39
false
false
false
false
true
false
false
false
false
false
false
true
false
false
false
false
false
false
2023-01-01
Sage Accounts Production Advanced 2023 - FRS102_2023
973,256
339,909
48,096
11,288
36,808
xbrli:pure
xbrli:shares
iso4217:GBP
01379735
2023-01-01
2023-12-31
01379735
2023-12-31
01379735
2022-12-31
01379735
2022-01-01
2022-12-31
01379735
2022-12-31
01379735
2021-12-31
01379735
core:FurnitureFittings
2023-01-01
2023-12-31
01379735
core:MotorVehicles
2023-01-01
2023-12-31
01379735
bus:RegisteredOffice
2023-01-01
2023-12-31
01379735
bus:OrdinaryShareClass1
2023-01-01
2023-12-31
01379735
bus:LeadAgentIfApplicable
2023-01-01
2023-12-31
01379735
bus:Director1
2023-01-01
2023-12-31
01379735
bus:Director2
2023-01-01
2023-12-31
01379735
bus:Director3
2023-01-01
2023-12-31
01379735
bus:Director4
2023-01-01
2023-12-31
01379735
bus:Director5
2023-01-01
2023-12-31
01379735
core:WithinOneYear
2023-12-31
01379735
core:WithinOneYear
2022-12-31
01379735
core:LandBuildings
2022-12-31
01379735
core:FurnitureFittings
2022-12-31
01379735
core:MotorVehicles
2022-12-31
01379735
core:LandBuildings
2023-12-31
01379735
core:FurnitureFittings
2023-12-31
01379735
core:MotorVehicles
2023-12-31
01379735
core:UKTax
2023-01-01
2023-12-31
01379735
core:UKTax
2022-01-01
2022-12-31
01379735
core:RetainedEarningsAccumulatedLosses
2023-01-01
2023-12-31
01379735
core:RetainedEarningsAccumulatedLosses
2022-01-01
2022-12-31
01379735
bus:OrdinaryShareClass1
2022-01-01
2022-12-31
01379735
core:RetainedEarningsAccumulatedLosses
2022-12-31
01379735
core:RetainedEarningsAccumulatedLosses
2021-12-31
01379735
core:RetainedEarningsAccumulatedLosses
2023-12-31
01379735
core:RetainedEarningsAccumulatedLosses
2022-12-31
01379735
core:ShareCapital
2023-12-31
01379735
core:ShareCapital
2022-12-31
01379735
core:DeferredTaxation
2023-01-01
2023-12-31
01379735
core:AcceleratedTaxDepreciationDeferredTax
2023-12-31
01379735
core:AcceleratedTaxDepreciationDeferredTax
2022-12-31
01379735
core:LandBuildings
2022-12-31
01379735
core:FurnitureFittings
2022-12-31
01379735
core:MotorVehicles
2022-12-31
01379735
core:DeferredTaxation
2022-12-31
01379735
core:DeferredTaxation
2023-12-31
01379735
bus:LeadAgentIfApplicable
2022-01-01
2022-12-31
01379735
bus:SmallEntities
2023-01-01
2023-12-31
01379735
bus:Audited
2023-01-01
2023-12-31
01379735
bus:PrivateLimitedCompanyLtd
2023-01-01
2023-12-31
01379735
bus:FullAccounts
2023-01-01
2023-12-31
01379735
bus:OrdinaryShareClass1
2023-12-31
01379735
bus:OrdinaryShareClass1
2022-12-31
01379735
core:ShareCapital
2023-01-01
2023-12-31
01379735
core:EntitiesControlledByKeyManagementPersonnel
2023-01-01
2023-12-31
COMPANY REGISTRATION NUMBER:
01379735
Stermat Hardware (Gwynedd) Limited |
|
Stermat Hardware (Gwynedd) Limited |
|
Year ended 31 December 2023
Independent auditor's report to the members |
4 |
|
|
Statement of income and retained earnings |
9 |
|
|
Statement of financial position |
10 |
|
|
Statement of cash flows |
11 |
|
|
Notes to the financial statements |
12 |
|
|
Stermat Hardware (Gwynedd) Limited |
|
Year ended 31 December 2023
PRINCIPAL ACTIVITY The principal activity of the company during the year was the retail sale of fuel and hardware and vehicle hire.
FAIR REVIEW OF THE COMPANY'S BUSINESS The directors are pleased with the company's performance during the year and the company remains profitable. Due to the results for the year, the directors felt able to declare a dividend of £271.00 per share which was paid during the year. FUTURE DEVELOPMENTS The company does not foresee any significant changes to its business activities. Petrol station turnover has increased again during 2023 due to increases in fuel prices, and the hardware stores and garden centre continue to perform well as consumers spend more on DIY products. Cashflow has remained good throughout 2023.
PRINCIPAL RISKS AND UNCERTAINTIES FACING THE BUSINESS The company does not operate in any volatile or risky markets and is not subject to any especially onerous laws or regulations. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES The company uses conventional forms of working capital to finance its day to day activities and as such figures appearing in the accounts reflect the absolute value of amounts recoverable and payable. The directors receive regular reports on these figures in order to manage the company's requirements. POLICY ON THE PAYMENT OF CREDITORS The company has a policy of paying its creditors on or before the due date on payment in order to obtain the best possible credit terms and rebates from suppliers.
This report was approved by the board of directors on 30 January 2025 and signed on behalf of the board by:
Registered office: |
Crossroads |
Gaerwen |
Anglesey |
LL60 6BL |
|
Stermat Hardware (Gwynedd) Limited |
|
Year ended 31 December 2023
The directors present their report and the financial statements of the company for the year ended
31 December 2023
.
Principal activities
The principal activity of the company during the year was the retail sale of fuel and hardware and vehicle hire.
Directors
The directors who served the company during the year were as follows:
Mr L Ellis |
|
Mrs R A Ellis |
|
Mr L E Ellis |
|
Ms C W Ellis |
|
Mr D E Ellis |
|
|
|
Dividends
Particulars of recommended dividends are detailed in note 10 to the financial statements.
Future developments
The future developments of the company have been discussed within the Strategic Report.
Financial instruments
The financial instruments relating to the company have been discussed within the Strategic Report.
Disclosure of information in the strategic report
The company has chosen, in accordance with section 414C(11) of the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013, to set out in the company's Strategic Report, the information required by schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008. This includes information that would have been included in the business review and the principal risks and uncertainties within the Directors' 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; - 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
30 January 2025
and signed on behalf of the board by:
Registered office: |
Crossroads |
Gaerwen |
Anglesey |
LL60 6BL |
|
Stermat Hardware (Gwynedd) Limited |
|
Independent Auditor's Report to the Members of
Stermat Hardware (Gwynedd) Limited |
|
Year ended 31 December 2023
Opinion
We have audited the financial statements of Stermat Hardware (Gwynedd) Limited (the 'company') for the year ended 31 December 2023 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 31 December 2023 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: Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows: - the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; - we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the sector; - we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company; - we assessed the extent of compliance with the laws and regulations through making enquiries of management; and - identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: - making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and - considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. To address the risk of fraud through management bias and override of controls, we: - performed analytical procedures to identify any unusual or unexpected relationships; - tested journal entries to identify unusual transactions; - assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and - investigated the rationale behind significant or unusual transactions. In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: - agreeing financial statement disclosures to underlying supporting documentation; - enquiring of management as to actual and potential litigation and claims; and - reviewing correspondence with HMRC. There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. 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 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.
Rachel Palombella FCA |
(Senior Statutory Auditor) |
|
For and on behalf of |
AGP |
Chartered Accountants & statutory auditor |
Sycamore House |
Sutton Quays Business Park |
Sutton Weaver |
Runcorn |
Cheshire |
WA7 3EH |
|
30 January 2025
Stermat Hardware (Gwynedd) Limited |
|
Statement of Income and Retained Earnings |
|
Year ended 31 December 2023
|
2023 |
2022 |
Note |
£ |
£ |
Turnover |
4 |
10,779,652 |
11,660,501 |
|
|
|
|
Cost of sales |
9,147,941 |
10,162,082 |
|
------------- |
------------- |
Gross profit |
1,631,711 |
1,498,419 |
|
|
|
Administrative expenses |
988,334 |
1,447,913 |
Other operating income |
334,209 |
344,284 |
|
|
------------ |
------------ |
Operating profit |
5 |
977,586 |
394,790 |
|
|
|
|
Other interest receivable and similar income |
8 |
224,767 |
32,887 |
|
------------ |
------------ |
Profit before taxation |
1,202,353 |
427,677 |
|
|
|
|
Tax on profit |
9 |
229,097 |
87,768 |
|
------------ |
--------- |
Profit for the financial year and total comprehensive income |
973,256 |
339,909 |
|
------------ |
--------- |
|
|
|
|
Dividends paid and payable |
10 |
(
1,000,000) |
(
1,000,000) |
|
|
|
|
Retained earnings at the start of the year |
3,801,016 |
4,461,107 |
|
------------ |
------------ |
Retained earnings at the end of the year |
3,774,272 |
3,801,016 |
|
------------ |
------------ |
|
|
|
All the activities of the company are from continuing operations.
Stermat Hardware (Gwynedd) Limited |
|
Statement of Financial Position |
|
31 December 2023
Fixed assets
Tangible assets |
11 |
|
2,496,844 |
2,541,997 |
|
|
|
|
|
Current assets
Stocks |
12 |
49,624 |
|
72,145 |
Debtors |
13 |
1,245,776 |
|
1,232,794 |
Investments |
14 |
854,814 |
|
620,308 |
Cash at bank and in hand |
206,406 |
|
308,906 |
|
------------ |
|
------------ |
|
2,356,620 |
|
2,234,153 |
|
|
|
|
|
Creditors: amounts falling due within one year |
16 |
1,038,694 |
|
923,348 |
|
------------ |
|
------------ |
Net current assets |
|
1,317,926 |
1,310,805 |
|
|
------------ |
------------ |
Total assets less current liabilities |
|
3,814,770 |
3,852,802 |
|
|
|
|
|
Provisions
Taxation including deferred tax |
17 |
|
36,808 |
48,096 |
|
|
------------ |
------------ |
Net assets |
|
3,777,962 |
3,804,706 |
|
|
------------ |
------------ |
|
|
|
|
|
Capital and reserves
Called up share capital |
20 |
|
3,690 |
3,690 |
Profit and loss account |
21 |
|
3,774,272 |
3,801,016 |
|
|
------------ |
------------ |
Shareholders funds |
|
3,777,962 |
3,804,706 |
|
|
------------ |
------------ |
|
|
|
|
|
These financial statements were approved by the
board of directors
and authorised for issue on
30 January 2025
, and are signed on behalf of the board by:
Company registration number:
01379735
Stermat Hardware (Gwynedd) Limited |
|
Year ended 31 December 2023
Cash flows from operating activities
Profit for the financial year |
973,256 |
339,909 |
|
|
|
Adjustments for: |
|
|
Depreciation of tangible assets |
34,096 |
41,738 |
Amounts written back to investments |
– |
(2,376) |
Other interest receivable and similar income |
(
224,767) |
(
32,887) |
Gains on disposal of tangible assets |
(
9,013) |
(
36,563) |
Tax on profit |
229,097 |
87,768 |
Accrued expenses/(income) |
95,500 |
(
69,900) |
|
|
|
Changes in: |
|
|
Stocks |
22,521 |
86,277 |
Trade and other debtors |
(
12,982) |
(
266,937) |
Trade and other creditors |
(
87,218) |
85,736 |
|
------------ |
--------- |
Cash generated from operations |
1,020,490 |
232,765 |
|
|
|
Interest received |
224,767 |
32,887 |
Tax paid |
(
133,103) |
(
355,000) |
|
------------ |
--------- |
Net cash from/(used in) operating activities |
1,112,154 |
(
89,348) |
|
------------ |
--------- |
|
|
|
Cash flows from investing activities
Purchase of tangible assets |
– |
(
18,000) |
Proceeds from sale of tangible assets |
20,070 |
50,527 |
Purchases of other investments |
(
234,506) |
(
18,556)
|
|
------------ |
--------- |
Net cash (used in)/from investing activities |
(
214,436) |
13,971 |
|
------------ |
--------- |
|
|
|
Cash flows from financing activities
Proceeds from borrowings |
– |
(
4,188) |
Dividends paid |
(
1,000,000) |
(
1,000,000) |
|
------------ |
------------ |
Net cash used in financing activities |
(
1,000,000) |
(
1,004,188) |
|
------------ |
------------ |
|
|
|
Net decrease in cash and cash equivalents |
(
102,282) |
(
1,079,565) |
Cash and cash equivalents at beginning of year |
308,688 |
1,388,253 |
|
|
--------- |
------------ |
Cash and cash equivalents at end of year |
15 |
206,406 |
308,688 |
|
|
--------- |
------------ |
|
|
|
|
Stermat Hardware (Gwynedd) Limited |
|
Notes to the Financial Statements |
|
Year ended 31 December 2023
1.
General information
The company is a private company limited by shares, registered in England and Wales. The address of the registered office is Crossroads, Gaerwen, Anglesey, LL60 6BL.
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
These financial statements have been prepared in accordance with applicable United Kingdom accounting standards, including Financial Reporting Standard 102 - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' ('FRS 102'), and with the Companies Act 2006. 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.
Investments
Listed investments are measured at fair value with changes in fair value being recognised in profit or loss.
Debtors
Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of any transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
Creditors
Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
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
Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax. Revenue from the sale of goods is recognised when the significant risks and rewards of ownership 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.
Income tax
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.
Foreign currencies
Foreign currency transactions are initially recorded in the functional currency, by applying the spot exchange rate as at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate ruling at the reporting date, with any gains or losses being taken to the profit and loss account.
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. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.
Depreciation
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:
|
Fixtures and fittings |
- |
15% reducing balance |
|
Motor vehicles |
- |
25% reducing balance |
|
|
|
|
No depreciation has been charged on freehold buildings which is a departure from the Companies Act 2006. The company do not depreciate the freehold buildings as they carry out an annual impairment review and as a result the directors' view is that the current value continues to exceed the original cost.
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. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets. For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units.
Stocks
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
The company only has basic financial instruments and has chosen not to designate financial instruments as at fair value through the profit and loss. Therefore, no disclosures required. A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost. Where investments in non-convertible preference shares and non-puttable ordinary shares or preference shares are publicly traded or their fair value can otherwise be measured reliably, the investment is subsequently measured at fair value with changes in fair value recognised in profit or loss. All other such investments are subsequently measured at cost less impairment. Other financial instruments, including derivatives, are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Other financial instruments are subsequently measured at fair value, with any changes recognised in profit or loss, with the exception of hedging instruments in a designated hedging relationship (see hedge accounting policy). Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately. For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics. Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.
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. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
4.
Turnover
Turnover arises from:
|
2023 |
2022 |
|
£ |
£ |
Sale of goods |
10,779,652 |
11,660,501 |
|
------------- |
------------- |
|
|
|
The whole of the turnover is attributable to the principal activity of the company wholly undertaken in the United Kingdom.
5.
Operating profit
Operating profit or loss is stated after charging/crediting:
|
2023 |
2022 |
|
£ |
£ |
Depreciation of tangible assets |
34,096 |
41,738 |
Gains on disposal of tangible assets |
(
9,013) |
(
36,563) |
Foreign exchange differences |
65 |
– |
|
-------- |
-------- |
|
|
|
6.
Auditor's remuneration
|
2023 |
2022 |
|
£ |
£ |
Fees payable for the audit of the financial statements |
1,530 |
4,500 |
|
------- |
------- |
|
|
|
7.
Staff costs
The average number of persons employed by the company during the year, including the directors, amounted to:
|
2023 |
2022 |
|
No. |
No. |
Number of staff |
39 |
73 |
|
---- |
---- |
|
|
|
The aggregate payroll costs incurred during the year, relating to the above, were:
|
2023 |
2022 |
|
£ |
£ |
Wages and salaries |
613,951 |
984,400 |
Social security costs |
31,193 |
59,633 |
Other pension costs |
7,833 |
12,935 |
|
--------- |
------------ |
|
652,977 |
1,056,968 |
|
--------- |
------------ |
|
|
|
8.
Other interest receivable and similar income
|
2023 |
2022 |
|
£ |
£ |
Interest on cash and cash equivalents |
– |
12,261 |
Gain on fair value adjustment of financial assets at fair value through profit or loss |
200,023 |
2,376 |
Other interest receivable and similar income |
24,744 |
18,250 |
|
--------- |
-------- |
|
224,767 |
32,887 |
|
--------- |
-------- |
|
|
|
9.
Tax on profit
Major components of tax expense
Current tax:
UK current tax expense |
240,385 |
83,388 |
|
|
|
Deferred tax:
Origination and reversal of timing differences |
(
11,288) |
4,380 |
|
--------- |
-------- |
Tax on profit |
229,097 |
87,768 |
|
--------- |
-------- |
|
|
|
Reconciliation of tax expense
The tax assessed on the profit on ordinary activities for the year is lower than (2022: higher than) the
standard rate of corporation tax in the UK
of
25
% (2022:
19
%).
|
2023 |
2022 |
|
£ |
£ |
Profit on ordinary activities before taxation |
1,202,353 |
427,677 |
|
------------ |
--------- |
Profit on ordinary activities by rate of tax |
300,589 |
81,259 |
Sundry adjusting items |
(
71,492)
|
6,509 |
|
------------ |
--------- |
Tax on profit |
229,097 |
87,768 |
|
------------ |
--------- |
|
|
|
10.
Dividends
Dividends paid during the year (excluding those for which a liability existed at the end of the prior year):
|
2023 |
2022 |
|
£ |
£ |
Equity dividends on ordinary shares |
1,000,000 |
1,000,000 |
|
------------ |
------------ |
|
|
|
11.
Tangible assets
|
Land and buildings |
Fixtures and fittings |
Motor vehicles |
Total |
|
£ |
£ |
£ |
£ |
Cost |
|
|
|
|
At 1 January 2023 |
2,349,613 |
928,353 |
258,921 |
3,536,887 |
Disposals |
– |
– |
(
24,632) |
(
24,632) |
|
------------ |
--------- |
--------- |
------------ |
At 31 December 2023 |
2,349,613 |
928,353 |
234,289 |
3,512,255 |
|
------------ |
--------- |
--------- |
------------ |
Depreciation |
|
|
|
|
At 1 January 2023 |
– |
786,096 |
208,794 |
994,890 |
Charge for the year |
– |
21,290 |
12,806 |
34,096 |
Disposals |
– |
– |
(
13,575) |
(
13,575) |
|
------------ |
--------- |
--------- |
------------ |
At 31 December 2023 |
– |
807,386 |
208,025 |
1,015,411 |
|
------------ |
--------- |
--------- |
------------ |
Carrying amount |
|
|
|
|
At 31 December 2023 |
2,349,613 |
120,967 |
26,264 |
2,496,844 |
|
------------ |
--------- |
--------- |
------------ |
At 31 December 2022 |
2,349,613 |
142,257 |
50,127 |
2,541,997 |
|
------------ |
--------- |
--------- |
------------ |
|
|
|
|
|
The company rents out part of the Colwyn Bay, Valley and Treborth shops to Stermat Partnership who trade from these premises. As well as the shop floor, both premises also have a significant storage area and office space which are also used by the limited company and so the directors consider that these are mixed use properties, not investment properties in accordance with FRS 102. The properties are therefore reflected within fixed assets at cost.
12.
Stocks
|
2023 |
2022 |
|
£ |
£ |
Finished goods and goods for resale |
49,624 |
72,145 |
|
-------- |
-------- |
|
|
|
13.
Debtors
|
2023 |
2022 |
|
£ |
£ |
Prepayments and accrued income |
4,178 |
185,319 |
Directors loan account |
1,041,598 |
996,104 |
Other debtors |
200,000 |
51,371 |
|
------------ |
------------ |
|
1,245,776 |
1,232,794 |
|
------------ |
------------ |
|
|
|
14.
Investments
|
2023 |
2022 |
|
£ |
£ |
Listed investments - UK |
854,814 |
620,308 |
|
--------- |
--------- |
|
|
|
The listed shares have been recognised at their fair value as at the year end date.
15.
Cash and cash equivalents
Cash and cash equivalents comprise the following:
|
2023 |
2022 |
|
£ |
£ |
Cash at bank and in hand |
206,406 |
308,906 |
Bank overdrafts |
– |
(
218) |
|
--------- |
--------- |
|
206,406 |
308,688 |
|
--------- |
--------- |
|
|
|
16.
Creditors:
amounts falling due within one year
|
2023 |
2022 |
|
£ |
£ |
Bank loans and overdrafts |
– |
218 |
Trade creditors |
519,343 |
595,747 |
Accruals and deferred income |
254,000 |
158,500 |
Corporation tax |
214,999 |
107,717 |
Social security and other taxes |
37,650 |
7,972 |
Other creditors |
12,702 |
53,194 |
|
------------ |
--------- |
|
1,038,694 |
923,348 |
|
------------ |
--------- |
|
|
|
17.
Provisions
|
Deferred tax (note 18) |
|
£ |
At 1 January 2023 |
48,096 |
Charge against provision |
(
11,288) |
|
-------- |
At 31 December 2023 |
36,808 |
|
-------- |
|
|
18.
Deferred tax
The deferred tax included in the statement of financial position is as follows:
|
2023 |
2022 |
|
£ |
£ |
Included in provisions (note 17) |
36,808 |
48,096 |
|
-------- |
-------- |
|
|
|
The deferred tax account consists of the tax effect of timing differences in respect of:
|
2023 |
2022 |
|
£ |
£ |
Accelerated capital allowances |
36,808 |
48,096 |
|
-------- |
-------- |
|
|
|
19.
Employee benefits
Defined contribution plans
The amount recognised in profit or loss as an expense in relation to defined contribution plans was £
7,833
(2022: £
12,935
).
At the year end, there was an amount due to the fund of £947 (2022: £735) this is included in other creditors
.
20.
Called up share capital
Issued, called up and fully paid
|
2023 |
2022 |
|
No. |
£ |
No. |
£ |
Ordinary shares of £ 1 each |
3,690 |
3,690 |
3,690 |
3,690 |
|
------- |
------- |
------- |
------- |
|
|
|
|
|
All ordinary shares rank equally in all respects.
21.
Reserves
The reserves on the balance sheet include the following: Called up share capital - this represents the nominal value of shares that have been issued. Profit and loss account - this records retained earnings.
22.
Analysis of changes in net debt
|
At 1 Jan 2023 |
Cash flows |
At 31 Dec 2023 |
|
£ |
£ |
£ |
Cash at bank and in hand |
308,906 |
(102,500) |
206,406 |
Bank overdrafts |
(218) |
218 |
– |
Current asset investments |
620,308 |
234,506 |
854,814 |
|
--------- |
--------- |
------------ |
|
928,996 |
132,224 |
1,061,220 |
|
--------- |
--------- |
------------ |
|
|
|
|
23.
Charges on assets
There is a legal charge dated 03 January 1985 over freehold 95, 97 and 99 Abergele Road, Colwyn Bay, Clwyd
There is a legal charge dated 13 April 1984 over freehold plot of land at Valley, Anglesey.
There is a legal charge dated 27 June 1980 over freehold land & premises being the square Holyhead Road, Valley, Anglesey, together with all fixtures.
Stermat Hardware (Gwynedd) Limited |
|
Notes to the Financial Statements (continued) |
|
Year ended 31 December 2023
24.
Directors' advances, credits and guarantees
During the year the directors entered into the following advances and credits with the company: | | 2023 Balance brought forward | 2023 Advances / (credits) to the directors | 2023 Repaid by the directors | 2023 Balance carried forward |
| | £ | £ | £ | £ |
| Mr L & Mrs R Ellis | 996,104 | 1,044,494 | (999,000) | 1,041,598 |
| | | | | |
| | 2022 Balance brought forward | 2022 Advances / (credits) to the directors | 2022 Repaid by the directors | 2022 Balance carried forward |
| | £ | £ | £ | £ |
| Mr L & Mrs R Ellis | (4,188) | 1,000,292 | – | 996,104 |
| | | | | |
The overdrawn directors loan account was repaid to the company by the end of February 2024.
25.
Related party transactions
As the shareholdings of the company are equal between all 5 of the directors, the directors consider that there is no controlling party. Stermat Partnership, a business owned by
Mr L Ellis
, Mr L E Ellis
, Ms C W Ellis
and Mr D E Ellis
, rents the Colwyn Bay, Valley and Treborth shops from the company. The company has charged the business £232,000 in respect of rent. The Directors consider that any goodwill relating to the trade of the Colwyn Bay, Valley and Treborth shops is attached to the bricks and mortar of the properties due to their location and the properties have been retained by the limited company. In addition, the company charged Barron Travel, a business owned by Mr L Ellis
, rent of £80,000. As at the year end, there were amounts included in deferred income of £40,000 in respect of Barron Travel and £60,000 in respect of Stermat Partnership. Also, £200,000 included in other debtors in respect of a deposit to Mr Ellis for a warehouse that the company intend to purchase from him. During the year, the company was charged rent for storage of £20,000 by Stermat Partnership and £40,000 by Stermat Car & Van Hire, both businesses are owned by
Mr L Ellis
, Mr L E Ellis, Ms C W Ellis and Mr D E Ellis. In addition, the company was charged for the repair and parts for its motor vehicles of £43,200 by Stermat Partnership. At the year end, there were amounts included in accruals of £80,000 in respect of Stermat Car & Van Hire and £63,200 in respect of Stermat Partnership. No other transactions with related parties were undertaken such as are required to be disclosed.