|
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 directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
|
Other information |
The 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 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 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 |
|
Fixtures, fittings, tools and equipment |
20% straight line |
|
|
The company's property is maintained by a programme of repair and refurbishment such that the residual value is deemed to be at least equal to the book value. The residual value would be sufficiently high to make any depreciation charge in the current period immaterial, which is supported by an impairment review. |
|
|
Investment property |
|
Investment property is initially recognised at cost and then subsequently measured at fair value. Changes in value are recognised in profit or loss. |
|
|
Investments |
|
Investments in subsidiaries, associates and joint ventures are measured at cost less any accumulated impairment losses. Listed investments are measured at fair value. Unlisted investments are measured at fair value unless the value cannot be measured reliably, in which case they are measured at cost less any accumulated impairment losses. Changes in fair value are included in the profit and loss account. |
|
|
Stocks |
|
Stocks are measured at the lower of cost and estimated selling price less costs to sell. Cost is determined using the first in first out method. The carrying amount of stock sold is recognised as an expense in the period in which the related revenue is recognised. |
|
|
Debtors |
|
Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts. |
|
|
Creditors |
|
Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method. |
|
|
Taxation |
|
A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period. Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted. |
|
|
Provisions |
|
Provisions (ie liabilities of uncertain timing or amount) are recognised when there is an obligation at the reporting date as a result of a past event, it is probable that economic benefit will be transferred to settle the obligation and the amount of the obligation can be estimated reliably. |
|
|
Leased assets |
|
A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. All other leases are classified as operating leases. The rights of use and obligations under finance leases are initially recognised as assets and liabilities at amounts equal to the fair value of the leased assets or, if lower, the present value of the minimum lease payments. Minimum lease payments are apportioned between the finance charge and the reduction in the outstanding liability using the effective interest rate method. The finance charge is allocated to each period during the lease so as to produce a constant periodic rate of interest on the remaining balance of the liability. Leased assets are depreciated in accordance with the company's policy for tangible fixed assets. If there is no reasonable certainty that ownership will be obtained at the end of the lease term, the asset is depreciated over the lower of the lease term and its useful life. Operating lease payments are recognised as an expense on a straight line basis over the lease term. |
|
|
Pensions |
|
Contributions to defined contribution plans are expensed in the period to which they relate. |
|
|
2 |
Critical accounting estimates and judgements |
|
|
Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. The key assumptions and other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are as follows. Useful economic lives of tangible assets - The annual depreciation charge is sensitive to changes in the estimated useful lives of the assets. The useful economic lives are re-assessed annually. They are amended when necessary to reflect current estimates, future investments and economic utilisation. The residual value of freehold and investment properties is reviewed on an annual basis and any increase or impairment is adjusted. Stock Provision - The company has made an assumption of writing down the value of stock on items in which they expect the cost to exceed the net realisable value before it is fully sold/utilised. This assumption has involved looking at the historic sales patterns and expected sales in future years. |
|
|
3 |
Analysis of turnover |
2023 |
|
2022 |
£ |
£ |
|
|
Sale of goods |
11,498,443 |
|
9,095,260 |
|
Commissions |
349,865 |
|
239,455 |
|
|
|
|
|
|
11,848,308 |
|
9,334,715 |
|
|
|
|
|
|
|
|
|
|
By geographical market: |
|
|
UK |
11,848,308 |
|
9,334,715 |
|
|
|
|
|
|
|
|
|
|
4 |
Operating profit |
2023 |
|
2022 |
£ |
£ |
|
This is stated after charging: |
|
|
Depreciation of owned fixed assets |
27,853 |
|
20,813 |
|
Auditors' remuneration for audit services |
7,500 |
|
7,500 |
|
Carrying amount of stock sold |
10,069,359 |
|
7,640,043 |
|
|
|
|
|
|
|
|
|
|
5 |
Directors' emoluments |
2023 |
|
2022 |
£ |
£ |
|
|
Emoluments |
14,967 |
|
14,967 |
|
|
|
|
|
|
|
|
|
|
6 |
Staff costs |
2023 |
|
2022 |
£ |
£ |
|
|
Wages and salaries |
827,478 |
|
639,154 |
|
Social security costs |
78,647 |
|
49,436 |
|
Other pension costs |
14,028 |
|
11,108 |
|
|
|
|
|
|
920,153 |
|
699,698 |
|
|
|
|
|
|
|
|
|
|
|
Average number of employees during the year |
Number |
Number |
|
|
Administration |
4 |
|
2 |
|
Management |
2 |
|
3 |
|
Valet |
7 |
|
11 |
|
After sales |
4 |
|
- |
|
Sales |
11 |
|
8 |
|
|
|
|
|
|
28 |
|
24 |
|
|
|
|
|
|
|
|
|
|
7 |
Interest payable |
2023 |
|
2022 |
£ |
£ |
|
|
Bank loans and overdrafts |
313,118 |
|
134,772 |
|
Other loans |
121,817 |
|
31,914 |
|
|
|
|
|
|
434,935 |
|
166,686 |
|
|
|
|
|
|
|
|
|
|
8 |
Taxation |
2023 |
|
2022 |
£ |
£ |
|
Analysis of charge in period |
|
Deferred tax: |
|
Origination and reversal of timing differences |
190,875 |
|
65,790 |
|
Effect of increased tax rate on opening liability |
- |
|
20,775 |
|
|
|
|
|
|
190,875 |
|
86,565 |
|
|
|
|
|
|
|
|
|
|
|
Tax on profit on ordinary activities |
190,875 |
|
86,565 |
|
|
|
|
|
|
|
|
|
|
|
Factors affecting tax charge for period |
|
The differences between the tax assessed for the period and the standard rate of corporation tax are explained as follows: |
|
|
|
|
|
|
|
2023 |
|
2022 |
£ |
£ |
|
Profit on ordinary activities before tax |
885,064 |
|
711,030 |
|
|
|
|
|
|
|
|
|
|
Standard rate of corporation tax in the UK |
25% |
|
19% |
|
£ |
£ |
|
Profit on ordinary activities multiplied by the standard rate of corporation tax |
|
221,266 |
|
135,096 |
|
|
Effects of: |
|
Expenses not deductible for tax purposes |
85,508 |
|
1,020 |
|
Capital allowances for period in excess of depreciation |
(4,489) |
|
(13,327) |
|
Losses utilised |
(26,410) |
|
- |
|
Income not taxable |
(275,875) |
|
(57,000) |
|
Deferred tax |
190,875 |
|
20,776 |
|
|
Current tax charge for period |
190,875 |
|
86,565 |
|
|
|
|
|
|
|
|
|
|
|
Factors that may affect future tax charges |
|
None |
|
|
9 |
Tangible fixed assets |
|
|
Land and buildings |
|
Plant and machinery |
|
Fixtures, fittings, tools and equipment |
|
Total |
|
|
At valuation |
|
At cost |
|
At cost |
£ |
£ |
£ |
£ |
|
Cost or valuation |
|
At 31 October 2022 |
5,885,576 |
|
14,973 |
|
173,791 |
|
6,074,340 |
|
Additions |
1,189,242 |
|
- |
|
44,723 |
|
1,233,965 |
|
Revaluation |
340,000 |
|
- |
|
- |
|
340,000 |
|
Transfers to investments |
(3,286,500) |
|
(14,973) |
|
- |
|
(3,301,473) |
|
At 30 October 2023 |
4,128,318 |
|
- |
|
218,514 |
|
4,346,832 |
|
|
|
|
|
|
|
|
|
|
Depreciation |
|
At 31 October 2022 |
- |
|
3,725 |
|
131,976 |
|
135,701 |
|
Charge for the year |
- |
|
175 |
|
27,678 |
|
27,853 |
|
Transfer to investments |
- |
|
(3,900) |
|
- |
|
(3,900) |
|
At 30 October 2023 |
- |
|
- |
|
159,654 |
|
159,654 |
|
|
|
|
|
|
|
|
|
|
Carrying amount |
|
At 30 October 2023 |
4,128,318 |
|
- |
|
58,860 |
|
4,187,178 |
|
At 30 October 2022 |
5,885,576 |
|
11,248 |
|
41,815 |
|
5,938,639 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2023 |
|
2022 |
£ |
£ |
|
Carrying amount of land and buildings on cost basis |
2,686,518 |
|
3,468,167 |
|
|
|
|
|
|
|
|
|
|
|
The freehold properties were valued at open market value on the 17 August 2022 by Knight Frank LLP. |
|
10 |
Investment property |
2023 |
£ |
|
Valuation |
|
At 31 October 2022 |
3,900,000 |
|
Revaluation |
763,500 |
|
Transfers from tangible fixed assets |
|
3,286,500 |
|
At 30 October 2023 |
7,950,000 |
|
|
|
|
|
|
|
|
The investment property was valued at open market value on the 17 August 2022 by Knight Frank LLP and also valued by Cluttons at open market value on 27 July 2023. |
|
|
11 |
Investments |
Investments in |
subsidiary |
undertakings |
£ |
|
Cost |
|
At 31 October 2022 |
4 |
|
|
At 30 October 2023 |
4 |
|
The company holds 20% or more of the share capital of the following companies: |
|
Capital and |
Profit (loss) |
|
Company |
Shares held |
reserves |
for the year |
|
|
Class |
% |
£ |
£ |
|
March 2000 Limited |
Ordinary |
100 |
|
2 |
|
- |
|
Deluxe Express Limited |
Ordinary |
100 |
|
1 |
|
- |
|
Sandco 830 Limited |
Ordinary |
33 |
|
628,520 |
|
26,242 |
|
|
March 2000 Limited and Deluxe Express Limited are dormant companies and Sandco 830 Limited is a rental property company. The registered office of all the above companies is Henson House, Ponteland Road, Newcastle upon Tyne, NE5 3DF. |
|
12 |
Stocks |
2023 |
|
2022 |
£ |
£ |
|
|
Raw materials and consumables |
239,558 |
|
11,250 |
|
Finished goods and goods for resale |
2,453,025 |
|
1,401,378 |
|
|
|
|
|
|
2,692,583 |
|
1,412,628 |
|
|
|
|
|
|
|
|
|
|
13 |
Debtors |
2023 |
|
2022 |
£ |
£ |
|
|
Trade debtors |
34,282 |
|
35,706 |
|
Other debtors |
466,196 |
|
534,499 |
|
Prepayments and accrued income |
194,147 |
|
100,754 |
|
Directors loan accounts |
- |
|
37,070 |
|
|
|
|
|
|
694,625 |
|
708,029 |
|
|
|
|
|
|
|
|
|
|
14 |
Investments held as current assets |
2023 |
|
2022 |
£ |
£ |
|
Fair value |
|
Other investments |
339,455 |
|
317,309 |
|
|
|
|
|
|
|
|
|
|
|
15 |
Creditors: amounts falling due within one year |
2023 |
|
2022 |
£ |
£ |
|
|
Bank overdrafts |
282,251 |
|
- |
|
Bank and other loans |
694,259 |
|
212,024 |
|
Trade creditors |
474,786 |
|
493,645 |
|
Corporation tax |
- |
|
48,492 |
|
Other taxes and social security costs |
100,234 |
|
13,809 |
|
Director's account |
- |
|
11,348 |
|
Other creditors |
389,325 |
|
305,205 |
|
Accruals and deferred income |
165,113 |
|
30,510 |
|
|
|
|
|
|
2,105,968 |
|
1,115,033 |
|
|
|
|
|
|
|
|
|
|
16 |
Creditors: amounts falling due after one year |
2023 |
|
2022 |
£ |
£ |
|
|
Bank and other loans |
5,547,040 |
|
4,454,529 |
|
|
|
|
|
|
|
|
|
|
17 |
Loans |
2023 |
|
2022 |
£ |
£ |
|
Loans not wholly repayable within five years: |
|
|
|
490,107 |
|
490,107 |
|
|
|
|
|
|
|
|
|
|
Analysis of maturity of debt: |
|
Within one year or on demand |
694,259 |
|
698,707 |
|
Between one and two years |
640,260 |
|
694,039 |
|
Between two and five years |
4,416,673 |
|
2,783,700 |
|
After five years |
490,107 |
|
490,107 |
|
|
|
|
|
|
6,241,299 |
|
4,666,553 |
|
|
|
|
|
|
|
|
|
|
The bank loans and overdraft are secured on the company's properties. Bank Loan repayable on 19 July 2041. Interest is charged at base rate plus 2.5% Stocking loans are secured on vehicle stocks. |
|
|
18 |
Deferred taxation |
2023 |
|
2022 |
£ |
£ |
|
|
Revaluation of land and buildings |
636,872 |
|
354,307 |
|
Accelerated capital allowances |
31,881 |
|
58,504 |
|
Tax losses carried forward |
(34,617) |
|
(54,550) |
|
|
|
|
|
|
634,136 |
|
358,261 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2023 |
|
2022 |
£ |
£ |
|
|
At 31 October |
358,261 |
|
57,760 |
|
Charged to the profit and loss account |
190,875 |
|
86,565 |
|
Charged to other comprehensive income |
85,000 |
|
213,936 |
|
|
At 30 October |
634,136 |
|
358,261 |
|
|
|
|
|
|
|
|
|
|
|
19 |
Share capital |
Nominal |
|
2023 |
|
2023 |
|
2022 |
value |
Number |
£ |
£ |
|
Allotted, called up and fully paid: |
|
Ordinary shares |
£1 each |
|
60,002 |
|
60,002 |
|
60,002 |
|
B Ordinary shares |
£1 each |
|
10,000 |
|
10,000 |
|
10,000 |
|
|
|
|
|
|
70,002 |
|
70,002 |
|
|
|
|
|
|
|
|
|
|
20 |
Fair value reserve |
2023 |
|
2022 |
£ |
£ |
|
|
At 31 October |
300,000 |
|
300,000 |
|
Transfer from profit and loss account |
572,625 |
|
- |
|
|
At 30 October |
872,625 |
|
300,000 |
|
|
|
|
|
|
|
|
|
|
21 |
Revaluation reserve |
2023 |
|
2022 |
£ |
£ |
|
|
At 31 October |
2,241,600 |
|
968,612 |
|
Gain on revaluation of land and buildings |
340,000 |
|
1,486,924 |
|
Deferred taxation arising on the revaluation of land and buildings |
|
(85,000) |
|
(213,936) |
|
|
At 30 October |
2,496,600 |
|
2,241,600 |
|
|
|
|
|
|
|
|
|
|
22 |
Profit and loss account |
2023 |
|
2022 |
£ |
£ |
|
|
At 31 October |
4,265,685 |
|
4,181,220 |
|
Profit for the financial year |
694,189 |
|
624,465 |
|
Transfers |
(572,625) |
|
(300,000) |
|
Dividends |
(240,000) |
|
(240,000) |
|
|
At 30 October |
4,147,249 |
|
4,265,685 |
|
|
|
|
|
|
|
|
|
|
23 |
Dividends |
2023 |
|
2022 |
£ |
£ |
|
|
Dividends on ordinary shares (note 22) |
240,000 |
|
240,000 |
|
|
|
|
|
|
|
|
|
|
|
24 |
Loans to directors |
|
Description and conditions |
B/fwd |
Paid |
Repaid |
C/fwd |
£ |
£ |
£ |
£ |
|
D N Wilson |
|
Loans to directors |
32,605 |
|
- |
|
(32,605) |
|
- |
|
|
|
32,605 |
|
- |
|
(32,605) |
|
- |
|
|
|
|
|
|
|
|
|
|
25 |
Related party transactions |
|
|
Circle Red Properties Limited is a related party by virtue of a director being a shareholder. An amount of £191,007, included in other investments. Circle Red Properties Morpeth Limited is a related party by virtue of a director being a shareholder. An amount of £53,315 is included in other investments. Circle Red Investments Limited is a related party by virtue of a director being a shareholder. An amount of £72,986, included in other investments. Circle Red Properties St James Limited is a related party by virtue of a director being a shareholder. , A loan of £310,695, included in debtors was still outstanding at the year end (2022- £310,695). The loan is interest free and has no set date for repayment. |
|
Henson Property Company Ltd is a related party by virtue of the directors being 100% joint shareholders. During the year the company received repayments of £57,500 (2022 - £117,163). At the year end date outstanding loans of £84,500 are included in debtors (2021 - £142,000). The loans are interest free and have no set date for repayment. Wardley Investments Limited Liability Partnership is a related party by virtue of a director being a member. An amount of £46,000, included within other debtors, was still outstanding at the year end (2021 - £46,000). The loan is interest free and has no set date for repayment. During the year dividends were paid to A Wilson, wife of D Wilson amounting to £72,000 (2022- £72,000) During the year dividends were paid to C Muckian, wife of J Muckian amounting to £60,000 (2022-£60,000) |
|
26 |
Controlling party |
|
|
The ultimate controlling party is D N Wilson by virtue of his majority shareholding in the company. |
|
|
27 |
Presentation currency |
|
|
The financial statements are presented in Sterling. |
|
|
28 |
Legal form of entity and country of incorporation |
|
|
Frecker Limited is a private company limited by shares and incorporated in England. |
|
|
29 |
Principal place of business |
|
|
The address of the company's principal place of business and registered office is: |
|
|
Henson House |
|
Ponteland Road |
|
Newcastle upon Tyne |
|
Tyne & Wear |
|
NE5 3DF |