Company registration number 06653474 (England and Wales)
CHESHIRE RETAIL (NW) LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
CHESHIRE RETAIL (NW) LTD
COMPANY INFORMATION
Director
Mr N Soni
Company number
06653474
Registered office
135 Higher Parr Street
St. Helens
Merseyside
United Kingdom
WA9 1DA
Auditor
Hentons
Northgate
118 North Street
Leeds
West Yorkshire
LS2 7PN
CHESHIRE RETAIL (NW) LTD
CONTENTS
Page
Strategic report
1 - 2
Director's report
3 - 4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 21
CHESHIRE RETAIL (NW) LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 1 -

The director presents the strategic report for the year ended 30 June 2024.

Review of the business

2024 was a pivotal year for Cheshire Retail NW Ltd, marked by both opportunities and challenges. The broader retail landscape faced a shifting dynamic, driven by changes in consumer behaviour, economic conditions and regulatory adjustments. This report outlines key events and challenges that influenced our business and details the measures taken to ensure resilience and growth.

 

 

The company operates 15 retail outlets in the Northwest offering big brand products at low prices. A summary of the key financial highlights is as below:

 

 

 

Year ended 2024

Year ended 2023

Turnover

£17,130,805

£17,485,991

Profit before tax

£ 684,449

£ 553,366

Key issues and challenges in 2024

Minimum Wage Increase

In April 2024, the national minimum wage was increased, resulting in a significant rise in operational costs for our business. This necessitated a review of existing cost structures. Measures were taken to offset the financial impact including:

Reduction in Tobacco sales

A continued reduction in tobacco sales nationally presented a challenge. As this historically strong category continues to decline, we've had to:

Shift towards online shopping

The retail industry experienced further pressures from the rise in online shopping. Consumer preferences continue to evolve, and we saw a decline in footfall across our stores. To remain competitive, Cheshire Retail NW Ltd:

 

Price inflation on stock

Inflationary pressures drove significant and frequent increases in the cost of stock, with hundreds of prices rising weekly. This presented logistical and financial challenges, particularly around price management and maintaining competitive pricing. Our approach included:

Opportunities in 2024

Electricity Price Decrease

A notable reduction in electricity prices provided some relief in operating costs. Cheshire Retail NW Ltd capitalised on this by:

Supplier Negotiations

Our proactive approach to supplier negotiations yielded positive outcomes. By securing better terms, we not only offset some cost pressures but also strengthened our relationships with key suppliers, ensuring greater stability for the business.

CHESHIRE RETAIL (NW) LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 2 -
Looking ahead

While 2024 was a challenging year, Cheshire Retail NW Ltd has demonstrated resilience and adaptability. Moving forward, the business will focus on:

Conclusion

Despite economic and industry wide challenges, Cheshire Retail NW Ltd navigated 2024 with a strategic approach . While there is still work to be done to adapt to evolving market conditions, the steps taken this year have laid a solid foundation for growth and stability in 2025 and beyond.

On behalf of the board

Mr N Soni
Director
4 February 2025
CHESHIRE RETAIL (NW) LTD
DIRECTOR'S REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 3 -

The director presents his annual report and financial statements for the year ended 30 June 2024.

Principal activities

The principal activity of the company continued to be that of retail store.

Results and dividends

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

No ordinary dividends were paid. The director does not recommend payment of a final dividend.

Preference dividends were paid amounting to £82,240.

Director

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

Mr N Soni
Auditor

The auditor, Hentons, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Statement of director's responsibilities

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

Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law, the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period.

In preparing these financial statements, the director is required to:

The director is responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Disclosure in the Strategic Report

The directors review of the business and their consideration of the risks and uncertainties surrounding the business maybe found in the Strategic Report.

Statement of disclosure to auditor

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

CHESHIRE RETAIL (NW) LTD
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 4 -
Medium-sized companies exemption

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

On behalf of the board
Mr N Soni
Director
4 February 2025
CHESHIRE RETAIL (NW) LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF CHESHIRE RETAIL (NW) LTD
- 5 -
Opinion

We have audited the financial statements of Cheshire Retail (NW) Ltd (the 'company') for the year ended 30 June 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

 

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

 

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

Other information

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

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

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

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

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of director

As explained more fully in the director's responsibilities statement, the director is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the director determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the director is responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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

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

Our audit procedures to respond to the risks identified included the following:

 

 

 

 

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

CHESHIRE RETAIL (NW) LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF CHESHIRE RETAIL (NW) LTD (CONTINUED)
- 7 -

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.

Chris Howitt (Senior Statutory Auditor)
For and on behalf of Hentons, Statutory Auditor
Chartered Accountants
Northgate
118 North Street
Leeds
West Yorkshire
LS2 7PN
4 February 2025
CHESHIRE RETAIL (NW) LTD
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
17,130,805
17,485,991
Cost of sales
(12,841,027)
(13,311,702)
Gross profit
4,289,778
4,174,289
Administrative expenses
(4,048,158)
(4,036,844)
Other operating income
442,968
415,921
Operating profit
4
684,588
553,366
Interest payable and similar expenses
7
(140)
-
0
Profit before taxation
684,448
553,366
Tax on profit
8
(171,819)
(125,634)
Profit for the financial year
512,629
427,732

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

The notes on pages 12 to 21 form part of these financial statements.

CHESHIRE RETAIL (NW) LTD
BALANCE SHEET
AS AT
30 JUNE 2024
30 June 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
10
280,199
340,085
Tangible assets
11
195,527
139,585
475,726
479,670
Current assets
Stocks
12
1,081,580
1,008,027
Debtors
13
1,522,583
1,405,440
Cash at bank and in hand
1,057,090
1,121,820
3,661,253
3,535,287
Creditors: amounts falling due within one year
14
(1,256,989)
(1,562,503)
Net current assets
2,404,264
1,972,784
Total assets less current liabilities
2,879,990
2,452,454
Creditors: amounts falling due after more than one year
15
-
0
(17,359)
Provisions for liabilities
Deferred tax liability
17
48,882
34,376
(48,882)
(34,376)
Net assets
2,831,108
2,400,719
Capital and reserves
Called up share capital
19
1,200
1,200
Profit and loss reserves
2,829,908
2,399,519
Total equity
2,831,108
2,400,719

The notes on pages 12 to 21 form part of these financial statements.

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved and signed by the director and authorised for issue on 4 February 2025
Mr N Soni
Director
Company registration number 06653474 (England and Wales)
CHESHIRE RETAIL (NW) LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024
- 10 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 July 2022
1,200
2,029,205
2,030,405
Year ended 30 June 2023:
Profit and total comprehensive income
-
427,732
427,732
Dividends
9
-
(57,418)
(57,418)
Balance at 30 June 2023
1,200
2,399,519
2,400,719
Year ended 30 June 2024:
Profit and total comprehensive income
-
512,629
512,629
Dividends
9
-
(82,240)
(82,240)
Balance at 30 June 2024
1,200
2,829,908
2,831,108

The notes on pages 12 to 21 form part of these financial statements.

CHESHIRE RETAIL (NW) LTD
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2024
- 11 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
21
313,526
1,739,883
Interest paid
(140)
-
0
Income taxes paid
(184,456)
(123,193)
Net cash inflow from operating activities
128,930
1,616,690
Investing activities
Purchase of tangible fixed assets
(86,929)
(32,435)
Net cash used in investing activities
(86,929)
(32,435)
Financing activities
Repayment of bank loans
-
0
(968,785)
Payment of finance leases obligations
(24,491)
(24,969)
Dividends paid
(82,240)
(57,418)
Net cash used in financing activities
(106,731)
(1,051,172)
Net (decrease)/increase in cash and cash equivalents
(64,730)
533,083
Cash and cash equivalents at beginning of year
1,121,820
588,737
Cash and cash equivalents at end of year
1,057,090
1,121,820

The notes on pages 12 to 21 form part of these financial statements.

CHESHIRE RETAIL (NW) LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
- 12 -
1
Accounting policies
Company information

Cheshire Retail (NW) Ltd is a private company limited by shares incorporated in England and Wales. The registered office is 135 Higher Parr Street, St. Helens, Merseyside, United Kingdom, WA9 1DA.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Going concern

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

1.3
Turnover

Turnover is measured at the fair value of consideration received and receivable, excluding VAT. Turnover includes all retail shop sales, along with lottery commissions and other related income.

 

1.4
Intangible fixed assets - goodwill

Goodwill, being the amount paid in connection with the acquisition of businesses in 2012, 2016, 2019, 2020, 2021 and 2022, are being amortised over their estimated useful lives of ten years.

Goodwill arises on business acquisitions and represents the excess of the cost of the acquisition over the company's interest in the net amount of identifiable assets, liabilities and contingent liabilities of the acquired business.

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 cannot be measured, the life is presumed not to exceed ten years.

 

1.5
Tangible fixed assets

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

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

Fixtures, fittings and plant
15% Reducing balance
Motor vehicles
20% Reducing balance

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

CHESHIRE RETAIL (NW) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 13 -
1.6
Stocks

Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow moving items. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads.

 

1.7
Cash and cash equivalents

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

1.8
Financial instruments

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

 

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

 

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

Other financial assets

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

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

CHESHIRE RETAIL (NW) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 14 -
Other financial liabilities

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

 

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

Derecognition of financial liabilities

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

1.9
Taxation

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

Current tax

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

Deferred tax

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

 

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

 

Current and deferred tax assets and liabilities are not discounted.

 

1.10
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.11
Retirement benefits

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

1.12
Leases

The finance element of the rental payment is charged to the income statement on a straight line basis.

 

CHESHIRE RETAIL (NW) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 15 -

Rentals payable under operating leases are charged against income on a straight line basis over the lease term.

1.13

Dividends

Proposed dividends are only included as liabilities in the statement of financial position when their payment has been approved by the shareholders prior to the statement of financial position date.

1.14

Preference dividends

Where preference shares are classed as liabilities rather than equity any preference dividends paid are included in interest payable and similar charges within the income statement.

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the director is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3
Turnover and other revenue
2024
2023
£
£
Other revenue
Commissions received
98,735
97,981
4
Operating profit
2024
2023
Operating profit for the year is stated after charging:
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
11,500
7,500
Depreciation of owned tangible fixed assets
30,987
25,940
Amortisation of intangible assets
59,886
59,886
Operating lease charges
68,723
97,239
CHESHIRE RETAIL (NW) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 16 -
5
Employees

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

2024
2023
Number
Number
Administration
6
5
Operations
162
163
Total
168
168

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
2,799,831
2,708,404
Pension costs
23,567
26,995
2,823,398
2,735,399
6
Director's remuneration
2024
2023
£
£
Remuneration for qualifying services
10,929
10,616
7
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
140
-
8
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
157,313
123,976
Deferred tax
Origination and reversal of timing differences
14,506
1,658
Total tax charge
171,819
125,634
CHESHIRE RETAIL (NW) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
8
Taxation
(Continued)
- 17 -

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
Profit before taxation
684,448
553,366
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 20.50%)
171,112
113,440
Tax effect of expenses that are not deductible in determining taxable profit
186
694
Permanent capital allowances in excess of depreciation
(13,985)
(3,328)
Depreciation on assets not qualifying for tax allowances
-
0
12,277
Supertax deduction
-
0
(623)
Deferred tax movement
14,506
1,658
Changes in tax rates
-
0
1,516
Taxation charge for the year
171,819
125,634
9
Dividends
2024
2023
£
£
Final paid
82,240
57,418
10
Intangible fixed assets
Goodwill
£
Cost
At 1 July 2023 and 30 June 2024
598,864
Amortisation and impairment
At 1 July 2023
258,779
Amortisation charged for the year
59,886
At 30 June 2024
318,665
Carrying amount
At 30 June 2024
280,199
At 30 June 2023
340,085

More information on impairment movements in the year is given in note .

CHESHIRE RETAIL (NW) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 18 -
11
Tangible fixed assets
Fixtures, fittings and plant
Motor vehicles
Total
£
£
£
Cost
At 1 July 2023
186,636
128,375
315,011
Additions
86,929
-
0
86,929
At 30 June 2024
273,565
128,375
401,940
Depreciation and impairment
At 1 July 2023
113,011
62,415
175,426
Depreciation charged in the year
17,795
13,192
30,987
At 30 June 2024
130,806
75,607
206,413
Carrying amount
At 30 June 2024
142,759
52,768
195,527
At 30 June 2023
73,625
65,960
139,585

Included within the above are assets held on hire purchase. The net book value of these assets is £46,129 (2023 - £57,661) and the depreciation charge for the year is £11,532 (2023 - £14,415).

12
Stocks
2024
2023
£
£
Raw materials and consumables
1,081,580
1,008,027
13
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
60,099
38,132
Other debtors
1,380,413
1,300,158
Prepayments and accrued income
82,071
67,150
1,522,583
1,405,440
CHESHIRE RETAIL (NW) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 19 -
14
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Obligations under finance leases
16
17,359
24,491
Trade creditors
684,285
956,387
Corporation tax
157,240
184,383
Other taxation and social security
161,432
154,816
Other creditors
164,628
153,143
Accruals and deferred income
72,045
89,283
1,256,989
1,562,503
15
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Obligations under finance leases
16
-
0
17,359
16
Hire purchase
2024
2023
Future hire purchase obligations due:
£
£
Within one year
17,359
24,491
In two to five years
-
0
17,359
17,359
41,850

The hire purchase liabilities are secured over assets held by the company.

17
Deferred taxation

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

Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
48,882
33,949
Retirement benefit obligations
-
427
48,882
34,376
CHESHIRE RETAIL (NW) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
17
Deferred taxation
(Continued)
- 20 -
2024
Movements in the year:
£
Liability at 1 July 2023
34,376
Charge to profit or loss
14,506
Liability at 30 June 2024
48,882
18
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
23,567
26,995

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund. At 30 June 2023 pension contributions of £4,857 (2022 - £5,185) were payable and included in other creditors.

19
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100
100
100
100
A Ordinary shares of £1 each
1,000
1,000
1,000
1,000
1,100
1,100
1,100
1,100
2024
2023
2024
2023
Preference share capital
Number
Number
£
£
Issued and fully paid
Preference shares of £1 each
100
100
100
100
Preference shares classified as equity
100
100
Total equity share capital
1,200
1,200
  1. Each ordinary share has full voting rights, rights to dividends, capital and winding up distribution.

  2. Each Preference share has full rights in respect of dividends and distribution, but no voting rights.

  3. Each Class A Ordinary share has no voting rights or rights to capital distribution, but may be considered for dividends from time to time at the director’s discretion.

CHESHIRE RETAIL (NW) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 21 -
20
Operating lease commitments
Lessee

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

2024
2023
£
£
Within one year
286,778
370,374
Between two and five years
398,900
665,802
In over five years
33,281
53,156
718,959
1,089,332
21
Cash generated from operations
2024
2023
£
£
Profit after taxation
512,629
427,732
Adjustments for:
Taxation charged
171,819
125,634
Finance costs
140
-
0
Amortisation and impairment of intangible assets
59,886
59,886
Depreciation and impairment of tangible fixed assets
30,987
25,940
Movements in working capital:
Increase in stocks
(73,553)
(190,768)
(Increase)/decrease in debtors
(117,143)
1,063,233
(Decrease)/increase in creditors
(271,239)
228,226
Cash generated from operations
313,526
1,739,883
22
Analysis of changes in net funds
1 July 2023
Cash flows
30 June 2024
£
£
£
Cash at bank and in hand
1,121,820
(64,730)
1,057,090
Obligations under finance leases
(41,850)
24,491
(17,359)
1,079,970
(40,239)
1,039,731
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