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Sage Accounts Production Advanced 2023 - FRS102_2023
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7,578
7,578
4,522,481
216,411
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COMPANY REGISTRATION NUMBER:
NI011994
Financial Statements for the Year Ended |
|
Year ended 29 February 2024
Officers and professional advisers |
1 |
|
|
Independent auditor's report to the members |
13 |
|
|
Statement of comprehensive income |
17 |
|
|
Statement of financial position |
18 |
|
|
Statement of changes in equity |
19 |
|
|
Statement of cash flows |
20 |
|
|
Notes to the financial statements |
21 |
|
|
Officers and Professional Advisers |
|
The board of directors |
MR JH CORRY BBS (Hons) |
|
MRS MA HILL |
|
MR WA CORRY |
|
|
Company secretary |
JOHN CORRY |
|
|
Registered office |
Unit 3 Dunmurry Industrial Estate |
|
Derriaghy |
|
BT17 9HU |
|
|
Auditor |
Grant Thornton (NI) LLP |
|
Chartered accountants & statutory auditor |
|
12-15 Donegall Square West |
|
Belfast |
|
Northern Ireland |
|
BT1 6JH |
|
|
Bankers |
Bank of Ireland |
|
1 Donegal Square South |
|
BELFAST |
|
BT1 5LR |
|
|
Solicitors |
CLEAVER FULTON RANKIN |
|
50 Bedford Street |
|
Belfast |
|
BT2 7FW |
|
|
Year ended 29 February 2024
The directors present their strategic report for the year ended 29 February 2024. Business Review and Future Developments The company's principal activity during the year continued to be the retailing of soft furnishings and furniture. The company operates stores in both the UK and ROI. The directors' objectives are to increase the sales of the company and to improve gross profit by refining and developing the branch format and the online format and by investing in staff training and development. The company has maintained its training systems and the directors consider administrative staff numbers and sales and distribution staff numbers together with staff turnover to be at a satisfactory level. Financial and other key performance indicators The key performance indicators ("KPI"s) for the company are turnover, gross profit margin and operating profit:
|
KPI's 2024 2023 |
|
£'000 £'000 |
|
Turnover 54,911 52,046 |
|
Gross Profit 32,427 30,560 |
|
Operating Profit 1,425 2,241 |
|
Profit Before Taxation 1,763 2,267 |
|
Gross Profit Margin 59.05% 58.72% |
|
Average headcount 701 706 |
|
|
A new store was opened half way through the year coupled with an increase in the marketing spend resulted in an increase in turnover of 5.50% (2023: increase of 4.07%). A weaker US dollar and reducing freight costs made purchases less expensive whilst a slightly stronger Euro had a positive impact on sales and this resulted in a modest increase in gross margins of 0.34% (2022: decrease of 1.39%). The profits were down on the previous year. The increase in sales due the additional store and the increased marketing spend was offset by the increase in operating costs. The average headcount has decreased. The company opened one store during this financial year. Principal risks and uncertainties The Company's strategy is to follow an appropriate risk policy, which effectively manages exposures related to the achievement of business objectives. The key risks which management face are detailed as follows: Business performance risk Business performance risk is the risk that the company may not perform as expected either due to internal factors or due to competitive pressures in the local and international markets in which it operates. This risk is managed through a number of measures: ensuring the appropriate management team is in place; budget and business planning; monthly reporting and variance analysis; financial controls; key performance indicators; and regular forecasting. Business continuity risk The Company ensures that there is adequate knowledge throughout the management team and sufficient IT support available should an unforeseen event occur. Management are continually implementing and reviewing business continuity and IT disaster recovery plans to ensure any increase in risk arising from future activities is managed. Health and safety risk The Company is committed to ensuring a safe working environment. These risks are managed by the company through the strong promotion of a health and safety culture, extensive safety training and well-defined health and safety policies. Financial and business control Strong financial and business controls are necessary to ensure the integrity and reliability of financial and other information on which the company relies for day to day operations, external reporting and for longer term planning. The Company exercises financial and business control through a combination of: qualified and experienced financial personnel; performance analysis; budgeting and cash flow forecasting; and clearly defined approval limits. Environmental risk Due to the nature of its processing activities, the company has established clearly defined policies and procedures to enable compliance with environmental best practice and legislation. The Company is committed to protecting the environment in which it conducts its business activities. Supply chain pressures & price increases The directors acknowledge the risks posed by the supply chain pressures, energy costs and price increases. Due to limited impact on the Company's business the Directors see no need for additional measures. The company will keep the situation under daily review and will take all necessary measures to maintain the viability of the business during and after the situation is resolved. Economic Risk The high level of employment in the wider economy is causing a skills shortage and making it difficult to recruit. UK Exit from the European Union The UK's ongoing exit from the European Union has several potential impacts in the areas of economic and regulatory environment; import of goods due to currency exchange volatility and increased import duties; and potentially as yet unknown impacts depending upon the final terms of the NI Protocol. The Company has sought advice from advisors and government in relation to changes in duty/vat tariffs and the frictionless movement of goods from the UK to Ireland and vice versa. The position is not yet settled due to the ongoing negotiations between the UK and the EU. The position is being constantly monitored and reviewed and we have a team in place to take all necessary measures to ensure that the company is in a position to react and respond effectively to the final position on the NI Protocol. Financial risk management The Company's principal financial instruments comprise cash, trade debtors and creditors, company indebtedness and certain other debtors and accruals. The main risks associated with these financial assets and liabilities are set out below. Foreign currency risk The Company has exposure to foreign currency risk due to US Dollar payables and Euro receivables. Active daily monitoring of the respective currencies, consultation with, and advice from, financial institutions and forward planning mitigates the risk. Credit risk There is no significant credit risk as the Company operates on a cash sale and prepayment basis. Liquidity risk The Company maintains regular contact with its bankers and utilises on line banking systems to monitor cash flow performance. The directors meet on a regular basis to monitor sales performance and assess cash requirements. Interest rate risk The Company has exposure to interest rate risk. Active monitoring, planning and consultation with financial institutions manage the risk. Inflation Risk Cost inflation during the financial year was high and unpredictable and the future level of inflation remains uncertain. The Company maintains regular forecasts to ensure areas affected by cost increases are identified so mitigating action can be taken. The Company is working with customers, suppliers and employees to mitigate the impact of increasing costs. Market risk The Company manages market risk, market presence and penetration by constant monitoring of product pricing, availability and sales performance together with that of its competitors. Section 172 statement, stakeholders, director responsibilities This section describes how the directors have had regard to the matters set out in section 172(1)(a) to (f) Companies Act 2006 in exercising their duty to promote the success of the Company for the benefit of its members as a whole. The directors received internal training to remind them of their duties and put the Board in a position where it could purposefully apply section 172 throughout the 2023/24 financial year. Our stakeholders The directors consider that the following groups are the Company's key stakeholders: shareholders, customers, suppliers, regulators, communities. The Board seeks to understand the respective interests of such stakeholder groups so that these may be properly considered in the Board's decisions. We do this through various methods, including: direct engagement by Board members; and receiving reports and updates from members of management who engage with such groups. Having regard to the likely consequences of any decision in the long term Within the fast-moving retailing sector, the operational cycle is short and has become even shorter within recent years. Despite this, the Board remains mindful that its strategic decisions can have long term implications for the business and its stakeholders, and these implications are carefully assessed. The most prevalent example of this is in the Board's decisions with regard to capital allocation. During the year, in approving the Company's budget the Board balanced: 1) the need for capital expenditure on new and existing stores, additional warehouse space, brand new fuel efficient trucks and update systems to support operational performance; with 2) a desire to protect short term cashflow and thus remain resilient to risks Section 172 statement, stakeholders, director responsibilities (continued) Having regard to the interests of the Company's employees The Board takes active steps to ensure that the suggestions, views and interests of the workforce are captured and considered in our decision-making.
Harry Corry Ltd
benefits from having a board of directors who founded the Company and, have acted as directors for over 40 years. They all therefore perform a high degree of personal oversight and engagement in the company's affairs. This knowledge of the business and active style of engagement means our directors maintain an exceptionally acute insight into the mood, culture and views of the workforce, which they are then able to take into account when making decisions. Employee engagement Harry Corry Ltd
has a number of effective workforce engagement mechanisms in place across the Group: 1) Employees are kept informed of performance and strategy through regular presentations and updates from members of the Board; and 2) There are weekly online meetings between store managers and key managers from head office to share ideas and to raise issues and challenges that are being faced so that they can be resolved efficiently and effectively. The Board considers that, taken together, these arrangements deliver an effective means of ensuring the Board stays alert to the views of the workforce. With regard to health, safety and wellbeing, during the year the Board receives regular updates from the Health and Safety Manager including on safety performance, safety risk management and mental health wellbeing initiatives. Having regard to the need to foster the Company's business relationships with suppliers, customers and others Suppliers Throughout the year the Board was briefed on major contract renegotiations and strategy with regard to key suppliers. The Board seeks to balance the benefits of maintaining strong partnering relationships with key suppliers alongside the need to obtain value for money for our investors and the desired quality and service levels for our customers. Customers As a large retail business, the sentiment of customers can be seen in the Company's underlying sales performance figures, which the Board reviews regularly. Store managers provide weekly updates to the Board on their perceptions of consumer sentiment and the market view. The interests of customers are considered in key decisions e.g. relating to: store portfolio changes; selection of product lines including third-party brands; selection and monitoring of suppliers to ensure quality and safety standards are met; freight and logistics arrangements to maximise efficiencies from order to delivery; the availability of customer credit products; and the development of the Online Platform. With the interests of customers in mind, during the year the Board reviewed proposals in respect of: store closures and new openings; capital expenditure on stores and warehouses; capital expenditure on a new website and major freight forwarding and parcel delivery contracts. Regulators Harry Corry Ltd
manages its tax affairs responsibly and proactively to comply with tax legislation. The Company's approach is to seek to build solid and constructive working relationships with all tax authorities. The Company engages with HMRC constructively, honestly and in a timely and professional manner, and seeks to resolve disputed matters through active and transparent engagement. Having regard to the impact of the Company's operations on the community and the environment The Board supports the Company's goals and initiatives with regard to reducing adverse impacts on the environment and supporting the communities that it touches. The Board intends to give further consideration in 2024/2025 to the Company's approach to climate change and further measures we can take to contribute to the reduction of our impact on the environment.
This report was approved by the board of directors on 15 November 2024 and signed on behalf of the board by:
MR JH CORRY BBS (Hons) |
Director |
|
Year ended 29 February 2024
The directors present their report and the financial statements of the company for the year ended
29 February 2024
.
Principal activities
The company's principal activity during the year continued to be the retailing of soft furnishings and furniture
.
Directors
The directors who served the company during the year were as follows:
MR JH CORRY BBS (Hons) |
|
MRS MA HILL |
|
MR WA CORRY |
|
|
|
Results and dividends
The profit for the year, after taxation, amounted to £1,310,886 (2023 - profit of £1,846,263). The directors recommended and paid a final dividend of £
1,000,000
(2023 - £ 2,000,000
).
Going concern
The company's business activities, together with the factors likely to affect its future development, performance and position are set out in the business review on pages 2 - 6. The financial position of the company, its cash flows, liquidity position and borrowings are contained on pages 17 - 34.
The directors believe that the company can manage its business risks successfully despite the current, and continuing, uncertain economic outlook.
The soft furnishings retail market continues to be challenging due to the supply chain issues and increased raw material costs, the ongoing skills shortage, significant competition in the retail sector and continued pressure on consumers. The Directors acknowledge the continued risk of volatility of raw materials prices and supply, from the ongoing conflict in the Middle East, supply chain pressures, energy costs and price increases. Having reviewed current performance, forecasts, cost reduction plans, and funding position the Directors have a reasonable expectation that the company will continue in operational existence for the foreseeable future. Thus, they continue to adopt the going concern basis of accounting in preparing the annual financial statements.
Streamlined energy and carbon reporting
|
Unit |
2024 |
2023 |
Emissions resulting from activities for which the company is responsible |
tCO2e |
722 |
724 |
|
|
---- |
---- |
Total emissions |
tCO2e |
722 |
724 |
Total energy consumption |
kWh |
3,329,183 |
3,351,569 |
Intensity metric - kgCO2e/sq ft |
|
1.88 |
1.96 |
|
|
------------ |
------------ |
|
|
|
|
Methodologies for energy and emissions calculations
Explanation Methodology used in the calculation of disclosures ESOS methodology (as specified in Complying with the Energy Savings Opportunity Scheme version 6, published by the Environment Agency 28/10/2019) used in conjunction with Government GHG reporting conversion factor *The figures for 2022/23 have been restated as a result of more accurate and in-depth analysis of transport fuel consumption.
Principal measures taken to increase energy efficiency
We are committed to responsible energy management and will practice energy efficiency throughout our organisation, wherever it is cost effective. We recognize that climate change is one of the most serious environmental challenges currently threatening the global community and we understand we have a role to play in reducing greenhouse gas emissions. We have implemented the policies below for the purpose of increasing the businesses energy: efficiency in the relevant financial year. -Upgraded and replaced air-con units to more energy efficient units -Lighting upgrades and replacements completed where necessary. -Increased availability and encouraged use of video conferencing. -Reduced travel (air and road) costs by reducing number of face to face meetings with clients and suppliers. -Further installations of destratification fans across sites to improve energy efficiency. -Replacement of older trucks in company fleet with newer, more efficient models. -Continued monitoring of solar panel installation in our head office as an initiative towards sourcing of renewable energy. -Update company intranet functionality to facilitate for meter readings to be recorded and reviewed on a more frequent basis. The following energy efficiency measures are under consideration for implementation during 2025: - Continue to update lighting to LED and add light sensors to all sites. - Continue to update air con units in all sites - Implement ESOS Phase 3 findings where appropriate and work towards these goals for ESOS phase 4. - Continue to install destratification fans throughout stores - Replace older tractor units with more modern, fuel efficient tractor units. - Increase use and implementation of OWL meters to more closely monitor energy use
Employment of disabled persons
Applications for employment by disabled persons are always fully considered, bearing in mind the respective aptitudes and abilities of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment with the company continues and the appropriate training is arranged. It is the policy of the company that the training, career development and promotion of a disabled person should, as far as possible, be identical to that of a person who does not suffer from a disability.
Employee involvement
Consultation with employees or their representatives has continued at all levels, with the aim of ensuring that views are taken into account when decisions are made that are likely to affect their interests and that all employees are aware of the financial and economic performance of the company.
Events since the statement of financial position date
Particulars of events after the reporting date are detailed in note 29 to the financial statements.
Disclosure of information in the strategic report
In accordance with 7.1A of "Large and Medium-Sized Companies and Groups (Accounts and Reports) Regulations 2008", the Company has elected to disclose the following directors report information in the strategic report: Business Review and future developments; Principal activities Principal risks and uncertainties; Financial and other key performance indicators; and S172 Reporting
Directors' responsibilities statement
The Directors are responsible for preparing the Strategic report, the Directors' report and the financial statements in accordance with applicable law and regulations. Company law requires the Directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law) including Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland". Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: - select suitable accounting policies in accordance with Section 10 of FRS 102 and then apply them consistently; - make judgements and accounting estimates that are reasonable and prudent; - present information, including accounting policies, in a manner that provides relevant, reliable, comparable and understandable information; - provide additional disclosures when compliance with the specific requirements in FRS 102 is insufficient to enable users to understand the impact of particular transactions, other events and conditions on the company financial position and financial performance; - in respect of the financial statements, state whether FRS 102 has been followed, subject to any material departures disclosed and explained in the financial statements; and - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. The Directors are responsible for keeping proper 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. Under applicable law and regulations, the directors are also responsible for preparing a Strategic Report and a Directors' Report, that comply with that law and those regulations.
Disclosure of information to auditors
Each of the persons who are Directors at the time when this Directors' report is approved has confirmed that: - so far as that the Directors are aware, there is no relevant audit information of which the company's auditors are unaware, and - that the Directors have taken all the steps that ought to have been taken as a Director in order to be aware of any relevant audit information and to establish that the company's auditors are aware of that information.
Auditors
The auditors, Grant Thornton (NI) LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board of directors on
15 November 2024
and signed on behalf of the board by:
MR JH CORRY BBS (Hons) |
Director |
|
Independent Auditor's Report to the Members of
Harry Corry Ltd |
|
Year ended 29 February 2024
Opinion
We have audited the financial statements of Harry Corry Limited, which comprise the Statement of comprehensive income, the Balance sheet, the Statement of changes in equity for the year ended 29 February 2024, and the related notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in the preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). In our opinion, Harry Corry Limited's financial statements: - give a true and fair view in accordance with United Kingdom Generally Accepted Accounting Practice of the assets, liabilities and financial position of the Company as at 29 February 2024 and of its financial performance for the year then ended; and - have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) ('ISAs (UK)') and applicable law. Our responsibilities under those standards are further described in the 'Responsibilities of the auditor 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 United Kingdom, namely the FRC's Ethical Standard and the ethical pronouncements established by Chartered Accountants Ireland, applied as determined to be appropriate in the circumstances of the entity. 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 the date 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
Other information comprises the information included in the Annual Report, other than the financial statements and our Auditors' report thereon, including the Directors' report. The directors are responsible for the other information. Our opinion on the financial statements does not cover the information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies in the financial statements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
-
the information given in the Directors' report for the year for which the financial statements are prepared is consistent with the financial statements, and
-
the Directors' report has been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment we have obtained in the course of the audit, we have not identified material misstatements in 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: - adequate accounting records have not been kept or returns adequate for our audit have not been received from branches not visited by us; or - the financial statements are not in agreement with the accounting records and returns; or - certain disclosures of directors' remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit. - the directors were not entitled to take advantage of the small companies' exemption from the requirements to prepare a Strategic Report.
Responsibilities of management and those charged with governance for the financial statements
Management is responsible for the preparation of the financial statements which give a true and fair view in accordance with United Kingdom Generally Accepted Accounting Practice, including FRS102 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, management is 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 management either intend to liquidate the Company or to cease operations, or has no realistic alternative but to do so. Those charged with governance are responsible for overseeing the Company's financial reporting process.
Responsibilities of the auditor for the audit of the financial statements
The objectives of an auditor 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 Auditors' report that includes their opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. A further description of an auditor's 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. Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud 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. Owing to the inherent limitations of an audit, there is an unavoidable risk that material misstatement in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with ISAs (UK). The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below: Based on our understanding of the company and industry, we identified that the principal risks of non compliance with laws and regulations related to Data Privacy Laws, Employment Laws and Health and Safety laws, and we considered the extent to which non compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as Companies Act 2006 and applicable tax laws. The Audit engagement partner considered the experience and expertise of the engagement team to ensure that the team had appropriate competence and capabilities to identify or recognise non-compliance with the laws and regulations. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries to manipulate financial performance and management bias through judgments and assumptions in significant accounting estimates, in particular in relation to significant one off or unusual transactions. We apply professional scepticism through the audit to to consider potential deliberate omission or concealment of significant transactions, or incomplete/inaccurate disclosures in the financial statements. In response to these principal risks, our audit procedures included but were not limited to: - inquiries of management on the policies and procedures in place regarding compliance with laws and regulations, including consideration of known or suspected instances of non-compliance and whether they have knowledge of any actual, suspected or alleged fraud; - inspection of the company's regulatory and legal correspondence and review of minutes of the board of directors meetings during the year to corroborate inquiries made; - gaining an understanding of the internal controls established to mitigate risk related to fraud; - discussion amongst the engagement team in relation to the identified laws and regulations and regarding the risk of fraud, and remaining alert to any indications of non compliance or opportunities for fraudulent manipulation of financial statements throughout the audit; - identifying and testing journal entries to address the risk of inappropriate journals and management override of controls; - designing audit procedures to incorporate unpredictability around the nature, timing or extent of our testing; - challenging assumptions and judgements made by management in their significant accounting estimates, including estimating an allowance for the impairment of debtors and stock; and - review of the financial statement disclosures to underlying supporting documentation and inquiries of management. The primary responsibility for the prevention and detection of irregularities including fraud rests with those charged with governance and management. As with any audit, there remains a risk of non detection or irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or override of internal control
The purpose of our audit work and to whom we owe our responsibilities
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.
Louise Kelly FCA |
(Senior Statutory Auditor) |
|
For and on behalf of |
Grant Thornton (NI) LLP |
Chartered accountants & statutory auditor |
12-15 Donegall Square West |
Belfast |
Northern Ireland |
BT1 6JH |
|
15 November 2024
Statement of Comprehensive Income |
|
Year ended 29 February 2024
|
2024 |
2023 |
|
|
(restated) |
Note |
£ |
£ |
Turnover |
4 |
54,910,522 |
52,046,388 |
|
|
|
|
Cost of sales |
(
22,483,791) |
(
21,486,887) |
|
------------- |
------------- |
Gross profit |
32,426,731 |
30,559,501 |
|
|
|
Distribution costs |
(
22,470,091) |
(
20,158,613) |
Administrative expenses |
(
8,625,373) |
(
8,230,011) |
Other operating income |
5 |
93,386 |
70,571 |
|
|
------------- |
------------- |
Operating profit |
6 |
1,424,653 |
2,241,448 |
|
|
|
|
Other interest receivable and similar income |
10 |
358,087 |
25,823 |
Interest payable and similar expenses |
11 |
(
19,683) |
(
6) |
|
------------- |
------------- |
Profit before taxation |
1,763,057 |
2,267,265 |
|
|
|
|
Tax on profit |
12 |
(
452,171) |
(
421,002) |
|
------------ |
------------ |
Profit for the financial year |
1,310,886 |
1,846,263 |
|
------------ |
------------ |
|
|
|
|
All the activities of the company are from continuing operations.
The company has no other recognised items of income and expenses other than the results for the year as set out above.
Statement of Financial Position |
|
29 February 2024
|
2024 |
2023 |
|
|
|
(restated) |
Note |
£ |
£ |
£ |
|
|
|
|
Fixed assets
Tangible assets |
14 |
|
4,332,909 |
4,167,744 |
Investments |
15 |
|
7,578 |
7,578 |
|
|
------------ |
------------ |
|
|
4,340,487 |
4,175,322 |
|
|
|
|
|
Current assets
Stocks |
16 |
10,501,619 |
|
12,688,119 |
Debtors |
17 |
4,920,072 |
|
4,056,664 |
Cash at bank and in hand |
14,440,910 |
|
12,203,540 |
|
------------- |
|
------------- |
|
29,862,601 |
|
28,948,323 |
|
|
|
|
|
Creditors: amounts falling due within one year |
18 |
8,119,941 |
|
7,567,795 |
|
------------- |
|
------------- |
Net current assets |
|
21,742,660 |
21,380,528 |
|
|
------------- |
------------- |
Total assets less current liabilities |
|
26,083,147 |
25,555,850 |
|
|
|
|
|
Provisions |
19 |
|
(
4,738,892) |
(
4,522,481) |
|
|
------------- |
------------- |
Net assets |
|
21,344,255 |
21,033,369 |
|
|
------------- |
------------- |
|
|
|
|
|
Capital and reserves
Called up share capital |
23 |
|
200,000 |
200,000 |
Profit and loss account |
24 |
|
21,144,255 |
20,833,369 |
|
|
------------- |
------------- |
Shareholders funds |
|
21,344,255 |
21,033,369 |
|
|
------------- |
------------- |
|
|
|
|
|
These financial statements were approved by the
board of directors
and authorised for issue on
15 November 2024
, and are signed on behalf of the board by:
MR JH CORRY BBS (Hons) |
Director |
|
Company registration number:
NI011994
Statement of Changes in Equity |
|
Year ended 29 February 2024
|
Called up share capital |
Profit and loss account |
Total |
|
£ |
£ |
£ |
At 1 March 2022 |
200,000 |
20,987,106 |
21,187,106 |
|
|
|
|
Profit for the year |
|
1,846,263 |
1,846,263 |
|
--------- |
------------- |
------------- |
Total comprehensive income for the year |
– |
1,846,263 |
1,846,263 |
|
|
|
|
Dividends paid and payable |
13 |
– |
(
2,000,000) |
(
2,000,000) |
|
--------- |
------------- |
------------- |
Total investments by and distributions to owners |
– |
(
2,000,000) |
(
2,000,000) |
|
|
|
|
At 28 February 2023 |
200,000 |
20,833,369 |
21,033,369 |
|
|
|
|
Profit for the year |
|
1,310,886 |
1,310,886 |
|
--------- |
------------- |
------------- |
Total comprehensive income for the year |
– |
1,310,886 |
1,310,886 |
|
|
|
|
Dividends paid and payable |
13 |
– |
(
1,000,000) |
(
1,000,000) |
|
---- |
------------ |
------------ |
Total investments by and distributions to owners |
– |
(
1,000,000) |
(
1,000,000) |
|
|
|
|
|
--------- |
------------- |
------------- |
At 29 February 2024 |
200,000 |
21,144,255 |
21,344,255 |
|
--------- |
------------- |
------------- |
|
|
|
|
|
Year ended 29 February 2024
|
2024 |
2023 |
|
|
(restated) |
Note |
£ |
£ |
Net Income from operating activities |
25 |
4,452,725 |
4,861,116 |
|
|
|
|
Interest paid |
(
19,683) |
(
6) |
Interest received |
358,087 |
25,823 |
Tax paid |
(
262,438) |
(
945,140) |
|
------------ |
------------ |
Net cash from operating activities |
4,528,691 |
3,941,793 |
|
------------ |
------------ |
|
|
|
Cash flows from investing activities
Purchase of tangible assets |
(
1,309,493) |
(
1,159,941) |
Proceeds from sale of tangible assets |
18,172 |
37,488 |
|
------------ |
------------ |
Net cash used in investing activities |
(
1,291,321) |
(
1,122,453) |
|
------------ |
------------ |
|
|
|
Cash flows from financing activities
Dividends paid |
(
1,000,000) |
(
2,000,000) |
|
------------ |
------------ |
Net cash used in financing activities |
(
1,000,000) |
(
2,000,000) |
|
------------ |
------------ |
|
|
|
Net increase in cash and cash equivalents |
2,237,370 |
819,340 |
Cash and cash equivalents at beginning of year |
12,203,540 |
11,384,200 |
|
------------- |
------------- |
Cash and cash equivalents at end of year |
14,440,910 |
12,203,540 |
|
------------- |
------------- |
|
|
|
Notes to the Financial Statements |
|
Year ended 29 February 2024
1.
General information
The principal activity of
Harry Corry Ltd
is the retailing of soft furnishings and furniture. The company is a private company limited by shares, registered in Northern Ireland. The address of the registered office is Unit 3 Dunmurry Industrial Estate, Derriaghy, BT17 9HU.
2.
Statement of compliance
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.
3.
Accounting policies
3.1
Basis of preparation
The company's financial statements have been prepared in compliance with Financial Reporting Standard FRS 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland as per the Companies Act 2006, as it applies to the financial statements of the company for the year ended 29 February 2024. The financial statements have been prepared under the historical cost convention and in accordance with applicable accounting standards.
The accounts are presented in Sterling (£) with all values rounded to the nearest £1 except where otherwise indicated.
3.2
Functional and presentation currency
The Company's functional and presentational currency is GBP. Transactions and balances Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.
At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.
Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.
3.3
Going concern
The soft furnishings retail market continues to be challenging due to the supply chain issues and increased raw material costs, the ongoing skills shortage, significant competition in the retail sector and continued pressure on consumers. The Directors acknowledge the continued risk of volatility of raw materials prices and supply, from the ongoing conflict in the Middle East, supply chain pressures, energy costs and price increases. Having reviewed current performance, forecasts, cost reduction plans, and funding position the Directors have a reasonable expectation that the company will continue in operational existence for the foreseeable future. Thus, they continue to adopt the going concern basis of accounting in preparing the annual financial statements.
3.4
Cash
Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
3.5
Creditors
Short-term creditors are measured at the transaction price. Other financial liabilities, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
3.6
Tangible fixed assets and depreciation
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Such cost includes costs directly attributable to making the asset capable of operating as intended. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The carrying values of tangible fixed assets are reviewed for impairment when events or changes in circumstances indicate the carrying value may not be recoverable.
An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where the revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.
Depreciation is provided at rates calculated to write off the cost, less estimated residual value, of each asset over its expected useful life as follows:
Asset Type |
Rate |
Method |
Freehold property |
2% |
Straight Line |
Short term leasehold property |
10% |
Straight Line |
Motor vehicles |
25% |
Straight Line |
Fixtures & fittings |
12.5% |
Straight Line |
Computer equipment |
25% |
Straight Line |
|
|
|
3.7
Judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the period. However, the nature of estimation means that actual outcomes could differ from those estimates. The following are the company's key assumptions concerning the future, and other key sources of estimation uncertainty at the end of the reporting period, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the financial period:
Taxation
The company establishes provisions based on reasonable estimates, for possible consequences of audits by the tax authorities of the respective countries in which it operates. The amount of such provisions is based on various factors, such as experience with previous tax audits and differing interpretations of tax regulations by the taxable entity and the responsible tax authority. Management estimation is required to determine the amount of deferred tax assets that can be recognised, based upon likely timing and level of future taxable profits together with an assessment of the effect of future tax planning strategies. Details of the company's tax charge are contained in note 12
. Stock valuation In determining fair value
, stock is valued at the lower of cost and estimated net realisable value. There is a high percentage of stock is susceptible to fashion trends and management estimation is required to determine estimated net realisable value
. Lease dilapidation provisions
Provision is made over the life of the leases of shops for dilapidation reinstatement costs. The provision requires management's estimation of the cost of reinstatement.
Useful lives of tangible fixed assets The annual depreciation charge depends primarily on the estimated lives of each type of asset and, in certain circumstances, estimates of fair values and residual values. The directors annually review these asset lives and adjust them as necessary to reflect current thinking on remaining lives in light of technological change, prospective economic utilisation and physical condition of the assets concerned. Changes in asset lives can have significant impact on depreciation charges for the period. It is is not practical to quantify the impact of changes in asset lives on an overall basis, as asset lives are individually determined, and there are a significant number of asset lives in use. The impact of any change would vary significant depending on the individual changes in assets and the classes of assets impacted.
3.8
Revenue recognition
Revenue is recognised to the extent that the company obtains the right to consideration in exchange for its performance. Revenue is measured at the fair value of the consideration received, excluding discounts, rebates, VAT and other sales taxes or duty. The following criteria must also be met before revenue is recognised: Sale of goods Revenue 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 revenue can be measured reliably, it is probable that the associated economic benefits will flow to the entity, and the costs incurred or to be incurred in respect of the transactions can be measured reliably. Interest income Revenue is recognised as interest accrues using the effective interest method.
3.9
Current and deferred tax
The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively. The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income. Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that: - The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and - Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met. Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.
3.10
Operating leases: The company as lessee
Rentals under operating leases are charged to the profit and loss account on a straight line basis over the lease term. Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight line basis over the period until the end date of the lease.
3.11
Investments
Investments held as fixed assets are shown at cost less provision for impairment.
3.12
Stocks
Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow moving stocks. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads.
3.13
Government grants
Government grants are recognised at the fair value of the asset received or receivable. Grants are not recognised until there is reasonable assurance that the company will comply with the conditions attaching to them and the grants will be received. Government grants are recognised using the accrual model and the performance model. Under the accrual model, government grants relating to revenue are recognised on a systematic basis over the periods in which the company recognises the related costs for which the grant is intended to compensate. Grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs are recognised in income in the period in which it becomes receivable. Grants relating to assets are recognised in income on a systematic basis over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income and not deducted from the carrying amount of the asset. Under the performance model, where the grant does not impose specified future performance-related conditions on the recipient, it is recognised in income when the grant proceeds are received or receivable. Where the grant does impose specified future performance-related conditions on the recipient, it is recognised in income only when the performance-related conditions have been met. Where grants received are prior to satisfying the revenue recognition criteria, they are recognised as a liability.
3.14
Provisions
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.
3.15
Financial instruments
The company has chosen to adopt Sections 11 and 12 of FRS 102 in respect of financial instruments. (i) Financial assets Basic financial assets, including trade and other debtors and cash and bank balances are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at present value of the future receipts discounted at a market rate of interest. Such assets are subsequently carried at amortised cost using the effective interest method. At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset's original effective interest rate. The impairment loss is recognised in the statement of comprehensive income. If there is decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been had the impairment not previously been recognised. The impairment reversal is recognised in the statement of comprehensive income. Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) despite having retained some significant risks and rewards of ownership, control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions. (ii) Financial liabilities Basic financial liabilities, including trade and other payables 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. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. Trade payables are obligations to pay for goods or services that have been received in the ordinary course of business from suppliers. Trade payables are classified into amounts falling due within one year if payment is due within one year or less. If not, they are presented as amounts falling due after one year. Trade payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method. Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.
3.16
Defined contribution plans
The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations. The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the Company in in independently administered funds.
4.
Turnover
Turnover arises from:
|
2024 |
2023 |
|
|
(restated) |
|
£ |
£ |
Sale of goods |
54,910,522 |
52,046,388 |
|
------------- |
------------- |
|
|
|
Turnover represents the amount derived from the provision of goods and services which fall within the company's ordinary activities, stated net of value added tax. The company operates in one principal area of activity and turnover is attributable to continuing operations.
All turnover arose within the United Kingdom and Ireland.
5.
Other operating income
|
2024 |
2023 |
|
|
(restated) |
|
£ |
£ |
Rental income |
22,000 |
58,197 |
Government grant income |
71,386 |
12,374 |
|
-------- |
-------- |
|
93,386 |
70,571 |
|
-------- |
-------- |
|
|
|
Government grants include business grants claimed in United Kingdom and Republic of Ireland.
6.
Operating profit
Operating profit or loss is stated after charging/crediting:
|
2024 |
2023 |
|
|
(restated) |
|
£ |
£ |
Depreciation of tangible assets |
1,144,327 |
1,024,740 |
Gains on disposal of tangible assets |
(
18,172) |
(
24,359) |
Operating lease rentals |
6,445,016 |
6,098,498 |
Foreign exchange (gain)/loss |
(
310,429)
|
(
371,188)
|
|
------------ |
------------ |
|
|
|
7.
Auditor's remuneration
|
2024 |
2023 |
|
|
(restated) |
|
£ |
£ |
Fees payable for the audit of the financial statements |
25,850 |
24,134 |
|
-------- |
-------- |
|
|
|
8.
Staff costs
The average number of persons employed by the company during the year, including the directors, amounted to:
|
2024 |
2023 |
|
No. |
No. |
Distribution staff |
562 |
571 |
Management staff |
139 |
135 |
|
---- |
---- |
|
701 |
706 |
|
---- |
---- |
|
|
|
The aggregate payroll costs incurred during the year, relating to the above, were:
|
2024 |
2023 |
|
|
(restated) |
|
£ |
£ |
Wages and salaries |
12,574,525 |
11,805,166 |
Social security costs |
1,102,716 |
1,072,982 |
Other pension costs |
462,964 |
109,548 |
|
------------- |
------------- |
|
14,140,205 |
12,987,696 |
|
------------- |
------------- |
|
|
|
9.
Directors' remuneration
The directors' aggregate remuneration in respect of qualifying services was:
|
2024 |
2023 |
|
|
(restated) |
|
£ |
£ |
Remuneration |
293,492 |
293,492 |
|
--------- |
--------- |
|
|
|
Remuneration of the highest paid director in respect of qualifying services:
|
2024 |
2023 |
|
|
(restated) |
|
£ |
£ |
Aggregate remuneration |
101,055 |
101,055 |
|
--------- |
--------- |
|
|
|
10.
Other interest receivable and similar income
|
2024 |
2023 |
|
|
(restated) |
|
£ |
£ |
Interest on loans and receivables |
– |
3,277 |
Interest on cash and cash equivalents |
358,087 |
22,546 |
|
--------- |
-------- |
|
358,087 |
25,823 |
|
--------- |
-------- |
|
|
|
11.
Interest payable and similar expenses
|
2024 |
2023 |
|
|
(restated) |
|
£ |
£ |
Interest on banks loans and overdrafts |
19,683 |
6 |
|
-------- |
---- |
|
|
|
12.
Tax on profit
Major components of tax expense
Current tax:
UK current tax expense |
143,499 |
195,251 |
Adjustments in respect of prior periods |
1,759 |
– |
|
--------- |
--------- |
Total UK current tax |
145,258 |
195,251 |
|
|
|
Foreign current tax expense |
268,978 |
159,805 |
|
--------- |
--------- |
Total current tax |
414,236 |
355,056 |
|
--------- |
--------- |
|
|
|
Deferred tax:
Origination and reversal of timing differences |
37,935 |
65,946 |
|
--------- |
--------- |
Tax on profit |
452,171 |
421,002 |
|
--------- |
--------- |
|
|
|
Reconciliation of tax expense
The tax assessed on the profit on ordinary activities for the year is higher than (2023: lower than) the
standard rate of corporation tax in the UK
of
24.49
% (2023:
19
%).
|
2024 |
2023 |
|
|
(restated) |
|
£ |
£ |
Profit on ordinary activities before taxation |
1,763,057 |
2,267,265 |
|
------------ |
------------ |
Profit on ordinary activities by rate of tax |
431,804 |
430,780 |
Adjustment to tax charge in respect of prior periods |
1,760
|
– |
Effect of expenses not deductible for tax purposes |
519 |
221 |
Effect of capital allowances and depreciation |
(
5,641) |
(
8,430) |
Rounding on tax charge |
– |
15,827 |
Non qualifying depreciation |
23,140 |
(
17,396)
|
DTR Restriction |
589 |
– |
|
------------ |
------------ |
Tax on profit |
452,171 |
421,002 |
|
------------ |
------------ |
|
|
|
13.
Results and dividends
|
2024 |
2023 |
|
|
(restated) |
|
£ |
£ |
Dividends paid during the year (excluding those for which a liability existed at the end of the prior year ) |
1,000,000 |
2,000,000 |
|
------------ |
------------ |
|
|
|
14.
Tangible assets
|
Land and buildings |
Fixtures and fittings |
Motor vehicles |
Total |
|
£ |
£ |
£ |
£ |
Cost |
|
|
|
|
At 1 March 2023 (as restated) |
4,621,352 |
29,862,226 |
1,208,947 |
35,692,525 |
Additions |
57,984 |
859,176 |
392,332 |
1,309,492 |
Disposals |
– |
– |
(
126,475) |
(
126,475) |
|
------------ |
------------- |
------------ |
------------- |
At 29 February 2024 |
4,679,336 |
30,721,402 |
1,474,804 |
36,875,542 |
|
------------ |
------------- |
------------ |
------------- |
Depreciation |
|
|
|
|
At 1 March 2023 |
4,153,492 |
26,381,287 |
990,002 |
31,524,781 |
Charge for the year |
79,284 |
913,394 |
151,649 |
1,144,327 |
Disposals |
– |
– |
(
126,475) |
(
126,475) |
|
------------ |
------------- |
------------ |
------------- |
At 29 February 2024 |
4,232,776 |
27,294,681 |
1,015,176 |
32,542,633 |
|
------------ |
------------- |
------------ |
------------- |
Carrying amount |
|
|
|
|
At 29 February 2024 |
446,560 |
3,426,721 |
459,628 |
4,332,909 |
|
------------ |
------------- |
------------ |
------------- |
At 28 February 2023 |
467,860 |
3,480,939 |
218,945 |
4,167,744 |
|
------------ |
------------- |
------------ |
------------- |
|
|
|
|
|
It was discovered that the fixtures and fittings had been historically over depreciated by £589,213. This has now been corrected with a prior year adjustment to the fixtures and fittings accumulated depreciation for the year ended 28th Feb 2023.
15.
Investments
|
Other investments other than loans |
|
£ |
Cost |
|
At 1 March 2023 as restated and 29 February 2024 |
7,578 |
|
------- |
Impairment |
|
At 1 March 2023 as restated and 29 February 2024 |
– |
|
------- |
|
|
Carrying amount |
|
At 29 February 2024 |
7,578 |
|
------- |
At 28 February 2023 |
7,578 |
|
------- |
|
|
Investments consist of paintings that were bought several years ago. There has been no change in book value for the year.
16.
Stocks
|
2024 |
2023 |
|
|
(restated) |
|
£ |
£ |
Finished goods and goods for resale |
10,501,619 |
12,688,119 |
|
------------- |
------------- |
|
|
|
17.
Debtors
|
2024 |
2023 |
|
|
(restated) |
|
£ |
£ |
Deferred tax asset |
552,362 |
590,298 |
Prepayments and accrued income |
4,073,151 |
3,023,033 |
Corporation tax repayable |
281,066 |
432,864 |
Other debtors |
13,493 |
10,469 |
|
------------ |
------------ |
|
4,920,072 |
4,056,664 |
|
------------ |
------------ |
|
|
|
18.
Creditors:
amounts falling due within one year
|
2024 |
2023 |
|
|
(restated) |
|
£ |
£ |
Payments received on account |
62,245 |
72,250 |
Trade creditors |
3,320,366 |
2,382,213 |
Accruals and deferred income |
2,758,857 |
3,080,897 |
Social security and other taxes |
1,978,473 |
2,032,435 |
|
------------ |
------------ |
|
8,119,941 |
7,567,795 |
|
------------ |
------------ |
|
|
|
19.
Provisions
|
Dilapidations |
|
£ |
At 1 March 2023 (as restated) |
4,522,481 |
Additions |
216,411 |
|
------------ |
At 29 February 2024 |
4,738,892 |
|
------------ |
|
|
20.
Deferred tax
The deferred tax included in the statement of financial position is as follows:
|
2024 |
2023 |
|
|
(restated) |
|
£ |
£ |
Included in debtors (note 17) |
552,362 |
590,298 |
|
--------- |
--------- |
|
|
|
The deferred tax account consists of the tax effect of timing differences in respect of:
|
2024 |
2023 |
|
|
(restated) |
|
£ |
£ |
Accelerated capital allowances |
602,867 |
502,541 |
Other Timing Differences |
(
1,155,229)
|
(
1,092,839)
|
|
------------ |
------------ |
|
(552,362) |
(590,298) |
|
------------ |
------------ |
|
|
|
There has been a prior year adjustment to the accumulated depreciation for fixtures and fittings. This adjustment has necessitated a reduction in the deferred taxation. A prior year adjustment of £144,831 has reduced the deferred tax asset for the year ended 28th Feb 2023. Factors that may affect future tax charges The Finance Act 2021 enacted an increase in the rate of corporation tax from 1 April 2023 to 25%. The Act also introduced capital allowance super deductions giving tax relief on up to 130% of qualifying capital expenditure incurred after 1 April 2021. Super deductions have been available in the year for expenditure incurred up to 31 March 2023.
21.
Employee benefits
Defined contribution plans
The amount recognised in profit or loss as an expense in relation to defined contribution plans was £
462,964
(2023: £
109,548
).
The Pension contributions were made to defined contribution schemes of employees
.
22.
Government grants
The amounts recognised in the financial statements for government grants are as follows:
Recognised in other operating income:
Government grants recognised directly in income |
71,386 |
12,374 |
|
-------- |
-------- |
|
|
|
23.
Called up share capital
Authorised share capital
|
2024 |
2023 |
|
|
|
(restated) |
|
No. |
£ |
No. |
£ |
Ordinary shares of £ 1 each |
200,000 |
200,000 |
200,000 |
200,000 |
|
--------- |
--------- |
--------- |
--------- |
|
|
|
|
|
Issued, called up and fully paid
|
2024 |
2023 |
|
|
|
(restated) |
|
No. |
£ |
No. |
£ |
Ordinary shares of £ 1 each |
200,000 |
200,000 |
200,000 |
200,000 |
|
--------- |
--------- |
--------- |
--------- |
|
|
|
|
|
24.
Reserves
|
|
28/02/2023 |
29/02/2024 |
|
|
£ |
£ |
|
Called up Share Capital |
200,000 |
200,000 |
|
Profit and Loss Account |
20,388,987 |
21,144,255 |
|
Prior Year Adjustment |
444,382 |
– |
|
|
------------- |
------------- |
|
Total Equity |
21,033,369 |
21,344,255 |
|
|
------------- |
------------- |
|
|
|
|
The prior year adjustment has been explained at note 14 and note 20.
25.
Net income from operating activities
|
2024 |
2023 |
|
|
(restated) |
|
£ |
£ |
Profit for the financial year |
1,310,886 |
1,846,263 |
|
|
|
Adjustments for: |
|
|
Depreciation of tangible assets |
1,144,327 |
1,024,740 |
Other interest receivable and similar income |
(
358,087) |
(
25,823) |
Interest payable and similar expenses |
19,683 |
6 |
Gains on disposal of tangible assets |
(
18,172) |
(
24,359) |
Tax on profit |
452,171 |
421,002 |
Accrued (income)/expenses |
(
322,040) |
27,231 |
|
|
|
Changes in: |
|
|
Stocks |
2,186,500 |
(
1,239,820) |
Trade and other debtors |
(
1,053,140) |
1,310,539 |
Trade and other creditors |
874,186 |
1,312,033 |
Provisions and employee benefits |
216,411 |
209,304 |
|
------------ |
------------ |
|
4,452,725 |
4,861,116 |
|
------------ |
------------ |
|
|
|
26.
Analysis of changes in net debt
|
At 1 Mar 2023 |
Cash flows |
At 29 Feb 2024 |
|
£ |
£ |
£ |
Cash at bank and in hand |
12,203,540 |
2,237,370 |
14,440,910 |
|
------------- |
------------ |
------------- |
|
|
|
|
Notes to the Financial Statements (continued) |
|
Year ended 29 February 2024
27.
Operating leases
The total future minimum lease payments under non-cancellable operating leases are as follows:
|
2024 |
2023 |
|
|
(restated) |
|
£ |
£ |
Not later than 1 year |
6,308,715 |
6,136,113 |
Later than 1 year and not later than 5 years |
13,673,440 |
16,272,183 |
Later than 5 years |
5,497,271 |
6,851,284 |
|
------------- |
------------- |
|
25,479,426 |
29,259,580 |
|
------------- |
------------- |
|
|
|
28.
Pension commitments
The company operates a defined contribution pension scheme, Harry Corry Limited Self Administered Retirement & Death Benefit Scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. No contributions were made to the self-administered pension scheme during the year 2024 (2023: £nil). The unpaid contributions outstanding at the year end, included in creditors are £nil (2023: £nil)
29.
Events after the end of the reporting period
No significant events have occurred subsequent to the reporting date, which need adjusted or disclosed within the financial statements
.
30.
Related party transactions
Harry Corry Self-Administered Pension Fund The assets of the pension fund are held separately from those of the company in an independently administered fund. The pension fund leases property to the company at a commercial rate set by independent, suitable qualified valuers.
31.
Controlling party
The ultimate controlling parties are the shareholders of the company i.e. W Corry, J Corry and A Hill.