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COMPANY REGISTRATION NUMBER: 05231649
Ann's Cottage (Warehouse) Limited
Financial Statements
31 January 2024
Ann's Cottage (Warehouse) Limited
Financial Statements
Year ended 31 January 2024
Contents
Page
Strategic report
1
Directors' report
3
Independent auditor's report to the members
5
Statement of income and retained earnings
9
Statement of financial position
10
Statement of cash flows
11
Notes to the financial statements
12
Ann's Cottage (Warehouse) Limited
Strategic Report
Year ended 31 January 2024
The directors present their Strategic Report for the year ended 31st January 2024.
Principal activities and business model
The principal activity of the Company is the purchase of surf clothing, fashion and lifestyle and hardware which is sold to related parties, for retail sale via stores and website sales. The main customer base of the related parties is local customers and tourists engaging in surfing activity, together with the provision of branded hardware, accessories and clothing to provide everything needed to enjoy the surf and beach lifestyle both in and out of the water. The Company orders stock in greater quantities for cost efficiency, then fulfills stock required by its customers on a frequent basis. The Company's objectives include ensuring continued supply of stock at the best prices, taking advantage of stock clearance sales where available, and maintaining relationships with its suppliers to ensure the best terms and continuity of supply of products.
Business review
The 2021 and 2022 accounting periods showed exceptional sales, boosted by increased demand from related parties during the COVID 19 pandemic. The year ended 31st January 2024 continued to show increased sales (compared with pre-pandemic levels) although sales were reduced from the 2023 year. Turnover in the year was £9,072,834, a reduction of 15.4% on the 2023 turnover of £10,718,508. The 2024 turnover remained 16.9% greater than the pre pandemic results with turnover in the year ended January 2020 being £7,760,516. The gross profit margin of 17.1% was slightly better than the margin of 15.7% in 2023, as a result of managing the ongoing product cost pressures, and managing stock levels due to the drop in turnover. The company continued to experience increased stock prices during the year. There has been pressure on stock availability since the COVID-19 period as a result of exceptional demand for products. In addition, green strategies implemented by the manufacture and shipping companies led to longer transport times and less availability of ships, resulting in increased prices. Stock levels peaked in 2023, following orders placed during the COVID period, and future stock purchasing has reduced in 2024. The Directors continue to place orders in line with their strategic objective of forward planning orders in line with anticipated demand and expected fashions trends. During the year 2023 the Company implemented a new stock management system to improve efficiency of reporting and tracking stock movements and a focus on being an omni channel business. Administration expenses decreased to £1,425,433 in 2024, compared to £1,591,051 in 2023. Wages costs have decreased to £817,822 in 2024 from £872,598 in 2023. The net profit before tax for the year is £261,387 (2023 £183,888). The cash balances at the year-end were £261,234 (2023 £205,321). Stock decreased to £2,446,265 in 2024 (2023 £3,234,194). Net assets at the year-end were £2,139,792 (2023 £1,955,574).
Principal risks and uncertainties
The Directors are responsible for identifying significant risks to the business and for ensuring that appropriate risk management policies are in place to enable the Company to achieve its strategic objectives. The principal risk to the business is the security of product supply as the Company is heavily dependent on products supplied from overseas. The cost and supply challenges post COVID have been noted in the business review. To mitigate this risk the Company continues to purchase stock in larger volumes through centralised purchasing. The Directors maintain relationships with suppliers to ensure availability of stock, and to ensure the best prices and implementation of margin support guarantees. A further risk is a reduction in customer demand suffered by related party customers, as the company has common Directors with the related parties. The Directors monitor fashion trends to ensure that the stock which is most in demand is supplied, and to ensure that all key brands such as Vans, Quiksilver and Ripcurl are offered by the business. A further challenge to the business is the availability and retention of employees for staffing of the warehouse and offices. The business offers fair wage rates, employee benefits and good working conditions to retain employees.
The Directors believe the prospects for the Company continue to be strong but challenging. Sales are expected to be consistent in the coming year, so the Directors will focus on reducing overheads where possible, with a quarterly review. to ensure implementation. The cost to fill a shipping container has reduced following the COVID period, and the Directors are starting to see some costs passed on in the form of reduced RRPs. These price reductions should keep customer appetite for premium brands engaged. These price reductions are expected to increase in volume throughout the next twelve months. Houthi Rebels in the Red Sea have impacted on shipping delays, which has created a particular threat with company deliveries. The Directors are working with the brands to reduce the critical path of ordering, to lengthen the shipping times so that on time deliveries can be maintained.
This report was approved by the board of directors on 15 October 2024 and signed on behalf of the board by:
Mrs R Cornelius
Director
Registered office:
Unit 4, Higher Pityme Farm
Pityme Business Centre
St Minver
Wadebridge
Cornwall
PL27 6NU
Ann's Cottage (Warehouse) Limited
Directors' Report
Year ended 31 January 2024
The directors present their report and the financial statements of the company for the year ended 31 January 2024 .
Directors
The directors who served the company during the year were as follows:
Mrs R Cornelius
Mrs E C Doney
Dividends
The directors do not recommend the payment of a dividend.
Going concern
The financial statements have been prepared on a going concern basis, which the Directors consider to be appropriate for the following reasons:
- The Directors have considered the consequences of recent years price increases and other events and conditions as outlined in the strategic report, and it has determined that they do not create a material uncertainty that casts significant doubt upon the entity's ability to continue as a going concern.
- Sales have remained above pre pandemic levels and the company is still profitable despite cost increases.
- The Directors regularly monitor sales levels, fashion trends, stock levels and cash balances in order to provide comfort in relation to ongoing expenses.
Consequently, the Directors are confident that the Company has adequate resources to remain in operational existence for at least 12 months from the date of approval of the financial statements, and have therefore prepared the financial statements on a going concern basis.
Disclosure of information in the strategic report
A fair review of the business and likely future developments are set out in the Strategic Report, which further includes details of the principal risks and uncertainties facing the Company and the strategies to address these risks.
Directors' responsibilities statement
The directors are responsible for preparing the strategic report, directors' 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 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 then apply them consistently; - make judgments and accounting estimates that are reasonable and prudent; - 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. 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. Auditor
Each of the persons who is a director at the date of approval of this report confirms that:
- so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.
This report was approved by the board of directors on 15 October 2024 and signed on behalf of the board by:
Mrs R Cornelius
Director
Registered office:
Unit 4, Higher Pityme Farm
Pityme Business Centre
St Minver
Wadebridge
Cornwall
PL27 6NU
Ann's Cottage (Warehouse) Limited
Independent Auditor's Report to the Members of Ann's Cottage (Warehouse) Limited
Year ended 31 January 2024
Opinion
We have audited the financial statements of Ann's Cottage (Warehouse) Limited (the 'company') for the year ended 31 January 2024, which comprise the Profit and Loss Account, Balance Sheet, Statement of Changes in Equity, 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 January 2024 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 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 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. 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 matters 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's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: Based on our understanding of the company and industry, we identified that the principal risks of non-compliance with laws and regulations related to acts by the company which were contrary to applicable laws and regulations, including fraud. We considered those laws and regulations that have a direct impact on the preparation of the financial statements, including, but not limited to the reporting framework (FRS 102 and Companies Act 2006) and the relevant tax compliance regulations in the UK. As part of our planning procedures, we assessed the risk of any non-compliance with laws and regulations on the entity's ability to continue operating and the risk of material misstatement to the accounts. Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Our procedures involved the following: - Reviewing legal and professional costs to identify legal costs in respect of non compliance; - Making enquiries with management whether there have been any known instances, allegations or suspicions of fraud or non-compliance with laws and regulations; - Reviewing board minutes or correspondence with regulators, where available. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to fraudulent financial reporting. Our procedures involved the following; - Reviewing nominal journal entries for reasonableness; - Reviewing significant accounting estimates for bias; - Reviewing the process and control environment for deficiencies. Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements. This risk increases the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements as we are less likely to become aware of instances of non-compliance. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment, collusion, omission or misrepresentation. 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.
Tom Roach BSc FCA
(Senior Statutory Auditor)
For and on behalf of
PKF Francis Clark
Chartered accountants & statutory auditor
Lowin House
Tregolls Road
Truro
Cornwall
TR1 2NA
17 October 2024
Ann's Cottage (Warehouse) Limited
Statement of Income and Retained Earnings
Year ended 31 January 2024
2024
2023
Note
£
£
Turnover
4
9,072,834
10,718,508
Cost of sales
7,517,784
9,040,212
------------
-------------
Gross profit
1,555,050
1,678,296
Administrative expenses
1,425,433
1,591,051
Other operating income
5
131,610
96,718
------------
------------
Operating profit
6
261,227
183,963
Other interest receivable and similar income
9
160
3
Interest payable and similar expenses
10
78
------------
------------
Profit before taxation
261,387
183,888
Tax on profit
11
64,826
107,042
---------
---------
Profit for the financial year and total comprehensive income
196,561
76,846
---------
---------
Retained earnings at the start of the year
1,870,379
1,793,533
------------
------------
Retained earnings at the end of the year
2,066,940
1,870,379
------------
------------
All the activities of the company are from continuing operations.
Ann's Cottage (Warehouse) Limited
Statement of Financial Position
31 January 2024
2024
2023
Note
£
£
£
Fixed assets
Tangible assets
12
315,969
373,047
Current assets
Stocks
13
2,446,265
3,234,194
Debtors
14
4,113,687
2,955,653
Cash at bank and in hand
261,234
205,321
------------
------------
6,821,186
6,395,168
Creditors: amounts falling due within one year
15
4,997,363
4,812,641
------------
------------
Net current assets
1,823,823
1,582,527
------------
------------
Total assets less current liabilities
2,139,792
1,955,574
Provisions
Taxation including deferred tax
16
72,850
85,193
------------
------------
Net assets
2,066,942
1,870,381
------------
------------
Capital and reserves
Called up share capital
19
2
2
Profit and loss account
2,066,940
1,870,379
------------
------------
Shareholders funds
2,066,942
1,870,381
------------
------------
These financial statements were approved by the board of directors and authorised for issue on 15 October 2024 , and are signed on behalf of the board by:
Mrs R Cornelius
Director
Company registration number: 05231649
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the medium companies regime.
Ann's Cottage (Warehouse) Limited
Statement of Cash Flows
Year ended 31 January 2024
2024
2023
£
£
Cash flows from operating activities
Profit for the financial year
196,561
76,846
Adjustments for:
Depreciation of tangible assets
104,006
121,031
Other interest receivable and similar income
( 160)
( 3)
Interest payable and similar expenses
78
(Gains)/loss on disposal of tangible assets
( 42,687)
8,369
Tax on profit
64,826
107,042
Accrued expenses/(income)
1,631
( 87,452)
Changes in:
Stocks
787,929
( 1,038,919)
Trade and other debtors
( 1,158,034)
356,484
Trade and other creditors
( 65,068)
564,473
------------
------------
Cash generated from operations
( 110,996)
107,949
Interest paid
( 78)
Interest received
160
3
Tax paid
( 21,850)
( 115,863)
---------
---------
Net cash used in operating activities
( 132,686)
( 7,989)
---------
---------
Cash flows from investing activities
Purchase of tangible assets
( 60,659)
( 231,365)
Proceeds from sale of tangible assets
56,418
44,893
---------
---------
Net cash used in investing activities
( 4,241)
( 186,472)
---------
---------
Cash flows from financing activities
Proceeds from borrowings
192,840
( 344)
Payments of finance lease liabilities
( 9,443)
---------
---------
Net cash from/(used in) financing activities
192,840
( 9,787)
---------
---------
Net increase/(decrease) in cash and cash equivalents
55,913
( 204,248)
Cash and cash equivalents at beginning of year
205,321
409,569
---------
---------
Cash and cash equivalents at end of year
261,234
205,321
---------
---------
Ann's Cottage (Warehouse) Limited
Notes to the Financial Statements
Year ended 31 January 2024
1. General information
The company is a private company limited by shares, registered in England. The address of the registered office is Unit 4, Higher Pityme Farm, Pityme Business Centre, St Minver, Wadebridge, Cornwall, PL27 6NU.
2. Statement of compliance
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.
The financial statements are prepared in sterling, which is the functional currency of the entity.
Revenue recognition
Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax. Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably.
Income tax
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.
Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
Tangible assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Leasehold improvements
-
Straight line over 15 years
Fixtures and fittings
-
25% reducing balance
Motor vehicles
-
25% reducing balance
Equipment
-
25% reducing balance
Leased assets are depreciated over the term of the lease except where there is an expectation that the lease will continue.
Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets. For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units.
Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition. Weighted average cost is used for stock valuation.
Finance leases and hire purchase contracts
Assets held under finance leases and hire purchase contracts are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.
Provisions
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.
Financial instruments
Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as either financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
4. Turnover
Turnover arises from:
2024
2023
£
£
Sale of goods
9,072,834
10,718,508
------------
-------------
The whole of the turnover is attributable to the principal activity of the company wholly undertaken in the United Kingdom.
5. Other operating income
2024
2023
£
£
Management charges receivable
120,802
85,500
Other operating income
10,808
11,218
---------
--------
131,610
96,718
---------
--------
6. Operating profit
Operating profit or loss is stated after charging/crediting:
2024
2023
£
£
Depreciation of tangible assets
104,006
121,031
(Gains)/loss on disposal of tangible assets
( 42,687)
8,369
---------
---------
7. Auditor's remuneration
2024
2023
£
£
Fees payable for the audit of the financial statements
11,200
10,500
--------
--------
8. Staff costs
The average number of persons employed by the company during the year, including the directors, amounted to:
2024
2023
No.
No.
Administrative staff
28
38
----
----
The aggregate payroll costs incurred during the year, relating to the above, were:
2024
2023
£
£
Wages and salaries
745,453
796,044
Social security costs
60,405
64,121
Other pension costs
11,964
12,433
---------
---------
817,822
872,598
---------
---------
Two employees of Ann's Cottage (Warehouse) Limited are directors of a sister company. Management charges are charged to the sister company to include the Directors wages.
9. Other interest receivable and similar income
2024
2023
£
£
Interest on cash and cash equivalents
160
3
----
----
10. Interest payable and similar expenses
2024
2023
£
£
Interest on obligations under finance leases and hire purchase contracts
78
----
----
11. Tax on profit
Major components of tax expense
2024
2023
£
£
Current tax:
UK current tax expense
77,169
21,849
Deferred tax:
Origination and reversal of timing differences
( 12,343)
85,193
--------
---------
Tax on profit
64,826
107,042
--------
---------
Reconciliation of tax expense
The tax assessed on the profit on ordinary activities for the year is higher than (2023: higher than) the standard rate of corporation tax in the UK of 24.03 % (2023: 19 %).
2024
2023
£
£
Profit on ordinary activities before taxation
261,387
183,888
---------
---------
Profit on ordinary activities by rate of tax
62,812
34,939
Effect of expenses not deductible for tax purposes
( 10,258)
1,590
Effect of capital allowances and depreciation
24,615
( 14,680)
Other tax adjustment to increase/(decrease) tax liability - deferred tax
(12,343)
85,193
---------
---------
Tax on profit
64,826
107,042
---------
---------
12. Tangible assets
Short leasehold properties
Fixtures and fittings
Motor vehicles
Equipment
Total
£
£
£
£
£
Cost
At 1 February 2023
90,034
236,959
432,252
447,334
1,206,579
Additions
2,704
51,245
6,710
60,659
Disposals
( 60,064)
( 60,064)
--------
---------
---------
---------
------------
At 31 January 2024
90,034
239,663
423,433
454,044
1,207,174
--------
---------
---------
---------
------------
Depreciation
At 1 February 2023
62,074
203,539
210,306
357,613
833,532
Charge for the year
6,002
9,031
64,865
24,108
104,006
Disposals
( 46,333)
( 46,333)
--------
---------
---------
---------
------------
At 31 January 2024
68,076
212,570
228,838
381,721
891,205
--------
---------
---------
---------
------------
Carrying amount
At 31 January 2024
21,958
27,093
194,595
72,323
315,969
--------
---------
---------
---------
------------
At 31 January 2023
27,960
33,420
221,946
89,721
373,047
--------
---------
---------
---------
------------
13. Stocks
2024
2023
£
£
Raw materials and consumables
2,446,265
3,234,194
------------
------------
14. Debtors
2024
2023
£
£
Trade debtors
1,682,435
949,506
Amounts owed by group undertakings
2,188,915
1,647,765
Prepayments and accrued income
72,038
49,881
Other debtors
170,299
308,501
------------
------------
4,113,687
2,955,653
------------
------------
15. Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
905,159
1,343,200
Accruals and deferred income
15,133
13,502
Corporation tax
77,169
21,850
Social security and other taxes
11,608
15,685
Director loan accounts
275,073
82,233
Amounts owed to connected undertakings
3,713,221
3,326,171
Other creditors
10,000
------------
------------
4,997,363
4,812,641
------------
------------
16. Provisions
Deferred tax (note 17)
£
At 1 February 2023
85,193
Unused amounts reversed
( 12,343)
--------
At 31 January 2024
72,850
--------
17. Deferred tax
The deferred tax included in the statement of financial position is as follows:
2024
2023
£
£
Included in provisions (note 16)
72,850
85,193
--------
--------
The deferred tax account consists of the tax effect of timing differences in respect of:
2024
2023
£
£
Accelerated capital allowances
72,850
85,193
--------
--------
18. Employee benefits
Defined contribution plans
The amount recognised in profit or loss as an expense in relation to defined contribution plans was £ 11,964 (2023: £ 12,433 ).
The pension creditor at 31st January 2024 is £991 (2023 £1,805)
19. Called up share capital
Issued, called up and fully paid
2024
2023
No.
£
No.
£
Ordinary shares of £ 1 each
2
2
2
2
----
----
----
----
20. Analysis of changes in net debt
At 1 Feb 2023
Cash flows
At 31 Jan 2024
£
£
£
Cash at bank and in hand
205,321
55,913
261,234
Debt due within one year
(82,233)
(192,840)
(275,073)
---------
---------
---------
123,088
( 136,927)
( 13,839)
---------
---------
---------
21. Operating leases
The total future minimum lease payments under non-cancellable operating leases are as follows:
2024
2023
£
£
Not later than 1 year
174,000
171,750
Later than 1 year and not later than 5 years
108,000
144,000
Later than 5 years
207,000
243,000
---------
---------
489,000
558,750
---------
---------
Ann's Cottage (Warehouse) Limited
Notes to the Financial Statements (continued)
Year ended 31 January 2024
22. Related party transactions
Transactions with associates Ann's Cottage (Warehouse) Limited has transacted with associated entities. During the period, sales were made to the value of £9,075,714 (2023 - £10,719,554). At the balance sheet date, the amount due from associated entities was £2,188,916 (2023 - £1,647,765) and the amount owed to an associated entity was £3,713,221 (2023 - £3,326,171). At the balance sheet date trade receivable balances of £1,680,952 (2023 - £945,997) were owed to the company by associated entities. Management charges of £120,802 (2023 - £85,500) were charged to the associated entities in the year. The company is a lessee of one of its sites from an associated entity. During the year rents of £18,000 (2023 - £18,000) were paid to the entity. Transactions with directors The net movement in the directors loan during the year was an increase of £192,840. The balance due to the directors at the year end was £275,073 (2023 - £82,233). The loan is non interest bearing and repayable on demand. Summary of transactions with other related parties During the year the company entered into the following transactions with related parties: Consultancy services and stock were provided by another related party to the value of £11,495 (2023 - £24,327). The company is a lessee of one of its sites from Mrs R Cornelius and Mrs E Doney. During the year rents of £120,000 (2023 - £120,000) were paid.