Company registration number 2840966 (England and Wales)
LEADER (UK) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2022
LEADER (UK) LIMITED
COMPANY INFORMATION
Director
J B Devlin
Secretary
G Krishna
Company number
2840966
Registered office
3 Oak Lock Mews
Chiswick
London
W4 4NN
Auditor
Kershen Fairfax
Beacon House
113 Kingsway
London
WC2B 6PP
LEADER (UK) LIMITED
CONTENTS
Page
Strategic report
1
Director's report
2
Director's responsibilities statement
3
Independent auditor's report
4 - 7
Statement of income and retained earnings
8
Balance sheet
9
Notes to the financial statements
10 - 18
LEADER (UK) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 NOVEMBER 2022
- 1 -

The director presents the strategic report for the year ended 30 November 2022.

Review of the business

The company’s trade is the import and export of minerals.

 

The company continued trading as normal during the pandemic year, which was the most difficult ever experienced. The easing of the pandemic led to a sharp rebound in worldwide demand for commodities, but together with a serious supply shortage and historically sky-high prices of sea freight. this in turn caused a major shortage of transportation which resulted in two serious cargo damage incidents, both resulting in major claims, which unfortunately may negatively affect results for 2022/23. Despite this, the overall market has recovered, the future looks bright and there is scope for expansion.

 

The company was able to record a pre-tax profit of £968k, compared with £991k achieved in the previous year. Following the recovery in demand and supply at the end of the pandemic, turnover rose to £18.7m representing an increase of 15% from the £16.3m transacted in 2020/21; and an improvement in margins resulted in an overall gross margin of 11.4% (10.8% in 2020/21). Overheads rose from £800k to £833k, but remain low by industry standards. The company benefits from a stable, skilled group of employees, where staff numbers totalled 4 full time and 3 part-time as in the previous year.

 

The company’s stock levels have decreased from £5.1m to £4.3m, the easing of supply conditions meaning higher stock levels were no longer necessary. Trade debtors rose in proportion to sales, to 2.4m; and trade creditors fell from £4.7m to £3.7m, again as a consequence of conditions easing at the end of the year. Cash balances fell from £1.1m to £0.9m as some working capital was repaid to the parent company; they remain adequate, and the company had no bank borrowing at the year-end.

 

The key performance indicators are considered to be turnover, pre-tax profit and liquidity.

 

Since the year-end, sales remain strong, and the director expects trading for 2022/23 to remain comfortably profitable despite the hangover of the two claimed cargo disputes. Due to these claims, it was decided to divest and discontinue all future business in the SW80 product line, as the possible downstream liabilities were deemed too onerous. Taken together with a general market-led fall in prices, this is expected to result in a temporary dip in trade and turnover for 2022/23; but at the same time, warehousing costs will fall substantially due to the reduction in storage facilities.

 

 

Principal risks and uncertainties

The company trades and distributes commodities in a worldwide market and is therefore subject to the consequential uncertainties, including fluctuating exchange rates, commodity prices, industrial demand, and geo-political risks. The principal business risks are exposure to loss on currency fluctuations, which is managed by the forward purchase of currency and currency options and continuous monitoring of exchange rates; credit risk; and liquidity risk.

Development and performance

At the year-end, the company's balance sheet remains strong and management information implies that this position will be maintained. The company is in a good position with a niche market, a strong supply base and a strong customer base, both of which have endured for the past thirty years and could be significantly expanded.

On behalf of the board

J B Devlin
Director
17 November 2023
LEADER (UK) LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 30 NOVEMBER 2022
- 2 -
The director presents his report and financial statements for the year ended 30 November 2022.
Principal activities

The principal activity of the company continued to be the import and export of minerals.

 

Results and dividends

The results for the year are set out on page 6.

An interim dividend of £658,436 was voted and paid [2021 £638,339]. The director does not recommend payment of a final dividend.

Director

The director who held office during the year and up to the date of signature of the financial statements was as follows:

J B Devlin
Auditor

In accordance with the company's articles, a resolution proposing that Kershen Fairfax be reappointed as auditor of the company will be put at a General Meeting.

Statement of disclosure to auditor

(a) so far as the director is aware, there is no relevant audit information of which the company's auditors are unaware, and

 

(b) he 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.

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
J B Devlin
Director
17 November 2023
LEADER (UK) LIMITED
DIRECTOR'S RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 NOVEMBER 2022
- 3 -

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:

 

 

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.

LEADER (UK) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF LEADER (UK) LIMITED
- 4 -
Opinion

We have audited the financial statements of Leader (UK) Limited (the 'company') for the year ended 30 November 2022 which comprise the statement of income and retained earnings, the balance sheet 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:

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 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 their preparation is appropriate. Based on the work that we performed, we have not identified any material uncertainties relating to events or conditions which individually or collectively may cast doubt on the company's ability to continue as a going concern, for at least twelve months from the date of their approval. Our responsibilities and the responsibilities of the director regarding going concern are described elsewhere in this report.

Other information

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:

LEADER (UK) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF LEADER (UK) LIMITED
- 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:

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 directors determine 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.

LEADER (UK) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF LEADER (UK) LIMITED
- 6 -
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;

We planned our audit in accordance with the requirements of ISA 300, and assessed audit risks in accordance with ISA 315. No significant risks of fraud or other irregularities were identified. Our audit work was conducted in accordance with the audit plan, and no indications of fraud or other irregularities were found. We consider therefore that so far as reasonably possible our audit is capable of detecting irregularities.

 

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows;

- we identified the laws and regulations applicable to the company through discussions with management and from our knowledge and experience of the sector;

-we focused on specific laws and regulations which we considered may have a material effect on the company's financial statements or operations;

- and we assessed the extent of compliance with the laws and regulations identified, by making enquires of management and inspecting correspondence.

 

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur,by;

-enquiring of management as to where they considered there was susceptibility to fraud and their knowledge of actual or suspected fraud;

- considering the internal controls in place to mitigate the risks of such fraud and non-compliance.

 

In order to address the risk of fraud through management bias and override of controls, we;

- performed analytical procedures to look for unusual or unexpected relationships;

- tested journal entries to identify unusual transactions;

-assessed whether judgments and assumptions made in determining accounting estimates were indicative of potential bias;

-and investigated the rationale behind unusual or significant transactions.

 

In response to the risk of irregularities and non-compliance, we designed procedures including but not limited to;

-agreeing financial statement disclosures to underlying supporting documentation;

-enquiring of management as to actual or potential litigation and claims;

- and reviewing correspondence with relevant authorities.

 

There are inherent limitations in the 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 enquiries of directors and management and inspection of regulatory and legal correspondence, if any.

 

Material misstatements arising due to fraud can be harder to detect than those arising 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. This description forms part of our auditor’s report.

LEADER (UK) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF LEADER (UK) LIMITED
- 7 -

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 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.

Duncan Hooper
(Senior Statutory Auditor)
for and on behalf of Kershen Fairfax
17 November 2023
Chartered Accountants
Statutory Auditor
Beacon House
113 Kingsway
London
WC2B 6PP
LEADER (UK) LIMITED
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 30 NOVEMBER 2022
- 8 -
2022
2021
Notes
£
£
Turnover
3
18,676,012
16,339,472
Cost of sales
(16,541,087)
(14,574,937)
Gross profit
2,134,925
1,764,535
Administrative expenses
(833,535)
(800,210)
Operating profit
4
1,301,390
964,325
Interest receivable and similar income
7
8,580
784
Interest payable and similar expenses
8
(151,431)
(92,532)
Fair value gain on investments
9
(191,000)
118,200
Profit before taxation
967,539
990,777
Tax on profit
10
(172,300)
(191,950)
Profit for the financial year
795,239
798,827
Retained earnings brought forward
817,631
657,148
Dividends
11
(658,436)
(638,339)
Retained earnings carried forward
954,434
817,636

The profit and loss account has been prepared on the basis that all operations are continuing operations.

LEADER (UK) LIMITED
BALANCE SHEET
AS AT
30 NOVEMBER 2022
30 November 2022
- 9 -
2022
2021
Notes
£
£
£
£
Fixed assets
Tangible assets
12
21,867
39,727
Current assets
Stocks
14
4,325,607
5,101,446
Debtors
15
2,403,902
2,334,153
Cash at bank and in hand
951,752
1,155,741
7,681,261
8,591,340
Creditors: amounts falling due within one year
16
(6,546,696)
(7,611,438)
Net current assets
1,134,565
979,902
Net assets
1,156,432
1,019,629
Capital and reserves
Called up share capital
19
202,000
202,000
Profit and loss reserves
954,432
817,629
Total equity
1,156,432
1,019,629

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 17 November 2023
J B Devlin
Director
Company registration number 2840966 (England and Wales)
LEADER (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2022
- 10 -
1
Accounting policies
Company information

Leader (UK) Limited is a private company limited by shares incorporated in England. The registered office is 3 Oak Lock Mews, Chiswick, London, W4 4NN.

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, modified to include the revaluation of certain financial instruments at fair value. 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. Therefore the director continues to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Turnover represents amounts receivable for goods delivered and invoiced during the year, net of VAT.

 

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods from the warehouse), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.4
Tangible fixed assets

Tangible fixed assets are measured at cost, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:

Leasehold improvements
20% straight line
Fixtures, fittings & equipment
20% Straight line
Motor vehicles
20% Straight line

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.

1.5
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted if necessary.

 

LEADER (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2022
1
Accounting policies
(Continued)
- 11 -
1.6
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, those overheads that have been incurred in bringing the stocks to their present location and condition.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

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 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’.

 

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.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss,

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity.

LEADER (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2022
1
Accounting policies
(Continued)
- 12 -
Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, loans from fellow group companies, are initially recognised at transaction price. Financial liabilities classified as payable within one year are not amortised.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less and recognised at transaction price.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate.

 

 

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.9
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.10
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 liabilities are recognised for all significant timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits..

 

Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled. Deferred tax is charged or credited in the profit and loss account.

LEADER (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2022
1
Accounting policies
(Continued)
- 13 -
1.11
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense.

 

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.

1.12
Retirement benefits

The pension costs charged in the financial statements represent the contributions payable by the company during the year to money purchase pension schemes.

1.13
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to income on a straight line basis over the term of the relevant lease..

1.14
Foreign exchange
Assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange ruling at the year end. Transactions in foreign currencies are translated into sterling at the rates of exchange ruling at the transaction date. Differences arising from transfers between sterling and currency bank accounts are taken to the profit and loss account.
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

An analysis of the company's turnover is as follows:

2022
2021
£
£
Turnover
Sales of minerals
18,676,012
16,339,472
LEADER (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2022
3
Turnover and other revenue
(Continued)
- 14 -
Turnover analysed by geographical market
2022
2021
£
£
United Kingdom
3,033,800
3,431,539
Europe
15,642,212
12,907,933
18,676,012
16,339,472
4
Operating profit
2022
2021
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange (gains)/losses
(162,399)
156,263
Fees payable to the company's auditor for the audit of the company's financial statements
14,825
13,713
Depreciation of owned tangible fixed assets
17,860
17,861
Operating lease charges
48,000
48,000

.

5
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2022
2021
Number
Number
Sales
5
5
Administration
2
2
Total
7
7

Their aggregate remuneration comprised:

2022
2021
£
£
Wages and salaries
267,948
249,842
Social security costs
25,317
23,432
Pension costs
117,900
103,535
411,165
376,809
LEADER (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2022
- 15 -
6
Director's remuneration
2022
2021
£
£
Remuneration for qualifying services
1,000
980

 

7
Interest receivable and similar income
2022
2021
£
£
Interest income
Interest on bank deposits
8,580
784
8
Interest payable and similar expenses
2022
2021
£
£
Interest payable to group undertakings
150,588
92,152
Other interest
843
380
151,431
92,532
9
Fair value gains on financial instruments
2022
2021
£
£
Fair value gains on financial instruments
(Loss)/gain on financial liabilities held at fair value through profit and loss
(191,000)
118,200
10
Taxation
2022
2021
£
£
Current tax
UK corporation tax on profits for the current period
172,300
191,950
LEADER (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2022
10
Taxation
(Continued)
- 16 -

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
967,539
990,777
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2021: 19.00%)
183,832
188,248
Tax effect of expenses that are not deductible in determining taxable profit
318
311
Tax effect of income not taxable in determining taxable profit
(15,200)
-
0
Depreciation on assets not qualifying for tax allowances
3,350
3,391
Taxation charge for the year
172,300
191,950
11
Dividends
2022
2021
£
£
Interim paid
658,436
638,339
12
Tangible fixed assets
Leasehold improvements
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
Cost
At 1 December 2021 and 30 November 2022
20,653
96,208
39,639
156,500
Depreciation and impairment
At 1 December 2021
12,653
80,337
23,783
116,773
Depreciation charged in the year
3,140
6,792
7,928
17,860
At 30 November 2022
15,793
87,129
31,711
134,633
Carrying amount
At 30 November 2022
4,860
9,079
7,928
21,867
At 30 November 2021
8,000
15,871
15,856
39,727
LEADER (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2022
- 17 -
13
Financial instruments
2022
2021
£
£
Carrying amount of financial assets
Instruments measured at fair value through profit or loss
-
118,200
Carrying amount of financial liabilities
Measured at fair value through profit or loss
- Other financial liabilities
72,800
-
14
Stocks
2022
2021
£
£
Goods for resale
4,325,607
5,101,446
15
Debtors
2022
2021
Amounts falling due within one year:
£
£
Trade debtors
2,403,902
2,193,703
Derivative financial instruments
-
118,200
Other debtors
-
0
22,250
2,403,902
2,334,153
16
Creditors: amounts falling due within one year
2022
2021
£
£
Trade creditors
3,720,736
4,723,148
Amounts owed to group undertakings
2,121,024
2,439,944
Corporation tax
364,252
284,199
Other taxation and social security
110,925
6,444
Derivative financial instruments
72,800
-
0
Other creditors
53,678
34,852
Accruals and deferred income
103,281
122,851
6,546,696
7,611,438
17
Loans and overdrafts

Finance facilities are secured on a debenture held by Svenska Handelsbanken over the assets of the company.

 

LEADER (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2022
- 18 -
18
Retirement benefit schemes
2022
2021
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
117,900
103,535

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.

19
Share capital
2022
2021
2022
2021
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 40.4p each
500,000
500,000
202,000
202,000
20
Operating lease commitments
Lessee

The company had no commitments under operating leases at the year-end.

21
Directors' transactions

The company occupies offices owned by the director for which a market rent was paid.

 

At the year-end, the company owed £48,877 (2021; £30,052) to the director.

22
Ultimate controlling party

Rosebud Maximus Limited, a company registered in England and controlled by the director, is the immediate and ultimate parent company. The consolidated financial statements of this group are publicly available.

 

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