REGISTERED NUMBER: |
Strategic Report, Report of the Directors and |
Financial Statements |
for the Year Ended 31st March 2024 |
for |
Adams Cash & Carry Limited |
REGISTERED NUMBER: |
Strategic Report, Report of the Directors and |
Financial Statements |
for the Year Ended 31st March 2024 |
for |
Adams Cash & Carry Limited |
Adams Cash & Carry Limited (Registered number: 05570822) |
Contents of the Financial Statements |
for the year ended 31st March 2024 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 5 |
Report of the Independent Auditors | 7 |
Income Statement | 11 |
Other Comprehensive Income | 12 |
Balance Sheet | 13 |
Statement of Changes in Equity | 14 |
Cash Flow Statement | 15 |
Notes to the Cash Flow Statement | 16 |
Notes to the Financial Statements | 18 |
Adams Cash & Carry Limited |
Company Information |
for the year ended 31st March 2024 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Statutory Auditors |
Princes House |
Wright Street |
Hull |
East Yorkshire |
HU2 8HX |
BANKERS: |
1 Legg Street, Chelmsford |
Essex |
CM1 1JS |
Adams Cash & Carry Limited (Registered number: 05570822) |
Strategic Report |
for the year ended 31st March 2024 |
The directors present their strategic report for the year ended 31st March 2024. |
REVIEW OF BUSINESS |
The key financial highlights are as follows: |
31/03/2024 | 31/03/2023 | 31/03/2022 |
£ | £ | £ |
Revenue | 20,019,146 | 17,001,820 | 13,713,475 |
Revenue - Growth/(decline) | 17.75% | 23.97% | 18.14% |
Profit/(loss) before tax | 479,194 | 2,377,965 | 498,204 |
Profit before tax margin | 2.4% | 13.9% | 3.6% |
The company's principal activity consists of the wholesale distribution and cash and carry of foodstuffs and packaging to catering establishments i.e. takeaways, restaurants, cafés, retail outlets and private customers. |
The company's main strategy is to provide a complete service to its core business customers, and to the private customers it has gained through the pandemic, i.e., when it launched a business-to-customer service as the general public sought alternatives to the big supermarkets during the peak of the pandemic. |
The company's recent financial performance aligns with trends observed across the industry. A significant portion of the sector's revenue growth in FY23 was driven by food and utility cost inflation. While most of these increased costs have been passed on to retailers and consumers, competitive pressures within the distribution segment have led to a partial absorption of these costs, resulting in reduced profit margins. |
Looking ahead to FY25, the sector is anticipated to experience a period of stabilisation in product costs, distribution expenses, and utility charges. In response, the company has developed strategies to restore operating profitability. These initiatives include diversifying its product offerings, expanding distribution routes, and implementing cost-saving measures. The company remains committed to advancing the business, with a focus on organic revenue growth and margin recovery. |
Adams Cash & Carry Limited (Registered number: 05570822) |
Strategic Report |
for the year ended 31st March 2024 |
PRINCIPAL RISKS AND UNCERTAINTIES |
The company's key financial instruments consist of bank balances, trade receivables, and trade payables. These instruments primarily serve to finance operations and manage liquidity. |
Price Risk |
As a wholesale distributor of foodstuffs and catering supplies, the company is exposed to price fluctuations due to competitive pressures. This risk is mitigated by maintaining adequate stock levels and ongoing market monitoring. |
Foreign Exchange Risk |
The company does not engage in purchasing products in foreign currencies, thereby avoiding exposure to foreign exchange risk. |
Credit Risk |
Customer accounts are regularly reviewed concerning outstanding balances and credit limits. Although some bad debts are experienced, the company believes it has effective systems in place to minimize this risk. |
Liquidity Risk |
Liquidity risk is managed by ensuring sufficient funds are available to meet payment obligations as they fall due. The company considers liquidity risk to be minimal. |
Interest Rate and Cash Flow Risk |
The company maintained a favourable cash balance throughout the year and does not consider interest rate or cash flow fluctuations to pose significant risks. |
The company primarily finances its operations through internally generated cash resources. Risk acceptance and management are governed by a structured framework of policies, procedures, and internal controls. Trade receivables are managed in accordance with the company's credit and cash flow risk management policies, which determine the level of credit extended to customers and involve regular monitoring of outstanding balances. Trade receivables are reviewed on an ongoing basis, and provisions are made for doubtful debts as deemed necessary. The management of trade payables is conducted by ensuring that adequate liquidity is maintained to meet payment obligations in accordance with agreed terms. |
The principal risks facing the company remain the maintenance of sufficient gross margins to support cash flow generation. The company has secured lending facilities with Lloyds plc, available for capital projects subject to board approval. The company continues to meet its loan repayment obligations in accordance with the agreed terms while sustaining positive cash flows. |
Adams Cash & Carry Limited (Registered number: 05570822) |
Strategic Report |
for the year ended 31st March 2024 |
FUTURE DEVELOPMENTS AND STRATEGY |
The Company aims to increase turnover whilst maintaining profit margins. The Company understands the need to implement strategic initiatives that drive sales and control costs. The key future developments that the Company is looking at to help achieve this balance are as follows: |
Market Expansion |
Entering new markets can significantly boost revenue. The Company has identified and targeted new customer segments and geographic areas that will increase their sales volume without compromising margins. |
Product Diversification |
The Company plans to introduce new branded products under its own brand (Adams Pride). This should attract more customers and increase sales. The aim is to spread risk and tap into new revenue streams, contributing to increased turnover. |
Pricing Strategies |
The Company has reviewed its pricing strategies to reflect market demand and cost changes to help maintain margins. This includes implementing dynamic pricing, bundling products and offering premium pricing for high-value items. |
Cost Efficiency |
The Company has streamlined operations and reduced some costs through automation, better supply chain management, and renegotiating supplier contracts to preserve margins. The Company continues to invest in technology to optimise processes, enhance productivity and reduce expenses. |
ON BEHALF OF THE BOARD: |
Adams Cash & Carry Limited (Registered number: 05570822) |
Report of the Directors |
for the year ended 31st March 2024 |
The directors present their report with the financial statements of the company for the year ended 31st March 2024. |
PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of |
DIVIDENDS |
An interim dividend of £ |
The total distribution of dividends for the year ended 31st March 2024 will be £ |
FUTURE DEVELOPMENTS |
These details have been provided in the company's strategic report. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1st April 2023 to the date of this report. |
Other changes in directors holding office are as follows: |
FINANCIAL INSTRUMENTS |
The company's primary financial reporting comprises the monthly production of detailed management accounts. These accounts include a comprehensive profit and loss statement (P&L) and balance sheet, which provide the directors with an in-depth analysis of the company's financial performance and position. The information presented facilitates ongoing monitoring of the company's financial progress against both the current budget and the prior year's performance for the corresponding period. |
The management accounts serve as a critical tool for the directors to assess the achievement of strategic objectives in relation to the company's long-term plans. The key performance indicators (KPIs) reported within the monthly management accounts include Revenue, Gross Profit, EBITDA, Stock Holdings, Debtors, Debtor Days, and Liquidity. |
CHARITY DONATIONS AND EXPENDITURE |
Donations of £7,373. |
FINANCIAL RISK MANAGEMENT |
These details are provided in the company's strategic report. |
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. |
Adams Cash & Carry Limited (Registered number: 05570822) |
Report of the Directors |
for the year ended 31st March 2024 |
STATEMENT OF DIRECTORS' RESPONSIBILITIES - continued |
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. |
The directors are responsible for the maintenance and integrity of the corporate and financial information included on the company's website. |
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, Sadofskys, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
Adams Cash & Carry Limited |
Opinion |
We have audited the financial statements of Adams Cash & Carry Limited (the 'company') for the year ended 31st March 2024 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 March 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 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 |
Adams Cash & Carry 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, 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. |
Report of the Independent Auditors to the Members of |
Adams Cash & Carry Limited |
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: |
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows: |
- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; |
- we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the food sector; |
- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, UK taxation legislation, and data protection, anti-bribery, employment, environmental, and health and safety legislation, along with industry specific regulations and requirements; |
- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and |
- identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. |
We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: |
- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and |
- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. |
To address the risk of fraud through management bias and override of controls, we: |
- performed analytical procedures to identify any unusual or unexpected relationships; |
- tested journal entries to identify unusual transactions; |
- assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and |
- investigated the rationale behind significant or unusual transactions. |
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: |
- agreeing financial statement disclosures to underlying supporting documentation; |
- reading the minutes of meetings of those charged with governance; |
- enquiring of management as to actual and potential litigation and claims; and |
- reviewing correspondence with HMRC, relevant regulators and the company's legal advisors. |
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. |
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. |
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 |
Adams Cash & Carry 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 |
Statutory Auditors |
Princes House |
Wright Street |
Hull |
East Yorkshire |
HU2 8HX |
Adams Cash & Carry Limited (Registered number: 05570822) |
Income Statement |
for the year ended 31st March 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
TURNOVER |
Cost of sales |
GROSS PROFIT |
Distribution costs |
Administrative expenses |
1,623,948 | 1,363,379 |
413,855 | 491,824 |
Other operating income |
OPERATING PROFIT | 4 |
Interest receivable and similar income |
540,616 | 602,303 |
Gain/loss on revaluation of assets | - | 1,905,210 |
540,616 | 2,507,513 |
Interest payable and similar expenses | 5 |
PROFIT BEFORE TAXATION |
Tax on profit | 6 |
PROFIT FOR THE FINANCIAL YEAR |
Adams Cash & Carry Limited (Registered number: 05570822) |
Other Comprehensive Income |
for the year ended 31st March 2024 |
2024 | 2023 |
Notes | £ | £ |
PROFIT FOR THE YEAR |
OTHER COMPREHENSIVE INCOME |
Purchase of Own Shares | ( |
) |
Capital Redemption Reserve |
Income tax relating to components of other comprehensive income |
OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX |
( |
) |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
Adams Cash & Carry Limited (Registered number: 05570822) |
Balance Sheet |
31st March 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 8 |
Tangible assets | 9 |
CURRENT ASSETS |
Stocks | 10 |
Debtors | 11 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 12 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
13 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 17 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 18 |
Capital redemption reserve | 19 |
Fair value reserve | 19 |
Retained earnings | 19 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
Adams Cash & Carry Limited (Registered number: 05570822) |
Statement of Changes in Equity |
for the year ended 31st March 2024 |
Called up | Capital | Fair |
share | Retained | redemption | value | Total |
capital | earnings | reserve | reserve | equity |
£ | £ | £ | £ | £ |
Balance at 1st April 2022 |
Changes in equity |
Issue of share capital | ( |
) | - | - | - | ( |
) |
Total comprehensive income | - |
No description | - | (1,905,210 | ) | - | 1,905,210 | - |
Balance at 31st March 2023 |
Changes in equity |
Dividends | - | ( |
) | - | - | ( |
) |
Total comprehensive income | - |
Deferred tax | - | 476,302 | - | (476,302 | ) | - |
Balance at 31st March 2024 |
Adams Cash & Carry Limited (Registered number: 05570822) |
Cash Flow Statement |
for the year ended 31st March 2024 |
2024 | 2023 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 |
Interest paid | ( |
) | ( |
) |
Interest element of hire purchase payments paid |
( |
) |
( |
) |
Tax paid | ( |
) | ( |
) |
Net cash from operating activities |
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Sale of tangible fixed assets |
Interest received |
Net cash from investing activities | ( |
) | ( |
) |
Cash flows from financing activities |
Loan repayments in year | ( |
) | ( |
) |
Capital repayments in year | ( |
) | ( |
) |
Amount withdrawn by directors | (82,416 | ) | 30,277 |
Share issue | ( |
) |
Purchase of own shares | ( |
) |
Equity dividends paid | ( |
) |
Net cash from financing activities | ( |
) | ( |
) |
(Decrease)/increase in cash and cash equivalents | ( |
) |
Cash and cash equivalents at beginning of year |
2 |
103,830 |
Cash and cash equivalents at end of year | 2 | 165,771 |
Adams Cash & Carry Limited (Registered number: 05570822) |
Notes to the Cash Flow Statement |
for the year ended 31st March 2024 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2024 | 2023 |
£ | £ |
Profit before taxation |
Depreciation charges |
Loss on disposal of fixed assets |
Gain on revaluation of fixed assets | - | (1,905,210 | ) |
Finance costs | 61,422 | 129,548 |
Finance income | (469 | ) | (17 | ) |
780,719 | 808,820 |
(Increase)/decrease in stocks | ( |
) |
(Increase)/decrease in trade and other debtors | ( |
) |
Increase/(decrease) in trade and other creditors | ( |
) |
Cash generated from operations |
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 March 2024 |
31/3/24 | 1/4/23 |
£ | £ |
Cash and cash equivalents | 169,330 | 165,771 |
Bank overdrafts | ( |
) |
104,955 | 165,771 |
Year ended 31st March 2023 |
31/3/23 | 1/4/22 |
£ | £ |
Cash and cash equivalents | 165,771 | 103,830 |
Adams Cash & Carry Limited (Registered number: 05570822) |
Notes to the Cash Flow Statement |
for the year ended 31st March 2024 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
At 1/4/23 | Cash flow | At 31/3/24 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 165,771 | 3,559 | 169,330 |
Bank overdrafts | - | (64,375 | ) | (64,375 | ) |
165,771 | ( |
) | 104,955 |
Debt |
Finance leases | (182,028 | ) | 59,958 | (122,070 | ) |
Debts falling due within 1 year | (111,916 | ) | 19,544 | (92,372 | ) |
Debts falling due after 1 year | (706,798 | ) | 195,106 | (511,692 | ) |
(1,000,742 | ) | 274,608 | (726,134 | ) |
Total | (834,971 | ) | 213,792 | (621,179 | ) |
Adams Cash & Carry Limited (Registered number: 05570822) |
Notes to the Financial Statements |
for the year ended 31st March 2024 |
1. | STATUTORY INFORMATION |
Adams Cash & Carry Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
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 |
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 |
Freehold property | - |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
Computer equipment | - |
Stocks |
Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow moving items. Stock is rotated on a FIFO basis and consists of perishable and non perishable goods. |
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. |
Adams Cash & Carry Limited (Registered number: 05570822) |
Notes to the Financial Statements - continued |
for the year ended 31st March 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. |
Research and development |
Expenditure on research and development is written off in the year in which it is incurred. |
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
Hire purchase and leasing commitments |
Assets held under finance lease or hire purchase contracts i.e (those contracts where substantially all the risks and rewards of ownership have passed to the company), are included in the appropriate category of tangible fixed assets and are depreciated over the shorter of the lease term and their estimated expected useful lives. |
Future obligations under such contracts are included in creditors net of the finance charge allocated to future periods. |
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. |
Supplier rebates |
Supplier rebates are shown as other income within the accounts and are not material in value. |
Financial instruments |
The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instrument Issues' of FRS 102 to all of its financial instruments. |
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions on the instrument. Financial assets and liabilities are offset with the net amounts presented in the financial statements, where there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. |
3. | EMPLOYEES AND DIRECTORS |
2024 | 2023 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
Adams Cash & Carry Limited (Registered number: 05570822) |
Notes to the Financial Statements - continued |
for the year ended 31st March 2024 |
3. | EMPLOYEES AND DIRECTORS - continued |
The average number of employees during the year was as follows: |
2024 | 2023 |
Directors | 2 | 1 |
Administration and Warehouse | 15 | 12 |
Warehouse | 26 | 26 |
Transport | 15 | 13 |
In 2024 the company assisted with the sponsorship of foreign internationals and the cost to the company is £37,659 included within legal fees. |
2024 | 2023 |
£ | £ |
Directors' remuneration |
4. | OPERATING PROFIT |
The operating profit is stated after charging: |
2024 | 2023 |
£ | £ |
Other operating leases |
Depreciation - owned assets |
Loss on disposal of fixed assets |
Auditors' remuneration |
5. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2024 | 2023 |
£ | £ |
Bank loan interest |
Other interest payable |
Interest payable |
Hire purchase interest |
6. | 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 |
Deferred taxation |
Tax on profit |
Adams Cash & Carry Limited (Registered number: 05570822) |
Notes to the Financial Statements - continued |
for the year ended 31st March 2024 |
6. | 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 |
Profit multiplied by the standard rate of corporation tax in the UK of (2023 - |
Effects of: |
Depreciation on non qualifying assets | 13,008 | 2,646 |
Capital allowances in excess of depreciation | - | (9,319 | ) |
Under provision of tax | - | (25,435 | ) |
Effect of change in tax rate | 182,472 | - |
Total tax charge | 315,279 | 419,705 |
Tax effects relating to effects of other comprehensive income |
There were no tax effects for the year ended 31st March 2024. |
2023 |
Gross | Tax | Net |
£ | £ | £ |
Purchase of Own Shares | ( |
) | - | (199,999 | ) |
Capital Redemption Reserve | - | 1 |
(199,998 | ) | - | (199,998 | ) |
7. | DIVIDENDS |
2024 | 2023 |
£ | £ |
Interim |
8. | INTANGIBLE FIXED ASSETS |
Goodwill |
£ |
COST |
At 1st April 2023 |
and 31st March 2024 |
AMORTISATION |
At 1st April 2023 |
and 31st March 2024 |
NET BOOK VALUE |
At 31st March 2024 |
At 31st March 2023 |
Adams Cash & Carry Limited (Registered number: 05570822) |
Notes to the Financial Statements - continued |
for the year ended 31st March 2024 |
9. | TANGIBLE FIXED ASSETS |
Fixtures |
Freehold | Plant and | and |
property | machinery | fittings |
£ | £ | £ |
COST OR VALUATION |
At 1st April 2023 |
Additions |
Disposals |
At 31st March 2024 |
DEPRECIATION |
At 1st April 2023 |
Charge for year |
Eliminated on disposal |
At 31st March 2024 |
NET BOOK VALUE |
At 31st March 2024 |
At 31st March 2023 |
Motor | Computer |
vehicles | equipment | Totals |
£ | £ | £ |
COST OR VALUATION |
At 1st April 2023 |
Additions |
Disposals | ( |
) | ( |
) |
At 31st March 2024 |
DEPRECIATION |
At 1st April 2023 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
At 31st March 2024 |
NET BOOK VALUE |
At 31st March 2024 |
At 31st March 2023 |
Adams Cash & Carry Limited (Registered number: 05570822) |
Notes to the Financial Statements - continued |
for the year ended 31st March 2024 |
9. | TANGIBLE FIXED ASSETS - continued |
Cost or valuation at 31st March 2024 is represented by: |
Fixtures |
Freehold | Plant and | and |
property | machinery | fittings |
£ | £ | £ |
Valuation in 2023 | 1,905,210 | - | - |
Cost | 807,509 | 1,916,892 | 224,764 |
2,712,719 | 1,916,892 | 224,764 |
Motor | Computer |
vehicles | equipment | Totals |
£ | £ | £ |
Valuation in 2023 | - | - | 1,905,210 |
Cost | 393,128 | 114,306 | 3,456,599 |
393,128 | 114,306 | 5,361,809 |
10. | STOCKS |
2024 | 2023 |
£ | £ |
Stocks |
11. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2024 | 2023 |
£ | £ |
Trade debtors |
Other debtors |
VAT |
Prepayments and accrued income |
12. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2024 | 2023 |
£ | £ |
Bank loans and overdrafts (see note 14) |
Hire purchase contracts (see note 15) |
Trade creditors |
Taxation |
Social security and other taxes |
VAT | - | 10,206 |
Other creditors |
Directors' current accounts | 80 | 82,496 |
Accrued expenses |
Adams Cash & Carry Limited (Registered number: 05570822) |
Notes to the Financial Statements - continued |
for the year ended 31st March 2024 |
13. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2024 | 2023 |
£ | £ |
Bank loans (see note 14) |
Hire purchase contracts (see note 15) |
14. | LOANS |
An analysis of the maturity of loans is given below: |
2024 | 2023 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank overdrafts |
Bank loans |
Amounts falling due between one and two years: |
Bank loans - 1-2 years |
Amounts falling due between two and five years: |
Bank loans - 2-5 years |
Amounts falling due in more than five years: |
Repayable by instalments |
Bank loans more 5 yr by instal | 390,752 | 498,130 |
15. | LEASING AGREEMENTS |
Minimum lease payments under hire purchase fall due as follows: |
2024 | 2023 |
£ | £ |
Net obligations repayable: |
Within one year |
Between one and five years |
The net book value of Plant and Machinery and Vehicles includes £122,070 (2023: £162,185) in respect of assets leased under finance leases or hire purchase contracts. |
Continual rental agreement commitments of £5,952 per annum. |
Adams Cash & Carry Limited (Registered number: 05570822) |
Notes to the Financial Statements - continued |
for the year ended 31st March 2024 |
16. | SECURED DEBTS |
The following secured debts are included within creditors: |
2024 | 2023 |
£ | £ |
Bank overdraft |
Bank loans |
The bank loans total £604,064. Of this value £535,881 (2023: £683,509) are secured. The bank overdraft is also secured. Lloyds Bank hold a fixed and floating charge as well as a debenture holding on the Land and Buildings at Ivatt Way. In addition, the shareholder has also given a personal guarantee on the loans. |
The loans are due to be repaid by December 2036. |
17. | PROVISIONS FOR LIABILITIES |
2024 | 2023 |
£ | £ |
Deferred tax |
Accelerated capital allowances |
Other timing differences | 361,990 | 361,990 |
752,436 | 577,828 |
Deferred |
tax |
£ |
Balance at 1st April 2023 |
Provided during year |
Balance at 31st March 2024 |
18. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2024 | 2023 |
value: | £ | £ |
Ordinary | £1 |
Ordinary shares entitle the holder to participate in dividends and the proceeds on the winding up of the company in proportion to the number of and amounts paid on the shares held. The fully paid ordinary shares have a par value of £1 per share and the company does not have a limited amount of authorised capital. |
Adams Cash & Carry Limited (Registered number: 05570822) |
Notes to the Financial Statements - continued |
for the year ended 31st March 2024 |
19. | RESERVES |
Capital | Fair |
Retained | redemption | value |
earnings | reserve | reserve | Totals |
£ | £ | £ | £ |
At 1st April 2023 | 3,080,430 |
Profit for the year |
Dividends | ( |
) | ( |
) |
Deferred tax | 476,302 | - | (476,302 | ) | - |
At 31st March 2024 | 3,243,845 |
Capital redemption reserve |
Within the year to 31st March 2023 the company purchased back 1 Ordinary share for the value of £200,000 and has been reflected as a reduction in shares owned and a reduction the reserve account. This has been reclassified in the restated comparatives to show the movement into the capital redemption reserve from retained earnings. There has been no effect to taxation. |
Fair value reserve |
The fair value reserve relates to a revaluation of Ivatt Way on 31st March 2023. |
20. | RELATED PARTY DISCLOSURES |
At the balance sheet date the company was owed amounts from the following related parties; |
2024 | 2023 |
£ | £ |
Red Lion Bicker Limited | 493,132 | 275,000 |
Ivatt Self Storage and Property Services | 8,000 | - |
Adam Aziz Properties Limited | 198,427 | 138,426 |
Harrison Springfield Properties Limited | 186,988 | - |
Red Lion Construction Limited | 288 | - |
At the balance sheet date the company owed amounts to the following related parties; |
2024 | 2023 |
£ | £ |
Issac Properties | 7,000 | 7,000 |
During the year, the company received management charges to the following related parties; |
2024 | 2023 |
£ | £ |
Ivatt Self Storage and Property Services | 35,600 | 35,600 |
During the year, the company made sales to the following related parties; |
2024 | 2023 |
£ | £ |
Red Lion Construction Limited | 312 | - |
At the year end the company owed Non exec director £1,200 (2023: NIL). During the year the company paid Non exec directors directors remuneration totalling £7,710. (2023: £3,504) and consultancy fees of £14,621 (2023: £40,372). |
Adams Cash & Carry Limited (Registered number: 05570822) |
Notes to the Financial Statements - continued |
for the year ended 31st March 2024 |
21. | ULTIMATE CONTROLLING PARTY |
The ultimate controlling party is |