Company registration number 01267980 (England and Wales)
TASKERS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2023
TASKERS LIMITED
COMPANY INFORMATION
Directors
J S Tasker
K L Tasker
P Schwartz
Secretary
P Schwartz
Company number
01267980
Registered office
Unit A
Liver Industrial Estate
Long Lane
Liverpool
L9 7ES
Auditor
Alexander & Co LLP
Centurion House
129 Deansgate
Manchester
M3 3WR
TASKERS LIMITED
CONTENTS
Page
Strategic report
1
Directors' 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 - 26
TASKERS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 1 -
The directors present the strategic report and financial statements for the year ended 28 February 2023.
Fair review of the business
The economic climate made trading difficult with the impacts from energy price increases, rising inflation and the cost-of-living crisis hitting consumer confidence during this financial period.
Whilst these results are disappointing, they are also attributed to very specific “one off” costs: additional freight costs of circa £1m reduced our margin by 7-8% down to 39%; £86k of residual Xmas stock was written down which also impacted on margin; and currency losses of £197k were also posted in the financial period.
Along with lower costs of goods from China, a return to “normal” freight rates during the next financial year will help return our margin to between 45-50%. The stability in exchange rates should also have a significant positive impact on profit in the next financial period.
The company’s main objective going forward is to ensure that it returns to profitably and whilst the economic outlook worsened during the current financial period, we are confident that this can be achieved.
The company continues to receive excellent support from its banker HSBC who have maintained and improved our facility levels enabling us to increase foreign trade to further support the growth we are experiencing.
Principal risks and uncertainties
The principal risks to the business is that we are trading in a very challenging and uncertain economic backdrop. Through implementing a proactive and long term strategy with a clear focus on strengthening both infrastructure, systems and our consumer offer, whilst reducing our costs and improving supply lines, we have been able to minimise these risks and uncertainties to acceptable levels.
Foreign Trade
All our sales are UK based and the majority of imports are from non-EU Countries so the effect of the UK leaving the EU was minimal. We are being impacted by the weak pound and increases in freight costs and logistical challenges importing our goods but to some extent we have been able to absorb these additional costs and stock delays through increased margins and bulk purchasing.
P Schwartz
Secretary
28 November 2023
TASKERS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 2 -
The directors present their annual report and financial statements for the year ended 28 February 2023.
Principal activities
The principal activity of the company continued to be that of "Total Home and Garden" retailing.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
J S Tasker
K L Tasker
P Schwartz
Results and dividends
The results for the year are set out on page 7.
Dividends of £nil (2022 - £50,000) have been paid out in the year. The directors do not propose any further dividends.
Statement of directors' responsibilities
The directors are responsible for preparing the annual report 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). 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;
sate whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
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.
TASKERS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 3 -
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.
By order of the board
P Schwartz
Secretary
28 November 2023
TASKERS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF TASKERS LIMITED
- 4 -
Opinion
We have audited the financial statements of Taskers Limited (the 'company') for the year ended 28 February 2023 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 28 February 2023 and of its loss 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 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.
The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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 directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
TASKERS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF TASKERS 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 and the Directors' Report.
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 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, 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 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 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.
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.
Capability of the audit in detecting irregularities, including fraud
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. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Based on our understanding of the company, we identified that the principal risks of non-compliance with laws and regulations related to breaches of the legal and regulatory framework that the company operates in. We considered the extent to which non-compliance might have a material effect on the financial statements. The key laws and regulations we considered in this context included UK Companies Act 2006, employment law, health and safety and tax legislation.
We also evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to the posting of inappropriate journal entries to manipulate financial results and potential management bias in accounting estimates.
TASKERS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF TASKERS LIMITED
- 6 -
As a result of the above, our audit procedures performed included:
Discussions with management and those charged with governance in relation to known or suspected instances of non-compliance with laws and regulations and fraud.
Agreeing financial statements disclosures to underlying supporting documentation and assessing compliance with relevant laws and regulations.
Testing the appropriateness of journal entries and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.
Assessing whether the judgements made in making accounting estimates are indicative of a potential bias.
Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud.
There are inherent limitations in the audit procedures described above. The test nature and other inherent limitations of an audit, together with the inherent limitations of any accounting and internal control system, mean that there is an unavoidable risk that even some material misstatements in respect of irregularities may remain undiscovered even though the audit is properly planned and performed in accordance with ISAs (UK).
We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
Our examination should therefore not be relied upon to disclose all such material misstatements or frauds, errors or instances of non-compliance that might exist. The responsibility for safeguarding the assets of the company and for the prevention and detection of fraud, error and non-compliance with law or regulations rests with the directors of Taskers Limited.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s 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.
Gary Kramrisch
Senior Statutory Auditor
For and on behalf of Alexander & Co LLP
28 November 2023
Chartered Accountants
Statutory Auditor
Centurion House
129 Deansgate
Manchester
M3 3WR
TASKERS LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 7 -
2023
2022
Notes
£
£
Turnover
3
15,023,676
16,803,385
Cost of sales
(9,153,838)
(9,474,600)
Gross profit
5,869,838
7,328,785
Administrative expenses
(6,853,097)
(7,000,901)
Other operating income
133,488
249,960
Operating (loss)/profit
4
(849,771)
577,844
Interest receivable and similar income
7
108
95
Interest payable and similar expenses
8
(245,933)
(190,988)
(Loss)/profit before taxation
(1,095,596)
386,951
Tax on loss/profit
9
126,556
(90,475)
(Loss)/profit for the financial year
(969,040)
296,476
TASKERS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 8 -
2023
2022
£
£
(Loss)/profit for the year
(969,040)
296,476
Other comprehensive income
-
-
Total comprehensive income for the year
(969,040)
296,476
TASKERS LIMITED
BALANCE SHEET
AS AT 28 FEBRUARY 2023
28 February 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
11
12,676,251
13,096,292
Current assets
Stocks
12
4,836,825
6,684,671
Debtors
13
208,099
374,370
5,044,924
7,059,041
Creditors: amounts falling due within one year
14
(5,827,899)
(6,367,942)
Net current (liabilities)/assets
(782,975)
691,099
Total assets less current liabilities
11,893,276
13,787,391
Creditors: amounts falling due after more than one year
15
(2,995,147)
(3,788,272)
Provisions for liabilities
Deferred tax liability
18
233,730
365,680
(233,730)
(365,680)
Net assets
8,664,399
9,633,439
Capital and reserves
Called up share capital
20
50,000
50,000
Revaluation reserve
5,238,229
5,291,547
Other reserves
6,700
6,700
Profit and loss reserves
3,369,470
4,285,192
Total equity
8,664,399
9,633,439
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.true
The financial statements were approved by the board of directors and authorised for issue on 28 November 2023 and are signed on its behalf by:
J S Tasker
Director
Company registration number 01267980 (England and Wales)
TASKERS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 10 -
Share capital
Revaluation reserve
Other reserves
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 March 2021
50,000
5,344,040
6,700
3,986,223
9,386,963
Year ended 28 February 2022:
Profit and total comprehensive income for the year
-
-
-
296,476
296,476
Dividends
10
-
-
-
(50,000)
(50,000)
Transfers
-
(52,493)
-
52,493
-
Balance at 28 February 2022
50,000
5,291,547
6,700
4,285,192
9,633,439
Year ended 28 February 2023:
Loss and total comprehensive income for the year
-
-
-
(969,040)
(969,040)
Transfers
-
(53,318)
-
53,318
-
Balance at 28 February 2023
50,000
5,238,229
6,700
3,369,470
8,664,399
TASKERS LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 11 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
25
745,068
(156,193)
Interest paid
(245,933)
(190,988)
Income taxes paid
(5,394)
Net cash inflow/(outflow) from operating activities
493,741
(347,181)
Investing activities
Purchase of tangible fixed assets
(169,613)
(237,040)
Proceeds from disposal of tangible fixed assets
123,751
3,500
Interest received
108
95
Net cash used in investing activities
(45,754)
(233,445)
Financing activities
Repayment of bank loans
(675,159)
(565,183)
Payment of finance leases obligations
(91,982)
(104,208)
Dividends paid
(50,000)
Net cash used in financing activities
(767,141)
(719,391)
Net decrease in cash and cash equivalents
(319,154)
(1,300,017)
Cash and cash equivalents at beginning of year
(213,072)
1,086,945
Cash and cash equivalents at end of year
(532,226)
(213,072)
Relating to:
Bank overdrafts included in creditors payable within one year
(532,226)
(213,072)
TASKERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 12 -
1
Accounting policies
Company information
Taskers Limited is a private company limited by shares incorporated in England and Wales. The registered office is Unit A, Liver Industrial Estate, Long Lane, Liverpool, L9 7ES.
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 land and buildings. The principal accounting policies adopted are set out below.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
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), 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 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:
Land and buildings
2% per annum reducing balance
Leasehold improvements
2% per annum reducing balance
Plant and machinery
20% per annum reducing balance
Fixtures, fittings & equipment
10% - 20% per annum straight line
Motor vehicles
20% per annum 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.
Basis of depreciation of fixtures and fittings has been changed from 10 - 20% reducing balance to 10 - 20% straight line.
TASKERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
1
Accounting policies
(Continued)
- 13 -
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. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.6
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.
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 complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.7
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.
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 unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
TASKERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
1
Accounting policies
(Continued)
- 14 -
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, 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, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
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. The impairment loss is recognised in profit or loss.
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, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
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, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
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. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
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, unless hedge accounting is applied and the hedge is a cash flow hedge.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
TASKERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
1
Accounting policies
(Continued)
- 15 -
1.8
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.
1.9
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 liabilities are generally recognised for all 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. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.10
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.
1.11
Retirement benefits
The pension costs charged in the financial statements represent the contribution payable by the company during the year.
1.12
Share-based payments
During the year ended 28 February 2023 the company had one share based payment arrangement, being an Enterprise Management Incentive (EMI) share option scheme granted to key management on 14 August 2015. Options were issued for 4,125 ordinary shares and vest on the sale of the company or lapse after 10 years.
TASKERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
1
Accounting policies
(Continued)
- 16 -
1.13
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
1.14
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
1.15
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are 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.
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Impairment for stock
Determining whether stock balances are valued correctly, requires, and is based on, up to date trading information. The directors use their knowledge of the business, the trading environment and future projections to assess whether provision is necessary in these areas.
Property valuation
The directors use available market-based information to determine whether the properties are valued accurately.
TASKERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 17 -
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
2023
2022
£
£
Turnover analysed by class of business
Total Home & Garden Retailing
15,023,676
16,803,385
2023
2022
£
£
Other significant revenue
Grants received
-
130,664
4
Operating (loss)/profit
2023
2022
Operating (loss)/profit for the year is stated after charging/(crediting):
£
£
Exchange losses
197,109
21,575
Government grants
-
(130,664)
Fees payable to the company's auditor for the audit of the company's financial statements
27,000
28,500
Depreciation of owned tangible fixed assets
477,952
498,873
Profit on disposal of tangible fixed assets
(12,049)
(1,969)
Operating lease charges
65,678
56,264
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Office and management
10
11
Production and sales
131
161
141
172
Their aggregate remuneration comprised:
2023
2022
£
£
Wages and salaries
2,917,303
3,272,967
Social security costs
232,644
252,299
Pension costs
110,170
120,581
3,260,117
3,645,847
TASKERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 18 -
6
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
124,332
273,028
Remuneration disclosed above include the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
n/a
165,987
As total directors' remuneration was less than £200,000 in the current year, no disclosure is provided for that year.
7
Interest receivable and similar income
2023
2022
£
£
Interest income
Bank interest
108
95
8
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
204,123
145,010
Other interest
22,801
26,969
226,924
171,979
Other finance costs:
Interest on finance leases and hire purchase contracts
19,009
19,009
245,933
190,988
TASKERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 19 -
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
5,394
Deferred tax
Origination and reversal of timing differences
(131,950)
90,475
Total tax (credit)/charge
(126,556)
90,475
The UK Government announced in the 2021 budget that from 1 April 2023, the rate of corporation tax in the United Kingdom will increase from 19% to 25%.
The actual (credit)/charge for the year can be reconciled to the expected (credit)/charge for the year based on the profit or loss and the standard rate of tax as follows:
2023
2022
£
£
(Loss)/profit before taxation
(1,095,596)
386,951
Expected tax (credit)/charge based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
(208,163)
73,521
Tax effect of expenses that are not deductible in determining taxable profit
2,420
5,642
Unutilised tax losses carried forward
111,514
Effect of change in corporation tax rate
56,095
Other non-reversing timing differences
5,394
Under/(over) provided in prior years
755
Depreciation in excess of capital allowances
25,008
26,641
Losses utilised
(105,804)
Accelerated capital allowances
(8,065)
(21,039)
Taxation (credit)/charge for the year
(126,556)
90,475
10
Dividends
2023
2022
£
£
Final paid
50,000
TASKERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 20 -
11
Tangible fixed assets
Land and buildings
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
£
Cost or valuation
At 1 March 2022
11,264,359
594,100
8,330,576
106,266
20,295,301
Additions
35,661
88,783
45,169
169,613
Disposals
(100,000)
(14,041)
(114,041)
At 28 February 2023
11,164,359
629,761
8,419,359
137,394
20,350,873
Depreciation and impairment
At 1 March 2022
630,088
495,782
5,999,734
73,405
7,199,009
Depreciation charged in the year
113,676
16,732
341,329
6,215
477,952
Eliminated in respect of disposals
(2,339)
(2,339)
At 28 February 2023
743,764
512,514
6,341,063
77,281
7,674,622
Carrying amount
At 28 February 2023
10,420,595
117,247
2,078,296
60,113
12,676,251
At 28 February 2022
10,634,271
98,318
2,330,842
32,861
13,096,292
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
2023
2022
£
£
Fixtures, fittings & equipment
682,407
816,953
Land and buildings with a carrying amount of £5,492,070 were revalued to £11,000,000 in February 2017 by an external valuer, on the basis of market value. The directors consider the valuation included in the accounts to be fairly stated.
If revalued assets were stated on a historical cost basis rather than a fair value basis, the total amounts included would have been as follows:
TASKERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
11
Tangible fixed assets
(Continued)
- 21 -
2023
2022
£
£
Cost
7,019,367
7,119,367
Accumulated depreciation
(1,978,850)
(1,922,788)
Carrying value
5,040,517
5,196,579
Included within Land & Buildings are Freehold properties with a net book value of £120,000 (2022 - £122,000), Long leasehold properties with a net book value of £10,033,000 (2022 - £10,238,000) and short leasehold properties with a net book value of £267,000 (2022 - £271,000).
12
Stocks
2023
2022
£
£
Finished goods and goods for resale
4,836,825
6,684,671
13
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
12,242
109,205
Other debtors
64,863
114,034
Prepayments and accrued income
130,994
151,131
208,099
374,370
14
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Bank loans and overdrafts
16
1,247,497
901,644
Obligations under finance leases
17
82,919
83,634
Trade creditors
2,704,234
3,177,378
Taxation and social security
139,897
51,272
Other creditors
1,360,688
1,909,130
Accruals and deferred income
292,664
244,884
5,827,899
6,367,942
TASKERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 22 -
15
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Bank loans and overdrafts
16
2,964,767
3,666,625
Obligations under finance leases
17
30,380
121,647
2,995,147
3,788,272
Amounts included above which fall due after five years are as follows:
Payable by instalments
935,918
1,290,789
16
Loans and overdrafts
2023
2022
£
£
Bank loans
3,680,038
4,355,197
Bank overdrafts
532,226
213,072
4,212,264
4,568,269
Payable within one year
1,247,497
901,644
Payable after one year
2,964,767
3,666,625
The company's borrowings are secured by way of fixed and floating charges over the assets of the company, a legal mortgage and debenture.
There were three loans at the year end. The first loan of £2,107,820 (2022 - £2,280,755) is repayable over 25 years from the date of drawdown (June 2007) and was interest only until July 2012 at which point capital repayments commenced. Interest is charged at 2% per annum over the bank's sterling base rate.
The second loan of £305,551 (2022 - £427,775) is repayable over 10 years by quarterly instalments from the date of drawdown (August 2015) and was interest only until 15 months after drawdown at which point capital repayments commenced. Interest is charged at 2.5% per annum over the bank's sterling base rate.
The third loan of £1,266,667 (2022 - £1,646,667) is repayable over 6 years from the date of drawdown (June 2020) and was interest only until June 2021 at which point capital repayments commenced. Interest is charged at 3.99% per annum over the bank's sterling base rate.
The bank facility was renewed in April 2023. At the balance sheet date, the company was in technical breach of one of several financial ratio covenants relating to the £305,551 bank loan and the £1,266,667 bank loan; however the bank confirmed that no action would be taken.
TASKERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 23 -
17
Finance lease obligations
2023
2022
Future minimum lease payments due under finance leases:
£
£
Within one year
82,920
83,634
In two to five years
30,379
121,647
113,299
205,281
Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 5 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
18
Deferred taxation
Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:
Liabilities
Liabilities
2023
2022
Balances:
£
£
ACAs
534,940
432,849
Tax losses
(301,210)
(67,169)
233,730
365,680
2023
Movements in the year:
£
Liability at 1 March 2022
365,680
Credit to profit or loss
(131,950)
Liability at 28 February 2023
233,730
The deferred tax liability set out above is expected to reverse within 60 months and relates to accelerated capital allowances that are expected to mature within the same period.
19
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
110,170
120,581
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.
TASKERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
19
Retirement benefit schemes
(Continued)
- 24 -
Included in accruals and deferred income is £10,564 (2022 - £11,609) relating to employee pension contributions payable.
20
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
50,000
50,000
50,000
50,000
21
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:
2023
2022
£
£
Within one year
1,115,042
1,081,982
Between two and five years
4,183,418
4,185,877
In over five years
13,358,043
14,402,115
18,656,503
19,669,974
22
Directors' transactions
At the balance sheet date an amount of £663,385 was due from the company to J.S. Tasker, a director (2022 - £851,181) including interest. Interest is charged on the loan account at 3% per annum. The balance is included within other creditors.
TASKERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 25 -
23
Related party transactions
Remuneration of key management personnel
The remuneration of key management personnel is as follows.
2023
2022
£
£
Aggregate compensation
124,332
273,028
During the year the company paid rent of £240,146 (2022 - £240,146) to the Taskers DIY Directors' Pension Scheme, of which J S Tasker is both a trustee and a beneficiary.
The company transacted with Formby Cycles Limited, a company under the control of J. S. Tasker. During the year expenses were paid on behalf of Formby Cycles Limited and repayments were made by Formby Cycles Limited. The net effect of the transactions was an increase of £10,560 in the balance owed to Taskers Ltd to £31,169 (2022 - £20,609) which was outstanding at the year end and is disclosed within other debtors. The loan is interest free with no fixed repayment date.
Taskers Ltd also charged a management charge of £20,000 (2022 - £20,000) to Formby Cycles Limited.
At the balance sheet date an amount of £33,131 (2022 - £33,131) was owed to the company by Jay Tasker, a shareholder, and is included within other debtors.
24
Controlling party
In the opinion of the directors the ultimate controlling party of the company is J S Tasker by virtue of his majority shareholding in the company.
25
Cash generated from/(absorbed by) operations
2023
2022
£
£
(Loss)/profit for the year after tax
(969,040)
296,476
Adjustments for:
Taxation (credited)/charged
(126,556)
90,475
Finance costs
245,933
190,988
Investment income
(108)
(95)
Gain on disposal of tangible fixed assets
(12,049)
(1,969)
Depreciation and impairment of tangible fixed assets
477,952
498,873
Decrease in provisions
(210,000)
Movements in working capital:
Decrease/(increase) in stocks
1,847,846
(2,738,994)
Decrease in debtors
166,271
534,654
(Decrease)/increase in creditors
(885,181)
1,183,399
Cash generated from/(absorbed by) operations
745,068
(156,193)
TASKERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 26 -
26
Analysis of changes in net debt
1 March 2022
Cash flows
28 February 2023
£
£
£
Bank overdrafts
(213,072)
(319,154)
(532,226)
Borrowings excluding overdrafts
(4,355,197)
675,159
(3,680,038)
Obligations under finance leases
(205,281)
91,982
(113,299)
(4,773,550)
447,987
(4,325,563)
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