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Registered number: 01761459










CHARLIES STORES LIMITED










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2023

 
CHARLIES STORES LIMITED
 
 
COMPANY INFORMATION


Directors
C K Lloyd 
R G Watkin 
R A Lloyd 
R Holloway 
S E Oldham (resigned 16 August 2022)




Company secretary
Mrs H L Holloway



Registered number
01761459



Registered office
Unit 7
Offa's Dyke Business Park

Buttington

Welshpool

Powys

SY21 8SS




Independent auditors
WR Partners
Chartered Accountants & Statutory Auditors

Belmont House

Shrewsbury Business Park

Shrewsbury

Shropshire

SY2 6LG





 
CHARLIES STORES LIMITED
 

CONTENTS



Page
Strategic Report
 
1 - 5
Directors' Report
 
6 - 9
Independent Auditors' Report
 
10 - 13
Statement of Comprehensive Income
 
14
Balance Sheet
 
15 - 16
Statement of Changes in Equity
 
17
Statement of Cash Flows
 
18 - 19
Notes to the Financial Statements
 
20 - 38


 
CHARLIES STORES LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 JULY 2023

Introduction
 
The Directors present their strategic report together with the Directors’ report and audited financial statements of the company for the year ended 31 July 2023.
Principal activities
The principal activity of the company continues to be that of an independent family run retailer selling to customers through stores and online. Whilst the company has grown, the passion and values it was founded on remain the same; we only sell products that we would be happy to take home ourselves, and work hard to ensure they are fantastic value for money.

Business review
 
The results for the Company are as shown in the annexed financial statements. This year’s sales were £73.8m, an £1.5m (2%) increase on the prior year, driven by strong store sales and the development of our Groundcare business which has extended into sales and service of Agricultural machines. 
Stores turnover was increased compared to the prior year; an excellent result given the slow start to the year driven by factors such as low consumer confidence, the energy crisis and high cost inflation and interest rates.
This year the e-commerce operation continued to trade well against strong comparatives. Owing to the pressures in the market, we decided to curtail our marketing spend and instead focus on maximising profitability. Our e-commerce operation therefore decreased its sales by £4.5m (23%) to £15.4m. 
The Workshop, previously just our Groundcare division, expanded into Agricultural products and as such traded well and increased sales by £5.5m (70%) to £13.4m.
Several operating costs returned to pre-covid levels following the conclusion of the various reliefs available throughout the covid pandemic. Other notable increases in operating costs included the increased marketing spend which resulted in the strongest sales year on record, and increased carriage costs as a result of the success of the e-commerce business. The business’ other operating costs were well controlled and remained stable.
Despite these cost increases and reduced grants, we were able to achieve a profit after tax of £2.4m, down £1.8m (42%) from last year. 
Whilst this produced cash, a significant investment has been made in workshop stock over the last 12 months to support the higher sales targets and ensure availability of products. On the other hand, our retail-business warehouse stock has significantly decreased. Due to the investment in the workshop stock, our total inventory holding has increased by £4.7m (23.4%) to £24.6m on 31 July 2023. In addition, the Company purchased a warehouse during the year at a cost of circa £1.0m. We increased our bank borrowing to fund this business expansion but we did not need to take out any government backed loans or defer rent or VAT payments. We finished the year with a cashflow surplus as a result of this.
Our gross margin decreased by just under three and a half percentage points, from 33.9% in 2022 to 30.4% this year. Increased costs and the decision to hold prices to remain competitive have influenced this.
Page 1

 
CHARLIES STORES LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023

On the 1st August 2023, the trade and assets of our workshop operation have transferred to a new business, Charlies Ag and Turf Limited. Both Charlies Stores Limited and Charlies Ag and Turf Limited are now wholly owned subsidiaries of new company Charlies Stores Holdings Limited. These changes are important because the workshop operation sells unique products and services, has its own strategic aims and ambitions, as well as specific working capital, reporting, insurance and financing needs.
 
These specialised needs can be more effectively serviced by separating the Ag and Turf business into its own legal entity, and this change also provides us with the opportunity to introduce other operational improvements for the workshop.

Principal risks and uncertainties
 
In all business operations, risk management and process control are a priority, and the Board of Directors is ultimately responsible for considering major risks.
The following are key risks which can affect the company’s net income:
Decline in customer numbers
Charlies Stores is principally a retail company and as such subject to fluctuations in customer numbers. We endeavour to ensure customer retention by regularly updating our product lines each season and by offering well-known branded products at competitive prices. Wider economic factors including the expectation of a long period of higher interest rates in the UK will likely bring lower consumer spending and reduced consumer financial confidence which will play a large part in customer numbers and spending. To this end, Charlies aims not only to provide good value products but also to sell a wide range of essential and staple products to ensure a strong sales foundation. We expect to see increased pressure on our margin as we maintain competitive prices during the current cost of living crisis.
The company will continue to concentrate on its existing stores and online business and would only consider additional large format out of town stores if they were in the right position and at a realistic base rent. 
Foreign Exchange
The company is exposed to currency transaction risk in respect of the purchases it makes in US dollars and Euros. The risk is managed by monitoring markets and where it is considered appropriate, holding cash to transact in these currencies.
Interest Rates
The company has an overdraft and loan facilities and is therefore exposed to interest rate risk on these borrowings. The bank is currently satisfied with the company’s financial performance and the directors do not think that there is any risk of facilities being withdrawn. Sensitivity analysis has been performed by the company and we believe that we can continue to service our debt in the event of an interest rate rise.

Page 2

 
CHARLIES STORES LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023

Financial key performance indicators
 
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Other key performance indicators
 
The Company uses a range of KPIs to monitor and measure performance within the business on a regular basis, at both a top-level and division or store-specific level. The KPI’s reported below cover the whole business. The company’s KPIs cover diverse areas of the business such as wage efficiency, productivity, and energy efficiency, the latter of which has been reported in the Director’s Report.
ole5ffc.png

Directors' statement of compliance with duty to promote the success of the Company
 
The Board of Directors, in line with their duties under s172 of the Companies Act 2006, act in a way they consider would most likely be in the best interest of the Company taking into account the requirements of all stakeholders. Further information is included in the Directors’ Report.
Decision Making at the Board
All matters which are reserved for decision by the Directors are presented at Board meetings. Directors are briefed on any potential impacts and risks for our customers, employees and other stakeholders including our suppliers, the community and environment and how they are to be managed. The Directors take these factors into account before making a final decision which together they believe is in the best interests of the Company.
Stakeholders
Our key stakeholders are our employees, who are the heart of our purpose and work in service of our customers. We are focused on responding to the needs of, and building long term relationships with, our customers. Other key stakeholders are the producers and suppliers from whom we purchase goods and services, and the communities in which we operate.
Long term sustainability
We aim to make sufficient profits to sustain the Company’s commercial viability. This is balanced against the needs of our customers, employees and other stakeholders and the community to ensure we are conducting all our business relationships with integrity. The long-term sustainability of the Company is at the forefront of decision making, particularly in response to the challenging economic conditions in retail following the Coronavirus pandemic.
 
Page 3

 
CHARLIES STORES LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023

Employees
Our team members are fundamental to the delivery of our plan.  We aim to be a responsible employer in our approach to the pay and benefits our team members receive. The health, safety and wellbeing of our team members is one of our primary considerations in the way we do business, and the business joined the Retail Trust last year to further promote employee health and wellbeing and to further assist the local managers in supporting staff in this area. They supported our colleagues with wellbeing support, counselling services and a financial aid grant in the past 12 months.
The Company supports it employees to ensure they understand the Company’s objectives and goals and how they can assist the delivery of this. The Company invests in high levels of employee engagement to enable us to retain, develop and acquire the talent required to continue to grow and remain successful. The Company’s policy is to consult and discuss with employees at meetings those issues most likely to affect employees’ interests. Information on matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the operational, financial and economic factors affecting the Company’s performance.
Charlies Gender Pay Gap report can be accessed via our web site: www.charlies.co.uk.  As a Company we are committed to improving all diversity, not just diversity of gender.
Customers and suppliers
We recognise that our biggest exposure to Modern Slavery is in our product supply chain. Charlies Stores stocks predominately third-party brands, and last year we began requiring our suppliers to accept our Modern Slavery Policy at trading agreement stage, which states that they must provide employees with good working conditions, reasonable pay and to fully comply with all applicable laws and to provide evidence of factory audits and standards compliance.
Engagement with suppliers and customers is key to our success. We work closely with our supply chain and take the appropriate action, when necessary, to prevent involvement in modern slavery, corruption, bribery, and breaches of competition law.
Financial stakeholders
The Company seeks to make information available to financial stakeholders, including our relationship bank, as part of information provided about and by the Company.
Community and environment
The Company takes all reasonable steps to minimise any detrimental impact that its operations may have on the environment. Directors routinely assess the impact of the Company’s operations on the community and environment and wider social responsibilities, and in particular how we comply with environmental legislation, pursue waste saving opportunities and react promptly to local community concerns. 
As a Board of Directors, our intention is to behave responsibly and ensure that the management operate the business in a responsible manner, operating within the high standards of business conduct and good governance expected. The intention is to nurture our reputation, through the delivery of our objectives, that reflects our responsible behaviour.
 
Page 4

 
CHARLIES STORES LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023

Business conduct
The Company aims to conduct all its business relationships with integrity and courtesy, and scrupulously to honour every business agreement.


This report was approved by the board and signed on its behalf.




................................................
R A Lloyd
Director

Date: 5 April 2024

Page 5

 
CHARLIES STORES LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 JULY 2023

The Directors present their report and the financial statements for the year ended 31 July 2023.

Directors' responsibilities statement

The Directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.
 
Company law requires the Directors to prepare financial statements for each financial year. Under that law the Directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 for the Company's financial statements and then apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

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 to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

Results and dividends

The profit for the year, after taxation, amounted to £2,379,150 (2022 - £4,130,405).

The Directors have declared a dividend of £NIL (2022: £NIL).

Directors

The Directors who served during the year were:

C K Lloyd 
R G Watkin 
R A Lloyd 
R Holloway 
S E Oldham (resigned 16 August 2022)

Page 6

 
CHARLIES STORES LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023


Future developments

There will be a drive to maintain turnover and market share through 2023-24, as we continue to navigate a difficult economic climate. We will continue to focus on delivering excellent service and value, ensuring we get the basics right and pushing ahead with our e-commerce operation which is continuing to show good year on year growth and potential. There are no immediate plans to look for retail outlets to expand our bricks and mortar stores.
Disabled employees
It is our policy to give full and fair consideration to the employment of disabled persons in jobs suited to their individual circumstances and, as appropriate, to consider them for recruitment opportunities, career development and training. Where possible, arrangements are made for the continuing employment of employees who have become disabled whilst in our employment.

Engagement with employees

The Company is committed to the principle of equal opportunity in employment. Our policies for recruitment, selection, training, development and promotion are designed to ensure that no applicant or employee received less favourable treatment on the grounds of race, colour, nationality, ethnic or national origin, religion, political beliefs, disability, sex, gender or marital status. The business is committed to ensuring that all individuals are treated fairly, with respect and are valued. 
Employees are regularly consulted by local managers and kept informed of matters affecting them and the overall development of the Company.

Engagement with suppliers

Delivering our strategy requires strong mutually beneficial relationships with suppliers and customers. We continue to strengthen supplier relationships by obtaining supplier agreements signed by both parties before placing orders and to continually improve our products and customer service. 
Engagement with customers
We recognise that developing a strong understanding of our customers’ needs is critical for our business strategy. Meeting customers’ needs takes many forms, including for instance providing quality products at good value prices, and providing excellent customer service.
Engagement with others
We aim to be a responsible member of our community and minimise our impact on the environment. Charlies Stores engages with its local communities, local government, regulators, and others to ensure it fosters positive relationships with them

Page 7

 
CHARLIES STORES LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023


Greenhouse gas emissions, energy consumption and energy efficiency action

The Company’s greenhouse gas emissions and energy consumption are as follows:
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We have followed the 2019 HM Government Environmental Reporting Guidelines. We have also used the GHG Reporting Protocol – Corporate Standard and have used the 2022 and 2021 UK Government’s conversion factors for company reporting.
We closely monitor energy usage and ensure that infrastructure projects and the replacement of materials and systems consider energy efficiency. This year Charlies has continued installing LED lighting in place of older less efficient lighting types. In addition, we are required to comply with the Governments energy assessment scheme (Energy Savings Opportunity Scheme) and are in the process of having an energy audit to ensure our compliance with Phase III. We will use the output from this assessment to help inform energy-efficient decisions within the business.
The Company’s chosen intensity measurement ratios are total gross emissions in metric tonnes CO2e per employee, and total gross emissions in metric tonnes CO2e per £100,000 turnover:
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Page 8

 
CHARLIES STORES LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023


Disclosure of information to auditors

Each of the persons who are Directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the Director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

the Director has taken all the steps that ought to have been taken as a Director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Post balance sheet events

On the 1st August 2023, the trade and assets of our workshop operation have transferred to a new business, Charlies Ag and Turf Limited. Both Charlies Stores Limited and Charlies Ag and Turf Limited are now wholly owned subsidiaries of new company Charlies Stores Holdings Limited.

Auditors

The auditorsWR Partnerswill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf.
 




................................................
R A Lloyd
Director

Date: 5 April 2024

Page 9

 
CHARLIES STORES LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CHARLIES STORES LIMITED
 

Opinion


We have audited the financial statements of Charlies Stores Limited (the 'Company') for the year ended 31 July 2023, which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Cash Flows, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe 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 July 2023 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' 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 United Kingdom, including the Financial Reporting Council'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.


Page 10

 
CHARLIES STORES LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CHARLIES STORES LIMITED (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and  our Auditors' Report thereon.  The Directors are responsible for the other information contained within the Annual Report.  Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated.  If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves.  If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.


We have nothing to report in this regard.


Opinion 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.


We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:


adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of Directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Page 11

 
CHARLIES STORES LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CHARLIES STORES LIMITED (CONTINUED)


Responsibilities of directors
 

As explained more fully in the Directors' Responsibilities Statement set out on page 6, the Directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


In preparing the financial statements, the Directors are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.


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 an Auditors' 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.


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

The audit team obtained an understanding of the legal and regulatory frameworks that are applicable to the Company and determined that the most significant are those that relate to the reporting framework (FRS102 and the Companies Act 2006), the relevant tax compliance regulations, employment law, Health and Safety Regulations and the EU General Data Protection Regulation (GDPR). 
We understood how the Company are complying with these frameworks by making enquiries of management and those responsible for legal and compliance procedures. We also reviewed board minutes to identify any recorded instances of irregularity or non compliance that might have a material impact on the financial statements. 
We assessed the susceptibility of the Company's financial statements to material misstatement, including how fraud might occur by meeting with key management to understand where they considered there was susceptibility to fraud. Based on our understanding our procedures involved enquiries of management and those charged with governance, manual journal entry testing, cashbook reviews for large and unusual items and the challenge of significant accounting estimates used in preparing the financial statements


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


Page 12

 
CHARLIES STORES LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CHARLIES STORES LIMITED (CONTINUED)


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 2006Our 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 Auditors' 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.





John Fletcher BA FCA (Senior Statutory Auditor)
  
for and on behalf of
WR Partners
 
Chartered Accountants
Statutory Auditors
  
Belmont House
Shrewsbury Business Park
Shrewsbury
Shropshire
SY2 6LG

5 April 2024
Page 13

 
CHARLIES STORES LIMITED
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 JULY 2023

2023
2022
Note
£
£

  

Turnover
 4 
73,809,026
72,356,309

Cost of sales
  
(51,337,237)
(47,847,190)

Gross profit
  
22,471,789
24,509,119

Administrative expenses
  
(20,139,612)
(19,309,529)

Other operating income
 5 
1,081,286
52,348

Operating profit
 6 
3,413,463
5,251,938

Interest receivable and similar income
 10 
48
3

Interest payable and similar expenses
 11 
(317,091)
(89,827)

Profit before tax
  
3,096,420
5,162,114

Tax on profit
 12 
(717,270)
(1,031,709)

Profit for the financial year
  
2,379,150
4,130,405

There was no other comprehensive income for 2023 (2022:£NIL).

The notes on pages 20 to 38 form part of these financial statements.

Page 14

 
CHARLIES STORES LIMITED
REGISTERED NUMBER: 01761459

BALANCE SHEET
AS AT 31 JULY 2023

2023
2022
Note
£
£

Fixed assets
  

Tangible assets
 13 
14,337,878
13,445,380

Investments
 14 
1,000
1,000

  
14,338,878
13,446,380

Current assets
  

Stocks
 15 
24,619,011
19,942,243

Debtors: amounts falling due within one year
 16 
4,512,680
3,633,134

Cash at bank and in hand
 17 
3,402,151
2,176,512

  
32,533,842
25,751,889

Creditors: amounts falling due within one year
 18 
(13,704,864)
(10,852,442)

Net current assets
  
 
 
18,828,978
 
 
14,899,447

Total assets less current liabilities
  
33,167,856
28,345,827

Creditors: amounts falling due after more than one year
 19 
(5,897,122)
(3,566,101)

Provisions for liabilities
  

Deferred tax
 21 
(401,767)
(331,874)

Other provisions
 22 
(461,300)
(419,335)

  
 
 
(863,067)
 
 
(751,209)

Net assets
  
26,407,667
24,028,517

Page 15

 
CHARLIES STORES LIMITED
REGISTERED NUMBER: 01761459
    
BALANCE SHEET (CONTINUED)
AS AT 31 JULY 2023

2023
2022
Note
£
£

Capital and reserves
  

Called up share capital 
 23 
510
510

Profit and loss account
 24 
26,407,157
24,028,007

  
26,407,667
24,028,517


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




................................................
R A Lloyd
Director

Date: 5 April 2024

The notes on pages 20 to 38 form part of these financial statements.

Page 16

 
CHARLIES STORES LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JULY 2023


Called up share capital
Profit and loss account
Total equity

£
£
£

At 1 August 2021
510
19,897,602
19,898,112


Comprehensive income for the year

Profit for the year
-
4,130,405
4,130,405
Total comprehensive income for the year
-
4,130,405
4,130,405


Total transactions with owners
-
-
-


At 1 August 2022
510
24,028,007
24,028,517


Comprehensive income for the year

Profit for the year
-
2,379,150
2,379,150
Total comprehensive income for the year
-
2,379,150
2,379,150


Total transactions with owners
-
-
-


At 31 July 2023
510
26,407,157
26,407,667


The notes on pages 20 to 38 form part of these financial statements.

Page 17

 
CHARLIES STORES LIMITED
 

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 JULY 2023

2023
2022
£
£

Cash flows from operating activities

Profit for the financial year
2,379,150
4,130,405

Adjustments for:

Depreciation of tangible assets
864,963
853,504

(Gain)/Loss on disposal of tangible assets
16,460
(2,697)

Interest paid
317,091
89,827

Interest received
(48)
(3)

Taxation charge
717,270
1,031,709

(Increase) in stocks
(4,676,768)
(5,780,156)

(Increase) in debtors
(879,546)
(1,522,020)

Increase in creditors
2,761,816
2,119,542

Increase in provisions
41,965
1

Corporation tax (paid)
(657,718)
(1,575,007)

Net cash generated from operating activities

884,635
(654,895)


Cash flows from investing activities

Purchase of tangible fixed assets
(1,786,573)
(1,510,869)

Sale of tangible fixed assets
12,652
14,962

Interest received
48
3

HP interest paid
(728)
(1,947)

Net cash from investing activities

(1,774,601)
(1,497,851)
Page 18

 
CHARLIES STORES LIMITED
 

STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023


2023
2022

£
£



Cash flows from financing activities

New secured loans
2,656,028
-

Repayment of loans
(488,749)
(571,327)

Repayment of/new finance leases
264,689
(26,744)

Interest paid
(316,363)
(87,880)

Net cash used in financing activities
2,115,605
(685,951)

Net increase/(decrease) in cash and cash equivalents
1,225,639
(2,838,697)

Cash and cash equivalents at beginning of year
2,176,512
5,015,209

Cash and cash equivalents at the end of year
3,402,151
2,176,512


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
3,402,151
2,176,512

3,402,151
2,176,512


Page 19

 
CHARLIES STORES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023

1.


General information

The principal activity of the Company is that of the retail of general household goods. The Company operates in the UK and is a private company limited by shares and is incorporated and domiciled in the UK. The address of its registered office is Unit 7, Offa's Dyke Business Park, Buttington, Welshpool, Powys, SY21 8SS.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Going concern

After making enquiries, the Directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. The Company therefore continues to adopt the going concern basis in preparing its financial statements.

 
2.3

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Page 20

 
CHARLIES STORES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023

2.Accounting policies (continued)

 
2.4

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the Company has transferred the significant risks and rewards of ownership to the buyer;
the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

 
2.5

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

The Company has taken advantage of the optional exemption available on transition to FRS 102 which allows lease incentives on leases entered into before the date of transition to the standard 01 August 2021 to continue to be charged over the period to the first market rent review rather than the term of the lease.

 
2.6

Interest income

Interest income is recognised in profit or loss using the effective interest method.

Page 21

 
CHARLIES STORES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023

2.Accounting policies (continued)

 
2.7

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.8

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

 
2.9

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.

 
2.10

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

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

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Page 22

 
CHARLIES STORES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023

2.Accounting policies (continued)

 
2.11

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the methods detailed below.

Depreciation is provided on the following basis:

Freehold property
-
2%
on cost straight line
L/Term Leasehold Property
-
over the period of the lease
Plant & Machinery
-
25%
reducing balance
Motor Vehicles
-
25%
reducing balance
Fixtures & Fittings
-
30%
reducing balance and 2% on cost straight line
Computer Equipment
-
20%
on cost straight line
Improvements To Property
-
15%
reducing balance and 2% on cost straight line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.12

Valuation of investments

Investments in unlisted Company shares, whose market value can be reliably determined, are remeasured to market value at each balance sheet date. Gains and losses on remeasurement are recognised in the Statement of Comprehensive Income for the period. Where market value cannot be reliably determined, such investments are stated at historic cost less impairment.

 
2.13

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

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.

 
2.14

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

Page 23

 
CHARLIES STORES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023

2.Accounting policies (continued)

 
2.15

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Company's cash management.

 
2.16

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.17

Provisions for liabilities

Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Balance Sheet.

 
2.18

Financial instruments

The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of Comprehensive Income.

Page 24

 
CHARLIES STORES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023

2.Accounting policies (continued)


2.18
Financial instruments (continued)

For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the balance sheet date.

Financial assets and liabilities are offset and the net amount reported in the Balance Sheet when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.


3.


Judgements in applying accounting policies and key sources of estimation uncertainty

Estimates and judgements are continually evaluated and are based on historic experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
The Company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. In the opinion of the Directors there are no estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities within the next financial year.


4.


Turnover

The whole of the turnover is attributable to retailing general household goods.

All turnover arose within the United Kingdom.

Page 25

 
CHARLIES STORES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023

5.


Other operating income

2023
2022
£
£

Other operating income
312
11,348

Net rents receivable
138,055
41,000

Insurance claims receivable
942,919
-

1,081,286
52,348



6.


Operating profit

The operating profit is stated after charging:

2023
2022
£
£

Exchange differences
47,712
225,205

Other operating lease rentals
1,449,135
1,533,942

(Profit)/loss on sale of tangible assets
16,460
(2,697)


7.


Auditors' remuneration

During the year, the Company obtained the following services from the Company's auditors and their associates:


2023
2022
£
£

Fees payable to the Company's auditors and their associates for the audit of the Company's financial statements
17,700
15,600

Fees payable to the Company's auditors and their associates in respect of:

All non-audit services not included above
3,600
3,350
Page 26

 
CHARLIES STORES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023

8.


Employees

Staff costs, including Directors' remuneration, were as follows:


2023
2022
£
£

Wages and salaries
9,908,086
9,413,547

Social security costs
832,760
782,504

Cost of defined contribution scheme
290,495
269,706

11,031,341
10,465,757


The average monthly number of employees, including the Directors, during the year was as follows:


        2023
        2022
            No.
            No.







Administration
37
35



Retail & Distribution
409
393

446
428


9.


Directors' and Key Management Personnel's remuneration

2023
2022
£
£

Directors' emoluments
317,887
378,812

Company contributions to defined contribution pension schemes
25,096
33,068

342,983
411,880


During the year retirement benefits were accruing to 4 Directors (2022 - 4) in respect of defined contribution pension schemes.

The highest paid Director received remuneration of £82,458 (2022 - £79,280).

The value of the Company's contributions paid to a defined contribution pension scheme in respect of the highest paid Director amounted to £11,083 (2022 - £11,083).

The Directors are deemed to be the key management personnel of the company.

Page 27

 
CHARLIES STORES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023

10.


Interest receivable

2023
2022
£
£


Other interest receivable
48
3

48
3


11.


Interest payable and similar expenses

2023
2022
£
£


Bank interest payable
308,405
83,690

Finance leases and hire purchase contracts
728
1,947

Other interest payable
7,958
4,190

317,091
89,827


12.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
647,377
1,023,804


647,377
1,023,804


Total current tax
647,377
1,023,804

Deferred tax


Origination and reversal of timing differences
69,893
7,905

Total deferred tax
69,893
7,905


Taxation on profit on ordinary activities
717,270
1,031,709
Page 28

 
CHARLIES STORES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023
 
12.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is higher than (2022 - higher than) the standard rate of corporation tax in the UK of 21% (2022 - 19%). The differences are explained below:

2023
2022
£
£


Profit on ordinary activities before tax
3,096,420
5,162,114


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 21% (2022 - 19%)
650,248
980,802

Effects of:


Expenses not deductible for tax purposes
7,259
2,689

Differences in tax rates
56,130
50,316

Book profit on chargeable assets
3,457
(512)

Changes in provisions leading to an increase (decrease) in the tax charge
176
(1,586)

Total tax charge for the year
717,270
1,031,709


Factors that may affect future tax charges

From 1 April 2023, the main rate of Corporation Tax increased from 19% to 25% for companies in the United Kingdom with profits exceeding £250,000. As a result, deferred tax balances at 31 July 2023 have been calculated at 25%.

Page 29

 
CHARLIES STORES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023

13.


Tangible fixed assets





Freehold property
L/Term Leasehold Property
Plant & Machinery
Motor Vehicles
Fixtures & Fittings

£
£
£
£
£



Cost or valuation


At 1 August 2022
9,201,036
579,325
1,414,937
793,817
3,731,361


Additions
1,054,480
-
136,030
438,873
119,277


Disposals
(4,390)
(188,027)
(62,245)
(64,049)
(338,220)



At 31 July 2023

10,251,126
391,298
1,488,722
1,168,641
3,512,418



Depreciation


At 1 August 2022
1,585,853
305,676
912,081
513,606
2,471,291


Charge for the year on owned assets
188,981
23,354
110,184
109,030
145,092


Disposals
(3,056)
(188,027)
(51,240)
(53,982)
(332,775)



At 31 July 2023

1,771,778
141,003
971,025
568,654
2,283,608



Net book value



At 31 July 2023
8,479,348
250,295
517,697
599,987
1,228,810



At 31 July 2022
7,615,183
273,649
502,856
280,211
1,260,070
Page 30

 
CHARLIES STORES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023

           13.Tangible fixed assets (continued)


Computer Equipment
Other Fixed Assets
Total

£
£
£



Cost or valuation


At 1 August 2022
1,766,620
5,493,045
22,980,141


Additions
32,346
5,567
1,786,573


Disposals
(917,521)
(9,544)
(1,583,996)



At 31 July 2023

881,445
5,489,068
23,182,718



Depreciation


At 1 August 2022
1,497,046
2,249,208
9,534,761


Charge for the year on owned assets
119,648
168,674
864,963


Disposals
(916,260)
(9,544)
(1,554,884)



At 31 July 2023

700,434
2,408,338
8,844,840



Net book value



At 31 July 2023
181,011
3,080,730
14,337,878



At 31 July 2022
269,574
3,243,837
13,445,380

The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:


2023
2022
£
£



Computer Equipment
-
29,761

Plant and machinery
-
15,335

Motor vehicles
310,057
46,886

Furniture, fittings and equipment
-
33,799

Other fixed assets
-
1,761

310,057
127,542

Page 31

 
CHARLIES STORES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023

14.


Fixed asset investments





Unlisted Investments

£



Cost or valuation


At 1 August 2022
1,000



At 31 July 2023
1,000





15.


Stocks

2023
2022
£
£

Finished goods and goods for resale
24,619,011
19,942,243

24,619,011
19,942,243


Impairment losses included within the profit and loss account during the year were £125,000 (2022: £105,381).


16.


Debtors

2023
2022
£
£


Trade debtors
2,760,854
1,528,701

Other debtors
909,576
749,469

Prepayments and accrued income
842,250
1,354,964

4,512,680
3,633,134


Page 32

 
CHARLIES STORES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023

17.


Cash and cash equivalents

2023
2022
£
£

Cash at bank and in hand
3,402,151
2,176,512

3,402,151
2,176,512



18.


Creditors: Amounts falling due within one year

2023
2022
£
£

Bank loans
551,623
557,501

Trade creditors
8,531,759
7,233,710

Corporation tax
402,948
413,289

Other taxation and social security
1,416,008
1,124,103

Obligations under finance lease and hire purchase contracts
122,492
15,667

Other creditors
478,609
210,693

Accruals and deferred income
2,201,425
1,297,479

13,704,864
10,852,442


The following liabilities were secured:

2023
2022
£
£



Bank loans
551,623
557,501

Net obligations under finance lease and hire purchase contracts
122,492
15,667

674,115
573,168

Details of security provided:

The overdraft facility and bank loans are secured with a legal charge over the leasehold property and the following  freehold properties:
- Market Street and Back Lane, Newtown, Powys
- Unit 2, Dyffryn Enterprise Park, Newtown, Powys
- Coed-Y Dinas Farm, Welshpool, Powys
The interest rates charged on the above loans are disclosed within note 20.
Obligations under finance lease and hire purchase contracts are secured upon the assets to which they relate. 

Page 33

 
CHARLIES STORES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023

19.


Creditors: Amounts falling due after more than one year

2023
2022
£
£

Bank loans
5,735,509
3,562,352

Net obligations under finance leases and hire purchase contracts
161,613
3,749

5,897,122
3,566,101


The following liabilities were secured:

2023
2022
£
£



Bank loans
5,735,509
3,562,352

Net obligations under finance lease and hire purchase contracts
161,613
3,749

5,897,122
3,566,101

Details of security provided:

The overdraft facility and bank loans are secured with a legal charge over the leasehold property and the following leasehold properties freehold properties:
- Market Street and Back Lane, Newtown, Powys
- Unit 2, Dyffryn Enterprise Park, Newtown, Powys
- Coed-Y Dinas Farm, Welshpool, Powys
- Unit 7, Offa’s Dyke Business Park, Buttington, Welshpool, Powys
The interest rates charged on the above loans are disclosed within note 20. 
Obligations under finance lease and hire purchase contracts are secured upon the assets to which they relate.

Page 34

 
CHARLIES STORES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023

20.


Loans



2023
2022
£
£

Amounts falling due within one year

Bank loans
551,623
557,501


551,623
557,501

Amounts falling due 1-2 years

Bank loans
552,533
557,501


552,533
557,501

Amounts falling due 2-5 years

Bank loans
4,209,624
1,515,318


4,209,624
1,515,318

Amounts falling due after more than 5 years

Bank loans
973,352
1,489,533

973,352
1,489,533

6,287,132
4,119,853


There are two bank loans repayable monthly, with interest charged at 6.85% with final repayment dates of February 2026 and September 2030 respectively. 
There is a third bank loan which is also repayable monthly, with interest charged at 6.6% with a final repayment date of January 2026.
The fourth and final bank loan is repayable quarterly, with interest charged at 6% with a final repayment date of December 2024.
The bank loans are secured with a legal charge over the leasehold property and freehold properties held by the company. Further details of these properties can be found in note 19.
 

Page 35

 
CHARLIES STORES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023

21.


Deferred taxation




2023


£






At beginning of year
(331,874)


Charged to profit or loss
(69,893)



At end of year
(401,767)

The provision for deferred taxation is made up as follows:

2023
2022
£
£


Accelerated capital allowances
(398,853)
(333,033)

Short term timing differences
(2,914)
1,159

(401,767)
(331,874)


22.


Provisions




Dilapidation provision

£





At 1 August 2022
419,335


Charged to profit or loss
41,965



At 31 July 2023
461,300


23.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



500 (2022 - 500) Ordinary A shares of £1.00 each
500
500
10 (2022 - 10) Ordinary B shares of £1.00 each
10
10

510

510


Page 36

 
CHARLIES STORES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023

24.


Reserves

Profit & loss account

The profit and loss account represents accumulated undistributed retained profits since incorporation.

25.


Analysis of net debt





At 1 August 2022
Cash flows
New finance leases
At 31 July 2023
£

£

£

£

Cash at bank and in hand

2,176,512

1,228,899

-

3,405,411

Bank overdrafts

-

(3,260)

-

(3,260)

Debt due after 1 year

(3,562,352)

(2,173,157)

-

(5,735,509)

Debt due within 1 year

(562,676)

(255,765)

-

(818,441)

Finance leases

(19,416)

17,721

(282,410)

(284,105)


(1,967,932)
(1,185,562)
(282,410)
(3,435,904)


26.


Pension commitments

The Company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the Company in independently administered funds. The pension cost charge represents contributions payable by the Company to the funds and amounted to £290,465 (2022: £269,706). At the year end, accrued pension contributions amounted to £11,657 (2022: £10,818). There were no prepaid contributions.


27.


Commitments under operating leases

At 31 July 2023 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2023
2022
£
£


Not later than 1 year
1,387,783
1,495,783

Later than 1 year and not later than 5 years
5,551,132
5,983,132

Later than 5 years
9,728,871
12,088,654

16,667,786
19,567,569

Page 37

 
CHARLIES STORES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023

28.


Transactions with directors

During the year there were drawdowns by a director totalling £NIL (2022: £777,122), with repayments totalling £NIL (2022: £27,827). As at the balance sheet date there are amounts due from directors to the Company totalling £NIL (2022: £749,295). The purchase of a property from a director was used to settle the remaining balance of the loan account.
There is a balance within creditors of amounts owed to directors as a result of the property transfer of £263,632 (2022: £NIL). There is a balance included within creditors of other amounts owed to directors of £3,456 (2022: £5,175).


29.


Related party transactions

During the year the Company rented a storage unit in Newtown, owned by Mr C K Lloyd. Rent charged in the year amounted to £72,000 (2022: £108,000). 


30.


Post balance sheet events

The company has undergone a restructure creating two new companies, Charlies Stores Holdings Limited and Charlies Ag and Turf Limited. In August 2023, the trade and assets of the workshop operation were transferred from Charlies Stores Limited into Charlies Ag and Turf Limited. 
Charlies Stores Limited and Charlies Ag and Turf Limited are both wholly owned subsidiaries of Charlies Stores Holdings Limited. There has been no change to the ultimate controlling party. 


31.


Controlling party

The company was controlled throughout the year by Mr C K Lloyd by virtue of his majority shareholding in the company.

 
Page 38