Company registration number 03027841 (England and Wales)
BUNNY APPLIANCE WAREHOUSE LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023
BUNNY APPLIANCE WAREHOUSE LTD
COMPANY INFORMATION
Director
P J Bysouth-Kemp
Company number
03027841
Registered office
Units 1 & 2
Bunny Trading Estate
Gotham Lane
Bunny
Nottingham
NG11 6QJ
Auditor
UHY Hacker Young
14 Park Row
Nottingham
NG1 6GR
Business address
Units 1 & 2
Bunny Trading Estate
Gotham Lane
Bunny
Nottingham
NG11 6QJ
BUNNY APPLIANCE WAREHOUSE LTD
CONTENTS
Page
Strategic report
1
Director's report
2 - 3
Independent auditor's report
4 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Notes to the financial statements
11 - 22
BUNNY APPLIANCE WAREHOUSE LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 31 JULY 2023
- 1 -

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

Review of the business

The results for the year and financial position of the company are shown in the attached financial statements.

 

As shown in the company's profit and loss account, the company's turnover has decreased by 18% to £36,450,509 (2022 - £44,517,431).

 

Turnover has been impacted by inflation and a market slowdown, the company continues to be focused on profitability.

Principal risks and uncertainties

Financial risks are considered low because of strong profitability, a cash generative base and because the company is able to insure against material financial risks.

 

Liquidity risk is mitigated due to the company's strong cash flow and a good earnings visibility ensures that its margins are sufficient to exceed operating costs. The company does not have any external bank borrowings or other external financing.

 

The company is reliant on its main suppliers to supply the business with products at a competitive price. As the company operates in a competitive market, it is also at risk from competitors reducing their selling prices. The company mitigates this risk by continuing to strengthen relationships with key suppliers and thus to maintain a good supply of products.

 

Direct sales from manufacturer to customer have increased which represents an ongoing threat to business as an appliance wholesaler. With the world's reliance on electronic communication and the associated constant threat of a cyber-attack, the group continues to invest in improving systems and processors to mitigate against this threat.

Key performance indicators

The company's main key performance indicator is retaining the level of gross margin versus sales price. In the current year, gross margin has remained fairly consistent at 25.2% (2022 - 26.5%).

On behalf of the board

P J Bysouth-Kemp
Director
19 April 2024
BUNNY APPLIANCE WAREHOUSE LTD
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 JULY 2023
- 2 -

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

Principal activities

The principal activity of the company continued to be that of kitchen appliance sales.

Results and dividends

The results for the year are set out on page 8.

Ordinary dividends were paid amounting to £4,500,000 (2022 - £6,000,000). The director does not recommend payment of a further dividend.

Director

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

J Bysouth-Kemp
(Deceased 22 December 2023)
P J Bysouth-Kemp
Auditor

In accordance with the company's articles, a resolution proposing that UHY Hacker Young be reappointed as auditor of the company will be put at a General Meeting.

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 company and of the profit or loss of the company 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 company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. He is 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.

BUNNY APPLIANCE WAREHOUSE LTD
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 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 company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

On behalf of the board
P J Bysouth-Kemp
Director
19 April 2024
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF BUNNY APPLIANCE WAREHOUSE LTD
- 4 -
Opinion

We have audited the financial statements of Bunny Appliance Warehouse Ltd (the 'company') for the year ended 31 July 2023 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity 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 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 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.

INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF BUNNY APPLIANCE WAREHOUSE LTD
- 5 -

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:

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 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 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 company or to cease operations, or has no realistic alternative but to do so.

INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF BUNNY APPLIANCE WAREHOUSE LTD
- 6 -
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.

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.

 

Based on our understanding of the company and the industry in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to the acts by the Company, which were contrary to applicable laws and regulations including fraud, and we considered the extent to which noncompliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to inflated revenue, understatement of the stock adjustment in respect of rebates and overstatement of accrued rebate income.

 

Audit procedures performed included:

 

 

There are inherent limitations in the audit procedures described above and the further removed noncompliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

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.

INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF BUNNY APPLIANCE WAREHOUSE LTD
- 7 -

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.

Andrew Timms
Senior Statutory Auditor
For and on behalf of UHY Hacker Young
19 April 2024
Chartered Accountants
Statutory Auditor
BUNNY APPLIANCE WAREHOUSE LTD
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 JULY 2023
- 8 -
2023
2022
Notes
£
£
Turnover
3
36,450,509
44,517,431
Cost of sales
(27,256,794)
(32,699,129)
Gross profit
9,193,715
11,818,302
Distribution costs
(2,432,534)
(2,598,801)
Administrative expenses
(1,444,950)
(1,320,316)
Operating profit
4
5,316,231
7,899,185
Interest receivable and similar income
7
52,519
3,961
Profit before taxation
5,368,750
7,903,146
Tax on profit
8
(1,136,785)
(1,436,001)
Profit for the financial year
4,231,965
6,467,145

The profit and loss account has been prepared on the basis that all operations are continuing operations.

BUNNY APPLIANCE WAREHOUSE LTD
BALANCE SHEET
AS AT 31 JULY 2023
31 July 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
9
136,403
105,310
Investments
10
1
1
136,404
105,311
Current assets
Stocks
11
4,887,443
6,577,128
Debtors
12
1,064,313
921,519
Cash at bank and in hand
4,703,347
3,584,114
10,655,103
11,082,761
Creditors: amounts falling due within one year
13
(5,665,978)
(5,794,508)
Net current assets
4,989,125
5,288,253
Net assets
5,125,529
5,393,564
Capital and reserves
Called up share capital
16
1,001
1,001
Profit and loss reserves
5,124,528
5,392,563
Total equity
5,125,529
5,393,564
The financial statements were approved by the board of directors and authorised for issue on 19 April 2024 and are signed on its behalf by:
P J Bysouth-Kemp
Director
Company registration number 03027841 (England and Wales)
BUNNY APPLIANCE WAREHOUSE LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JULY 2023
- 10 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 August 2021
1,001
4,925,418
4,926,419
Year ended 31 July 2022:
Profit and total comprehensive income
-
6,467,145
6,467,145
Dividends
-
(6,000,000)
(6,000,000)
Balance at 31 July 2022
1,001
5,392,563
5,393,564
Year ended 31 July 2023:
Profit and total comprehensive income
-
4,231,965
4,231,965
Dividends
-
(4,500,000)
(4,500,000)
Balance at 31 July 2023
1,001
5,124,528
5,125,529
BUNNY APPLIANCE WAREHOUSE LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023
- 11 -
1
Accounting policies
Company information

Bunny Appliance Warehouse Ltd is a private company limited by shares incorporated in England and Wales. The registered office is Units 1 & 2, Bunny Trading Estate, Gotham Lane, Bunny, Nottingham, NG11 6QJ.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

 

 

The financial statements of the company are consolidated in the financial statements of Baw (Holdings) Limited. These consolidated financial statements are available from its registered office, Units 1&2, Bunny Trading Estate, Gotham Lane, Bunny, Nottingham, NG11 6QJ.

1.2
Going concern

Atruet 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.

BUNNY APPLIANCE WAREHOUSE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
1
Accounting policies
(Continued)
- 12 -
1.3
Turnover

Turnover is recognised to the extent that it is probable that the economic benefits will flow to the company and the turnover can be reliably measured. Turnover is measured at fair value of the consideration received or receivable excluding discounts, rebates, VAT and other sales taxes.

 

Sales of goods

Turnover from the sale of goods is recognised when all of the following conditions are satisfied:

1.4
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold land and buildings
Not depreciated
Plant and equipment
15% straight line
Fixtures and fittings
10%-15% straight line
Computers
3 years straight line
Motor vehicles
15% straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.5
Fixed asset investments

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

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

1.6
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

BUNNY APPLIANCE WAREHOUSE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
1
Accounting policies
(Continued)
- 13 -
1.7
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to sell. Cost comprises direct materials and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of replacement cost and cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.8
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.9
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally 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.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs. Financial assets classified as receivable within one year are not amortised.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price. Financial liabilities classified as payable within one year are not amortised.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. Trade creditors are recognised initially at transaction price.

BUNNY APPLIANCE WAREHOUSE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
1
Accounting policies
(Continued)
- 14 -
1.10
Equity instruments

Share capital issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on share capital are recognised as liabilities once they are no longer at the discretion of the company.

1.11
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. 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.

1.12
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

1.13
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.14
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

1.15
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

 

BUNNY APPLIANCE WAREHOUSE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 15 -
2
Judgements and key sources of estimation uncertainty

In the application of the company’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.

 

The estimates and assumptions that have a significant risk of causing material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below:

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Carrying value of stocks

The directors review the finished goods costs on a quarterly basis. The stock is then revalued to ensure it is recorded in the financial statements at the lower of cost and net realisable value. Any provision for impairment is recorded against the carrying value of stocks. The directors use their knowledge of market conditions, historical experiences and estimates of future events to assess future demand for the company's products and achievable selling prices.

Provisions

A provision is recognised when the company present legal or constructive obligation as a result of past events for which it is probable that an outflow of resources will be required to settle the obligation and the amount can be reliably measured.

 

Whether a present obligation is probable or not requires judgment. The nature and type of risks for these provisions differ and the directors' judgment is applied regarding the nature and extent of obligations in deciding if an outflow of resources is probable or not. External advice is sought where appropriate.

Rebates receivable

The company enters various rebate agreements with suppliers. Supplier rebate income affects the recorded value of cost of sales, trade creditors and stock. The amounts receivable under rebate agreements are often subject to negotiation after the balance sheet date. A number of agreements are non-coterminous with the company's financial year, requiring judgment over the level of future purchases. At the balance sheet date, the directors make judgments on the amount of rebate that will become due to the company under these agreements based upon prices, volumes and product mix.

BUNNY APPLIANCE WAREHOUSE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 16 -
3
Turnover and other revenue

The whole of turnover is attributable to the group's principal activity.

 

All turnover arose within the United Kingdom.

2023
2022
£
£
Other significant revenue
Interest income
52,519
3,961
4
Operating profit
2023
2022
Operating profit for the year is stated after charging:
£
£
Exchange (gains)/losses
-
0
1,430
Fees payable to the company's auditor for the audit of the company's financial statements
17,500
16,000
Depreciation of owned tangible fixed assets
25,981
17,756
Operating lease charges
207,777
174,013
5
Employees

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

2023
2022
Number
Number
Management
10
11
Administration
14
12
Distribution
36
37
Total
60
60
BUNNY APPLIANCE WAREHOUSE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
5
Employees
(Continued)
- 17 -

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
1,952,724
1,860,232
Social security costs
201,707
187,882
Pension costs
48,628
41,751
2,203,059
2,089,865
6
Director's remuneration
2023
2022
£
£
Remuneration for qualifying services
457,567
403,958
Company pension contributions to defined contribution schemes
12,544
7,884
470,111
411,842
Remuneration disclosed above include the following amounts paid to the highest paid director:
2023
£
Remuneration for qualifying services
172,506
Company pension contributions to defined contribution schemes
3,800
7
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
52,519
3,961
BUNNY APPLIANCE WAREHOUSE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 18 -
8
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
1,122,550
1,493,732
Adjustments in respect of prior periods
5,729
-
0
Total current tax
1,128,279
1,493,732
Deferred tax
Origination and reversal of timing differences
8,506
(57,731)
Total tax charge
1,136,785
1,436,001

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
5,368,750
7,903,146
Expected tax charge based on the standard rate of corporation tax in the UK of 21.01% (2022: 19.00%)
1,127,974
1,501,598
Tax effect of expenses that are not deductible in determining taxable profit
4,063
6,214
Adjustments in respect of prior years
(481)
-
0
Permanent capital allowances in excess of depreciation
(2,394)
(3,175)
Adjustments for deferred tax rates
1,247
3,444
Adjustment for prior year deferred tax
6,376
(72,080)
Taxation charge for the year
1,136,785
1,436,001
BUNNY APPLIANCE WAREHOUSE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 19 -
9
Tangible fixed assets
Freehold land and buildings
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 August 2022
18,509
51,404
132,167
50,013
25,500
277,593
Additions
-
0
-
0
25,314
31,760
-
0
57,074
At 31 July 2023
18,509
51,404
157,481
81,773
25,500
334,667
Depreciation and impairment
At 1 August 2022
-
0
46,708
63,258
43,192
19,125
172,283
Depreciation charged in the year
-
0
1,371
13,949
6,836
3,825
25,981
At 31 July 2023
-
0
48,079
77,207
50,028
22,950
198,264
Carrying amount
At 31 July 2023
18,509
3,325
80,274
31,745
2,550
136,403
At 31 July 2022
18,509
4,696
68,909
6,821
6,375
105,310
10
Fixed asset investments
2023
2022
£
£
Unlisted investments
1
1
11
Stocks
2023
2022
£
£
Finished goods and goods for resale
4,887,443
6,577,128

At the balance sheet date, the year end stock cost adjustment amounted to £838,715 (2022 - £837,091).

BUNNY APPLIANCE WAREHOUSE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 20 -
12
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
41,729
45,658
Other debtors
263,685
9,544
Prepayments and accrued income
721,618
821,170
1,027,032
876,372
Deferred tax asset (note 14)
37,281
45,147
1,064,313
921,519
13
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Deposits received on account
680,427
952,833
Trade creditors
2,231,842
2,239,634
Amounts owed to group undertakings
1,189,869
1,194,869
Corporation tax
484,375
693,214
Other taxation and social security
509,718
321,565
Other creditors
376,560
284,867
Accruals and deferred income
193,187
107,526
5,665,978
5,794,508
14
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Assets
Assets
2023
2022
Balances:
£
£
Accelerated capital allowances
(33,677)
(25,811)
Short term timing differences
70,958
70,958
37,281
45,147
BUNNY APPLIANCE WAREHOUSE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
14
Deferred taxation
(Continued)
- 21 -
2023
Movements in the year:
£
Asset at 1 August 2022
(45,147)
Charge to profit or loss
7,866
Asset at 31 July 2023
(37,281)

The deferred tax asset set out above is expected to reverse within 12 months and relates to accelerated capital allowances and other short term timing differences that are expected to mature within the same period.

15
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
48,628
41,751

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. Within other creditors, there is a defined pension scheme contribution due of £8,527 (2022 - £7,741).

16
Share capital
2023
2022
£
£
Ordinary share capital
Issued and fully paid
1,000 Ordinary 'A' shares of £1 each
1,000
1,000
1 Ordinary 'B' share of £1 each
1
1
1,001
1,001

Ordinary 'B' shares have no voting rights and shareholders cannot attend at any general meeting of the company. Ordinary 'A' shares are entitled to one vote per share.

BUNNY APPLIANCE WAREHOUSE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 22 -
17
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2023
2022
£
£
Within one year
17,499
529
18
Related party transactions

At the year end £33,018 (2022: £8,254) is included within other debtors and relates to costs paid by the company on behalf of the pension scheme, of which the directors of the company are trustees and beneficiaries. No interest is payable on this amount.

 

Pension expenses totalling £99,162 (2022: £97,226) were paid to directors in respect of the above pension scheme. This balance was repaid in full by the pension scheme.

 

At the year end £1,777 (2022: £nil) was owed to a company under common control. Rental costs paid to this company totalled £207,777 (2022: £174,013). Electricity recharges and service charge expenses of £44,821 (2022: £42,970) were also paid to this connected company in the year.

 

Payroll expenses totalling £80,560 (2022: £28,000) were paid to close family members of directors during the year.

 

Dividends of £4,500,000 (2022: £6,000,000) were paid to Bucks Investments Limited during the year.

19
Ultimate controlling party

The ultimate parent undertaking is BAW (Holdings) Limited, a company which is controlled by PJ Bysouth-Kemp. The company is both the largest and smallest undertaking for which group accounts are drawn up and of which the company is a member. Copies of the group accounts can be obtained from Units 1&2, Bunny Trading Estate, Gotham Lane, Bunny, Nottingham, NG11 6QJ.

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