REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTOR AND |
FINANCIAL STATEMENTS FOR THE PERIOD 1ST JUNE 2021 TO 28TH MAY 2022 |
FOR |
S&PB RETAIL LIMITED |
REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTOR AND |
FINANCIAL STATEMENTS FOR THE PERIOD 1ST JUNE 2021 TO 28TH MAY 2022 |
FOR |
S&PB RETAIL LIMITED |
S&PB RETAIL LIMITED (REGISTERED NUMBER: 12570881) |
CONTENTS OF THE FINANCIAL STATEMENTS |
for the Period 1st June 2021 to 28th May 2022 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Director | 4 |
Report of the Independent Auditors | 6 |
Profit and Loss Account | 10 |
Balance Sheet | 11 |
Statement of Changes in Equity | 12 |
Cash Flow Statement | 13 |
Notes to the Financial Statements | 14 |
S&PB RETAIL LIMITED |
COMPANY INFORMATION |
for the Period 1st June 2021 to 28th May 2022 |
DIRECTOR: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
100 Barbirolli Square |
Manchester |
M2 3BD |
S&PB RETAIL LIMITED (REGISTERED NUMBER: 12570881) |
STRATEGIC REPORT |
for the Period 1st June 2021 to 28th May 2022 |
The director presents her strategic report for the period 1st June 2021 to 28th May 2022. |
The company's principal activity is that of a retail bakery chain. The company operates a number of retail outlets in England and Wales, under the Sayers The Bakers and Poundbakery trading names which operates over 120 retail outlets. |
Sales for the year were £36.37m (2021: £26.07m) which is an increase from the previous 13 month period of 40%. |
The business continued to be affected in the early trading year by Covid Restrictions and consumer confidence as customers return to the high street, in particular office workers. Sales though were bolstered by online delivery sales, a new initiative to the business and now represent over 5% of weekly sales. |
Gross profit margin is in line with expectations at 58.58% (2021: 61.94%). The company made an operating loss of £509K. |
The company statement of financial position shows that the company had net liabilities of £947k (2021: £421k) and cash at bank and in hand of £279k (2021: £1.01m). |
PRINCIPAL RISKS AND UNCERTAINTIES |
The principle risk is drop in customer sales volume when passing on where necessary the cost of inflation when purchasing goods for resale and energy. |
Liquidity risk - Management control and monitor the company's cash flow on a regular basis, including forecasting future cash flows. |
The most recent forecasts show that the company is expecting to be able to continue to meet its liabilities as they fall due for the foreseeable future and to maintain positive levels of cash. |
KEY PERFORMANCE INDICATORS |
Period 1/6/21 to 28/5/22 |
Period 24/4/20 to 31/5/21 |
Turnover | 36,370,235 | 26,072,840 |
Gross margin | 21,305,633 | 16,149,144 |
Gross margin percentage | 58.58% | 61.94% |
Distribution costs | 19,495,974 | 17,168,009 |
Administrative costs | 2,607,615 | 1,962,422 |
- | Company level financials - sales, gross margin percentage and overheads |
- | Shop level financials - turnover, overheads, sales per hour and unsold product. |
- | Health and safety - accidents, both reportable and other, trend analysis |
- | Employment - staff turnover and absence |
- | Food safety - testing results, complaint monitoring and trend analysis. During the prior year the company attained BRC Global Standard for Food Safety Certification. |
S&PB RETAIL LIMITED (REGISTERED NUMBER: 12570881) |
STRATEGIC REPORT |
for the Period 1st June 2021 to 28th May 2022 |
FUTURE DEVELOPMENTS |
The company continues to focus on increasing sales, maintaining margins and reducing costs. |
Following Covid the retail high street has changed, and the company has identified a small number of sites, in particular with high rents that are no longer profitable. The company will relocate from these shops into more profitable locations during the next two years. |
Breakfast continues to be a growth area for the business and to capitalise on this opportunity we are extending opening hours and increasing our range to help maintain the growth of sales during the morning. |
Building on the strength of its related company supply of savoury products it will be rolling out an extended pies and pasty range to its top 20 shops. This will be combined with improvements to its coffee offer, merchandising and price communication via TV screens in the shops to drive customer spend. |
The company continues to make improvements to its back of house operations with the roll out of new IT solutions to increase efficiency and speed of information. |
ON BEHALF OF THE BOARD: |
S&PB RETAIL LIMITED (REGISTERED NUMBER: 12570881) |
REPORT OF THE DIRECTOR |
for the Period 1st June 2021 to 28th May 2022 |
The director presents her report with the financial statements of the company for the period 1st June 2021 to 28th May 2022. |
DIVIDENDS |
No dividends will be distributed for the period ended 28th May 2022. |
DIRECTOR |
The Company has agreed to indemnity its director against third party claims which may be brought against her and has put in place a director and officers insurance policy. |
DISCLOSURE IN THE STRATEGIC REPORT |
The Company has chosen, in accordance with Section 414 C(ii) of the Companies Act 2006, and as noted in this Directors' Report, to include certain matters in its Strategic Report that would otherwise be required to disclose in this Directors' Report, specifically in respect of the review of the business, future developments and key risks in the business. |
STATEMENT OF DIRECTOR'S RESPONSIBILITIES |
The director is responsible for preparing the Strategic Report, the Report of the Director 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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the director must not approve the financial statements unless she 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: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The 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 her to ensure that the financial statements comply with the Companies Act 2006. She 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. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the director is aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and she has taken all the steps that she ought to have taken as a director in order to make herself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
S&PB RETAIL LIMITED (REGISTERED NUMBER: 12570881) |
REPORT OF THE DIRECTOR |
for the Period 1st June 2021 to 28th May 2022 |
AUDITORS |
RSM UK Audit LLP resigned as auditors and Xeinadin Audit Limited has been appointed in succession. In accordance with section 485 of the Companies Act 2006, Xeinadin Audit Limited will be proposed for reappointment. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
S&PB RETAIL LIMITED |
Qualified opinion |
We have audited the financial statements of S&PB Retail Limited (the 'company') for the period ended 28th May 2022 which comprise the Profit and Loss Account, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion, except for the effects of the matter described in the basis for qualifying opinion section, the financial statements: |
- | give a true and fair view of the state of the company's affairs as at 28 May 2022 and of its loss for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for qualified opinion |
We were not appointed as auditor of the company until after 28 May 2022 and thus did not observe the counting of physical inventories at the end of the year. We were unable to satisfy ourselves by alternative means concerning the inventory quantities held at 28 May 2022, which are included in the balance sheet at £769,867, by using other audit procedures. Consequently we were unable to determine whether any adjustment to this amount was necessary. |
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 group 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 evidence we have obtained is sufficient and appropriate to provide a basis for our qualified opinion. |
Key audit matters |
Except for the matter described in the basis for qualified opinion section and the material uncertainly related to going concern detailed below, we have determined that there are no key audit matters to be communicated in our report. |
Material uncertainty related to going concern |
We draw attention to note 2 in the financial statements, which indicates that the company’s forecasts are sensitive to reasonably possible changes in consumer demand, costs and other possible cash outflows and that current economic conditions could impact on the future trading performance of the company and the company’s main supplier upon which the company relies. As stated in note 2, these events or conditions, along with the other matters as set forth in note 2, indicate that a material uncertainty exists that may cast significant doubt on the company’s ability to continue as a going concern. Our opinion is not modified in respect of this matter. |
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. |
Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
S&PB RETAIL LIMITED |
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 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 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. |
As described in the basis for qualified opinion section of our report, we were unable to satisfy ourselves concerning the inventory quantities of £769,867 held at 28 May 2022. We have concluded that where the other information refers to the inventory balance or related balances such as cost of sales, it may be materially misstated for the same reason. |
Opinions on other matters prescribed by the Companies Act 2006 |
Except for the possible effects of the matter described in the basis for qualified opinion section of our report, 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 Report of the Director. |
Except for the matter described in the basis for qualified opinion section of our report, 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. |
Arising solely from the limitation on the scope of our work relating to inventory, referred to above: |
- | we have not obtained all the information and explanations that we considered necessary for the purpose of our audit; and |
- | we were unable to determine whether adequate accounting records have been kept. |
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 director's remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
S&PB RETAIL LIMITED |
Responsibilities of director |
As explained more fully in the Statement of Director's Responsibilities set out on page four, 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 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. |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
Identifying and assessing potential risks related to irregularities |
In identifying and assessing risks of material misstatement in respect of irregularities including fraud and non-compliance with laws and regulations we have considered the following: |
- | The nature of the industry and sector, control environment and business performance including the company's remuneration policies, key drivers for directors remuneration, bonus levels and performance targets; |
- | Results of the enquiries of management about their own identification and assessment of the risks of irregularities; |
- | Any matters we have identified having obtained and reviewed the company's documentation of their policies and procedures relating to: |
- | identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of noncompliance; |
- | detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; |
- | the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations; |
- | the matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud. |
As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud is the timing of recognition of income, management override, going concern and stock valuation and existence. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. |
We also obtained an understanding of the legal and regulatory frameworks that the company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included UK Companies Act, environmental laws, employment law, health and safety, pensions legislation and tax legislation. |
In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company's ability to operate or to avoid a material penalty. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
S&PB RETAIL LIMITED |
Audit response to risks identified |
Our procedures to respond to risks identified included the following: |
- | reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements; |
- | enquiring of management concerning actual and potential litigation and claims; |
- | performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud; |
- | reading minutes of meetings of those charged with governance and reviewing correspondence with HMRC; and |
- | in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business. |
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit. |
No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity's controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK). |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
100 Barbirolli Square |
Manchester |
M2 3BD |
S&PB RETAIL LIMITED (REGISTERED NUMBER: 12570881) |
PROFIT AND LOSS ACCOUNT |
for the Period 1st June 2021 to 28th May 2022 |
Period | Period |
1/6/21 | 24/4/20 |
to | to |
28/5/22 | 31/5/21 |
Notes | £ | £ |
TURNOVER | 4 |
Cost of sales | ( |
) | ( |
) |
GROSS PROFIT |
Selling and distribution costs | ( |
) | ( |
) |
Administrative expenses | ( |
) | ( |
) |
(797,956 | ) | (2,725,773 | ) |
Other operating income |
OPERATING LOSS | 6 | ( |
) | ( |
) |
Exceptional items | 7 | ( |
) |
(509,149 | ) | (416,882 | ) |
Interest payable and similar expenses | 8 | ( |
) | ( |
) |
LOSS BEFORE TAXATION | ( |
) | ( |
) |
Tax on loss | 9 | ( |
) |
LOSS FOR THE FINANCIAL PERIOD | ( |
) | ( |
) |
S&PB RETAIL LIMITED (REGISTERED NUMBER: 12570881) |
BALANCE SHEET |
28th May 2022 |
2022 | 2021 |
Notes | £ | £ |
FIXED ASSETS |
Intangible assets | 10 |
Tangible assets | 11 |
CURRENT ASSETS |
Stocks | 12 |
Debtors | 13 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 14 | ( |
) | ( |
) |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES | ( |
) |
PROVISIONS FOR LIABILITIES | 16 | ( |
) | ( |
) |
NET LIABILITIES | ( |
) | ( |
) |
CAPITAL AND RESERVES |
Called up share capital | 17 |
Retained earnings | 18 | ( |
) | ( |
) |
SHAREHOLDERS' FUNDS | ( |
) | ( |
) |
The financial statements were approved by the director and authorised for issue on |
S&PB RETAIL LIMITED (REGISTERED NUMBER: 12570881) |
STATEMENT OF CHANGES IN EQUITY |
for the Period 1st June 2021 to 28th May 2022 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Deficit for the period | - | (420,739 | ) | (420,739 | ) |
Total comprehensive loss | - | ( |
) | ( |
) |
Issue of share capital | - |
Balance at 31st May 2021 | ( |
) | ( |
) |
Deficit for the period | - | (526,225 | ) | (526,225 | ) |
Total comprehensive loss | - | ( |
) | ( |
) |
Balance at 28th May 2022 | ( |
) | ( |
) |
S&PB RETAIL LIMITED (REGISTERED NUMBER: 12570881) |
CASH FLOW STATEMENT |
for the Period 1st June 2021 to 28th May 2022 |
Period | Period |
1/6/21 | 24/4/20 |
to | to |
28/5/22 | 31/5/21 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 21 | ( |
) |
Finance costs paid | (11,296 | ) | (9,637 | ) |
Net cash from operating activities | ( |
) |
Cash flows from investing activities |
Purchase of intangible fixed assets | ( |
) |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Sale of tangible fixed assets |
Purchase of business | - | (562,840 | ) |
Net cash from investing activities | ( |
) | ( |
) |
Cash flows from financing activities |
Share issue |
Net cash from financing activities |
(Decrease)/increase in cash and cash equivalents | ( |
) |
Cash and cash equivalents at beginning of period |
22 |
- |
Cash and cash equivalents at end of period | 22 | 274,599 | 1,095,669 |
S&PB RETAIL LIMITED (REGISTERED NUMBER: 12570881) |
NOTES TO THE FINANCIAL STATEMENTS |
for the Period 1st June 2021 to 28th May 2022 |
1. | STATUTORY INFORMATION |
S&PB Retail Limited is a private company limited by shares and is registered and incorporated in England and Wales, registration number 12570881. The registered office is 1 Calverley Road, Oulton, Leeds, LS26 8JD and the principal place of business is Gower Street, Farnworth, Bolton, BL4 7EY. |
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 £. |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Going concern |
The director has conducted a review of the following at the time of approving the financial statements by completing a week by week forecast for the next 52 weeks. |
The director is aware of certain material uncertainties which may cast doubt on the company's ability to continue as a going concern as follows: |
- | As the company relies on high street customer numbers and spend it could be impacted by the current economic conditions. The forecast is sensitive to reasonable possible consumer changes in consumer demand, costs and other possible cash out flows. This could have an impact on the future trading performance of the company. |
- | The forecasts assume that the company's relationship with its main supplier, who is a related party, will continue for the foreseeable future. The company relies on the supplier for providing general operational support, certain products, benefits from the dual sourcing ability with regards to certain contracts due to scale, and distribution vehicles. Should that relationship be terminated, demand may be interrupted, and costs may increase. Whilst the business is confident that the procurement of alternative sources could be achieved, there is no certainty that this could be done before available inventory and cash would be utilised. |
The presence of these conditions and the absence of alternative committed financing facilities, mean that a material uncertainty exists that may cast doubt on the company's ability to continue as a going concern. Notwithstanding this, the business is performing well against individual forecasts. The relationship with its main supplier remains strong and thus the director continues to adopt the going concern basis of accounting in preparing the financial statements. |
S&PB RETAIL LIMITED (REGISTERED NUMBER: 12570881) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Period 1st June 2021 to 28th May 2022 |
2. | ACCOUNTING POLICIES - continued |
Turnover |
Turnover from the sale of goods is recognised up to the balance sheet date, for goods provided up to that date. Turnover is measured net of value added taxation. Turnover principally consists of bakery products sold in branded retail stores. |
Intangible assets |
Intangible assets are represented by computer software which is capitalised where there is a clearly defined project, related expenditure is separately identifiable and it has been assessed for technical and commercial viability. |
Amortisation is calculated to write off the cost of the intangible assets over their useful life as follows: |
Computer software | - | 20% on cost |
The carrying amounts of the company's assets are reviewed for impairment when events or changes in circumstances indicate that the carrying amount of the fixed asset may not be recoverable. If any such indication exists, the asset's recoverable amount is estimated and an impairment provision made if appropriate. |
Tangible fixed assets |
Tangible fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses. |
Depreciation on tangible fixed assets is charged to the profit and loss so as to write off their value, over their estimated useful lives, using the following methods: |
Short-term leasehold | - | over the life of the lease |
Plant and equipment | - | 10% - 50% on cost |
Fixtures and fittings | - | 10% on cost |
At each balance sheet date, the company reviews the carrying amounts of its tangible fixed assets to determine whether there is any indication that any items of plant and equipment have suffered an impairment loss. If any such indication exists, the recoverable amount of an asset is estimated in order to determine the extent of the impairment loss, if any. Where it is not possible to estimate the recoverable amount of the asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs. |
If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. Impairment loss is recognised as an expense immediately. |
Government grants |
Government grants are recognised on the accrual model and are measured at fair value of the asset receivable. Grants are classified as relating either to other income or to assets. Grants related to other income are recognised in profit or loss over the period in which the related costs are recognised. Grants relating to assets are recognised over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income. |
S&PB RETAIL LIMITED (REGISTERED NUMBER: 12570881) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Period 1st June 2021 to 28th May 2022 |
2. | ACCOUNTING POLICIES - continued |
Stocks |
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. |
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. |
Taxation |
Taxation for the period comprises current and deferred tax. Tax is recognised in the profit and loss account, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the period end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The company makes payments into a defined contribution pension scheme. Contributions payable by the company into the pension scheme are charged to the profit or less in the period to which they relate. |
Trade and other debtors |
Trade and other debtors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest method, less impairment losses for bad and doubtful debts except where the effect of discounting would be immaterial. In such cases, the trade debtors and other debtors are stated at cost less impairment losses for bad and doubtful debts. |
Cash and cash equivalents |
Cash and cash equivalents comprise cash at bank and in hand, demand deposits with banks and other short-term highly liquid investments with original maturities of three months or less. |
S&PB RETAIL LIMITED (REGISTERED NUMBER: 12570881) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Period 1st June 2021 to 28th May 2022 |
2. | ACCOUNTING POLICIES - continued |
Trade and other creditors |
Trade and other creditors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest method unless the effect of discounting would be immaterial, in which case they are stated at cost. |
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. |
3. | CRITICAL ACCOUNTING 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 Director does not consider there to be any areas of estimation uncertainty. |
Critical judgements |
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements. |
Dilapidation provision |
In the comparative period a dilapidations provision was recognised based upon the expected discounted cost to make good the leased properties. The director reviewed the size and condition of each property in order to estimate the provision. The director has reviewed the dilapidation provision and does not believe that the entity has an obligation at the reporting date because of a past event, as such the provision has been fully released in the period. |
S&PB RETAIL LIMITED (REGISTERED NUMBER: 12570881) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Period 1st June 2021 to 28th May 2022 |
4. | TURNOVER |
The turnover and loss before taxation are attributable to the one principal activity of the company. |
An analysis of turnover by class of business is given below: |
Period | Period |
1/6/21 | 24/4/20 |
to | to |
28/5/22 | 31/5/21 |
£ | £ |
An analysis of turnover by geographical market is given below: |
Period | Period |
1/6/21 | 24/4/20 |
to | to |
28/5/22 | 31/5/21 |
£ | £ |
United Kingdom |
S&PB RETAIL LIMITED (REGISTERED NUMBER: 12570881) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Period 1st June 2021 to 28th May 2022 |
5. | EMPLOYEES AND DIRECTORS |
Period 1/6/21 to 28/5/22 | Period 24/4/20 to 31/5/21 |
£ | £ |
Wages and salaries | 11,535,051 | 11,027,822 |
Social security costs | 738,155 | 549,199 |
Other pension costs | 263,243 | 257,050 |
12,536,449 | 11,834,071 |
The average number of employees during the year was as follows: |
Period 1/6/21 to 28/5/22 | Period 24/4/20 to 31/5/21 |
Sales | 871 | 917 |
Administration | 23 | 30 |
Distribution | 53 | 47 |
947 | 994 |
During the year, a total of key management personnel compensation of £380,366 (2021 - £378,101) was paid. |
No remuneration was paid to the director during the period or the comparative period. |
6. | OPERATING LOSS |
The operating loss is stated after charging/(crediting): |
Period | Period |
1/6/21 | 24/4/20 |
to | to |
28/5/22 | 31/5/21 |
£ | £ |
Hire of plant and machinery |
Other operating leases |
Depreciation - owned assets |
Profit on disposal of fixed assets | ( |
) |
Computer software amortisation |
Auditors' remuneration |
Fees payable to the company's auditor in respect of tax compliance services |
Fees payable to the company's auditor in respect of other non-audit services |
Government grants | ( |
) | ( |
) |
7. | EXCEPTIONAL ITEMS |
In the period the company incurred costs of £Nil (2021: £255,514) in relation to legal costs to set up new leases. |
S&PB RETAIL LIMITED (REGISTERED NUMBER: 12570881) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Period 1st June 2021 to 28th May 2022 |
8. | INTEREST PAYABLE AND SIMILAR EXPENSES |
Period | Period |
1/6/21 | 24/4/20 |
to | to |
28/5/22 | 31/5/21 |
£ | £ |
Interest payable |
9. | TAXATION |
Analysis of the tax charge/(credit) |
The tax charge/(credit) on the loss for the period was as follows: |
Period | Period |
1/6/21 | 24/4/20 |
to | to |
28/5/22 | 31/5/21 |
£ | £ |
Deferred tax | ( |
) |
Tax on loss | ( |
) |
Reconciliation of total tax charge/(credit) included in profit and loss |
The tax assessed for the period is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
Period | Period |
1/6/21 | 24/4/20 |
to | to |
28/5/22 | 31/5/21 |
£ | £ |
Loss before tax | ( |
) | ( |
) |
Loss multiplied by the standard rate of corporation tax in the UK of (2021 - |
( |
) |
( |
) |
Effects of: |
Expenses not deductible for tax purposes |
Fixed asset differences | - | (2,092 | ) |
Additional deduction for land remediation expenditure | (301 | ) | (304 | ) |
Tax at marginal rate | - | (1,387 | ) |
Tax on losses carried forward | 102,943 | - |
Total tax charge/(credit) | 5,780 | (5,780 | ) |
In the budget on 3 March 2021, the UK Government announced an increase in the main UK corporation tax rate from 19% to 25% with effect from 1 April 2023. The change in rate was substantively enacted on 24 May 2021. Deferred tax has been calculated at 25% which was the tax rate substantively enacted at 31 May 2021. |
S&PB RETAIL LIMITED (REGISTERED NUMBER: 12570881) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Period 1st June 2021 to 28th May 2022 |
10. | INTANGIBLE FIXED ASSETS |
Computer |
software |
£ |
COST |
Additions |
At 28th May 2022 |
AMORTISATION |
Amortisation for period |
At 28th May 2022 |
NET BOOK VALUE |
At 28th May 2022 |
11. | TANGIBLE FIXED ASSETS |
Fixtures |
Short | Plant and | and |
leasehold | machinery | fittings | Totals |
£ | £ | £ | £ |
COST |
At 1st June 2021 |
Additions |
Disposals | ( |
) | ( |
) |
Released | ( |
) | ( |
) |
At 28th May 2022 |
DEPRECIATION |
At 1st June 2021 |
Charge for period |
Eliminated on disposal | ( |
) | ( |
) |
At 28th May 2022 |
NET BOOK VALUE |
At 28th May 2022 |
At 31st May 2021 |
Included within short leasehold was a dilapidations provision. The director has reviewed the dilapidation provision and does not believe that the entity has an obligation at the reporting date because of a past event, as such the provision has been fully released in the period. |
S&PB RETAIL LIMITED (REGISTERED NUMBER: 12570881) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Period 1st June 2021 to 28th May 2022 |
12. | STOCKS |
2022 | 2021 |
£ | £ |
Raw materials and consumables |
Finished goods and goods for resale |
A stock provision has been recognised in the period of £NIL (2021: £2,475) as a debit to cost of sales in the profit and loss account. |
13. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2022 | 2021 |
£ | £ |
Trade debtors |
Other debtors |
Deferred tax asset |
Prepayments and accrued income |
14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2022 | 2021 |
£ | £ |
Trade creditors |
Social security and other taxes |
VAT | 31,997 | - |
Other creditors |
Accruals and deferred income |
15. | LEASING AGREEMENTS |
Minimum lease payments under non-cancellable operating leases fall due as follows: |
2022 | 2021 |
£ | £ |
Within one year |
Between one and five years |
In more than five years |
S&PB RETAIL LIMITED (REGISTERED NUMBER: 12570881) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Period 1st June 2021 to 28th May 2022 |
16. | PROVISIONS FOR LIABILITIES |
2022 | 2021 |
£ | £ |
Other provisions |
Dilapidation provision | - | 273,032 |
Legal claim provision | 15,800 | 19,000 |
Covid job retention provision | - | 134,533 |
Deferred | Other |
tax | provisions |
£ | £ |
Balance at 1st June 2021 | ( |
) |
Utilised during period | ( |
) |
Transfer to accruals | - | (134,533 | ) |
Released | 5,780 | (273,032 | ) |
Balance at 28th May 2022 |
The director has reviewed the dilapidation provision and does not believe that the entity has an obligation at the reporting date because of a past event, as such the provision has been fully released in the period. |
17. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2022 | 2021 |
value: | £ | £ |
Ordinary | £1.00 | 2 | 2 |
18. | RESERVES |
Retained |
earnings |
£ |
At 1st June 2021 | ( |
) |
Deficit for the period | ( |
) |
At 28th May 2022 | ( |
) |
S&PB RETAIL LIMITED (REGISTERED NUMBER: 12570881) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Period 1st June 2021 to 28th May 2022 |
19. | RELATED PARTY DISCLOSURES |
The following balances were due to/from a company under common control: |
2022 | 2021 |
£ | £ |
Trade debtors | 264,303 | 4,084 |
Other debtors | 360,520 | 400,000 |
Trade creditors | 875,133 | 898,837 |
Other creditors | Nil | 35,015 |
Balances are unsecured, interest-free and repayable on demand. |
During the period, the company made sales to companies under common control of £306,229 (2021: £580,621) and purchases of £9,096,010 (2021: £6,928,055.) |
20. | ULTIMATE CONTROLLING PARTY |
The ultimate controlling parties are Mrs K and Mr D Wood due to them owning 100% of the ordinary share capital. |
21. | RECONCILIATION OF LOSS BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
Period | Period |
1/6/21 | 24/4/20 |
to | to |
28/5/22 | 31/5/21 |
£ | £ |
Loss before taxation | ( |
) | ( |
) |
Depreciation charges |
Profit on disposal of fixed assets | ( |
) |
Decrease in provisions | (187,733 | ) | 153,533 |
Finance costs | 11,296 | 9,637 |
(630,724 | ) | (244,039 | ) |
Increase in stocks | ( |
) | ( |
) |
Increase in trade and other debtors | ( |
) | ( |
) |
Increase in trade and other creditors |
Cash generated from operations | ( |
) |
S&PB RETAIL LIMITED (REGISTERED NUMBER: 12570881) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Period 1st June 2021 to 28th May 2022 |
22. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Period ended 28th May 2022 |
28/5/22 | 1/6/21 |
£ | £ |
Cash and cash equivalents | 274,599 | 1,095,669 |
Period ended 31st May 2021 |
31/5/21 | 24/4/20 |
£ | £ |
Cash and cash equivalents | 1,095,669 | - |
23. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1/6/21 | Cash flow | At 28/5/22 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 1,095,669 | (821,070 | ) | 274,599 |
1,095,669 | ( |
) | 274,599 |
Total | 1,095,669 | (821,070 | ) | 274,599 |