REGISTERED NUMBER: 06505358 (England and Wales) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 JANUARY 2024 |
FOR |
A & J AUDHALI ENTERPRISES LIMITED |
REGISTERED NUMBER: 06505358 (England and Wales) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 JANUARY 2024 |
FOR |
A & J AUDHALI ENTERPRISES LIMITED |
A & J AUDHALI ENTERPRISES LIMITED (REGISTERED NUMBER: 06505358) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
for the year ended 31 January 2024 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 3 |
Report of the Independent Auditors | 5 |
Consolidated Income Statement | 8 |
Consolidated Other Comprehensive Income | 9 |
Consolidated Balance Sheet | 10 |
Company Balance Sheet | 11 |
Consolidated Statement of Changes in Equity | 12 |
Company Statement of Changes in Equity | 13 |
Consolidated Cash Flow Statement | 14 |
Notes to the Consolidated Cash Flow Statement | 15 |
Notes to the Consolidated Financial Statements | 16 |
A & J AUDHALI ENTERPRISES LIMITED |
COMPANY INFORMATION |
for the year ended 31 January 2024 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants and Statutory Auditor |
Highdown House |
11 Highdown Road |
Leamington Spa |
Warwickshire |
CV31 1XT |
BANKERS: | Lloyds Bank plc |
12 Swan Street |
Warwick |
CV34 4BJ |
A & J AUDHALI ENTERPRISES LIMITED (REGISTERED NUMBER: 06505358) |
GROUP STRATEGIC REPORT |
for the year ended 31 January 2024 |
The directors present their strategic report of the company and the group for the year ended 31 January 2024. |
REVIEW OF BUSINESS |
During the year the group's turnover increased by 12% from £27,195,212 to £30,356,058 and a profit before taxation of £2,878,445 (2023: £2,106,057) was achieved. |
Shareholders' funds at 31 January 2024 amounted to £7,261,647 (2023: £6,859,521). The directors consider the state of affairs of the company and group to be satisfactory. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The company's and group's principal exposure to risks are through pricing volatility, both as a result of changes in prices of products and through exchange rate fluctuations, as management are in part reliant on suppliers based overseas. |
Management are mindful of these key risks to the business and have adopted strategies, which include: continued scrutiny of pricing and rates of exchange; sourcing of product from various suppliers; and management of the purchase cycle. |
Management also acknowledge exposure to interest rate and credit risks and these are also assessed continuously in order to minimise their impact. |
FUTURE DEVELOPMENTS |
Continued impact of Brexit |
The directors are again pleased at how well the company and group have been able to trade throughout 2023/24, when the impact of Brexit continued to be felt across the UK. |
Given how well the company and group have managed to trade during this period, the directors are confident that the company and group will still be profitable in the forthcoming 12 months and beyond although, even now, some uncertainties persist. |
The directors are still mindful of the impact of the UK's exit from the European Union and these associated risks have been embedded into the company's and group's risk assessments. Nevertheless, the impact of "Brexit" is still being felt across the sector with supply lead times throughout 2023/24 continuing to be the most acute of the limiting factors on trading. However, the directors believe the company and group are relatively insulated in the medium term against this and the other risks related to "Brexit" as the company and group overwhelmingly trade in the UK and have strong and well established supply links with their suppliers and manufacturers, some of who are in the European Union. |
As such, the directors believe the company and the group to be a going concern and have adopted this assumption in preparing the financial statements, having considered any material uncertainties in this regard for a period of at least 12 months from the date of approval of these financial statements. |
ON BEHALF OF THE BOARD: |
A & J AUDHALI ENTERPRISES LIMITED (REGISTERED NUMBER: 06505358) |
REPORT OF THE DIRECTORS |
for the year ended 31 January 2024 |
The directors present their report with the financial statements of the company and the group for the year ended 31 January 2024. |
PRINCIPAL ACTIVITY |
The principal activity of the group in the year under review was that of meat wholesalers to the catering industry. |
DIVIDENDS |
The total distribution of dividends for the year ended 31 January 2024 for the parent company will be £1,642,896. |
The total distribution of dividends for the year ended 31 January 2024 for the subsidiary company will be £75,071. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 February 2023 to the date of this report. |
A A Audhali |
J A Audhali |
DISCLOSURE IN THE STRATEGIC REPORT |
The group's review of business, principal risks and uncertainties and future developments are disclosed within the strategic report. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors 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 group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
A & J AUDHALI ENTERPRISES LIMITED (REGISTERED NUMBER: 06505358) |
REPORT OF THE DIRECTORS |
for the year ended 31 January 2024 |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
A & J AUDHALI ENTERPRISES LIMITED |
Opinion |
We have audited the financial statements of A & J Audhali Enterprises Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 January 2024 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, 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 group's and of the parent company affairs as at 31 January 2024 and of the group's 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors 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 this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
A & J AUDHALI ENTERPRISES LIMITED |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors. |
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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company 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 three, 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 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 group's and the parent 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 group or the parent company or to cease operations, or have no realistic alternative but to do so. |
Auditors' 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 a Report of the Auditors 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. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
The audit process includes an assessment of the company's and the group's risk environment, through enquiry of and discussion with management, including an assessment of any key laws and regulations with which the company and group must comply in the ordinary course of its business. |
Additionally, the overall risks of irregular transactions occurring are assessed following our observations and confirmation of the design and implementation of management's controls. Whilst we are mindful of these risks, our audit focus is geared towards the risk of material misstatement in the financial statements as a whole. |
As such, our procedures cannot guarantee that all transactions have been fully compliant with all relevant laws and regulations, including those regulations relating to fraud, as our procedures are not designed to detect all instances of non-compliance. By definition, the risk of our detection of non-compliance is greater where compliance with a law or regulation is removed from the events and transactions reflected in the financial statements. The risk is also greater regarding irregularities due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
A & J AUDHALI ENTERPRISES LIMITED |
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 a Report of the Auditors 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. |
for and on behalf of |
Chartered Accountants and Statutory Auditor |
Highdown House |
11 Highdown Road |
Leamington Spa |
Warwickshire |
CV31 1XT |
A & J AUDHALI ENTERPRISES LIMITED (REGISTERED NUMBER: 06505358) |
CONSOLIDATED |
INCOME STATEMENT |
for the year ended 31 January 2024 |
2024 | 2023 |
Notes | £ | £ |
TURNOVER | 3 | 30,356,058 | 27,195,212 |
Cost of sales | 25,579,574 | 23,183,077 |
GROSS PROFIT | 4,776,484 | 4,012,135 |
Administrative expenses | 2,029,549 | 1,930,121 |
2,746,935 | 2,082,014 |
Other operating income | 25,349 | 29,432 |
OPERATING PROFIT | 5 | 2,772,284 | 2,111,446 |
Interest receivable and similar income | 123,257 | 6,394 |
2,895,541 | 2,117,840 |
Interest payable and similar expenses | 6 | 17,096 | 11,783 |
PROFIT BEFORE TAXATION | 2,878,445 | 2,106,057 |
Tax on profit | 7 | 724,836 | 393,333 |
PROFIT FOR THE FINANCIAL YEAR |
Profit attributable to: |
Owners of the parent | 2,153,609 | 1,712,724 |
A & J AUDHALI ENTERPRISES LIMITED (REGISTERED NUMBER: 06505358) |
CONSOLIDATED |
OTHER COMPREHENSIVE INCOME |
for the year ended 31 January 2024 |
2024 | 2023 |
Notes | £ | £ |
PROFIT FOR THE YEAR | 2,153,609 | 1,712,724 |
OTHER COMPREHENSIVE INCOME |
Revaluation of properties | - | 910,807 |
Deferred tax | (48,131 | ) | (152,415 | ) |
Income tax relating to components of other comprehensive income |
- |
- |
OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX |
(48,131 |
) |
758,392 |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
2,105,478 |
2,471,116 |
Total comprehensive income attributable to: |
Owners of the parent | 2,105,478 | 2,471,116 |
A & J AUDHALI ENTERPRISES LIMITED (REGISTERED NUMBER: 06505358) |
CONSOLIDATED BALANCE SHEET |
31 January 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 10 | 2,598,977 | 2,578,361 |
Investments | 11 | - | 400,000 |
Investment property | 12 | - | - |
2,598,977 | 2,978,361 |
CURRENT ASSETS |
Stocks | 13 | 645,885 | 519,646 |
Debtors | 14 | 1,136,489 | 1,793,262 |
Cash at bank | 6,231,542 | 4,525,753 |
8,013,916 | 6,838,661 |
CREDITORS |
Amounts falling due within one year | 15 | 2,978,087 | 2,562,668 |
NET CURRENT ASSETS | 5,035,829 | 4,275,993 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
7,634,806 |
7,254,354 |
CREDITORS |
Amounts falling due after more than one year |
16 |
(43,672 |
) |
(133,386 |
) |
PROVISIONS FOR LIABILITIES | 19 | (344,102 | ) | (261,447 | ) |
NET ASSETS | 7,247,032 | 6,859,521 |
CAPITAL AND RESERVES |
Called up share capital | 20 | 200 | 200 |
Revaluation reserve | 21 | 710,261 | 758,392 |
Retained earnings | 21 | 6,536,571 | 6,100,929 |
SHAREHOLDERS' FUNDS | 7,247,032 | 6,859,521 |
The financial statements were approved by the Board of Directors and authorised for issue on 25 September 2024 and were signed on its behalf by: |
J A Audhali - Director |
A & J AUDHALI ENTERPRISES LIMITED (REGISTERED NUMBER: 06505358) |
COMPANY BALANCE SHEET |
31 January 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 10 |
Investments | 11 |
Investment property | 12 |
CURRENT ASSETS |
Debtors | 14 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 15 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
PROVISIONS FOR LIABILITIES | 19 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 20 |
Revaluation reserve | 21 |
Retained earnings | 21 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 1,326,084 | 1,034,334 |
The financial statements were approved by the Board of Directors and authorised for issue on |
A & J AUDHALI ENTERPRISES LIMITED (REGISTERED NUMBER: 06505358) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
for the year ended 31 January 2024 |
Called up |
share | Retained | Revaluation | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1 February 2022 | 200 | 4,966,829 | - | 4,967,029 |
Changes in equity |
Dividends | - | (578,624 | ) | - | (578,624 | ) |
Total comprehensive income | - | 1,712,724 | 758,392 | 2,471,116 |
Balance at 31 January 2023 | 200 | 6,100,929 | 758,392 | 6,859,521 |
Changes in equity |
Dividends | - | (1,717,967 | ) | - | (1,717,967 | ) |
Total comprehensive income | - | 2,153,609 | (48,131 | ) | 2,105,478 |
Balance at 31 January 2024 | 200 | 6,536,571 | 710,261 | 7,247,032 |
A & J AUDHALI ENTERPRISES LIMITED (REGISTERED NUMBER: 06505358) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
for the year ended 31 January 2024 |
Called up |
share | Retained | Revaluation | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1 February 2022 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - |
Balance at 31 January 2023 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - | ( |
) |
Balance at 31 January 2024 |
A & J AUDHALI ENTERPRISES LIMITED (REGISTERED NUMBER: 06505358) |
CONSOLIDATED CASH FLOW STATEMENT |
for the year ended 31 January 2024 |
2024 | 2023 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 2,773,983 | 2,388,202 |
Interest paid | (6,061 | ) | - |
Interest element of hire purchase payments paid |
(11,035 |
) |
(11,783 |
) |
Tax paid | (505,389 | ) | (350,647 | ) |
Net cash from operating activities | 2,251,498 | 2,025,772 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (176,053 | ) | (171,855 | ) |
Purchase of fixed asset investments | - | (400,000 | ) |
Sale of tangible fixed assets | 25,000 | - |
Sale of fixed asset investments | 409,012 | - |
Interest received | 123,257 | 6,394 |
Net cash from investing activities | 381,216 | (565,461 | ) |
Cash flows from financing activities |
Capital repayments in year | (123,113 | ) | (128,894 | ) |
Amount introduced by directors | 1,651,155 | 23,366 |
Amount withdrawn by directors | (737,000 | ) | (508,484 | ) |
Equity dividends paid | (1,717,967 | ) | (578,624 | ) |
Net cash from financing activities | (926,925 | ) | (1,192,636 | ) |
Increase in cash and cash equivalents | 1,705,789 | 267,675 |
Cash and cash equivalents at beginning of year |
2 |
4,525,753 |
4,258,078 |
Cash and cash equivalents at end of year | 2 | 6,231,542 | 4,525,753 |
A & J AUDHALI ENTERPRISES LIMITED (REGISTERED NUMBER: 06505358) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
for the year ended 31 January 2024 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2024 | 2023 |
£ | £ |
Profit before taxation | 2,878,445 | 2,106,057 |
Depreciation charges | 143,984 | 132,764 |
(Profit)/loss on disposal of fixed assets | (22,559 | ) | 51,201 |
Finance costs | 17,096 | 11,783 |
Finance income | (123,257 | ) | (6,394 | ) |
2,893,709 | 2,295,411 |
Increase in stocks | (126,239 | ) | (1,356 | ) |
(Increase)/decrease in trade and other debtors | (127,516 | ) | 30,458 |
Increase in trade and other creditors | 134,029 | 63,689 |
Cash generated from operations | 2,773,983 | 2,388,202 |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31 January 2024 |
31.1.24 | 1.2.23 |
£ | £ |
Cash and cash equivalents | 6,231,542 | 4,525,753 |
Year ended 31 January 2023 |
31.1.23 | 1.2.22 |
£ | £ |
Cash and cash equivalents | 4,525,753 | 4,258,078 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.2.23 | Cash flow | At 31.1.24 |
£ | £ | £ |
Net cash |
Cash at bank | 4,525,753 | 1,705,789 | 6,231,542 |
4,525,753 | 1,705,789 | 6,231,542 |
Debt |
Finance leases | (256,499 | ) | 123,113 | (133,386 | ) |
(256,499 | ) | 123,113 | (133,386 | ) |
Total | 4,269,254 | 1,828,902 | 6,098,156 |
A & J AUDHALI ENTERPRISES LIMITED (REGISTERED NUMBER: 06505358) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
for the year ended 31 January 2024 |
1. | STATUTORY INFORMATION |
A & J Audhali Enterprises Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The accounts have been prepared in accordance with applicable accounting standards. The principal accounting policies adopted in the preparation of the financial statements are set out below and have remained unchanged from the previous year. |
Basis of consolidation |
The consolidated financial statements incorporate those of A & J Audhali Enterprises Limited and its subsidiary undertaking. All financial statements are made up to 31 January 2024. |
Related party exemption |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements. |
Critical accounting judgements and key sources of estimation uncertainty |
The group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below. |
Accounting estimates: |
i) Valuation of property |
The directors annually assess the freehold buildings in the group financial statements, which is treated as investment property in the company's financial statements. These annual assessments aim to ensure that property is carried at fair value as defined by FRS 102 and will be informed by latest market data. |
As such, property is not depreciated in the group financial statements as its fair value is believed to be the same as, or not materially different to, its residual value. |
Accounting judgements: |
i) Operating leases |
The group utilises assets which it does not own and pays for on an ongoing basis. In making the judgement as to whether such arrangements constitute finance leases or operating leases, management have assessed where the substantial risk and rewards of the ownership of the assets fall, and assessed that the counter-party, rather than the company, bears substantially all of the risks and rewards of ownership of the assets. |
A & J AUDHALI ENTERPRISES LIMITED (REGISTERED NUMBER: 06505358) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 January 2024 |
2. | ACCOUNTING POLICIES - continued |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable net of returns, rebates, VAT and trade discounts. The policies adopted for the recognition of turnover are as follows: |
Sale of goods |
Turnover from the sale of goods is recognised when significant risks and rewards of ownership of the goods have transferred to the buyer, the amount of turnover can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the group and the costs incurred or to be incurred in respect of the transaction can be measured reliably. This is usually on delivery of the goods. |
Tangible fixed assets |
Improvements to properties | - |
Plant & machinery | - |
Fixtures & fittings | - |
Motor vehicles | - |
Computer equipment | - |
Tangible fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended. |
Freehold buildings within the group are not depreciated as the group assesses these annually for fair value and therefore, their residual value is considered to be equal, or at least not materially different, to the carrying value in the financial statements. |
Investment property |
Investment property is shown at most recent valuation, based upon an annual assessment of fair value. Any aggregate surplus or deficit arising from changes in fair value is recognised in the income statement, net of deferred tax. |
Stocks |
Stocks are valued at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase and other costs incurred in bringing stock to its present location and condition, including any import costs, duties and carriage. |
Financial instruments |
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the income statement. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
A & J AUDHALI ENTERPRISES LIMITED (REGISTERED NUMBER: 06505358) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 January 2024 |
2. | ACCOUNTING POLICIES - continued |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
Investments in subsidiaries |
Investments in subsidiary undertakings are recognised at cost less impairments. |
3. | TURNOVER |
Turnover is entirely attributable to the one principal activity of the group and the geographical market relates solely to the United Kingdom. |
4. | EMPLOYEES AND DIRECTORS |
2024 | 2023 |
£ | £ |
Wages and salaries | 910,815 | 845,250 |
Social security costs | 83,382 | 83,752 |
Other pension costs | 21,170 | 15,054 |
1,015,367 | 944,056 |
The average number of employees during the year was as follows: |
2024 | 2023 |
Warehouse and distribution | 24 | 25 |
Finance and administration | 5 | 5 |
Management | 2 | 2 |
A & J AUDHALI ENTERPRISES LIMITED (REGISTERED NUMBER: 06505358) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 January 2024 |
4. | EMPLOYEES AND DIRECTORS - continued |
2024 | 2023 |
£ | £ |
Directors' remuneration | 24,517 | 36,470 |
5. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2024 | 2023 |
£ | £ |
Other operating leases | 5,626 | 2,944 |
Depreciation - owned assets | 78,535 | 41,680 |
Depreciation - assets on hire purchase contracts | 65,449 | 91,084 |
(Profit)/loss on disposal of fixed assets | (22,559 | ) | 51,201 |
Auditors' remuneration | 11,675 | 11,195 |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2024 | 2023 |
£ | £ |
Other interest paid | 6,061 | - |
Hire purchase | 11,035 | 11,783 |
17,096 | 11,783 |
7. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2024 | 2023 |
£ | £ |
Current tax: |
UK corporation tax | 690,246 | 400,432 |
Corporation tax prior years | 66 | - |
Total current tax | 690,312 | 400,432 |
Deferred tax | 34,524 | (7,099 | ) |
Tax on profit | 724,836 | 393,333 |
UK corporation tax has been charged at 24 % (2023 - 19 %). |
A & J AUDHALI ENTERPRISES LIMITED (REGISTERED NUMBER: 06505358) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 January 2024 |
7. | TAXATION - continued |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
2024 | 2023 |
£ | £ |
Profit before tax | 2,878,445 | 2,106,057 |
Profit multiplied by the standard rate of corporation tax in the UK of 24 % (2023 - 19 %) |
690,827 |
400,151 |
Effects of: |
Expenses not deductible for tax purposes | 697 | 854 |
Income not taxable for tax purposes | (5,414 | ) | - |
Capital allowances in excess of depreciation | - | (573 | ) |
Depreciation in excess of capital allowances | 38,660 | - |
Adjustments to tax charge in respect of previous periods | 66 | - |
Adjustment to deferred tax | - | (7,099 | ) |
Total tax charge | 724,836 | 393,333 |
Tax effects relating to effects of other comprehensive income |
2024 |
Gross | Tax | Net |
£ | £ | £ |
Revaluation of properties |
Deferred tax | (48,131 | ) | - | (48,131 | ) |
(48,131 | ) | - | (48,131 | ) |
2023 |
Gross | Tax | Net |
£ | £ | £ |
Revaluation of properties | 910,807 | - | 910,807 |
Deferred tax | (152,415 | ) | - | (152,415 | ) |
758,392 | - | 758,392 |
During the year the UK corporation tax rate has been charged at 24% (2023: 19%). |
From April 2023, the UK corporation tax rate increased from 19% to 25% and is set to remain at 25% for the foreseeable future. |
The effective tax rate for the year under review was 24%. |
8. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
A & J AUDHALI ENTERPRISES LIMITED (REGISTERED NUMBER: 06505358) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 January 2024 |
9. | DIVIDENDS |
2024 | 2023 |
£ | £ |
Ordinary A shares of £1 each |
Interim | 1,229,296 | - |
Ordinary B shares of £1 each |
Interim | 488,671 | 578,624 |
1,717,967 | 578,624 |
10. | TANGIBLE FIXED ASSETS |
Group |
Improvements |
Freehold | to | Plant & |
buildings | properties | machinery |
£ | £ | £ |
COST OR VALUATION |
At 1 February 2023 | 2,000,000 | 5,012 | 433,856 |
Additions | 4,005 | - | - |
Disposals | - | - | - |
At 31 January 2024 | 2,004,005 | 5,012 | 433,856 |
DEPRECIATION |
At 1 February 2023 | - | 501 | 158,609 |
Charge for year | - | 451 | 27,524 |
Eliminated on disposal | - | - | - |
At 31 January 2024 | - | 952 | 186,133 |
NET BOOK VALUE |
At 31 January 2024 | 2,004,005 | 4,060 | 247,723 |
At 31 January 2023 | 2,000,000 | 4,511 | 275,247 |
A & J AUDHALI ENTERPRISES LIMITED (REGISTERED NUMBER: 06505358) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 January 2024 |
10. | TANGIBLE FIXED ASSETS - continued |
Group |
Fixtures | Motor | Computer |
& fittings | vehicles | equipment | Totals |
£ | £ | £ | £ |
COST OR VALUATION |
At 1 February 2023 | 16,105 | 796,702 | 45,928 | 3,297,603 |
Additions | 4,083 | 166,301 | 1,664 | 176,053 |
Disposals | - | (36,196 | ) | - | (36,196 | ) |
At 31 January 2024 | 20,188 | 926,807 | 47,592 | 3,437,460 |
DEPRECIATION |
At 1 February 2023 | 14,537 | 512,588 | 33,007 | 719,242 |
Charge for year | 1,412 | 109,740 | 4,857 | 143,984 |
Eliminated on disposal | - | (24,743 | ) | - | (24,743 | ) |
At 31 January 2024 | 15,949 | 597,585 | 37,864 | 838,483 |
NET BOOK VALUE |
At 31 January 2024 | 4,239 | 329,222 | 9,728 | 2,598,977 |
At 31 January 2023 | 1,568 | 284,114 | 12,921 | 2,578,361 |
Cost or valuation at 31 January 2024 is represented by: |
Improvements |
Freehold | to | Plant & |
buildings | properties | machinery |
£ | £ | £ |
Valuation in 2024 | 910,807 | - | - |
Cost | 1,093,198 | 5,012 | 433,856 |
2,004,005 | 5,012 | 433,856 |
Fixtures | Motor | Computer |
& fittings | vehicles | equipment | Totals |
£ | £ | £ | £ |
Valuation in 2024 | - | - | - | 910,807 |
Cost | 20,188 | 926,807 | 47,592 | 2,526,653 |
20,188 | 926,807 | 47,592 | 3,437,460 |
A & J AUDHALI ENTERPRISES LIMITED (REGISTERED NUMBER: 06505358) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 January 2024 |
10. | TANGIBLE FIXED ASSETS - continued |
Group |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Motor |
vehicles |
£ |
COST OR VALUATION |
At 1 February 2023 | 770,952 |
Transfer to ownership | (36,196 | ) |
At 31 January 2024 | 734,756 |
DEPRECIATION |
At 1 February 2023 | 497,701 |
Charge for year | 65,449 |
Transfer to ownership | (24,743 | ) |
At 31 January 2024 | 538,407 |
NET BOOK VALUE |
At 31 January 2024 | 196,349 |
At 31 January 2023 | 273,251 |
11. | FIXED ASSET INVESTMENTS |
Group |
Listed |
investments |
£ |
COST |
At 1 February 2023 | 400,000 |
Disposals | (400,000 | ) |
At 31 January 2024 | - |
NET BOOK VALUE |
At 31 January 2024 | - |
At 31 January 2023 | 400,000 |
A & J AUDHALI ENTERPRISES LIMITED (REGISTERED NUMBER: 06505358) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 January 2024 |
11. | FIXED ASSET INVESTMENTS - continued |
Company |
Shares in |
group | Listed |
undertakings | investments | Totals |
£ | £ | £ |
COST |
At 1 February 2023 | 400,100 |
Disposals | ( |
) | (400,000 | ) |
At 31 January 2024 | 100 |
NET BOOK VALUE |
At 31 January 2024 | 100 |
At 31 January 2023 | 400,100 |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiary |
Registered office: 14 Harriott Drive, Warwick, UK |
Nature of business: |
% |
Class of shares: | holding |
12. | INVESTMENT PROPERTY |
Company |
Total |
£ |
FAIR VALUE |
At 1 February 2023 |
Additions |
At 31 January 2024 |
NET BOOK VALUE |
At 31 January 2024 |
At 31 January 2023 |
Fair value at 31 January 2024 is represented by: |
£ |
Valuation in 2024 | 910,807 |
Cost | 1,093,198 |
2,004,005 |
Investment properties were valued on an open market basis on 31 January 2024 by the directors . |
A & J AUDHALI ENTERPRISES LIMITED (REGISTERED NUMBER: 06505358) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 January 2024 |
13. | STOCKS |
Group |
2024 | 2023 |
£ | £ |
Finished goods | 645,885 | 519,646 |
14. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Trade debtors | 986,738 | 864,388 |
Amounts owed by group undertakings | - | - |
Other debtors | 7,217 | - |
Directors' current accounts | - | 784,289 | - | - |
Tax | 89,637 | 89,637 |
VAT | 27,237 | 33,214 |
Prepayments | 25,660 | 21,734 |
1,136,489 | 1,793,262 |
An impairment loss of £2,565 (2023: an impairment loss reversal of £1,652) was recognised against trade debtors during the year. |
All debtors are financial assets that are measured at amortised cost. |
Amounts owed by group undertakings are unsecured, repayable under normal commercial arrangements and carry no interest. |
15. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Hire purchase contracts (see note 17) | 89,714 | 123,113 |
Trade creditors | 2,129,397 | 1,974,577 |
Tax | 513,855 | 328,932 |
Social security and other taxes | 26,777 | 31,168 |
VAT | - | - | 2,000 | - |
Pension control | 3,997 | 3,527 | - | - |
Shareholder's loan account | 1,062 | 6,276 | - | - |
Directors' current accounts | 179,643 | 49,777 | - | - |
Accruals and deferred income | 33,642 | 45,298 |
2,978,087 | 2,562,668 |
All creditors are financial liabilities measured at amortised cost. |
A & J AUDHALI ENTERPRISES LIMITED (REGISTERED NUMBER: 06505358) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 January 2024 |
16. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group |
2024 | 2023 |
£ | £ |
Hire purchase contracts (see note 17) | 43,672 | 133,386 |
17. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Hire purchase contracts |
2024 | 2023 |
£ | £ |
Net obligations repayable: |
Within one year | 89,714 | 123,113 |
Between one and five years | 43,672 | 133,386 |
133,386 | 256,499 |
Group |
Non-cancellable operating | leases |
2024 | 2023 |
£ | £ |
Within one year | 2,208 | 2,944 |
Between one and five years | - | 2,208 |
2,208 | 5,152 |
18. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group |
2024 | 2023 |
£ | £ |
Hire purchase contracts | 133,386 | 256,499 |
The hire purchase contracts are secured on the assets concerned. |
19. | PROVISIONS FOR LIABILITIES |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Deferred tax |
Accelerated capital allowances | 143,556 | 109,032 | - | - |
Revaluation of fixed assets | 200,546 | 152,415 | 200,546 | 152,415 |
344,102 | 261,447 | 200,546 | 152,415 |
A & J AUDHALI ENTERPRISES LIMITED (REGISTERED NUMBER: 06505358) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 January 2024 |
19. | PROVISIONS FOR LIABILITIES - continued |
Group |
Deferred |
tax |
£ |
Balance at 1 February 2023 | 261,447 |
Charge to Income Statement during year | 34,524 |
Charge to OCI | 48,131 |
Balance at 31 January 2024 | 344,102 |
Company |
Deferred |
tax |
£ |
Balance at 1 February 2023 |
Charge to OCI | 48,131 |
Balance at 31 January 2024 |
20. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2024 | 2023 |
value: | £ | £ |
Ordinary A | £1 | 100 | 100 |
Ordinary B | £1 | 100 | 100 |
200 | 200 |
All Ordinary A and B shares rank pari passu with respect to voting rights and the rights to repayment of capital. Each class of shares also has a right to distribution of dividends. |
21. | RESERVES |
Group |
Retained | Revaluation |
earnings | reserve | Totals |
£ | £ | £ |
At 1 February 2023 | 6,100,929 | 758,392 | 6,859,321 |
Profit for the year | 2,153,609 | 2,153,609 |
Dividends | (1,717,967 | ) | (1,717,967 | ) |
Deferred tax | - | (48,131 | ) | (48,131 | ) |
At 31 January 2024 | 6,536,571 | 710,261 | 7,246,832 |
A & J AUDHALI ENTERPRISES LIMITED (REGISTERED NUMBER: 06505358) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 January 2024 |
21. | RESERVES - continued |
Company |
Retained | Revaluation |
earnings | reserve | Totals |
£ | £ | £ |
At 1 February 2023 | 2,800,458 |
Profit for the year |
Dividends | ( |
) | ( |
) |
Deferred tax | - | (48,131 | ) | (48,131 | ) |
At 31 January 2024 | 2,435,515 |
Retained earnings |
This reserve represents all current and prior year retained profits and losses. |
22. | PENSION COMMITMENTS |
The group operates a defined contribution pension scheme in respect of the directors and certain employees. The scheme and its assets are held by independent managers. The pension charge represents contributions due from the group and amounted to £21,170 (2023 - £15,054). At the year end there was a balance outstanding amounting to £3,997 (2023 - £3,527). |
23. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
The following advances and credits to a director subsisted during the years ended 31 January 2024 and 31 January 2023: |
2024 | 2023 |
£ | £ |
A A Audhali |
Balance outstanding at start of year | 784,289 | 275,805 |
Amounts advanced | 428,000 | 514,000 |
Amounts repaid | (1,234,032 | ) | (5,516 | ) |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year | (21,743 | ) | 784,289 |
24. | RELATED PARTY DISCLOSURES |
Key management are considered to be the directors, whose remuneration is disclosed in the preceding notes to these financial statements. |
25. | CONTROLLING INTERESTS |
The directors are considered to be the ultimate controlling parties by virtue of their ability to act in concert in respect of the financial and operating policies of the company and group. |