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COMPANY REGISTRATION NUMBER:
04768926
Ann's Cottage Surf Shop (Wadebridge) Limited |
|
Ann's Cottage Surf Shop (Wadebridge) Limited |
|
Year ended 31 January 2024
Independent auditor's report to the members |
7 |
|
|
Statement of income and retained earnings |
11 |
|
|
Statement of financial position |
12 |
|
|
Statement of cash flows |
13 |
|
|
Notes to the financial statements |
14 |
|
|
Ann's Cottage Surf Shop (Wadebridge) Limited |
|
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 retail of surf, fashion and lifestyle clothing and hardware via retail stores and website sales. The main customer base is local customers and tourists engaging in surfing activity, together with the provision of branded clothing, hardware and accessories to provide everything needed to enjoy the surf and beach lifestyle both in and out of the water. In order to purchase stock in greater quantities for cost efficiency the Company uses a central stock warehouse for stock ordering, and fulfilment of orders. The Company has eight shops in towns and beach locations throughout Cornwall. The Company also operates an industrial site outlet, offering extended opening hours to cater for customers unable to shop in working hours. The business' objectives include continued growth of online sales, enhancing customer experience in both environments, continuing to offer appropriate products to meet changing customer demands, and continued development and retention of employees.
Business review
The 2021 and 2022 accounting periods showed exceptional sales, boosted by increased website sales during the COVID 19 pandemic, and by increased tourist footfall in Cornwall whilst overseas travel was restricted. The year ended 31st January 2024 continued to show increased sales (compared with pre-pandemic levels) although these reduced a little as website sales settled down, and individuals could now travel freely overseas. Turnover in the year was £9,666,964, a reduction of 14.3% on the 2023 turnover of £11,277,422. The 2024 turnover remained 29% greater than the pre pandemic results with turnover in the year ended January 2020 being £7,496,033. The gross profit margin of 38.3% was increased compared to the margin of 37.8% in 2023, and remains in line with the margin of 37.9% in 2020, despite the ongoing cost pressures. 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. The retail shops have continued to open all year, with no lockdown restrictions, and this has contributed to the turnover and profitability levels in the year, although wage costs have increased accordingly from £1,781,605 in 2023 to £1,924,961 in 2024. 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. Administration expenses reduced from £3,733,057 in 2023, to £3,710,834 in 2024. The net profit before tax for the year is £12,504 (2023 £479,178). The cash balances at the year-end were £3,084,511 (2023 £2,652,632). Stock decreased to £1,171,526 in 2024 (2023 £1,201,757). Net assets at the year-end were £2,415,361 (2023 £2,426,752).
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 a reduction in customer demand, leading to a reduction in business growth. The risk of competitors taking more market share and unseasonable weather patterns can also have an impact on business sales. To mitigate this risk, the Company completes ongoing marketing strategies, including updating the website for ease of use, and refreshing shop windows to maintain appeal for customers. 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. Prices continue to be reviewed to maintain the balance between competitive customer prices and business profitability. The sales of these products are supported through bespoke marketing and promotional activities. Another key risk is the security of product supply as the Company is heavily dependent on products supplied from overseas, and 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 warehouse purchasing. A further challenge for local businesses is the availability and retention of employees for staffing of the retail outlets and offices. The business offers fair wage rates, employee benefits and good working conditions to retain employees.
Future developments
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 quarterly reviews to ensure implementation.
The Directors continue to analyse sales by store, paying particular attention to sales outside of normal trading hours. There was a plan to implement a new customer loyalty program scheme in the 2024 year, which was delayed due to the new web integration platform.
The Company is planning to integrate YOTPO over the coming months. This will enable the collection of user generated content to build the Ann's Cottage brand, as well as manage the customer experience. The key points of YOTPO are SMS marketing, email marketing, subscription, review and user generated content, and loyalty and referrals.
Due to the fall in turnover, the Directors have taken the decision to reduce costs in the marketing department. Recent staff changes in the department have provided the perfect opportunity to conduct a full marketing review. Over the past two months the Directors have written a brand bio and tone of voice to strengthen the brand's appeal to customers and align all departments of the business to the Company focused direction.
This report was approved by the board of directors on 15 October 2024 and signed on behalf of the board by:
Registered office: |
Unit 4 Higher Pityme Farm |
Pityme Business Centre |
St Minver |
Wadebridge |
Cornwall |
PL27 6NU |
|
Ann's Cottage Surf Shop (Wadebridge) Limited |
|
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:
Mr L Fox |
|
Ms A Dutton |
|
Mr A Nuttall |
|
Ms A Wakeling |
|
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. 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:
Registered office: |
Unit 4 Higher Pityme Farm |
Pityme Business Centre |
St Minver |
Wadebridge |
Cornwall |
PL27 6NU |
|
Ann's Cottage Surf Shop (Wadebridge) Limited |
|
Independent Auditor's Report to the Members of
Ann's Cottage Surf Shop (Wadebridge) Limited |
|
Year ended 31 January 2024
Opinion
We have audited the financial statements of Ann's Cottage Surf Shop (Wadebridge) 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 Board 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 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'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 Surf Shop (Wadebridge) Limited |
|
Statement of Income and Retained Earnings |
|
Year ended 31 January 2024
|
2024 |
2023 |
Note |
£ |
£ |
Turnover |
4 |
9,666,964 |
11,277,422 |
|
|
|
|
Cost of sales |
5,957,351 |
7,012,354 |
|
------------ |
------------- |
Gross profit |
3,709,613 |
4,265,068 |
|
|
|
Administrative expenses |
3,710,834 |
3,733,057 |
Other operating income |
5 |
52,316 |
– |
|
|
------------ |
------------ |
Operating profit |
6 |
51,095 |
532,011 |
|
|
|
|
Other interest receivable and similar income |
10 |
9,043 |
951 |
Interest payable and similar expenses |
11 |
47,634 |
53,784 |
|
------------ |
------------ |
Profit before taxation |
12,504 |
479,178 |
|
|
|
|
Tax on profit |
12 |
23,895 |
117,934 |
|
-------- |
--------- |
(Loss)/profit for the financial year and total comprehensive income |
(
11,391) |
361,244 |
|
-------- |
--------- |
|
|
|
|
Retained earnings at the start of the year |
2,426,750 |
2,065,506 |
|
------------ |
------------ |
Retained earnings at the end of the year |
2,415,359 |
2,426,750 |
|
------------ |
------------ |
|
|
|
All the activities of the company are from continuing operations.
Ann's Cottage Surf Shop (Wadebridge) Limited |
|
Statement of Financial Position |
|
31 January 2024
Fixed assets
Tangible assets |
13 |
|
205,735 |
295,477 |
|
|
|
|
|
Current assets
Stocks |
14 |
1,171,526 |
|
1,201,757 |
Debtors |
15 |
123,938 |
|
94,383 |
Cash at bank and in hand |
3,084,511 |
|
2,652,632 |
|
------------ |
|
------------ |
|
4,379,975 |
|
3,948,772 |
|
|
|
|
|
Creditors: amounts falling due within one year |
16 |
2,170,349 |
|
1,817,497 |
|
------------ |
|
------------ |
Net current assets |
|
2,209,626 |
2,131,275 |
|
|
------------ |
------------ |
Total assets less current liabilities |
|
2,415,361 |
2,426,752 |
|
|
------------ |
------------ |
Net assets |
|
2,415,361 |
2,426,752 |
|
|
------------ |
------------ |
|
|
|
|
|
Capital and reserves
Called up share capital |
18 |
|
2 |
2 |
Profit and loss account |
|
2,415,359 |
2,426,750 |
|
|
------------ |
------------ |
Shareholders funds |
|
2,415,361 |
2,426,752 |
|
|
------------ |
------------ |
|
|
|
|
|
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:
Company registration number:
04768926
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the medium companies regime.
Ann's Cottage Surf Shop (Wadebridge) Limited |
|
Year ended 31 January 2024
Cash flows from operating activities
(Loss)/profit for the financial year |
(
11,391) |
361,244 |
|
|
|
Adjustments for: |
|
|
Depreciation of tangible assets |
92,589 |
137,092 |
Other interest receivable and similar income |
(
9,043) |
(
951) |
Interest payable and similar expenses |
47,634 |
53,784 |
Loss on disposal of tangible assets |
– |
22,038 |
Tax on profit |
23,895 |
117,934 |
Accrued expenses |
43,837 |
6,580 |
|
|
|
Changes in: |
|
|
Stocks |
30,231 |
(
180,840) |
Trade and other debtors |
(
29,555) |
(
38,586) |
Trade and other creditors |
(
24,488) |
(
449,112) |
|
--------- |
--------- |
Cash generated from operations |
163,709 |
29,183 |
|
|
|
Interest paid |
(
47,634) |
(
53,784) |
Interest received |
9,043 |
951 |
Tax paid |
(
117,935) |
(
228,422) |
|
--------- |
--------- |
Net cash from/(used in) operating activities |
7,183 |
(
252,072) |
|
--------- |
--------- |
|
|
|
Cash flows from investing activities
Purchase of tangible assets |
(
2,847) |
(
10,960) |
Proceeds from sale of tangible assets |
– |
(
1) |
|
--------- |
--------- |
Net cash used in investing activities |
(
2,847) |
(
10,961) |
|
--------- |
--------- |
|
|
|
Cash flows from financing activities
Proceeds from borrowings |
– |
(
820) |
Proceeds from loans from group undertakings |
427,543 |
(
345,526) |
|
--------- |
--------- |
Net cash from/(used in) financing activities |
427,543 |
(
346,346) |
|
--------- |
--------- |
|
|
|
Net increase/(decrease) in cash and cash equivalents |
431,879 |
(
609,379) |
Cash and cash equivalents at beginning of year |
2,652,632 |
3,262,011 |
|
------------ |
------------ |
Cash and cash equivalents at end of year |
3,084,511 |
2,652,632 |
|
------------ |
------------ |
|
|
|
Ann's Cottage Surf Shop (Wadebridge) 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 10-15 years |
|
Fixtures and fittings |
- |
20% straight line |
|
Equipment |
- |
20% straight line |
|
|
|
|
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.
Financial instruments
A financial asset or a financial liability is recognised only when the company becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost. Where investments in non-convertible preference shares and non-puttable ordinary shares or preference shares are publicly traded or their fair value can otherwise be measured reliably, the investment is subsequently measured at fair value with changes in fair value recognised in profit or loss. All other such investments are subsequently measured at cost less impairment. Other financial instruments, including derivatives, are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Other financial instruments are subsequently measured at fair value, with any changes recognised in profit or loss, with the exception of hedging instruments in a designated hedging relationship.
Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately. For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics. Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.
Defined contribution pension scheme
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 |
9,666,964 |
11,277,422 |
|
------------ |
------------- |
|
|
|
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 |
52,316 |
– |
|
-------- |
---- |
|
|
|
6.
Operating profit
Operating profit or loss is stated after charging:
|
2024 |
2023 |
|
£ |
£ |
Depreciation of tangible assets |
92,591
|
137,093
|
Loss on disposal of tangible assets |
– |
22,038 |
|
-------- |
--------- |
|
|
|
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 |
106 |
109 |
|
---- |
---- |
|
|
|
The aggregate payroll costs incurred during the year, relating to the above, were:
|
2024 |
2023 |
|
£ |
£ |
Wages and salaries |
1,772,312 |
1,649,623 |
Social security costs |
125,124 |
106,949 |
Other pension costs |
27,525 |
25,033 |
|
------------ |
------------ |
|
1,924,961 |
1,781,605 |
|
------------ |
------------ |
|
|
|
9.
Directors' remuneration
The directors' aggregate remuneration in respect of qualifying services was:
|
2024 |
2023 |
|
£ |
£ |
Remuneration |
97,500 |
60,000 |
|
-------- |
-------- |
|
|
|
Two of the company directors are paid via a sister company, and management charges are paid across to that company towards the wages expense.
10.
Other interest receivable and similar income
|
2024 |
2023 |
|
£ |
£ |
Interest on cash and cash equivalents |
9,043 |
951 |
|
------- |
---- |
|
|
|
11.
Interest payable and similar expenses
|
2024 |
2023 |
|
£ |
£ |
Interest on banks loans and overdrafts |
47,634 |
53,784 |
|
-------- |
-------- |
|
|
|
12.
Tax on profit
Major components of tax expense
Current tax:
UK current tax expense |
23,895 |
117,934 |
|
-------- |
--------- |
Tax on profit |
23,895 |
117,934 |
|
-------- |
--------- |
|
|
|
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 |
12,504 |
479,178 |
|
-------- |
--------- |
Profit on ordinary activities by rate of tax |
3,005 |
91,044 |
Effect of expenses not deductible for tax purposes |
– |
4,187 |
Effect of capital allowances and depreciation |
20,890 |
22,703 |
|
-------- |
--------- |
Tax on profit |
23,895 |
117,934 |
|
-------- |
--------- |
|
|
|
13.
Tangible assets
|
Short Leasehold Properties |
Fixtures and fittings |
Equipment |
Total |
|
£ |
£ |
£ |
£ |
Cost |
|
|
|
|
At 1 February 2023 |
845,245 |
573,691 |
161,710 |
1,580,646 |
Additions |
– |
– |
2,847 |
2,847 |
|
--------- |
--------- |
--------- |
------------ |
At 31 January 2024 |
845,245 |
573,691 |
164,557 |
1,583,493 |
|
--------- |
--------- |
--------- |
------------ |
Depreciation |
|
|
|
|
At 1 February 2023 |
599,941 |
548,436 |
136,792 |
1,285,169 |
Charge for the year |
52,749 |
24,964 |
14,876 |
92,589 |
|
--------- |
--------- |
--------- |
------------ |
At 31 January 2024 |
652,690 |
573,400 |
151,668 |
1,377,758 |
|
--------- |
--------- |
--------- |
------------ |
Carrying amount |
|
|
|
|
At 31 January 2024 |
192,555 |
291 |
12,889 |
205,735 |
|
--------- |
--------- |
--------- |
------------ |
At 31 January 2023 |
245,304 |
25,255 |
24,918 |
295,477 |
|
--------- |
--------- |
--------- |
------------ |
|
|
|
|
|
14.
Stocks
|
2024 |
2023 |
|
£ |
£ |
Raw materials and consumables |
1,171,526 |
1,201,757 |
|
------------ |
------------ |
|
|
|
15.
Debtors
|
2024 |
2023 |
|
£ |
£ |
Trade debtors |
670 |
730 |
Amounts owed by group undertakings |
48,828 |
– |
Prepayments and accrued income |
74,440 |
93,653 |
|
--------- |
-------- |
|
123,938 |
94,383 |
|
--------- |
-------- |
|
|
|
16.
Creditors:
amounts falling due within one year
|
2024 |
2023 |
|
£ |
£ |
Trade creditors |
73,304 |
98,080 |
Amounts owed to group undertakings |
1,571,260 |
1,143,717 |
Accruals and deferred income |
66,965 |
23,128 |
Corporation tax |
23,895 |
117,935 |
Social security and other taxes |
324,093 |
356,134 |
Director loan accounts |
599 |
599 |
Other creditors |
110,233 |
77,904 |
|
------------ |
------------ |
|
2,170,349 |
1,817,497 |
|
------------ |
------------ |
|
|
|
17.
Employee benefits
Defined contribution plans
The amount recognised in profit or loss as an expense in relation to defined contribution plans was £
27,525
(2023: £
25,033
).
The pension creditor at 31st January 2023 is £4,598 (2023 £5,198).
18.
Called up share capital
Issued, called up and fully paid
|
2024 |
2023 |
|
No. |
£ |
No. |
£ |
Ordinary shares of £ 1 each |
2 |
2 |
2 |
2 |
|
---- |
---- |
---- |
---- |
|
|
|
|
|
19.
Analysis of changes in net debt
|
At 1 Feb 2023 |
Cash flows |
At 31 Jan 2024 |
|
£ |
£ |
£ |
Cash at bank and in hand |
2,652,632 |
431,879 |
3,084,511 |
Debt due within one year |
(1,144,316) |
(427,543) |
(1,571,859) |
|
------------ |
--------- |
------------ |
|
1,508,316 |
4,336 |
1,512,652 |
|
------------ |
--------- |
------------ |
|
|
|
|
Ann's Cottage Surf Shop (Wadebridge) Limited |
|
Notes to the Financial Statements (continued) |
|
Year ended 31 January 2024
20.
Operating leases
The total future minimum lease payments under non-cancellable operating leases are as follows:
|
2024 |
2023 |
|
£ |
£ |
Not later than 1 year |
353,409 |
424,909 |
Later than 1 year and not later than 5 years |
511,199 |
666,532 |
Later than 5 years |
77,928 |
147,103 |
|
--------- |
------------ |
|
942,536 |
1,238,544 |
|
--------- |
------------ |
|
|
|
21.
Related party transactions
Transactions with associates
Ann's Cottage Surf Shop (Wadebridge) Limited
has transactions with associated entities. During the year the company purchased stock of £5,685,588 (2023 - £6,894,165) from an associate. Management charges of £42,636 (2023 - £15,500) were also charged by the associated company during the year. At the balance sheet date, the amount owed to the associated company was £1,571,260 (2023 - £1,143,717). There were further transactions with associated entities during the year of £48,828 (2023 - £164). At the balance sheet date the amount owed by these associated entities was £48,828. In addition there was a trade receivable balance owed by an associated company of £670. Transactions with directors There was no net movement in the directors loan account during the year. The balance due to the director at the year end was £599 (2023 £599). The loan is non interest bearing and repayable on demand. Management charges of £25,000 (2023 - £35,000) were payable to a director in the year. Summary of transactions with other related parties During the year the company entered into the following transactions with related parties. Consultancy services were provided by another related party to the value of £10,440 (2023 - £181,140). The company is a lessee of one of its sites from a pension scheme owned by R Cornelius and E Doney. During the year rents of £47,500 (2023 - £57,651) were paid to the scheme.