REGISTERED NUMBER: 11341931 (England and Wales) |
Group Strategic Report, Report of the Director and |
Consolidated Financial Statements for the Year Ended 31 May 2024 |
for |
Yip & Sons Limited |
REGISTERED NUMBER: 11341931 (England and Wales) |
Group Strategic Report, Report of the Director and |
Consolidated Financial Statements for the Year Ended 31 May 2024 |
for |
Yip & Sons Limited |
Yip & Sons Limited (Registered number: 11341931) |
Contents of the Consolidated Financial Statements |
for the Year Ended 31 May 2024 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Director | 3 |
Report of the Independent Auditors | 5 |
Consolidated Income Statement | 8 |
Consolidated Other Comprehensive Income | 9 |
Consolidated Balance Sheet | 10 |
Company Balance Sheet | 12 |
Consolidated Statement of Changes in Equity | 13 |
Company Statement of Changes in Equity | 14 |
Consolidated Cash Flow Statement | 15 |
Notes to the Consolidated Cash Flow Statement | 16 |
Notes to the Consolidated Financial Statements | 18 |
Yip & Sons Limited |
Company Information |
for the Year Ended 31 May 2024 |
DIRECTOR: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants |
Lansdowne House |
85 Buxton Road |
Stockport |
Cheshire |
SK2 6LR |
Yip & Sons Limited (Registered number: 11341931) |
Group Strategic Report |
for the Year Ended 31 May 2024 |
The director presents her strategic report of the company and the group for the year ended 31 May 2024. |
The results for the year and financial position of the company and group are shown in the annexed financial statements. |
The principal activities of the group in the year under review were that of wholesale and retail food distribution, karaoke bar and property landlords. |
During the year the turnover remained at £24.2m and the gross profit margin decreased from 21.0% to 18.8%. |
The group made an operating profit of £892,806 (2023 £989,389). The movement is mainly due to a lower gross profit percentage in the wholesale and retail food distribution business. |
The director considers the main risks for the following year to be the continuing recessionary and inflationary market pressures in the UK economy and, in particular, in the retail trade; together with increased competition from multiple retail and wholesale chains. |
The director remains satisfied that the group has sufficient resources, both financial and non-financial to exploit growth opportunities as they arise and deal with any uncertainty in the market. |
ON BEHALF OF THE BOARD: |
13 February 2025 |
Yip & Sons Limited (Registered number: 11341931) |
Report of the Director |
for the Year Ended 31 May 2024 |
The director presents her report with the financial statements of the company and the group for the year ended 31 May 2024. |
DIVIDENDS |
An interim dividend of £6.64 per share was paid on 31 May 2024. The director recommends that no final dividend be paid. |
The total distribution of dividends for the year ended 31 May 2024 will be £ 84,000 . |
DIRECTOR |
STATEMENT OF DIRECTOR'S RESPONSIBILITIES |
The director is responsible for preparing the Group Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations. |
Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the director must not approve the financial statements unless she is satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the director is required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The director is responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable her to ensure that the financial statements comply with the Companies Act 2006. She is also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the director is aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and she has taken all the steps that she ought to have taken as a director in order to make herself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
Yip & Sons Limited (Registered number: 11341931) |
Report of the Director |
for the Year Ended 31 May 2024 |
AUDITORS |
The auditors, Lucas Reis Ltd, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
Yip & Sons Limited |
Opinion |
We have audited the financial statements of Yip & Sons Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 May 2024 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the group's and of the parent company affairs as at 31 May 2024 and of the group's profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report. |
Other information |
The director is responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Director, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Report of the Independent Auditors to the Members of |
Yip & Sons Limited |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Group Strategic Report and the Report of the Director for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Director have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Director. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of director's remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of director |
As explained more fully in the Statement of Director's Responsibilities set out on page three, the director is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the director determines necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the director is responsible for assessing the group's and the parent 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 group or the parent company or to cease operations, or has no realistic alternative but to do so. |
Report of the Independent Auditors to the Members of |
Yip & Sons Limited |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
We considered the nature of the company's industry and its control environment, and reviewed the company's policies and procedures relating to fraud and compliance with laws and regulations and enquired with management. We obtained an understanding of the legal and regulatory frameworks that the company operates in and identified key laws and regulations. |
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 for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
Lucas Reis Ltd |
Chartered Accountants |
Lansdowne House |
85 Buxton Road |
Stockport |
Cheshire |
SK2 6LR |
Yip & Sons Limited (Registered number: 11341931) |
Consolidated Income Statement |
for the Year Ended 31 May 2024 |
31.5.24 | 31.5.23 |
Notes | £ | £ | £ | £ |
TURNOVER | 3 | 24,201,621 | 24,190,437 |
Cost of sales | 19,664,847 | 19,112,583 |
GROSS PROFIT | 4,536,774 | 5,077,854 |
Distribution costs | 10,411 | 27,323 |
Administrative expenses | 3,800,115 | 4,121,142 |
3,810,526 | 4,148,465 |
726,248 | 929,389 |
Other operating income | 166,558 | 60,000 |
OPERATING PROFIT | 5 | 892,806 | 989,389 |
Interest receivable and similar income | 227 | 123 |
893,033 | 989,512 |
Interest payable and similar expenses | 6 | 187,650 | 130,559 |
PROFIT BEFORE TAXATION | 705,383 | 858,953 |
Tax on profit | 7 | 267,239 | 190,438 |
PROFIT FOR THE FINANCIAL YEAR |
Profit attributable to: |
Owners of the parent | 418,377 | 642,934 |
Non-controlling interests | 19,767 | 25,581 |
438,144 | 668,515 |
Yip & Sons Limited (Registered number: 11341931) |
Consolidated Other Comprehensive Income |
for the Year Ended 31 May 2024 |
31.5.24 | 31.5.23 |
Notes | £ | £ |
PROFIT FOR THE YEAR | 438,144 | 668,515 |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
438,144 |
668,515 |
Total comprehensive income attributable to: |
Owners of the parent | 418,377 | 642,934 |
Non-controlling interests | 19,767 | 25,581 |
438,144 | 668,515 |
Yip & Sons Limited (Registered number: 11341931) |
Consolidated Balance Sheet |
31 May 2024 |
31.5.24 | 31.5.23 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 10 | - | - |
Tangible assets | 11 | 3,893,923 | 3,656,039 |
Investments | 12 | 50 | 100 |
Investment property | 13 | 4,122,707 | 4,122,707 |
8,016,680 | 7,778,846 |
CURRENT ASSETS |
Stocks | 14 | 2,330,434 | 2,405,149 |
Debtors | 15 | 3,684,089 | 3,019,163 |
Cash at bank and in hand | 246,063 | 503,409 |
6,260,586 | 5,927,721 |
CREDITORS |
Amounts falling due within one year | 16 | 4,377,791 | 4,516,619 |
NET CURRENT ASSETS | 1,882,795 | 1,411,102 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
9,899,475 |
9,189,948 |
CREDITORS |
Amounts falling due after more than one year |
17 |
(1,588,252 |
) |
(1,370,179 |
) |
PROVISIONS FOR LIABILITIES | 20 | (288,936 | ) | (139,626 | ) |
NET ASSETS | 8,022,287 | 7,680,143 |
Yip & Sons Limited (Registered number: 11341931) |
Consolidated Balance Sheet - continued |
31 May 2024 |
31.5.24 | 31.5.23 |
Notes | £ | £ | £ | £ |
CAPITAL AND RESERVES |
Called up share capital | 21 | 12,650 | 12,650 |
Revaluation reserve | 22 | 1,387,645 | 1,425,103 |
Retained earnings | 22 | 6,364,517 | 5,992,682 |
SHAREHOLDERS' FUNDS | 7,764,812 | 7,430,435 |
NON-CONTROLLING INTERESTS | 23 | 257,475 | 249,708 |
TOTAL EQUITY | 8,022,287 | 7,680,143 |
The financial statements were approved by the director and authorised for issue on 13 February 2025 and were signed by: |
Mrs D Fong Ching Yip - Director |
Yip & Sons Limited (Registered number: 11341931) |
Company Balance Sheet |
31 May 2024 |
31.5.24 | 31.5.23 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 10 |
Tangible assets | 11 |
Investments | 12 |
Investment property | 13 |
CREDITORS |
Amounts falling due within one year | 16 |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
17 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 21 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 84,000 | 76,000 |
The financial statements were approved by the director and authorised for issue on |
Yip & Sons Limited (Registered number: 11341931) |
Consolidated Statement of Changes in Equity |
for the Year Ended 31 May 2024 |
Called up |
share | Retained | Revaluation |
capital | earnings | reserve |
£ | £ | £ |
Balance at 1 June 2022 | 12,650 | 5,361,690 | 1,462,561 |
Changes in equity |
Add'nal shares in subsidiary | - | 26,600 | - |
Dividends | - | (76,000 | ) | - |
Total comprehensive income | - | 680,392 | (37,458 | ) |
Balance at 31 May 2023 | 12,650 | 5,992,682 | 1,425,103 |
Changes in equity |
Dividends | - | (84,000 | ) | - |
Total comprehensive income | - | 455,835 | (37,458 | ) |
Balance at 31 May 2024 | 12,650 | 6,364,517 | 1,387,645 |
Non-controlling | Total |
Total | interests | equity |
£ | £ | £ |
Balance at 1 June 2022 | 6,836,901 | 297,727 | 7,134,628 |
Changes in equity |
Add'nal shares in subsidiary | 26,600 | (61,600 | ) | (35,000 | ) |
Dividends | (76,000 | ) | (12,000 | ) | (88,000 | ) |
Total comprehensive income | 642,934 | 25,581 | 668,515 |
Balance at 31 May 2023 | 7,430,435 | 249,708 | 7,680,143 |
Changes in equity |
Dividends | (84,000 | ) | (12,000 | ) | (96,000 | ) |
Total comprehensive income | 418,377 | 19,767 | 438,144 |
Balance at 31 May 2024 | 7,764,812 | 257,475 | 8,022,287 |
Yip & Sons Limited (Registered number: 11341931) |
Company Statement of Changes in Equity |
for the Year Ended 31 May 2024 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 June 2022 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 May 2023 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 May 2024 |
Yip & Sons Limited (Registered number: 11341931) |
Consolidated Cash Flow Statement |
for the Year Ended 31 May 2024 |
31.5.24 | 31.5.23 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 249,585 | 2,257,577 |
Interest paid | (183,651 | ) | (131,502 | ) |
Interest element of hire purchase payments paid |
(1,203 |
) |
- |
Tax paid | (152,666 | ) | (180,050 | ) |
Net cash from operating activities | (87,935 | ) | 1,946,025 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (170,785 | ) | (267,464 | ) |
Sale of tangible fixed assets | 5,000 | - |
New loans to associates | (59,279 | ) | (680,667 | ) |
Repayment of loans by associates | 2,400 | 30,000 |
New loans from associates | 52,002 | - |
Repayments of loans to associates | (15,324 | ) | - |
Interest received | 227 | 123 |
Net cash from investing activities | (185,759 | ) | (918,008 | ) |
Cash flows from financing activities |
New loans in year | - | 250,000 |
Loan repayments in year | (272,257 | ) | (367,894 | ) |
Capital repayments in year | (7,598 | ) | - |
Amount introduced by directors | 60,000 | 53,335 |
Amount withdrawn by directors | (209,702 | ) | (358,353 | ) |
Dividends paid to NCI | (12,000 | ) | (12,000 | ) |
Equity dividends paid | (84,000 | ) | (76,000 | ) |
Net cash from financing activities | (525,557 | ) | (510,912 | ) |
(Decrease)/increase in cash and cash equivalents | (799,251 | ) | 517,105 |
Cash and cash equivalents at beginning of year |
2 |
76,738 |
(440,367 |
) |
Cash and cash equivalents at end of year |
2 |
(722,513 |
) |
76,738 |
Yip & Sons Limited (Registered number: 11341931) |
Notes to the Consolidated Cash Flow Statement |
for the Year Ended 31 May 2024 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
31.5.24 | 31.5.23 |
£ | £ |
Profit before taxation | 705,383 | 858,953 |
Depreciation charges | 388,649 | 259,772 |
Profit on disposal of fixed assets | (5,000 | ) | - |
Government grants | - | (53,593 | ) |
Finance costs | 187,650 | 130,559 |
Finance income | (227 | ) | (123 | ) |
1,276,455 | 1,195,568 |
Decrease/(increase) in stocks | 74,715 | (40,482 | ) |
Increase in trade and other debtors | (608,046 | ) | (141,897 | ) |
(Decrease)/increase in trade and other creditors | (493,539 | ) | 1,244,388 |
Cash generated from operations | 249,585 | 2,257,577 |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31 May 2024 |
31.5.24 | 1.6.23 |
£ | £ |
Cash and cash equivalents | 246,063 | 503,409 |
Bank overdrafts | (968,576 | ) | (426,671 | ) |
(722,513 | ) | 76,738 |
Year ended 31 May 2023 |
31.5.23 | 1.6.22 |
£ | £ |
Cash and cash equivalents | 503,409 | 748,326 |
Bank overdrafts | (426,671 | ) | (1,188,693 | ) |
76,738 | (440,367 | ) |
Yip & Sons Limited (Registered number: 11341931) |
Notes to the Consolidated Cash Flow Statement |
for the Year Ended 31 May 2024 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
Other |
non-cash |
At 1.6.23 | Cash flow | changes | At 31.5.24 |
£ | £ | £ | £ |
Net cash |
Cash at bank |
and in hand | 503,409 | (257,346 | ) | 246,063 |
Bank overdrafts | (426,671 | ) | (541,905 | ) | (968,576 | ) |
76,738 | (799,251 | ) | (722,513 | ) |
Debt |
Finance leases | - | 7,598 | - | (448,149 | ) |
Debts falling due |
within 1 year | (396,926 | ) | 133,333 | - | (263,593 | ) |
Debts falling due |
after 1 year | (1,370,179 | ) | 138,924 | - | (1,231,255 | ) |
(1,767,105 | ) | 279,855 | - | (1,942,997 | ) |
Total | (1,690,367 | ) | (519,396 | ) | - | (2,665,510 | ) |
Yip & Sons Limited (Registered number: 11341931) |
Notes to the Consolidated Financial Statements |
for the Year Ended 31 May 2024 |
1. | STATUTORY INFORMATION |
Yip & Sons Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets. |
Basis of consolidation |
The group financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 31 May each year. |
Associates |
Investments in associates are recognised initially in the consolidated statement of financial position at the transaction price, and subsequently adjusted to reflect the group's share of total comprehensive income and equity of associate, less any impairment. If the group's share of losses exceeds the interest in associate, additional losses are recognised only to the extent that legal or constructive obligations exist to make payments on behalf of the associate. |
Yip & Sons Limited (Registered number: 11341931) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 May 2024 |
2. | ACCOUNTING POLICIES - continued |
Significant judgements and estimates |
In applying the company and group accounting policies, the directors are required to make judgements, estimates and assumptions in determining the carrying amounts of assets and liabilities. The director's judgements, estimates and assumptions are based on the best and most reliable evidence available at the time when the decisions are made, and are based on historical experience and other factors considered to be applicable. Due to the inherent subjectivity involved in making such judgements, estimates and assumptions, the actual results and outcomes may differ. |
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, if the revision affects only that period, or in the period of the revision and future periods, if the revision affects both current and future periods. |
Key sources of estimation uncertainty |
The key assumptions concerning the future, and other key sources of estimation uncertainty, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are disclosed below. |
Assessing indicators of impairment |
In assessing whether there have been any indicators of impairment to assets, the directors have considered both external and internal sources of information such as market conditions and experience of recoverability. There have been no indicators of impairments identified during the current financial year. |
Tangible fixed assets |
Tangible fixed assets are depreciated over their useful economic lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values. |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Goodwill |
On 1 February 2021 the group increased its holding in Chi Land Limited from 50% of the ordinary shares to 75% of the ordinary shares. This resulted in negative goodwill arising. The directors considered the period over which they expected economic benefits to derive from this acquisition and have amortised it evenly over this period. The goodwill has now been fully amortised. |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
Yip & Sons Limited (Registered number: 11341931) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 May 2024 |
2. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
Freehold property | - |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
Freehold properties are carried at their revalued amounts, being fair value at the date of valuation less subsequent depreciation and impairment losses. Revaluations are performed by professional qualified valuers with sufficient regularity to ensure that the carrying amounts do not differ materially from those that would be determined using fair values at the end of each reporting period. Any accumulated depreciation at the date of revaluation is eliminated against the gross carrying amount of the assets and the net amount is restated to the revalued amount of the asset. |
Any revaluation increase in the carrying amount of freehold properties is recognised in other comprehensive income and included in a revaluation reserve in equity, except to the extent that it reverses a revaluation decrease of the same asset previously recognised in profit or loss, in which case the increase is credited to profit and loss to the extent of the decrease previously expended. Decreases that offset previous increases of the same asset are charged in other comprehensive income and debited against the revaluation reserve in equity; decreases exceeding the balance in revaluation reserve relating to an asset are recognised in profit or loss. Each year the difference between the depreciation based on the revalued carrying amount of the asset recognised in profit or loss and depreciation based on the asset's original cost is transferred from revaluation reserve to retained earnings. |
Investment property |
Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss. |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Yip & Sons Limited (Registered number: 11341931) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 May 2024 |
2. | ACCOUNTING POLICIES - continued |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
Going concern |
The consolidated financial statements for the year ended 31 May 2024 have been prepared on a going concern basis, as after making appropriate enquiries, the director has a reasonable expectation that the group and the company have adequate resources to continue in operational existence for the foreseeable future. |
Grants received |
Grants received relating to tangible fixed assets are treated as a deferred credit and are released to the profit and loss account in equal instalments over the estimated useful economic life of the assets concerned. Other grants are credited to the profit and loss account as the related expenditure is incurred. |
Yip & Sons Limited (Registered number: 11341931) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 May 2024 |
3. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the group. |
An analysis of turnover by geographical market is given below: |
31.5.24 | 31.5.23 |
£ | £ |
United Kingdom | 24,201,621 | 24,190,437 |
24,201,621 | 24,190,437 |
4. | EMPLOYEES AND DIRECTORS |
31.5.24 | 31.5.23 |
£ | £ |
Wages and salaries | 2,156,064 | 2,425,690 |
Social security costs | 176,108 | 168,092 |
Other pension costs | 60,092 | 60,886 |
2,392,264 | 2,654,668 |
The average number of employees during the year was as follows: |
31.5.24 | 31.5.23 |
Selling and administration |
31.5.24 | 31.5.23 |
£ | £ |
Director's remuneration | 87,600 | 85,600 |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes | 2 | 1 |
5. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
31.5.24 | 31.5.23 |
£ | £ |
Hire of plant and machinery | 26,274 | 32,408 |
Depreciation - owned assets | 357,013 | 329,976 |
Depreciation - assets on hire purchase contracts | 31,635 | - |
Profit on disposal of fixed assets | (5,000 | ) | - |
Goodwill amortisation | - | (70,203 | ) |
Auditors' remuneration | 37,990 | 35,484 |
Yip & Sons Limited (Registered number: 11341931) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 May 2024 |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
31.5.24 | 31.5.23 |
£ | £ |
Bank interest | 35,943 | 9,065 |
Bank loan interest | 150,504 | 121,494 |
Hire purchase | 1,203 | - |
187,650 | 130,559 |
7. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
31.5.24 | 31.5.23 |
£ | £ |
Current tax: |
UK corporation tax | 117,929 | 152,666 |
Deferred tax | 149,310 | 37,772 |
Tax on profit | 267,239 | 190,438 |
8. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
9. | DIVIDENDS |
31.5.24 | 31.5.23 |
£ | £ |
Ordinary shares of £1 each |
Interim | 84,000 | 76,000 |
Yip & Sons Limited (Registered number: 11341931) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 May 2024 |
10. | INTANGIBLE FIXED ASSETS |
Group |
Goodwill |
£ |
COST |
At 1 June 2023 |
and 31 May 2024 | (210,609 | ) |
AMORTISATION |
At 1 June 2023 |
and 31 May 2024 | (210,609 | ) |
NET BOOK VALUE |
At 31 May 2024 | - |
At 31 May 2023 | - |
11. | TANGIBLE FIXED ASSETS |
Group |
Fixtures |
Freehold | Plant and | and | Motor |
property | machinery | fittings | vehicles | Totals |
£ | £ | £ | £ | £ |
COST OR VALUATION |
At 1 June 2023 | 2,950,000 | 2,787,956 | 1,475,465 | 291,162 | 7,504,583 |
Additions | - | - | - | 626,532 | 626,532 |
At 31 May 2024 | 2,950,000 | 2,787,956 | 1,475,465 | 917,694 | 8,131,115 |
DEPRECIATION |
At 1 June 2023 | 295,000 | 2,110,252 | 1,388,115 | 55,177 | 3,848,544 |
Charge for year | 59,000 | 204,548 | 14,029 | 111,071 | 388,648 |
At 31 May 2024 | 354,000 | 2,314,800 | 1,402,144 | 166,248 | 4,237,192 |
NET BOOK VALUE |
At 31 May 2024 | 2,596,000 | 473,156 | 73,321 | 751,446 | 3,893,923 |
At 31 May 2023 | 2,655,000 | 677,704 | 87,350 | 235,985 | 3,656,039 |
Yip & Sons Limited (Registered number: 11341931) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 May 2024 |
11. | TANGIBLE FIXED ASSETS - continued |
Group |
Cost or valuation at 31 May 2024 is represented by: |
Fixtures |
Freehold | Plant and | and | Motor |
property | machinery | fittings | vehicles | Totals |
£ | £ | £ | £ | £ |
Valuation in 2008 | 754,477 | - | - | - | 754,477 |
Valuation in 2016 | (170,000 | ) | - | - | - | (170,000 | ) |
Valuation in 2018 | 320,000 | - | - | - | 320,000 |
Cost | 2,045,523 | 2,787,956 | 1,475,465 | 917,694 | 7,226,638 |
2,950,000 | 2,787,956 | 1,475,465 | 917,694 | 8,131,115 |
If freehold property had not been revalued it would have been included at the following historical cost: |
31.5.24 | 31.5.23 |
£ | £ |
Cost | 2,045,523 | 2,045,523 |
Aggregate depreciation | 1,165,558 | 1,001,918 |
The freehold property was valued on an open market basis on 29 May 2018 by Eddisons Taylors . |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Motor |
vehicles |
£ |
COST OR VALUATION |
Additions | 506,162 |
At 31 May 2024 | 506,162 |
DEPRECIATION |
Charge for year | 31,635 |
At 31 May 2024 | 31,635 |
NET BOOK VALUE |
At 31 May 2024 | 474,527 |
Yip & Sons Limited (Registered number: 11341931) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 May 2024 |
12. | FIXED ASSET INVESTMENTS |
Group |
Shares in |
group |
undertakings |
£ |
COST |
At 1 June 2023 | 100 |
Impairments | (50 | ) |
At 31 May 2024 | 50 |
NET BOOK VALUE |
At 31 May 2024 | 50 |
At 31 May 2023 | 100 |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 June 2023 |
and 31 May 2024 |
NET BOOK VALUE |
At 31 May 2024 |
At 31 May 2023 |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
Registered office: England & Wales |
Nature of business: |
% |
Class of shares: | holding |
Registered office: England & Wales |
Nature of business: |
% |
Class of shares: | holding |
Yip & Sons Limited (Registered number: 11341931) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 May 2024 |
12. | FIXED ASSET INVESTMENTS - continued |
Registered office: England & Wales |
Nature of business: |
% |
Class of shares: | holding |
Registered office: England & Wales |
Nature of business: |
% |
Class of shares: | holding |
Registered office: England & Wales |
Nature of business: |
% |
Class of shares: | holding |
Registered office: England & Wales |
Nature of business: |
% |
Class of shares: | holding |
Associated companies |
Registered office: England & Wales |
Nature of business: |
% |
Class of shares: | holding |
Registered office: England & Wales |
Nature of business: |
% |
Class of shares: | holding |
Yip & Sons Limited (Registered number: 11341931) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 May 2024 |
13. | INVESTMENT PROPERTY |
Group |
Total |
£ |
FAIR VALUE |
At 1 June 2023 |
and 31 May 2024 | 4,122,707 |
NET BOOK VALUE |
At 31 May 2024 | 4,122,707 |
At 31 May 2023 | 4,122,707 |
Fair value at 31 May 2024 is represented by: |
£ |
Valuation in 2009 | 304,181 |
Cost | 3,818,526 |
4,122,707 |
If investment property had not been revalued it would have been included at the following historical cost: |
31.5.24 | 31.5.23 |
£ | £ |
Cost | 3,818,526 | 3,818,526 |
Investment property was valued on an open market basis on 31 May 2024 by the directors . |
14. | STOCKS |
Group |
31.5.24 | 31.5.23 |
£ | £ |
Finished goods | 2,330,434 | 2,405,149 |
Yip & Sons Limited (Registered number: 11341931) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 May 2024 |
15. | DEBTORS |
Group |
31.5.24 | 31.5.23 |
£ | £ |
Amounts falling due within one year: |
Trade debtors | 1,239,753 | 655,479 |
Other debtors | 179,768 | 160,719 |
VAT | 68,090 | - |
Prepayments and accrued income | 152,078 | 206,165 |
1,639,689 | 1,022,363 |
Amounts falling due after more than one | year: |
Other debtors | 2,044,400 | 1,996,800 |
Aggregate amounts | 3,684,089 | 3,019,163 |
16. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
31.5.24 | 31.5.23 | 31.5.24 | 31.5.23 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 18) | 1,232,169 | 823,597 |
Hire purchase contracts (see note 19) | 91,152 | - |
Trade creditors | 2,062,220 | 2,468,304 |
Amounts owed to group undertakings | - | - |
Tax | 117,929 | 152,666 |
Social security and other taxes | 43,282 | 95,470 |
VAT | - | 50,589 | - | - |
Other creditors | 366,076 | 329,374 |
Directors' current accounts | 308,250 | 457,952 | - | - |
Directors' loan accounts | 4,582 | 4,582 | - | - |
Accruals and deferred income | 152,131 | 134,085 |
4,377,791 | 4,516,619 |
Yip & Sons Limited (Registered number: 11341931) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 May 2024 |
17. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group | Company |
31.5.24 | 31.5.23 | 31.5.24 | 31.5.23 |
£ | £ | £ | £ |
Bank loans (see note 18) | 1,231,255 | 1,370,179 |
Hire purchase contracts (see note 19) | 356,997 | - |
Amounts owed to group undertakings | - | - | 515,000 | 515,000 |
1,588,252 | 1,370,179 |
18. | LOANS |
An analysis of the maturity of loans is given below: |
Group |
31.5.24 | 31.5.23 |
£ | £ |
Amounts falling due within one year or | on demand: |
Bank overdrafts | 968,576 | 426,671 |
Bank loans | - less than 1 yr | 263,593 | 396,926 |
1,232,169 | 823,597 |
Amounts falling due between one and | two years: |
Bank loans - 1-2 years | 180,260 | 263,593 |
Amounts falling due between two and | five years: |
Bank loan 2-5 years | 1,050,995 | 1,106,586 |
Yip & Sons Limited (Registered number: 11341931) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 May 2024 |
19. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Hire purchase contracts |
31.5.24 | 31.5.23 |
£ | £ |
Gross obligations repayable: |
Within one year | 105,588 | - |
Between one and five years | 413,553 | - |
519,141 | - |
Finance charges repayable: |
Within one year | 14,436 | - |
Between one and five years | 56,556 | - |
70,992 | - |
Net obligations repayable: |
Within one year | 91,152 | - |
Between one and five years | 356,997 | - |
448,149 | - |
Group |
Non-cancellable | operating leases |
31.5.24 | 31.5.23 |
£ | £ |
Within one year | 30,472 | 29,387 |
Between one and five years | 62,756 | 48,531 |
93,228 | 77,918 |
20. | PROVISIONS FOR LIABILITIES |
Group |
31.5.24 | 31.5.23 |
£ | £ |
Deferred tax | 288,936 | 139,626 |
Yip & Sons Limited (Registered number: 11341931) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 May 2024 |
20. | PROVISIONS FOR LIABILITIES - continued |
Group |
Deferred |
tax |
£ |
Balance at 1 June 2023 | 139,626 |
Provided during year | 149,310 |
Balance at 31 May 2024 | 288,936 |
21. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 31.5.24 | 31.5.23 |
value: | £ | £ |
Ordinary | £1 | 12,650 | 12,650 |
22. | RESERVES |
Group |
Retained | Revaluation |
earnings | reserve | Totals |
£ | £ | £ |
At 1 June 2023 | 5,992,682 | 1,425,103 | 7,417,785 |
Profit for the year | 418,377 | 418,377 |
Dividends | (84,000 | ) | (84,000 | ) |
Profit and loss transfer | 37,458 | (37,458 | ) | - |
At 31 May 2024 | 6,364,517 | 1,387,645 | 7,752,162 |
23. | NON-CONTROLLING INTERESTS |
The non-controlling interests relate to minority shareholdings held by third parties in Chi Land Limited, whose financial results are included within the consolidated financial statements of Yip and Sons Limited. The total non-controlling interests at 31 May 2024 amounted to £257,475 (£249,708 at 31.05.23). |
Yip & Sons Limited (Registered number: 11341931) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 May 2024 |
24. | RELATED PARTY DISCLOSURES |
Hello Oriental (Oxford Road) Limited |
A company in which the group has a 50% interest. |
The group has advanced loans of £1,559,946 (2023 £1,402,400) to Hello Oriental (Oxford Road) Limited. This loan is repayable on demand and is included in other debtors. |
OT Restaurant Limited |
A company which is owned by Mrs DFC Yip's son. |
The group has received loans of £234,676 (2023 £250,000) from OT Restaurant Limited. This loan is repayable on demand and is included in other creditors. |
Chi Yip (Altrincham) Limited |
A company which is owned by Mrs DFC Yip's son. |
The group has advanced loans of £600,000 (2023 £550,000) to Chi Yip (Altrincham) Limited. This loan is repayable on demand and is included in other debtors. |
K2 Karaoke Limited |
A company which is owned by Mrs DFC Yip's daughter. |
The group has received loans of £51,953 (2023 £nil) from K2 Karaoke Limited. This loan is repayable on demand and is included in other creditors. |