Company registration number 05454806 (England and Wales)
ORDER LINE LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 FEBRUARY 2024
ORDER LINE LIMITED
COMPANY INFORMATION
Directors
Mrs A Bhojani
Mr M R Bhojani
Mr S H Bhojani
Mr Z A Y Bhojani
Secretary
Mr M R Bhojani
Company number
05454806
Registered office
7 Prince William Road
Loughborough
England
LE11 5GU
Auditor
Forvis Mazars LLP
Meridian Business Park
6 Dominus Way
Leicester
LE19 1RP
Bankers
Lloyds Bank Plc
37/38 High Street
Loughborough
LE11 2QG
ORDER LINE LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Notes to the financial statements
11 - 22
ORDER LINE LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 1 -

The directors present the strategic report for the year ended 29 February 2024.

Review of the business

The directors are pleased to report another successful year of trading and consider turnover, gross profit margin, stock levels and net assets as the key performance indicators of the company.

 

During the year, the company generated income of £34.4m (2023: £37.2m), with a gross profit margin 16.1% (2023: 14.0%) achieved.

 

At the year end the company held stocks of £2.7m (2023: £3.0m) and had net assets of £1.01m (2023: £553k).

 

Turnover declined from the the previous year in line with the wider industry trending linked to macro economics issues during this time, however profits increased in the same period compared to the previous year from £455k to £560k – demonstrating the agility of the company to adapt to wider market conditions, and effective management of costs.

 

The directors are pleased to report overall a relatively strong performance during the year and post year end despite a challenging year across the whole industry linked to very low GDP growth in the UK tied to high inflation and high interest rates.

 

The directors therefore believe the company's position to be satisfactory, in line with expectations and the strategic direction agreed by the directors.

 

The company remains committed to being fully compliant with all relevant regulatory bodies and being the company of choice for customers and established suppliers.

 

The company continues to invest significantly in its workplace, infrastructure and service capability to achieve these objectives with high levels of quality compliance and to ensure it continues to be seen as the preferred choice within its core market where it operates. Other streams of revenue such as NHS prescription dispensing have continued to increase as well as revenue outside of the UK (Rest of the world).

 

Principal risks and uncertainties

The directors are not aware of any significant risks facing the company in the next twelve months, the directors are expecting for the company’s performance to be relatively stable into 2025. Medium term uncertainties facing the company may primarily be linked to low UK economic growth with geo-political tensions in Europe and the Middle-East. The company continues to be well established within its current markets and therefore any economic downturn within the UK over the medium term may be somewhat mitigated based on the company’s strong reputation and dynamic market position by leveraging on a wide range of customer types and locations while also holding a deep and broad portfolio of products for our customers.

 

The principal ongoing general business risks include:

Increase in operating costs including but not limited to human resources costs. The directors continue to invest and plan in stream-lining the company to mitigate this risk such as up-skilling existing teams with continued investment into I.T and outsourcing to seek further efficiencies in business processes and using A.I where appropriate. Energy cost increases continued to be mitigated where possible through investment planning on vehicles and buildings infrastructure.

 

Risks in disruption of supply chains linked to possible wider wars around Ukraine and the Middle East - supply chain risks have been managed in the past (such as during the Covid pandemic) by maintaining a close working relationship with major manufacturers - forecasting for adequate stocks to be procured while redundant supply chains are in place for alternative products. I.T systems are ready to quickly adapt to help our teams engage with customers leveraging off our large product database.

 

Risk of competition - Strong customer relationships, built on excellent products and customer service, and a reputation as a premium medical distributor helps to reduce the risk of competition. While this risk is currently well-managed with increased growth in mid-2024, the directors continue to monitor the competitive landscape.

ORDER LINE LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 2 -

Cash flow and liquidity risk - the company currently mitigates risk by actively managing its cash flow through various policies such as, the company’s tight credit control procedures, stock purchasing regimes with just-in-time inventory controls or working with suppliers on consignment stock / order fulfilment regimes With a strong cash position of the company and regular demand from a broad range of customers, sufficient risk has been mitigated to a satisfactory level. To also note the CBILS loan has continued to be re-paid in line with the bank’s expectations despite the increase in interest rates over the last year, and now with interest rates expected to decline somewhat as inflation settles, this will also help the company’s cash position as an added bonus.

 

Credit risk - The company's policies are aimed at minimising such risk and any losses arising from other parties failing to discharge their obligations. Customers are required to satisfy credit worthiness procedures prior to credit being provided,. The directors consider that this risk has been mitigated to a satisfactory level.

Other information and explanations

The directors noted that 2024 avoided a major UK recession despite the global economic uncertainty and instability of the pound sterling in 2024. The recent Bank of England and other fiscal institutions’ forecasts of the UK economy over the forthcoming year are cautiously positive in 2025 for the country and consumers. The company remains resilient with such risks linked to consumer income fluctuations by way of a wide spread of varied customer group types across the UK (and in turn a variety of patient demographics and treatment needs). The company continues to hold a strong reputation as a premium choice pharmacy for a growing base of patients and robust product distributor for majority of manufacturers and health care practitioners.

 

With Russian Forces entering the Ukraine in 2022 and new conflicts in the Middle-East since 2023, It is also noted the heightened global tensions may have increased political and economic ramifications in the medium term. The directors have carried out an updated assessment of these geo-potential impacts on the company, including the analysis of mitigation measures and uncertainties. The company does not operate in Ukraine, Russia or the Middle-East and no key suppliers or customers are located in any of these countries. The Board’s assessment of these highly tragic geopolitical situations is that the business continues not to be directly impacted by these events, however the directors acknowledge that there may be some indirect impact on the company based on how the new UK government and its allies may strategise within the international community e.g. possible short term impacts in increased oil global prices, delayed international shipping routes, etc is possible; the company has taken into account during the going concern assessment, and will continue to monitor its impact, and respond accordingly with it’s, strong cash position and resilient supply chain planning and agile management structures with almost 20 years experience since the company was established in 2005.

 

The business climate remains challenging in a low UK growth economy, although demand is relatively stable. The company continues to find new and innovative routes to market and to build-on established partnerships with major brands.

 

Going Concern

After reviewing the company's forecasts and projections, the directors have reasonable expectation that the company can remain a viable going concern for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing the financial statements.

On behalf of the board

Mr S H Bhojani
Director
7 November 2024
ORDER LINE LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 3 -

The directors present their annual report and financial statements for the year ended 29 February 2024.

Principal activities

The principal activity of the company continued to be that of the wholesale and retail trading of pharmaceutical products and research, development and sale of information technology projects.

Results and dividends

The results for the year are set out on page 8.

No ordinary dividends were paid during the current or prior year. The directors do not recommend payment of a final dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mrs A Bhojani
Mr M R Bhojani
Mr S H Bhojani
Mr Z A Y Bhojani
Principal risks and uncertainties

The strategic report contains details of the principal risks and uncertainties which are faced by the company.

Future developments

The directors are confident about the future prospects for the company, having undertaken a review of the company's performance post-year end.

Auditor

The auditor, Forvis Mazars LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Statement of directors' responsibilities

The directors are responsible for preparing the annual 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 of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

 

 

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.

ORDER LINE LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 4 -
Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

On behalf of the board
Mr S H Bhojani
Director
7 November 2024
ORDER LINE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ORDER LINE LIMITED
- 5 -
Opinion

We have audited the financial statements of Order Line Limited (the ‘company’) for the year ended 29 February 2024 which comprise the statement of comprehensive income, balance sheet, statement of changes in equity 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:

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 contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

 

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

ORDER LINE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ORDER LINE LIMITED
- 6 -
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 and 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:

 

Responsibilities of directors

As explained more fully in the directors’ responsibilities statement set out on page 4, 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 the financial statements.

 

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

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.

 

Based on our understanding of the company and its industry, we considered that non-compliance with the following laws and regulations might have a material effect on the financial statements: employment regulation, health and safety regulation and anti-money laundering regulation.

ORDER LINE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ORDER LINE LIMITED
- 7 -

To help us identify instances of non-compliance with these laws and regulations, and in identifying and assessing the risks of material misstatement in respect to non-compliance, our procedures included, but were not limited to:

 

We also considered those laws and regulations that have a direct effect on the preparation of the financial statements, such as tax legislation, pension legislation, the Companies Act 2006.

 

In addition, we evaluated the directors’ and management’s incentives and opportunities for fraudulent manipulation of the financial statements, including the risk of management override of controls, and determined that the principal risks related to posting manual journal entries to manipulate financial performance, management bias through judgements and assumptions in significant accounting estimates, in particular in relation to, revenue recognition (which we pinpointed to the cut-off risk), and significant one-off or unusual transactions.

Our audit procedures in relation to fraud included but were not limited to:

 

There are inherent limitations in the audit procedures described above and the primary responsibility for the prevention and detection of irregularities including fraud rests with management. As with any audit, there remained a risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal controls.

 

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 auditor's 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.

Stephen English (Senior Statutory Auditor)
for and on behalf of
Forvis Mazars LLP
Chartered Accountants and Statutory Auditor
Meridian Business Park
6 Dominus Way
Leicester
LE19 1RP
7 November 2024
ORDER LINE LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
34,351,147
37,222,797
Cost of sales
(28,836,006)
(32,020,585)
Gross profit
5,515,141
5,202,212
Administrative expenses
(4,925,415)
(4,753,483)
Other operating income
3
21,029
42,449
Operating profit
4
610,755
491,178
Interest receivable and similar income
7
3,498
2,349
Interest payable and similar expenses
8
(53,640)
(38,505)
Profit before taxation
560,613
455,022
Tax on profit
9
(102,303)
(49,488)
Profit and total comprehensive income for the financial year
458,310
405,534

The statement of comprehensive income has been prepared on the basis that all operations are continuing operations.

 

There are no recognised gains and losses other than those passing through the statement of comprehensive income.

The notes on pages 11 to 22 form part of these financial statements.

ORDER LINE LIMITED
BALANCE SHEET
AS AT
29 FEBRUARY 2024
29 February 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
10
265,993
245,068
Tangible assets
11
346,523
375,747
612,516
620,815
Current assets
Stocks
12
2,725,146
3,040,662
Debtors
13
2,801,603
1,454,652
Cash at bank and in hand
1,155,291
1,642,359
6,682,040
6,137,673
Creditors: amounts falling due within one year
14
(5,819,875)
(5,379,798)
Net current assets
862,165
757,875
Total assets less current liabilities
1,474,681
1,378,690
Creditors: amounts falling due after more than one year
15
(376,808)
(731,822)
Provisions for liabilities
Deferred tax liability
18
(86,631)
(93,936)
(86,631)
(93,936)
Net assets
1,011,242
552,932
Capital and reserves
Called up share capital
20
100
100
Profit and loss reserves
21
1,011,142
552,832
Total equity
1,011,242
552,932
The financial statements were approved by the board of directors and authorised for issue on 7 November 2024 and are signed on its behalf by:
Mr S H Bhojani
Director
Company Registration No. 05454806

The notes on pages 11 to 22 form part of these financial statements.

ORDER LINE LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 10 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 March 2022
100
147,298
147,398
Year ended 28 February 2023:
Profit and total comprehensive income
-
405,534
405,534
Balance at 28 February 2023
100
552,832
552,932
Year ended 29 February 2024:
Profit and total comprehensive income
-
458,310
458,310
Balance at 29 February 2024
100
1,011,142
1,011,242

The notes on pages 11 to 22 form part of these financial statements.

ORDER LINE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 11 -
1
Accounting policies
Company information

Order Line Limited is a private company limited by shares incorporated in England and Wales. The registered office is 7 Prince William Road, Loughborough, England, LE11 5GU.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in Pound sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

 

 

The financial statements of the company are consolidated in the financial statements of Skynet Ltd. These consolidated financial statements are available from its registered office, 7 Prince William Road, Loughborough, LE11 5GU.

1.2
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods supplied net of discounts and Value Added Tax.

Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on despatch of the goods), the amount of turnover can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.4
Intangible fixed assets other than goodwill

Intangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated amortisation and impairment losses.

ORDER LINE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
1
Accounting policies
(Continued)
- 12 -

Amortisation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following annual basis:

IT Software Development
33% straight line
1.5
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following annual bases:

Fixtures, fittings and equipment
12.5% straight line
Motor vehicles
25% straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.6
Impairment of fixed assets

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.

1.7
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price is recognised as an impairment loss in the Statement of Comprehensive Income. Reversals of impairment losses are also recognised in the Statement of Comprehensive Income.

1.8
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held with banks and cash held by payment platforms.

1.9
Financial instruments
Basic financial assets

Basic financial assets, which include debtors, loans to fellow group companies and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

ORDER LINE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
1
Accounting policies
(Continued)
- 13 -
Basic financial liabilities

Basic financial liabilities, including creditors, finance leases and bank loans, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.10
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences between taxable profits and profits reported in the financial statements. Unrelieved tax losses and other deferred tax assets are recognised when it is probably that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

 

Deferred tax is calculated at the tax rates that have been enacted or substantively enacted by the reporting date and are expected to apply in the period to the reversal of the timing difference.

1.11
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.12
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

ORDER LINE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
1
Accounting policies
(Continued)
- 14 -
1.13
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease.

 

1.14
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Key sources of estimation uncertainty

There are considered to be no judgements, estimates or assumptions which have a significant risk of causing a material adjustment to the carrying value of assets and liabilities.

 

ORDER LINE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 15 -
3
Turnover and other operating income
2024
2023
£
£
Other operating income
Grants received
-
193
Rental income
6,000
6,000
Other
15,029
36,256
21,029
42,449
2024
2023
£
£
Turnover analysed by geographical market
UK
34,141,147
37,090,680
Rest of world
210,000
132,117
34,351,147
37,222,797

Turnover is wholly attributable to the principal activity of the company.

4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Foreign exchange (gains)/losses
(49,340)
9,409
Fees payable to the company's auditor for the audit of the company's financial statements
18,000
15,000
Depreciation of owned tangible fixed assets
82,213
79,774
Depreciation of tangible fixed assets held under finance leases
22,457
22,457
Profit on disposal of tangible fixed assets
-
(3,000)
Amortisation of intangible assets
250,024
228,265
Operating lease charges
10,394
21,500
5
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2024
2023
Number
Number
Administration
41
37
Operations
16
19
Total
57
56
ORDER LINE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
5
Employees
(Continued)
- 16 -

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
1,538,167
1,451,621
Social security costs
150,512
145,728
Pension costs
28,153
28,066
1,716,832
1,625,415
6
Directors' remuneration

No remuneration was paid to the directors.

7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
3,498
2,349
8
Interest payable
2024
2023
£
£
Interest on bank loans
50,979
36,720
Interest on finance leases
2,661
1,785
53,640
38,505
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
125,363
38,104
Adjustments in respect of prior periods
(15,754)
(9,381)
Total current tax
109,609
28,723
Deferred tax
Origination and reversal of timing differences
(7,306)
20,765
Total tax charge
102,303
49,488
ORDER LINE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
9
Taxation
(Continued)
- 17 -

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
Profit before taxation
560,613
455,022
Expected tax charge based on the standard rate of corporation tax in the UK of 24.49% (2023: 19.00%)
137,305
86,454
Tax effect of expenses that are not deductible in determining taxable profit
5,387
5,407
Tax effect of income not taxable in determining taxable profit
-
0
(570)
Unutilised tax losses carried forward
-
0
(21,443)
Adjustments in respect of prior years
(15,754)
(9,381)
Group relief
(24,469)
(22,816)
Differences between capital allowances and depreciation
25,636
19,424
Other reversing timing differences
(25,802)
(7,587)
Taxation charge for the year
102,303
49,488

In the Spring Budget 2021, the Government announced that the rate of Corporation Tax would increase from 19% to 25% with effect from 1 April 2023. The company's Corporation Tax liability has been calculated at the rates in force during the year, and as such 24.49% is the effective rate of Corporation Tax for the year ended 29 February 2024.

10
Intangible fixed assets
IT Software Development
£
Cost
At 1 March 2023
1,820,611
Additions
270,949
At 29 February 2024
2,091,560
Amortisation
At 1 March 2023
1,575,543
Amortisation charged for the year
250,024
At 29 February 2024
1,825,567
Carrying amount
At 29 February 2024
265,993
At 28 February 2023
245,068
ORDER LINE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 18 -
11
Tangible fixed assets
Fixtures, fittings and equipment
Motor vehicles
Total
£
£
£
Cost
At 1 March 2023
732,696
197,433
930,129
Additions
75,446
-
0
75,446
Disposals
-
0
(45,608)
(45,608)
At 29 February 2024
808,142
151,825
959,967
Depreciation
At 1 March 2023
459,276
95,106
554,382
Depreciation charged in the year
67,964
36,706
104,670
Eliminated in respect of disposals
-
0
(45,608)
(45,608)
At 29 February 2024
527,240
86,204
613,444
Carrying amount
At 29 February 2024
280,902
65,621
346,523
At 28 February 2023
273,420
102,327
375,747

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases.

2024
2023
£
£
Motor vehicles
44,915
67,382
12
Stocks
2024
2023
£
£
Finished goods and goods for resale
2,725,146
3,040,662

A provision of £6,897 (2023: £15,586) has been made for short-dated stock. The carrying value of stock at the year end includes this provision.

ORDER LINE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 19 -
13
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
613,788
220,345
Amounts owed by group undertakings
1,281,338
664,736
Other debtors
623,319
532,869
Prepayments and accrued income
283,158
36,702
2,801,603
1,454,652

Amounts owed by group undertakings are interest free and repayable upon demand.

 

At the year end, the company did not consider any provision for bad or doubtful debts to be required (2023: no provision required).

14
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loan
16
309,091
309,091
Obligations under finance leases
17
23,923
22,655
Trade creditors
4,947,918
4,541,085
Corporation tax
125,363
38,104
Other taxation and social security
34,911
29,174
Other creditors
209,086
277,279
Accruals and deferred income
169,583
162,410
5,819,875
5,379,798
15
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loan
16
364,363
695,454
Obligations under finance leases
17
12,445
36,368
376,808
731,822
ORDER LINE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 20 -
16
Loans
2024
2023
£
£
Bank loan
673,454
1,004,545
Payable within one year
309,091
309,091
Payable after one year
364,363
695,454

The bank loan is secured by an unlimited debenture secured against the assets of the company.

17
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
23,923
22,655
In two to five years
12,445
36,368
36,368
59,023

Finance lease payments represent amounts payable by the company for motor vehicles. Finance lease obligations are secured on the asset to which they relate.

18
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
86,631
93,936
2024
Movements in the year:
£
Liability at 1 March 2023
93,936
Credit to profit or loss
(7,305)
Liability at 29 February 2024
86,631

The deferred tax liability set out above is expected to reverse within 7 years and relates to accelerated capital allowances that are expected to mature within the same period.

ORDER LINE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 21 -
19
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
28,153
28,066

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

Included within closing creditors are contributions of £nil (2023: £6135) in respect of the year.

20
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100
100
100
100

The company has one class of ordinary shares which carry voting, dividend and capital distribution rights.

21
Reserves

Called up share capital

This represents the nominal value of shares in issue.

 

Profit and loss account

This reserve records retained earnings and accumulated losses.

22
Operating lease commitments

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2024
2023
£
£
Within one year
11,692
6,500
Between two and five years
29,781
26,000
In over five years
-
0
3,792
41,473
36,292
23
Related party transactions
Transactions with related parties

As a subsidiary undertaking of Skynet Ltd, the company has taken advantage of the exemption under Section 33.1A of FRS 102 from disclosing transactions with other members that are wholly owned within the group.

ORDER LINE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
23
Related party transactions
(Continued)
- 22 -

During the year the company made advances totalling £162,046 (2023: £54,369) to various connected parties of the directors or the company, and received repayments totalling £22,000 (2023: £28,086). At the year end £254,313 (2023: £114,267) was owed to the company from these connected parties.

 

During the year, the company made sales to a business operated by a close family member of a director totalling £11,925 (2023: £12,794). At the year end £1,016 (2023: £571) was due to the company from these related parties.

24
Directors' transactions

During the year, the company made payments totalling £57,870 (2023: £118,105) to the directors, and received payments totalling £nil (2023: £320,536) from the directors. At 29 February 2024 £20,068 was owed to the directors by the company (2023: £77,938).

25
Parent company and ultimate controlling party

The company's immediate and ultimate parent is Skynet Ltd, incorporated in England & Wales.

 

The most senior parent entity producing publicly available financial statement is Skynet Ltd. These financial statements are available upon request from 7 Prince William Road, Loughborough, LE11 5GU.

 

The ultimate controlling parties are Mr M R and Mrs A Bhojani.

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