Company registration number 12347090 (England and Wales)
STORE FIRST SELF STORAGE LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
STORE FIRST SELF STORAGE LIMITED
COMPANY INFORMATION
Directors
Mr J M Turner
Ms S Fretwell
Mrs R Almond
Company number
12347090
Registered office
Group First House
12a Mead Way
Burnley
BB12 7NG
Auditor
Lopian Gross Barnett & Co
1st Floor, Cloister House
Riverside
New Bailey Street
Manchester
M3 5FS
Business address
Group First House
12a Mead Way
Burnley
BB12 7NG
STORE FIRST SELF STORAGE LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 6
Profit and loss account
7
Group statement of comprehensive income
8
Group balance sheet
9
Company balance sheet
10 - 11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Notes to the financial statements
15 - 30
STORE FIRST SELF STORAGE LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2023
- 1 -
The directors present the strategic report for the year ended 30 June 2023.
Review of the business
Store First Self Storage Limited and its board of directors believe the year ended 30 June 2023 has been another successful year of trading.
Occupancy for the company finished 81.74% with total income increase on prior years by £1.6m which is mostly made up of increases in pricing throughout the period.
Overall the self-storage industry has slightly decreased in the period and so the board of pleased to have finished the year with occupancy at 81.74% representing the quality of product and service offered by the company.
The investment property value has increased due to the movement in the sector and increase overall group profitability.
The market remains competitive with a lot of new competitors entering the market that do offer customers alternative choice in self-storage services but the board believe do not compete with Store First Self Storage Limited as comparable services.
The board remain engaged on growing the business through acquisition of self-storage commercial property.
Mrs R Almond
20 August 2024
STORE FIRST SELF STORAGE LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2023
- 2 -
The directors present their annual report and financial statements for the year ended 30 June 2023.
Principal activities
The principal activity of the company and group continued to be that of freeholder and letting of storage property and the management and operating of commercial self storage property.
Results and dividends
The results for the year are set out on page 7.
No ordinary dividends were paid. The directors do not recommend payment of a further dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr J M Turner
Ms S Fretwell
Mrs R Almond
Auditor
Lopian Gross Barnett & Co were appointed as auditor to the group and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.
Medium-sized group exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized group exemption.
On behalf of the board
Mrs R Almond
20 August 2024
STORE FIRST SELF STORAGE LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 JUNE 2023
- 3 -
The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the ;
prepare the on the going concern basis unless it is inappropriate to presume that the group and company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
STORE FIRST SELF STORAGE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF STORE FIRST SELF STORAGE LIMITED
- 4 -
Opinion
We have audited the financial statements of Store First Self Storage Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 June 2023 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the group's and the parent company's affairs as at 30 June 2023 and of the group's profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the 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 group's and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
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 our 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.
STORE FIRST SELF STORAGE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF STORE FIRST SELF STORAGE LIMITED
- 5 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the parent company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
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.
STORE FIRST SELF STORAGE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF STORE FIRST SELF STORAGE LIMITED
- 6 -
Due to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing fraud or non-compliance with laws and regulations and cannot be expected to detect all fraud and non-compliance with laws and regulations.
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.
The prior year financial statements were unaudited.
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.
Jonathan Brodie FCA (Senior Statutory Auditor)
For and on behalf of Lopian Gross Barnett & Co
20 August 2024
Chartered Accountants
Statutory Auditor
1st Floor, Cloister House
Riverside
New Bailey Street
Manchester
M3 5FS
STORE FIRST SELF STORAGE LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 JUNE 2023
- 7 -
2023
2022
Notes
£
£
Turnover
3
10,570,372
8,948,903
Cost of sales
(48,973)
(68,478)
Gross profit
10,521,399
8,880,425
Administrative expenses
(10,285,124)
(6,996,770)
Other operating income
70,756
1,426,052
Operating profit
4
307,031
3,309,707
Interest receivable and similar income
7
40,000
Interest payable and similar expenses
8
(28,196)
(104,104)
Fair value gains and losses on investment properties
12
13,144,840
31,794
Profit before taxation
13,463,675
3,237,397
Tax on profit
9
(3,706,335)
(399,645)
Profit for the financial year
9,757,340
2,837,752
Profit for the financial year is all attributable to the owner of the parent company.
STORE FIRST SELF STORAGE LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2023
- 8 -
2023
2022
£
£
Profit for the year
9,757,340
2,837,752
Other comprehensive income
-
-
Total comprehensive income for the year
9,757,340
2,837,752
Total comprehensive income for the year is all attributable to the owners of the parent company.
STORE FIRST SELF STORAGE LIMITED
GROUP BALANCE SHEET
AS AT 30 JUNE 2023
30 June 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
10
4,341,881
4,604,357
Other intangible assets
10
40
Total intangible assets
4,341,881
4,604,397
Tangible assets
11
187,156
105,865
Investment property
12
22,750,000
7,500,000
27,279,037
12,210,262
Current assets
Stocks
15
34,570
42,564
Debtors
16
10,877,105
8,738,511
Cash at bank and in hand
385,082
84,637
11,296,757
8,865,712
Creditors: amounts falling due within one year
17
(17,334,560)
(13,445,194)
Net current liabilities
(6,037,803)
(4,579,482)
Total assets less current liabilities
21,241,234
7,630,780
Creditors: amounts falling due after more than one year
18
(263,105)
-
Provisions for liabilities
Deferred tax liability
20
4,552,038
962,029
(4,552,038)
(962,029)
Net assets
16,426,091
6,668,751
Capital and reserves
Called up share capital
22
100
100
Non-distributable profits reserve
23
13,656,115
4,101,284
Distributable profit and loss reserves
2,769,876
2,567,367
Total equity
16,426,091
6,668,751
These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.
The financial statements were approved by the board of directors and authorised for issue on 20 August 2024 and are signed on its behalf by:
20 August 2024
Mrs R Almond
Director
Company registration number 12347090 (England and Wales)
STORE FIRST SELF STORAGE LIMITED
COMPANY BALANCE SHEET
AS AT 30 JUNE 2023
30 June 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
10
3,061,540
3,252,886
Tangible assets
11
85,875
Investment property
12
22,750,000
7,500,000
Investments
13
1
1
25,897,416
10,752,887
Current assets
Debtors
16
3,287,883
3,941,344
Cash at bank and in hand
142,231
14,885
3,430,114
3,956,229
Creditors: amounts falling due within one year
17
(10,643,978)
(9,351,873)
Net current liabilities
(7,213,864)
(5,395,644)
Total assets less current liabilities
18,683,552
5,357,243
Creditors: amounts falling due after more than one year
18
(263,105)
-
Provisions for liabilities
Deferred tax liability
20
4,552,038
962,029
(4,552,038)
(962,029)
Net assets
13,868,409
4,395,214
Capital and reserves
Called up share capital
22
100
100
Non-distributable profits reserve
23
13,656,115
4,101,284
Distributable profit and loss reserves
212,194
293,830
Total equity
13,868,409
4,395,214
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £9,473,195 (2022 - £564,215 profit).
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
STORE FIRST SELF STORAGE LIMITED
COMPANY BALANCE SHEET (CONTINUED)
AS AT 30 JUNE 2023
30 June 2023
- 11 -
The financial statements were approved by the board of directors and authorised for issue on 20 August 2024 and are signed on its behalf by:
20 August 2024
Mrs R Almond
Director
Company registration number 12347090 (England and Wales)
STORE FIRST SELF STORAGE LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2023
- 12 -
Share capital
Non-distri-butable profits
Profit and loss reserves
Total
£
£
£
£
Balance at 1 July 2021
100
4,079,586
(248,687)
3,830,999
Year ended 30 June 2022:
Profit and total comprehensive income
-
21,698
2,816,054
2,837,752
Balance at 30 June 2022
100
4,101,284
2,567,367
6,668,751
Year ended 30 June 2023:
Profit and total comprehensive income
-
9,554,831
202,509
9,757,340
Balance at 30 June 2023
100
13,656,115
2,769,876
16,426,091
STORE FIRST SELF STORAGE LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2023
- 13 -
Share capital
Non-distri-butable profits
Profit and loss reserves
Total
£
£
£
£
Balance at 1 July 2021
100
4,079,586
(4,328,273)
(248,587)
Year ended 30 June 2022:
Profit and total comprehensive income for the year
-
21,698
542,517
564,215
Balance at 30 June 2022
100
4,101,284
293,830
4,395,214
Year ended 30 June 2023:
Profit and total comprehensive income
-
9,554,831
(81,636)
9,473,195
Balance at 30 June 2023
100
13,656,115
212,194
13,868,409
STORE FIRST SELF STORAGE LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2023
- 14 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
28
2,119,310
255,360
Interest paid
(28,196)
(104,104)
Income taxes paid
(43,478)
Net cash inflow from operating activities
2,091,114
107,778
Investing activities
Purchase of business
-
1,606,764
Purchase of tangible fixed assets
(170,340)
-
Proceeds from disposal of tangible fixed assets
28,065
268,495
Purchase of investment property
(2,105,160)
(1,898,400)
Interest received
40,000
Net cash used in investing activities
(2,207,435)
(23,141)
Financing activities
Receipt of bank loans
263,105
-
Net cash generated from/(used in) financing activities
263,105
-
Net increase in cash and cash equivalents
146,784
84,637
Cash and cash equivalents at beginning of year
84,637
Cash and cash equivalents at end of year
231,421
84,637
Relating to:
Cash at bank and in hand
385,082
84,637
Bank overdrafts included in creditors payable within one year
(153,661)
-
STORE FIRST SELF STORAGE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
- 15 -
1
Accounting policies
Company information
Store First Self Storage Limited (“the company”) is a private company limited by shares domiciled and incorporated in England and Wales. The registered office is Group First House, 12a Mead Way, Burnley, BB12 7NG.
The group consists of Store First Self Storage Limited and all of its subsidiaries.
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, modified to include the revaluation of investment properties at fair value. The principal accounting policies adopted are set out below.
The 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 for parent company information presented within the consolidated financial statements:
1.2
Business combinations
In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.
1.3
Basis of consolidation
The consolidated group financial statements consist of the financial statements of the parent company Store First Self Storage Limited together with all entities controlled by the parent company (its subsidiaries).
All financial statements are made up to 30 June 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.
STORE FIRST SELF STORAGE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 16 -
1.4
Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.5
Turnover
Turnover represents amounts receivable for the provision of property management services and is recognised at the fair value of the consideration received or receivable net of VAT and other sales related taxes.
Turnover from the rental of investment property is recognised net of VAT for the period and is recognised on a straight line basis.
1.6
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 20 years.
1.7
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
Amortisation 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:
Software
50% straight line
1.8
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:
Fixtures and fittings
15% reducing balance
Motor vehicles
25% reducing balance/20% 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 recognised in the profit and loss account.
1.9
Investment property
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.
STORE FIRST SELF STORAGE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 17 -
1.10
Fixed asset investments
Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.
In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
1.11
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs 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 cost and replacement 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.
1.12
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.13
Financial instruments
The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and 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 and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
STORE FIRST SELF STORAGE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 18 -
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 group after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
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. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Derecognition of financial liabilities
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
1.14
Equity instruments
Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.
1.15
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 group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
STORE FIRST SELF STORAGE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 19 -
1.16
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.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.17
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.18
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.
2
Judgements and key sources of estimation uncertainty
In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3
Turnover
2023
2022
£
£
Turnover analysed by class of business
Management activites
9,041,636
7,090,562
Other activities
71,116
75,495
Rental income
1,457,620
1,782,846
10,570,372
8,948,903
2023
2022
£
£
Turnover analysed by geographical market
UK
10,570,372
8,948,903
STORE FIRST SELF STORAGE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 20 -
4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Fees payable to the group's auditor for the audit of the group's financial statements
-
-
Depreciation of owned tangible fixed assets
60,984
36,068
Profit on disposal of tangible fixed assets
-
(6,495)
Amortisation of intangible assets
262,516
264,488
5
Employees
The average monthly number of persons (including directors) employed by the group and company during the year was:
Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
55
54
Their aggregate remuneration comprised:
Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
1,507,047
1,426,087
Social security costs
141,644
145,611
-
-
Pension costs
28,480
28,635
1,677,171
1,600,333
6
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
219,246
196,365
Company pension contributions to defined contribution schemes
2,640
2,752
221,886
199,117
STORE FIRST SELF STORAGE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
6
Directors' remuneration
(Continued)
- 21 -
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
126,327
-
Company pension contributions to defined contribution schemes
1,320
-
As total directors' remuneration was less than £200,000 in the prior year, no disclosure is provided.
7
Interest receivable and similar income
2023
2022
£
£
Interest income
Other interest income
40,000
-
8
Interest payable and similar expenses
2023
2022
£
£
Interest on bank overdrafts and loans
28,196
103,333
Other interest
-
771
Total finance costs
28,196
104,104
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
3,706,335
394,482
Adjustments in respect of prior periods
5,163
Total current tax
3,706,335
399,645
STORE FIRST SELF STORAGE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
9
Taxation
(Continued)
- 22 -
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
13,463,675
3,237,397
Expected tax charge based on the standard rate of corporation tax in the UK of 20.50% (2022: 19.00%)
2,760,053
615,105
Tax effect of expenses that are not deductible in determining taxable profit
6,106
541
Tax effect of income not taxable in determining taxable profit
(3,628)
(271,994)
Tax effect of utilisation of tax losses not previously recognised
(3,629)
Adjustments in respect of prior years
6,492
Permanent capital allowances in excess of depreciation
(5,316)
Depreciation on assets not qualifying for tax allowances
4,588
Amortisation on assets not qualifying for tax allowances
53,809
49,871
Under/(over) provided in prior years
(1,329)
Deferred tax
895,311
Taxation charge
3,706,335
399,645
10
Intangible fixed assets
Group
Goodwill
Software
Total
£
£
£
Cost
At 1 July 2022 and 30 June 2023
5,249,525
185,010
5,434,535
Amortisation and impairment
At 1 July 2022
645,168
184,970
830,138
Amortisation charged for the year
262,476
40
262,516
At 30 June 2023
907,644
185,010
1,092,654
Carrying amount
At 30 June 2023
4,341,881
4,341,881
At 30 June 2022
4,604,357
40
4,604,397
STORE FIRST SELF STORAGE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
10
Intangible fixed assets
(Continued)
- 23 -
Company
Goodwill
£
Cost
At 1 July 2022 and 30 June 2023
3,826,924
Amortisation and impairment
At 1 July 2022
574,038
Amortisation charged for the year
191,346
At 30 June 2023
765,384
Carrying amount
At 30 June 2023
3,061,540
At 30 June 2022
3,252,886
11
Tangible fixed assets
Group
Fixtures and fittings
Motor vehicles
Total
£
£
£
Cost
At 1 July 2022
61,121
218,255
279,376
Additions
170,340
170,340
Disposals
(28,065)
(28,065)
At 30 June 2023
61,121
360,530
421,651
Depreciation and impairment
At 1 July 2022
44,542
128,969
173,511
Depreciation charged in the year
8,813
52,171
60,984
At 30 June 2023
53,355
181,140
234,495
Carrying amount
At 30 June 2023
7,766
179,390
187,156
At 30 June 2022
16,579
89,286
105,865
STORE FIRST SELF STORAGE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
11
Tangible fixed assets
(Continued)
- 24 -
Company
Motor vehicles
£
Cost
At 1 July 2022
Additions
142,565
Disposals
(28,065)
At 30 June 2023
114,500
Depreciation and impairment
At 1 July 2022
Depreciation charged in the year
28,625
At 30 June 2023
28,625
Carrying amount
At 30 June 2023
85,875
12
Investment property
Group
Company
2023
2023
£
£
Fair value
At 1 July 2022
7,500,000
7,500,000
Additions through external acquisition
2,105,160
2,105,160
Net gains or losses through fair value adjustments
13,144,840
13,144,840
At 30 June 2023
22,750,000
22,750,000
The fair value of the investment property has been arrived at on the basis of a valuation carried out by the directors. The valuation was made on an open market value basis.
13
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
14
1
1
STORE FIRST SELF STORAGE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
13
Fixed asset investments
(Continued)
- 25 -
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 July 2022 and 30 June 2023
1
Carrying amount
At 30 June 2023
1
At 30 June 2022
1
14
Subsidiaries
Details of the company's subsidiaries at 30 June 2023 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Pay Store Limited
England & Wales
Ordinary
100.00
15
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Raw materials and consumables
34,570
42,564
-
-
16
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
989,329
2,334,148
2,470
3,102,487
Unpaid share capital
100
100
100
100
Other debtors
9,341,683
6,033,158
3,126,169
554,422
Prepayments and accrued income
545,993
371,105
159,144
284,335
10,877,105
8,738,511
3,287,883
3,941,344
STORE FIRST SELF STORAGE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 26 -
17
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
19
153,661
Trade creditors
4,736,815
1,407,434
1,515,422
1,036,619
Amounts owed to group undertakings
6,065,783
5,355,670
Corporation tax payable
504,768
388,442
197,215
166,565
Other taxation and social security
148,869
296,432
-
57,286
Other creditors
6,884,449
6,840,551
1,420,496
1,107,053
Accruals and deferred income
4,905,998
4,512,335
1,445,062
1,628,680
17,334,560
13,445,194
10,643,978
9,351,873
18
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
19
263,105
263,105
19
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
263,105
263,105
Bank overdrafts
153,661
416,766
-
263,105
-
Payable within one year
153,661
Payable after one year
263,105
263,105
The long term loan contains a fixed legal charge over the company's investment property at Preston and a floating charge over all the assets of the company.
STORE FIRST SELF STORAGE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 27 -
20
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
Liabilities
Liabilities
2023
2022
Group
£
£
Revaluations
4,552,038
962,029
Liabilities
Liabilities
2023
2022
Company
£
£
Revaluations
4,552,038
962,029
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 July 2022
962,029
962,029
Charge to profit or loss
3,286,210
3,286,210
Effect of change in tax rate - profit or loss
303,799
303,799
Liability at 30 June 2023
4,552,038
4,552,038
21
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
28,480
28,635
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
22
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and not fully paid
Ordinary shares of £1 each
100
100
100
100
STORE FIRST SELF STORAGE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 28 -
23
Non-distributable profits reserve
Group
Company
2023
2022
2023
2022
£
£
£
£
At the beginning of the year
4,101,284
4,079,586
4,101,284
4,079,586
Non distributable profits in the year
9,554,831
21,698
9,554,831
21,698
At the end of the year
13,656,115
4,101,284
13,656,115
4,101,284
Non-distributable reserves relates to fair value gain on investment property and deferred tax arising on those gains.
24
Operating lease commitments
Lessee
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
72,210
-
36,105
-
Between two and five years
107,338
-
53,669
-
179,548
-
89,774
-
25
Events after the reporting date
There were no events after the reporting period end date which require disclosure at the balance sheet date.
26
Related party transactions
Transactions with related parties
During the year the group entered into the following transactions with related parties:
Purchases
Purchases
2023
2022
£
£
Connected companies
Connected companies
6,389,744
4,074,340
STORE FIRST SELF STORAGE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
26
Related party transactions
(Continued)
- 29 -
The following amounts were outstanding at the reporting end date:
Amounts due to related parties
2023
2022
£
£
Connected companies
Connected companies
4,655,456
3,663,651
The following amounts were outstanding at the reporting end date:
Amounts due from related parties
2023
2022
Balance
Balance
£
£
Connected companies
Connected companies
8,530,969
3,347,595
Other information
Transactions and balances with connected companies relate to those companies which are outside the immediate group but related companies for which the shareholders and directors are also involved with.
There were no other related party transactions which require disclosure.
27
Controlling party
The ultimate controlling party is Jennifer Whittaker.
28
Cash generated from group operations
2023
2022
£
£
Profit for the year after tax
9,757,340
2,837,752
Adjustments for:
Taxation charged
3,706,335
399,645
Finance costs
28,196
104,104
Investment income
(40,000)
Gain on disposal of tangible fixed assets
-
(6,495)
Fair value gain on investment properties
(13,144,840)
(31,794)
Amortisation and impairment of intangible assets
262,516
264,488
Depreciation and impairment of tangible fixed assets
60,984
36,068
Movements in working capital:
Decrease in stocks
7,994
7,064
Increase in debtors
(2,138,594)
(1,055,097)
Increase/(decrease) in creditors
3,619,379
(2,300,375)
Cash generated from operations
2,119,310
255,360
STORE FIRST SELF STORAGE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 30 -
29
Analysis of changes in net funds/(debt) - group
1 July 2022
Cash flows
30 June 2023
£
£
£
Cash at bank and in hand
84,637
300,445
385,082
Bank overdrafts
(153,661)
(153,661)
84,637
146,784
231,421
Borrowings excluding overdrafts
-
(263,105)
(263,105)
84,637
(116,321)
(31,684)
2023-06-302022-07-01falseCCH SoftwareCCH Accounts Production 2024.100false12347090bus:Consolidated2022-07-012023-06-30123470902022-07-012023-06-3012347090bus:RegisteredOffice2022-07-012023-06-30123470902023-06-3012347090bus:Consolidated2021-07-012022-06-30123470902021-07-012022-06-3012347090bus:Consolidated2023-06-3012347090core:Goodwillbus:Consolidated2023-06-3012347090core:Goodwillbus:Consolidated2022-06-3012347090core:OtherResidualIntangibleAssetsbus:Consolidated2023-06-3012347090core:OtherResidualIntangibleAssetsbus:Consolidated2022-06-3012347090core:Goodwill2023-06-3012347090core:Goodwill2022-06-3012347090core:ComputerSoftwarebus:Consolidated2023-06-3012347090core:ComputerSoftwarebus:Consolidated2022-06-3012347090bus:Consolidated2022-06-30123470902022-06-3012347090core:FurnitureFittingsbus:Consolidated2023-06-3012347090core:MotorVehiclesbus:Consolidated2023-06-3012347090core:FurnitureFittingsbus:Consolidated2022-06-3012347090core:MotorVehiclesbus:Consolidated2022-06-3012347090core:MotorVehicles2023-06-3012347090core:ShareCapitalbus:Consolidated2023-06-3012347090core:ShareCapitalbus:Consolidated2022-06-3012347090core:FurtherSpecificReserve1ComponentTotalEquitybus:Consolidated2023-06-3012347090core:FurtherSpecificReserve1ComponentTotalEquitybus:Consolidated2022-06-3012347090core:ShareCapital2023-06-3012347090core:ShareCapital2022-06-3012347090core:FurtherSpecificReserve1ComponentTotalEquity2023-06-3012347090core:FurtherSpecificReserve1ComponentTotalEquity2022-06-3012347090core:RetainedEarningsAccumulatedLosses2023-06-3012347090core:ShareCapitalbus:Consolidated2021-06-30123470902021-06-3012347090core:RetainedEarningsAccumulatedLossesbus:Consolidated2022-06-3012347090core:RetainedEarningsAccumulatedLossesbus:Consolidated2023-06-3012347090core:ShareCapital2021-06-3012347090core:RetainedEarningsAccumulatedLosses2022-06-3012347090bus:Consolidated2021-06-3012347090core:Goodwill2022-07-012023-06-3012347090core:IntangibleAssetsOtherThanGoodwill2022-07-012023-06-3012347090core:ComputerSoftware2022-07-012023-06-3012347090core:FurnitureFittings2022-07-012023-06-3012347090core:MotorVehicles2022-07-012023-06-3012347090core:UKTaxbus:Consolidated2022-07-012023-06-3012347090core:UKTaxbus:Consolidated2021-07-012022-06-3012347090bus:Consolidated12022-07-012023-06-3012347090bus:Consolidated12021-07-012022-06-3012347090bus:Consolidated22022-07-012023-06-3012347090bus:Consolidated22021-07-012022-06-3012347090bus:Consolidated32022-07-012023-06-3012347090bus:Consolidated32021-07-012022-06-3012347090core:Goodwillbus:Consolidated2022-06-3012347090core:ComputerSoftwarebus:Consolidated2022-06-3012347090bus:Consolidated2022-06-3012347090core:Goodwill2022-06-3012347090core:Goodwillbus:Consolidated2022-07-012023-06-3012347090core:ComputerSoftwarebus:Consolidated2022-07-012023-06-3012347090core:FurnitureFittingsbus:Consolidated2022-06-3012347090core:MotorVehiclesbus:Consolidated2022-06-3012347090core:MotorVehicles2022-06-3012347090core:FurnitureFittingsbus:Consolidated2022-07-012023-06-3012347090core:MotorVehiclesbus:Consolidated2022-07-012023-06-3012347090core:CurrentFinancialInstrumentsbus:Consolidated2023-06-3012347090core:CurrentFinancialInstrumentsbus:Consolidated2022-06-3012347090core:CurrentFinancialInstruments2023-06-3012347090core:CurrentFinancialInstruments2022-06-3012347090core:WithinOneYearbus:Consolidated2023-06-3012347090core:WithinOneYearbus:Consolidated2022-06-3012347090core:CurrentFinancialInstrumentscore:WithinOneYear2023-06-3012347090core:CurrentFinancialInstrumentscore:WithinOneYear2022-06-3012347090core:Non-currentFinancialInstrumentscore:AfterOneYearbus:Consolidated2023-06-3012347090core:Non-currentFinancialInstrumentscore:AfterOneYearbus:Consolidated2022-06-3012347090core:Non-currentFinancialInstrumentscore:AfterOneYear2023-06-3012347090core:Non-currentFinancialInstrumentscore:AfterOneYear2022-06-3012347090core:CurrentFinancialInstrumentscore:WithinOneYearbus:Consolidated2023-06-3012347090core:CurrentFinancialInstrumentscore:WithinOneYearbus:Consolidated2022-06-3012347090bus:PrivateLimitedCompanyLtd2022-07-012023-06-3012347090bus:FRS1022022-07-012023-06-3012347090bus:Audited2022-07-012023-06-3012347090bus:ConsolidatedGroupCompanyAccounts2022-07-012023-06-3012347090bus:FullAccounts2022-07-012023-06-30xbrli:purexbrli:sharesiso4217:GBP