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Registration number: 01154129

Coastguard Road Limited

Annual Report and Financial Statements

for the Year Ended 31 December 2023

 

Coastguard Road Limited
(Registration number: 01154129)

Contents

Company Information

1

Strategic Report

2

Directors' Report

3 to 4

Statement of Directors' Responsibilities

5

Independent Auditor's Report

6 to 9

Profit and Loss Account

10

Statement of Comprehensive Income

10

Balance Sheet

11

Statement of Changes in Equity

12

Statement of Cash Flows

13

Notes to the Financial Statements

14 to 26

 

Coastguard Road Limited
(Registration number: 01154129)

Company Information

Directors

Mr N Fulls

Mr H J Fulls

Mrs J Fulls

Mr H M Hunt

Mr S M Fulls

Company secretary

Mrs J Fulls

Registered office

Devonshire Road
Heathpark
Honiton
Devon
EX14 1SD

Auditors

Thompson Jenner LLP
Statutory Auditors
1 Colleton Crescent
Exeter
Devon
EX2 4DG

 

Coastguard Road Limited
(Registration number: 01154129)

Strategic Report for the Year Ended 31 December 2023

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

Fair review of the business

We consider that our key financial performance indicators are those that communicate the financial performance and strength of the company as a whole, these being turnover and profit margins.

At the year end the company had Net Assets of £2,405,004.

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

Financial KPIs

Unit

2023

2022

Turnover

£

13,350,101

14,658,503

Gross profit margin

%

60

60

Profit before tax

£

513,379

869,453

Principal risks and uncertainties

The board of directors undertake regular reviews of the company and they have identified that the principal risk faced by the company is the uncertainty over future consumer spending in the wider economy.

All products are designed in the UK and the company has carefully selected overseas manufacturing for all production requirements. The Board manages any risk of disruption by identifying key long-term suppliers, reviewing any risk which may impact the ability of the company to carry out its operational functions, taking appropriate steps to manage these risks.

Decision making

The board of directors promotes the success and implementation of the company strategy, ensuring that a robust plan is in place with opportunities to adapt to an ever-changing market. A strategic board is in place to create strategies to ensure the company is flexible, resilient, and competitive within the footwear industry, ensuring the customer is at the forefront of all thinking.

Employee engagement

The company believes that our workforce is pivotal to the ongoing success of the business. To ensure the company is consistently delivering improvements to our employees, an annual survey is carried out with 2023 providing our highest score to date, consistent above industry standards.

Community and Environmental

The company is passionate about supporting our community and limiting the environmental impact of all its activities. We work closely with local and national charities, support local events and work with partners to recycle products to reduce environmental impacts. Sustainability is key to the company with targets set with all suppliers focusing on ethical, diversity and environmental goals.

Approved and authorised by the Board on 19 September 2024 and signed on its behalf by:
 

.........................................
Mr N Fulls
Director

 

Coastguard Road Limited
(Registration number: 01154129)

Directors' Report for the Year Ended 31 December 2023

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

Principal activity

The principal activity of the company is the sale of footwear and related merchandise.

Directors of the company

The directors who held office during the year were as follows:

Mr N Fulls

Mr H J Fulls

Mrs J Fulls - Company secretary and director

Mr H M Hunt

Mr S M Fulls

Financial instruments

Objectives and policies

The company's principal financial instruments comprise the bank balances, directors' loans, trade creditors, hire purchase agreements and forward exchange rate options. The purpose of these instruments is to raise funds for the company’s operations and reduce uncertainty over future currency exchange movements.

Price risk, credit risk, liquidity risk and cash flow risk

The company buys foreign currency options in advance in order to minimise their exposure to price risk.

Hire purchase agreements are provided by financial institutions at fixed rates of interest to provide financing for company assets. The company ensures that there are sufficient funds to meet these obligations.

Trade creditor’s liquidity risk is managed by ensuring that sufficient funds will be available to meet amounts as they fall due.

Future developments

The company has a long term strategy of organic growth through customer acquisition, both online and instore. Digital marketing strategy is a core activity to engage with the customer, whilst catalogue distribution is utilised to support customer acquisition with 1.3 million planned distribution this year (2.4 million – 2023). A reduction in printed marketing has been replaced with an increase in digital opportunities where a higher customer response has been apparent over multiple years. Partnerships with like-minded brands are also part of company strategy.

The company took the decision to reduce and modernise its store portfolio and announced the closure of 7 stores (all to be closed by March 2024). The Highstreet channel remains a key driving force for the brand and modernisation is underway for the remaining 19 stores.

Online sales continue to represent +66% of the revenue with a new channel in our outlet site which will become an additional revenue stream whilst providing a platform to transition end of season stock.

 

Coastguard Road Limited
(Registration number: 01154129)

Directors' Report for the Year Ended 31 December 2023

Disclosure of information to the auditors

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.

Approved and authorised by the Board on 19 September 2024 and signed on its behalf by:
 

.........................................
Mr N Fulls
Director

 

Coastguard Road Limited
(Registration number: 01154129)

Statement of Directors' Responsibilities

The directors acknowledge their responsibilities 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:

select suitable accounting policies and apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable United Kingdom Accounting 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 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 and in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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.

 

Coastguard Road Limited
(Registration number: 01154129)

Independent Auditor's Report to the Members of Coastguard Road Limited

Opinion

We have audited the financial statements of Coastguard Road 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 directors with respect to going concern are described in the relevant sections of this report.

Other information

The directors 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.

 

Coastguard Road Limited
(Registration number: 01154129)

Independent Auditor's Report to the Members of Coastguard Road Limited

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.

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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

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

Matters on which we are required to report by exception

In the light of 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 Directors' 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 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 Statement of Directors' Responsibilities [set out on page 5], 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 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.

 

Coastguard Road Limited
(Registration number: 01154129)

Independent Auditor's Report to the Members of Coastguard Road Limited

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:

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;

we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the footwear retail sector;

we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation, data protection, anti-bribery, employment, environmental, fire safety, and health and safety legislation;

we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management, reviewing licenses, certificates and relevant correspondence including the inspection of legal correspondence; and

identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

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

making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and

considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

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

performed analytical procedures to identify any unusual or unexpected relationships;

tested journal entries to identify unusual transactions;

assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and

investigated the rationale behind significant or unusual transactions.

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

agreeing financial statement disclosures to underlying supporting documentation;

reading the minutes of meetings of those charged with governance;

enquiring of management as to actual and potential litigation and claims; and

 

Coastguard Road Limited
(Registration number: 01154129)

Independent Auditor's Report to the Members of Coastguard Road Limited

reviewing correspondence with HMRC, relevant regulators and the company’s legal advisers.

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: 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.

......................................
Jonathan Westley (Senior Statutory Auditor)
For and on behalf of Thompson Jenner LLP, Statutory Auditor

1 Colleton Crescent
Exeter
Devon
EX2 4DG

25 September 2024

 

Coastguard Road Limited
(Registration number: 01154129)

Profit and Loss Account for the Year Ended 31 December 2023

Note

2023
£

2022
£

Turnover

3

13,350,101

14,658,503

Cost of sales

 

(5,356,843)

(5,855,664)

Gross profit

 

7,993,258

8,802,839

Administrative expenses

 

(7,207,450)

(7,731,646)

Other operating income

4

1,206

1,270

Operating profit

5

787,014

1,072,463

Other interest receivable and similar income

6

6,784

-

Interest payable and similar expenses

7

(280,419)

(203,010)

Profit before tax

 

513,379

869,453

Taxation

11

(122,301)

(163,113)

Profit for the financial year

 

391,078

706,340

The above results were derived from continuing operations.

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

Statement of Comprehensive Income for Year Ended 31 December 2023

2023
£

2022
£

Profit for the year

391,078

706,340

Total comprehensive income for the year

391,078

706,340

 

Coastguard Road Limited
(Registration number: 01154129)

Balance Sheet as at 31 December 2023

Note

2023
£

2022
£

Fixed assets

 

Tangible assets

13

766,465

852,824

Current assets

 

Stocks

14

2,895,619

3,204,297

Debtors

15

685,944

658,632

Cash at bank and in hand

16

1,723,882

1,788,410

 

5,305,445

5,651,339

Creditors: Amounts falling due within one year

17

(3,509,630)

(3,367,241)

Net current assets

 

1,795,815

2,284,098

Total assets less current liabilities

 

2,562,280

3,136,922

Provisions for liabilities

18

(157,276)

(171,620)

Net assets

 

2,405,004

2,965,302

Capital and reserves

 

Called up share capital

20

8,695

8,695

Share premium reserve

15,790

15,790

Capital redemption reserve

2,000

2,000

Profit and loss account

2,378,519

2,938,817

Total equity

 

2,405,004

2,965,302

Approved and authorised by the Board on 19 September 2024 and signed on its behalf by:
 

.........................................
Mr N Fulls
Director

 

Coastguard Road Limited
(Registration number: 01154129)

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

Share capital
£

Share premium
£

Capital redemption reserve
£

Retained earnings
£

Total
£

At 1 January 2023

8,695

15,790

2,000

2,938,817

2,965,302

Profit for the year

-

-

-

391,078

391,078

Dividends

-

-

-

(951,376)

(951,376)

At 31 December 2023

8,695

15,790

2,000

2,378,519

2,405,004

Share capital
£

Share premium
£

Capital redemption reserve
£

Profit and loss account
£

Total
£

At 1 January 2022

8,695

15,790

2,000

3,572,301

3,598,786

Profit for the year

-

-

-

706,340

706,340

Dividends

-

-

-

(1,339,824)

(1,339,824)

At 31 December 2022

8,695

15,790

2,000

2,938,817

2,965,302

 

Coastguard Road Limited
(Registration number: 01154129)

Statement of Cash Flows for the Year Ended 31 December 2023

Note

2023
 £

2022
 £

Cash flows from operating activities

Profit for the year

 

391,078

706,340

Adjustments to cash flows from non-cash items

 

Depreciation and amortisation

5

172,596

194,815

Loss on disposal of tangible assets

42,102

-

Finance income

6

(6,784)

-

Finance costs

7

280,419

203,010

Corporation tax expense

11

122,301

163,113

 

1,001,712

1,267,278

Working capital adjustments

 

Decrease in stocks

14

308,678

36,398

Increase in trade debtors

15

(27,312)

(179,963)

Increase/(decrease) in trade creditors

17

48,969

(516,771)

Cash generated from operations

 

1,332,047

606,942

Income taxes paid

11

(88,586)

(180,641)

Net cash flow from operating activities

 

1,243,461

426,301

Cash flows from investing activities

 

Interest received

6

6,784

-

Acquisitions of tangible assets

(132,931)

(122,209)

Proceeds from sale of tangible assets

 

4,592

-

Net cash flows from investing activities

 

(121,555)

(122,209)

Cash flows from financing activities

 

Interest paid

7

(280,419)

(203,010)

Proceeds from other borrowing draw downs

 

1,262,653

1,933,504

Repayment of other borrowing

 

(1,217,292)

(1,461,337)

Dividends paid

23

(951,376)

(1,339,824)

Net cash flows from financing activities

 

(1,186,434)

(1,070,667)

Net decrease in cash and cash equivalents

 

(64,528)

(766,575)

Cash and cash equivalents at 1 January

 

1,788,410

2,554,985

Cash and cash equivalents at 31 December

 

1,723,882

1,788,410

 

Coastguard Road Limited
(Registration number: 01154129)

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 the United Kingdom.

The address of its registered office is:
Devonshire Road
Heathpark
Honiton
Devon
EX14 1SD

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 United Kingdom and Republic of Ireland and 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.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts and after eliminating sales within the company.

The company recognises revenue when the amount of revenue can be reliably measured and it is probable that future economic benefits will flow to the entity.

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rates prevailing on the initial transaction dates.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

Tax

The tax expense for the period comprises current and deferred tax.

The current 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.

 

Coastguard Road Limited
(Registration number: 01154129)

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

Deferred tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

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 less estimated residual value of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Fixtures and fittings

5% - 33% straight line

Cars

Over 3 years

Vans

Over 5 years

Intangible assets

Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the company’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class

Amortisation method and rate

Goodwill

10 years

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the debtors.

 

Coastguard Road Limited
(Registration number: 01154129)

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

Stocks

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

The cost of finished goods 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, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price; the impairment loss is recognised immediately in profit or loss.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Profit and Loss Account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the Balance Sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the Profit and Loss Account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

 

Coastguard Road Limited
(Registration number: 01154129)

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

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

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.

3

Turnover

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

2023
£

2022
£

Sale of goods

13,350,101

14,658,503

4

Other operating income

The analysis of the company's other operating income for the year is as follows:

2023
£

2022
£

Miscellaneous other operating income

1,206

1,270

5

Operating profit

Arrived at after charging/(crediting)

2023
£

2022
£

Depreciation expense

172,596

184,982

Amortisation expense

-

9,833

6

Other interest receivable and similar income

2023
£

2022
£

Interest income on bank deposits

1,928

-

Other finance income

4,856

-

6,784

-

 

Coastguard Road Limited
(Registration number: 01154129)

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

7

Interest payable and similar expenses

2023
£

2022
£

Interest on bank overdrafts and borrowings

-

582

Interest on obligations under finance leases and hire purchase contracts

-

78

Interest expense on other finance liabilities

280,419

202,350

280,419

203,010

8

Staff costs

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

2023
 £

2022
 £

Wages and salaries

2,706,443

2,552,912

Social security costs

200,955

190,665

Pension costs, defined contribution scheme

286,305

278,763

Other employee expense

116,247

116,720

3,309,950

3,139,060

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

2023
No.

2022
No.

Administration and support

23

22

Sales

126

125

Marketing

10

10

Distribution

15

16

174

173

 

Coastguard Road Limited
(Registration number: 01154129)

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

9

Directors' remuneration

The directors' remuneration for the year was as follows:

2023
£

2022
£

Remuneration

112,828

106,416

Contributions paid to money purchase schemes

120,000

120,000

232,828

226,416

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

3

3

10

Auditors' remuneration

2023
£

2022
£

Audit of the financial statements

11,000

10,000


 

11

Taxation

Tax charged/(credited) in the profit and loss account

2023
£

2022
£

Current taxation

UK corporation tax

136,645

150,786

UK corporation tax adjustment to prior periods

-

(2,049)

136,645

148,737

Deferred taxation

Arising from origination and reversal of timing differences

(14,344)

14,376

Tax expense in the income statement

122,301

163,113

 

Coastguard Road Limited
(Registration number: 01154129)

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

The tax on profit before tax for the year is lower than the standard rate of corporation tax in the UK (2022 - lower than the standard rate of corporation tax in the UK) of 23.52% (2022 - 19%).

The differences are reconciled below:

2023
 £

2022
 £

Profit before tax

513,379

869,453

Corporation tax at effective rate

120,750

165,196

Effect of expense not deductible in determining taxable profit

3,209

163

Deferred tax expense (credit) relating to changes in tax rates

22

-

Deferred tax expense (credit) from unrecognised temporary difference from a prior period

(819)

3,450

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

(861)

(3,647)

Other tax effects for reconciliation between accounting profit and tax expense (income)

-

(2,049)

Total tax charge

122,301

163,113

Deferred tax

Deferred tax assets and liabilities

2023

Liability
£

Timing difference on capital allowances & general provision

157,276

157,276

2022

Liability
£

Timing difference on capital allowances & general provision

171,620

171,620

 

Coastguard Road Limited
(Registration number: 01154129)

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

12

Intangible assets

Goodwill
 £

Total
£

Cost or valuation

At 1 January 2023

260,000

260,000

At 31 December 2023

260,000

260,000

Amortisation

At 1 January 2023

260,000

260,000

At 31 December 2023

260,000

260,000

Carrying amount

At 31 December 2023

-

-

13

Tangible assets

Furniture, fittings and equipment
 £

Motor vehicles
 £

Total
£

Cost or valuation

At 1 January 2023

2,643,177

246,699

2,889,876

Additions

101,680

31,251

132,931

Disposals

(99,140)

(20,995)

(120,135)

At 31 December 2023

2,645,717

256,955

2,902,672

Depreciation

At 1 January 2023

1,932,739

104,313

2,037,052

Charge for the year

141,054

31,542

172,596

Eliminated on disposal

(60,195)

(13,246)

(73,441)

At 31 December 2023

2,013,598

122,609

2,136,207

Carrying amount

At 31 December 2023

632,119

134,346

766,465

At 31 December 2022

710,438

142,386

852,824

14

Stocks

2023
£

2022
£

Finished goods and goods for resale

2,895,619

3,204,297

 

Coastguard Road Limited
(Registration number: 01154129)

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

15

Debtors

2023
£

2022
£

Trade debtors

75,987

13,849

Other debtors

189,464

221,163

Prepayments

420,493

423,620

Total current trade and other debtors

685,944

658,632

16

Cash and cash equivalents

2023
£

2022
£

Cash on hand

15,061

11,050

Cash at bank

1,208,821

1,777,360

Short-term deposits

500,000

-

1,723,882

1,788,410

17

Creditors

Note

2023
£

2022
£

Due within one year

 

Loans and borrowings

21

2,125,877

2,080,516

Trade creditors

 

424,716

335,963

Social security and other taxes

 

586,970

583,760

Other creditors

 

15,449

12,347

Accruals

 

219,973

266,069

Corporation tax liability

11

136,645

88,586

 

3,509,630

3,367,241

18

Provisions for liabilities

Deferred tax
£

Total
£

At 1 January 2023

171,620

171,620

Increase (decrease) in existing provisions

(14,344)

(14,344)

At 31 December 2023

157,276

157,276

 

Coastguard Road Limited
(Registration number: 01154129)

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

19

Pension and other schemes

Defined contribution pension scheme

The company operates four separate pension schemes. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £286,305 (2022 - £278,763).

Contributions totalling £Nil (2022 - £Nil) were payable to the scheme at the end of the year and are included in creditors.

20

Share capital

Allotted, called up and fully paid shares

 

2023

2022

 

No.

£

No.

£

Ordinary A shares of £1 each

2,000

2,000

2,000

2,000

Ordinary B shares of £1 each

2,000

2,000

2,000

2,000

Ordinary C shares of £1 each

2,000

2,000

2,000

2,000

Ordinary D shares of £1 each

2,000

2,000

2,000

2,000

Ordinary E shares of £1 each

695

695

695

695

 

8,695

8,695

8,695

8,695

Rights, preferences and restrictions

Ordinary shares have the following rights, preferences and restrictions:
There are no restrictions on the distribution of dividends and the repayment of capital for all share classes. All share classes carry the same voting rights of 1 vote per share.

21

Loans and borrowings

2023
£

2022
£

Current loans and borrowings

Other borrowings

2,125,877

2,080,516

22

Obligations under leases and hire purchase contracts

Operating leases

The total amount of financial commitments not included in the balance sheet is £7,388,478 (2022 - £7,567,265). This represents the total future commitments in respect of the operating leases on the company's retail outlets and Head office.

 

Coastguard Road Limited
(Registration number: 01154129)

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

The total of future minimum lease payments is as follows:

2023
£

2022
£

Not later than one year

718,329

679,044

Later than one year and not later than five years

1,600,703

1,478,575

Later than five years

5,069,446

5,409,646

7,388,478

7,567,265

Included within total operating lease commitments is £6,770,446 (2022 - £7,110,646) due to the Fulls Pension Scheme, a related party, in respect of the operating lease on the company's Head Office.

The amount of non-cancellable operating lease payments recognised as an expense during the year was £862,777 (2022 - £892,927).

23

Dividends

Interim dividends paid

   

2023
£

 

2022
£

Interim dividend of £94.11 (2022 - £137.55) per each Ordinary A share

 

188,220

 

275,100

Interim dividend of £72.00 (2022 - £108.00) per each Ordinary B share

 

144,000

 

216,000

Interim dividend of £122.67 (2022 - £171.10) per each Ordinary C share

 

245,340

 

342,200

Interim dividend of £118.68 (2022 - £167.03) per each Ordinary D share

 

237,360

 

334,060

Interim dividend of £196.34 (2022 - £248.15) per each Ordinary E share

 

136,456

 

172,464

   

951,376

 

1,339,824

24

Commitments

Capital commitments

The total amount contracted for but not provided in the financial statements was £Nil (2022 - £32,049).

 

Coastguard Road Limited
(Registration number: 01154129)

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

25

Related party transactions

Key management compensation

2023
£

2022
£

Salaries and other short term employee benefits

387,923

365,378

Dividends paid to directors

   

2023
£

 

2022
£

Mr N Fulls

       

Interim dividends paid

 

122,670

 

171,100

         

Mr H J Fulls

       

Interim dividends paid

 

94,110

 

137,550

         

Mrs J Fulls

       

Interim dividends paid

 

94,110

 

137,550

         

Mr H M Hunt

       

Interim dividends paid

 

136,456

 

172,464

         

Mr S M Fulls

       

Interim dividends paid

 

118,680

 

167,030

         

Summary of transactions with other related parties

Included in donations is £53,520 (2022 - £50,520) paid by the company to The Moshulu Charitable Trust, a registered charity controlled by three of the directors, Mr H J Fulls, Mr N Fulls and Mr S M Fulls.

Included in rent is £340,200 (2022: £340,200) made by the company to Fulls Pension Scheme. Mr H J Fulls, Mr N Fulls and Mr S M Fulls are among the beneficiaries of the scheme.

 

 

Coastguard Road Limited
(Registration number: 01154129)

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

Loans from related parties

2023

Key management
£

Total
£

At start of period

1,251,491

1,251,491

Advanced

611,997

611,997

Repaid

(638,868)

(638,868)

Interest transactions

139,706

139,706

At end of period

1,364,326

1,364,326

2022

Key management
£

Total
£

At start of period

556,549

556,549

Advanced

1,215,739

1,215,739

Repaid

(595,183)

(595,183)

Interest transactions

74,386

74,386

At end of period

1,251,491

1,251,491

Terms of loans from related parties

Loans from key management carry an interest rate of 8% above bank base rate per annum and are repayable on demand.