Company registration number 06274644 (England and Wales)
SCOPEWAY LIMITED
(T/A KOSHER KINGDOM)
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
SCOPEWAY LIMITED
(T/A KOSHER KINGDOM)
COMPANY INFORMATION
Directors
Mr D S Langer
Mr S M Rokach
Company number
06274644
Registered office
Lynwood House
373-375 Station Road
Harrow
Middlesex
HA1 2AW
Auditor
RDP Newmans LLP
Lynwood House
373-375 Station Road
Harrow
Middlesex
HA1 2AW
Business address
7 Russell Parade
Golders Green Road
London
NW11 9NN
SCOPEWAY LIMITED
(T/A KOSHER KINGDOM)
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 6
Statement of comprehensive income
7
Balance sheet
8
Statement of changes in equity
9
Statement of cash flows
10
Notes to the financial statements
11 - 22
SCOPEWAY LIMITED
(T/A KOSHER KINGDOM)
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

The directors present the strategic report for the year ended 31 December 2023.

 

Principal activities

The principal activity of the company is the retail of kosher food and drink products.

Fair review of the business

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

 

The Key Performance Indicators of Scopeway Limited over the last two years are detailed below:

 

2023        2022

Turnover (GBP £'000)        22,814        28,280

Gross profit %            15.46        14.43

Net profit %            7.27        6.50

 

Scopeway Limited is the leading kosher supermarket in the locality and as a result, the company continues to have loyal customers. The decrease in turnover reported is principally as the comparative figures are for a 16 month period whereas the current year figures are for a 12 month period.

 

The gross margins have increased primarily because the company has successfully managed to pass on increased costs that have arisen during the period together with improved efficiencies. This has resulted in improved gross and net profit margins.

Principal risks and uncertainties

Operating results of the company, as well as company's liquidity, are significantly influenced by a number of risk factors, many of which are not within the company's control. These include:

 

Liquidity risk: The risk arising in relation to the company's management of working capital and the risk that the company will encounter difficulties in meeting financial obligations as and when they fall due. The company seeks to manage financial risk to ensure sufficient liquidity is available to meet foreseeable needs.

 

Credit risk: The risk arising from the possibility that the company will incur losses from the failure of customers and counterparties to meet their obligations is constantly reviewed. This risk is minimal as the vast majority of customers are not offered credit terms.

 

Market risk: The risk arising from competition from other retailers in the market. This risk is mitigated by the specialised product range and the keen pricing of these products.

 

War in Ukraine: Due to the war in Ukraine, the global economy has been impacted by a rise in fuel prices. The company could potentially be largely impacted by this price increase as it relies heavily on daily transportation of goods. The directors are aware of the situation and are taking necessary steps in order to reduce this risk to a minimum, such as strategically buying goods in bulk wherever possible.

 

On behalf of the board

Mr S M Rokach
Director
29 May 2024
SCOPEWAY LIMITED
(T/A KOSHER KINGDOM)
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -

The directors present their annual report and financial statements for the year ended 31 December 2023.

Results and dividends

The results for the year are set out on page 7.

Ordinary dividends were paid amounting to £2,761,697. The directors do not recommend payment of a final 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 D S Langer
Mr S M Rokach
Auditor

The auditor, RDP Newmans LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Strategic report

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
Mr S M Rokach
Director
29 May 2024
SCOPEWAY LIMITED
(T/A KOSHER KINGDOM)
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 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 company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

SCOPEWAY LIMITED
(T/A KOSHER KINGDOM)
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SCOPEWAY LIMITED
- 4 -
Opinion

We have audited the financial statements of Scopeway Limited (the 'company') for the year ended 31 December 2023 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the 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:

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 our audit:

SCOPEWAY LIMITED
(T/A KOSHER KINGDOM)
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SCOPEWAY LIMITED
- 5 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

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

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 company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

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.

The extent to which the audit was considered capable of detecting irregularities including fraud

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

SCOPEWAY LIMITED
(T/A KOSHER KINGDOM)
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SCOPEWAY LIMITED
- 6 -

To address the risk of fraud through management bias and override of controls, we:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

 

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

A R Gangola FCA
Senior Statutory Auditor
For and on behalf of RDP Newmans LLP
29 May 2024
Chartered Accountants
Statutory Auditor
Lynwood House
373-375 Station Road
Harrow
Middlesex
HA1 2AW
SCOPEWAY LIMITED
(T/A KOSHER KINGDOM)
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
Year
Period
ended
ended
31 December
31 December
2023
2022
Notes
£
£
Turnover
3
22,814,180
28,280,090
Cost of sales
(19,286,093)
(24,197,908)
Gross profit
3,528,087
4,082,182
Administrative expenses
(1,357,177)
(1,796,436)
Other operating income
-
0
2,531
Operating profit
4
2,170,910
2,288,277
Interest receivable and similar income
7
17,671
899
Interest payable and similar expenses
8
(258)
-
0
Profit before taxation
2,188,323
2,289,176
Tax on profit
9
(528,753)
(451,108)
Profit for the financial year and total comprehensive income
1,659,570
1,838,068

The statement of comprehensive income has been prepared on the basis that all operations are continuing operations.

 

SCOPEWAY LIMITED
(T/A KOSHER KINGDOM)
BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 8 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
11
444,771
347,114
Current assets
Stocks
12
1,057,953
1,159,487
Debtors
13
587,246
499,651
Cash at bank and in hand
864,223
2,460,949
2,509,422
4,120,087
Creditors: amounts falling due within one year
14
(1,723,265)
(2,172,553)
Net current assets
786,157
1,947,534
Total assets less current liabilities
1,230,928
2,294,648
Provisions for liabilities
Deferred tax liability
15
104,615
66,208
(104,615)
(66,208)
Net assets
1,126,313
2,228,440
Capital and reserves
Called up share capital
17
2
2
Profit and loss reserves
1,126,311
2,228,438
Total equity
1,126,313
2,228,440

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 29 May 2024 and are signed on its behalf by:
Mr S M Rokach
Director
Company registration number 06274644 (England and Wales)
SCOPEWAY LIMITED
(T/A KOSHER KINGDOM)
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 September 2021
2
3,780,918
3,780,920
Period ended 31 December 2022:
Profit and total comprehensive income
-
1,838,068
1,838,068
Dividends
10
-
(3,390,548)
(3,390,548)
Balance at 31 December 2022
2
2,228,438
2,228,440
Year ended 31 December 2023:
Profit and total comprehensive income
-
1,659,570
1,659,570
Dividends
10
-
(2,761,697)
(2,761,697)
Balance at 31 December 2023
2
1,126,311
1,126,313
SCOPEWAY LIMITED
(T/A KOSHER KINGDOM)
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
Year
Period
ended
ended
31 December
31 December
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
22
2,100,303
2,547,183
Interest paid
(258)
-
0
Income taxes paid
(764,381)
(206,638)
Net cash inflow from operating activities
1,335,664
2,340,545
Investing activities
Purchase of tangible fixed assets
(188,364)
(100,565)
Proceeds from disposal of tangible fixed assets
-
0
8,249
Interest received
17,671
899
Net cash used in investing activities
(170,693)
(91,417)
Financing activities
Dividends paid
(2,761,697)
(3,390,548)
Net cash used in financing activities
(2,761,697)
(3,390,548)
Net decrease in cash and cash equivalents
(1,596,726)
(1,141,420)
Cash and cash equivalents at beginning of year
2,460,949
3,602,369
Cash and cash equivalents at end of year
864,223
2,460,949
SCOPEWAY LIMITED
(T/A KOSHER KINGDOM)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
1
Accounting policies
Company information

Scopeway Limited is a private company limited by shares incorporated in England and Wales. The registered office is Lynwood House, 373-375 Station Road, Harrow, Middlesex, HA1 2AW.

1.1
Reporting period

In the prior period, the company has changed its accounting period to 31 December to align itself with the parent company. As a result the comparative amounts presented in the financial statements (including the related notes) are not entirely comparable as the period covered by these accounts is for 12 months compared to that of 16 months in the comparatives.

1.2
Accounting convention

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

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

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

1.3
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company 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.

1.4
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods provided in the normal course of business, and is shown net of VAT. Turnover also includes commission earned from concession partners and is stated at the value of the margin the company receives.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer, the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.5
Tangible fixed assets

Tangible fixed assets are initially measured at cost, 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:

Leasehold land and buildings
10 years straight line
Computer equipment
33% reducing balance
Fixtures, fittings and equipment
15% reducing balance
Website costs
25% reducing balance
Motor vehicles
25% reducing balance

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

SCOPEWAY LIMITED
(T/A KOSHER KINGDOM)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 12 -
1.6
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.7
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.

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

1.8
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, 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.

1.9
Financial instruments

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

 

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

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

SCOPEWAY LIMITED
(T/A KOSHER KINGDOM)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 13 -
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.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

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 company 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.

Classification of financial liabilities

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

Basic financial liabilities

Basic financial liabilities, including creditors, 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.

SCOPEWAY LIMITED
(T/A KOSHER KINGDOM)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -
Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.10
Equity instruments

Equity instruments issued by the company 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 company.

1.11
Taxation

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

Current tax

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

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

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 when the company has 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.

SCOPEWAY LIMITED
(T/A KOSHER KINGDOM)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -
1.12
Employee benefits

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

 

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.

1.13
Retirement benefits

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

1.14
Leases

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

1.15
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

2
Judgements and key sources of estimation uncertainty

In the application of the company’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.

 

In the directors' view, there are no significant judgements or estimates made.

3
Turnover and other revenue

An analysis of the company's turnover is as follows:

2023
2022
£
£
Turnover analysed by class of business
Sales
22,443,015
27,934,700
Concessions
371,165
345,390
22,814,180
28,280,090
SCOPEWAY LIMITED
(T/A KOSHER KINGDOM)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
3
Turnover and other revenue
(Continued)
- 16 -
2023
2022
£
£
Other revenue
Interest income
17,671
899
Grants received
-
2,531

Turnover in the year was all received in the United Kingdom.

4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Government grants
-
(2,531)
Fees payable to the company's auditor for the audit of the company's financial statements
12,000
13,000
Depreciation of owned tangible fixed assets
90,707
104,520
Profit on disposal of tangible fixed assets
-
(3,794)
Operating lease charges
200,615
260,000
5
Employees

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

2023
2022
Number
Number
Management and administration
10
8
Sales
69
67
Total
79
75

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
1,727,339
2,170,350
Social security costs
143,181
181,198
Pension costs
24,949
29,649
1,895,469
2,381,197
SCOPEWAY LIMITED
(T/A KOSHER KINGDOM)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 17 -
6
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
16,568
33,222
7
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
15,699
770
Other interest income
1,972
129
Total income
17,671
899
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
15,699
770
8
Interest payable and similar expenses
2023
2022
£
£
Other finance costs:
Other interest
258
-
0
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
490,346
435,381
Deferred tax
Origination and reversal of timing differences
38,407
15,727
Total tax charge
528,753
451,108
SCOPEWAY LIMITED
(T/A KOSHER KINGDOM)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
9
Taxation
(Continued)
- 18 -

The corporation tax rate has increased from 19% to 25% from 1 April 2023. The effective tax rate for the year ended 31 December 2023 was 3 months at 19% and 9 months at 25%.

 

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
2,188,323
2,289,176
Expected tax charge based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
514,694
434,943
Tax effect of expenses that are not deductible in determining taxable profit
3,645
6,348
Gains not taxable
-
0
(720)
Permanent capital allowances in excess of depreciation
(46,079)
(21,958)
Depreciation on assets not qualifying for tax allowances
18,086
16,768
Deferred tax
38,407
15,727
Taxation charge for the year
528,753
451,108
10
Dividends
2023
2022
£
£
Interim paid
2,761,697
3,390,548
SCOPEWAY LIMITED
(T/A KOSHER KINGDOM)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 19 -
11
Tangible fixed assets
Leasehold land and buildings
Computer equipment
Fixtures, fittings and equipment
Website costs
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 January 2023
134,833
236,411
895,750
11,464
18,498
1,296,956
Additions
16,341
12,592
157,331
2,100
-
0
188,364
At 31 December 2023
151,174
249,003
1,053,081
13,564
18,498
1,485,320
Depreciation and impairment
At 1 January 2023
65,692
208,253
659,031
10,700
6,166
949,842
Depreciation charged in the year
13,835
14,483
58,590
716
3,083
90,707
At 31 December 2023
79,527
222,736
717,621
11,416
9,249
1,040,549
Carrying amount
At 31 December 2023
71,647
26,267
335,460
2,148
9,249
444,771
At 31 December 2022
69,141
28,158
236,719
764
12,332
347,114
12
Stocks
2023
2022
£
£
Goods for resale
1,057,953
1,159,487
13
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
288,417
269,594
Other debtors
45,826
43,191
Prepayments and accrued income
253,003
186,866
587,246
499,651
SCOPEWAY LIMITED
(T/A KOSHER KINGDOM)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
14
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
1,207,890
1,436,270
Corporation tax
161,212
435,247
Other taxation and social security
99,248
99,827
Other creditors
201,980
150,645
Accruals and deferred income
52,935
50,564
1,723,265
2,172,553
15
Deferred taxation

Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
85,714
46,304
Other tax adjustments - tax rate change
18,901
19,904
104,615
66,208
2023
Movements in the year:
£
Liability at 1 January 2023
66,208
Charge to profit or loss
38,407
Liability at 31 December 2023
104,615
16
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
24,949
29,649

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

 

The amount of outstanding contributions at the reporting date was £2,558 (2022: £1,917).

SCOPEWAY LIMITED
(T/A KOSHER KINGDOM)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
17
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
2
2
2
2

 

18
Operating lease commitments
Lessee

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

2023
2022
£
£
Within one year
201,815
195,000
Between two and five years
794,198
780,000
In over five years
81,250
276,250
1,077,263
1,251,250
19
Related party transactions
Remuneration of key management personnel

The company's key management personnel are considered to be the directors. Their remuneration during the year is shown in note 6.

 

There are no other key management personnel.

20
Directors' transactions

Dividends totalling £nil (2022 - £38,150) were paid in the year in respect of shares held by the company's directors.

21
Ultimate controlling party

The company's immediate and ultimate undertaking is DLSR Holdings Limited, a company incorporated and registered in England and Wales. The consolidated accounts of the group can be obtained from Companies House.

The ultimate controlling interest is held equally by Shlomi Rokach and Daniel Langer.

SCOPEWAY LIMITED
(T/A KOSHER KINGDOM)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
22
Cash generated from operations
2023
2022
£
£
Profit for the year after tax
1,659,570
1,838,068
Adjustments for:
Taxation charged
528,753
451,108
Finance costs
258
-
0
Investment income
(17,671)
(899)
Gain on disposal of tangible fixed assets
-
(3,794)
Depreciation and impairment of tangible fixed assets
90,707
104,520
Movements in working capital:
Decrease/(increase) in stocks
101,534
(119,187)
Increase in debtors
(87,595)
(26,116)
(Decrease)/increase in creditors
(175,253)
303,483
Cash generated from operations
2,100,303
2,547,183
23
Analysis of changes in net funds
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
2,460,949
(1,596,726)
864,223
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