Registered number: 00894840
Collingwood Batchellor Limited
Annual report and financial statements
For the period ended 28 January 2024
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Collingwood Batchellor Limited
Company Information
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Mr D Morley (appointed 14 February 2024)
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Statutory Auditor & Chartered Accountants
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Collingwood Batchellor Limited
Contents
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Independent auditors' report
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Statement of comprehensive income
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Statement of changes in equity
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Notes to the financial statements
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Collingwood Batchellor Limited
Directors' report
For the period ended 28 January 2024
The Directors present their report and the financial statements for the period ended 28 January 2024.
Directors' responsibilities statement
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The Directors are responsible for preparing the Strategic report, the 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.
In preparing these financial statements, the Directors are required to:
∙select suitable accounting policies for the Company's financial statements and then apply them consistently;
∙make judgements 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 to 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.
The Directors are responsible for the maintenance and integrity of the corporate and financial information included on the Company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements and other information included in Directors' reports may differ from legislation in other jurisdictions.
The Company's principal activity is the operation of home and furniture retail department stores.
The profit for the period, after taxation, amounted to £1,454,263 (2023 - £1,540,242).
Dividends totalling £560,512 (2023 - £480,784) were paid during the period.
The Directors who served during the period were:
Page 1
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Collingwood Batchellor Limited
Directors' report (continued)
For the period ended 28 January 2024
The company has continued to invest, diversify and improve the business. The Company has now converted the warehouse area in the Worthing store to extend the retail site and the first apartment is now completed and generating rental income.
A further eight residential flats will be built at the Worthing Store, with work commencing in May 2024. These will be completed by Summer 2025. Following on from this work, the façade of the building will be refurbished.
The Horley store completed works to the second floor of the store, which have been well received. Work will begin in June to improve and refurbish the ground and first floor retails areas to enhance the customer experience. The project will be funded by the Company’s own cash reserves.
The Company's principal financial instruments comprise bank balances, trade creditors, trade debtors and loans to the Company. The main purpose of these instruments is to raise funds to finance the Company's operations. The main risks arising from the financial instruments are credit risk, liquidity risk, and interest rate risk.
Due to the nature of the financial instruments used by the Company, there is no exposure to price risk. The Company's approach to managing other risks applicable to the financial instruments concerned is set out below.
In respect of bank balances, the liquidity risk is managed by maintaining a balance between the continuity of funding and flexibility through the use of the Company's bank balances.
In respect of loans, these comprise loans from financial institutions. The interest rate on loans from financial institutions is variable, but the monthly repayments are fixed. The Company manages the liquidity risk by ensuring that there are sufficient funds to meet the repayments.
Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding in terms of both time and credit limits.
Trade creditors' liquidity risk is managed by ensuring that sufficient funds are available to meet amounts due.
Disclosure of information to auditors
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Each of the persons who are Directors at the time when this Directors' report is approved has confirmed that:
∙so far as the Director is aware, there is no relevant audit information of which the Company's auditors are unaware, and
∙the Director has taken all the steps that ought to have been taken as a Director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.
Post balance sheet events
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There have been no significant events affecting the Company since the year end.
Page 2
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Collingwood Batchellor Limited
Directors' report (continued)
For the period ended 28 January 2024
The auditors, Kreston Reeves LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
Mr G C J Collingwood
Director
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Page 3
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Collingwood Batchellor Limited
Strategic report
For the period ended 28 January 2024
The Directors have pleasure in presenting the strategic report, which can be read in conjunction with the Directors' report.
The Directors are pleased with the Company’s results overall. In spite of the “Cost of Living Crisis” and the current economic climate, turnover was 2.5% higher than the prior year and the Company has still managed to maintain a gross profit margin of approximately 48%.
The Self-Storage business remains strong, with turnover from this income stream exceeding £250k in this financial year. The Company has now started making plans to augment the Self-Storage business.
Principal risks and uncertainties
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The principal risks and uncertainties facing the business are set out below.
1) Profitability may fluctuate
The Company's results may vary significantly as the result of many factors, many of which are outside our control. Factors which may affect our results include the following:
• the ability of the Company to retain existing customers and attract new ones;
• the amount and timing of expenditure required for the maintenance and expansion of the business;
• competitor pricing position that can affect the Company's business in terms of costs.
The Company closely reviews consumer demands alongside market and industry trends, with advertising comprising a large proportion of its overhead expenses.
The Company also looks to ensure that it has adequate levels of finance in place to support its operations and projects, whilst monitoring cashflow levels constantly.
2) Products
The quality of our products is of the utmost importance and there is an associated risk if they are below standard. The Company has strict product controls in place and liaises closely with suppliers to counteract any quality issues.
3) Consumer demand
General economic factors and trends in the marketplace can potentially affect consumer demand for products, this has certainly been evident post-pandemic and with the “Cost of Living Crisis”. The Company continues to focus on expansion (through seeking out new products and customer bases, advertising and developing online sales), as well as diversification through the self-storage rental business and property development.
4) Covid-19
Some of the economic effects of the Covid-19 pandemic outbreak are still being experienced, and the Company has sought to mitigate this risk by following the UK Government's guidelines and continuing to develop its own internal strategies. The Company has taken advantage of government assistance measures such as the Coronavirus Job Retention ("Furlough") Scheme, Coronavirus Business Interruption Loan Scheme ("CBILS"), business rates relief, small business grant schemes and Company bank loan "payment holidays" in the period following the pandemic which first started in March 2020.
5) Cost inflation
Post-pandemic and post-BREXIT, cost inflation remains a challenge to the Company; this is a result of factors including (amongst other things) rising energy prices, shipping costs, wages, changing interest rates and the war in Ukraine. The Company constantly monitors costs, in tandem with cashflow and has pursued cost-reduction and rationalisation strategies. However, it also endeavours to maintain gross and net profit margins by not solely competing on price – but also on other factors such as quality, product differentiation and service delivery.
Page 4
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Collingwood Batchellor Limited
Strategic report (continued)
For the period ended 28 January 2024
Financial key performance indicators
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The key performance indicator for the Company is turnover, which is monitored by the directors on a monthly basis. Turnover has increased by approximately 2.5% to £11,707,440 in 2024 from £11,421,198 in 2023.
This report was approved by the board and signed on its behalf.
Mr G C J Collingwood
Director
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Page 5
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Collingwood Batchellor Limited
Independent auditors' report to the members of Collingwood Batchellor Limited
We have audited the financial statements of Collingwood Batchellor Limited (the 'Company') for the period ended 28 January 2024, which comprise the Statement of comprehensive income, the Balance sheet, the Statement of cash flows, the Statement of changes in equity and the related notes, 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 28 January 2024 and of its profit for the period 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.
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 Auditors' 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 United Kingdom, including the Financial Reporting Council'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
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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.
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' 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.
Page 6
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Collingwood Batchellor Limited
Independent auditors' report to the members of Collingwood Batchellor Limited (continued)
Opinion on other matters prescribed by the Companies Act 2006
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In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Strategic report and the Directors' report for the financial period for which the financial statements are prepared is consistent with the financial statements; and
∙the Strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
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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:
∙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
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As explained more fully in the Directors' responsibilities statement set out on page 1, 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.
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Collingwood Batchellor Limited
Independent auditors' report to the members of Collingwood Batchellor Limited (continued)
Auditors' responsibilities for the audit of the financial statements
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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 Auditors' 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, and through discussion with the directors and other management (as required by auditing standards), we identified that the principal risks of non-compliance with laws and regulations related to health and safety, GDPR and employment law. We considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006, Statement of Recommended Practice, taxation and pension legislation. We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit. 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 posting inappropriate journal entries to increase revenue or reduce expenditure, management bias in accounting estimates and judgemental areas of the financial statements such as the valuation of freehold properties. Audit procedures performed by the engagement team included:
∙Discussions with management and assessment of known or suspected instances of non-compliance with laws and regulations (including health and safety) and fraud, and review of the reports made by management;
∙Assessment of identified fraud risk factors;
∙Performing proof in total calculations on other operating income to ensure correct revenue recognition;
∙Challenging assumptions and judgements made by management in its significant accounting estimates;
∙Performing substantive procedures on material income streams to ensure correct revenue recognition;
∙Checking and reperforming the reconciliation of key control accounts;
∙Performing analytical procedures to identify any unusual or unexpected relationships, including related party transactions, that may indicate risks of material misstatement due to fraud;
∙Confirmation of related parties with management, and review of transactions throughout the period to identify any previously undisclosed transactions with related parties outside the normal course of business;
∙Performing analytical procedures with automated data analytics tools to identify any unusual or unexpected relationships, including related party transactions, that may indicate risks of material misstatement due to fraud;
∙Reading minutes of meetings of those charged with governance and reviewing correspondence with relevant tax and regulatory authorities;
∙Physical inspection of tangible assets susceptible to fraud or irregularity;
∙Verifying cash at bank balances as at the reporting date to the bank audit letter
∙Review of significant and unusual transactions and evaluation of the underlying financial rationale supporting the transactions; and
∙Identifying and testing journal entries, in particular any manual entries made at the year end for financial statement preparation.
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 or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.
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Collingwood Batchellor Limited
Independent auditors' report to the members of Collingwood Batchellor Limited (continued)
As part of an audit in accordance with ISAs (UK), we exercise professional judgement and maintain professional scepticism throughout the audit. We also:
∙Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
∙Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion of the effectiveness of the Company's internal control.
∙Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Directors.
∙Conclude on the appropriateness of the Directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our Auditors' report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our Auditors' report. However, future events or conditions may cause the Company to cease to continue as a going concern.
∙Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
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 Auditors' 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.
James Peach FCA (Senior statutory auditor)
for and on behalf of
Kreston Reeves LLP
Statutory Auditor
Chartered Accountants
Horsham
23 October 2024
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Collingwood Batchellor Limited
Statement of comprehensive income
For the period ended 28 January 2024
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Interest receivable and similar income
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Interest payable and similar expenses
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Profit for the financial period
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There were no recognised gains and losses for 2024 or 2023 other than those included in the statement of comprehensive income.
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There was no other comprehensive income for 2024 (2023:£NIL).
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The notes on pages 14 to 33 form part of these financial statements.
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Page 10
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Collingwood Batchellor Limited
Registered number: 00894840
Balance sheet
As at 28 January 2024
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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Creditors: amounts falling due after more than one year
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Provisions for liabilities
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Capital redemption reserve
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Investment property revaluation reserve
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The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 14 to 33 form part of these financial statements.
Page 11
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Collingwood Batchellor Limited
Statement of changes in equity
For the period ended 28 January 2024
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Capital redemption reserve
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Investment property revaluation reserve
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Transfer to non-distributable reserves
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Dividends: Equity capital
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Statement of changes in equity
For the period ended 29 January 2023
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Capital redemption reserve
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Dividends: Equity capital
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The notes on pages 14 to 33 form part of these financial statements.
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Page 12
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Collingwood Batchellor Limited
Statement of cash flows
For the period ended 28 January 2024
Cash flows from operating activities
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Profit for the financial period
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Amortisation of intangible assets
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Depreciation of tangible assets
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Profit on disposal of tangible assets
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Decrease/(increase) in stocks
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(Increase)/decrease in debtors
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Net fair value (gains)/losses recognised in P&L
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Net cash generated from operating activities
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Cash flows from investing activities
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Purchase of intangible fixed assets
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Purchase of tangible fixed assets
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Sale of tangible fixed assets
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Purchase of investment properties
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Net cash from investing activities
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Cash flows from financing activities
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Repayment of/new finance leases
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Net cash used in financing activities
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Net (decrease) in cash and cash equivalents
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Cash and cash equivalents at beginning of period
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Cash and cash equivalents at the end of period
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Cash and cash equivalents at the end of period comprise:
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Page 13
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Collingwood Batchellor Limited
Notes to the financial statements
For the period ended 28 January 2024
Collingwood Batchellor Limited is a private company limited by shares, incorporated in England with the registration number 00894840. The address of the registered office is 46 Victoria Road, Horley, Surrey RH6 7QE.
The Company's principal activity is the operation of home, furniture and retail department stores.
The accounts are presented in sterling and rounded to the nearest £1.
2.Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies (see note 3).
The Company is the parent undertaking of a medium group but the subsidiary undertakings are dormant, and as such is not required by the Companies Act 2006 to prepare group accounts. These financial statements therefore present information about the Company as an individual undertaking and not about its group.
The following principal accounting policies have been applied:
The Company meets its day-to-day capital requirements through its bank facilities. The current economic climate continues to create uncertainty over (a) the level of demand for the Company’s products; and (b) the availability of bank finance for the foreseeable future. The Company’s forecasts and projections, taking account of reasonably possible changes in trading performance, show that the Company should be able to operate within the level of its current facilities, which includes a "CBILS" (Coronavirus Business Interruption Loan Scheme) loan. After making enquiries, the Directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. The Company therefore continues to adopt the going concern basis in preparing its financial statements.
Turnover is recognised to the extent that it is probable that the economic benefits will flow to the Company and the turnover can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.
Shop Sales
Turnover comprising shop sales of goods is recognised when the goods are sold to the customer, and is stated net of value-added tax and trade discounts.
Goods ordered for future delivery
Turnover comprising sales ordered in-store or online is recognised when the goods are delivered to the customer, and is stated net of value-added tax and trade discounts.
Page 14
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Collingwood Batchellor Limited
Notes to the financial statements
For the period ended 28 January 2024
2.Accounting policies (continued)
Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.
All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.
The estimated useful lives range as follows:
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straight line over 4 years
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Amortisation of computer software is included within Administration expenses in the Statement of comprehensive income.
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
Land is not depreciated. Depreciation on other assets is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
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straight line over 50 years
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Short term leasehold properties
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straight line over the life of the lease
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Plant, machinery, motor vehicles, fixtures and fittings
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straight line over 3 to 5 years
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The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
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Impairment of fixed assets and goodwill
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Assets that are subject to depreciation or amortisation are assessed at each balance sheet date to determine whether there is any indication that the assets are impaired. Where there is any indication that an asset may be impaired, the carrying value of the asset (or cash-generating unit to which the asset has been allocated) is tested for impairment. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's (or CGU's) fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (CGUs). Non-financial assets that have been previously impaired are reviewed at each balance sheet date to assess whether there is any indication that the impairment losses recognised in prior periods may no longer exist or may have decreased.
Page 15
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Collingwood Batchellor Limited
Notes to the financial statements
For the period ended 28 January 2024
2.Accounting policies (continued)
Investment property is carried at fair value determined annually by internal valuers and derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset. No depreciation is provided. Changes in fair value are recognised in profit or loss.
Investments in subsidiaries are measured at cost less accumulated impairment.
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis.
At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.
Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives. Assets acquired by hire purchase are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to profit or loss so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.
Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.
The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” 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 trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.
Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of
Page 16
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Collingwood Batchellor Limited
Notes to the financial statements
For the period ended 28 January 2024
2.Accounting policies (continued)
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Financial instruments (continued)
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financial instruments.
Other financial assets
Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.
Impairment of financial assets
Financial assets are assessed for indicators of impairment at each reporting date.
Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.
If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.
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 the deduction of all its liabilities.
Basic financial liabilities, which include trade and other payables, bank loans and other loans are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.
Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.
Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.
Derecognition of financial assets
Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained.
Page 17
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Collingwood Batchellor Limited
Notes to the financial statements
For the period ended 28 January 2024
2.Accounting policies (continued)
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Financial instruments (continued)
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Derecognition of financial liabilities
Financial liabilities are derecognised when the Company's contractual obligations expire or are discharged or cancelled.
Defined contribution pension plan
The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.
The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the Company in independently administered funds.
Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.
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Current and deferred taxation
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The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.
Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.
Page 18
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Collingwood Batchellor Limited
Notes to the financial statements
For the period ended 28 January 2024
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Judgements in applying accounting policies and key sources of estimation uncertainty
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The preparation of the financial statements requires the Directors to make judgements, estimates and assumptions than can affect the amounts reported for assets and liabilities, and the results for the period. The nature of estimation is such that actual outcomes could differ significantly from those estimates.
The following judgements and estimates have had the most significant impact on amounts recognised in the financial statements:
Freehold property
Included within tangible fixed assets is freehold property with a carrying value of £6,603,030 (2023 - £6,456,468) at the reporting date (see Note 15).
The value of land included within freehold property was determined by the Directors’ judgement at the date of purchase.
The residual values of buildings and their useful economic lives have been determined by the Directors’ judgement.
Where there are indicators that the carrying value of freehold property may be impaired, the Company undertakes tests to determine the recoverable amount of the property. These tests require estimates of the fair value of the property less costs to sell, and of its value in use. Wherever possible, the estimate of the fair value is based upon observable market prices.
Investment property
The Company has investment property with a value of £350,000 at the reporting date. The fair value of investment property has been determined by the Directors on an open market value. They have used a valuation technique based on comparable market data. The determined fair value of the investment property is most sensitive to fluctuations in the property market.
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All turnover arose within the United Kingdom.
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Page 19
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Collingwood Batchellor Limited
Notes to the financial statements
For the period ended 28 January 2024
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Net rents receivable - Self Storage
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Net rents receivable - Residential
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The operating profit is stated after charging:
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Other operating lease rentals
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During the period, the Company obtained the following services from the Company's auditors:
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Fees payable to the Company's auditors for the audit of the Company's financial statements
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Page 20
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Collingwood Batchellor Limited
Notes to the financial statements
For the period ended 28 January 2024
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Staff costs, including Directors' remuneration, were as follows:
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Cost of defined contribution scheme
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The average monthly number of employees, including the Directors, during the period was as follows:
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Company contributions to defined contribution pension schemes
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During the period retirement benefits were accruing to 4 Directors (2023 - 4) in respect of defined contribution pension schemes.
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The highest paid Director received remuneration of £67,415 (2023 - £64,500).
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The value of the Company's contributions paid to a defined contribution pension scheme in respect of the highest paid Director amounted to £775 (2023 - £1,763).
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Other interest receivable
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Page 21
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Collingwood Batchellor Limited
Notes to the financial statements
For the period ended 28 January 2024
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Interest payable and similar expenses
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Finance leases and hire purchase contracts
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Current tax on profits for the year
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Adjustments in respect of previous periods
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Origination and reversal of timing differences
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Page 22
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Collingwood Batchellor Limited
Notes to the financial statements
For the period ended 28 January 2024
12.Taxation (continued)
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Factors affecting tax charge for the period
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The tax assessed for the period is lower than (2023 - lower than) the standard rate of corporation tax in the UK of 24.03% (2023 - 19%). The differences are explained below:
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Profit on ordinary activities before tax
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Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 24.03% (2023 - 19%)
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Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
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Capital allowances for period in excess of depreciation
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Other timing differences leading to an increase/ (decrease) in taxation
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Total tax charge for the period
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Factors that may affect future tax charges
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On 24 May 2021, the Finance Bill 2021 was substantively enacted, increasing the main rate of corporation tax to 25% on 1 April 2023, for companies with taxable profits above £250,000. Companies with taxable profits below £50,000 will continue to pay at 19%, and marginal relief will apply between these thresholds.
Deferred taxes have been measured using rates substantively enacted at the reporting date and reflected in these financial statements.
Page 23
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Collingwood Batchellor Limited
Notes to the financial statements
For the period ended 28 January 2024
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Charge for the period on owned assets
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Page 24
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Collingwood Batchellor Limited
Notes to the financial statements
For the period ended 28 January 2024
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Short-term leasehold property
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Plant, machinery, motor vehicles, fixtures and fittings
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Transfers between classes
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Charge for the period on owned assets
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The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:
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Page 25
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Collingwood Batchellor Limited
Notes to the financial statements
For the period ended 28 January 2024
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Investments in subsidiary companies
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The following were subsidiary undertakings of the Company:
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Gatwick Self Storage Limited
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Both H G Scadgell Limited and Gatwick Self Storage Limited are private companies incorporated in England, the registered office address of both companies is 46 Victoria Road, Horley, Surrey RH6 7QE.
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The aggregate of the share capital and reserves as at 28 January 2024 and the profit or loss for the period ended on that date for the subsidiary undertakings was as follows:
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Gatwick Self Storage Limited
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Page 26
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Collingwood Batchellor Limited
Notes to the financial statements
For the period ended 28 January 2024
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Freehold investment property
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Transfers between classes
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The 2024 valuations were made by the Directors, on an open market value for existing use basis.
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Finished goods and goods for resale
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The carrying value of stocks are stated net of impairment losses totalling £76,090 (2023 - £80,884). Reversal of impairment losses totalling £4,794 (2023 - £2,118 impairment losses) were recognised in profit and loss.
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Prepayments and accrued income
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Page 27
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Collingwood Batchellor Limited
Notes to the financial statements
For the period ended 28 January 2024
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Cash and cash equivalents
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Creditors: Amounts falling due within one year
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Amounts owed to group undertakings
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Other taxation and social security
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Obligations under finance lease and hire purchase contracts
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Accruals and deferred income
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Creditors: Amounts falling due after more than one year
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Net obligations under finance leases and hire purchase contracts
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Page 28
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Collingwood Batchellor Limited
Notes to the financial statements
For the period ended 28 January 2024
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Analysis of the maturity of loans is given below:
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Amounts falling due within one year
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Amounts falling due 1-2 years
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Amounts falling due 2-5 years
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Amounts falling due after more than 5 years
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Page 29
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Collingwood Batchellor Limited
Notes to the financial statements
For the period ended 28 January 2024
23. (continued)
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Secured bank loans
The Company has six secured loans with Barclays Plc.
The first loan of £718,925 (2023 - £806,956) incurs interest at a rate of 1% above the Bank of England base rate. The repayments commenced 25 months after the first drawdown, in April 2009. The loan will finally be repaid via 276 monthly instalments by March 2034. The loan is secured by a fixed charge over the Company's freehold property.
A second loan of £800,000 was advanced in 2011. At the period end £185,753 (2023 - £246,183) was outstanding. This loan incurs an interest rate of 2.25% over the Bank of England base rate. The repayments commenced 1 month after the first drawdown, in July 2011 and this loan is repayable via 180 monthly instalments by June 2026. This bank loan is secured by a fixed charge over the freehold properties at Worthing, West Sussex.
A third loan of £2,200,000 was advanced in October 2016. The loan terms were renegotiated in March 2021. At the period end £1,440,292 (2023 - £1,557,866) was outstanding. This loan incurs an interest rate of 2.15% over the Bank of England base rate. This loan is repayable via 53 monthly instalments, along with a final lump sum repayment by February 2026. This bank loan is secured by a fixed charge over the Company's freehold property at Crawley, West Sussex.
A fourth loan of £300,000 was advanced in March 2017. The loan terms were renegotiated in April 2022. At the period end £188,456 (2023 - £204,836) was outstanding. This loan incurs an interest rate of 2.15% over the Bank of England base rate. The repayments commenced 1 month after the first drawdown, in April 2017. This loan is repayable via 59 monthly instalments, along with a final lump sum repayment by March 2027. This bank loan is secured by a fixed charge over the Company's freehold property.
A fifth loan of £250,000 was advanced in August 2019. At the period end £191,028 (2023 - £208,937) was outstanding. This loan incurs an interest rate of 2.00% over the Bank of England base rate. The repayments commenced 1 month after the first drawdown, in September 2019. This loan is repayable via 59 monthly instalments by August 2024 along with a final lump sum repayment in August 2024. This bank loan is secured by a fixed charge over the Company's freehold property.
A sixth £350,000 CBILS (Coronavirus Business Interruption Loan Scheme) loan was advanced in December 2020; at the period end £210,000 (2023 - £280,000) was outstanding. The loan term is 6 years with one year interest-free from drawdown, incurring an interest rate of 2.80% over the Bank of England base rate thereafter. The loan is a government-backed loan (80% guarantee amounting to £280,000), secured by a fixed charge over the Company's freehold property.
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Hire purchase and finance leases
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Minimum lease payments under hire purchase fall due as follows:
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The assets held under finance leases or hire purchase contracts have been capitalised within tangible fixed assets and are disclosed in note 15.
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Page 30
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Collingwood Batchellor Limited
Notes to the financial statements
For the period ended 28 January 2024
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Charged to profit or loss
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The provision for deferred taxation is made up as follows:
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Accelerated capital allowances
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Allotted, called up and fully paid
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15,100 (2023 - 15,100) Ordinary shares shares of £1.00 each
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Capital redemption reserve
This reserve records the nominal value of shares repurchased by the Company. This reserve is not distributable.
Investment property revaluation reserve
The Company uses the revaluation model for the measurement of its investment property. This reserve records the revaluation surplus recognised less the related provision for deferred tax. This is a non-distributable reserve.
Profit and loss account
The profit and loss account comprises all current and prior period retained profits and losses after deducting any distributions made to the Company's shareholders. This is a distributable reserve.
Page 31
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Collingwood Batchellor Limited
Notes to the financial statements
For the period ended 28 January 2024
The Company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £61,967 (2023 - £57,396). Total contributions payable at the period end were £Nil (2023 - £Nil).
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Commitments under operating leases
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At 28 January 2024 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:
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Later than 1 year and not later than 5 years
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Later than 1 year and not later than 5 years
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Page 32
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Collingwood Batchellor Limited
Notes to the financial statements
For the period ended 28 January 2024
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Related party transactions
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The Company has taken advantage of the exemption in Financial Reporting Standard 102 section 33.1A from disclosing transactions and balances with wholly-owned subsidiaries of Collingwood Batchellor Limited.
During the period a Company director purchased goods from the Company for £2,245 (2023 - £584), including VAT. At the period end, £1,696 (2023 - £355) was still outstanding in respect of payment for these goods.
During the period another Company director purchased goods from the Company for £2,652 (2023 - £1,045), including VAT. At the period end, £Nil (2023 - £Nil) was still outstanding in respect of payment for these goods.
During the period a third Company director purchased goods from the Company for £364 (2023 - £39) including VAT. At the period end, £5 (2023 - £5) was owed to this director.
During the period two of the directors of the Company received dividends amounting to £280,256 each (2023 - £240,392 each), by virtue of their shareholdings. At the period end a balance of £38 (2023 - £38) was due to each of these directors by the Company.
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The controlling parties are Mr T Collingwood and Mr G Collingwood by virtue of their shareholdings.
Page 33
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