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Company registration number: 07652556
F.A.B RETAIL LIMITED
Financial statements
31 January 2024
Pearlman Rose
Chartered Accountants & Statutory Auditors
Suite 1, First Floor
Jack Dash House
2, Lawn House Close
Docklands
London E14 9YQ
F.A.B RETAIL LIMITED
Contents
Directors and other information
Strategic report
Directors report
Independent auditor's report to the members
Statement of comprehensive income
Statement of financial position
Statement of changes in equity
Statement of cash flows
Notes to the financial statements
F.A.B RETAIL LIMITED
Directors and other information
Directors Mr Ansar Hussain
Mr Arfan Hussain
Mr Fizhan Hussain
Mr Tabrez Hussain
Company number 07652556
Registered office 238-242 Uxbridge Road
Shepherds Bush
London
W12 7JD
Auditor Pearlman Rose
Chartered Accountants & Statutory Auditors
Suite 1, First Floor
Jack Dash House
2 Lawn House Close
London
E14 9YQ
Accountants AS Associates
Chartered Certified Accountants
11A Empire Parade
Empire Way, Wembley
Middlesex
HA9 0RQ
F.A.B RETAIL LIMITED
Strategic report
Year ended 31 January 2024
The directors presents their strategic report for the year ended 31 January 2024.
Principal activity
The principal activity of F.A.B Retail Ltd ('the company') is the operation and management of retail grocery stores in the United Kingdom under the Nisa Local brand. There have been no significant changes in the Company's principal activities during the year and the Directors are not aware at the date of this report, of any likely changes in the Company's activities in the forthcoming year.
Business review
Demand, for the company's products continue to be high after the prior year panic buying during the national lockdown. Effective stock management and forecast purchase ordering has been critical in enabling the business to operate efficiently.
The directors believe that the key performance indicators ("KPI") of the company are sales and gross profit margin:
2024 2023
Turnover £28.1m £22.4m
Gross profit £7.5m £5.1m
Gross profit margin 26.9% 22.8%
Turnover increased by £5.7m (25%) to £28.1m. Gross profit margin increased by 4.13% to 26.9% (2023: 22.8%). The higher margin was due to a combination of a change in product mix, less wastage and improved stock management. The performance is in line with the directors' expectations.
Future outlook
We see challenges in the UK economy due to wage and cost inflation. However, the company is in a strong position to withstand these pressures and continue to gain share within its respective market. Effective cost control is being actively managed, and we believe the company will continue to be profitable as shop numbers increase further. The company is part of the LA Group Holdings Ltd group of companies providing further assurance and support in the company's growth prospects.
Despite competitive trading conditions and price sensitivity, the directors are confident that the company will continue to provide the maximum support to customers by delivering the best prices, value, and service to them.
Financial instruments
The company does not have excessive exposure to risks in respect of price, credit, liquidity and cash flow risk other than normal inflationary risks. The company's main financial instruments comprise bank balances and trade creditors that provide finance for its day to day operations. The company's financial instruments are in the functional currency, being sterling and the company does not use hedge accounting, in respect of its financial instruments.
Directors' statutory responsibilities
The Directors are aware of the duties and responsibilities placed upon them by the Companies Acts and therefore they carry out their duties in a way that they consider would be most likely to promote the success of the Company for the benefit of its members, and in doing so have regard to a range of matters when making decisions for the short and long term.
They adhere to the overall group policies laid out by the members and to those relating specifically to the Company. Their main responsibilities are:-
1. Setting the values used to guide the affairs of the Company. This includes the Company's commitment to achieving its health and safety goals and the Company's adherence to the highest ethical standards in all its operations worldwide.
2. Integrating environmental improvement into business plans and strategies and seeking to plant sustainability into the Company's business processes.
3. Overseeing the Company's compliance with its statutory and regulatory obligations and ensuring that systems and processes are in place to enable these obligations to be met.
4. Setting the strategy and targets of the Company.
5. Overseeing the Company's compliance with financial reporting and disclosure obligations.
6. Overseeing the risk management of the Company.
7. Ensuring the effective corporate governance of the Company.
Responsibilities during the year
During the year, the Directors set out a plan for their tasks for the ensuing year, which includes a review of strategy, objectives and their implementation, and the review and monitoring of the Company's financial performance.
It is the duty of the accounts function to provide the Directors with appropriate, precise, and timely information on the operations and financial performance of the Company.
Risk management and internal control
The Directors acknowledge their responsibility for the Company's system of internal control and for reviewing its effectiveness. The Company's system of internal control is designed to manage any potential operational or financial risks.
The Company adopts internal controls appropriate to its business activities and geographical spread and has in place clearly defined lines of responsibility and limits of delegated authority. Comprehensive procedures provide for the appraisal, approval, control, and review of capital expenditure.
Principle risks and uncertainties
Risks to the business remain around competition as multiple convenience stores continue to open in the sector. The directors monitor the activities of local competitors to ensure better price, choice and quality is offered. There is negligible credit risk as customers pay at the point of sale. Supply chain disruption is another key risk. We have developed strong relationships and have regular communication with our key suppliers to help manage this risk. In addition, despite all the security systems and disaster recovery, business continuity and crisis management plans and procedures in place to protect our infrastructure and business, a cyber-attack, or other unforeseen events such as natural disasters may cause an interruption to our services and operations. Price pressures in the market are mitigated by improving the operational efficiency of our services. The Board is very conscious of these matters and ensure we continually flex costs to meet customer demand.
Coronavirus ("Covid-19")
Whilst the severity around the COVID-19 virus outbreak has lessened, our primary concern continues to be keeping our employees, customers, and colleagues safe. We have followed the advice from the Government and the NHS at all times and will continue to do so. We have acted as appropriate to protect our people and our operations.
This report was approved by the board of directors on 16 October 2024 and signed on behalf of the board by:
Mr Ansar Hussain
Director
F.A.B RETAIL LIMITED
Directors report
Year ended 31 January 2024
The directors present their report and the financial statements of the company for the year ended 31 January 2024.
Directors
The directors who served the company during the year were as follows:
Mr Ansar Hussain
Mr Arfan Hussain
Mr Fizhan Hussain
Mr Tabrez Hussain
Dividends
Particulars of recommended dividends are detailed in note 13 to the financial statements.
Directors responsibilities statement
The directors are responsible for preparing the strategic report, directors report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the profit or loss of the company for that period.
In preparing these financial statements, the directors are required to:
- select suitable accounting policies and then apply them consistently;
- make judgments and accounting estimates that are reasonable and prudent; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Auditor
Each of the persons who is a director at the date of approval of this report confirms that:
- so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.
The auditor is deemed to have been re-appointed in accordance with section 487 of the Companies Act 2006.
This report was approved by the board of directors on 16 October 2024 and signed on behalf of the board by:
Mr Ansar Hussain
Director
F.A.B RETAIL LIMITED
Independent auditor's report to the members of
F.A.B RETAIL LIMITED
Year ended 31 January 2024
Opinion
We have audited the financial statements of F.A.B RETAIL LIMITED (the 'company') for the year ended 31 January 2024 which comprise the statement of comprehensive income, statement of financial position, statement of changes in equity, statement of cash flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion, the financial statements: - give a true and fair view of the state of the company's affairs as at 31 January 2024 and of its profit for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and - have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other Information
The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
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 strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the strategic report and the directors' report has been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report. We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: - adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or - the financial statements are not in agreement with the accounting records and the 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 directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. 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: - enquiry of management about the company's policies, procedures and related controls regarding compliance with laws and regulations and if there are any known instances of non-compliance; - examining supporting documents for all material balances, transactions and disclosures; - review of the board meeting minutes; - enquiry of management and review and inspection of relevant correspondence; - evaluation of the selection and application of accounting policies related to subjective measurements and complex transactions; - analytical procedures to identify any unusual or unexpected relationships; - testing the appropriateness of journal entries recorded in the general ledger and other adjustments made in the preparation of the financial statements; and - review of accounting estimates for biases. 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 auditor’s report.
Use of our report
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an 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.
Mohammad Jilani (Senior Statutory Auditor)
For and on behalf of
Pearlman Rose
Chartered Accountants and Senior Statutory Auditor
Suite 1, First Floor
Jack Dash House
2 Lawn House Close
London
E14 9YQ
16 October 2024
F.A.B RETAIL LIMITED
Statement of comprehensive income
Year ended 31 January 2024
2024 2023
Note £ £
Turnover 4 28,130,953 22,469,321
Cost of sales ( 20,555,408) ( 17,346,468)
_______ _______
Gross profit 7,575,545 5,122,853
Administrative expenses ( 6,624,968) ( 4,109,197)
_______ _______
Operating profit 5 950,577 1,013,656
Income from other fixed asset investments 8 5,758 4,511
Other interest receivable and similar income 9 5,412 336
Amounts written off investments 10 16,271 ( 19,569)
Interest payable and similar expenses 11 ( 19,072) ( 14,014)
_______ _______
Profit before taxation 958,946 984,920
Tax on profit 12 ( 231,347) ( 175,466)
_______ _______
Profit for the financial year and total comprehensive income 727,599 809,454
_______ _______
All the activities of the company are from continuing operations.
F.A.B RETAIL LIMITED
Statement of financial position
31 January 2024
2024 2023
Note £ £ £ £
Fixed assets
Tangible assets 14 240,060 240,198
Investments 15 230,728 132,679
_______ _______
470,788 372,877
Current assets
Stocks 16 1,212,276 930,262
Debtors 17 576,819 497,623
Cash at bank and in hand 643,935 894,553
_______ _______
2,433,030 2,322,438
Creditors: amounts falling due
within one year 18 ( 1,449,529) ( 1,593,996)
_______ _______
Net current assets 983,501 728,442
_______ _______
Total assets less current liabilities 1,454,289 1,101,319
Creditors: amounts falling due
after more than one year 19 ( 221,377) ( 296,312)
Provisions for liabilities 21 ( 4,891) -
_______ _______
Net assets 1,228,021 805,007
_______ _______
Capital and reserves
Called up share capital 24 100 100
Profit and loss account 1,227,921 804,907
_______ _______
Shareholders funds 1,228,021 805,007
_______ _______
These financial statements were approved by the board of directors and authorised for issue on 16 October 2024 , and are signed on behalf of the board by:
Mr Ansar Hussain
Director
Company registration number: 07652556
F.A.B RETAIL LIMITED
Statement of changes in equity
Year ended 31 January 2024
Called up share capital Profit and loss account Total
£ £ £
At 1 February 2022 100 308,597 308,697
Profit for the year 809,454 809,454
_______ _______ _______
Total comprehensive income for the year - 809,454 809,454
Dividends paid and payable ( 313,144) ( 313,144)
_______ _______ _______
Total investments by and distributions to owners - ( 313,144) ( 313,144)
_______ _______ _______
At 31 January 2023 and 1 February 2023 100 804,907 805,007
Profit for the year 727,599 727,599
_______ _______ _______
Total comprehensive income for the year - 727,599 727,599
Dividends paid and payable ( 304,585) ( 304,585)
_______ _______ _______
Total investments by and distributions to owners - ( 304,585) ( 304,585)
_______ _______ _______
At 31 January 2024 100 1,227,921 1,228,021
_______ _______ _______
F.A.B RETAIL LIMITED
Statement of cash flows
Year ended 31 January 2024
2024 2023
£ £
Cash flows from operating activities
Profit for the financial year 727,599 809,454
Adjustments for:
Depreciation of tangible assets 48,241 44,304
Amounts written off investments ( 16,271) 19,569
Income from other fixed asset investments ( 5,758) ( 4,511)
Other interest receivable and similar income ( 5,412) ( 336)
Interest payable and similar expenses 19,072 14,014
Gain/(loss) on disposal of tangible assets - ( 940)
Tax on profit 231,347 175,466
Accrued expenses/(income) 2,000 ( 2,900)
Changes in:
Stocks ( 282,014) ( 22,876)
Trade and other debtors ( 80,233) ( 64,280)
Trade and other creditors ( 117,730) ( 29,170)
_______ _______
Cash generated from operations 520,841 937,794
Interest paid ( 19,072) ( 14,014)
Interest received 5,412 336
Tax paid ( 175,777) ( 41,842)
_______ _______
Net cash from operating activities 331,404 882,274
_______ _______
Cash flows from investing activities
Purchase of tangible assets ( 48,103) ( 260,000)
Proceeds from sale of tangible assets - 15,000
Purchase of other investments ( 81,778) ( 14,890)
Dividends received 5,758 4,511
_______ _______
Net cash used in investing activities ( 124,123) ( 255,379)
_______ _______
Cash flows from financing activities
Proceeds from borrowings ( 158,000) ( 70,001)
Payment of finance lease liabilities 4,686 176,433
Equity dividends paid ( 304,585) ( 313,144)
_______ _______
Net cash used in financing activities ( 457,899) ( 206,712)
_______ _______
Net increase/(decrease) in cash and cash equivalents ( 250,618) 420,183
Cash and cash equivalents at beginning of year 894,553 474,370
_______ _______
Cash and cash equivalents at end of year 643,935 894,553
_______ _______
F.A.B RETAIL LIMITED
Notes to the financial statements
Year ended 31 January 2024
1. General information
The company is a private company limited by shares, registered in England & Wales. The address of the registered office is 238-242 Uxbridge Road, Shepherds Bush, London, W12 7JD.
2. Statement of compliance
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.
The financial statements are prepared in sterling, which is the functional currency of the entity.
Turnover
Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably.
Taxation
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in the statement of comprehensive income, except to the extent that it relates to items recognised in other comprehensive income or directly in capital and reserves. In this case, tax is recognised in other comprehensive income or directly in capital and reserves, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.
Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
Tangible assets
tangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in capital and reserves, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in capital and reserves in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in capital and reserves in respect of that asset, the excess shall be recognised in profit or loss.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Plant and machinery - 20 % reducing balance
Fittings fixtures and equipment - 20 % reducing balance
Computer equipment - 25 % reducing balance
If there is an indication that there has been a significant change in depreciation rate, useful life or residual value of tangible assets, the depreciation is revised prospectively to reflect the new estimates.
Fixed asset investments
Fixed asset investments are initially recorded at cost, and subsequently stated at cost less any accumulated impairment losses. Listed investments are measured at fair value with changes in fair value being recognised in profit or loss.
Impairment
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. When it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets.
Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stocks to their present location and condition.
Hire purchase and finance leases
Assets held under finance leases are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.
Provisions
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event; it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised in finance costs in profit or loss in the period it arises.
Financial instruments
A financial asset or a financial liability is recognised only when the company becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost. Where investments in non-convertible preference shares and non-puttable ordinary shares or preference shares are publicly traded or their fair value can otherwise be measured reliably, the investment is subsequently measured at fair value with changes in fair value recognised in profit or loss. All other such investments are subsequently measured at cost less impairment. Other financial instruments, including derivatives, are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Other financial instruments are subsequently measured at fair value, with any changes recognised in profit or loss, with the exception of hedging instruments in a designated hedging relationship.
Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately. For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets or either assessed individually or grouped on the basis of similar credit risk characteristics. Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised in finance costs in profit or loss in the period in which it arises.
4. Turnover
The whole of the turnover is attributable to the principal activity of the company wholly undertaken in the United Kingdom.
5. Operating profit
Operating profit is stated after charging/(crediting):
2024 2023
£ £
Depreciation of tangible assets 48,241 44,304
(Gain)/loss on disposal of tangible assets - ( 940)
Fees payable for the audit of the financial statements 10,000 8,000
_______ _______
6. Staff costs
The average number of persons employed by the company during the year, including the directors, amounted to:
2024 2023
Administrative staff 11 11
Sales 198 132
_______ _______
209 143
_______ _______
The aggregate payroll costs incurred during the year were:
2024 2023
£ £
Wages and salaries 3,252,291 1,565,632
Social security costs 215,669 76,683
Other pension costs 195,344 191,361
_______ _______
3,663,304 1,833,676
_______ _______
7. Directors remuneration
The directors aggregate remuneration in respect of qualifying services was:
2024 2023
£ £
Remuneration 64,880 49,400
Company contributions to pension schemes in respect of qualifying services 144,000 144,000
_______ _______
208,880 193,400
_______ _______
8. Income from other fixed asset investments
2024 2023
£ £
Dividends from other investments 5,758 4,511
_______ _______
9. Other interest receivable and similar income
2024 2023
£ £
Bank deposits 5,412 336
_______ _______
10. Amounts written off investments
2024 2023
£ £
Impairment of other fixed asset investments - 19,569
Reversal of impairment of other fixed asset investments ( 16,271) -
_______ _______
( 16,271) 19,569
_______ _______
11. Interest payable and similar expenses
2024 2023
£ £
Other loans made to the company:
Finance leases and hire purchase contracts 5,388 4,154
Other interest payable and similar expenses 13,684 9,860
_______ _______
19,072 14,014
_______ _______
12. Tax on profit
Major components of tax expense
2024 2023
£ £
Current tax:
UK current tax expense 225,419 175,777
_______ _______
Deferred tax:
Origination and reversal of timing differences 5,928 ( 311)
_______ _______
Tax on profit 231,347 175,466
_______ _______
Reconciliation of tax expense
The tax assessed on the profit for the year is higher than (2023: lower than) the standard rate of corporation tax in the UK of 24.03 % (2023: 19.00%).
2024 2023
£ £
Profit before taxation 958,946 984,920
_______ _______
Profit multiplied by rate of tax 230,435 187,135
Effect of expenses not deductible for tax purposes ( 14,254) ( 850)
Effect of capital allowances and depreciation 10,622 ( 11,357)
Effect of revenue exempt from tax ( 1,384) 849
Deferred tax 5,928 ( 311)
_______ _______
Tax on profit 231,347 175,466
_______ _______
13. Dividends
Equity dividends
2024 2023
£ £
Dividends paid during the year (excluding those for which a liability existed at the end of the prior year) 304,585 313,144
_______ _______
14. Tangible assets
Plant and machinery Fixtures, fittings and equipment Computer equipment Total
£ £ £ £
Cost
At 1 February 2023 299,275 22,465 12,001 333,741
Additions 48,103 - - 48,103
_______ _______ _______ _______
At 31 January 2024 347,378 22,465 12,001 381,844
_______ _______ _______ _______
Depreciation
At 1 February 2023 73,483 9,983 10,077 93,543
Charge for the year 45,264 2,496 481 48,241
_______ _______ _______ _______
At 31 January 2024 118,747 12,479 10,558 141,784
_______ _______ _______ _______
Carrying amount
At 31 January 2024 228,631 9,986 1,443 240,060
_______ _______ _______ _______
At 31 January 2023 225,792 12,482 1,924 240,198
_______ _______ _______ _______
Obligations under finance leases
Included within the carrying value of tangible assets are the following amounts relating to right of use assets held under finance leases or hire purchase agreements:
Plant and machinery
£
At 31 January 2024 197,232
_______
At 31 January 2023 186,542
_______
15. Investments
Other investments other than loans Total
£ £
Cost
At 1 February 2023 152,248 152,248
Additions 81,778 81,778
_______ _______
At 31 January 2024 234,026 234,026
_______ _______
Impairment
At 1 February 2023 19,569 19,569
Reversal of impairment loss ( 16,271) ( 16,271)
_______ _______
At 31 January 2024 3,298 3,298
_______ _______
Carrying amount
At 31 January 2024 230,728 230,728
_______ _______
At 31 January 2023 132,679 132,679
_______ _______
Listed investments
£ £
At 31 January 2024
Carrying value 230,578 230,578
_______ _______
At 31 January 2023
Carrying value 132,529 132,529
_______ _______
16. Stocks
2024 2023
£ £
Finished goods and goods for resale 1,212,276 930,262
_______ _______
17. Debtors
2024 2023
£ £
Trade debtors 65,508 69,262
Deferred tax asset (note 22) - 1,037
Prepayments and accrued income 9,259 9,474
Other debtors 502,052 417,850
_______ _______
576,819 497,623
_______ _______
18. Creditors: amounts falling due within one year
2024 2023
£ £
Bank loans and overdrafts 70,000 70,000
Trade creditors 757,295 785,051
Accruals and deferred income 10,000 8,000
Corporation tax 225,419 175,777
Social security and other taxes 91,334 56,859
Obligations under finance leases 53,075 43,454
Director loan accounts 171,008 259,008
Other creditors 71,398 195,847
_______ _______
1,449,529 1,593,996
_______ _______
19. Creditors: amounts falling due after more than one year
2024 2023
£ £
Bank loans and overdrafts 93,333 163,333
Obligations under finance leases 128,044 132,979
_______ _______
221,377 296,312
_______ _______
The company has the following bank loans. Barclays bank (1) A loan of £350,000 repayable in equal annual instalments over the period until 2026 with an interest rate on the loan of 2.50% per annum. The bank loan is unsecured.
20. Obligations under finance leases
Company lessee
The total future minimum lease payments under finance lease agreements are as follows:
2024 2023
£ £
Not later than 1 year 53,075 43,454
Later than 1 year and not later than 5 years 128,044 132,979
_______ _______
181,119 176,433
_______ _______
Present value of minimum lease payments 181,119 176,433
_______ _______
21. Provisions
Deferred tax (note 22) Total
£ £
At 1 February 2023 - -
Charges against provisions 5,928 5,928
Transfers ( 1,037) ( 1,037)
_______ _______
At 31 January 2024 4,891 4,891
_______ _______
22. Deferred tax
The deferred tax included in the statement of financial position is as follows:
2024 2023
£ £
Included in debtors (note 17) - 1,037
Included in provisions (note 21) ( 4,891) -
_______ _______
( 4,891) 1,037
_______ _______
The deferred tax account consists of the tax effect of timing differences in respect of:
2024 2023
£ £
Accelerated capital allowances - 1,037
Provisions ( 4,891) -
_______ _______
(4,891) 1,037
_______ _______
23. Employee benefits
The amount recognised in profit or loss in relation to defined contribution plans was £ 195,344 (2023: £ 191,361 ).
24. Called up share capital
Issued, called up and fully paid
2024 2023
No £ No £
Ordinary shares A shares of £ 1.00 each 75 75 75 75
Ordinary shares B shares of £ 1.00 each 5 5 5 5
Ordinary shares C shares of £ 1.00 each 5 5 5 5
Ordinary shares D shares of £ 1.00 each 5 5 5 5
Ordinary shares E shares of £ 1.00 each 5 5 5 5
Ordinary shares F shares of £ 1.00 each 5 5 5 5
_______ _______ _______ _______
100 100 100 100
_______ _______ _______ _______
25. Analysis of changes in net debt
At 1 February 2023 Cash flows At 31 January 2024
£ £ £
Cash and cash equivalents 894,553 (250,618) 643,935
Debt due within one year (372,462) 78,379 (294,083)
Debt due after one year (296,312) 74,935 (221,377)
_______ _______ _______
225,779 ( 97,304) 128,475
_______ _______ _______
26. Directors advances, credits and guarantees
During the year the directors entered into the following advances and credits with the company:
2024
Balance brought forward Advances /(credits) to the directors Balance o/standing
£ £ £
Mr Ansar Hussain ( 259,008) 88,000 ( 171,008)
_______ _______ _______
2023
Balance brought forward Advances /(credits) to the directors Balance o/standing
£ £ £
Mr Ansar Hussain ( 259,008) - ( 259,008)
_______ _______ _______
a) Barclays Bank debenture on its standard form dated 18 May 2020 creating a fixed and floating charge overall the assets of the company.b) Two limited guarantees given by the Secretary of State for Business, Energy and Industrial Strategy both for £280,000 dated 21 May 2020.c) Limited guarantee given by the Director for £60,000 dated 18 December 2014.d) The company has a fixed charge with Lloyds bank dated 15 June 2022 relating to an Omnibus guarantee and set-off agreement over the parent company's liabilities.
27. Related party transactions
During the year the company paid net management fees of £2,126,000 in relation to use of assets and services provided by a related undertaking at normal commercial rates (2023: £1,596,500). The amount owed at the year end was £126,100 (2023: £89,120).During the year the following transactions occurred with the directors:Amounts owed by the company 1 February 2023 £259,008Dividend payable £304,585Dividend paid (£304,585)Amount paid to director's loan account (£88,000)Amounts owed by the company 31 January 2024 £171,008The following loans were made to related undertakings:(1) Other debtors at 31 January 2024 include a loan to Studio Living London Limited of £350,000 which is an interest free loan.(2) Other debtors at 31 January 2024 include a loan to Our Retail Ltd of £52,000 which is an interest free loan.See note 7 for disclosure of Director's remuneration.
28. Controlling party
The company's parent undertaking is LA Group Holdings Ltd, a company incorporated in England & Wales.