Company registration number 04418481 (England and Wales)
H.F.S. TARPORLEY LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024
H.F.S. TARPORLEY LIMITED
COMPANY INFORMATION
Directors
Mr P R Cowap
Mr E R Cowap
Mrs H Cowap
Mr R Cowap
Secretary
Mrs H Cowap
Company number
04418481
Registered office
The Hollies
Forest Road
Little Budworth
Tarporley
Cheshire
CW6 9ES
Auditor
Mitchell Charlesworth (Audit) Limited
24 Nicholas Street
Chester
CH1 2AU
H.F.S. TARPORLEY LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 26
H.F.S. TARPORLEY LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 JANUARY 2024
- 1 -

The directors present the strategic report for the year ended 31 January 2024.

Review of the business

The company's principle function continues to be farm shop retailing, although the accompanying gift barn and takeaway, remain strong supporting functions of the business.

 

The new greenhouse is now a fully functional and complimentary extension to the retailing area and it’s changing seasonal contents have encouraged sales to flourish throughout the year. It remains forecasted that this space will continue to accommodate increasing customer numbers and in turn support the company’s ongoing growth. To further accommodate customer numbers, we have developed an additional car parking area at the Little Budworth site.

 

The Hollies House at Little Budworth has been refurbished and now offers items to compliment living spaces, such as paints, faux flowers, crockery and leisure clothing.

 

Comparative KPI’s show increased turnover compared to the prior year and a strong gross profit. Net profit is showing a decrease on prior year with the main reasons being the investment to site improvements and renovation works carried out, inflated insurance costs, additional recruitment and higher business rates. The budget for next year is geared towards achieving improved efficiencies along with ongoing growth and the first quarterly management accounts show that the company is on target to reach budget by the end of January 2025.

Principal risks and uncertainties

This year has been challenging due to the impacts of UK inflation with rising stock costs, rising insurance costs, rising electricity costs, rising fuel costs and increased instances of theft.

The company continues to watch inflation and actively seeks to remain both informed and abreast of government policies and decisions.

The company continues to internally audit and streamline its purchasing and pricing policies, along with its stock levels, to control costs. The company has also installed additional CCTV and surveillance systems, along with magnetic security tag systems, to protect itself against stock loss.

Development and performance

Ongoing plans include additional refurbishment and development of our main farm shops.

Our site on Tarporley High Street is on schedule for opening in May 2024 in its new format as a small, localised Hollies Market.

The re-design of our store at Lower Stretton is also already underway, along with the proposed improvement to the refrigeration units there.

Development of our site at Little Budworth is also planned for 2025 to accommodate an increased delicatessen provision and again update the refrigeration systems to ensure economic efficiencies.

 

We continue to develop our farm at Delamere for both horticultural and leisure purposes. Work has commenced on this project now with utilities being installed on site. The creation of a new coffee shop and the general development of the site for tourism and for residents to enjoy, is all now coming together in our business planning.

On behalf of the board

Mr P R Cowap
Director
17 September 2024
H.F.S. TARPORLEY LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 JANUARY 2024
- 2 -

The directors present their annual report and financial statements for the year ended 31 January 2024.

Principal activities

The principal activity of the company continued to be that of the retail of farm shop retailing.

Results and dividends

The results for the year are set out in the statement of comprehensive income within this annual report and financial statements.

Ordinary dividends were paid amounting to £1,053,000. 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 P R Cowap
Mr E R Cowap
Mrs H Cowap
Mr R Cowap
Auditor

The auditor, Mitchell Charlesworth (Audit) Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Statement of directors' responsibilities

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.

H.F.S. TARPORLEY LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 3 -
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.

On behalf of the board
Mr P R Cowap
Director
17 September 2024
H.F.S. TARPORLEY LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF H.F.S. TARPORLEY LIMITED
- 4 -
Opinion

We have audited the financial statements of H.F.S. Tarporley Limited (the 'company') for the year ended 31 January 2024 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:

H.F.S. TARPORLEY LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF H.F.S. TARPORLEY LIMITED (CONTINUED)
- 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.

H.F.S. TARPORLEY LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF H.F.S. TARPORLEY LIMITED (CONTINUED)
- 6 -
Extent to which our procedures are capable of detecting irregularities, including fraud

We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.

 

Identifying and assessing potential risks related to irregularities

 

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

 

 

 

 

 

 

 

 

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas:

 

(i) The presentation of the company's profit and loss account, (ii) the company's accounting policy for revenue recognition (iii) the overstatement of salary and other costs, we are also required to perform specific procedures to respond to the risk of management override.

 

We also obtained an understanding of the legal and regulatory framework that the company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements.

 

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company’s ability to operate or to avoid a material penalty. This included compliance with Food Hygiene Regulations, Data Protection Regulations and employment law.

H.F.S. TARPORLEY LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF H.F.S. TARPORLEY LIMITED (CONTINUED)
- 7 -
Audit response to risks identified

As a result of performing the above, we identified revenue recognition and management override as the key audit matters related to the potential risk of fraud.

 

Our procedures to respond to risks identified included the following:

 

reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with relevant laws and regulations described above as having a direct effect on the financial statements;

 

enquiring of management and directors concerning actual and potential litigation and claims;

 

performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;

 

in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

 

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

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.

Robert Hall
Senior Statutory Auditor
For and on behalf of Mitchell Charlesworth (Audit) Limited
17 September 2024
Accountants
Statutory Auditor
24 Nicholas Street
Chester
CH1 2AU
H.F.S. TARPORLEY LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 JANUARY 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
13,534,709
11,989,424
Cost of sales
(8,807,992)
(7,425,945)
Gross profit
4,726,717
4,563,479
Administrative expenses
(4,304,832)
(3,890,843)
Other operating income
119,628
117,120
Operating profit
4
541,513
789,756
Interest receivable and similar income
7
31,940
9,705
Interest payable and similar expenses
8
(40,149)
(21,837)
Profit before taxation
533,304
777,624
Tax on profit
9
(170,680)
(184,299)
Profit for the financial year
362,624
593,325
Other comprehensive income
Revaluation of tangible fixed assets
-
0
2,551,200
Tax relating to other comprehensive income
-
0
(637,800)
Total comprehensive income for the year
362,624
2,506,725

The profit and loss account has been prepared on the basis that all operations are continuing operations.

H.F.S. TARPORLEY LIMITED
BALANCE SHEET
AS AT
31 JANUARY 2024
31 January 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
12
3,824,571
3,883,402
Current assets
Stocks
13
537,898
487,872
Debtors
14
2,499,978
3,477,582
Cash at bank and in hand
1,687,874
1,842,887
4,725,750
5,808,341
Creditors: amounts falling due within one year
15
(1,191,896)
(1,504,099)
Net current assets
3,533,854
4,304,242
Total assets less current liabilities
7,358,425
8,187,644
Creditors: amounts falling due after more than one year
16
(213,543)
(365,669)
Provisions for liabilities
Deferred tax liability
19
828,341
815,059
(828,341)
(815,059)
Net assets
6,316,541
7,006,916
Capital and reserves
Called up share capital
21
102
101
Revaluation reserve
1,913,400
1,913,400
Profit and loss reserves
4,403,039
5,093,415
Total equity
6,316,541
7,006,916

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 17 September 2024 and are signed on its behalf by:
Mr P R Cowap
Director
Company registration number 04418481 (England and Wales)
H.F.S. TARPORLEY LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JANUARY 2024
- 10 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 February 2022
101
-
0
5,049,090
5,049,191
Year ended 31 January 2023:
Profit
-
-
593,325
593,325
Other comprehensive income:
Revaluation of tangible fixed assets
-
2,551,200
-
2,551,200
Tax relating to other comprehensive income
-
(637,800)
-
0
(637,800)
Total comprehensive income
-
1,913,400
593,325
2,506,725
Dividends
10
-
-
(549,000)
(549,000)
Balance at 31 January 2023
101
1,913,400
5,093,415
7,006,916
Year ended 31 January 2024:
Profit and total comprehensive income
-
-
362,624
362,624
Issue of share capital
21
1
-
-
1
Dividends
10
-
-
(1,053,000)
(1,053,000)
Balance at 31 January 2024
102
1,913,400
4,403,039
6,316,541
H.F.S. TARPORLEY LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 JANUARY 2024
- 11 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
26
1,293,374
128,295
Interest paid
(40,149)
(21,837)
Income taxes refunded/(paid)
40,595
(441,627)
Net cash inflow/(outflow) from operating activities
1,293,820
(335,169)
Investing activities
Purchase of tangible fixed assets
(261,026)
(333,393)
Proceeds from disposal of tangible fixed assets
21,000
-
0
Interest received
31,940
9,705
Net cash used in investing activities
(208,086)
(323,688)
Financing activities
Proceeds from issue of shares
1
-
0
Repayment of bank loans
(174,756)
16,662
Payment of finance leases obligations
(12,992)
20,701
Dividends paid
(1,053,000)
(549,000)
Net cash used in financing activities
(1,240,747)
(511,637)
Net decrease in cash and cash equivalents
(155,013)
(1,170,494)
Cash and cash equivalents at beginning of year
1,842,887
3,013,381
Cash and cash equivalents at end of year
1,687,874
1,842,887
H.F.S. TARPORLEY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024
- 12 -
1
Accounting policies
Company information

H.F.S. Tarporley Limited is a private company limited by shares incorporated in England and Wales. The registered office is The Hollies, Forest Road, Little Budworth, Tarporley, Cheshire, CW6 9ES.

1.1
Accounting convention

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

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

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties. The principal accounting policies adopted are set out below.

1.2
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.

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), 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.

1.4
Intangible fixed assets - goodwill

Acquired goodwill is written off in equal annual instalments over its estimated useful economic life of twenty years.

1.5
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Land and buildings Freehold
0-10% straight line
Plant and machinery
10% straight line
Fixtures, fittings & equipment
20% straight line
Computer equipment
50% straight line
Motor vehicles
20% straight line

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

H.F.S. TARPORLEY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 13 -
1.6
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible 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.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

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

1.8
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.

H.F.S. TARPORLEY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 14 -
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.

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.

H.F.S. TARPORLEY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 15 -
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.

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
Derivatives

Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.

 

A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability.

1.12
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.

H.F.S. TARPORLEY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 16 -
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.

1.13
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.

1.14
Retirement benefits

The company operates a defined contribution pension scheme. Contributions payable for the year are charged in the profit and loss account.

1.15
Leases

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

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

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.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

H.F.S. TARPORLEY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 17 -
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.

3
Turnover and other revenue

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

2024
2023
£
£
Turnover analysed by class of business
Sale of goods
13,534,709
11,989,424
2024
2023
£
£
Other revenue
Interest income
31,940
9,705
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
19,000
18,000
Depreciation of owned tangible fixed assets
301,647
265,252
(Profit)/loss on disposal of tangible fixed assets
(2,790)
491
Amortisation of intangible assets
-
375
Operating lease charges
33,379
42,293
5
Employees

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

2024
2023
Number
Number
Average full time equivalents
172
151
H.F.S. TARPORLEY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
5
Employees
(Continued)
- 18 -

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
2,332,708
2,137,229
Social security costs
162,836
156,197
Pension costs
131,588
150,292
2,627,132
2,443,718
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
39,504
39,269
Company pension contributions to defined contribution schemes
80,000
100,000
119,504
139,269

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2023: 2).

7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
23,168
9,705
Other interest income
8,772
-
0
Total income
31,940
9,705
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
23,168
9,705
H.F.S. TARPORLEY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 19 -
8
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
35,783
20,226
Other finance costs:
Interest on finance leases and hire purchase contracts
4,366
1,611
40,149
21,837
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
157,398
134,372
Deferred tax
Origination and reversal of timing differences
13,282
49,927
Total tax charge
170,680
184,299

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:

2024
2023
£
£
Profit before taxation
533,304
777,624
Expected tax charge based on the standard rate of corporation tax in the UK of 24.03% (2023: 19.00%)
128,153
147,749
Tax effect of expenses that are not deductible in determining taxable profit
2,139
1,112
Depreciation on assets not qualifying for tax allowances
39,872
188,510
Chargebale gains
-
0
484,728
Deferred tax recognised through revaluation reserve
-
0
(637,800)
Remeasurement of deferred tax for changes in tax rates
516
-
0
Taxation charge for the year
170,680
184,299
H.F.S. TARPORLEY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
9
Taxation
(Continued)
- 20 -

In addition to the amount charged to the profit and loss account, the following amounts relating to tax have been recognised directly in other comprehensive income:

2024
2023
£
£
Deferred tax arising on:
Revaluation of property
-
637,800
10
Dividends
2024
2023
£
£
Interim paid
1,053,000
549,000
11
Intangible fixed assets
Goodwill
£
Cost
At 1 February 2023 and 31 January 2024
30,000
Amortisation and impairment
At 1 February 2023 and 31 January 2024
30,000
Carrying amount
At 31 January 2024
-
0
At 31 January 2023
-
0
H.F.S. TARPORLEY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 21 -
12
Tangible fixed assets
Land and buildings Freehold
Plant and machinery
Fixtures, fittings & equipment
Computer equipment
Motor vehicles
Total
£
£
£
£
£
£
Cost or valuation
At 1 February 2023
4,224,884
686,812
333,093
45,986
48,065
5,338,840
Additions
53,355
86,116
51,868
4,712
64,975
261,026
Disposals
-
0
-
0
-
0
-
0
(18,210)
(18,210)
At 31 January 2024
4,278,239
772,928
384,961
50,698
94,830
5,581,656
Depreciation and impairment
At 1 February 2023
916,646
207,665
273,661
38,062
19,404
1,455,438
Depreciation charged in the year
172,704
77,293
23,344
10,280
18,026
301,647
At 31 January 2024
1,089,350
284,958
297,005
48,342
37,430
1,757,085
Carrying amount
At 31 January 2024
3,188,889
487,970
87,956
2,356
57,400
3,824,571
At 31 January 2023
3,308,238
479,147
59,432
7,924
28,661
3,883,402

Land and buildings with a carrying amount of £2,551,200 were revalued at 7 November 2018 by Christie & Co, independent valuers not connected with the company on the basis of market value. The valuation conforms to International Valuation Standards and was based on recent market transactions on arm's length terms for similar properties. The Directors do not believe that the valuation as at 31 January 2024 is materially different to at the date of the valuation.

The land which has been revalued was donated to the company and as such the historic cost is £nil.

13
Stocks
2024
2023
£
£
Finished goods and goods for resale
537,898
487,872
H.F.S. TARPORLEY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 22 -
14
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
1,285
39
Corporation tax recoverable
-
0
65,595
Other debtors
2,475,476
3,390,181
Prepayments and accrued income
23,217
21,767
2,499,978
3,477,582
15
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans
17
174,849
174,967
Obligations under finance leases
18
15,590
51,095
Trade creditors
673,211
821,933
Corporation tax
132,398
-
0
Other taxation and social security
81,566
183,922
Other creditors
24,835
171,451
Accruals and deferred income
89,447
100,731
1,191,896
1,504,099
16
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans and overdrafts
17
178,168
352,807
Obligations under finance leases
18
35,375
12,862
213,543
365,669

Svenska Handelsbanken AB holds a fixed and floating charge over the undertaking and all property and assets present and future, including goodwill, book debts, uncalled capital, buildings, fixtures, fixed plant & machinery.

H.F.S. TARPORLEY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 23 -
17
Loans and overdrafts
2024
2023
£
£
Bank loans
353,017
527,774
Payable within one year
174,849
174,967
Payable after one year
178,168
352,807

The long-term loans are secured by fixed and floating charges over the undertakings and all property and assets present and future including goodwill, book debts, uncalled capital, buildings, fixtures, fixed plant and machinery.

18
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
15,590
51,095
In two to five years
35,375
12,862
50,965
63,957

Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

19
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
828,341
815,059
2024
Movements in the year:
£
Liability at 1 February 2023
815,059
Charge to profit or loss
13,282
Liability at 31 January 2024
828,341
H.F.S. TARPORLEY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
19
Deferred taxation
(Continued)
- 24 -

The deferred tax liability relates to accelerated capital allowances, which is expected to reverse over the same period that the assets are depreciated.

20
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
131,588
150,292

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.

21
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100
100
100
100
Ordinary A shares of £1 each
1
1
1
1
Ordinary B shares of £1 each
1
-
1
-
102
101
102
101

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

H.F.S. TARPORLEY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 25 -
22
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:

2024
2023
£
£
Within one year
25,033
-
0
Between two and five years
23,602
-
0
48,635
-
0
23
Related party transactions
Transactions with related parties

During the year the company entered into the following transactions with related parties:

Other information

Included in other debtors is a loan to HFS Highland Limited, a company registered in England and Wales. Mr P Cowap and Mr E Cowap are directors and equal shareholders of HFS Highland Limited. The amount outstanding at the year end is £566,730 (2023: 1,554,811 ). The loan bears no right to interest and has no set repayment terms.

 

Also included in other debtors is a loan made to H.F.S. Tarporley Limited SSAS, a small self administered pension scheme in England and Wales. Mr P Cowap and Mr E Cowap are trustees and equal members of H.F.S Tarporley Limited SSAS. The amount outstanding at the year end is £82,562 (2023: £106,480). The loan bears no right to interest and has no set repayment terms.

 

Included in other debtors is a loan to HFS Delamere Limited, a company registered in England and Wales. Mr P Cowap and Mr E Cowap are directors and equal shareholders of HFS Delamere Limited. The amount outstanding at the year end is £432,631 (2023: £247,149). The loan bears no right to interest and has no set repayment terms.

 

Included in other creditors is a loan from PR & ER Cowap Partnership, Mr P Cowap and Mr E Cowap are equal partners in PR & ER Cowap Partnership. The amount outstanding at the year end is £nil (2023: £105,073). The loan bears no right to interest and has no set repayment terms.

 

Included in other debtors is a loan to HFS Tarporley International Limited, a company registered in England and Wales. Mr P Cowap and Mr E Cowap are directors and equal shareholders of HFS Tarporley International Limited. The amount outstanding at the year end is £1,131,119 (2023: £1,284,593). The loan bears no right to interest and has no set repayment terms. During the year dividends of £500,000 were paid to HFS Tarporley International Limited (2023: £nil).

 

Included in other debtors is a loan to HFS Tarporley Estates Limited, a company registered in England and Wales. Mr P Cowap and Mr E Cowap are directors and equal shareholders of HFS Tarporley Estates Limited. The amount outstanding at the year end is £261,472 (2023: £162,352). The loan bears no right to interest and has no set repayment terms.

 

24
Directors' transactions

Dividends totalling £553,000 (2023 - £549,000) were paid in the year in respect of shares held by the company's directors.

H.F.S. TARPORLEY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 26 -
25
Ultimate controlling party

There is no ultimate controlling party.

26
Cash generated from operations
2024
2023
£
£
Profit for the year after tax
362,624
593,325
Adjustments for:
Taxation charged
170,680
184,299
Finance costs
40,149
21,837
Investment income
(31,940)
(9,705)
(Gain)/loss on disposal of tangible fixed assets
(2,790)
491
Amortisation and impairment of intangible assets
-
0
375
Depreciation and impairment of tangible fixed assets
301,647
265,252
Movements in working capital:
Increase in stocks
(50,026)
(28,874)
Decrease/(increase) in debtors
912,009
(1,275,029)
(Decrease)/increase in creditors
(408,979)
376,324
Cash generated from operations
1,293,374
128,295
27
Analysis of changes in net funds
1 February 2023
Cash flows
31 January 2024
£
£
£
Cash at bank and in hand
1,842,887
(155,013)
1,687,874
Borrowings excluding overdrafts
(527,774)
174,757
(353,017)
Obligations under finance leases
(63,957)
12,992
(50,965)
1,251,156
32,736
1,283,892
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