Company registration number 10415003 (England and Wales)
PARTNER RETAIL SERVICES LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 APRIL 2024
PARTNER RETAIL SERVICES LIMITED
COMPANY INFORMATION
Directors
S Cochrane
G L Matthew
Secretary
J Holdgate
Company number
10415003
Registered office
Network House
Third Avenue
Globe Park
Marlow
Buckinghamshire
SL7 1EY
Auditor
MGI Midgley Snelling LLP
Ibex House
Baker Street
Weybridge
Surrey
KT13 8AH
Bankers
NatWest Group
280 Bishopsgate
London
EC2M 4RB
PARTNER RETAIL SERVICES LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 6
Independent auditor's report
7 - 9
Statement of comprehensive income
10
Balance sheet
11
Statement of changes in equity
12
Notes to the financial statements
13 - 22
PARTNER RETAIL SERVICES LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 28 APRIL 2024
- 1 -
The directors present the strategic report for the year ended 28 April 2024.
The objectives of this report are to provide shareholders and other users of these statements:
the appropriate level of background context for these financial statements;
analysis of the company's past performance; and
insight into the company's main objectives and strategies, the principal risks it faces and how they might affect future prospects.
The Company's Objectives and Strategy
The company's objective is to be recognised as a market leading provider of retail services and solutions to the world's leading technology brands.
The board seeks to deliver sustainable, responsible and profitable business growth so as to build shareholder value and offer challenging and rewarding careers for the company's employees.
The company has and continues to strive to enhance close working relationships with all of its partners and aims to deliver value added solutions in a cost-effective, efficient and innovative way.
Business Review and Key Performance Indicators
The directors are pleased with the company's financial performance for the year. The company achieved revenues in the year of £58,906,478 (2023: £56,102,737) and a EBITDA of £1,647,836 (2023: £1,593,736) after deducting the exceptional item.
In regular monitoring of financial reporting, the directors assess the company's development and performance against both prior year results and forecasts prepared annually and these are reviewed regularly for continuing appropriateness given strategic developments in the business. Key financial performance measures include turnover and EBITDA after deducting the exceptional item vs budgeted forecast.
Principal risks and uncertanties
The company has a risk management process in place to identify and effectively manage risk across the business. The following principle risks have been identified and may have an impact on the company and its operations:-
Partner Retail Services Limited operates in a competitive retail environment and there is an on-going risk that sales may be lost to rival businesses,
Whilst the risk reduces as Partner Retail Services Limited strengthens its market leading position, there is a risk that Partner Retail Services Limited trading could be adversely impacted by changes in strategy by key suppliers.
The directors believe that one of the key differentiators of the Partner Retail Services Limited business model is the customer service and choice and seek to build on these to set the company apart from its competitors.
Liquidity
The company uses various financial instruments including loans, cash and various items, such as trade debtors and trade creditors that arise directly from its operations. The main purpose of these financial instruments is to raise finance for the company's operations.
The company seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs and to invest cash assets safely and profitability.
PARTNER RETAIL SERVICES LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 28 APRIL 2024
- 2 -
Statement by the directors in performance of their duties in accordance with 172(1) Companies Act 2006.
The board of directors of Partner Retail Services Limited consider, both individually and together, that they have acted in the way they consider, in good faith, would be most likely to promote the success of the company for the benefit of its members as a whole in the decisions taken during the year to 28 April 2024.
The statements below explain how the requirements of S172 have been met.
The likely consequences of any decision in the long term
The directors consider the likely consequences of any decision in the long-term. Each company within the Group is bound by Group policies consistent with the Group’s culture in all key areas including supplier management and outsourcing, customer conduct, human resources and the environment. Details of any decisions made regarding dividends can be found in the directors’ report.
Engaging with our employees
The directors recognise that employees are fundamental and core to our business and delivery of our strategic ambitions. The success of our business depends on attracting, retaining and motivating employees. From ensuring that we remain a responsible employer, from pay and benefits to our health, safety and workplace environment, the directors factor the implications of decisions on employees and the wider workforce, where relevant and feasible.
Engaging with our suppliers and customers
Delivering our strategy requires strong relationships with suppliers and customers. Customer feedback is obtained and discussed at directors' meetings.
Community and the environment
The company’s approach is to use our position of strength to create positive change for the people and communities which we interact with.
Maintaining a reputation for high standards of business conduct
The Board has established honesty, integrity and respect for people as Partner Retail Services Limited core values. The General Business Principles, Code of Conduct, and Code of Ethics help everyone at Partner Retail Services Limited act in line with these values and comply with relevant laws and regulations.
The need to act fairly as between members of the company
Our intention is to behave responsibly towards our shareholders and treat them fairly, so they too benefit from the successful delivery of the company’s plan.
S Cochrane
Director
7 October 2024
PARTNER RETAIL SERVICES LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 28 APRIL 2024
- 3 -
The directors present their annual report and financial statements for the year ended 28 April 2024.
Principal activities
The principal activity of the company continued to be that of retail trading of electronic goods.
Results and dividends
The results for the year are set out on page 10.
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
S Cochrane
G L Matthew
Disabled persons
Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the company continues and that the appropriate training is arranged. It is the policy of the company that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.
Employee involvement
The company's policy is to consult and discuss with employees, through unions, staff councils and at meetings, matters likely to affect employees' interests.
Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the company's performance.
There is no employee share scheme at present, but the directors are considering the introduction of such a scheme as a means of further encouraging the involvement of employees in the company's performance.
Future developments
The directors are confident that the outlook of the company is good due to the current stores continuing to attract high level of footfall.
PARTNER RETAIL SERVICES LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 28 APRIL 2024
- 4 -
Statement of directors' responsibilities
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
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 adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
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.
PARTNER RETAIL SERVICES LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 28 APRIL 2024
- 5 -
Greenhouse gas emissions and energy consumption
The below table and supporting narrative summarise the Streamlined Energy and Carbon Reporting (SECR) disclosure in line with the requirements for a “large” unquoted company, as per The Companies (Directors’ Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018.
| Current reporting year: 1st May 2023 – 28th April 2024 | Previous reporting year: 25th April 2022 – 30th April 2023 |
| | |
Emissions from the combustion of fuel and operation of facilities (Scope 1) (tCO2e) | | |
Emissions from purchase of electricity (location-based) (tCO2e) (Scope 2) | | |
Emissions from business travel in rental cars or employee-owned vehicles where company is responsible for purchasing the fuel (tCO2e) (Scope 3) | | |
Total gross emissions based on the above (tCO2e) | | |
Energy consumption used to calculate Scope 1 emissions (kWh) | | |
Energy consumption used to calculate Scope 2 emissions (kWh) | | |
Energy consumption used to calculate Scope 3 emissions (kWh) | | |
Total energy consumption based on above (kWh) | | |
Intensity ratio: tCO2e (gross Scope 1, 2 + 3) per m2 of floor area | | |
Methodology
The 2023/24 SECR footprint is equivalent to 203.40 tCO2e, with the largest portion being made up of emissions from the purchase of electricity at 155 tCO2e. Overall, the emissions have increased by 14% since 2022/23 and a decrease of 4% since 2021/22.
Pause People Earth has calculated the above greenhouse gas (GHG) emissions to cover all material sources of emissions for which Partner Retail Services Limited is responsible. The methodology used was that of the Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (revised edition, 2015). Responsibility for emissions sources was determined using the operational control approach. All emissions sources required under The Companies (Directors’ Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018 are included.
PARTNER RETAIL SERVICES LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 28 APRIL 2024
- 6 -
This report is in accordance with the Greenhouse Gas (GHG) Protocol and Environmental reporting guidelines: including Streamlined Energy and Carbon Reporting requirements, using the Operational Control approach.
Raw data was collated in the form of meter readings from invoices and the consumption was extrapolated across the measurement period using a pro-rata estimation where required, at the one site where meter reads were not available from invoices or another source, energy consumption was calculated using a known kWh per m2 calculated from the other sites.
Total mileage was taken from expensed mileage claims. Conversion of fuel use to kWh, where required, has been carried out using BEIS fuel conversion factors. No mandatory energy use or emissions have been excluded. The total estimated kWh electricity consumption was approximately 19%.
On behalf of the board
S Cochrane
Director
7 October 2024
PARTNER RETAIL SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF PARTNER RETAIL SERVICES LIMITED
- 7 -
Opinion
We have audited the financial statements of Partner Retail Services Limited (the 'company') for the year ended 28 April 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity 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:
give a true and fair view of the state of the company's affairs as at 28 April 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.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
PARTNER RETAIL SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PARTNER RETAIL SERVICES LIMITED
- 8 -
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 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 remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
In planning and designing our audit tests, we identify and assess the risks of material misstatements within the financial statements, whether due to fraud or error. Our assessment of these risks includes consideration of the nature of the industry and sector, the control environment and the business performance along with the results of our enquiries of management, about their own identification and assessment of the risks of irregularities. We are also required to perform specific procedures to respond to the risk of management override.
As a result of this assessment, we considered the opportunities and incentives that may exist within the company for fraud and identified that the greatest area of risk was in relation to management override, the valuation of stock and the completeness of income.
We have obtained an understanding of the legal and regulatory frameworks that the company operates in from discussions with the directors and our knowledge of the company and its industry sector. We have focussed on the provisions of those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act and local tax legislation.
PARTNER RETAIL SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PARTNER RETAIL SERVICES LIMITED
- 9 -
We performed the following audit procedures after consideration of the above risks which included the following:
attending stock counts and testing of stock to ensure they are stated at the lower of cost and net realisable value;
testing sales invoices during the year and after the year end to ensure sales are recorded appropriately and included in the period the accounts relate to correctly;
enquiry of management of actual and potential litigation and claims;
reviewing correspondence with HMRC and the company’s legal advisors;
reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud; and
in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.
The engagement partner has assessed that all engagement team members were made aware of the relevant laws and regulations and potential fraud risks and were reminded to remain alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. The risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
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.
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.
Tracey Wickens
Senior Statutory Auditor
For and on behalf of MGI Midgley Snelling LLP
30 October 2024
Chartered Accountants
Statutory Auditor
Ibex House
Baker Street
Weybridge
Surrey
KT13 8AH
PARTNER RETAIL SERVICES LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 28 APRIL 2024
- 10 -
2024
2023
Notes
£
£
Turnover
3
58,906,478
56,102,737
Cost of sales
(55,220,483)
(52,577,113)
Gross profit
3,685,995
3,525,624
Administrative expenses
(18,389,974)
(20,341,606)
Other operating income
16,351,816
16,464,974
Operating profit/(loss)
7
1,647,837
(351,008)
Interest payable and similar expenses
8
(21,633)
(22,455)
Profit/(loss) before taxation
1,626,204
(373,463)
Tax on profit/(loss)
9
(310,480)
(172,437)
Profit/(loss) for the financial year
1,315,724
(545,900)
The Statement of Comprehensive Income has been prepared on the basis that all operations are continuing operations.
PARTNER RETAIL SERVICES LIMITED
BALANCE SHEET
AS AT 28 APRIL 2024
28 April 2024
- 11 -
28 April 2024
30 April 2023
Notes
£
£
£
£
Current assets
Stocks
10
3,940,930
3,911,409
Debtors
11
9,864,053
10,616,542
Cash at bank and in hand
3,664,120
519,169
17,469,103
15,047,120
Creditors: amounts falling due within one year
12
(15,461,360)
(13,520,135)
Net current assets
2,007,743
1,526,985
Provisions for liabilities
Provisions
13
834,966
-
(834,966)
Net assets
2,007,743
692,019
Capital and reserves
Called up share capital
15
100
100
Profit and loss reserves
2,007,643
691,919
Total equity
2,007,743
692,019
The financial statements were approved by the board of directors and authorised for issue on 7 October 2024 and are signed on its behalf by:
G L Matthew
Director
Company registration number 10415003 (England and Wales)
PARTNER RETAIL SERVICES LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 28 APRIL 2024
- 12 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 25 April 2022
100
1,237,819
1,237,919
Year ended 30 April 2023:
Loss and total comprehensive income
-
(545,900)
(545,900)
Balance at 30 April 2023
100
691,919
692,019
Year ended 28 April 2024:
Profit and total comprehensive income
-
1,315,724
1,315,724
Balance at 28 April 2024
100
2,007,643
2,007,743
PARTNER RETAIL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 APRIL 2024
- 13 -
1
Accounting policies
Company information
Partner Retail Services Limited is a private company limited by shares incorporated in England and Wales. The registered office is Network House, Third Avenue, Globe Park, Marlow, Buckinghamshire, SL7 1EY.
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.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:
- Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
- Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’: Interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
- Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;
- Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The financial statements of the company are consolidated in the financial statements of PJ Capital Holdings Limited. These consolidated financial statements are available from its registered office, Network House, Third Avenue, Global Park, Marlow, Buckinghamshire, SL7 1EY.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods 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, 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.
PARTNER RETAIL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 APRIL 2024
1
Accounting policies
(Continued)
- 14 -
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably.
Other operating income is the contractually obliged amounts received by the company to cover the majority of store related operating overheads.
1.4
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit and loss. Reversals of impairment losses are also recognised in profit and loss.
1.5
Cash and cash equivalents
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.
1.6
Financial instruments
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
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.
1.7
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
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.
PARTNER RETAIL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 APRIL 2024
1
Accounting policies
(Continued)
- 15 -
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.
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
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.11
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.12
Leases
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.
1.13
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.
PARTNER RETAIL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 APRIL 2024
- 16 -
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Stock
Determine whether any provision is required against slow moving or obsolete stock items. These decisions will depend on an assessment of the goods held in stock at the balance sheet date that are either older technology or becoming obsolete, along with a physical inspection to identify any damaged stock items.
Key sources of estimation uncertainty
The company has no key accounting estimates that cast significant uncertainty on the company.
3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Hardware
50,230,280
48,576,110
Accessories
2,438,875
2,084,388
Warranties
4,421,627
3,398,914
Fees & other
1,815,696
2,043,325
58,906,478
56,102,737
2024
2023
£
£
Other revenue
Income received from contracted support
16,880,782
15,630,008
Exceptional item (see note 4)
(528,966)
834,966
All turnover arose within the United Kingdom.
PARTNER RETAIL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 APRIL 2024
- 17 -
4
Exceptional items
2024
2023
£
£
Income
Exceptional items - Other operating income
(528,966)
834,966
Expenditure
Exceptional item - group debt waiver
-
1,944,744
Exceptional item - provision for onerous leases
(528,966)
834,966
(528,966)
2,779,710
During the year, a reversal of the prior year onerous lease provision was made, with deductions for any costs incurred with ending the lease agreement.
A corresponding re-charge has been recognised in the accounts as 'other income' as the costs will be recharged to its customer.
During the prior year, there was also a debt due from a fellow group company waived.
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Administration
14
14
Store staff
264
252
Total
278
266
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
7,930,022
7,516,842
Social security costs
694,413
676,794
Pension costs
189,928
177,321
8,814,363
8,370,957
PARTNER RETAIL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 APRIL 2024
- 18 -
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
465,999
555,423
Company pension contributions to defined contribution schemes
55,526
51,012
521,525
606,435
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2023 - 2).
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
245,131
288,511
Company pension contributions to defined contribution schemes
28,016
26,261
7
Operating profit/(loss)
2024
2023
Operating profit/(loss) for the year is stated after charging:
£
£
Exchange losses
135
510
Fees payable to the company's auditor for the audit of the company's financial statements
23,750
22,250
Operating lease charges
3,464,348
3,578,451
8
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
21,633
22,455
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
310,480
172,437
From 1 April 2023, the UK corporation tax rate changed from 19% to 25%, with marginal relief available for profits between £50,000 and £250,000, therefore the effective tax rate last year differs to this year.
PARTNER RETAIL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 APRIL 2024
9
Taxation
(Continued)
- 19 -
2024
2023
£
£
Profit/(loss) before taxation
1,626,204
(373,463)
Expected tax charge/(credit) based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.50%)
406,551
(72,825)
Tax effect of expenses that are not deductible in determining taxable profit
524
249
Effect of change in corporation tax rate
349
Group relief
(63,412)
(102,273)
Permanent capital allowances in excess of depreciation
(5,976)
(5,810)
Timing differences on adjustments
(27,207)
(26,478)
Non trade loan relationships
379,225
Taxation charge for the year
310,480
172,437
10
Stocks
2024
2023
£
£
Finished goods and goods for resale
3,940,930
3,911,409
The total provision against stock as at the reporting date was £151,111 (2023: £225,594).
11
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
2,476,083
3,764,811
Unpaid share capital
100
100
Amounts owed by parent company
3,789,177
3,024,177
Other debtors
1,814,884
1,677,801
Prepayments and accrued income
1,783,809
1,749,653
9,864,053
10,216,542
2024
2023
Amounts falling due after more than one year:
£
£
Other debtors
400,000
Total debtors
9,864,053
10,616,542
PARTNER RETAIL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 APRIL 2024
11
Debtors
(Continued)
- 20 -
Amounts owed by group undertakings include amounts that are:
- interest free;
- unsecured; and
- repayable within one year if demanded.
12
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
9,174,273
7,712,530
Corporation tax
175,433
16,824
Other taxation and social security
1,320,446
1,130,803
Other creditors
513,069
28,886
Accruals and deferred income
4,278,139
4,631,092
15,461,360
13,520,135
Included in trade creditors are amounts totalling £8,210,161 (2023: £6,599,936) secured by a floating charge against the property, undertakings and assets of the company.
13
Provisions for liabilities
2024
2023
£
£
Provision for onerous leases
-
834,966
Where the unavoidable costs of a lease exceed the economic benefit expected to be received from it, a provision for onerous leases is recognised for the present value of the obligations under the lease. The onerous leases provision included in the previous period relates to two stores that were not generating revenue. For the 2024 period end, the stores have been subsequently closed, and the provision has been released.
At the end of the lease term, the company is obligated to restore the leased premises to its original condition. It is estimated that the expected costs would cost approximately £2,160k, as 12 stores remain in the name of the company. All costs will be recovered through recharges and as such the provision has not been adjusted for in the accounts.
14
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
189,928
177,321
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.
As at the reporting date the company had a £11,537 (2023: £12,093) pension liability.
PARTNER RETAIL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 APRIL 2024
- 21 -
15
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and not fully paid
ordinary shares of 1p each
10,000
10,000
100
100
16
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
3,768,901
3,949,428
Between two and five years
11,513,832
13,278,542
In over five years
4,288,468
7,260,291
19,571,201
24,488,261
17
Ultimate controlling party
The immediate parent company is PRS Holdings Limited, a company incorporated in England and Wales of which the registered office is the same as Partner Retail Services Limited.
The directors consider that the ultimate parent company is PJ Capital Holdings Limited, a company registered in England and Wales. Its registered office is the same as Partner Retail Services Limited.
PJ Capital Holdings Limited is the parent company of the smallest and largest group for which group accounts are prepared. Copies can be obtained from its registered office which is the same as Partner Retail Services Limited.
The ultimate controlling party of the company is P Jones CBE by virtue of indirectly being the majority shareholder in the ultimate parent company PJ Capital Holdings Limited.
18
Related party transactions
Transactions with related parties
During the year the company entered into the following transactions with related parties:
Expenditure
2024
2023
£
£
Other related parties
1,100,872
867,604
PARTNER RETAIL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 APRIL 2024
18
Related party transactions
(Continued)
- 22 -
The following amounts were outstanding at the reporting end date:
2024
2023
Amounts due to related parties
£
£
Other related parties
1,712
26,005
The following amounts were outstanding at the reporting end date:
Other information
The company has taken advantage of the exemption in FRS102.33.1A not to disclose transactions with the other group companies as it is wholly owned within the group. Details of where consolidated accounts can be obtained is included in note 17.
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