falling due after more than one year
16
(737,892)
(1,017,861)
Provisions for liabilities
Deferred tax liability
19
32,718
49,271
(32,718)
(49,271)
Net assets
2,030,405
1,933,180
Capital and reserves
Called up share capital
21
1,200
1,200
Profit and loss reserves
2,029,205
1,931,980
Total equity
2,030,405
1,933,180
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.true
The financial statements were approved and signed by the director and authorised for issue on 16 November 2023
Mr N Soni
Director
Company registration number 06653474 (England and Wales)
CHESHIRE RETAIL (NW) LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2022
- 10 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 July 2020
1,200
1,412,724
1,413,924
Year ended 30 June 2021:
Profit and total comprehensive income
-
570,288
570,288
Dividends
10
-
(51,032)
(51,032)
Balance at 30 June 2021
1,200
1,931,980
1,933,180
Year ended 30 June 2022:
Profit and total comprehensive income
-
150,668
150,668
Dividends
10
-
(53,443)
(53,443)
Balance at 30 June 2022
1,200
2,029,205
2,030,405
CHESHIRE RETAIL (NW) LTD
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2022
- 11 -
2022
2021
Notes
£
£
£
£
Cash flows from operating activities
Cash absorbed by operations
24
(526,359)
(831,527)
Interest paid
(123,176)
(16,303)
Income taxes paid
(210,201)
(74,365)
Net cash outflow from operating activities
(859,736)
(922,195)
Investing activities
Purchase of intangible assets
(90,000)
Purchase of tangible fixed assets
(7,627)
(180,507)
Proceeds from disposal of tangible fixed assets
49,932
Interest received
14,734
12,500
Net cash used in investing activities
(32,961)
(168,007)
Financing activities
(Repayment of bank loans)/funds from loans
(31,215)
998,919
(Payment of hire purchase obligations)/hire purchase funding
(28,838)
89,024
Dividends paid
(53,443)
(51,032)
Net cash (used in)/generated from financing activities
(113,496)
1,036,911
Net decrease in cash and cash equivalents
(1,006,193)
(53,291)
Cash and cash equivalents at beginning of year
1,594,930
1,648,221
Cash and cash equivalents at end of year
588,737
1,594,930
CHESHIRE RETAIL (NW) LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
- 12 -
1
Accounting policies
Company information
Cheshire Retail (NW) Ltd is a private company limited by shares incorporated in England and Wales. The registered office is 135 Higher Parr Street, St. Helens, Merseyside, United Kingdom, WA9 1DA.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
Atruet the time of approving the financial statements, the director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover is measured at the fair value of consideration received and receivable, excluding VAT. Turnover includes all retail shop sales, along with lottery commissions and other related income.
1.4
Intangible fixed assets - goodwill
Goodwill, being the amount paid in connection with the acquisition of businesses in 2012, 2016, 2019, 2020 and 2021, are being amortised over their estimated useful lives of ten years.
Goodwill arises on business acquisitions and represents the excess of the cost of the acquisition over the company's interest in the net amount of identifiable assets, liabilities and contingent liabilities of the acquired business.
Goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. It is amortised on a straight line basis over its useful life. Where a reliable estimate of the useful life cannot be measured, the life is presumed not to exceed ten years.
1.5
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Fixtures, fittings and plant
15% Reducing balance
Motor vehicles
20% Reducing balance
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
CHESHIRE RETAIL (NW) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2022
1
Accounting policies
(Continued)
- 13 -
1.6
Stocks
Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow moving items. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads.
1.7
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.8
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
1.9
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the reporting date. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the reporting date 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.
Current and deferred tax assets and liabilities are not discounted.
1.10
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
CHESHIRE RETAIL (NW) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2022
1
Accounting policies
(Continued)
- 14 -
1.11
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.12
Leases
The finance element of the rental payment is charged to the income statement on a straight line basis.
Rentals payable under operating leases are charged against income on a straight line basis over the lease term.
1.13
Government grants
Government grants received are credited to deferred income. Grants towards capital expenditure are released to the income statement over the expected useful life of the assets. Grants received towards revenue expenditure are released to the income statement as the related expenditure is incurred.
1.14
Proposed dividends are only included as liabilities in the statement of financial position when their payment has been approved by the shareholders prior to the statement of financial position date.
1.15
Where preference shares are classed as liabilities rather than equity any preference dividends paid are included in interest payable and similar charges within the income statement.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the director is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3
Turnover and other revenue
2022
2021
£
£
Other revenue
Interest income
14,734
12,500
Commissions received
93,448
44,817
Grants received
120,984
26,993
CHESHIRE RETAIL (NW) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2022
- 15 -
4
Operating profit
2022
2021
Operating profit for the year is stated after charging/(crediting):
£
£
Government grants
(120,984)
(26,993)
Fees payable to the company's auditor for the audit of the company's financial statements
7,500
7,500
Depreciation of owned tangible fixed assets
28,571
30,243
Profit on disposal of tangible fixed assets
(2,005)
-
Amortisation of intangible assets
59,886
50,886
Operating lease charges
82,620
79,516
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2022
2021
Number
Number
Administration
5
5
Operations
136
115
Total
141
120
Their aggregate remuneration comprised:
2022
2021
£
£
Wages and salaries
2,334,096
1,697,665
Pension costs
27,475
21,070
2,361,571
1,718,735
6
Director's remuneration
2022
2021
£
£
Remuneration for qualifying services
10,848
10,608
7
Interest receivable and similar income
2022
2021
£
£
Interest income
Other interest income
14,734
12,500
CHESHIRE RETAIL (NW) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2022
- 16 -
8
Interest payable and similar expenses
2022
2021
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
123,176
16,303
9
Taxation
2022
2021
£
£
Current tax
UK corporation tax on profits for the current period
60,500
172,434
Deferred tax
Origination and reversal of timing differences
(16,553)
Total tax charge
43,947
172,434
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2022
2021
£
£
Profit before taxation
194,615
742,722
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2021: 19.00%)
36,977
141,117
Tax effect of expenses that are not deductible in determining taxable profit
420
9,669
Permanent capital allowances in excess of depreciation
12,159
(27,623)
Depreciation on assets not qualifying for tax allowances
11,378
Deferred tax adjustments in respect of prior years
9,822
Supertax deduction
(435)
Deferred tax movement
(16,552)
36,348
3,101
Taxation charge for the year
43,947
172,434
10
Dividends
2022
2021
£
£
Final paid
53,443
51,032
CHESHIRE RETAIL (NW) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2022
- 17 -
11
Intangible fixed assets
Goodwill
£
Cost
At 1 July 2021
508,864
Additions
90,000
At 30 June 2022
598,864
Amortisation and impairment
At 1 July 2021
139,007
Amortisation charged for the year
59,886
At 30 June 2022
198,893
Carrying amount
At 30 June 2022
399,971
At 30 June 2021
369,857
12
Tangible fixed assets
Fixtures, fittings and plant
Motor vehicles
Total
£
£
£
Cost
At 1 July 2021
196,506
128,375
324,881
Additions
7,627
7,627
Disposals
(49,932)
(49,932)
At 30 June 2022
154,201
128,375
282,576
Depreciation and impairment
At 1 July 2021
97,607
25,313
122,920
Depreciation charged in the year
7,959
20,612
28,571
Eliminated in respect of disposals
(2,005)
(2,005)
At 30 June 2022
103,561
45,925
149,486
Carrying amount
At 30 June 2022
50,640
82,450
133,090
At 30 June 2021
98,899
103,062
201,961
Included within the above are assets held on hire purchase. The net book value of these assets is £72,077 (2021 - £90,096) and the depreciation charge for the year is £18,019 (2021 - £18,019).
CHESHIRE RETAIL (NW) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2022
- 18 -
13
Stocks
2022
2021
£
£
Raw materials and consumables
817,259
715,097
14
Debtors
2022
2021
Amounts falling due within one year:
£
£
Trade debtors
35,816
19,757
Other debtors
2,390,287
1,669,117
Prepayments and accrued income
42,570
128,844
2,468,673
1,817,718
15
Creditors: amounts falling due within one year
2022
2021
Notes
£
£
Bank loans
17
272,743
48,958
Obligations under finance leases
18
24,969
28,838
Trade creditors
756,719
730,014
Corporation tax
183,600
333,301
Other taxation and social security
96,866
157,937
Other creditors
201,129
314,949
Accruals and deferred income
70,689
85,254
1,606,715
1,699,251
16
Creditors: amounts falling due after more than one year
2022
2021
Notes
£
£
Bank loans and overdrafts
17
696,042
951,042
Obligations under finance leases
18
41,850
66,819
737,892
1,017,861
CHESHIRE RETAIL (NW) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2022
- 19 -
17
Loans and overdrafts
2022
2021
£
£
Bank loans
968,785
1,000,000
Payable within one year
272,743
48,958
Payable after one year
696,042
951,042
A debenture with HSBC Bank PLC dated 10 October 2017 is secured by way of fixed and floating charge on the assets of the company. Hire purchase liabilities are secured against the assets to which they relate.
18
Hire purchase
2022
2021
Future hire purchase obligations due:
£
£
Within one year
24,969
28,838
In two to five years
41,850
66,819
66,819
95,657
The hire purchase liabilities are secured over assets held by the company.
19
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2022
2021
Balances:
£
£
Accelerated capital allowances
33,272
49,271
Retirement benefit obligations
(554)
-
32,718
49,271
2022
Movements in the year:
£
Liability at 1 July 2021
49,271
Credit to profit or loss
(16,553)
Liability at 30 June 2022
32,718
CHESHIRE RETAIL (NW) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2022
19
Deferred taxation
(Continued)
- 20 -
Deferred taxes in respect of timing differences have been measured at 25% as profits are expected to exceed £250,000 in future years. Deferred tax has been calculated at 25% due to the change in tax rates in 2023.
20
Retirement benefit schemes
2022
2021
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
27,475
21,070
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund. At 30 June 2022 pension contributions of £5,185 (2021 - £5,785) were payable and included in other creditors.
21
Share capital
2022
2021
2022
2021
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100
100
100
100
A Ordinary shares of £1 each
1,000
1,000
1,000
1,000
1,100
1,100
1,100
1,100
2022
2021
2022
2021
Preference share capital
Number
Number
£
£
Issued and fully paid
Preference shares of £1 each
100
100
100
100
Preference shares classified as equity
100
100
Total equity share capital
1,200
1,200
Each ordinary share has full voting rights, rights to dividends, capital and winding up distribution.
Each Preference share has full rights in respect of dividends and distribution, but no voting rights.
Each Class A Ordinary share has no voting rights or rights to capital distribution, but may be considered for dividends from time to time at the director’s discretion.
CHESHIRE RETAIL (NW) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2022
- 21 -
22
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2022
2021
£
£
Within one year
310,243
346,897
Between two and five years
734,415
1,010,383
In over five years
63,394
97,669
1,108,052
1,454,949
23
Related party transactions
During the year rental payments of £150,831 (2021 - £95,433) were pad to Innavision Group Limited, a company under common control. Interest of £12,534 (2021 - £13,000) was received during the year from Innavision Group Limited in relation to monies loaned to that company. At 30 June 2022 there was a balance of £2,204,519 (2021 - £1,402,965) owed to the company by Innavision Group Limited.
At 30 June 2022 there was a balance of £178,000 (2021 - £178,000) due from Cheshire Property Services (NW) Limited, a company under common control.
24
Cash absorbed by operations
2022
2021
£
£
Profit for the year after tax
150,668
570,288
Adjustments for:
Taxation charged
43,947
172,434
Finance costs
123,176
16,303
Investment income
(14,734)
(12,500)
Gain on disposal of tangible fixed assets
(2,005)
-
Amortisation and impairment of intangible assets
59,886
50,886
Depreciation and impairment of tangible fixed assets
28,571
30,243
Movements in working capital:
Increase in stocks
(102,162)
(245,423)
Increase in debtors
(650,955)
(1,572,169)
(Decrease)/increase in creditors
(162,751)
158,411
Cash absorbed by operations
(526,359)
(831,527)
CHESHIRE RETAIL (NW) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2022
- 22 -
25
Analysis of changes in net funds/(debt)
1 July 2021
Cash flows
30 June 2022
£
£
£
Cash at bank and in hand
1,594,930
(1,006,193)
588,737
Borrowings excluding overdrafts
(1,000,000)
31,215
(968,785)
Obligations under finance leases
(95,657)
28,838
(66,819)
499,273
(946,140)
(446,867)
2022-06-302021-07-01falseCCH SoftwareCCH Accounts Production 2023.200Mr N Soni066534742021-07-012022-06-3006653474bus:Director12021-07-012022-06-3006653474bus:RegisteredOffice2021-07-012022-06-30066534742022-06-30066534742020-07-012021-06-3006653474core:RetainedEarningsAccumulatedLosses2020-07-012021-06-3006653474core:RetainedEarningsAccumulatedLosses2021-07-012022-06-3006653474core:Goodwill2022-06-3006653474core:Goodwill2021-06-30066534742021-06-3006653474core:FurnitureFittings2022-06-3006653474core:MotorVehicles2022-06-3006653474core:FurnitureFittings2021-06-3006653474core:MotorVehicles2021-06-3006653474core:CurrentFinancialInstrumentscore:WithinOneYear2022-06-3006653474core:CurrentFinancialInstrumentscore:WithinOneYear2021-06-3006653474core:Non-currentFinancialInstrumentscore:AfterOneYear2022-06-3006653474core:Non-currentFinancialInstrumentscore:AfterOneYear2021-06-3006653474core:CurrentFinancialInstruments2022-06-3006653474core:CurrentFinancialInstruments2021-06-3006653474core:Non-currentFinancialInstruments2022-06-3006653474core:Non-currentFinancialInstruments2021-06-3006653474core:ShareCapital2022-06-3006653474core:ShareCapital2021-06-3006653474core:RetainedEarningsAccumulatedLosses2022-06-3006653474core:RetainedEarningsAccumulatedLosses2021-06-3006653474core:ShareCapital2020-06-3006653474core:RetainedEarningsAccumulatedLosses2020-06-3006653474core:ShareCapitalOrdinaryShares2022-06-3006653474core:ShareCapitalOrdinaryShares2021-06-300665347412021-07-012022-06-300665347412020-07-012021-06-30066534742021-06-30066534742020-06-3006653474core:Goodwill2021-07-012022-06-3006653474core:FurnitureFittings2021-07-012022-06-3006653474core:MotorVehicles2021-07-012022-06-3006653474core:UKTax2021-07-012022-06-3006653474core:UKTax2020-07-012021-06-300665347422021-07-012022-06-300665347422020-07-012021-06-300665347432021-07-012022-06-300665347432020-07-012021-06-300665347442021-07-012022-06-300665347442020-07-012021-06-3006653474core:Goodwill2021-06-3006653474core:Goodwillcore:ExternallyAcquiredIntangibleAssets2021-07-012022-06-3006653474core:FurnitureFittings2021-06-3006653474core:MotorVehicles2021-06-3006653474core:WithinOneYear2022-06-3006653474core:WithinOneYear2021-06-3006653474core:BetweenTwoFiveYears2022-06-3006653474core:BetweenTwoFiveYears2021-06-3006653474core:MoreThanFiveYears2022-06-3006653474core:MoreThanFiveYears2021-06-3006653474bus:PrivateLimitedCompanyLtd2021-07-012022-06-3006653474bus:FRS1022021-07-012022-06-3006653474bus:Audited2021-07-012022-06-3006653474bus:FullAccounts2021-07-012022-06-30xbrli:purexbrli:sharesiso4217:GBP