Company registration number 05316616 (England and Wales)
Sing Kee Group Limited
Consolidated Annual Report
and Financial Statements
for the year ended 31 August 2023
Sing Kee Group Limited
Company Information
Director
Q T Ly
Secretary
Q T Ly
Company number
05316616
Registered office
30 Cross Stamford Street
Leeds
West Yorkshire
LS7 1BA
Auditor
B M Howarth Ltd
West House
King Cross Road
Halifax
West Yorkshire
HX1 1EB
Bankers
HSBC Bank plc
33 Park Row
Leeds
West Yorkshire
LS1 1LD
Sing Kee Group Limited
Contents
Page
Strategic report
1
Director's report
2 - 3
Independent auditor's report
4 - 6
Group statement of comprehensive income
7
Group statement of financial position
8
Company statement of financial position
9
Group statement of changes in equity
10
Company statement of changes in equity
11
Group statement of cash flows
12
Notes to the financial statements
13 - 23
Sing Kee Group Limited
Strategic report
For the year ended 31 August 2023  
- 1 -

The director presents the strategic report for the year ended 31 August 2023.

Principal activities

The principal activity of the group is the sale of Chinese foods to the trade and the public. There have not been any changes in the group's principal activities in the year under review.

Business review

The director is pleased with the performance of the group for the year ended 31 August 2023. Turnover has increased by 13% to £41.4m and generated profits in line with his expectations.

Financial risks and uncertainties

Economic risk

Competition and threat to market share is a key risk to the group. These risks are expected to be mitigate through the groups wide range of customers, good relationships with long standing suppliers and tightly controlled overhead expenditure.

 

Credit risk

The group seeks to manage its credit risk by dealing with established customers in the industry. The group is partly financed by bank loans and so is exposed to interest rate fluctuations. Cash flow is managed to minimise the risk to the group.

 

Liquidity risk

The group seeks to manage liquidity risk by ensuring sufficient liquidity is available to meet foreseeable needs and to invest in cash assets safely and profitably.

 

Interest rate risk

The group's exposure is due to changes in interest rates. The group is partly financed by bank loans and is so exposed to interest fluctuations. Cashflow is managed to minimise the risk to the group.

 

Foreign currency risk

Foreign currency risk is mitigated by continually monitoring currency rate variances.

Key performance indicators

The key financial performance indicators are those that communicate the financial performance and strength of the company as a whole and are summarised below:

 

 

 

 

 

 

 

 

 

2023

 

2022

 

 

 

£

 

£

Turnover

 

 

41,382,345

 

36,650,598

Gross profit

 

 

4,158,122

 

3,353,066

Gross profit margin

 

 

10.05%

 

9.15%

Profit before taxation

 

 

788,839

 

1,066,473

Net assets

 

 

8,229,034

 

7,719,673

 

The group has performed well against its budgeted activities, despite the challenges faced within the global economy during the year ended 31 August 2023.

There have been no events since the balance sheet date that materially affect the company.

On behalf of the board

Q T Ly
Director
29 February 2024
Sing Kee Group Limited
Director's Report
for the year ended 31 August 2023
- 2 -

The director presents his annual report and financial statements for the year ended 31 August 2023.

Results and dividends

The group's results for the year are set out on page 7.

No ordinary dividends were paid. The director does not recommend payment of a final dividend.

Director

The director who held office during the year and up to the date of signature of the financial statements was as follows:

Q T Ly
Auditor

The auditor, B M Howarth Ltd, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Statement of director's responsibilities

The director is responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the director is required to:

 

 

The director is responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Strategic report

The truegroup has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the group's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the director's report.

Sing Kee Group Limited
Director's Report (continued)
for the year ended 31 August 2023
- 3 -
Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company 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 auditor of the company is aware of that information.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
Q T Ly
Director
29 February 2024
2024-02-28
Sing Kee Group Limited
Independent auditor's report
to the members of Sing Kee Group Limited
- 4 -
Opinion

We have audited the financial statements of Sing Kee Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 August 2023 which comprise the group statement of comprehensive income, the group statement of financial position, the company statement of financial position, the group statement of changes in equity, the company statement of changes in equity, the group 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:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent 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 director's 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 group's and parent 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 director with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The director is 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:

Sing Kee Group Limited
Independent auditor's report (continued)
to the members of Sing Kee Group Limited
- 5 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the director's 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:

Responsibilities of director

As explained more fully in the director's responsibilities statement, the director is 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 director determines 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 director is responsible for assessing the parent 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 director either intends to liquidate the parent company or to cease operations, or has 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.

Based on our understanding of the group and the sectors in which it operates, our audit work considers the risk of material misstatement on the financial statements as a result of non-compliance with laws and regulations, this includes fraud. These laws and regulations include, but are not limited to, those that relate to the form and content of the financial statements, such as the Company accounting policies, the financial reporting framework and the UK Companies Act 2006.

 

We evaluated management incentives and opportunities for manipulation of the financial statements and determined that the principal risks related to management bias in accounting estimates and understatement or overstatement of revenue. Our audit procedures included, but were not limited to:

 

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error.

 

There are inherent limitations in audit procedures, the further removed non compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.

Sing Kee Group Limited
Independent auditor's report (continued)
to the members of Sing Kee Group Limited
- 6 -

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.

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Charles R Moorby (Senior Statutory Auditor)
For and on behalf of B M Howarth Ltd
Chartered Accountants
Statutory Auditor
West House
King Cross Road
Halifax
West Yorkshire
HX1 1EB
29 February 2024
Sing Kee Group Limited
Group Statement of Comprehensive Income
for the year ended 31 August 2023
- 7 -
2023
2022
Notes
£
£
Turnover
3
41,382,345
36,650,598
Cost of sales
(37,224,223)
(33,297,532)
Gross profit
4,158,122
3,353,066
Administrative expenses
(3,345,618)
(2,790,715)
Other operating income
115,000
400,000
Operating profit
4
927,504
962,351
Interest receivable
7
1,037
733
Interest payable
8
(139,702)
(118,071)
Reversal of depreciation on freehold property
-
0
221,460
Profit before taxation
788,839
1,066,473
Tax on profit
9
(274,392)
(191,895)
Profit for the financial year
514,447
874,578
Other comprehensive income
Revaluation of tangible fixed assets
-
0
84,768
Tax relating to other comprehensive income
(5,086)
(16,106)
Total comprehensive income for the year
509,361
943,240
Profit and total comprehensive income for the financial year is all attributable to the owners of the parent company.

The income statement has been prepared on the basis that all operations are continuing operations.

Sing Kee Group Limited
Group Statement Of Financial Position
as at 31 August 2023
- 8 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
11
11,890,816
11,784,788
Current assets
Stocks
14
1,347,188
1,440,000
Debtors
15
2,936,463
3,410,670
Cash at bank and in hand
2,154,472
2,228,437
6,438,123
7,079,107
Creditors: amounts falling due within one year
16
(8,261,739)
(8,826,700)
Net current liabilities
(1,823,616)
(1,747,593)
Total assets less current liabilities
10,067,200
10,037,195
Creditors: amounts falling due after more than one year
17
(1,468,555)
(2,028,444)
Provisions for liabilities
18
(369,611)
(289,078)
Net assets
8,229,034
7,719,673
Capital and reserves
Called up share capital
20
367
367
Revaluation reserve
63,576
68,662
Profit and loss reserves
8,165,091
7,650,644
Total equity
8,229,034
7,719,673
The financial statements were approved and signed by the director and authorised for issue on 29 February 2024
29 February 2024
Q T Ly
Director
Sing Kee Group Limited
Company Statement Of Financial Position
as at 31 August 2023
31 August 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
11
10,863,984
10,728,349
Investments
12
200
200
10,864,184
10,728,549
Current assets
Debtors
15
446,658
348,438
Cash at bank and in hand
415,773
44,179
862,431
392,617
Creditors: amounts falling due within one year
16
(4,103,716)
(3,632,948)
Net current liabilities
(3,241,285)
(3,240,331)
Total assets less current liabilities
7,622,899
7,488,218
Creditors: amounts falling due after more than one year
17
(607,922)
(749,415)
Provisions for liabilities
18
(122,855)
(96,490)
Net assets
6,892,122
6,642,313
Capital and reserves
Called up share capital
20
367
367
Revaluation reserve
63,576
68,662
Profit and loss reserves
6,828,179
6,573,284
Total equity
6,892,122
6,642,313

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £254,895 (2022 - £531,959 profit).

 

These financial statements have been prepared in accordance with the provisions relating to small-sized companies.

The financial statements were approved and signed by the director and authorised for issue on 29 February 2024
29 February 2024
Q T Ly
Director
Company Registration No. 05316616
Sing Kee Group Limited
Group statement of changes in equity
for the year ended 31 August 2023
- 10 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 September 2021
367
-
0
6,934,524
6,934,891
Year ended 31 August 2022:
Profit for the year
-
-
874,578
874,578
Other comprehensive income:
Revaluation of tangible fixed assets
-
84,768
-
84,768
Tax relating to other comprehensive income
-
(16,106)
-
0
(16,106)
Total comprehensive income for the year
-
68,662
874,578
943,240
Dividends
10
-
-
(158,458)
(158,458)
Balance at 31 August 2022
367
68,662
7,650,644
7,719,673
Year ended 31 August 2023:
Profit for the year
-
-
514,447
514,447
Deferred tax on revaluation
-
(5,086)
-
0
(5,086)
Total comprehensive income for the year
-
(5,086)
514,447
509,361
Balance at 31 August 2023
367
63,576
8,165,091
8,229,034
Sing Kee Group Limited
Company statement of changes in equity
for the year ended 31 August 2023
- 11 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 September 2021
367
-
0
6,199,783
6,200,150
Year ended 31 August 2022:
Profit for the year
-
-
531,959
531,959
Other comprehensive income:
Revaluation of tangible fixed assets
-
84,768
-
84,768
Tax relating to other comprehensive income
-
(16,106)
-
0
(16,106)
Total comprehensive income for the year
-
68,662
531,959
600,621
Dividends
10
-
-
(158,458)
(158,458)
Balance at 31 August 2022
367
68,662
6,573,284
6,642,313
Year ended 31 August 2023:
Profit for the year
-
-
254,895
254,895
Deferred tax on revaluation
-
(5,086)
-
0
(5,086)
Total comprehensive income for the year
-
(5,086)
254,895
249,809
Balance at 31 August 2023
367
63,576
6,828,179
6,892,122
Sing Kee Group Limited
Group Statement of Cash Flows
for the year ended 31 August 2023
- 12 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
22
1,177,641
1,756,099
Interest paid
(139,702)
(118,071)
Income taxes paid
(134,396)
(179,455)
Net cash inflow from operating activities
903,543
1,458,573
Investing activities
Purchase of tangible fixed assets
(460,258)
(754,397)
Proceeds from disposal of tangible fixed assets
157,548
15,541
Interest received
1,037
733
Net cash used in investing activities
(301,673)
(738,123)
Financing activities
Repayment of bank loans
(701,883)
(652,047)
Payment of finance leases obligations
26,048
78,797
Dividends paid to equity shareholders
-
0
(158,458)
Net cash used in financing activities
(675,835)
(731,708)
Net decrease in cash and cash equivalents
(73,965)
(11,258)
Cash and cash equivalents at beginning of year
2,228,437
2,239,695
Cash and cash equivalents at end of year
2,154,472
2,228,437
Sing Kee Group Limited
Notes to the financial statements
for the year ended 31 August 2023
- 13 -
1
Accounting policies
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.

Basis of consolidation

The consolidated financial statements incorporate those of Sing Kee Group Limited and all of its subsidiaries (ie entities that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits). Subsidiaries acquired during the year are consolidated using the purchase method. Their results are incorporated from the date that control passes. The results of the subsidiaries which are disposed of during the year are excluded for the period to the date of disposal.

 

All financial statements are made up to 31 August 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Going concern

At the time of approving the financial statements, the director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.

Turnover

Turnover is recognised at the fair value of the consideration received for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on despatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Sing Kee Group Limited
Notes to the financial statements (continued)
for the year ended 31 August 2023
1
Accounting policies
(continued)
- 14 -
Tangible fixed assets

Tangible fixed assets, other than freehold properties, 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:

Plant and equipment
20% reducing balance
Fixtures and fittings
10 - 20% reducing balance
Motor vehicles
25% reducing balance

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the income statement.

Freehold properties whose fair value can be measured reliably are held under the revaluation model and are carried at a revalued amount, being their fair value at the date of valuation less any subsequent accumulated impairment losses. The fair value of the land and buildings is usually considered to be their market value.

 

Revaluation gains and losses are recognised in other comprehensive income and accumulated in equity, except to the extent that a revaluation gain reverses a revaluation loss previously recognised in profit or loss or a revaluation loss exceeds the accumulated revaluation gains recognised in equity; such gains and loss are recognised in profit or loss.

Fixed asset investments

Fixed asset investments in subsidiaries are stated at cost less provision for permanent diminution in value.

 

Investment properties are initially measured at cost and are subsequently included at fair value at each reporting date. Gains are recognised in the income statement.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

Stocks

Stocks are stated at the lower of cost and net realisable value.

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 group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

Sing Kee Group Limited
Notes to the financial statements (continued)
for the year ended 31 August 2023
1
Accounting policies
(continued)
- 15 -
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the statement of financial position as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the director is 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.

3
Turnover and other revenue

The total turnover of the company for the year has been derived from its principal activity wholly undertaken in the UK.

4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging:
Depreciation of owned tangible fixed assets
221,261
195,523
Loss on disposal of tangible fixed assets
(24,579)
8,956
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Group and company
7,500
7,500
Subsidiaries
12,000
12,000
19,500
19,500
Sing Kee Group Limited
Notes to the financial statements (continued)
for the year ended 31 August 2023
- 16 -
6
Employees

The average monthly number of persons (including directors) employed by the group and company during the year was:

2023
2022
Number
Number
Administration
25
11
Selling and distribution
39
26
64
37

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
1,411,456
870,831
Pension costs
14,942
11,601
1,426,398
882,432
7
Interest receivable
2023
2022
£
£
Interest income
Other interest income
1,037
733
8
Interest payable
2023
2022
£
£
Interest on bank overdrafts and loans
130,409
116,282
Interest on finance leases and hire purchase contracts
4,753
-
Other interest on overdue taxation
4,540
1,789
Total finance costs
139,702
118,071
Sing Kee Group Limited
Notes to the financial statements (continued)
for the year ended 31 August 2023
- 17 -
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
184,363
115,070
Adjustments in respect of prior periods
-
0
(2,818)
Total current tax
184,363
112,252
Deferred tax
Origination and reversal of timing differences
(10,967)
78,502
Changes in tax rates
85,714
-
0
Adjustment in respect of prior periods
14,582
1,141
Other adjustments
700
-
0
Total deferred tax
90,029
79,643
Total tax charge
274,392
191,895

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
788,839
1,066,473
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2022: 19.00%)
197,210
202,630
Tax effect of expenses that are not deductible in determining taxable profit
5,106
24,698
Tax effect of income not taxable in determining taxable profit
-
0
(139)
Effect of change in corporation tax rate
(28,775)
-
Permanent capital allowances in excess of depreciation
-
(6,605)
Depreciation on assets not qualifying for tax allowances
905
-
Under provided in prior years
-
0
14,582
Deferred tax adjustments in respect of prior years
15,282
(43,271)
Enhanced capital allowances
(1,050)
-
0
Effect on change in local deferred tax rate
85,714
-
0
Taxation charge
274,392
191,895
Sing Kee Group Limited
Notes to the financial statements (continued)
for the year ended 31 August 2023
9
Taxation
(continued)
- 18 -

In addition to the amount charged to the income statement, the following amounts relating to tax have been recognised directly in other comprehensive income:

2023
2022
£
£
Deferred tax arising on:
Revaluation of property
5,086
16,106
10
Dividends
2023
2022
Dividends paid
-
158,458
11
Tangible fixed assets
Group
Freehold land and buildings
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost or valuation
At 1 September 2022
10,255,000
988,428
1,246,605
353,701
12,843,734
Additions
178,454
24,592
30,345
226,867
460,258
Disposals
-
0
-
0
-
0
(148,954)
(148,954)
At 31 August 2023
10,433,454
1,013,020
1,276,950
431,614
13,155,038
Depreciation and impairment
At 1 September 2022
-
0
366,943
615,332
76,671
1,058,946
Depreciation charged in the year
-
0
99,683
69,854
51,724
221,261
Eliminated in respect of disposals
-
0
-
0
-
0
(15,985)
(15,985)
At 31 August 2023
-
0
466,626
685,186
112,410
1,264,222
Carrying amount
At 31 August 2023
10,433,454
546,394
591,764
319,204
11,890,816
At 31 August 2022
10,255,000
621,485
631,273
277,030
11,784,788
Sing Kee Group Limited
Notes to the financial statements (continued)
for the year ended 31 August 2023
11
Tangible fixed assets
(continued)
- 19 -
Company
Freehold land and buildings
Fixtures and fittings
Total
£
£
£
Cost or valuation
At 1 September 2022
10,255,000
950,912
11,205,912
Additions
178,454
-
0
178,454
At 31 August 2023
10,433,454
950,912
11,384,366
Depreciation and impairment
At 1 September 2022
-
0
477,563
477,563
Depreciation charged in the year
-
0
42,819
42,819
At 31 August 2023
-
0
520,382
520,382
Carrying amount
At 31 August 2023
10,433,454
430,530
10,863,984
At 31 August 2022
10,255,000
473,349
10,728,349
12
Fixed asset investments
Group
Company
2023
2022
2023
2022
£
£
£
£
Investments in subsidiaries
13
-
0
-
0
200
200
13
Subsidiaries

The company owns 100% of the ordinary share capital of the following subsidiaries at 31 August 2023, all companies are included in the consolidated accounts:

Name of undertaking
Sing Ko Ltd
PL (Import & Export) Ltd

Sing Ko Limited and PL (Import & Export) Limited are wholesalers of Chinese goods.

 

The Registered Office addresses of all of the company's subsidiaries is 30 Cross Stamford Street, Leeds, West Yorkshire, LS7 1BA.

Sing Kee Group Limited
Notes to the financial statements (continued)
for the year ended 31 August 2023
- 20 -
14
Stocks
Group
2023
2022
£
£
Raw materials and consumables
1,347,188
1,440,000
15
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
2,034,424
2,496,138
84,622
98,244
Amounts owed by connected companies
468,616
592,687
143,878
131,357
Other taxation and social security
40,397
107,461
-
-
Prepayments and accrued income
393,026
214,384
218,158
118,837
2,936,463
3,410,670
446,658
348,438
16
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
569,277
685,223
124,833
240,779
Obligations under finance leases
21,990
21,990
-
0
-
0
Trade creditors
6,650,824
7,202,678
130,883
305,214
Amounts due to group undertakings
-
0
-
0
3,182,706
2,448,212
Amounts due to connected companies
463,023
228,522
399,245
172,332
Corporation tax payable
191,978
127,429
27,125
4,927
Other taxation and social security
35,437
40,295
12,026
30,788
Other creditors
41,138
-
41,138
-
Accruals and deferred income
288,072
520,563
185,760
430,696
8,261,739
8,826,700
4,103,716
3,632,948

The bank loans are secured by fixed and floating charges on the properties to which they relate, along with corporate guarantees from the subsidiary Sing Ko Limited and connected company Sing Wong Limited.

Sing Kee Group Limited
Notes to the financial statements (continued)
for the year ended 31 August 2023
- 21 -
17
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
1,385,700
1,971,637
607,922
749,415
Obligations under finance leases
82,855
56,807
-
0
-
0
1,468,555
2,028,444
607,922
749,415

The bank loans are secured by fixed and floating charges on the properties to which they relate, along with corporate guarantees from the subsidiary Sing Ko Limited and connected company Sing Wong Limited.

18
Deferred taxation

Deferred tax assets and liabilities are offset where the group or company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Liabilities
Liabilities
2023
2022
Group
£
£
Accelerated capital allowances
348,419
272,972
Investment property
21,192
16,106
369,611
289,078
Liabilities
Liabilities
2023
2022
Company
£
£
Accelerated capital allowances
101,663
80,384
Investment property
21,192
16,106
122,855
96,490
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 September 2022
289,078
96,490
Charge/(credit) to profit or loss
47,657
(3,820)
Charge to other comprehensive income
5,086
5,086
Effect of change in tax rate - profit or loss
27,090
24,399
Other
700
700
Liability at 31 August 2023
369,611
122,855
Sing Kee Group Limited
Notes to the financial statements (continued)
for the year ended 31 August 2023
- 22 -
19
Retirement benefit schemes
2023
2022
£
£
Charge to profit or loss
14,942
11,601

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.

20
Share capital
Group and company
2023
2022
Ordinary share capital
£
£
Allotted, called up and fully paid equity shares
367 Ordinary of £1 each
367
367
21
Controlling interest

The group was controlled throughout the year by the director, Q T Ly, who owns 100% of the issued share capital.

22
Cash generated from group operations
2023
2022
£
£
Profit for the year after tax
514,447
874,578
Adjustments for:
Taxation charged
274,392
191,895
Finance costs
139,702
118,071
Investment income
(1,037)
(733)
(Gain)/loss on disposal of tangible fixed assets
(24,579)
8,956
Reversal of depreciation on freehold properties
-
0
(221,460)
Depreciation and impairment of tangible fixed assets
221,261
195,523
Movements in working capital:
Decrease in stocks
92,812
426,151
Decrease/(increase) in debtors
474,207
(751,351)
(Decrease)/increase in creditors
(513,564)
914,469
Cash generated from operations
1,177,641
1,756,099
Sing Kee Group Limited
Notes to the financial statements (continued)
for the year ended 31 August 2023
- 23 -
23
Analysis of changes in net funds/(debt) - group
1 September 2022
Cash flows
31 August 2023
£
£
£
Cash at bank and in hand
2,228,437
(73,965)
2,154,472
Borrowings excluding overdrafts
(2,656,860)
701,883
(1,954,977)
Obligations under finance leases
(78,797)
(26,048)
(104,845)
(507,220)
601,870
94,650
24
Company information

Sing Kee Group Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 30 Cross Stamford Street, Leeds, West Yorkshire, LS7 1BA.

 

The group consists of Sing Kee Group Limited and all of its subsidiaries.

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