REGISTERED NUMBER: |
STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
AUDITED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 AUGUST 2023 |
FOR |
INN EXPRESS LIMITED |
REGISTERED NUMBER: |
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: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
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: |
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. |
Other changes in directors holding office are as follows: |
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: |
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. |
for and on behalf of |
Chartered Accountants & Statutory Auditors |
Fulford House |
Newbold Terrace |
Leamington Spa |
Warwickshire |
CV32 4EA |
INN EXPRESS LIMITED (REGISTERED NUMBER: 04325478) |
STATEMENT OF INCOME AND |
RETAINED EARNINGS |
FOR THE YEAR ENDED 31 AUGUST 2023 |
2023 | 2022 |
Notes | £ | £ |
TURNOVER |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
OPERATING PROFIT | 4 |
Interest receivable and similar income |
1,121,883 | 752,571 |
Interest payable and similar expenses | 5 |
PROFIT BEFORE TAXATION |
Tax on profit | 6 |
PROFIT FOR THE FINANCIAL YEAR |
Retained earnings at beginning of year |
Dividends | 7 | ( |
) | ( |
) |
RETAINED EARNINGS AT END OF YEAR |
INN EXPRESS LIMITED (REGISTERED NUMBER: 04325478) |
BALANCE SHEET |
31 AUGUST 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 8 |
Tangible assets | 9 |
Investments | 10 |
CURRENT ASSETS |
Stocks | 11 |
Debtors | 12 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 13 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
14 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 19 | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up and paid share capital | 20 |
Retained earnings | 21 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
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 |
Interest paid | ( |
) | ( |
) |
Tax paid | ( |
) | ( |
) |
Net cash from operating activities |
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Purchase of fixed asset investments | (182,573 | ) | - |
Interest received |
Net cash from investing activities | ( |
) | ( |
) |
Cash flows from financing activities |
Loan repayments in year | ( |
) | ( |
) |
Equity dividends paid | ( |
) | ( |
) |
Net cash from financing activities | ( |
) | ( |
) |
Increase/(decrease) in cash and cash equivalents | ( |
) |
Cash and cash equivalents at beginning of year |
2 |
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 |
Depreciation charges |
Loss on disposal of fixed assets |
Finance costs | 16,914 | 11,896 |
Finance income | (2,198 | ) | (36 | ) |
1,376,933 | 820,830 |
Increase in stocks | ( |
) | ( |
) |
Increase in trade and other debtors | ( |
) | ( |
) |
Increase in trade and other creditors |
Cash generated from operations |
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 | 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 |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
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 |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
Computer equipment | - |
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 |
Social security costs |
Other pension costs |
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 |
2023 | 2022 |
£ | £ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes |
4. | OPERATING PROFIT |
The operating profit is stated after charging: |
2023 | 2022 |
£ | £ |
Hire of plant and machinery |
Other operating leases |
Depreciation - owned assets |
Loss on disposal of fixed assets |
Goodwill amortisation |
Auditors' remuneration |
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 |
Bank loan interest |
HMRC interest |
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 |
Over/under provision |
in prior year | 9 | 4,924 |
Total current tax |
Deferred tax |
Tax on profit |
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 |
Profit multiplied by the standard rate of corporation tax in the UK of |
Effects of: |
Expenses not deductible for tax purposes |
Capital allowances in excess of depreciation | - | ( |
) |
Depreciation in excess of capital allowances | - |
Adjustments to tax charge in respect of previous periods |
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: | 2023 | 2022 |
£ | £ |
Interim dividends paid |
Ordinary | 2,000 | - |
Ordinary A | 55,780 | 81,365 |
Ordinary B | 61,138 | 48,750 |
Ordinary C | 35,469 | 24,950 |
Ordinary D | 27,817 | 19,220 |
Ordinary E | 27,381 | 23,666 |
Ordinary F | 27,876 | 23,818 |
Ordinary G | 20,716 | 15.238 |
Ordinary H | 16,205 | 13,846 |
Ordinary I | 700 | 19,862 |
Ordinary J | 60,000 | 12,000 |
Ordinary K | 19,196 | 10,000 |
Ordinary L | - | 2,000 |
354,278 | 294,714 |
8. | INTANGIBLE FIXED ASSETS |
Goodwill |
£ |
COST |
At 1 September 2022 |
and 31 August 2023 |
AMORTISATION |
At 1 September 2022 |
Amortisation for year |
At 31 August 2023 |
NET BOOK VALUE |
At 31 August 2023 |
At 31 August 2022 |
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 |
Additions |
At 31 August 2023 |
DEPRECIATION |
At 1 September 2022 |
Charge for year |
At 31 August 2023 |
NET BOOK VALUE |
At 31 August 2023 |
At 31 August 2022 |
10. | FIXED ASSET INVESTMENTS |
Shares in |
group |
undertakings |
£ |
COST |
Additions |
At 31 August 2023 |
NET BOOK VALUE |
At 31 August 2023 |
The company's investments at the Balance Sheet date in the share capital of companies include the following: |
Registered office: Fulford House, Newbold Terrace, Leamington Spa, Warwickshire, CV32 4EA |
Nature of business: |
% |
Class of shares: | holding |
£ | £ |
Aggregate capital and reserves |
Profit for the period/year |
INN EXPRESS LIMITED (REGISTERED NUMBER: 04325478) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 AUGUST 2023 |
11. | STOCKS |
2023 | 2022 |
£ | £ |
Stocks |
12. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Trade debtors |
Other debtors |
Prepayments and accrued income |
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) |
Trade creditors |
Tax |
Social security and other taxes |
VAT | 256,878 | 329,862 |
Other creditors |
Pension due | 13,706 | - |
Directors' current accounts | 52 | 52 |
Accruals and deferred income |
14. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2023 | 2022 |
£ | £ |
Bank loans (see note 15) |
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 |
Amounts falling due between two and five years: |
Bank loans - 1-5 years |
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 |
Between one and five years |
In more than five years |
17. | SECURED DEBTS |
The following secured debts are included within creditors: |
2023 | 2022 |
£ | £ |
Bank loans |
Factor account | 1,595,059 | 1,327,347 |
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 |
Balance at 31 August 2023 |
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. |