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REGISTERED NUMBER: 04777881 (England and Wales)













STRATEGIC REPORT, REPORT OF THE DIRECTOR AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MAY 2024

FOR

SOUTHERN COMMERCIAL SALES LIMITED

SOUTHERN COMMERCIAL SALES LIMITED (REGISTERED NUMBER: 04777881)






CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024




Page

Company Information 1

Strategic Report 2

Report of the Director 3

Report of the Independent Auditors 5

Statement of Comprehensive Income 9

Balance Sheet 10

Statement of Changes in Equity 11

Cash Flow Statement 12

Notes to the Cash Flow Statement 13

Notes to the Financial Statements 15


SOUTHERN COMMERCIAL SALES LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31 MAY 2024







DIRECTOR: W Digby Ware





SECRETARY: Mrs K M Ware





REGISTERED OFFICE: 30-34 North Street
Hailsham
East Sussex
BN27 1DW





REGISTERED NUMBER: 04777881 (England and Wales)





AUDITORS: Watson Associates (Audit Services) Ltd
30 - 34 North Street
Hailsham
East Sussex
BN27 1DW

SOUTHERN COMMERCIAL SALES LIMITED (REGISTERED NUMBER: 04777881)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 MAY 2024

The director presents his strategic report for the year ended 31 May 2024.

REVIEW OF BUSINESS
The company is a successful business of buying and selling commercial vehicles.

PRINCIPAL RISKS AND UNCERTAINTIES
The principal risks to the company are employee retention, product availability, and competition.

The majority of the staff have been in the business for many years. Part of the business' reputation is built from the key sales team, their knowledge of the industry and connections.

The business is well protected from the supply risk, there are a number of suppliers who provide key purchases so should there be issues with one there are a selection of alternatives.

Competition comes from other independent commercial vehicle garages as well as the manufacturer dealerships as the business is dealing with both new and used vehicles. That being said, supplying both new and used gives the company an advantage over most second hand garages as well as being more appealing to customers rather than going to a large manufacturer.

DEVELOPMENT & PERFORMANCE
Turnover decreased slightly compared to the previous year due to previous years seeing a spike in construction industry activity. There have been consistent margins seen in the year after the changes in strategy involving the sale of mostly new vehicles.

Overhead costs are stable with no large fluctuation or exceptional expenses. A slight deterioration in net profit margin is in line with general inflation costs of 10% across the UK.

FINANCIAL KEY PERFORMANCE INDICATORS
2024 2023
Growth of turnover -8.18% -12.07%
Gross profit margin 14.59% 19.98%
Net profit margin 9.67% 13.98%

Margins have remained healthy this year given the consistent business model that has been continued this year.

ON BEHALF OF THE BOARD:





W Digby Ware - Director


12 September 2024

SOUTHERN COMMERCIAL SALES LIMITED (REGISTERED NUMBER: 04777881)

REPORT OF THE DIRECTOR
FOR THE YEAR ENDED 31 MAY 2024

The director presents his report with the financial statements of the company for the year ended 31 May 2024.

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of the purchase and sale of commercial vehicles.

DIVIDENDS
No interim dividend was paid during the year. The director recommends a final dividend of £2,760 per share.

The total distribution of dividends for the year ended 31 May 2024 will be £ 276,000 .

DIRECTOR
W Digby Ware held office during the whole of the period from 1 June 2023 to the date of this report.

STATEMENT OF DIRECTOR'S RESPONSIBILITIES
The director is responsible for preparing the Strategic Report, the Report of the Director 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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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:

-select suitable accounting policies and then apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

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 him 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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the director is aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and he has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

SOUTHERN COMMERCIAL SALES LIMITED (REGISTERED NUMBER: 04777881)

REPORT OF THE DIRECTOR
FOR THE YEAR ENDED 31 MAY 2024


AUDITORS
The auditors, Watson Associates (Audit Services) Ltd, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





W Digby Ware - Director


12 September 2024

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
SOUTHERN COMMERCIAL SALES LIMITED

Opinion
We have audited the financial statements of Southern Commercial Sales Limited (the 'company') for the year ended 31 May 2024 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
-give a true and fair view of the state of the company's affairs as at 31 May 2024 and of its profit for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

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

Conclusions relating to going concern
In auditing the financial statements, we have concluded that the 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 director is responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Director, but does not include the financial statements and our Report of the Auditors thereon.

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

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
SOUTHERN COMMERCIAL SALES LIMITED


Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Strategic Report and the Report of the Director for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Director have 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 obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Director.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of director's remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

Responsibilities of director
As explained more fully in the Statement of Director's Responsibilities set out on page three, 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 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.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
SOUTHERN COMMERCIAL SALES LIMITED


Auditors' responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

Based on our understanding of the Company and industry, we identified that the principal risks of non-compliance with laws and regulations related to employment 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 the Companies Act 2006. 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 achieve desired financial results and the manipulation of exceptional items and management bias in accounting estimates.

Audit procedures performed by the engagement team included:

- enquiries with management, including consideration of known or suspected instances of fraud and non-compliance with laws and regulations and examining supporting calculations where a provision has been made in respect of these;
- reading key correspondence with regulatory authorities in relation to compliance with certain employment laws;
- understanding and evaluating the design and implementation of management's controls designed to prevent and detect irregularities;
- challenging assumptions and judgements made by management in their significant accounting estimates, in particular in relation to valuation of investment property, impairment of investments in subsidiaries and the measurement and classification of exceptional items;
- identifying and testing journal entries, in particular any journal entries posted with unusual account combinations and postings by unusual users.

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
SOUTHERN COMMERCIAL SALES LIMITED


Use of our report
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.




Stephen James Moore (Senior Statutory Auditor)
for and on behalf of Watson Associates (Audit Services) Ltd
30 - 34 North Street
Hailsham
East Sussex
BN27 1DW

12 September 2024

SOUTHERN COMMERCIAL SALES LIMITED (REGISTERED NUMBER: 04777881)

STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MAY 2024

2024 2023
Notes £    £   

TURNOVER 4 11,916,321 12,891,210

Cost of sales (10,177,193 ) (10,315,213 )
GROSS PROFIT 1,739,128 2,575,997

Administrative expenses (682,573 ) (782,860 )
1,056,555 1,793,137

Other operating income 7,845 10
OPERATING PROFIT 6 1,064,400 1,793,147

Interest receivable and similar income 87,608 11,515
1,152,008 1,804,662

Interest payable and similar expenses 7 - (1,994 )
PROFIT BEFORE TAXATION 1,152,008 1,802,668

Tax on profit 8 (288,924 ) (356,664 )
PROFIT FOR THE FINANCIAL YEAR 863,084 1,446,004

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR
THE YEAR

863,084

1,446,004

SOUTHERN COMMERCIAL SALES LIMITED (REGISTERED NUMBER: 04777881)

BALANCE SHEET
31 MAY 2024

2024 2023
Notes £    £   
FIXED ASSETS
Intangible assets 10 - -
Tangible assets 11 616,074 597,613
616,074 597,613

CURRENT ASSETS
Stocks 12 2,976,484 2,844,969
Debtors 13 3,188,987 2,965,607
Investments 14 6,979 6,979
Cash at bank and in hand 2,146,985 1,950,396
8,319,435 7,767,951
CREDITORS
Amounts falling due within one year 15 (465,649 ) (488,065 )
NET CURRENT ASSETS 7,853,786 7,279,886
TOTAL ASSETS LESS CURRENT
LIABILITIES

8,469,860

7,877,499

PROVISIONS FOR LIABILITIES 16 (154,019 ) (148,742 )
NET ASSETS 8,315,841 7,728,757

CAPITAL AND RESERVES
Called up share capital 17 100 100
Retained earnings 18 8,315,741 7,728,657
SHAREHOLDERS' FUNDS 8,315,841 7,728,757

The financial statements were approved by the director and authorised for issue on 12 September 2024 and were signed by:





W Digby Ware - Director


SOUTHERN COMMERCIAL SALES LIMITED (REGISTERED NUMBER: 04777881)

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2024

Called up
share Retained Total
capital earnings equity
£    £    £   
Balance at 1 June 2022 100 6,797,653 6,797,753

Changes in equity
Dividends - (515,000 ) (515,000 )
Total comprehensive income - 1,446,004 1,446,004
Balance at 31 May 2023 100 7,728,657 7,728,757

Changes in equity
Dividends - (276,000 ) (276,000 )
Total comprehensive income - 863,084 863,084
Balance at 31 May 2024 100 8,315,741 8,315,841

SOUTHERN COMMERCIAL SALES LIMITED (REGISTERED NUMBER: 04777881)

CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 MAY 2024

2024 2023
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 756,123 624,537
Interest paid - (1,994 )
Tax paid (365,295 ) (302,986 )
Net cash from operating activities 390,828 319,557

Cash flows from investing activities
Purchase of tangible fixed assets (75,848 ) (70,818 )
Sale of tangible fixed assets 70,000 266,262
Interest received 87,608 11,515
Net cash from investing activities 81,760 206,959

Cash flows from financing activities
Amount introduced by directors 476,000 153,019
Amount withdrawn by directors (475,999 ) (152,198 )
Equity dividends paid (276,000 ) (515,000 )
Net cash from financing activities (275,999 ) (514,179 )

Increase in cash and cash equivalents 196,589 12,337
Cash and cash equivalents at
beginning of year

2

1,950,396

1,938,059

Cash and cash equivalents at end of
year

2

2,146,985

1,950,396

SOUTHERN COMMERCIAL SALES LIMITED (REGISTERED NUMBER: 04777881)

NOTES TO THE CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 MAY 2024

1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2024 2023
£    £   
Profit before taxation 1,152,008 1,802,668
Depreciation charges 33,434 60,548
Profit on disposal of fixed assets (46,049 ) (33,901 )
Finance costs - 1,994
Finance income (87,608 ) (11,515 )
1,051,785 1,819,794
Increase in stocks (131,515 ) (1,173,163 )
(Increase)/decrease in trade and other debtors (223,378 ) 145,716
Increase/(decrease) in trade and other creditors 59,231 (167,810 )
Cash generated from operations 756,123 624,537

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 May 2024
31.5.24 1.6.23
£    £   
Cash and cash equivalents 2,146,985 1,950,396
Year ended 31 May 2023
31.5.23 1.6.22
£    £   
Cash and cash equivalents 1,950,396 1,938,059


SOUTHERN COMMERCIAL SALES LIMITED (REGISTERED NUMBER: 04777881)

NOTES TO THE CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 MAY 2024

3. ANALYSIS OF CHANGES IN NET FUNDS

At 1.6.23 Cash flow At 31.5.24
£    £    £   
Net cash
Cash at bank and in hand 1,950,396 196,589 2,146,985
1,950,396 196,589 2,146,985

Liquid resources
Current asset investments 6,979 - 6,979
6,979 - 6,979
Total 1,957,375 196,589 2,153,964

SOUTHERN COMMERCIAL SALES LIMITED (REGISTERED NUMBER: 04777881)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

1. STATUTORY INFORMATION

Southern Commercial Sales Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Turnover
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Goodwill
Acquired goodwill is written off in equal instalments over its estimated useful economic life.

Intangible assets
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Fixtures and fittings - at variable rates on reducing balance
Motor vehicles - 25% on reducing balance
Computer equipment - 33% on cost

Tangible assets are stated at cost (or deemed cost) less accumulated depreciation and accumulated impairment losses. Cost includes the original purchase price, costs directly attributable to bringing the asset to its working condition for its intended use, dismantling and restoration costs.

The assets' residual values and useful lives are reviewed, and adjusted, if appropriate, at the end of each reporting period. The effect of any change is accounted for prospectively.

No depreciation has been provided on freehold land and buildings, as land has an indefinite life and the residual value of the buildings is greater than or equal to the cost.

Stocks
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

SOUTHERN COMMERCIAL SALES LIMITED (REGISTERED NUMBER: 04777881)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MAY 2024

2. ACCOUNTING POLICIES - continued

Financial instruments
The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, loans from banks and other third parties, and loans to related parties.

Debt instruments that are payable or receivable within one year, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received; other debt instruments are initially measured at present value of the future payments and subsequently at amortised cost using the effective interest method.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in profit or loss.

Financial assets and liabilities are offset and the net amount reported in the balance sheet only when there is an 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.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

3. CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

No significant judgements have had to be made by management in preparing these financial statements.

There were no key assumptions made concerning the future, and other key sources of estimation 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.

SOUTHERN COMMERCIAL SALES LIMITED (REGISTERED NUMBER: 04777881)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MAY 2024

4. TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

5. EMPLOYEES AND DIRECTORS
2024 2023
£    £   
Wages and salaries 365,555 377,188
Social security costs 35,139 37,868
Other pension costs 8,170 7,628
408,864 422,684

The average number of employees during the year was as follows:
2024 2023

Administration 4 4
Maintenance 5 5
9 9

2024 2023
£    £   
Director's remuneration 14,912 14,784

6. OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2024 2023
£    £   
Depreciation - owned assets 33,436 60,547
Profit on disposal of fixed assets (46,049 ) (33,901 )
Auditors' remuneration 11,025 10,500

7. INTEREST PAYABLE AND SIMILAR EXPENSES
2024 2023
£    £   
Bank loan interest - 1,994

SOUTHERN COMMERCIAL SALES LIMITED (REGISTERED NUMBER: 04777881)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MAY 2024

8. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2024 2023
£    £   
Current tax:
UK corporation tax 283,477 365,125
Previous year taxation 105 -
CT Interest 65 -
Total current tax 283,647 365,125

Deferred tax 5,277 (8,461 )
Tax on profit 288,924 356,664

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

2024 2023
£    £   
Profit before tax 1,152,008 1,802,668
Profit multiplied by the standard rate of corporation tax in the UK of
25% (2023 - 20.002%)

288,002

360,570

Effects of:
Expenses not deductible for tax purposes 146 -
Income not taxable for tax purposes (16 ) -
Capital allowances in excess of depreciation (4,655 ) -
Depreciation in excess of capital allowances - 4,555
Adjustments to tax charge in respect of previous periods 105 -
Deferred tax movement 5,277 (8,461 )
Interest on taxation 65 -
Total tax charge 288,924 356,664

9. DIVIDENDS
2024 2023
£    £   
Ordinary shares of £1 each
Final 276,000 515,000

SOUTHERN COMMERCIAL SALES LIMITED (REGISTERED NUMBER: 04777881)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MAY 2024

10. INTANGIBLE FIXED ASSETS
Goodwill
£   
COST
At 1 June 2023
and 31 May 2024 500,000
AMORTISATION
At 1 June 2023
and 31 May 2024 500,000
NET BOOK VALUE
At 31 May 2024 -
At 31 May 2023 -

11. TANGIBLE FIXED ASSETS
Fixtures
Freehold Plant and and
property machinery fittings
£    £    £   
COST
At 1 June 2023 515,995 15,400 13,989
Additions - - -
Disposals - - -
At 31 May 2024 515,995 15,400 13,989
DEPRECIATION
At 1 June 2023 - 5,544 12,932
Charge for year - 1,971 159
Eliminated on disposal - - -
At 31 May 2024 - 7,515 13,091
NET BOOK VALUE
At 31 May 2024 515,995 7,885 898
At 31 May 2023 515,995 9,856 1,057

SOUTHERN COMMERCIAL SALES LIMITED (REGISTERED NUMBER: 04777881)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MAY 2024

11. TANGIBLE FIXED ASSETS - continued

Motor Computer
vehicles equipment Totals
£    £    £   
COST
At 1 June 2023 157,014 11,136 713,534
Additions 75,000 848 75,848
Disposals (86,000 ) - (86,000 )
At 31 May 2024 146,014 11,984 703,382
DEPRECIATION
At 1 June 2023 88,754 8,691 115,921
Charge for year 29,828 1,478 33,436
Eliminated on disposal (62,049 ) - (62,049 )
At 31 May 2024 56,533 10,169 87,308
NET BOOK VALUE
At 31 May 2024 89,481 1,815 616,074
At 31 May 2023 68,260 2,445 597,613

Buildings have not been depreciated as the estimated residual value is considered to be greater than the cost.

12. STOCKS
2024 2023
£    £   
Finished goods 2,976,484 2,844,969

13. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Trade debtors 61,074 137,386
Other loans 3,112,578 2,813,242
VAT - 6,243
Prepayments 15,335 8,736
3,188,987 2,965,607

14. CURRENT ASSET INVESTMENTS
2024 2023
£    £   
Unlisted investments 6,979 6,979

SOUTHERN COMMERCIAL SALES LIMITED (REGISTERED NUMBER: 04777881)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MAY 2024

15. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Trade creditors 49,468 6,826
Tax 283,477 365,125
Social security and other taxes 8,916 8,547
VAT 49,050 -
Other creditors 7,095 1,975
Directors' current accounts 887 886
Accrued expenses 66,756 104,706
465,649 488,065

16. PROVISIONS FOR LIABILITIES
2024 2023
£    £   
Deferred tax 154,019 148,742

Deferred
tax
£   
Balance at 1 June 2023 148,742
Charge to Statement of Comprehensive Income during year 5,277
Balance at 31 May 2024 154,019

17. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2024 2023
value: £    £   
100 Ordinary £1 100 100

The shares have attached to them full voting, dividend and capital distribution (including on winding up) rights; they do not confer any rights of redemption.

18. RESERVES
Retained
earnings
£   

At 1 June 2023 7,728,657
Profit for the year 863,084
Dividends (276,000 )
At 31 May 2024 8,315,741

SOUTHERN COMMERCIAL SALES LIMITED (REGISTERED NUMBER: 04777881)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MAY 2024

19. RELATED PARTY DISCLOSURES

At the balance sheet date an amount of £3,112,578 (2023: £2,813,242) was due from a company under common control.