IRIS Accounts Production v24.3.0.553 01739740 Board of Directors 1.11.22 31.10.23 31.10.23 Medium entities retail pharmacy. true false true true false false false true false These accounts have been prepared in accordance with the provisions applicable to companies subject to the medium-sized companies regime. Fair value model Ordinary shares 1.00000 iso4217:GBPiso4217:USDiso4217:EURxbrli:sharesxbrli:pureutr:tonnesutr:kWh017397402022-10-31017397402023-10-31017397402022-11-012023-10-31017397402021-10-31017397402021-11-012022-10-31017397402022-10-3101739740ns15:EnglandWales2022-11-012023-10-3101739740ns14:PoundSterling2022-11-012023-10-3101739740ns10:Director12022-11-012023-10-3101739740ns10:Director22022-11-012023-10-3101739740ns10:PrivateLimitedCompanyLtd2022-11-012023-10-3101739740ns10:MediumEntities2022-11-012023-10-3101739740ns10:Audited2022-11-012023-10-3101739740ns10:Medium-sizedCompaniesRegimeForDirectorsReport2022-11-012023-10-3101739740ns10:Medium-sizedCompaniesRegimeForAccounts2022-11-012023-10-3101739740ns10:FullAccounts2022-11-012023-10-310173974012022-11-012023-10-3101739740ns10:OrdinaryShareClass12022-11-012023-10-3101739740ns10:Director32022-11-012023-10-3101739740ns10:CompanySecretary12022-11-012023-10-3101739740ns10:RegisteredOffice2022-11-012023-10-3101739740ns5:CurrentFinancialInstruments2023-10-3101739740ns5:CurrentFinancialInstruments2022-10-3101739740ns5:Non-currentFinancialInstruments2023-10-3101739740ns5:Non-currentFinancialInstruments2022-10-3101739740ns5:ShareCapital2023-10-3101739740ns5:ShareCapital2022-10-3101739740ns5:RetainedEarningsAccumulatedLosses2023-10-3101739740ns5:RetainedEarningsAccumulatedLosses2022-10-3101739740ns5:ShareCapital2021-10-3101739740ns5:RetainedEarningsAccumulatedLosses2021-10-3101739740ns5:RetainedEarningsAccumulatedLosses2021-11-012022-10-3101739740ns5:RetainedEarningsAccumulatedLosses2022-11-012023-10-3101739740ns5:NetGoodwill2022-11-012023-10-3101739740ns5:IntangibleAssetsOtherThanGoodwill2022-11-012023-10-3101739740ns5:LandBuildingsns5:OwnedOrFreeholdAssets2022-11-012023-10-3101739740ns5:FurnitureFittings2022-11-012023-10-3101739740ns5:MotorVehicles2022-11-012023-10-3101739740ns5:PlantEquipmentOtherAssetsUnderOperatingLeases2022-11-012023-10-3101739740ns5:PlantEquipmentOtherAssetsUnderOperatingLeases2021-11-012022-10-3101739740ns5:OwnedAssets2022-11-012023-10-3101739740ns5:OwnedAssets2021-11-012022-10-3101739740ns5:NetGoodwill2021-11-012022-10-310173974012022-11-012023-10-310173974012021-11-012022-10-3101739740ns10:OrdinaryShareClass12021-11-012022-10-3101739740ns5:NetGoodwill2022-10-3101739740ns5:NetGoodwill2023-10-3101739740ns5:NetGoodwill2022-10-3101739740ns5:LandBuildings2022-10-3101739740ns5:FurnitureFittings2022-10-3101739740ns5:MotorVehicles2022-10-3101739740ns5:LandBuildings2022-11-012023-10-3101739740ns5:LandBuildings2023-10-3101739740ns5:FurnitureFittings2023-10-3101739740ns5:MotorVehicles2023-10-3101739740ns5:LandBuildings2022-10-3101739740ns5:FurnitureFittings2022-10-3101739740ns5:MotorVehicles2022-10-3101739740ns5:WithinOneYearns5:CurrentFinancialInstruments2023-10-3101739740ns5:WithinOneYearns5:CurrentFinancialInstruments2022-10-3101739740ns5:BetweenOneTwoYearsns5:Non-currentFinancialInstruments2023-10-3101739740ns5:BetweenOneTwoYearsns5:Non-currentFinancialInstruments2022-10-3101739740ns5:Non-currentFinancialInstrumentsns5:BetweenTwoFiveYears2023-10-3101739740ns5:Non-currentFinancialInstrumentsns5:BetweenTwoFiveYears2022-10-3101739740ns5:WithinOneYear2023-10-3101739740ns5:WithinOneYear2022-10-3101739740ns5:BetweenOneFiveYears2023-10-3101739740ns5:BetweenOneFiveYears2022-10-3101739740ns5:MoreThanFiveYears2023-10-3101739740ns5:MoreThanFiveYears2022-10-3101739740ns5:AllPeriods2023-10-3101739740ns5:AllPeriods2022-10-3101739740ns5:Secured2023-10-3101739740ns5:Secured2022-10-3101739740ns5:DeferredTaxation2022-10-3101739740ns5:DeferredTaxation2023-10-3101739740ns10:OrdinaryShareClass12023-10-3101739740ns5:RetainedEarningsAccumulatedLosses2022-10-31
REGISTERED NUMBER: 01739740 (England and Wales)















STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

AUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31ST OCTOBER 2023

FOR

M. FARREN LIMITED

M. FARREN LIMITED (REGISTERED NUMBER: 01739740)






CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST OCTOBER 2023




Page

Company Information 1

Strategic Report 2

Report of the Directors 3

Report of the Independent Auditors 4

Income Statement 7

Other Comprehensive Income 8

Balance Sheet 9

Statement of Changes in Equity 10

Cash Flow Statement 11

Notes to the Cash Flow Statement 12

Notes to the Financial Statements 13


M. FARREN LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31ST OCTOBER 2023







DIRECTORS: Mrs M E Wilkinson
J H Wilkinson
Miss E S Wilkinson



SECRETARY: J H Wilkinson



REGISTERED OFFICE: 46 Main Street
Mexborough
South Yorkshire
S64 9DU



REGISTERED NUMBER: 01739740 (England and Wales)



AUDITORS: Leesing Marrison Lee Limited
Chartered Certified Accountants
Statutory Auditors
46 Main Street
Mexborough
South Yorkshire
S64 9DU



BANKERS: Bank of Scotland PLC
The Mound
Edinburgh
EH1 1YZ

M. FARREN LIMITED (REGISTERED NUMBER: 01739740)

STRATEGIC REPORT
FOR THE YEAR ENDED 31ST OCTOBER 2023

The directors present their strategic report for the year ended 31st October 2023.

REVIEW OF BUSINESS
The company has been profitable in the year under review and it is anticipated that the following year will also be so. At 31 October 2023, the Balance Sheet shows a stronger position to that of 2022.

Gross profit has seen an increase to £4.70m (2022: £3.86m) and operating profits have also increased to £745,767 (2022: £272,846). The company renovated a new premises in the year in a more prominent location, so business from an underpeforming pharmacy can be relocated.

The company has made good progress over the last year as it continued with its growth plans to purchase underperforming pharmacies and maximizing their potential.

PRINCIPAL RISKS AND UNCERTAINTIES
The company continues to trade as a retail pharmacy and faces no particular risks or uncertainties other than those generally facing retailers in the recessionary period.

ON BEHALF OF THE BOARD:





J H Wilkinson - Director


30th October 2024

M. FARREN LIMITED (REGISTERED NUMBER: 01739740)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31ST OCTOBER 2023

The directors present their report with the financial statements of the company for the year ended 31st October 2023.

DIVIDENDS
Dividends of £10,000 (2022: £10,000) have been distributed during the year.

FUTURE DEVELOPMENTS
The company will take advantage of any appropriate business opportunity that arises.

DIRECTORS
The directors shown below have held office during the whole of the period from 1st November 2022 to the date of this report.

Mrs M E Wilkinson
J H Wilkinson
Miss E S Wilkinson

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the 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 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 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 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.

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 company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS
The auditors, Leesing Marrison Lee Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





J H Wilkinson - Director


30th October 2024

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
M. FARREN LIMITED

Opinion
We have audited the financial statements of M. Farren Limited (the 'company') for the year ended 31st October 2023 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the 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 company's affairs as at 31st October 2023 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 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 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 directors are responsible for the other information. The other information comprises the information in the 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 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 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
M. FARREN LIMITED


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 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, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page 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 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.

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:

We considered the nature of the company's industry and its control environment, and reviewed the company's documentation of their policies and procedures relating to fraud and compliance with laws and regulations. We also enquired of management about their own identification and assessment of the risks of irregularities.

We obtained an understanding of the legal and regulatory framework that the company operates in, and identified the key laws and regulations that:

- had a direct effect on the determination of material amounts and disclosures in the financial statements. These included UK Companies Act, pensions legislation, tax legislation etc, and

- do not have a direct effect on the financial statements but compliance which may be fundamental to the company's ability to operate or to avoid a material penalty. These included regulatory solvency requirements and environmental regulations.

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
M. FARREN 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.




Robert Tippett FCCA (Senior Statutory Auditor)
for and on behalf of Leesing Marrison Lee Limited
Chartered Certified Accountants
Statutory Auditors
46 Main Street
Mexborough
South Yorkshire
S64 9DU

30th October 2024

M. FARREN LIMITED (REGISTERED NUMBER: 01739740)

INCOME STATEMENT
FOR THE YEAR ENDED 31ST OCTOBER 2023

31.10.23 31.10.22
Notes £    £    £    £   

TURNOVER 13,906,707 12,404,348

Other operating income 109,359 102,996
14,016,066 12,507,344

Raw materials and consumables 9,213,080 8,543,439
4,802,986 3,963,905

Staff costs 3 2,596,518 2,470,828
Depreciation 407,997 396,493
Other operating expenses 1,052,704 823,738
4,057,219 3,691,059
OPERATING PROFIT 4 745,767 272,846


Interest payable and similar expenses 5 234,087 122,660
PROFIT BEFORE TAXATION 511,680 150,186

Tax on profit 6 217,044 98,285
PROFIT FOR THE FINANCIAL YEAR 294,636 51,901

M. FARREN LIMITED (REGISTERED NUMBER: 01739740)

OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31ST OCTOBER 2023

31.10.23 31.10.22
Notes £    £   

PROFIT FOR THE YEAR 294,636 51,901


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR
THE YEAR

294,636

51,901

M. FARREN LIMITED (REGISTERED NUMBER: 01739740)

BALANCE SHEET
31ST OCTOBER 2023

31.10.23 31.10.22
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 8 3,313,935 3,649,113
Tangible assets 9 1,869,974 1,642,370
Investment property 10 306,720 306,720
5,490,629 5,598,203

CURRENT ASSETS
Stocks 11 936,536 877,013
Debtors 12 2,304,581 2,263,129
Cash at bank and in hand 639,475 432,070
3,880,592 3,572,212
CREDITORS
Amounts falling due within one year 13 2,008,884 1,908,264
NET CURRENT ASSETS 1,871,708 1,663,948
TOTAL ASSETS LESS CURRENT
LIABILITIES

7,362,337

7,262,151

CREDITORS
Amounts falling due after more than one
year

14

(2,976,838

)

(3,215,413

)

PROVISIONS FOR LIABILITIES 18 (99,623 ) (45,498 )
NET ASSETS 4,285,876 4,001,240

CAPITAL AND RESERVES
Called up share capital 19 1,002 1,002
Retained earnings 20 4,284,874 4,000,238
SHAREHOLDERS' FUNDS 4,285,876 4,001,240

The financial statements were approved by the Board of Directors and authorised for issue on 30th October 2024 and were signed on its behalf by:





Miss E S Wilkinson - Director


M. FARREN LIMITED (REGISTERED NUMBER: 01739740)

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31ST OCTOBER 2023

Called up
share Retained Total
capital earnings equity
£    £    £   
Balance at 1st November 2021 1,002 3,958,337 3,959,339

Changes in equity
Dividends - (10,000 ) (10,000 )
Total comprehensive income - 51,901 51,901
Balance at 31st October 2022 1,002 4,000,238 4,001,240

Changes in equity
Dividends - (10,000 ) (10,000 )
Total comprehensive income - 294,636 294,636
Balance at 31st October 2023 1,002 4,284,874 4,285,876

M. FARREN LIMITED (REGISTERED NUMBER: 01739740)

CASH FLOW STATEMENT
FOR THE YEAR ENDED 31ST OCTOBER 2023

31.10.23 31.10.22
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 1,122,337 718,763
Interest paid (234,087 ) (121,753 )
Tax paid (98,555 ) (916 )
Net cash from operating activities 789,695 596,094

Cash flows from investing activities
Purchase of tangible fixed assets (300,425 ) (202,319 )
Purchase of investment property - (57,840 )
Net cash from investing activities (300,425 ) (260,159 )

Cash flows from financing activities
Loan repayments in year (271,865 ) (304,477 )
Equity dividends paid (10,000 ) (10,000 )
Net cash from financing activities (281,865 ) (314,477 )

Increase in cash and cash equivalents 207,405 21,458
Cash and cash equivalents at
beginning of year

2

432,070

410,612

Cash and cash equivalents at end of
year

2

639,475

432,070

M. FARREN LIMITED (REGISTERED NUMBER: 01739740)

NOTES TO THE CASH FLOW STATEMENT
FOR THE YEAR ENDED 31ST OCTOBER 2023

1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

31.10.23 31.10.22
£    £   
Profit before taxation 511,680 150,186
Depreciation charges 407,219 396,493
Loss on disposal of fixed assets 778 -
Finance costs 234,087 122,660
1,153,764 669,339
(Increase)/decrease in stocks (59,523 ) 83,829
Increase in trade and other debtors (41,452 ) (115,037 )
Increase in trade and other creditors 69,548 80,632
Cash generated from operations 1,122,337 718,763

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 31st October 2023
31.10.23 1.11.22
£    £   
Cash and cash equivalents 639,475 432,070
Year ended 31st October 2022
31.10.22 1.11.21
£    £   
Cash and cash equivalents 432,070 410,612


3. ANALYSIS OF CHANGES IN NET DEBT

At 1.11.22 Cash flow At 31.10.23
£    £    £   
Net cash
Cash at bank and in hand 432,070 207,405 639,475
432,070 207,405 639,475
Debt
Debts falling due within 1 year (308,000 ) 33,292 (274,708 )
Debts falling due after 1 year (3,215,413 ) 238,575 (2,976,838 )
(3,523,413 ) 271,867 (3,251,546 )
Total (3,091,343 ) 479,272 (2,612,071 )

M. FARREN LIMITED (REGISTERED NUMBER: 01739740)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST OCTOBER 2023

1. STATUTORY INFORMATION

M. Farren Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

M Farren Limited is a company incorporated in England and domiciled in Scotland. The principal activity of the company in the year under review was that of retail pharmacy. The financial statements are presented in Great British Pounds.

Turnover
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Goodwill
Purchased goodwill is recognised at cost less any accumulated amortisation and impairment losses. Goodwill is amortised over 20 years on a straight line basis with effect from the date of purchase.

Intangible assets
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Freehold property - 2% on cost
Fixtures and fittings - 15% on reducing balance
Motor vehicles - 25% on reducing balance

Investment property
Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss.

Stocks
Stock is valued by an industry specialist at selling price, before being discounted by industry accepted gross profit margins to arrive at a cost value. Allowance is made for slow moving and obsolete stock.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the 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.


M. FARREN LIMITED (REGISTERED NUMBER: 01739740)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST OCTOBER 2023

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
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 company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

3. EMPLOYEES AND DIRECTORS
31.10.23 31.10.22
£    £   
Wages and salaries 2,362,297 2,244,700
Social security costs 186,785 181,223
Other pension costs 47,436 44,905
2,596,518 2,470,828

The average number of employees during the year was as follows:
31.10.23 31.10.22

Administration and sales 120 124

31.10.23 31.10.22
£    £   
Directors' remuneration 100,000 99,000
Directors' pension contributions to money purchase schemes 5,814 5,814

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 1 1

4. OPERATING PROFIT

The operating profit is stated after charging:

31.10.23 31.10.22
£    £   
Hire of plant and machinery 880 880
Other operating leases 31,894 30,244
Depreciation - owned assets 72,043 61,313
Loss on disposal of fixed assets 778 -
Goodwill amortisation 335,178 335,178
Auditors' remuneration 16,000 15,200

In addition to being remunerated for audit work the auditors charged for accountancy services in the amount of £16,000.

M. FARREN LIMITED (REGISTERED NUMBER: 01739740)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST OCTOBER 2023

5. INTEREST PAYABLE AND SIMILAR EXPENSES
31.10.23 31.10.22
£    £   
Bank loan interest 232,054 121,753
Interest on overdue tax 2,033 907
234,087 122,660

6. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
31.10.23 31.10.22
£    £   
Current tax:
UK corporation tax 162,919 98,958

Deferred tax 54,125 (673 )
Tax on profit 217,044 98,285

UK corporation tax was charged at 19%) in 2022.

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:

31.10.23 31.10.22
£    £   
Profit before tax 511,680 150,186
Profit multiplied by the standard rate of corporation tax in the UK of
22.518% (2022 - 19%)

115,220

28,535

Effects of:
Depreciation in excess of capital allowances 87,457 69,750
Tax rate change on opening deferred tax provision 14,367 -
Total tax charge 217,044 98,285

7. DIVIDENDS
31.10.23 31.10.22
£    £   
Final - Paid 10,000 10,000

M. FARREN LIMITED (REGISTERED NUMBER: 01739740)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST OCTOBER 2023

8. INTANGIBLE FIXED ASSETS
Goodwill
£   
COST
At 1st November 2022
and 31st October 2023 7,481,937
AMORTISATION
At 1st November 2022 3,832,824
Amortisation for year 335,178
At 31st October 2023 4,168,002
NET BOOK VALUE
At 31st October 2023 3,313,935
At 31st October 2022 3,649,113

9. TANGIBLE FIXED ASSETS
Fixtures
Freehold and Motor
property fittings vehicles Totals
£    £    £    £   
COST
At 1st November 2022 1,843,242 560,511 132,490 2,536,243
Additions 223,011 77,414 - 300,425
Disposals - - (7,774 ) (7,774 )
At 31st October 2023 2,066,253 637,925 124,716 2,828,894
DEPRECIATION
At 1st November 2022 299,842 506,065 87,966 893,873
Charge for year 41,326 19,780 10,937 72,043
Eliminated on disposal - - (6,996 ) (6,996 )
At 31st October 2023 341,168 525,845 91,907 958,920
NET BOOK VALUE
At 31st October 2023 1,725,085 112,080 32,809 1,869,974
At 31st October 2022 1,543,400 54,446 44,524 1,642,370

10. INVESTMENT PROPERTY
Total
£   
FAIR VALUE
At 1st November 2022
and 31st October 2023 306,720
NET BOOK VALUE
At 31st October 2023 306,720
At 31st October 2022 306,720

Fair value at 31st October 2023 is represented by:
£   
Valuation in 2020 12,400
Cost 294,320
306,720

M. FARREN LIMITED (REGISTERED NUMBER: 01739740)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST OCTOBER 2023

11. STOCKS
31.10.23 31.10.22
£    £   
Goods for resale 936,536 877,013

12. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.10.23 31.10.22
£    £   
Trade debtors 1,912,977 2,046,651
Other debtors 706 1,805
VAT 306,747 128,641
Prepayments 84,151 86,032
2,304,581 2,263,129

13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.10.23 31.10.22
£    £   
Bank loans and overdrafts (see note 15) 274,708 308,000
Trade creditors 1,079,304 1,028,322
Tax 262,520 198,156
Social security and other taxes 49,827 44,709
Directors current account 5,306 3,614
Other creditors 50,336 48,259
Accrued expenses 286,883 277,204
2,008,884 1,908,264

14. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
31.10.23 31.10.22
£    £   
Bank loans (see note 15) 2,976,838 3,215,413

15. LOANS

An analysis of the maturity of loans is given below:

31.10.23 31.10.22
£    £   
Amounts falling due within one year or on demand:
Bank loans 274,708 308,000

Amounts falling due between one and two years:
Bank loans - 1-2 years 287,000 315,112

Amounts falling due between two and five years:
Bank loans - 2-5 years 861,000 893,000

Amounts falling due in more than five years:
Repayable otherwise than by instalments
Bank loans - more than 5 years 1,828,838 2,007,301

Bank loans are repayable over differing periods but do not exceed 15 years. Interest is paid at various rates dependant upon base rate.

M. FARREN LIMITED (REGISTERED NUMBER: 01739740)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST OCTOBER 2023

16. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
31.10.23 31.10.22
£    £   
Within one year 31,972 25,587
Between one and five years 121,807 79,236
In more than five years 247,613 267,422
401,392 372,245

17. SECURED DEBTS

The following secured debts are included within creditors:

31.10.23 31.10.22
£    £   
Bank loans 3,251,546 3,523,413

Bank borrowings are secured by a fixed and floating charge over the company's assets.


18. PROVISIONS FOR LIABILITIES
31.10.23 31.10.22
£    £   
Deferred tax
Accelerated capital allowances 99,623 45,498

Deferred
tax
£   
Balance at 1st November 2022 45,498
Accelerated capital allowances 54,125
Tax on revaluation
Balance at 31st October 2023 99,623

19. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 31.10.23 31.10.22
value: £    £   
1,002 Ordinary shares £1 1,002 1,002

20. RESERVES
Retained
earnings
£   

At 1st November 2022 4,000,238
Profit for the year 294,636
Dividends (10,000 )
At 31st October 2023 4,284,874

M. FARREN LIMITED (REGISTERED NUMBER: 01739740)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST OCTOBER 2023

21. DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

During the year the directors purchased goods from the company amounting to £694 (2022: £435), these sales were made in the ordinary course of business and at open market value.

Dividends of £10,000 were paid to directors during the year (2022: £10,000).

At the 31 October 2023 the amount due by the company to the directors was £5,306 (2022: £3,614). The advance does not bear interest nor is it secured.

22. ULTIMATE CONTROLLING PARTY

The Directors owning the majority of the issued share capital exercise control of the company.