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The Sportsman Gun Centre Limited

Annual Report and Financial Statements
Year Ended 28 February 2023

Registration number: 07159237

 

The Sportsman Gun Centre Limited

Contents

Company Information

1

Strategic Report

2

Directors' Report

3

Statement of Directors' Responsibilities

4

Independent Auditor's Report

5 to 7

Profit and Loss Account

8

Statement of Comprehensive Income

9

Balance Sheet

10

Statement of Changes in Equity

11

Statement of Cash Flows

12

Notes to the Financial Statements

13 to 25

 

The Sportsman Gun Centre Limited

Company Information

Directors

G M Lamburn

J B T Cattran

Company secretary

J B T Cattran

Registered office

Lowin House
Tregolls Road
Truro
Cornwall
TR1 2NA

Bankers

Barclays Bank PLC
South Devon Group
40 Courtenay Street
Newton Abbot
Devon
TQ12 2EA

Auditors

PKF Francis Clark
Statutory Auditor
Lowin House
Tregolls Road
Truro
Cornwall
TR1 2NA

 

The Sportsman Gun Centre Limited

Strategic Report for the Year Ended 28 February 2023

The directors present their strategic report for the year ended 28 February 2023.

Principal activity

The principal activity of the company is the retail and wholesale of sporting goods.

Fair review of the business

Results for the year are set out on page 8.

The business reports a reduction of turnover in 2023 to £20.81 million (2022 £23.10 million) which reflects a similar level to that reported in 2021. The reduction in 2023 can be mainly attributed to the impact in gun licensing arrangements where delays of up to 2 years have been commonplace. Despite the challenges of the market the company has managed to broadly maintain its gross profit margin at 27.6% (2022 28.9%). The company reports above inflationary growth in its administration costs with an increase of 13.9% to £2.96 million (2022 £2.60 million). This increase reflects the company’s planned investment in the future growth of the business and in particular its people, client service, markets, and facilities. The net profit after tax of £2.41 million (2022 £3.4 million) has reduced primarily because of the reduced turnover with margins having been broadly maintained.

The balance sheet on page 10 indicates net assets carried forward at the year end of £17.98 million (2022 £15.64 million).

The company's key financial and other performance indicators during the year were as follows:

Financial KPIs

Unit

2023

2022

Turnover

£'000

20,810

23,096

Gross profit

%

28

29

Principal risks and uncertainties

In the course of its ordinary business the company has to assess and manage various risks that could prevent it from achieving its objectives. We set out below what we consider to be the main risks that currently affect the company:

As part of the leisure industry we are exposed to the general state of the UK and international economy and level of consumer spending. The company operates in a niche sector with a loyal customer base which the directors believe to be insulated from the worst effects of any economic downturn. The company seeks to maintain its position by offering a pre-eminent selection of products across a range of prices.

We operate within an industry that is heavily regulated and non compliance could cause us to lose the ability to trade in a number of product areas. The company is committed to governance of the highest order, both through the implementation of robust internal procedures and through the training of employees, to ensure that all requirements are met.

Approved and authorised by the Board on 28 November 2023 and signed on its behalf by:
 

.....................................
J B T Cattran
Company secretary and director

 

The Sportsman Gun Centre Limited

Directors' Report for the Year Ended 28 February 2023

The directors present their report and the financial statements for the year ended 28 February 2023.

Directors of the company

The directors who held office during the year were as follows:

G M Lamburn

J B T Cattran

Financial instruments

Objectives and policies

The company aims to have sufficient financial resources to allow for the day to day operation of the business for the foreseeable future. The principal financial instruments comprise bank loans, credit advanced by suppliers and loans from the directors.

Future trading cash flow is projected to allow for the repayment of bank loans within the agreed terms whilst suppliers are paid within agreed credit terms wherever possible.

Price risk, credit risk, liquidity risk and cash flow risk

The company requires cash resources to be available to allow it to take advantage of stock buying opportunities as they arise and relies on sales volumes being maintained at current levels to ensure that cash flow risk is mitigated.

In the event of a downturn in trade the directors are confident that the company would be well placed to react by reducing stock holding and by releasing working capital as necessary.

Disclosure of information to the auditors

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.

Approved and authorised by the Board on 28 November 2023 and signed on its behalf by:
 

..............................
J B T Cattran
Company secretary and director

 

The Sportsman Gun Centre Limited

Statement of Directors' Responsibilities

The directors acknowledge their responsibilities 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 apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable United Kingdom 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.

 

The Sportsman Gun Centre Limited

Independent Auditor's Report to the Members of The Sportsman Gun Centre Limited

Opinion

We have audited the financial statements of The Sportsman Gun Centre Limited (the 'company') for the year ended 28 February 2023, which comprise the Profit and Loss Account, Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

give a true and fair view of the state of the company's affairs as at 28 February 2023 and of its profit for the year then ended;

have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor 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

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

the directors’ use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

Other information

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.

 

The Sportsman Gun Centre Limited

Independent Auditor's Report to the Members of The Sportsman Gun Centre Limited

We have nothing to report in this regard.

Opinion on other matter prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of our 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 directors' remuneration specified by law are not made; or

we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page 4, 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 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.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

 

The Sportsman Gun Centre Limited

Independent Auditor's Report to the Members of The Sportsman Gun Centre Limited

Extent to which the audit was considered capable of 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:

We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our commercial and sector experience and through discussions with the directors and other management. We discussed with the directors and other management the policies and procedures regarding compliance throughout the audit and any relevant correspondence with regulatory bodies. We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit.

The potential effect of these laws and regulations on the financial statements varies significantly.

The company is subject to laws that directly affect the financial statements including financial reporting and taxation legislation and we assessed the extent of compliance with these laws and regulations as part of our procedures.

The company is subject to other laws and regulations where the consequences of non-compliance could have an effect on the amounts or disclosures in the financial statements, for instance the result of a litigation claim. We identified the following areas as those most likely to have an effect: firearms, and explosives licensing, employment law, health and safety, data protection and company legislation.

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry with the directors and other management and review of legal correspondence if any. Through such procedures, we did not identify any actual or suspected non-compliance. Owing to the inherent limitations of an audit there is an unavoidable risk that we have not detected some material misstatements in the financial statements.

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.

......................................
Andrew Allen BSc FCA (Senior Statutory Auditor)
PKF Francis Clark, Statutory Auditor

Lowin House
Tregolls Road
Truro
Cornwall
TR1 2NA

28 November 2023

 

The Sportsman Gun Centre Limited

Profit and Loss Account

Year Ended 28 February 2023

Note

2023
 £ 000

2022
 £ 000

Turnover

3

20,810

23,096

Cost of sales

 

(15,064)

(16,424)

Gross profit

 

5,746

6,672

Administrative expenses

 

(2,959)

(2,598)

Other operating income

4

136

199

Operating profit

5

2,923

4,273

Other interest receivable and similar income

9

155

-

Interest payable and similar charges

10

(65)

(33)

 

90

(33)

Profit before tax

 

3,013

4,240

Taxation

11

(607)

(850)

Profit for the financial year

 

2,406

3,390

The above results were derived from continuing operations.

The company has no recognised gains or losses for the year other than the results above.

 

The Sportsman Gun Centre Limited

Statement of Comprehensive Income

Year Ended 28 February 2023

2023
£ 000

2022
£ 000

Profit for the year

2,406

3,390

Total comprehensive income for the year

2,406

3,390

 

The Sportsman Gun Centre Limited

Balance Sheet

28 February 2023

Note

2023
 £ 000

2022
 £ 000

Fixed assets

 

Intangible assets

12

100

200

Tangible assets

13

323

90

Investment property

14

2,202

2,202

 

2,625

2,492

Current assets

 

Stocks

15

9,432

7,881

Debtors

16

4,049

3,284

Cash at bank and in hand

17

5,508

6,352

 

18,989

17,517

Creditors: Amounts falling due within one year

18

(3,512)

(2,530)

Net current assets

 

15,477

14,987

Total assets less current liabilities

 

18,102

17,479

Creditors: Amounts falling due after more than one year

18

-

(1,755)

Provisions for liabilities

22

(123)

(84)

Net assets

 

17,979

15,640

Capital and reserves

 

Called up share capital

24

10

10

Profit and loss account

17,969

15,630

Total equity

 

17,979

15,640

Approved and authorised by the Board on 28 November 2023 and signed on its behalf by:
 

.........................................
G M Lamburn
Director

Company Registration Number: 07159237

 

The Sportsman Gun Centre Limited

Statement of Changes in Equity

Year Ended 28 February 2023

Share capital
£ 000

Profit and loss account
£ 000

Total
£ 000

At 1 March 2022

10

15,630

15,640

Profit for the year

-

2,406

2,406

Dividends

-

(67)

(67)

At 28 February 2023

10

17,969

17,979

Share capital
£ 000

Profit and loss account
£ 000

Total
£ 000

At 1 March 2021

10

12,302

12,312

Profit for the year

-

3,390

3,390

Dividends

-

(62)

(62)

At 28 February 2022

10

15,630

15,640

 

The Sportsman Gun Centre Limited

Statement of Cash Flows

Year Ended 28 February 2023

Note

2023
 £ 000

2022
 £ 000

Cash flows from operating activities

Profit for the year

 

2,406

3,390

Adjustments to cash flows from non-cash items

 

Depreciation and amortisation

5

145

118

Loss on disposal of tangible assets

1

-

Finance income

9

(155)

-

Finance costs

10

65

33

Corporation tax

11

607

850

 

3,069

4,391

Working capital adjustments

 

Increase in stocks

15

(1,551)

(568)

Increase in trade debtors

16

(765)

(802)

Decrease in trade creditors

18

(509)

(661)

Cash generated from operations

 

244

2,360

Corporation tax paid

 

(696)

(678)

Net cash flow from operating activities

 

(452)

1,682

Cash flows from investing activities

 

Interest received

 

155

-

Acquisitions of tangible assets

(279)

(39)

Net cash flows from investing activities

 

(124)

(39)

Cash flows from financing activities

 

Interest paid

 

(65)

(33)

Repayment of bank borrowing

 

(136)

(136)

Dividends paid

(67)

(62)

Net cash flows from financing activities

 

(268)

(231)

Net (decrease)/increase in cash and cash equivalents

 

(844)

1,412

Cash and cash equivalents at 1 March

 

6,352

4,940

Cash and cash equivalents at 28 February

 

5,508

6,352

 

The Sportsman Gun Centre Limited

Notes to the Financial Statements

Year Ended 28 February 2023

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Lowin House
Tregolls Road
Truro
Cornwall
TR1 2NA

The principal place of business is:
19 Apple Lane
Exeter
Devon
EX2 5GL

These financial statements were authorised for issue by the Board on 28 November 2023.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rate on the date when the fair value is re-measured.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

The company recognises revenue when available stock has been allocated against the order, the amount of revenue can be reliably measured, and it is probable that future economic benefits will flow to the entity.

 

The Sportsman Gun Centre Limited

Notes to the Financial Statements

Year Ended 28 February 2023

Tax

Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current corporation tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred tax is recognised on all timing differences at the balance sheet date unless indicated below. Timing differences are differences between taxable profits and the results as stated in the profit and loss account and other comprehensive income. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Leasehold improvements

10% Straight line

Fittings & Equipment

25% Reducing balance

Motor vehicles

25% Reducing balance

Other property. plant and equipment

25% Straight line

Investment property

Investment property is carried at fair value, derived from the current market prices for comparable real estate determined annually by external valuers. The valuers use observable market prices, adjusted if necessary for any difference in the nature, location or condition of the specific asset. Changes in fair value are recognised in profit or loss.

Goodwill

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class

Amortisation method and rate

Goodwill

10% Straight line

 

The Sportsman Gun Centre Limited

Notes to the Financial Statements

Year Ended 28 February 2023

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Financial instruments

Classification
The company holds the following financial instruments:

• Short term trade and other debtors and creditors;
• Bank loans; and
• Cash and bank balances.

All financial instruments are classified as basic.

 Recognition and measurement
The company has chosen to apply the recognition and measurement principles in FRS102.

Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument and derecognised when in the case of assets, the contractual rights to cash flows from the assets expire or substantially all the risks and rewards of ownership are transferred to another party, or in the case of liabilities, when the company’s obligations are discharged, expire or are cancelled.

Except for bank loans, such instruments are initially measured at transaction price, including transaction costs, and are subsequently carried at the undiscounted amount of the cash or other consideration expected to be paid or received, after taking account of impairment adjustments.

Bank loans are initially measured at transaction price, including transaction costs, and are subsequently carried at amortised cost using the effective interest method.

 

 

The Sportsman Gun Centre Limited

Notes to the Financial Statements

Year Ended 28 February 2023

3

Revenue

The analysis of the company's Turnover for the year by market is as follows:

2023
£ 000

2022
£ 000

UK

18,827

21,919

Europe

762

587

Rest of world

1,221

590

20,810

23,096

4

Other operating income

The analysis of the company's other operating income for the year is as follows:

2023
£ 000

2022
£ 000

Government grants

-

77

Lease rental income

136

122

136

199

5

Operating profit

Arrived at after charging/(crediting)

2023
£ 000

2022
£ 000

Depreciation expense

45

18

Amortisation expense

100

100

Foreign exchange gains

(8)

-

Loss on disposal of property, plant and equipment

1

-

6

Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

2023
£ 000

2022
£ 000

Wages and salaries

1,620

1,499

Social security costs

168

140

Pension costs, defined contribution scheme

112

30

1,900

1,669

 

The Sportsman Gun Centre Limited

Notes to the Financial Statements

Year Ended 28 February 2023

The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:

2023
No.

2022
No.

Administration and support

56

54

7

Directors' remuneration

The directors' remuneration for the year was as follows:

2023
 £ 000

2022
 £ 000

Remuneration (including benefits in kind)

163

162

Contributions paid to money purchase schemes

81

3

244

165

During the year the number of directors who were receiving benefits and share incentives was as follows:

2023
No.

2022
No.

Accruing benefits under money purchase pension scheme

2

2

In respect of the highest paid director:

2023
£ 000

2022
£ 000

Remuneration

82

81

Company contributions to money purchase pension schemes

80

1

8

Auditor's remuneration

2023
£ 000

2022
£ 000

Audit of the financial statements

8

8


 

9

Other interest receivable and similar income

2023
£ 000

2022
£ 000

Interest income on bank deposits

9

-

Other finance income

146

-

155

-

 

The Sportsman Gun Centre Limited

Notes to the Financial Statements

Year Ended 28 February 2023

10

Interest payable and similar expenses

2023
£ 000

2022
£ 000

Interest on bank overdrafts and borrowings

64

33

Interest expense on other finance liabilities

1

-

65

33

11

Taxation

Tax charged/(credited) in the profit and loss account

2023
 £ 000

2022
 £ 000

Current taxation

UK corporation tax

568

826

Deferred taxation

Arising from origination and reversal of timing differences

39

24

Tax expense in the income statement

607

850

The tax on profit before tax for the year is higher than the standard rate of corporation tax in the UK (2022 - higher than the standard rate of corporation tax in the UK) of 19% (2022 - 19%).

The differences are reconciled below:

2023
£ 000

2022
£ 000

Profit before tax

3,013

4,240

Corporation tax at standard rate

573

806

Effect of expense not deductible in determining taxable profit (tax loss)

28

25

Deferred tax expense relating to changes in tax rates or laws

-

20

Decrease from effect of tax incentives

(3)

(1)

Tax increase from effect of capital allowances and depreciation

9

-

Total tax charge

607

850

 

The Sportsman Gun Centre Limited

Notes to the Financial Statements

Year Ended 28 February 2023

Deferred tax

Deferred tax assets and liabilities

2023

Liability
£ 000

Capital allowances in excess of depreciation

123

123

2022

Liability
£ 000

Capital allowances in excess of depreciation

84

84

12

Intangible assets

Goodwill
 £ 000

Total
£ 000

Cost or valuation

At 1 March 2022

1,250

1,250

At 28 February 2023

1,250

1,250

Amortisation

At 1 March 2022

1,050

1,050

Amortisation charge

100

100

At 28 February 2023

1,150

1,150

Carrying amount

At 28 February 2023

100

100

At 28 February 2022

200

200

 

The Sportsman Gun Centre Limited

Notes to the Financial Statements

Year Ended 28 February 2023

13

Tangible assets

Leasehold improvements
£ 000

Furniture, fittings and equipment
 £ 000

Motor vehicles
 £ 000

Other property, plant and equipment
 £ 000

Total
£ 000

Cost or valuation

At 1 March 2022

23

373

20

-

416

Additions

60

15

55

149

279

Disposals

-

(4)

-

-

(4)

At 28 February 2023

83

384

75

149

691

Depreciation

At 1 March 2022

-

311

15

-

326

Charge for the year

-

16

9

21

46

Eliminated on disposal

-

(4)

-

-

(4)

At 28 February 2023

-

323

24

21

368

Carrying amount

At 28 February 2023

83

61

51

128

323

At 28 February 2022

23

62

5

-

90

 

The Sportsman Gun Centre Limited

Notes to the Financial Statements

Year Ended 28 February 2023

14

Investment properties

2023
£ 000

At 1 March 2022 and 28 February 2023

2,202

The investment property was purchased by the company on 30 November 2018. The purchase was at arm's length supported by an independent valuation prepared by suitably qualified valuers external to the company. In the opinion of the directors, at 28 February 2023 there is no material difference between the purchase cost and fair value.

15

Stocks

2023
£ 000

2022
£ 000

Finished goods and goods for resale

9,432

7,881

16

Debtors

2023
£ 000

2022
£ 000

Trade debtors

2,358

2,137

Other debtors

1,288

841

Prepayments

403

306

4,049

3,284

17

Cash and cash equivalents

2023
£ 000

2022
£ 000

Cash on hand

9

4

Cash at bank

5,499

6,348

5,508

6,352

 

The Sportsman Gun Centre Limited

Notes to the Financial Statements

Year Ended 28 February 2023

18

Creditors

Note

2023
£ 000

2022
£ 000

Due within one year

 

Loans and borrowings

19

2,400

1,033

Trade creditors

 

301

354

Corporation tax

 

283

411

Social security and other taxes

 

383

495

Other creditors

 

56

66

Accrued expenses

 

14

62

Deferred income

 

75

109

 

3,512

2,530

Due after one year

 

Loans and borrowings

19

-

1,755

19

Loans and borrowings

2023
£ 000

2022
£ 000

Current loans and borrowings

Bank borrowings

1,765

145

Director's loan

635

888

2,400

1,033

2023
£ 000

2022
£ 000

Non-current loans and borrowings

Bank borrowings

-

1,755

Bank borrowings

The bank loan is denominated in sterling with a nominal interest rate of base plus 1.5%, and the final instalment is due on 30 November 2023. The carrying amount at year end is £1,765,500 (2022 - £1,900,000).

The bank loan is secured by way of a fixed charge over the company's investment property and a debenture incorporating a fixed and floating charge over all of the company's assets.

Other borrowings
The director's loan is unsecured, interest free and repayable on demand.
 

 

The Sportsman Gun Centre Limited

Notes to the Financial Statements

Year Ended 28 February 2023

20

Reconciliation of net debt

At 1 March 2022

Cash flow

Other non cash changes

At 28 February 2023

£'000

£'000

£'000

£'000

Cash on hand

4

5

-

9

Cash at bank

6,348

(849)

-

5,499

Cash and cash equivalents

6,352

(844)

-

5,508

Bank loans less than one year

(134)

-

(1,631)

(1,765)

Director's loan less than one year

(888)

255

(2)

(635)

Bank loans more than one year

(1,902)

1,902

-

-

Net debt

3,428

1,313

(1,633)

3,108

21

Obligations under leases and hire purchase contracts

Operating leases - lessee

The total of future minimum lease payments is as follows:

2023
£ 000

2022
£ 000

Not later than one year

39

39

Later than one year and not later than five years

106

44

145

83

The amount of non-cancellable operating lease payments recognised as an expense during the year was £101,000 (2022 - £37,000).

Operating leases - lessor

The total of future minimum lease payments receivable is as follows:

2023
£ 000

2022
£ 000

Not later than one year

61

123

Later than one year and not later than five years

69

41

130

164

Total rents recognised as income in the period are £136,000 (2022 - £123,000).

 

The Sportsman Gun Centre Limited

Notes to the Financial Statements

Year Ended 28 February 2023

22

Provisions for liabilities

Deferred tax
£ 000

Total
£ 000

At 1 March 2022

84

84

Increase (decrease) in existing provisions

39

39

At 28 February 2023

123

123

23

Pension and other schemes

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £112,000 (2022 - £30,000).

24

Share capital

Allotted, called up and fully paid shares

 

2023

2022

 

No.

£

No.

£

Ordinary A of £100 each

95

9,500

95

9,500

Ordinary B of £100 each

5

500

5

500

 

100

10,000

100

10,000

25

Related party transactions

Transactions with directors

2023

At 1 March 2022
£ 000

Advances to director
£ 000

Repayments by director
£ 000

At 28 February 2023
£ 000

J B T Cattran

Interest free loan, repayable on demand

5

236

(150)

91

         

 

The Sportsman Gun Centre Limited

Notes to the Financial Statements

Year Ended 28 February 2023

2022

At 1 March 2021
£ 000

Advances to director
£ 000

Repayments by director
£ 000

At 28 February 2022
£ 000

J B T Cattran

Interest free loan, repayable on demand

45

20

(60)

5

         
       

 

J B T Cattran
(Director and shareholder)
J B T Cattran (JC) operates a loan account with the company. During the year £65,000 (2022 £60,000) of dividends were credited to this account. The company incurred costs of £236,000 (2022 £20,000) on behalf of JC which have been debited to this account and an amount of £85,000 (2022 £nil) was credited to this account. At the balance sheet date the amount due from JC was £91,000 (2022 £5,000).

G M Lamburn
(Director and shareholder)
G M Lamburn (GL) owns the freehold property from which the Exeter branch of the company operates. No rent was charged to the company in the year in this respect.

GL has provided a limited guarantee of £1,475,000 against the company's bank borrowings dated 26 May 2010.

GL utilises a director's loan account. During the year £2,000 (2022 £2,000) of dividends were credited to this account. The company incurred costs of £255,000 (2022 £109,000) on behalf of GL which have been debited to this account. At the balance sheet date the amount due to GL was £635,000 (2022 £888,000).

26

Parent and ultimate parent undertaking

The ultimate controlling party is G M Lamburn.