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REGISTERED NUMBER: 04325478 (England and Wales)


















STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

AUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2023

FOR

INN EXPRESS LIMITED

INN EXPRESS LIMITED (REGISTERED NUMBER: 04325478)

CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023










Page

Company Information 1

Strategic Report 2

Report of the Directors 4

Report of the Independent Auditors 6

Statement of Income and Retained Earnings 9

Balance Sheet 10

Cash Flow Statement 11

Notes to the Cash Flow Statement 12

Notes to the Financial Statements 13


INN EXPRESS LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31 AUGUST 2023







DIRECTORS: Mr D A Hall
Mr G M Lawton
Mr R Hall
Mr P Wilkins
Mr A Lawton
Mr J Lewis
Mr J P Hathaway
Mr J Fairchild-Davies





REGISTERED OFFICE: Fulford House
Newbold Terrace
Leamington Spa
Warwickshire
CV32 4EA





REGISTERED NUMBER: 04325478 (England and Wales)





AUDITORS: TGFP
Chartered Accountants & Statutory Auditors
Fulford House
Newbold Terrace
Leamington Spa
Warwickshire
CV32 4EA

INN EXPRESS LIMITED (REGISTERED NUMBER: 04325478)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 AUGUST 2023


The directors present their strategic report for the year ended 31 August 2023.

REVIEW OF BUSINESS
The Directors are extremely pleased to present the accounts for the financial year end August 2023.

In the latest financial year, the turnover has increased to £29.1 million from £19.5 million in the prior year. The gross profit percentage also increased to 20.2% compared to 19.4% and this despite record levels of inflation and a cost-of-living crisis that could have really impacted the company.

Growth in trade continued as we invested significantly in our website which went live this year with direct order entry streamlining the order process for the customer, whilst still taking orders in the usual way by phone and email if preferred.

In April Inn Express purchased Independent Drinks Supplies Ltd, a small family-owned drinks distributor and wholesaler which was based near Wellingborough, with their 1.2-million-pound turnover adding to the growth of the business.

In January of 2023 we recruited a new salesperson in Central London adding another in June with that investment now beginning to yield results with their expanding customer base.

The Company has also invested heavily at our offices in Haselor, with two new additional spaces to house Purchasing and Distribution personnel, accommodating our growing administration staff in a comfortable and healthy environment, whilst also adding another warehouse unit of 6200 square feet to ensure we can hold sufficient stock as we grow.

Investment will continue in 2024.

We have updated our fleet of distribution vehicles to serve our expanding customer base and are in the process of replacing all the older vehicles whilst adding more new lorries and vans to ensure that growth can continue without disruption. As always, they will be fully liveried and staffed with our own uniformed distribution team.

As important as ever, the company remains a strong advocator of KPI's which are deployed to monitor and manage the daily operations, as well as provide the business with clear direction and benchmarks when assessing annual performance, growth, profitability, debts and returns on investments. Non-financial performance indicators are percentage measures for customer growth, movements in customer accounts and daily spend.

The companies KPI's during the year are:

Increase in turnover by 49.48% (2022 - 195.86%)
Increase in gross profit by 53.11% (2022 - 189.60%)
Increase in profit before taxation for the year 45.32% (2022 - 101.56%)

All of these will be monitored by our newly appointed Finance Manager again strengthening the senior management team in the most important of positions.

The Directors are very optimistic and in 2023/4 are looking to continue the year as it has started.

The Inn Express strength is our people, now circa 120, and their dedication and resolve to give of their best at all times is paramount in the success and development of the business.

I applaud their dedication.

I thank my fellow directors, department managers and all the staff for their support in providing such a stunning result for the past financial year.


INN EXPRESS LIMITED (REGISTERED NUMBER: 04325478)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 AUGUST 2023

PRINCIPAL RISKS AND UNCERTAINTIES
The principle risks identified by the directors are credit risk and liquidity risk. The company manages these risks by trading with creditworthy customers and financing its operations through retained profits. Further details regarding risks and measures taken to mitigate the impact is provided in the report of the directors.

ON BEHALF OF THE BOARD:





Mr D A Hall - Director


4 April 2024

INN EXPRESS LIMITED (REGISTERED NUMBER: 04325478)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 AUGUST 2023


The directors present their report with the financial statements of the company for the year ended 31 August 2023.

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of beverage distribution.

DIVIDENDS
Interim dividends were paid during the year ended 31 August 2023 as follows:

£   
Ordinary £1 shares 2,000
Preference nil
Ordinary A £1 shares 55,780
Ordinary B £1 shares 61,138
Ordinary C £1 shares 35,469
Ordinary D £1 shares 27,817
Ordinary E £1 shares 27,381
Ordinary F £1 shares 27,876
Ordinary G £1 shares 20,716
Ordinary H £1 shares 16,205
Ordinary I £1 shares 700
Ordinary J £1 shares 60,000
Ordinary K £1 shares 19,196
354,278

The total distribution of dividends for the year ended 31 August 2023 will be £354,277.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 September 2022 to the date of this report.

Mr D A Hall
Mr G M Lawton
Mr R Hall
Mr P Wilkins
Mr A Lawton
Mr J Lewis

Other changes in directors holding office are as follows:

Mr J P Hathaway and Mr J Fairchild-Davies were appointed as directors after 31 August 2023 but prior to the date of this report.

FINANCIAL INSTRUMENTS
The business' principal financial instruments comprise bank balances, trade debtors, other debtors, trade creditors and other creditors. The main purpose of these instruments is to finance the business' operations.

Debtors are managed in respect of credit risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits.

Creditors liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.


INN EXPRESS LIMITED (REGISTERED NUMBER: 04325478)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 AUGUST 2023

STRATEGIC REPORT
In accordance with section 414C(11) of the Companies Act 2006 (Strategic Report and Directors Report)
Regulations 2013, the company has prepared a Strategic Report, which includes information that would have previously been included in the Directors' Report.

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors 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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS
The auditors, TGFP, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





Mr D A Hall - Director


4 April 2024

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
INN EXPRESS LIMITED


Qualified Opinion
We have audited the financial statements of Inn Express Limited (the 'company') for the year ended 31 August 2023 which comprise the Statement of Income and Retained Earnings, Balance Sheet, Cash Flow Statement and Notes to the Cash Flow Statement, 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 31 August 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 qualified opinion
With respect to the prior year stock having a carrying amount of £1,262,900 the audit evidence available to us was limited because we did not observe the counting of the physical stock as at 31 August 2022, since that date was prior to our appointment as auditor of the company. Owing to the nature of the company’s records, we were unable to obtain sufficient appropriate audit evidence regarding the stock quantities by using other audit procedures.

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
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.

Other information
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors 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 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.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
INN EXPRESS LIMITED


Opinions on other matters 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 the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

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 Report of the Directors.

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 five, 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 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.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
INN EXPRESS LIMITED


Auditors' 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 a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We have considered how irregularities, including fraud, can be detected in this Business and how they may occur. This is not a cash intensive business and the Group holds no high value stock. However, we are aware there are always opportunities to manipulate the accounts, in particular by increasing or decreasing profits and window dressing by making the balance sheet look stronger than it may in reality be.

To mitigate these risks we have reviewed all Journals made during the year ensuring all are authorised and approved at the appropriate level. We have also reviewed any transactions outside of the business, and we have carried out a detailed analytical review of income and expenses highlighting any variances and obtaining reasons from Senior Management as to the reasons why. Materiality has been set at a level we feel more comfortable to include a greater range of testing to enable us to detect irregularities.

In respect of non- compliance with laws and regulations we have carried out the following enquiries:
Review minutes of meetings of those charged with governance.
Enquiry of management, those charged with governance and the Companies solicitors around actual and potential litigation and claims.
Reviewing the financial statements disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.

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 Report of the Auditors.

Other matters which we are required to address
The financial statements of the company for the year ended 31 August 2022 are unaudited.

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 a Report of the Auditors 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.




BENJAMIN R REYNOLDS (Senior Statutory Auditor)
for and on behalf of TGFP
Chartered Accountants & Statutory Auditors
Fulford House
Newbold Terrace
Leamington Spa
Warwickshire
CV32 4EA

4 April 2024

INN EXPRESS LIMITED (REGISTERED NUMBER: 04325478)

STATEMENT OF INCOME AND
RETAINED EARNINGS
FOR THE YEAR ENDED 31 AUGUST 2023

2023 2022
Notes £    £   

TURNOVER 29,082,289 19,455,100

Cost of sales 23,208,005 15,690,497
GROSS PROFIT 5,874,284 3,764,603

Administrative expenses 4,754,599 3,012,068
OPERATING PROFIT 4 1,119,685 752,535

Interest receivable and similar income 2,198 36
1,121,883 752,571

Interest payable and similar expenses 5 16,914 11,896
PROFIT BEFORE TAXATION 1,104,969 740,675

Tax on profit 6 311,174 145,011
PROFIT FOR THE FINANCIAL YEAR 793,795 595,664

Retained earnings at beginning of year 468,179 167,229

Dividends 7 (354,278 ) (294,714 )

RETAINED EARNINGS AT END OF
YEAR

907,696

468,179

INN EXPRESS LIMITED (REGISTERED NUMBER: 04325478)

BALANCE SHEET
31 AUGUST 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 8 - 207,326
Tangible assets 9 307,584 121,701
Investments 10 182,573 -
490,157 329,027

CURRENT ASSETS
Stocks 11 1,811,046 1,262,900
Debtors 12 3,431,002 2,430,050
Cash at bank and in hand 1,039,920 703,977
6,281,968 4,396,927
CREDITORS
Amounts falling due within one year 13 5,619,572 4,010,110
NET CURRENT ASSETS 662,396 386,817
TOTAL ASSETS LESS CURRENT
LIABILITIES

1,152,553

715,844

CREDITORS
Amounts falling due after more than one
year

14

(118,500

)

(187,500

)

PROVISIONS FOR LIABILITIES 19 (66,192 ) -
NET ASSETS 967,861 528,344

CAPITAL AND RESERVES
Called up and paid share capital 20 60,165 60,165
Retained earnings 21 907,696 468,179
SHAREHOLDERS' FUNDS 967,861 528,344

The financial statements were approved by the Board of Directors and authorised for issue on 4 April 2024 and were signed on its behalf by:





Mr D A Hall - Director


INN EXPRESS LIMITED (REGISTERED NUMBER: 04325478)

CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 AUGUST 2023

2023 2022
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 1,327,078 609,857
Interest paid (16,914 ) (11,896 )
Tax paid (141,762 ) (109,169 )
Net cash from operating activities 1,168,402 488,792

Cash flows from investing activities
Purchase of tangible fixed assets (235,807 ) (67,465 )
Purchase of fixed asset investments (182,573 ) -
Interest received 2,198 36
Net cash from investing activities (416,182 ) (67,429 )

Cash flows from financing activities
Loan repayments in year (62,000 ) (180,331 )
Equity dividends paid (354,277 ) (294,714 )
Net cash from financing activities (416,277 ) (475,045 )

Increase/(decrease) in cash and cash equivalents 335,943 (53,682 )
Cash and cash equivalents at
beginning of year

2

703,977

757,659

Cash and cash equivalents at end of
year

2

1,039,920

703,977

INN EXPRESS LIMITED (REGISTERED NUMBER: 04325478)

NOTES TO THE CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 AUGUST 2023


1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS
2023 2022
£    £   
Profit before taxation 1,104,969 740,675
Depreciation charges 257,248 66,438
Loss on disposal of fixed assets - 1,857
Finance costs 16,914 11,896
Finance income (2,198 ) (36 )
1,376,933 820,830
Increase in stocks (548,146 ) (216,013 )
Increase in trade and other debtors (1,000,952 ) (327,578 )
Increase in trade and other creditors 1,499,243 332,618
Cash generated from operations 1,327,078 609,857

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 August 2023
31.8.23 1.9.22
£    £   
Cash and cash equivalents 1,039,920 703,977
Year ended 31 August 2022
31.8.22 1.9.21
£    £   
Cash and cash equivalents 703,977 757,659


3. ANALYSIS OF CHANGES IN NET FUNDS

At 1.9.22 Cash flow At 31.8.23
£    £    £   
Net cash
Cash at bank and in hand 703,977 335,943 1,039,920
703,977 335,943 1,039,920
Debt
Debts falling due within 1 year (55,000 ) (7,000 ) (62,000 )
Debts falling due after 1 year (187,500 ) 69,000 (118,500 )
(242,500 ) 62,000 (180,500 )
Total 461,477 397,943 859,420

INN EXPRESS LIMITED (REGISTERED NUMBER: 04325478)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023


1. STATUTORY INFORMATION

Inn Express Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).


2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Preparation of consolidated financial statements
The financial statements contain information about Inn Express Limited as an individual company and do not contain consolidated financial information as the parent of a group. Under Section 405(2) the subsidiary undertaking has been excluded from consolidation as it's inclusion is not material for the purpose of giving a true and fair view.

Significant judgements and estimates
The preparation of financial statements in conformity with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the company's accounting policies. For the year under review there were no specific areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates had a material bearing on the financial statements.

Turnover
Turnover relates to the principal activity of the company and is for the provision of goods. Turnover is recognised upon delivery, when the risks and rewards of ownership have transferred to the customer. Turnover is shown net of discounts, value added tax and other sales taxes.

Goodwill
Goodwill, being amounts paid in connection with the acquisition of businesses in 2009, 2010 and 2020 is being amortised evenly over its estimated useful life of seven years.

Intangible assets
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Plant and machinery - 25% on reducing balance
Fixtures and fittings - 25% on reducing balance
Motor vehicles - 25% on reducing balance
Computer equipment - 25% on reducing balance

Investments in subsidiaries
Investments in subsidiary undertakings are recognised at cost.

INN EXPRESS LIMITED (REGISTERED NUMBER: 04325478)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 AUGUST 2023


2. ACCOUNTING POLICIES - continued

Stocks
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less cost to complete and sell. Cost is based on the cost of purchase on a first in, first out basis.

At each balance sheet date, stocks are assessed for impairment. If stock is 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.

Financial instruments
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.

Taxation
Taxation for the year comprises current tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Hire purchase and leasing commitments
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Trade debtors
Trade debtors are amounts owed from customers for services performed and goods sold in the ordinary course in business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised costs using the effective interest method, less provision for impairment. A provision for impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Trade creditors
Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

INN EXPRESS LIMITED (REGISTERED NUMBER: 04325478)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 AUGUST 2023


2. ACCOUNTING POLICIES - continued

Share capital
Ordinary shares are classed as equity. Equity instruments are measured at fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments.

3. EMPLOYEES AND DIRECTORS
2023 2022
£    £   
Wages and salaries 2,582,970 1,477,230
Social security costs 238,847 131,953
Other pension costs 71,220 31,300
2,893,037 1,640,483

The average number of employees during the year was as follows:
2023 2022

Sales 10 6
Administration 14 12
Management 5 5
Distribution 29 15
Nights 26 17
84 55

2023 2022
£    £   
Directors' remuneration 182,500 101,417
Directors' pension contributions to money purchase schemes 8,566 1,200

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 5 5

4. OPERATING PROFIT

The operating profit is stated after charging:

2023 2022
£    £   
Hire of plant and machinery 18,776 28,526
Other operating leases 227,475 146,055
Depreciation - owned assets 49,924 27,564
Loss on disposal of fixed assets - 1,857
Goodwill amortisation 207,326 38,874
Auditors' remuneration 9,350 -

INN EXPRESS LIMITED (REGISTERED NUMBER: 04325478)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 AUGUST 2023


5. INTEREST PAYABLE AND SIMILAR EXPENSES
2023 2022
£    £   
Bank interest - 404
Bank loan interest 12,035 10,672
HMRC interest 4,879 820
16,914 11,896

6. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2023 2022
£    £   
Current tax:
UK corporation tax 244,973 140,087
Over/under provision
in prior year 9 4,924
Total current tax 244,982 145,011

Deferred tax 66,192 -
Tax on profit 311,174 145,011

UK corporation tax has been charged at 21.52% .

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

2023 2022
£    £   
Profit before tax 1,104,969 740,675
Profit multiplied by the standard rate of corporation tax in the UK of
21.520% (2022 - 19%)

237,789

140,728

Effects of:
Expenses not deductible for tax purposes 5,028 1,039
Capital allowances in excess of depreciation - (1,680 )
Depreciation in excess of capital allowances 2,212 -
Adjustments to tax charge in respect of previous periods - 4,924
Rounding on rate (47 ) -
Deferred tax 66,192 -
Total tax charge 311,174 145,011

Legislation was announced to increase the rate of corporation tax to 25% with effect from 1 April 2023.

INN EXPRESS LIMITED (REGISTERED NUMBER: 04325478)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 AUGUST 2023


7. DIVIDENDS

Class:20232022
£   £   
Interim dividends paid
Ordinary 2,000-
Ordinary A55,78081,365
Ordinary B61,13848,750
Ordinary C35,46924,950
Ordinary D27,81719,220
Ordinary E27,38123,666
Ordinary F27,87623,818
Ordinary G20,71615.238
Ordinary H16,20513,846
Ordinary I70019,862
Ordinary J60,00012,000
Ordinary K19,19610,000
Ordinary L-2,000
354,278294,714

8. INTANGIBLE FIXED ASSETS
Goodwill
£   
COST
At 1 September 2022
and 31 August 2023 662,125
AMORTISATION
At 1 September 2022 454,799
Amortisation for year 207,326
At 31 August 2023 662,125
NET BOOK VALUE
At 31 August 2023 -
At 31 August 2022 207,326

INN EXPRESS LIMITED (REGISTERED NUMBER: 04325478)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 AUGUST 2023


9. TANGIBLE FIXED ASSETS
Fixtures
Plant and and Motor Computer
machinery fittings vehicles equipment Totals
£    £    £    £    £   
COST
At 1 September 2022 53,454 93,214 33,500 79,852 260,020
Additions 14,527 107,482 72,495 41,303 235,807
At 31 August 2023 67,981 200,696 105,995 121,155 495,827
DEPRECIATION
At 1 September 2022 33,234 62,103 2,094 40,888 138,319
Charge for year 6,442 14,465 14,211 14,806 49,924
At 31 August 2023 39,676 76,568 16,305 55,694 188,243
NET BOOK VALUE
At 31 August 2023 28,305 124,128 89,690 65,461 307,584
At 31 August 2022 20,220 31,111 31,406 38,964 121,701

10. FIXED ASSET INVESTMENTS
Shares in
group
undertakings
£   
COST
Additions 182,573
At 31 August 2023 182,573
NET BOOK VALUE
At 31 August 2023 182,573

The company's investments at the Balance Sheet date in the share capital of companies include the following:

Independent Drinks Supplies Limited
Registered office: Fulford House, Newbold Terrace, Leamington Spa, Warwickshire, CV32 4EA
Nature of business: Beverage distribution and retail
%
Class of shares: holding
Ordinary 100.00
31.3.23 31.12.21
£    £   
Aggregate capital and reserves 13,027 15,994
Profit for the period/year - 62,101

INN EXPRESS LIMITED (REGISTERED NUMBER: 04325478)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 AUGUST 2023


11. STOCKS
2023 2022
£    £   
Stocks 1,811,046 1,262,900

12. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade debtors 3,266,791 2,397,643
Other debtors 4,623 -
Prepayments and accrued income 159,588 32,407
3,431,002 2,430,050

Trade debtors amounting to £2,716,944 (2022 - £1,934,785) have been assigned to the Company's factors to secure advances amounting to £1,595,059 (2022 - £1,313,597) which are included in other creditors.

13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Bank loans and overdrafts (see note 15) 62,000 55,000
Trade creditors 3,304,534 1,996,709
Tax 244,946 141,726
Social security and other taxes 74,025 110,205
VAT 256,878 329,862
Other creditors 1,595,059 1,317,229
Pension due 13,706 -
Directors' current accounts 52 52
Accruals and deferred income 68,372 59,327
5,619,572 4,010,110

14. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
2023 2022
£    £   
Bank loans (see note 15) 118,500 187,500

15. LOANS

An analysis of the maturity of loans is given below:

2023 2022
£    £   
Amounts falling due within one year or on demand:
Bank loans 62,000 55,000

Amounts falling due between two and five years:
Bank loans - 1-5 years 118,500 187,500

INN EXPRESS LIMITED (REGISTERED NUMBER: 04325478)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 AUGUST 2023


16. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
2023 2022
£    £   
Within one year 11,033 20,205
Between one and five years 95,974 124,423
In more than five years 107,400 -
214,407 144,628

17. SECURED DEBTS

The following secured debts are included within creditors:

2023 2022
£    £   
Bank loans 180,500 242,500
Factor account 1,595,059 1,327,347
1,775,559 1,569,847

Aldermore Bank and Lloyds TSB Bank have fixed and floating charges over the assets of the Company.

18. FINANCIAL INSTRUMENTS

Categorisation of financial instruments:

Financial assets that are debt instruments measured at amortised cost £6,011,979 (2022 - £4,364,520)
Financial liabilities measured at amortised cost £5,194,326 (2022 - £3,615,817)

19. PROVISIONS FOR LIABILITIES
2023 2022
£    £   
Deferred tax 66,192 -

Deferred
tax
£   
Charge to Statement of Comprehensive Income during year 66,192
Balance at 31 August 2023 66,192

Deferred tax is calculated on accelerated capital allowances.

INN EXPRESS LIMITED (REGISTERED NUMBER: 04325478)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 AUGUST 2023


20. CALLED UP AND PAID SHARE CAPITAL

Allotted, issued and fully paid:

Number: Class: Nominal 2023 2022
value: £    £   
110 Ordinary £1 110 110
60,000 Preference £1 60,000 60,000
5 Ordinary A £1 5 5
5 Ordinary B £1 5 5
5 Ordinary C £1 5 5
5 Ordinary D £1 5 5
5 Ordinary E £1 5 5
5 Ordinary F £1 5 5
5 Ordinary G £1 5 5
5 Ordinary H £1 5 5
5 Ordinary I £1 5 5
5 Ordinary J £1 5 5
5 Ordinary K £1 5 5
5 Ordinary L £1 5 5
60,165 60,165

21. RESERVES

Share capital represents the number of shares issued at nominal price.

The profit and loss account represents accumulated comprehensive income for the year end and prior periods after deduction of dividends paid.

22. PENSION COMMITMENTS

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 £71,220 (2022 - £31,300).

Contributions totalling £13,706 (2022 - £3,642) were payable to the scheme at the end of the year and are included in creditors.

23. RELATED PARTY DISCLOSURES

Key management personnel comprises the directors of the company. The directors received remuneration in the year as disclosed in note 3.

24. ULTIMATE CONTROLLING PARTY

The company is under the control of the directors.