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Registration number: 06839420

SK Petroleum Limited

Annual Report and Financial Statements

for the Year Ended 31 December 2023

 

SK Petroleum Limited

Contents

Company Information

1

Strategic Report

2 to 3

Director's Report

4 to 5

Independent Auditor's Report

6 to 10

Profit and Loss Account

11

Balance Sheet

12

Statement of Changes in Equity

13

Statement of Cash Flows

14

Notes to the Financial Statements

15 to 21

 

SK Petroleum Limited

Company Information

Director

Mr Sanjiv Kular

Company secretary

Mrs Surinder Kular

Registered office

2 Ashley Drive
Osterley
Isleworth
Middlesex
TW7 5QA

Auditors

EKWilliams Accountants Limited
1 Pavilion Square
Westhoughton
Bolton
BL5 3AJ

 

SK Petroleum Limited

Strategic Report for the Year Ended 31 December 2023

The Director presents his strategic report for the year ended 31 December 2023.

Principal activity

The principal activity of the company is that of a service station commission agent

Fair review of the business

The year to 31 December 2023 showed turnover of £19,004,199 compared to £18,500,173 for the comparable year to 31 December 2022, which is an increase of £504,026 (3%). This is the main performance indicator for the company as shown in the KPI's below. The company has 12 sites in 2023 the comparable with the prior year of 12 in 2022 . The focus on the performance of each site during 2023 has helped deliver organic growth which the company strives for as a fundamental and periodically uses acquistion to help grow the overall business. The director is of the opinion that turnover is likely to be similar next year,

The company made a trading profit before tax of £218,081 on ordinary activities compared to last year's operating profit before tax of £123,738. Cost increases over 2022 & 2023 have had an impact on gross profit but, the decrease in drive offs in 2023 compared to 2022 has resulted in an increase in overall profitability. The volatility of the cost increases we have faced in previous years have started to settle down and the director anticipates the long term sales will continue to increease and gross profit will return to levels prior to the cost of living crisis. Between profits before tax and GP margin, the director uses these indicators as a way of ensuring the company remains in a viable and healthy position. Drops in either are highlighted by management and this has been used successfully during the year. This sets up management to assess the viability for further strategic expansion which they are always actively searching for the correct site to compliment the existing portfolio.

Cash at bank and in hand has increased by £112,913 during the year to £1,250,522 as at 31 December 2023, an increase of 10%. The director is more than confident that the level of liquid resources is adequate for the company's needs. Managements keep cash in the business so as to support any strategic aims of the business when new sites are selected for acquisition.

Impact of Brexit related risks

The directors continue to monitor the impact of Brexit and the geopolitical situation in Ukraine and other parts of the world on the company. The war in Ukraine has had a significant impact across the country with the rise in living costs effecting many people and spending habits, this situation is being closeley monitired by the directors and belive that the cost of living crisis is settling down and there has been no major impact on the trade of the company. The directors believe the going concern assumption to be appropriate given the company's working capital position post year end and a review of post year end forecasts compared to actual results.

The company's key financial and other performance indicators during the year were as follows:

Financial KPIs

Unit

2023

2022

Turnover

£

19,004,199

18,500,173

Gross profit %

%

19

19

Profit/(Loss) before tax

£

218,081

123,738

Given the straightforward nature of the business, the director is of the opinion that analysis using key performance indicators is not necessary for an understanding of the develepment, performance or position of the company.

 

SK Petroleum Limited

Strategic Report for the Year Ended 31 December 2023

Principal risks and uncertainties

Liquidity Risk

Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities. The company aims to mitigate liquidity and cash flow risk by managing working capital, assessing and monitoring the requirements of the business, whilst working with the company bankers to ensure that these requirements are met.

The Director acknowledges responsibility for the systems and controls of the company and continue to strengthen and develop those in place.

The Director is aware of the risks and uncertainties that the current economic climate and trading environment bring to the business. The Board of Directors meets on a regular basis to assess the risks and uncertainties facing the company and appropriate actions are taken to mitigate any impact on the company's performance.

Approved by the Board on 12 September 2024 and signed on its behalf by:

.........................................
Mr Sanjiv Kular
Director

 

SK Petroleum Limited

Director's Report for the Year Ended 31 December 2023

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

Director of the company

The director who held office during the year was as follows:

Mr Sanjiv Kular

The director is responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with Financial Reporting Standard 102 (The Financial Reporting Standard applicable in the UK and Ireland). Under company law the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the director is required to:

select suitable accounting policies and apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable Financial Reporting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

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

Business Review

A review of the business and its principal risks and uncertainties is set out in the strategic report on page 2 of these financial statements.

Employee involvement

Communication with employees has continued at all levels of the company, with the aim of ensuring employee views are taken into account when decisions are made that are likely to affect their interests and to ensure all employees are aware of the financial performance of their relevant office and the company as a whole. Regular communication with employees continues at all levels, either via internal meetings, electronic communication or via formal meetings.

Dividends

The company paid dividends of £94,000 during the year (2022 - £18,000) The director does not recommend a final dividend.

 

SK Petroleum Limited

Director's Report for the Year Ended 31 December 2023

Going concern

The financial statements have been prepared on the going concern basis.

At the date of approving the financial statements, the director has no reason to believe that the company does not have sufficient financial resources to continue in business and therefore the going concern basis of preparation is appropriate.

Disclosure of information to the auditors

The director has taken steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. The director confirms that there is no relevant information that he knows of and of which he knows the auditors are unaware.

Reappointment of auditors

The auditors EKWilliams Accountants Limited are deemed to be reappointed under section 487(2) of the Companies Act 2006.

Approved by the Board on 12 September 2024 and signed on its behalf by:

.........................................
Mr Sanjiv Kular
Director

 

SK Petroleum Limited

Independent Auditor's Report to the Members of SK Petroleum Limited

Opinion

We have audited the financial statements of SK Petroleum Limited (the 'company') for the year ended 31 December 2023, which comprise the Profit and Loss Account, Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

give a true and fair view of the state of the company's affairs as at 31 December 2023 and of its 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.

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 responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were authorised for issue.

Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report.

Other information

The director are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. 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.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

 

SK Petroleum Limited

Independent Auditor's Report to the Members of SK Petroleum Limited

Opinion on other matter prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

the information given in the Strategic Report and Director's Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and Director's Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of our 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 and the Director's Report.

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

adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

the financial statements are not in agreement with the accounting records and returns; or

certain disclosures of director's remuneration specified by law are not made; or

we have not received all the information and explanations we require for our audit.

Responsibilities of the director

As explained more fully in the Directors Report [set out on page 3], the director is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the director determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the director is responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the company or to cease operations, or have no realistic alternative but to do so.

 

SK Petroleum Limited

Independent Auditor's Report to the Members of SK Petroleum Limited

Auditor 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

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:

Our audit procedures were primarily directed towards testing the accounting systems in operation upon which we have based our assessment of the financial statements for the year ended 31 December 2023.

We planned our audit so that we would have a reasonable expectation of detecting material misstatements in the financial statements resulting from irregularities, fraud or non-compliance with laws or regulations.

Extent to which the audit was considered capable of detecting irregularities, including fraud

 

SK Petroleum Limited

Independent Auditor's Report to the Members of SK Petroleum Limited

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

• The engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations.
• Enquiring of management whether they are aware of any non-compliance with laws and regulations.
• Enquiring of management whether they are aware of any actual, suspected or alleged fraud.
• Enquiring of management whether they had internal controls established to mitigate risk related to fraud or non-compliance with laws and regulations.
• Discussions amongst the engagement team on how and where fraud might occur in the financial statements and any potential indicators of fraud. As part of this discussion, we identified potential for fraud in the following areas; posting of unusual journal and fraudulent revenue recognition.
• Obtaining an understanding of the regulatory framework the company operates in focusing on those laws and regulations that had a direct effect on the financial statements or that had a fundamental effect on the operations. The key laws and regulations that we considered in this context included; the financial framework the company operates under (FRS102) , the UK Companies Act, tax legislation, environmental legislation and licensing legislation.

Audit response to risks identified
Fraud due to management override
To address the risk of fraud through management bias and override of controls, we:
• Performed analytical procedures to identify any unusual or unexpected relationships.
• Audited the risk of management override of controls, including through testing journal entries for appropriateness.
• Assessed whether judgements and assumptions made in determining the accounting estimates included in the financial statements showed indications of potential bias; and
• Investigated the rationale behind any significant or unusual transactions included in the financial statements.

Fraudulent revenue recognition
To address the risk of fraudulent revenue recognition we:
• Performed analytical procedures on turnover to identify any unusual or unexpected relationships.
• Performed testing on a sample of turnover transactions that occurred during the financial year.
• Performed cut-off testing on turnover around the year end.

Irregularities and non-compliance with laws and regulations
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but are not limited to:
• Agreeing financial statement disclosures to underlying supporting documentation.
• Enquiring of management as to actual and potential litigation claims they are aware of.
• Reviewing legal costs nominals for evidence of potential litigation or claims.
• Reviewing correspondence with regulators for evidence of non-compliance with laws and regulations.

The test nature and other inherent limitations of an audit, together with the inherent limitations of any accounting and internal control system, mean that there is an unavoidable risk that even some material misstatements in respect of irregularities may remain undiscovered even though the audit is properly planned and performed in accordance with ISAs (UK). Furthermore, the more removed that laws and regulations are from financial transactions, the less likely that we would become aware of non-compliance.

Our examination should therefore not be relied upon to disclose all such material misstatements or frauds, errors or instances of non-compliance that might exist. The responsibility for the detection and prevention of fraud, error and non-compliance with laws or regulations rests with the directors.

 

SK Petroleum Limited

Independent Auditor's Report to the Members of SK Petroleum Limited

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our 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.

......................................
Mr Peter Brassington ACA FCCA (Senior Statutory Auditor)
For and on behalf of EKWilliams Accountants Limited, Statutory Auditor

1 Pavilion Square
Westhoughton
Bolton
BL5 3AJ

12 September 2024

 

SK Petroleum Limited

Statement of Comprehensive Income for the Year Ended 31 December 2023

Note

2023
 £

2022
 £

Turnover

3

19,004,199

18,500,173

Cost of sales

 

(15,392,263)

(15,003,795)

Gross profit

 

3,611,936

3,496,378

Administrative expenses

 

(3,393,855)

(3,372,640)

Operating profit

4

218,081

123,738

Profit on ordinary activities before taxation

 

218,081

123,738

Taxation

8

(50,977)

(23,181)

Profit for the financial year

 

167,104

100,557

The above results were derived from continuing operations.

The company has no recognised gains or losses for the year other than the results above.

 

SK Petroleum Limited

(Registration number: 06839420)
Statement of Financial Position as at 31 December 2023

Note

2023
£

2022
£

Fixed assets

 

Tangible assets

9

1,080

1,350

Current assets

 

Stocks

10

646,729

595,556

Debtors

11

19,456

26,302

Cash at bank and in hand

 

1,250,522

1,137,609

 

1,916,707

1,759,467

Creditors: Amounts falling due within one year

13

(1,402,604)

(1,318,738)

Net current assets

 

514,103

440,729

Net assets

 

515,183

442,079

Capital and reserves

 

Called up share capital

100

100

Retained earnings

515,083

441,979

Shareholders' funds

 

515,183

442,079

Approved and authorised by the director on 12 September 2024
 

.........................................

Mr Sanjiv Kular

Director

 

SK Petroleum Limited

Statement of Changes in Equity for the Year Ended 31 December 2023

Share capital
£

Profit and loss account
£

Total
£

At 1 January 2023

100

441,979

442,079

Profit for the year

-

167,104

167,104

Total comprehensive income

-

167,104

167,104

Dividends

-

(94,000)

(94,000)

At 31 December 2023

100

515,083

515,183

Share capital
£

Retained earnings
£

Total
£

At 1 January 2022

100

359,422

359,522

Profit for the year

-

100,557

100,557

Dividends

-

(18,000)

(18,000)

At 31 December 2022

100

441,979

442,079

 

SK Petroleum Limited

Statement of Cash Flows for the Year Ended 31 December 2023

Note

2023
£

2022
£

Cash flows from operating activities

Profit for the year

 

167,104

100,557

Adjustments to cash flows from non-cash items

 

Depreciation and amortisation

4

270

338

Income tax expense

8

50,977

23,181

 

218,351

124,076

Working capital adjustments

 

Increase in stocks

10

(51,173)

(93,147)

Decrease in trade debtors

11

6,846

11,538

Increase in trade creditors

13

56,232

175,147

Cash generated from operations

 

230,256

217,614

Income taxes paid

8

(23,343)

(53,516)

Net cash flow from operating activities

 

206,913

164,098

Cash flows from investing activities

 

Acquisitions of tangible assets

-

(837)

Cash flows from financing activities

 

Dividends paid

(94,000)

(18,000)

Net increase in cash and cash equivalents

 

112,913

145,261

Cash and cash equivalents at 1 January

 

1,137,609

992,348

Cash and cash equivalents at 31 December

 

1,250,522

1,137,609

 

SK Petroleum Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
2 Ashley Drive
Osterley
Isleworth
Middlesex
TW7 5QA
 

The principal place of business is:
209 High Street
West Drayton
UB7 7QP
 

These financial statements were authorised for issue by the director on 12 September 2024.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and with the Companies Act 2006.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Presentational currency and functional currency are both Pound Sterling.

Going concern

The financial statements have been prepared on a going concern basis.

Judgements

In the directors' opinion there are no significant judgements that have been made in the process of applying the accounting policies that significantly affect the amounts recognised in the financial statements.

Key sources of estimation uncertainty

In the directors' opinion there are no sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities within the next financial year.

 

SK Petroleum Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and commissions in the ordinary course of the Company’s activities which is wholly derived from within the UK. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

The Company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the Company's activities.

Tax

The tax expense for the period comprises current tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Plant and machinery

20% Reducing balance

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

 

SK Petroleum Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

Financial instruments

Recognition and measurement
The company has only entered into basic financial instrument transactions that result in the recognition of financial assets and liabilities such as trade and other debtors and creditors. Where these financial assets and liabilities are expected to be settled with one year, they are measured at the undiscounted amount of cash or other consideration that is expected to be paid or received. Financial assets or liabilities that are expected to be settled beyond one year are initially and subsequently measured at amortised cost using the effective interest rate method.

Financial assets and liabilities are only set off in the statement of financial position where there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or the asset and liability will be settled simultaneously.

 Impairment
Financial assets that are measured at cost, or the amount of cash or other consideration that is expected to be paid or received, are assessed at the end of each reporting period for evidence of impairment. If such evidence exists then an impairment loss is recognised in the statement of comprehensive income.

3

Turnover

The analysis of the company's revenue for the year from continuing operations is as follows:

2023
 £

2022
 £

Sale of goods

17,976,105

17,395,440

Commissions received

1,028,094

1,104,733

19,004,199

18,500,173

All turnover has been derived from UK operations.

4

Operating profit

Arrived at after charging/(crediting)

2023
 £

2022
 £

Depreciation expense

270

338

Auditor's remuneration - The audit of the company's annual accounts

5,200

5,200

5

Staff costs

The aggregate payroll costs (including director's remuneration) were as follows:

2023
 £

2022
 £

Wages and salaries

2,833,991

2,681,809

Social security costs

187,199

188,121

Pension costs, defined contribution scheme

39,337

31,832

Other employee expense

4,275

4,500

3,064,802

2,906,262

 

SK Petroleum Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

The average number of persons employed by the company (including the director) during the year, analysed by category was as follows:

2023
No.

2022
No.

Administration and support

15

15

Sales

134

134

149

149

6

Director's remuneration

The director's remuneration for the year was as follows:

2023
 £

2022
 £

Remuneration

12,000

12,126

Contributions paid to money purchase schemes

461

461

12,461

12,587

During the year the number of directors who were receiving benefits and share incentives was as follows:

2023
 No.

2022
 No.

Accruing benefits under money purchase pension scheme

1

1

7

Auditors' remuneration

2023
 £

2022
 £

Audit of the financial statements

5,200

5,200


 

8

Taxation

Tax charged/(credited) in the income statement

2023
 £

2022
 £

Current taxation

UK corporation tax

50,977

23,343

Deferred taxation

Arising from origination and reversal of timing differences

-

(162)

Tax expense in the income statement

50,977

23,181

 

SK Petroleum Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

The tax on profit before tax for the year is the same as the standard rate of corporation tax in the UK ( 2023 - the same as the standard rate of corporation tax in the UK) of 25% (2022 - 19%).

The differences are reconciled below:

2023
£

2022
£

Profit before tax

218,081

123,738

Corporation tax at standard rate

54,520

23,510

Deferred tax credit from unrecognised tax loss or credit

-

(162)

Tax increase/(decrease) from effect of capital allowances and depreciation

37

(167)

Tax decrease from changes in tax provisions due to legislation

(3,580)

-

Total tax charge

50,977

23,181

9

Tangible assets

Plant and Machinery
£

Total
£

Cost or valuation

At 1 January 2023

10,325

10,325

At 31 December 2023

10,325

10,325

Depreciation

At 1 January 2023

8,975

8,975

Charge for the year

270

270

At 31 December 2023

9,245

9,245

Carrying amount

At 31 December 2023

1,080

1,080

At 31 December 2022

1,350

1,350

10

Stocks

2023
 £

2022
 £

Finished goods and goods for resale

646,729

595,556

11

Debtors

Current

2023
£

2022
£

Trade debtors

19,456

26,302

 

SK Petroleum Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

12

Cash and cash equivalents

2023
 £

2022
 £

Cash on hand

420

420

Cash at bank

1,250,102

1,137,189

1,250,522

1,137,609

13

Creditors

Note

2023
 £

2022
 £

Due within one year

 

Trade creditors

 

822,567

833,551

Amounts due to related parties

34,830

71,329

Social security and other taxes

 

271,712

186,554

Outstanding defined contribution pension costs

 

12,776

3,672

Other payables

 

202,552

193,099

Accrued expenses

 

7,190

7,190

Corporation tax liability

8

50,977

23,343

 

1,402,604

1,318,738

The director has provided a personal guarantee in relation to £220,000 of the trade creditors.

Lloyds Bank PLC hold a fixed and floating charge over all of the assets of the business, this was registered at at companies house on 14th November 2019.

14

Pension and other schemes

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £39,337 (2022 - £31,832).

Contributions totalling £12,776 (2022 - £3,672) were payable to the scheme at the end of the year and are included in creditors.

 

SK Petroleum Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

15

Share capital

Allotted, called up and fully paid shares

 

2023

2022

 

No.

£

No.

£

Ordinary Shares of £1 each

100

100

100

100

         

16

Control

The ultimate controlling person of the company is the company director, Mr S Kular, who between him and his family members own the entire issued share capital of the company.