Company Registration No. 06865178 (England and Wales)
SYNERGY RETAIL SUPPORT LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
LB GROUP
The Octagon Suite E2
2nd Floor Middleborough
Colchester
Essex
CO1 1TG
SYNERGY RETAIL SUPPORT LTD
COMPANY INFORMATION
Directors
Mr G Rees
Mr N C Ferguson
(Appointed 16 September 2022)
Company number
06865178
Registered office
The Octagon Suite E2
2nd Floor Middleborough
Colchester
Essex
CO1 1TG
Auditor
LB Group (Colchester)
The Octagon Suite E2
2nd Floor Middleborough
Colchester
Essex
CO1 1TG
SYNERGY RETAIL SUPPORT LTD
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 7
Income statement
8
Statement of financial position
10
Statement of changes in equity
11
Statement of cash flows
12
Notes to the financial statements
13 - 23
SYNERGY RETAIL SUPPORT LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2023
- 1 -
The directors present the strategic report for the year ended 31 March 2023.
Review of the business
The company's principal activities are the provision of third-party warehousing, e-commerce fulfilment, returns management and value added services.
During the year, the company increased its gross profit margin to 32.40% (2022: 27.30%), an increase of 5.10% on the prior year. The company also saw growth in its net profit to £1,733k (2022: £1,668k), an increase of £65k or 3.90% on the prior year. The company has seen a migration of its customer base away from the traditional bricks and mortar businesses to online. The growth in its online customer base has been achieved through its growing reputation in e-commerce fulfilment expertise and investment in technology. The business saw an increase in e-commerce transactions during the pandemic which has continued into the current financial year.
Principal risks and uncertainties
The main risk to the company continues to be the general condition of the economy, in particular inflation and a shortage of the labour supply. The directors are confident that the company is well placed to deal with any issues as they arise, given the increased strength of the company's balance sheet.
Development and performance
The company's aim is to continue to achieve growth in terms of market share of the e-fulfilment supply chain sector.
The business will continue to develop its technology and processes to offer its customers innovative solutions to meet their needs at competitive prices.
The company is expanding its service offering in e-fulfilment and other specialist services. This is key to the company supporting its customers who have an omni channel retail presence.
Key performance indicators
Given the nature of the business, the company's directors are of the opinion that a more detailed analysis, using key performance indicators, is not necessary to understand the development, performance or position of the business.
Mr G Rees
Director
23 December 2023
SYNERGY RETAIL SUPPORT LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2023
- 2 -
The directors present their annual report and financial statements for the year ended 31 March 2023.
Results and dividends
The results for the year are set out on page 8.
Ordinary dividends were paid amounting to £9,412,659. The directors do not recommend payment of a further dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr G Rees
Mr N Demetriou
(Resigned 16 September 2022)
Mr N C Ferguson
(Appointed 16 September 2022)
Auditor
The auditor, LB Group (Colchester), is deemed to be reappointed under section 487(2) of the Companies Act 2006.
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.
On behalf of the board
Mr G Rees
Mr N C Ferguson
Director
Director
23 December 2023
SYNERGY RETAIL SUPPORT LTD
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2023
- 3 -
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;
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.
SYNERGY RETAIL SUPPORT LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SYNERGY RETAIL SUPPORT LTD
- 4 -
Opinion
We have audited the financial statements of Synergy Retail Support Ltd (the 'company') for the year ended 31 March 2023 which comprise the income statement, the statement of comprehensive income, the statement of financial position, 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 31 March 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.
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 other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the 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.
SYNERGY RETAIL SUPPORT LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SYNERGY RETAIL SUPPORT LTD
- 5 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of 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.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
SYNERGY RETAIL SUPPORT LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SYNERGY RETAIL SUPPORT LTD
- 6 -
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including, but not limited to, fraud and non-compliance with laws and regulations was as follows:
We focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation, data protection, anti-bribery, employment, environmental and health and safety legislation;
To address the risk of fraud through management bias and override of controls, we:
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
There are inherent limitations in our 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 enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
SYNERGY RETAIL SUPPORT LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SYNERGY RETAIL SUPPORT LTD
- 7 -
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
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.
Shaun Roberts (Senior Statutory Auditor)
For and on behalf of LB Group (Colchester)
23 December 2023
Colchester
Chartered Accountants
Statutory Auditor
SYNERGY RETAIL SUPPORT LTD
INCOME STATEMENT
FOR THE YEAR ENDED 31 MARCH 2023
- 8 -
2023
2022
Notes
£
£
Turnover
2
21,632,493
24,065,615
Cost of sales
(14,632,193)
(17,508,747)
Gross profit
7,000,300
6,556,868
Administrative expenses
(4,874,618)
(4,392,232)
Operating profit
3
2,125,682
2,164,636
Interest receivable and similar income
8
2,298
490
Interest payable and similar expenses
9
(326)
Profit before taxation
2,127,980
2,164,800
Tax on profit
10
(394,517)
(496,801)
Profit for the financial year
1,733,463
1,667,999
The income statement has been prepared on the basis that all operations are continuing operations.
SYNERGY RETAIL SUPPORT LTD
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2023
- 9 -
2023
2022
£
£
Profit for the year
1,733,463
1,667,999
Other comprehensive income
-
-
Total comprehensive income for the year
1,733,463
1,667,999
SYNERGY RETAIL SUPPORT LTD
STATEMENT OF FINANCIAL POSITION
AS AT
31 MARCH 2023
31 March 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
13
583,685
556,916
Current assets
Debtors
15
2,759,541
6,033,019
Cash at bank and in hand
1,926,156
8,529,289
4,685,697
14,562,308
Creditors: amounts falling due within one year
16
(2,370,148)
(4,552,370)
Net current assets
2,315,549
10,009,938
Total assets less current liabilities
2,899,234
10,566,854
Provisions for liabilities
Deferred tax liability
17
141,945
130,369
(141,945)
(130,369)
Net assets
2,757,289
10,436,485
Capital and reserves
Called up share capital
19
9,000
9,000
Capital redemption reserve
1,000
1,000
Profit and loss reserves
2,747,289
10,426,485
Total equity
2,757,289
10,436,485
The financial statements were approved by the board of directors and authorised for issue on 22 December 2023 and are signed on its behalf by:
Mr G Rees
Mr N C Ferguson
Director
Director
Company Registration No. 06865178
SYNERGY RETAIL SUPPORT LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023
- 11 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 April 2021
11,300
1,000
8,843,486
8,855,786
Year ended 31 March 2022:
Profit and total comprehensive income for the year
-
-
1,667,999
1,667,999
Dividends
11
-
-
(85,000)
(85,000)
Reduction of shares
19
(2,300)
-
(2,300)
Balance at 31 March 2022
9,000
1,000
10,426,485
10,436,485
Year ended 31 March 2023:
Profit and total comprehensive income for the year
-
-
1,733,463
1,733,463
Dividends
11
-
-
(9,412,659)
(9,412,659)
Balance at 31 March 2023
9,000
1,000
2,747,289
2,757,289
SYNERGY RETAIL SUPPORT LTD
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2023
- 12 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
24
1,958,661
2,731,849
Interest paid
(326)
Income taxes paid
(557,028)
(388,891)
Net cash inflow from operating activities
1,401,633
2,342,632
Investing activities
Purchase of tangible fixed assets
(198,768)
(133,792)
Proceeds from disposal of tangible fixed assets
1,321
15,516
Redemption of loans
1,603,042
36,387
Interest received
2,298
490
Net cash generated from/(used in) investing activities
1,407,893
(81,399)
Financing activities
Redemption of shares
(2,300)
Dividends paid
(9,412,659)
(85,000)
Net cash used in financing activities
(9,412,659)
(87,300)
Net (decrease)/increase in cash and cash equivalents
(6,603,133)
2,173,933
Cash and cash equivalents at beginning of year
8,529,289
6,355,356
Cash and cash equivalents at end of year
1,926,156
8,529,289
SYNERGY RETAIL SUPPORT LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
- 13 -
1
Accounting policies
Company information
Synergy Retail Support Ltd is a private company limited by shares incorporated in England and Wales. The registered office is The Octagon Suite E2, 2nd Floor Middleborough, Colchester, Essex, CO1 1TG.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
Atruet the time of approving the financial statements, the 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.
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:
Improvements to land and buildings
Straight line over 10 years
Plant and machinery
Straight line over 5 - 8 years
Fixtures & fittings
Straight line over 8 years
IT Equipment
Straight line over 5 years
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 and intangible 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.
1.6
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
SYNERGY RETAIL SUPPORT LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 14 -
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.
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. 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. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal 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.
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.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
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.
SYNERGY RETAIL SUPPORT LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 15 -
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.
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 income statement 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.
1.10
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.11
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.12
Leases
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.
2
Turnover and other revenue
An analysis of the company's turnover is as follows:
2023
2022
£
£
Turnover analysed by class of business
Provision of services
21,632,493
24,065,615
2023
2022
£
£
Other revenue
Interest income
2,298
490
SYNERGY RETAIL SUPPORT LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 16 -
3
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Depreciation of owned tangible fixed assets
170,700
156,855
(Profit)/loss on disposal of tangible fixed assets
(22)
14,872
Operating lease charges
1,023,488
933,777
4
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
19,250
17,500
For other services
All other non-audit services
7,350
11,638
5
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.
SYNERGY RETAIL SUPPORT LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 17 -
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Administrative
14
10
Distribution
54
53
Management
12
15
Total
80
78
Their aggregate remuneration comprised:
2023
2022
£
£
Wages and salaries
9,415,112
11,431,163
Pension costs
58,281
37,361
9,473,393
11,468,524
The total aggregate remuneration includes the remuneration for both employed and agency staff.
The total gross salaries paid to employed staff is £2,304,065 (2022: £2,286,270).
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
320,817
108,892
Remuneration disclosed above include the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
166,653
90,000
The only members of key management personnel during the current and prior years were the Directors.
Total directors remuneration includes £16,653 of estimated benefits in kind chargeable to income tax.
SYNERGY RETAIL SUPPORT LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 18 -
8
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
2,298
490
Investment income includes the following:
Interest on financial assets not measured at fair value through profit or loss
2,298
490
9
Interest payable and similar expenses
2023
2022
£
£
Other finance costs:
Interest on finance leases and hire purchase contracts
-
326
10
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
390,140
477,517
Adjustments in respect of prior periods
(7,199)
Total current tax
382,941
477,517
Deferred tax
Origination and reversal of timing differences
11,576
19,284
Total tax charge
394,517
496,801
SYNERGY RETAIL SUPPORT LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
10
Taxation
(Continued)
- 19 -
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:
2023
2022
£
£
Profit before taxation
2,127,980
2,164,800
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
404,316
411,312
Tax effect of expenses that are not deductible in determining taxable profit
32,919
68,913
Adjustments in respect of prior years
(7,199)
Permanent capital allowances in excess of depreciation
(47,095)
(2,708)
Deferred tax adjustments in respect of prior years
19,284
Origination of deferred tax
11,576
Taxation charge for the year
394,517
496,801
11
Dividends
2023
2022
£
£
Final paid
9,412,659
85,000
12
Intangible fixed assets
Goodwill
£
Cost
At 1 April 2022 and 31 March 2023
20,000
Amortisation
At 1 April 2022 and 31 March 2023
20,000
Carrying amount
At 31 March 2023
At 31 March 2022
SYNERGY RETAIL SUPPORT LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 20 -
13
Tangible fixed assets
Improvements to land and buildings
Plant and machinery
Fixtures & fittings
IT Equipment
Total
£
£
£
£
£
Cost
At 1 April 2022
43,866
819,493
84,106
392,449
1,339,914
Additions
89,925
40,548
68,295
198,768
Disposals
(1,321)
(1,321)
At 31 March 2023
43,866
909,418
124,654
459,423
1,537,361
Depreciation
At 1 April 2022
26,687
483,089
30,209
243,013
782,998
Depreciation charged in the year
4,627
95,419
11,705
58,949
170,700
Eliminated in respect of disposals
(22)
(22)
At 31 March 2023
31,314
578,508
41,914
301,940
953,676
Carrying amount
At 31 March 2023
12,552
330,910
82,740
157,483
583,685
At 31 March 2022
17,179
336,404
53,897
149,436
556,916
14
Financial instruments
2023
2022
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
2,383,671
5,576,543
Carrying amount of financial liabilities
Measured at amortised cost
1,826,237
3,037,864
15
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
1,921,091
3,349,762
Other debtors
359,880
2,124,081
Prepayments and accrued income
478,570
559,176
2,759,541
6,033,019
SYNERGY RETAIL SUPPORT LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 21 -
16
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
818,174
1,213,492
Corporation tax
217,084
917,612
Other taxation and social security
326,827
596,894
Other creditors
608,029
688,226
Accruals and deferred income
400,034
1,136,146
2,370,148
4,552,370
A Debenture dated 26 June 2009 containing a fixed and floating charge exists in favour of RBS Invoice Finance Limited over all monies due or to become due from the company to the chargee on any account whatsoever.
17
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
141,945
130,369
2023
Movements in the year:
£
Liability at 1 April 2022
130,369
Charge to profit or loss
11,576
Liability at 31 March 2023
141,945
The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.
18
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
58,281
37,361
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.
SYNERGY RETAIL SUPPORT LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 22 -
19
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
9,000
9,000
9,000
9,000
20
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
901,454
821,383
Between two and five years
1,655,070
2,065,725
2,556,524
2,887,108
21
Related party transactions
Transactions with related parties
During the year the company entered into no transactions with related parties. (2022:£0)
22
Directors' transactions
No guarantees have been given or received.
Description
% Rate
Opening balance
Amounts repaid
Closing balance
£
£
£
Directors' Loan Accounts
32.50
812,065
(812,065)
-
Directors' Loan Accounts
32.50
790,977
(790,977)
-
1,603,042
(1,603,042)
-
23
Ultimate controlling party
Synergy Retail Support Limited is a subsidiary of Synergy Retail Support Holdings Limited.
The results of Synergy Retail Support Limited are consolidated within the group accounts of Synergy Retail Support Holdings Limited. The registered office of Synergy Retail Support Holdings Limited is The Octagon Suite E2 2nd Floor, Middleborough, Colchester, Essex, United Kingdom, CO1 1TG and the financial statements of the group are available through Companies House for public inspection
The ultimate controlling company is BlueCompass Management Partners LLP.
SYNERGY RETAIL SUPPORT LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 23 -
24
Cash generated from operations
2023
2022
£
£
Profit for the year after tax
1,733,463
1,667,999
Adjustments for:
Taxation charged
394,517
496,801
Finance costs
326
Investment income
(2,298)
(490)
(Gain)/loss on disposal of tangible fixed assets
(22)
14,872
Depreciation and impairment of tangible fixed assets
170,700
156,855
Movements in working capital:
Decrease/(increase) in debtors
1,670,436
(938,352)
(Decrease)/increase in creditors
(2,008,135)
1,333,838
Cash generated from operations
1,958,661
2,731,849
25
Analysis of changes in net funds
1 April 2022
Cash flows
31 March 2023
£
£
£
Cash at bank and in hand
8,529,289
(6,603,133)
1,926,156
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