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COMPANY REGISTRATION NUMBER: 03639524
C K's Supermarket Limited
Financial Statements
30 April 2024
C K's Supermarket Limited
Financial Statements
Year ended 30 April 2024
Contents
Page
Officers and professional advisers
1
Strategic report
2
Directors' report
5
Independent auditor's report to the member
8
Statement of income and retained earnings
12
Statement of financial position
13
Statement of cash flows
14
Notes to the financial statements
15
C K's Supermarket Limited
Officers and Professional Advisers
The board of directors
Mr C R Kiley
Mr A Littlejohns
Company secretary
Mrs H Y Loveridge
Registered office
Embankment Road
Morfa
Llanelli
SA15 2BT
Auditor
Clements Jones
Chartered accountants & statutory auditor
1 Picton Lane
Swansea
SA1 4AF
Solicitors
Morgan La Roche
PO Box 176
Bay House
Phoenix Way
Swansea
SA7 9YT
C K's Supermarket Limited
Strategic Report
Year ended 30 April 2024
Business review
The principle activity of the company continues to be the retail of goods through its supermarket business. The company's stores are divided into four classifications of Convenience, Fuel Station, High Street and Supermarket. This enables management to tailor the offering in each type of store to the appropriate local market. All stores have progressed satisfactorily and in accordance with the company's long term plans, maintaining expected margins and turnover. Management regularly review acquisition prospects in order to re-invest retained profits. Where no suitable sites can be identified management look to maximise the return on company asset by investing surplus funds.
Development and performance
The company has acquired two new sites during the year and has commenced building stores on them with the intention for them to open during the 2025 accounting period. The company has closed one underperforming store and is assessing other underperfoming stores with the intention to sell or rent to third parties. Due to the current economic climate turnover has remained relatively stable for the year at £75,545,207 (2023: £75,223,470) returning a gross margin as noted below. The resultant gross profit percentage of 27.84% (2023: 25.34%) is in line with management's expectations as it tried not to pass on all the inflationary costs to Customers during the "Cost of Living Crisis" that occurred throughout 2023 and 2024. During the year the Company reassessed funding on loans to third parties, especially in relation to building developments, and assesses the recoverability of these outstanding debts. This has resulted in a significant bad debt provision during the year which effected the Company's operating profit. With the "Cost of Living Crisis" and the UK Government's new budgetary changes it is envisaged that the Company will have a difficult couple of years in maintaining high profitability levels however procedures are being put into place to improve efficiency and wastage as the new stock control system, introduced during 2024, becomes fully opearational.
Key performance indicators
The Directors continually monitor various key performance indicators on a weekly and monthly basis. The Profit and Loss indicators include, but are not limited to sales, margin, wastage and staff costs. Balance sheet indicators are also scrutinised, including creditor days, stock values and cashflow. All of the indicators are used to provide management with an understanding of the development, performance and position of the business. The primary indicators were as follows
2024 2023 2022 2021 2020
£ £ £ £ £
Gross Margin 21,029,035 19,061,220 17,756,181 16,258,618 14,901,498
Staff Costs 8,775,928 8,186,041 7,224,102 6,720,730 6,282,125
Principle risks and uncertainties
The company faces continues to face competition from large national retailers as they push into the smaller convenience stores market but is currently well placed to meet its customer needs. Any expansion by nationals into the small to medium sized supermarket sector could have an adverse impact on the profitability of the business. C K Supermarkets stores continue to play a key role in many communities and our focus has been on maintaining a full and consistent supply of essential products to our customers during these continuing difficult times. Though the company continues to support local suppliers Brexit continues to represent a significant risk to the cost base of some of the products. This is being managed through constant communication with our suppliers and consultation with import/export advisors and based on these assurances as well as those provided by the UK government we do not foresee significant risk of disruption to our supply chain.
Section 172 (1) statement
In accordance with the provisions of The Companies Act (Miscellaneous Reporting) Regulations 2018, C K’s Supermarket Limited is required to include a statement describing how the directors have had regard to the matters set out in s172 (1) (a) to (f) of the Companies Act 2006 when performing their duty under section 172: (a) The likely consequence of any decision in the long term All decisions made by the board are reviewed with the assessment of the long term impact on the business key to decision making process. (b) The interest of the company’s employees The directors are committed to the company being a responsible employer and strives to create a working environment where employees are engaged, informed and involved. Covid-19 has highlighted further the importance of considering staff welfare beyond remuneration levels. (c) The need to foster the company’s business relationships with suppliers, customers and others The Directors have always ensured close working relationships with suppliers as a key risk management strategy of the company. Customer and other stakeholders relationships are at the forefront of decision making as they are key to the success and smooth expansion of the business. (d) The impact of the company’s operations on the community and the environment The Directors recognise the importance of the companies operations on the community and environment and where possible look to minimise this. (e) The desirability of the company maintaining a reputation for high standards of business conduct. The company was founded on core family values and these still play an important part in guiding the way the company makes decisions and is governed. The company’s internal and external procedures enshrine the recent statutory improvements surrounding Anti Bribery, Modern Slavery and GDPR. (f) The need to act fairly between members of the company The shareholder of the group takes an active part in the management of the company.
This report was approved by the board of directors on 23 January 2025 and signed on behalf of the board by:
Mr C R Kiley
Director
C K's Supermarket Limited
Directors' Report
Year ended 30 April 2024
The directors present their report and the financial statements of the company for the year ended 30 April 2024 .
Directors
The directors who served the company during the year were as follows:
Mr C R Kiley
Mr A Littlejohns
Dividends
The directors do not recommend the payment of a dividend.
Future developments
Work is continuing on the development and modification of existing products and services to meet customer requirements through a continuing programme of research and development to take advantage of new technology as it becomes available. During 2024 the company has been installing a new stock control system to improve ordering and wastage analysis at its stores and warehouse with plans for an integrated accounting software to be active towards the end of the 2025 accounting period.
Management are identifying new locations which if deemed suitable after feasibility studies are purchased and opened.
Greenhouse gas emissions and energy consumption
Unit
2024
2023
Emissions resulting from activities for which the company is responsible
tCO2e
1,453
1,453
-------
-------
Total emissions
tCO2e
1,453
1,453
Total energy consumption
kWh
7,035,928
7,030,044
------------
------------
Methodologies for energy and emissions calculations
We have used the following data sources for the report for the: Energy and Fuel Data – Energy supplier billing data CO2 emissions have been calculated using the 2024 UK Government Conversion Factors for Company Reporting. Emissions have been calculated for the company financial year 1 May 2023 to 30 April 2024.
Principal measures taken to increase energy efficiency
The company is currently generating approximately 341,974 KWH (2023 416,638 KWH) of renewable energy from solar panels installed on various stores and warehouse with management looking into the feasibility of increasing this capacity in the future as it acquires more stores. Management are also looking at the more energy efficient products at its various facilities that will reduce its carbon footprint include lighting and refrigeration.
Employment of disabled persons
The director endeavours to ensure that as far as possible the training, career development and promotion of disabled persons is the same as for other employees. Should employees become disabled, every effort is made to ensure that their employment continues and appropriate training is received.
Employee involvement
Regular meetings with employees' representatives are held to inform them of the development of the firm.
Disclosure of information in the strategic report
No information that is required to be contained in the director's report has been contained in the Strategic Report.
Directors' responsibilities statement
The directors are responsible for preparing the strategic report, directors' report and the financial statements in accordance with applicable law and regulations. Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: - select suitable accounting policies and then apply them consistently; - make judgments 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.
Auditor
Each of the persons who is a director at the date of approval of this report confirms that:
- so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.
This report was approved by the board of directors on 23 January 2025 and signed on behalf of the board by:
Mr C R Kiley
Director
C K's Supermarket Limited
Independent Auditor's Report to the Member of C K's Supermarket Limited
Year ended 30 April 2024
Opinion
We have audited the financial statements of C K's Supermarket Limited (the 'company') for the year ended 30 April 2024 which comprise the statement of income and retained earnings, statement of financial position, statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements: - give a true and fair view of the state of the company's affairs as at 30 April 2024 and of its profit for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; - 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 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.
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 directors are responsible for the other information. 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 there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the 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.
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 directors' 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. 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: Based on our understanding of the company and industry, we identified that the principal risks of non-compliance with laws and regulations related to health and safety, food hygiene, licencing, employment law and UK Companies Act and we considered the extent to which any non-compliance might have a material effect on the financial statements. 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 the posting of fraudulent journal entries and transactions or bias in estimates. Audit procedures performed by the engagement team included: - Enquiries with management (including correspondence with legal counsel) regarding their consideration of known or suspected instances of non-compliance with laws and regulation and fraud; - Understood the company's policies and controls in relation to the company's compliance with relevant licence requirements; - Identifying and testing journal entries, in particular any journal entries posted with certain unusual account combinations, or with unusual descriptions, and - Challenging assumptions and judgements made by management in respect of critical accounting judgements and significant accounting estimates; There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. 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 misrepresentation, or through collusion. A further description of our responsibilities for the audit of the financial statements is located on the FRC's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report. As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also: - Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. - Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. Use of our report
This report is made solely to the company's member, 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 member 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 member as a body, for our audit work, for this report, or for the opinions we have formed.
Mr Matthew Clements
(Senior Statutory Auditor)
For and on behalf of
Clements Jones
Chartered accountants & statutory auditor
1 Picton Lane
Swansea
SA1 4AF
23 January 2025
C K's Supermarket Limited
Statement of Income and Retained Earnings
Year ended 30 April 2024
2024
2023
Note
£
£
Turnover
4
75,545,207
75,223,470
Cost of sales
54,516,172
56,162,250
-------------
-------------
Gross profit
21,029,035
19,061,220
Administrative expenses
21,937,460
17,879,442
Other operating income
5
1,182,632
1,013,545
-------------
-------------
Operating profit
6
274,207
2,195,323
Income from other fixed asset investments
10
40,902
45,199
Other interest receivable and similar income
11
49,994
3,645
Interest payable and similar expenses
12
8,000
28,203
-------------
-------------
Profit before taxation
357,103
2,215,964
Tax on profit
13
224,085
445,576
---------
------------
Profit for the financial year and total comprehensive income
133,018
1,770,388
---------
------------
Retained earnings at the start of the year
23,395,972
21,625,584
-------------
-------------
Retained earnings at the end of the year
23,528,990
23,395,972
-------------
-------------
All the activities of the company are from continuing operations.
C K's Supermarket Limited
Statement of Financial Position
30 April 2024
2024
2023
Note
£
£
£
Fixed assets
Intangible assets
14
228,506
280,506
Tangible assets
15
20,025,202
19,143,479
Investments
16
76,913
57,454
-------------
-------------
20,330,621
19,481,439
Current assets
Stocks
17
4,158,552
4,133,956
Debtors
18
6,884,235
8,353,700
Cash at bank and in hand
68,651
1,093,765
-------------
-------------
11,111,438
13,581,421
Creditors: amounts falling due within one year
19
5,705,189
7,539,038
-------------
-------------
Net current assets
5,406,249
6,042,383
-------------
-------------
Total assets less current liabilities
25,736,870
25,523,822
Creditors: amounts falling due after more than one year
20
1,600,000
1,600,000
Provisions
21
607,780
527,750
-------------
-------------
Net assets
23,529,090
23,396,072
-------------
-------------
Capital and reserves
Called up share capital
24
100
100
Profit and loss account
25
23,528,990
23,395,972
-------------
-------------
Shareholder funds
23,529,090
23,396,072
-------------
-------------
These financial statements were approved by the board of directors and authorised for issue on 23 January 2025 , and are signed on behalf of the board by:
Mr C R Kiley
Director
Company registration number: 03639524
C K's Supermarket Limited
Statement of Cash Flows
Year ended 30 April 2024
2024
2023
£
£
Cash flows from operating activities
Profit for the financial year
133,018
1,770,388
Adjustments for:
Depreciation of tangible assets
980,903
925,314
Amortisation of intangible assets
52,000
52,001
Income from other fixed asset investments
( 40,902)
( 45,199)
Other interest receivable and similar income
( 49,994)
( 3,645)
Interest payable and similar expenses
8,000
28,203
Gains on disposal of tangible assets
( 282)
( 62)
Tax on profit
224,085
445,576
Accrued expenses/(income)
172,326
( 212,142)
Changes in:
Stocks
( 24,596)
( 401,849)
Trade and other debtors
1,469,465
( 805,754)
Trade and other creditors
( 882,197)
1,389,080
------------
------------
Cash generated from operations
2,041,826
3,141,911
Interest paid
( 8,000)
( 7,999)
Interest received
30,535
3,645
Tax paid
( 144,055)
( 466,052)
------------
------------
Net cash from operating activities
1,920,306
2,671,505
------------
------------
Cash flows from investing activities
Purchase of tangible assets
( 1,865,554)
( 2,778,136)
Proceeds from sale of tangible assets
3,210
2,220
Purchase of intangible assets
( 215,007)
Dividends received
40,902
45,199
------------
------------
Net cash used in investing activities
( 1,821,442)
( 2,945,724)
------------
------------
Cash flows from financing activities
Proceeds from borrowings
( 1,123,978)
115,448
------------
------------
Net cash (used in)/from financing activities
( 1,123,978)
115,448
------------
------------
Net decrease in cash and cash equivalents
( 1,025,114)
( 158,771)
Cash and cash equivalents at beginning of year
1,093,765
1,252,536
------------
------------
Cash and cash equivalents at end of year
68,651
1,093,765
------------
------------
C K's Supermarket Limited
Notes to the Financial Statements
Year ended 30 April 2024
1. General information
CK's Supermarket Limited is a private company limited by shares and incorporated in Wales. Its registered office is 1 Embankment Road, Morfa, Llanelli. Dyfed SA15 2BT. The company operates within the United Kingdom and its principal activity is that of a supermarket.
2. Statement of compliance
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss. The financial statements are prepared in sterling, which is the functional currency of the entity.
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. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Revenue recognition
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer, usually on despatch of the goods, the amount of revenue can be measured reliably, it is probable that the associated economic benefits will flow to the entity, and the costs incurred or to be incurred in respect of the transactions can be measured reliably.
Taxation
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date. Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
Operating leases
Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.
Goodwill
Goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. It is amortised on a straight-line basis over its useful life. Where a reliable estimate of the useful life of goodwill or intangible assets cannot be made, the life is presumed not to exceed ten years.
Amortisation
Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful economic life of that asset as follows:
Goodwill
-
10% straight line
If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.
Tangible assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Freehold property
-
2% straight line
Short leasehold property
-
5% straight line or over remaining life of lease
Plant and machinery
-
15% reducing balance
Fixtures and fittings
-
25% straight line
Motor vehicles
-
25% reducing balance
Investment property
Investment property is initially recorded at cost, which includes purchase price and any directly attributable expenditure. Investment property is revalued to its fair value at each reporting date and any changes in fair value are recognised in profit or loss.
Investments
Fixed asset investments are initially recorded at cost, and subsequently stated at cost less any accumulated impairment losses.
Listed investments are measured at fair value with changes in fair value being recognised in profit or loss.
Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.
Stock and work in progress
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.
Provisions
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.
Financial instruments
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 entity after deducting all of its financial liabilities. Where the contractual obligations of financial instruments (including share capital) are equivalent to a similar debt instrument, those financial instruments are classed as financial liabilities. Financial liabilities are presented as such in the balance sheet. Finance costs and gains or losses relating to financial liabilities are included in the profit and loss account. Finance costs are calculated so as to produce a constant rate of return on the outstanding liability. Where the contractual terms of share capital do not have any terms meeting the definition of a financial liability then this is classed as an equity instrument. Dividends and distributions relating to equity instruments are debited direct to equity.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund.
4. Turnover
Turnover arises from:
2024
2023
£
£
Sale of goods
74,659,676
74,801,860
Hotel income
885,531
421,610
-------------
-------------
75,545,207
75,223,470
-------------
-------------
The total turnover of the company for the year has been derived from its principal activity wholly undertaken in the UK.
5. Other operating income
2024
2023
£
£
Rental income
542,460
524,263
Other operating income
640,172
489,282
------------
------------
1,182,632
1,013,545
------------
------------
6. Operating profit
Operating profit or loss is stated after charging/crediting:
2024
2023
£
£
Amortisation of intangible assets
52,000
52,001
Depreciation of tangible assets
980,903
925,314
Gains on disposal of tangible assets
( 282)
( 62)
Impairment of trade debtors
1,511,232
34,360
------------
---------
7. Auditor's remuneration
2024
2023
£
£
Fees payable for the audit of the financial statements
15,500
14,000
--------
--------
8. Staff costs
The average number of persons employed by the company during the year, including the directors, amounted to:
2024
2023
No.
No.
Number of retail staff
543
544
Number of warehouse staff
41
37
Number of administrative staff
22
20
Number of management staff
10
4
Number of hotel staff
19
10
----
----
635
615
----
----
The aggregate payroll costs incurred during the year, relating to the above, were:
2024
2023
£
£
Wages and salaries
10,906,202
10,358,968
Social security costs
764,596
703,318
Other pension costs
292,731
174,375
-------------
-------------
11,963,529
11,236,661
-------------
-------------
9. Directors' remuneration
The directors' aggregate remuneration in respect of qualifying services was:
2024
2023
£
£
Remuneration
100,769
102,003
Company contributions to defined contribution pension plans
101,346
1,321
---------
---------
202,115
103,324
---------
---------
10. Income from other fixed asset investments
2024
2023
£
£
Dividends receivable
40,902
45,199
--------
--------
11. Other interest receivable and similar income
2024
2023
£
£
Interest receivable on taxation
30,535
3,645
Gain on fair value adjustment of financial assets at fair value through profit or loss
19,459
--------
-------
49,994
3,645
--------
-------
12. Interest payable and similar expenses
2024
2023
£
£
Dividends paid on shares classed as debt
8,000
8,000
Unrealised loss on investments
20,203
-------
--------
8,000
28,203
-------
--------
13. Tax on profit
Major components of tax expense
2024
2023
£
£
Current tax:
UK current tax expense
142,038
369,437
Adjustments in respect of prior periods
2,017
( 59,656)
---------
---------
Total current tax
144,055
309,781
---------
---------
Deferred tax:
Origination and reversal of timing differences
80,030
135,795
---------
---------
Tax on profit
224,085
445,576
---------
---------
Reconciliation of tax expense
The tax assessed on the profit on ordinary activities for the year is higher than (2023: higher than) the standard rate of corporation tax in the UK of 25 % (2023: 19.49 %).
2024
2023
£
£
Profit on ordinary activities before taxation
357,103
2,215,964
---------
------------
Profit on ordinary activities by rate of tax
89,276
431,961
Adjustment to tax charge in respect of prior periods
2,017
( 59,656)
Effect of expenses not deductible for tax purposes
13,940
5,497
Effect of capital allowances and depreciation
123,717
( 68,021)
Effect of revenue exempt from tax
( 4,865)
Effect of different UK tax rates on some earnings
135,795
---------
------------
Tax on profit
224,085
445,576
---------
------------
14. Intangible assets
Goodwill
£
Cost
At 1 May 2023 and 30 April 2024
4,094,007
------------
Amortisation
At 1 May 2023
3,813,501
Charge for the year
52,000
------------
At 30 April 2024
3,865,501
------------
Carrying amount
At 30 April 2024
228,506
------------
At 30 April 2023
280,506
------------
15. Tangible assets
Land and buildings
Plant and machinery
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 May 2023
19,561,866
3,913,528
1,977,041
484,311
25,936,746
Additions
1,004,456
709,230
151,868
1,865,554
Disposals
( 5,205)
( 5,205)
-------------
------------
------------
---------
-------------
At 30 April 2024
20,566,322
4,622,758
1,977,041
630,974
27,797,095
-------------
------------
------------
---------
-------------
Depreciation
At 1 May 2023
2,703,040
1,908,211
1,800,368
381,648
6,793,267
Charge for the year
432,093
407,182
78,727
62,901
980,903
Disposals
( 2,277)
( 2,277)
-------------
------------
------------
---------
-------------
At 30 April 2024
3,135,133
2,315,393
1,879,095
442,272
7,771,893
-------------
------------
------------
---------
-------------
Carrying amount
At 30 April 2024
17,431,189
2,307,365
97,946
188,702
20,025,202
-------------
------------
------------
---------
-------------
At 30 April 2023
16,858,826
2,005,317
176,673
102,663
19,143,479
-------------
------------
------------
---------
-------------
Included in land and buildings are investment properties. At the start of the year the fair value of these properties was £3,191,479 and in the year the Company acquired a further £80,000. The value of leasehold investment property was impaired by £25,752 during the year and at the 30 April 2024 the fair value was £3,245,727. The effective date of valuation was 30 April 2024 for the investment properties and was carried out by Mr C R Kiley, a company director, who has experience in purchasing and disposing of similar properties. He has carried out the valuation using expected rental yields and similar sales in the localities where available. During the year it was determined that no fair value adjustment was required.
The carrying value of land and buildings of freehold and short leasehold property at the 30 April 2024 were £15,203,259 and £2,227,930 respectively.
16. Investments
Other investments other than loans
£
Cost
At 1 May 2023
57,454
Fair value adjustment
19,459
--------
At 30 April 2024
76,913
--------
Impairment
At 1 May 2023 and 30 April 2024
--------
Carrying amount
At 30 April 2024
76,913
--------
At 30 April 2023
57,454
--------
17. Stocks
2024
2023
£
£
Goods for resale
3,930,699
3,906,103
Work in progress
227,853
227,853
------------
------------
4,158,552
4,133,956
------------
------------
18. Debtors
2024
2023
£
£
Trade debtors
550,078
921,415
Prepayments and accrued income
885,646
874,828
Corporation tax repayable
734,074
347,593
Other debtors
4,714,437
6,209,864
------------
------------
6,884,235
8,353,700
------------
------------
The debtors above include the following amounts falling due after more than one year:
2024
2023
£
£
Other debtors
807,500
1,289,500
---------
------------
19. Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
3,937,557
4,743,599
Accruals and deferred income
309,640
137,314
Social security and other taxes
415,663
474,465
Director loan accounts
832,651
1,956,629
Other creditors
209,678
227,031
------------
------------
5,705,189
7,539,038
------------
------------
The bank has a fixed and floating charge over the company’s assets to secure the bank overdraft.
20. Creditors: amounts falling due after more than one year
2024
2023
£
£
Shares classed as financial liabilities
1,600,000
1,600,000
------------
------------
21. Provisions
Deferred tax (note 22)
£
At 1 May 2023
527,750
Additions
80,030
---------
At 30 April 2024
607,780
---------
22. Deferred tax
The deferred tax included in the statement of financial position is as follows:
2024
2023
£
£
Included in provisions (note 21)
607,780
527,750
---------
---------
The deferred tax account consists of the tax effect of timing differences in respect of:
2024
2023
£
£
Accelerated capital allowances
571,626
491,596
Fair value adjustment of investment property
36,154
36,154
---------
---------
607,780
527,750
---------
---------
23. Employee benefits
Defined contribution plans
The amount recognised in profit or loss as an expense in relation to defined contribution plans was £ 191,384 (2023: £ 173,054 ).
24. Called up share capital
Issued, called up and fully paid
2024
2023
No.
£
No.
£
Amounts presented in equity:
Ordinary shares of £ 1 each
100
100
100
100
----
----
----
----
Amounts presented in liabilities:
Non Redeemable Preference shares of £ 1 each
1,600,000
1,600,000
1,600,000
1,600,000
------------
------------
------------
------------
25. Reserves
Profit and loss account - This reserve records retained earnings and accumulated losses.
26. Analysis of changes in net debt
At 1 May 2023
Cash flows
At 30 Apr 2024
£
£
£
Cash at bank and in hand
1,093,765
(1,025,114)
68,651
Debt due within one year
(1,956,629)
1,123,978
(832,651)
------------
------------
---------
( 862,864)
98,864
( 764,000)
------------
------------
---------
27. Operating leases
The total future minimum lease payments under non-cancellable operating leases are as follows:
2024
2023
£
£
Not later than 1 year
35,000
67,500
Later than 1 year and not later than 5 years
13,281
48,281
--------
---------
48,281
115,781
--------
---------
The company holds leasehold properties that have non-cancellable leases of between 3 to 11 years life remaining. All leases include a provision for upward rent reviews according to prevailing conditions.
C K's Supermarket Limited
Notes to the Financial Statements (continued)
Year ended 30 April 2024
28. Related party transactions
Debtors include £33,740 (2023 £33,740) owed by Premier Hire Centres Limited, a company controlled by the shareholder . Included in other debtors is £1,859,384 (2023 £2,231,911) owed by CRK Investments Limited, a company controlled by the shareholder .
29. Controlling party
The ultimate controlling party is Mr C R Kiley , a director, who owns 100% of the issued share capital of the company.