Company Registration No. 05680704 (England and Wales)
COLDSTORES LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 FEBRUARY 2024
COLDSTORES LIMITED
COMPANY INFORMATION
Director
Mr B McDermott
Secretary
Mrs L Thompson
Company number
05680704
Registered office
23 London Road
Downham Market
Norfolk
England
PE38 9BJ
Auditor
Mapus-Smith & Lemmon LLP
23 London Road
Downham Market
Norfolk
England
PE38 9BJ
Business address
Plant 3
Rollesby Road
Kings Lynn
Norfolk
PE30 4LS
COLDSTORES LIMITED
CONTENTS
Page
Strategic report
1 - 2
Director's report
3
Director's responsibilities statement
4
Independent auditor's report
5 - 7
Profit and loss account
8
Statement of comprehensive income
9
Balance sheet
10 - 11
Statement of changes in equity
12
Statement of cash flows
13
Notes to the financial statements
14 - 27
COLDSTORES LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 1 -

The director of Coldstores Limited is pleased to present his strategic report on the affairs of the company, along with his director's report, the audited financial statements and the auditor's report for the year ended 28 February 2024.

Review of the business

The director and management team are very satisfied with the trading results of the company during the financial year.

 

Following on from our report last year, we were able to focus and work hard on achieving a broader customer base that ultimately helps to minimize some of the risks associated with business customer concentration.  We are exceptionally proud of the increase in sales achieved & observed for the financial year.  The food service industry and funeral care sector both saw sales growth over the year and a healthy sales mix was observed. 

 

The strong financial performance delivered throughout the year has allowed us to maximise and work the liquid assets of the business hard to take advantage of the healthy and attractive interest rates that have been accessible for industry savers.  This has allowed us to strengthen the net profit before tax position however,  we understand this is something that will no doubt fall back over time as the UK Government and BOE work hard on measures to bring inflationary levels down and naturally as a result the savings rates on cash deposits will weaken.  

 

Consistently manufacturing and installing premium products remains a top focus and we realise there is always more we have and must do to remain the benchmark within our industry.    Environmental focus remains high on our agenda this coming financial year and into the longer term as we continue to see more demand within the industry for environmentally friendly and energy efficient equipment alongside corporate social responsibility awareness. 

 

At this point in our trading history, we now need to plan and deliver large amounts of investment to sustain and grow our business longer term.  The commercial results we have achieved allow us the privilege to consider the acquisition of new technologies, machinery, and premises upgrades to our manufacturing facility in King’s Lynn, Norfolk.  We are committed to investing heavily into this business, our colleagues and to the locality of our premises allowing us to maintain the current headcount with a view to commit to new job opportunities longer term. 

 

Principal risks and uncertainties

Financial risk

 

The company are continuing to repay the CBIL loan that was taken out and this still presents minimal financial risk to the business.

 

Environmental, Health & Safety

 

The company recognises that Health, Safety and Welfare of all parties involved in its works, or that could be affected by its works, are of the utmost importance and place both safety and the environment as two of their highest priorities.

Future Developments

Training and investment of current staff and creating new roles within the business to create a firm infrastructure for supporting increased turnover plans.

Key performance indicators

Turnover

 

The company focuses on throughflow of orders to maintain a high level of turnover. Equipment and installation sales account for the vast majority of turnover.

During the year equipment and installation sales were just over 13% higher than the previous year.

COLDSTORES LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 2 -
EBITDA

EBITDA margin is the other major performance indicator.

For the year to 28 February 2024 EBITDA margin was calculated at 19.22%, compared to 14.35% on the previous year. This was expected and the business plans to try and improve upon this result year on year.

On behalf of the board

Mr B McDermott
Director
28 November 2024
COLDSTORES LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 3 -

The director presents his annual report and financial statements for the year ended 29 February 2024.

Principal activities

The principal activity of the company continued to be that of refrigeration installation.

Results and dividends

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

Ordinary dividends were paid amounting to £1,900,000. The director does not recommend payment of a further dividend.

Director

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

Mr B McDermott
Auditor

Mapus-Smith & Lemmon LLP were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

Statement of disclosure to auditor

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

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
Mr B McDermott
Director
28 November 2024
COLDSTORES LIMITED
DIRECTOR'S RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 4 -

The director is responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the director is required to:

 

 

The director is responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. He is 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.

COLDSTORES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF COLDSTORES LIMITED
- 5 -
Opinion

We have audited the financial statements of Coldstores Limited (the 'company') for the year ended 29 February 2024 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

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

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The director is responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

COLDSTORES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF COLDSTORES LIMITED (CONTINUED)
- 6 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the director's 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 director

As explained more fully in the director's responsibilities statement, the director is 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 director determines 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 director 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 the director either intends to liquidate the company or to cease operations, or has 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 these financial statements.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any, material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

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

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

To address the risk of fraud through management bias and override of controls, we:

 

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://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.

Craig Symonds
Senior Statutory Auditor
For and on behalf of Mapus-Smith & Lemmon LLP
28 November 2024
Chartered Accountants
Statutory Auditor
23 London Road
Downham Market
Norfolk
England
PE38 9BJ
COLDSTORES LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
23,389,102
20,634,113
Cost of sales
(14,762,345)
(13,994,499)
Gross profit
8,626,757
6,639,614
Administrative expenses
(4,255,274)
(3,669,973)
Operating profit
4
4,371,483
2,969,641
Interest receivable and similar income
8
168,111
7,804
Interest payable and similar expenses
9
(43,174)
(29,923)
Profit before taxation
4,496,420
2,947,522
Tax on profit
10
(1,218,825)
(327,144)
Profit for the financial year
3,277,595
2,620,378

The profit and loss account has been prepared on the basis that all operations are continuing operations.

COLDSTORES LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 9 -
2024
2023
£
£
Profit for the year
3,277,595
2,620,378
Other comprehensive income
-
-
Total comprehensive income for the year
3,277,595
2,620,378
COLDSTORES LIMITED
BALANCE SHEET
AS AT
29 FEBRUARY 2024
29 February 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
12
787,449
597,645
Current assets
Stocks
13
1,772,921
2,106,712
Debtors
14
4,811,328
3,920,320
Cash at bank and in hand
5,103,796
3,977,903
11,688,045
10,004,935
Creditors: amounts falling due within one year
15
(3,869,648)
(3,261,243)
Net current assets
7,818,397
6,743,692
Total assets less current liabilities
8,605,846
7,341,337
Creditors: amounts falling due after more than one year
16
(311,976)
(538,504)
Provisions for liabilities
18
(568,730)
(455,288)
Net assets
7,725,140
6,347,545
Capital and reserves
Called up share capital
21
50
50
Profit and loss reserves
7,725,090
6,347,495
Total equity
7,725,140
6,347,545
COLDSTORES LIMITED
BALANCE SHEET (CONTINUED)
AS AT
29 FEBRUARY 2024
29 February 2024
- 11 -
The financial statements were approved and signed by the director and authorised for issue on 28 November 2024
Mr B McDermott
Director
Company Registration No. 05680704
COLDSTORES LIMITED
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
50
4,027,117
4,027,167
Year ended 28 February 2023:
Profit and total comprehensive income
-
2,620,378
2,620,378
Dividends
11
-
(300,000)
(300,000)
Balance at 28 February 2023
50
6,347,495
6,347,545
Year ended 29 February 2024:
Profit and total comprehensive income
-
3,277,595
3,277,595
Dividends
11
-
(1,900,000)
(1,900,000)
Balance at 29 February 2024
50
7,725,090
7,725,140
COLDSTORES LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 13 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
25
4,247,629
1,582,127
Interest paid
(43,174)
(29,923)
Income taxes paid
(500,890)
(200,000)
Net cash inflow from operating activities
3,703,565
1,352,204
Investing activities
Purchase of tangible fixed assets
(408,803)
(465,072)
Proceeds from disposal of tangible fixed assets
10,978
62,236
Repayment of loans
(225,264)
-
0
Interest received
168,111
7,804
Net cash used in investing activities
(454,978)
(395,032)
Financing activities
Repayment of bank loans
(200,000)
(200,000)
Payment of finance leases obligations
(22,694)
49,110
Dividends paid
(1,900,000)
-
0
Net cash used in financing activities
(2,122,694)
(150,890)
Net increase in cash and cash equivalents
1,125,893
806,282
Cash and cash equivalents at beginning of year
3,977,903
3,171,621
Cash and cash equivalents at end of year
5,103,796
3,977,903
COLDSTORES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 14 -
1
Accounting policies
Company information

Coldstores Limited is a private company limited by shares incorporated in England and Wales. The registered office is 23 London Road, Downham Market, Norfolk, England, PE38 9BJ. The business address is Unit 3 Rollesby Road, Hardwick Industrial Estate, King's Lynn, Norfolk PE30 4LS.

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 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.

1.2
Going concern

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

The COVID-19 pandemic does not appear to have affected the finances of the company to such a degree that going concern is an issue.

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

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 economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.4
Tangible fixed assets

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

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

Leasehold buildings
8 years straight line basis
Plant and equipment
20% reducing balance basis
Fixtures and fittings
20% reducing balance basis
Computers
3 years straight lline basis
Motor vehicles
25% reducing balance basis

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

COLDSTORES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
1
Accounting policies
(Continued)
- 15 -

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.5
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

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.

1.6
Cash at bank and in hand

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.7
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

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

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

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.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. 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 profit or loss.

 

If there is a 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 profit or loss.

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 company 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 company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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.

COLDSTORES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
1
Accounting policies
(Continued)
- 17 -
Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

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

Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.

1.8
Taxation

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

Current tax

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

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

COLDSTORES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
1
Accounting policies
(Continued)
- 18 -
1.9
Provisions

Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

 

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

1.10
Retirement benefits

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

1.11
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 except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

1.12
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

Government grants relating to turnover are recognised as income over the periods when the related costs are incurred. Grants relating to an asset are recognised in income systematically over the asset's expected useful life. If part of such a grant is deferred it is recognised as deferred income rather than being deducted from the asset's carrying amount.

1.13
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.

COLDSTORES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 19 -
2
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 income and expenditure during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. No judgements (apart from those involving estimates) have been made when preparing the financial statements.

 

The key assumptions concerning the future and other key sources of of estimating uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year include: -

Stock and work in progress

Stocks are valued at the lower cost and net realisable value, after making due allowance for the stock provision. Provision for slow moving and obsolete stock that is written down to it's original cost.

Warranty provision

A provision for warranty costs has been measured at a probability-weighted expected value with carrying value at the year end.

Tangible fixed assets

Tangible fixed assets are depreciated over their useful lives taking into account residual values where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. in re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values.

3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Equipment and installation
22,972,700
20,328,583
Servicing
416,402
305,530
23,389,102
20,634,113
2024
2023
£
£
Other revenue
Interest income
168,111
7,804

All turnover was performed within the UK during the current and preceding year.

COLDSTORES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 20 -
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses
1,720
9,089
Fees payable to the company's auditor for the audit of the company's financial statements
13,000
12,150
Depreciation of owned tangible fixed assets
182,972
133,993
Depreciation of tangible fixed assets held under finance leases
25,064
23,786
Profit on disposal of tangible fixed assets
(15)
(14,354)
Operating lease charges
147,141
144,348
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
13,000
12,150
6
Director's remuneration
2024
2023
£
£
Remuneration for qualifying services
8,500
8,500
7
Employees

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

2024
2023
Number
Number
Directors
1
1
Finance
6
6
Administration and Sales
19
18
Factory and Installations
36
36
Total
62
61
COLDSTORES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
7
Employees
(Continued)
- 21 -

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
2,361,501
2,089,105
Social security costs
258,154
215,524
Pension costs
62,798
51,923
2,682,453
2,356,552
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
168,111
7,804
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
168,111
7,804
9
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
39,610
27,981
Other finance costs:
Interest on finance leases and hire purchase contracts
3,564
1,942
43,174
29,923
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
1,065,098
535,275
Adjustments in respect of prior periods
1,038
-
0
Total current tax
1,066,136
535,275
COLDSTORES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
10
Taxation
2024
2023
£
£
(Continued)
- 22 -
Deferred tax
Origination and reversal of timing differences
52,689
26,099
Adjustment in respect of prior periods
100,000
(234,230)
Total deferred tax
152,689
(208,131)
Total tax charge
1,218,825
327,144

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
4,496,420
2,947,522
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
1,124,105
560,029
Tax effect of expenses that are not deductible in determining taxable profit
(6,318)
1,345
Adjustments in respect of prior years
101,038
(234,230)
Taxation charge for the year
1,218,825
327,144
11
Dividends
2024
2023
£
£
Final paid
1,900,000
300,000
COLDSTORES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 23 -
12
Tangible fixed assets
Leasehold buildings
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 March 2023
206,329
344,512
75,470
264,729
413,238
1,304,278
Additions
20,481
53,144
1,630
34,856
298,692
408,803
Disposals
-
0
-
0
-
0
(3,285)
(27,938)
(31,223)
At 29 February 2024
226,810
397,656
77,100
296,300
683,992
1,681,858
Depreciation and impairment
At 1 March 2023
199,585
163,667
52,412
215,733
75,236
706,633
Depreciation charged in the year
51
43,298
4,666
33,782
126,239
208,036
Eliminated in respect of disposals
-
0
-
0
-
0
(4,599)
(15,661)
(20,260)
At 29 February 2024
199,636
206,965
57,078
244,916
185,814
894,409
Carrying amount
At 29 February 2024
27,174
190,691
20,022
51,384
498,178
787,449
At 28 February 2023
6,743
180,844
23,058
48,996
338,004
597,645

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

2024
2023
£
£
Motor vehicles
75,191
123,354
13
Stocks
2024
2023
£
£
Work in progress
-
28,912
Finished goods and goods for resale
1,772,921
2,077,800
1,772,921
2,106,712
COLDSTORES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 24 -
14
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
4,473,679
3,806,347
Other debtors
298,917
80,127
Prepayments and accrued income
38,732
33,846
4,811,328
3,920,320
15
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans
181,702
181,702
Obligations under finance leases
17
26,528
22,694
Trade creditors
1,777,004
1,885,971
Corporation tax
765,098
99,853
Other taxation and social security
98,091
89,408
Other creditors
273,443
232,769
Accruals and deferred income
747,782
748,846
3,869,648
3,261,243
16
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans and overdrafts
284,965
484,965
Obligations under finance leases
17
27,011
53,539
311,976
538,504

The long-term loans are secured by fixed and floating charges over the property or undertaking of the company.

17
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
26,528
22,694
In two to five years
27,011
53,539
53,539
76,233
COLDSTORES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
17
Finance lease obligations
(Continued)
- 25 -

Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 3 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

18
Provisions for liabilities
2024
2023
Notes
£
£
Warranty provision
461,588
400,836
Deferred tax liabilities
19
107,142
54,452
568,730
455,288
Movements on provisions apart from retirement benefits and deferred tax liabilities:
Warranty provision
£
At 1 March 2023
400,836
Additional provisions in the year
60,752
At 29 February 2024
461,588
19
Deferred taxation

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

Liabilities
Liabilities
2024
2023
Balances:
£
£
Timing differences
107,142
54,452
2024
Movements in the year:
£
Liability at 1 March 2023
54,452
Charge to profit or loss
52,690
Liability at 29 February 2024
107,142

The deferred tax liability set out above is expected to reverse within 24 months and relates to accelerated capital allowances that are expected to mature within the same period.

COLDSTORES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 26 -
20
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
26,025
24,697

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

21
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
50
50
50
50
22
Operating lease commitments
Lessee

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

2024
2023
£
£
Within one year
13,376
25,367
Between two and five years
2,279
15,655
15,655
41,022
23
Related party transactions

During the year the Company paid rent totalling £120,000 (2022: £120,000) to an entity in which the director is a trustee. The amount payable at the year end was £Nil (2022: £Nil).

24
Ultimate controlling party

The ultimate controlling is Mr B McDermott by virtue of his controlling interest in the company.

COLDSTORES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 27 -
25
Cash generated from operations
2024
2023
£
£
Profit for the year after tax
3,277,595
2,620,378
Adjustments for:
Taxation charged
1,218,825
327,144
Finance costs
43,174
29,923
Investment income
(168,111)
(7,804)
Gain on disposal of tangible fixed assets
(15)
(1,728)
Depreciation and impairment of tangible fixed assets
208,036
157,779
Increase in provisions
60,752
20,606
Movements in working capital:
Decrease/(increase) in stocks
333,791
(551,962)
Increase in debtors
(665,744)
(136,538)
Decrease in creditors
(60,674)
(277,390)
Cash generated from operations
4,247,629
2,180,408
26
Analysis of changes in net funds
1 March 2023
Cash flows
29 February 2024
£
£
£
Cash at bank and in hand
3,977,903
1,125,893
5,103,796
Borrowings excluding overdrafts
(666,667)
200,000
(466,667)
Obligations under finance leases
(76,233)
22,694
(53,539)
3,235,003
1,348,587
4,583,590
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