Company registration number 04357481 (England and Wales)
SKYNET LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 FEBRUARY 2024
SKYNET LTD
COMPANY INFORMATION
Directors
Mrs A Bhojani
Mr M R Bhojani
Mr S H Bhojani
Mr Z A Y Bhojani
Secretary
Mr S H Bhojani
Ms K F Bhojani
Mrs S B Patel
Company number
04357481
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
SKYNET LTD
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Group statement of comprehensive income
8
Group balance sheet
9
Company balance sheet
10
Group statement of changes in equity
11
Company statement of changes in equity
12
Group statement of cash flows, net funds and debt
13
Notes to the financial statements
14 - 29
SKYNET LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 1 -

The directors are pleased to present their strategic report for the year ended 29 February 2024.

Review of the business

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

 

During the year, group turnover for the year was £34.6m (2023: £37.3m), with a gross profit margin of 16.1% (2023: 14.1%) achieved.

 

At the year end the group held stocks of £2.9m (2023: £3.2m) and had net assets of £0.37m (2023 £0.37m).

 

During the year, dividends totalling £412,000 (2023: £476,390) were paid to shareholders.

 

The directors are pleased to report 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 group's position to be satisfactory, in line with expectations and the strategic direction agreed by the directors.

 

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

 

The group 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 group in the next twelve months, the directors are expecting for the group’s performance to be relatively stable into 2025. Medium term uncertainties facing the group may primarily be linked to low UK economic growth with geo-political tensions in Europe and the Middle-East. The group 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 group’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 group 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.

SKYNET LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 2 -

Cash flow and liquidity risk - the group currently mitigates risk by actively managing its cash flow through various policies such as, the group’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 group and regular demand from a broad range of customers, sufficient risk has been mitigated to a satisfactory level. To also note the CBILS loan for Order Line Ltd 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 group’s cash position as an added bonus.

 

Credit risk - The group'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 group 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 group 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 group, including the analysis of mitigation measures and uncertainties. The business 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 group 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 group 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.

 

The business climate remains challenging, although demand remains relatively stable. The group continues to find new and innovative routes to market and to build-on established partnerships with major brands.

 

Going Concern

After reviewing the company and group's forecasts and projections, the directors have reasonable expectation that the group can remain a viable going concern for the foreseeable future. The group 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
SKYNET LTD
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 activities of the group continued to be that of wholesale and retail trading of pharmaceutical products, the research, development and sale of medical devices and consumables.

 

The principal activity of the company continued to be that of a holding company.

Results and dividends

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

During the year ordinary dividends were paid amounting to £412,000 (2023: £476,390). The directors do not recommend payment of a further 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
Principle risks and uncertainties

The strategic report contains details of the principle risks and uncertainties which are faced by the group.

Future developments

The group continues to build and develop teams across all departments.

 

The directors are confident about the future prospects for the group, having undertaken a review of the group'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.

SKYNET LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 4 -
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 group and company, and of the profit or loss of the group 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 group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Statement of disclosure to auditor

Each of the persons who is a director at the date of approval of this report confirms that:

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

We have audited the financial statements of Skynet Ltd (the ‘parent company’) and its subsidiaries (the ‘group’) for the year ended 29 February 2024 which comprise group statement of comprehensive income, group and company balance sheets, group and company statement of changes in equity, group statement of cash flows and net funds and debt, 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 group and the parent 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 group's and the parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in 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.

SKYNET LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SKYNET LTD
- 6 -

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors’ report.

 

We have nothing to report in respect of the following matters in relation to which 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 5, 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 group’s and the parent company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so.

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 group and the parent company and their 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.

SKYNET LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SKYNET LTD
- 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 consideration of investment impairment, 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
SKYNET LTD
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
34,564,068
37,305,269
Cost of sales
(28,983,728)
(32,037,620)
Gross profit
5,580,340
5,267,649
Administrative expenses
(5,075,190)
(4,914,122)
Other operating income
3
5,231
17,360
Operating profit
7
510,381
370,887
Share of profits of associates
16
48,067
59,945
Interest receivable and similar income
8
3,845
2,397
Interest payable and similar expenses
9
(54,110)
(39,638)
Profit before taxation
508,183
393,591
Tax on profit
10
(102,303)
(45,063)
Profit and total comprehensive income for the financial year
405,880
348,528
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the financial year is all attributable to the owners of the parent company.

 

The group 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 group statement of comprehensive income.

The notes on pages 14 to 29 form part of these financial statements.

SKYNET LTD
GROUP BALANCE SHEET
AS AT
29 FEBRUARY 2024
29 February 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
12
265,993
245,068
Tangible assets
13
346,523
375,747
Investments
16
365,211
317,144
977,727
937,959
Current assets
Stocks
17
2,893,781
3,177,474
Debtors
18
1,691,902
886,862
Cash at bank and in hand
1,268,029
1,761,605
5,853,712
5,825,941
Creditors: amounts falling due within one year
19
(5,997,675)
(5,538,883)
Net current (liabilities)/assets
(143,963)
287,058
Total assets less current liabilities
833,764
1,225,017
Creditors: amounts falling due after more than one year
20
(380,731)
(758,559)
Provisions for liabilities
Deferred tax liability
23
(86,631)
(93,936)
(86,631)
(93,936)
Net assets
366,402
372,522
Capital and reserves
Called up share capital
25
495,000
495,000
Merger reserve
26
(4,511,900)
(4,511,900)
Profit and loss reserves
26
4,383,302
4,389,422
Total equity
366,402
372,522
The financial statements were approved by the board of directors and authorised for issue on
7 November 2024
07 November 2024
and are signed on its behalf by:
Mr S H Bhojani
Director

The notes on pages 14 to 29 form part of these financial statements.

SKYNET LTD
COMPANY BALANCE SHEET
AS AT 29 FEBRUARY 2024
29 February 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Investments
16
4,588,507
4,588,507
Current assets
Debtors
18
280,792
281,514
Cash at bank and in hand
3,644
30,344
284,436
311,858
Creditors: amounts falling due within one year
19
(1,082,208)
(673,937)
Net current liabilities
(797,772)
(362,079)
Net assets
3,790,735
4,226,428
Capital and reserves
Called up share capital
25
495,000
495,000
Profit and loss reserves
26
3,295,735
3,731,428
Total equity
3,790,735
4,226,428

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £23,693 (2023 - £14,773 loss).

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:
07 November 2024
Mr S H Bhojani
Director
Company Registration No. 04357481

The notes on pages 14 to 29 form part of these financial statements.

SKYNET LTD
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 11 -
Share capital
Merger reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 March 2022
495,000
(4,511,900)
4,517,284
500,384
Year ended 28 February 2023:
Profit and total comprehensive income for the year
-
-
348,528
348,528
Dividends
11
-
-
(476,390)
(476,390)
Balance at 28 February 2023
495,000
(4,511,900)
4,389,422
372,522
Year ended 29 February 2024:
Profit and total comprehensive income for the year
-
-
405,880
405,880
Dividends
11
-
-
(412,000)
(412,000)
Balance at 29 February 2024
495,000
(4,511,900)
4,383,302
366,402

The notes on pages 14 to 29 form part of these financial statements.

SKYNET LTD
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 12 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 March 2022
495,000
4,222,591
4,717,591
Year ended 28 February 2023:
Loss and total comprehensive income for the year
-
(14,773)
(14,773)
Dividends
11
-
(476,390)
(476,390)
Balance at 28 February 2023
495,000
3,731,428
4,226,428
Year ended 29 February 2024:
Loss and total comprehensive income for the year
-
(23,693)
(23,693)
Dividends
11
-
(412,000)
(412,000)
Balance at 29 February 2024
495,000
3,295,735
3,790,735

The notes on pages 14 to 29 form part of these financial statements.

SKYNET LTD
GROUP STATEMENT OF CASH FLOWS, NET FUNDS AND DEBT
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 13 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
31
721,614
1,091,164
Interest paid
(54,110)
(39,638)
Income taxes (paid)/refunded
(22,349)
75,432
Net cash inflow from operating activities
645,155
1,126,958
Investing activities
Purchase of intangible assets
(270,949)
(256,079)
Purchase of tangible fixed assets
(75,446)
(66,043)
Proceeds on disposal of tangible fixed assets
-
3,000
Interest received
3,845
2,397
Net cash used in investing activities
(342,550)
(316,725)
Financing activities
Repayment of bank loans
(361,526)
(319,021)
Payment of finance leases obligations
(22,655)
(10,872)
Dividends paid to equity shareholders
(412,000)
(476,390)
Cash used in financing activities
(796,181)
(806,283)
Net (decrease)/increase in cash and cash equivalents
(493,576)
3,950
Cash and cash equivalents at beginning of year
1,761,605
1,757,655
Cash and cash equivalents at end of year
1,268,029
1,761,605
Analysis of change in net funds and debt
29 February 2024
Cash flows
1 March 2023
£
£
£
Cash at bank and in hand
1,268,029
(493,576)
1,761,605
Bank loans
(679,756)
(361,526)
(1,041,282)
Obligations under finance leases
(36,368)
(22,655)
(59,023)
551,905
(109,395)
661,300

The notes on pages 14 to 29 form part of these financial statements.

SKYNET LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 14 -
1
Accounting policies
Company information

Skynet Ltd (“the company”) is a private company limited by shares and incorporated in England and Wales. The registered office is 7 Prince William Road, Loughborough, England, LE11 5GU.

 

The group consists of Skynet Ltd and all of its subsidiaries.

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.

The 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 for parent company information presented within the consolidated financial statements:

1.2
Basis of consolidation

The consolidated financial statements incorporate those of Skynet Ltd and all of its subsidiary undertakings ("the group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.

 

The results of the group within these financial statements has been accounted for using merger accounting principles.

 

The parent company has applied the exemption contained in section 408 of the Companies Act 2006 and has not presented its individual statement of comprehensive income.

1.3
Going concern

After reviewing the group and company's forecasts and projections, the Directors have reasonable expectation that the group and company can remain a viable going concern for the foreseeable future. The group and company therefore continue to adopt the going concern basis in preparing these Financial Statements.

1.4
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods provided in the normal course of business, and is shown net of 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 dispatch 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.

SKYNET LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
1
Accounting policies
(Continued)
- 15 -
1.5
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

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 costs
33% straight line
1.6
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 and fittings
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 recognised in the profit and loss account.

1.7
Fixed asset investments

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

 

Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group's share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised released to the Statement of Comprehensive Income.

 

Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.

 

In the parent company financial statements, investments in associates are accounted for at cost less impairment.

1.8
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. Reversal of impairment losses are also recognised in the Statement of Comprehensive Income.

SKYNET LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
1
Accounting policies
(Continued)
- 16 -

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.9
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.

1.10
Financial instruments
Basic financial assets

Basic financial assets, which include debtors 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.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, finance leases and loans from fellow group companies 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 group's contractual obligations expire or are discharged or cancelled.

1.11
Taxation

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

SKYNET LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
1
Accounting policies
(Continued)
- 17 -
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.

1.12
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

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 group is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.13
Retirement benefits

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

1.14
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.

1.15
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.

SKYNET LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 18 -
2
Judgements and key sources of estimation uncertainty

In the application of the group’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.

Significant judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Assessing indicators of impairment

In assessing whether there have been any indicators of impairment of assets including fixed asset investments, the directors have considered both external and internal source of information such as market conditions, counterparty credit ratings and experience of recoverability. There have been no indicators of impairments identified during the current financial year.

Key sources of estimation uncertainty

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

3
Turnover and other revenue

Turnover is attributable to the principal activity of the group.

2024
2023
£
£
Turnover analysed by geographical market
UK
34,354,068
37,173,152
Rest of world
210,000
132,117
34,564,068
37,305,269
2024
2023
£
£
Other revenue
Grants received
-
193
Other
5,230
17,167
SKYNET LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 19 -
4
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
18,000
15,000
Audit of the financial statements of the company's subsidiaries
18,000
15,000
36,000
30,000
5
Employees

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

Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Administration
45
43
4
5
Operations
46
45
-
-
Management
4
4
4
4
Total
95
92
8
9

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
2,056,492
1,980,566
73,049
77,828
Social security costs
188,651
184,772
4
892
Pension costs
36,090
36,359
172
170
2,281,233
2,201,697
73,225
78,890
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
36,400
34,841
SKYNET LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 20 -
7
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Foreign exchange (gains)/losses
(49,340)
9,409
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
15,059
29,329
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
3,498
2,349
Other interest income
347
48
Total income
3,845
2,397
9
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank loans
51,449
37,853
Other finance costs:
Interest on finance leases
2,661
1,785
Total finance costs
54,110
39,638
10
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)
(13,806)
Total current tax
109,609
24,298
Deferred tax
Origination and reversal of timing differences
(7,306)
20,765
Total tax charge
102,303
45,063
SKYNET LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
10
Taxation
(Continued)
- 21 -

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
508,183
393,591
Expected tax charge based on the standard rate of corporation tax in the UK of 24.49% (2023: 19.00%)
124,464
74,782
Tax effect of expenses that are not deductible in determining taxable profit
5,532
5,653
Tax effect of income not taxable in determining taxable profit
(11,773)
(11,960)
Unutilised tax losses brought forward
-
0
(21,443)
Adjustments in respect of prior years
(15,754)
(13,806)
Differences between capital allowances and depreciation
25,636
19,424
Other reversing timing differences
(25,802)
(7,587)
Taxation charge
102,303
45,063

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.

11
Dividends
2024
2023
£
£
Final paid: 17.8p per share (2023 18.2p per share)
88,000
90,000
Interim paid: 65.5p per share (2023: 68.7p per share)
324,000
386,390
412,000
476,390
SKYNET LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 22 -
12
Intangible fixed assets
Group
IT software development costs
£
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
The company had no intangible fixed assets at 29 February 2024 or 28 February 2023.
13
Tangible fixed assets
Group
Fixtures and fittings
Motor vehicles
Total
£
£
£
Cost
At 1 March 2023
732,697
197,433
930,130
Additions
75,446
-
0
75,446
Disposals
-
0
(45,608)
(45,608)
At 29 February 2024
808,143
151,825
959,968
Depreciation
At 1 March 2023
459,277
95,106
554,383
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
527,241
86,204
613,445
Carrying amount
At 29 February 2024
280,902
65,621
346,523
At 28 February 2023
273,420
102,327
375,747
The company had no tangible fixed assets at 29 February 2024 or 28 February 2023.
SKYNET LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
13
Tangible fixed assets
(Continued)
- 23 -

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

Group
Company
2024
2023
2024
2023
£
£
£
£
Motor vehicles
44,915
67,382
-
0
-
0
14
Subsidiaries

Details of the company's subsidiaries at 29 February 2024 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Orderline Limited
7 Prince William Road, Loughborough LE11 5GU
Ordinary shares
100.00
Beamwave Limited
22a Prince William Road, Loughborough, LE11 5GU
Ordinary shares
100.00
Distrosys Ltd
7 Prince William Road, Loughborough LE11 5GU
Ordinary shares
100.00

The results of all of the company's subsidiaries are included within these financial statements.

 

As a parent company established under the law of the UK for the year ended 29 February 2024, Skynet Ltd took advantage of the exemption from audit under section 479A of the United Kingdom’s Companies Act 2006 relating to Distrosys Ltd (registered number 11529744) and Beamwave Limited (registered number 10066287) included in the consolidated accounts.

 

Skynet Ltd guarantees the liabilities of Distrosys Ltd and Beamwave Limited under section 479C of the Companies Act 2006 in respect of the financial year ended 29 February 2024.

 

15
Associates

Details of associates at 29 February 2024 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Imperial Midlands Limited
Flat 12, High Street, Desborough, Kettering, NN14 2QS
Ordinary shares
50
Hilton Pharmacy Ltd
Flat 12, High Street, Desborough, Kettering, NN14 2QS
Ordinary shares
50
16
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
14
-
0
-
0
4,512,112
4,512,112
Investments in associates
15
365,211
317,144
76,395
76,395
365,211
317,144
4,588,507
4,588,507
SKYNET LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
16
Fixed asset investments
(Continued)
- 24 -
Movements in fixed asset investments
Group
Shares in associates
£
Cost
At 1 March 2023
327,144
Increase in net assets
48,067
At 29 February 2024
375,211
Impairment
At 1 March 2023 and 29 February 2024
10,000
Carrying amount
At 29 February 2024
365,211
At 28 February 2023
317,144
Movements in fixed asset investments
Company
Shares in  subsidiaries and associates
£
Cost
At 1 March 2023 and 29 February 2024
4,598,507
Impairment
At 1 March 2023 and 29 February 2024
10,000
Carrying amount
At 29 February 2024
4,588,507
At 28 February 2023
4,588,507
17
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Finished goods and goods for resale
2,893,781
3,177,474
-
0
-
0

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.

SKYNET LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 25 -
18
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
589,957
209,515
-
0
62,058
Amounts owed by group undertakings
-
-
119,635
119,635
Other debtors
788,771
626,867
157,092
88,998
Prepayments and accrued income
313,174
50,480
4,065
10,823
1,691,902
886,862
280,792
281,514

Amounts due from group undertakings are interest free and repayable upon demand.

 

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

19
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans
22
311,470
319,091
-
0
-
0
Obligations under finance leases
21
23,923
22,655
-
0
-
0
Trade creditors
4,890,825
4,326,767
565
13,655
Amounts owed to group undertakings
-
0
-
0
919,839
397,223
Corporation tax payable
125,363
38,104
-
0
-
0
Other taxation and social security
63,913
97,947
3,150
12,829
Other creditors
387,072
548,889
149,177
242,074
Accruals and deferred income
195,109
185,430
9,477
8,156
5,997,675
5,538,883
1,082,208
673,937

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

20
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans
22
368,286
722,191
-
0
-
0
Obligations under finance leases
21
12,445
36,368
-
0
-
0
380,731
758,559
-
-
SKYNET LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 26 -
21
Finance lease obligations
Group
Company
2024
2023
2024
2023
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
23,923
22,655
-
0
-
0
In two to five years
12,445
36,368
-
0
-
0
36,368
59,023
-
-

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

22
Loans
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans
679,756
1,041,282
-
0
-
0
Payable within one year
311,470
319,091
-
0
-
0
Payable after one year
368,286
722,191
-
0
-
0

The bank loans are secured by an unlimited debenture secured against the assets of Order Line Limited.

23
Deferred taxation

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

Liabilities
Liabilities
2024
2023
Group
£
£
Accelerated capital allowances
86,631
93,936
The company has no deferred tax assets or liabilities.
Group
Company
2024
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
-
SKYNET LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
23
Deferred taxation
(Continued)
- 27 -

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.

24
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
36,090
36,359

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

Included within group creditors is a balance of £1,737 (2023: £7,231) in respect of contributions for the year ended 29 February 2024. Included within group debtors is a balance of £9,360 (2023: £nil) in respect of pension contributions prepaid in relation to the year ended 28 February 2025.

25
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A Shares of 10p each (2023: 10p each)
495,000
495,000
49,500
49,500
Ordinary B Shares of 10p each (2023: 10p each)
2,475,000
2,475,000
247,500
247,500
Ordinary C Shares of 10p each (2023: 10p each)
990,000
990,000
99,000
99,000
Ordinary D Shares of 10p each (2023: 10p each)
990,000
990,000
99,000
99,000
4,950,000
4,950,000
495,000
495,000

All classes of share in issue have voting, dividend and capital distribution rights.

 

A and D ordinary shares entitle the holder to one vote per share.

 

B Ordinary shares entitle the holder to one or two votes per share, dependent on the holder of the shares as detailed in the Articles of Association.

 

C Ordinary shares entitle the holder to two votes per share.

26
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.

 

Merger reserve

This reserve records the fair value of shares issued in excess of net assets on merger of the group.

SKYNET LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 28 -
27
Operating lease commitments
Lessee

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

Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
16,238
11,046
4,546
4,546
Between two and five years
35,843
36,608
6,062
10,608
In over five years
-
3,792
-
-
52,081
51,446
10,608
15,154
28
Related party transactions
Transactions with related parties

Group

 

During the year, the group paid rent totalling £30,000 (2023: £30,000) into a Self Invested Pension Plan operated independently for the benefit of the directors.

 

During the year, the group made sales to a business operated by a close family member of a director totalling £11,925 (2023: £12,974). At the year end £1,016 (2023: £571) was due to the group from this related party.

 

During the year, the group made advances totalling £264,019 (2023 £169,596) to close family members of the directors, and received repayments totalling £192,000 (2023: £267,249). At the year end £141,703 (2023: £213,722) was due to the close family members of the group.

 

During the year the group made advances totalling £162,046 (2023: £77,354) to various connected parties of the directors or the group, and received repayments of £22,000 (2023: £71,335). At the year end £339,313 (2023: £199,267) was due to the group.

 

The group has taken advantage of the exemptions available under paragraph 33.1A of FRS102, and accordingly does not disclose transactions between wholly owned subsidiaries of the group.

Company

 

During the year, the company paid rent totalling £30,000 (2023: £30,000) into a Self Invested Pension Plan operated independently for the benefit of the directors.

 

At the year end £85,000 (2023: £85,000) was due to the company from a company under the control of the directors.

 

During the year, the company made advances totalling £264,019 (2023: £169,596) to close family members of the directors, and received repayments totalling £192,000 (2023: £267,249). At the year end £141,703 (2023: £213,723) was due to the close family members of the directors.

SKYNET LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 29 -
29
Directors' transactions

During the year, the directors entered into the following transactions with the group:

 

During the year, the group made advances totalling £366,779 (2023: £455,365) to the directors. Interest of £347 (2023: £48) was charged by the group to directors in respect of overdrawn balances. During the year amounts repaid to the group by the directors totalled £220,000 (2023: £596,981). At the year end £47,317 was owed to the group by the directors (2023: £99,809 was due to the directors from the group).

 

During the year, the directors entered into the following transactions with the company:

 

During the year, the company made advances totalling £308,909 (2023: £337,260) to the directors and received repayments totalling £220,000 (2023: £276,445) from the directors. Interest of £347 (2023: £48) was charged on overdrawn loan accounts. At the year end £68,094 was due to the company from the directors (2023: £21,162 was due to the company from the directors).

Dividends totalling £220,000 (2023 - £252,390) were paid in the year in respect of shares held by the company's directors.

30
Controlling party

The ultimate controlling parties are Mr M R and Mrs A Bhojani by virtue of their controlling share in the company.

31
Cash generated from group operations
2024
2023
£
£
Profit for the year after tax
405,880
348,528
Adjustments for:
Share of results of associates and joint ventures
(48,067)
(59,945)
Taxation charged
102,303
45,063
Finance costs
54,110
39,638
Investment income
(3,845)
(2,397)
Gain on disposal of tangible fixed assets
-
(3,000)
Amortisation of intangible assets
250,024
228,265
Depreciation of tangible fixed assets
104,670
102,231
Movements in working capital:
Decrease/(increase) in stocks
283,693
(1,708,851)
(Increase)/decrease in debtors
(805,040)
249,091
Increase in creditors
377,886
1,852,541
Cash generated from operations
721,614
1,091,164
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