Company registration number 01415903 (England and Wales)
RIPPLEGLEN LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 27 MARCH 2024
RIPPLEGLEN LIMITED
COMPANY INFORMATION
Directors
J M James
M J Clayton
M J Titterton
Secretary
J M James
Company number
01415903
Registered office
Hazel Court
Midland Way
Barlborough
Chesterfield
Derbyshire
England
S43 4FD
Auditor
BHP LLP
2 Rutland Park
Sheffield
S10 2PD
RIPPLEGLEN LIMITED
CONTENTS
Page
Strategic report
1 - 4
Directors' report
5 - 6
Independent auditor's report
7 - 9
Statement of comprehensive income
10
Balance sheet
11
Statement of changes in equity
12
Notes to the financial statements
13 - 25
RIPPLEGLEN LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 27 MARCH 2024
- 1 -

The directors present the strategic report for the year ended 27 March 2024.

Introduction

The company is an integral member of a group headed by James Convenience Retail Limited (“JCR”). The directors consider that to gain an understating of the year under review in these financial statements, it is necessary for users to understand the business review of the JCR group. The following is an extract from the 26 March 2024 financial statement of James Convenience Retail Limited.

 

The principal activity of the group is the retailing of convenience foods, confectionery, news, tobacco, soft drinks and alcohol.

 

The group currently operates thirty nine stores as of December 2024 with a strong presence in both the convenience sector and travel interchanges which combined are the largest contributor to the groups profits.

 

Business review

Despite the group facing significant cost increases during the year, it was able to deliver a profitable EBITDA and continues to deliver an improvement on financial performance over recent years. Group trading EBITDA for the year totalled £587k.

 

The group acknowledges the cost-of-living increase on so many of our customers and as such have implemented a strategy of offering price marked product showing value to the customer. This has helped drive volume in turnover, whilst providing a competitive price to our customers during difficult financial times. The strategy allowed the group to grow turnover and profitability in multiple commodity groups to minimise the impact of the declining tobacco market.

 

During the year the group successfully managed to dispose of several loss-making stores that had become commercial unviable due to the lasting impact of Covid on trade at these locations. This has helped bolster the stability of the group and further store EBITDA projections for the upcoming financial year.

 

During the year the group reinvested profits to refurbish existing sites, further invest in its food to go offer, which has helped to establish a sustainable business model for the long term. The stores that the group transitioned to the Costcutter brand in the prior year delivered significant and sustained sales growth due to the improved range of product and recognition of the Costcutter brand.

 

The directors are pleased to announce a new long-term retail agreement with Costcutter Stores. The agreement will allow the group to take advantage of the Costcutter/Nisa supply chain providing its customers with a wide range of ambient and chilled product at competitive prices.

 

With the help of Costcutter stores the group will rebrand the existing sites to the Costcutter brand and in various transport locations embrace the format of Costcutter on the go sites. As part of the rebranding, stores will undergo refurbishment with revised product ranges to provide an improved convenience offer for our customers.

 

The group acknowledges that it will need to mitigate the impact of rising costs in the upcoming year, with the increase in salary costs and business rates. To continue the strong financial performance, the group will invest in technology to ensure savings and efficiencies through the store and head office operations.

 

Further stores have been identified as becoming uncommercially viable due to the change in customer shopping trends and an increase in anticipated costs. These will be disposed of during the upcoming financial year.

 

Despite anticipated cost increases and uncertainty due to the ban on disposal vapes coming into force in June 2025, the directors expect the growth from the rebranding and refurbishment of stores to allow the group to continue to deliver a profit at an EBITDA level for the upcoming year. Store EBITDA forecasted for the year ending March 2025 is £1.7m.

Given the current year performance, the investment anticipated within the group and forecasts prepared by the management, directors believe the group has a very positive future.

The thanks of the directors are expressed to store colleagues, the support office team and all key stakeholders in supporting the company through the challenging times of recent years and continued support in returning the group to a profitable position.

RIPPLEGLEN LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 27 MARCH 2024
- 2 -
Principal risks and uncertainties

 

 

2024

2023

Sales

£36m

£36m

Gross Profit

£7.8m

£7.3m

Gross Profit %

21.6%

20.6%

The group monitors its financial position through several key performance indicators ('KPIs'). The principal KPIs for the year are as shown above.

 

Sales have remained consistent despite the reduction in store numbers. Sales growth through ambient and fresh commodities due to price mark strategy and refurbishment of stores to Costcutter. Sales in tobacco and news related products are in decline which is consistent with the sector.

 

The increase gross profit margin is due to a shift in sales mix with a reduction in tobacco product and an increase in fresh and ambient product that returns a higher margin. Volume increase in price marked product that typically carries a higher margin than non-price marked equivalents.

 

The directors monitor other KPI’s on a store-by-store basis, looking at performance on a weekly basis through a review of top line category performance year on year and against budget. Store Managers are then targeted on improving performance through active selling to drive footfall and sales growth.

 

The directors actively review stock levels across stores and monitor individual line performance to ensure there is sufficient stock to service the demands of customers but not to the detriment of the cash performance of the business.

 

Cash is a key performance metric, with weekly cashflow forecasts produced and carefully monitored.

RIPPLEGLEN LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 27 MARCH 2024
- 3 -

Financial/ operational risks

Explanation

Mitigation

Competition

The group operates in a highly competitive retail market, and may not be able to operate profitably in the long term from each site.

The retail industry is highly competitive, particularly with respect to price, product selection and quality, store location, inventory and customer service.

The group competes with a diverse group of retailers of varying sizes. These competitors include single site retailers, supermarkets, convenience stores and traditional newsagents.

Trading performance for individual stores may suffer from long term decline or the opening of new competitors near to our sites.

The group works extremely hard and remains alert to local trading conditions to ensure that it responds rapidly and appropriately to the types of competition encountered locally by each of our outlets.

The group actively monitors each store's performance and seeks to sell underperforming stores whilst they still have an economic value.

The group regularly assesses its product mix, pricing and promotional offers to attract new customers, whilst retaining its existing customer base.

Cash flow

The group’s cash flows from operations may be negatively affected if it is not successful in managing stock levels or levels of stock shrinkage.

To be profitable the group must maintain sufficient stock levels to meet its customers’ demands without allowing those levels to increase to an extent such that the costs impact on the financial results

The group monitors stock levels through its EPOS systems and continues to deploy good practices based on the directors' knowledge of the industry.

The group, like other retailers experiences stock shrinkage and adopts measures that monitor and control the problem. Some level of stock loss is an unavoidable cost of doing business.

National Living Wage

In order to reduce the cost of benefits to the exchequer the chancellor increased the minimum wage in April 2025.

The group will need to recoup the additional cost of this government measure.

The cost of implementation will be mitigated by a combination of a reduction in staffing hours and stricter budgetary control in all expenditure.

Cash flow management

Cash flow management of the group is important as it competes in a highly competitive market. Profit and cash management are vital to service the group’s financial commitments.

The group must monitor cash regularly to ensure sufficient cash is available to service debt requirements and be able to respond to the changing face of the retail landscape.

The group manages the cash performance through production of weekly cash flow forecasts and reviewing against previous forecasts. A long-term strategic cash model is maintained to assess the future demands of cash and regular senior management meetings are held to explore options to bring in or reduce cash expenditure. The directors maintain good and close relations with its bankers, shareholders and Bestway, its wholesale partner.

RIPPLEGLEN LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 27 MARCH 2024
- 4 -
Promoting the success of the company

The directors have acted in a way they consider, in good faith, promotes the success of the group for the benefit of its members as a whole, and in doing so has given regard (amongst other matters) to:

 

Business relationships

The need to build strong longstanding relationships within the franchise agreement with key suppliers, and with our customers, is paramount to the success of the group and its longevity. We continually develop strategies to maintain and grow our offering and customer base and to further improve relationships with suppliers.

 

Our people

The group is committed to being a responsible business. Our behaviour is aligned with the expectations of our people. customers, shareholders communities and society as a whole. People are the heart of delivering great customer service in our stores. For our business to continue to succeed we continually manage our people's performance and develop and bring through talent which ensuring we operate as efficiently as possible.

 

Disabled employees

The group gives full and fair applications for employment by disabled persons. In the event of employees becoming disabled whilst in the service of the group, every effort is made to continue their employment by transfer to alternative duties, if required, and by provision of such retraining as is appropriate.

 

Employee involvement

The group maintains an intranet site that provides employees with information on matters of concern to them as employees. Regular meetings are held between operational management and employees to allow free flow of information and ideas within the team.

 

Culture and values

The group recognises the importance of having the right corporate culture. Our long term success is dependent on achieving strategic goals the right and fair way, so we look after the best interests of our shareholders, customers, people, suppliers and other stakeholders.

 

Shareholders

The management team are committed and openly engaged with the group's shareholders through regular board meetings and effective dialogue. The shareholders are actively engaged in understanding our strategy, culture, people and the performance of our shared objectives for the short, mid and longer terms.

On behalf of the board

J M James
Director
26 March 2025
RIPPLEGLEN LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 27 MARCH 2024
- 5 -

The directors present their annual report and financial statements for the year ended 27 March 2024.

Principal activities

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

Results and dividends

The results for the year are set out on page 10.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

Directors

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

J M James
M J Clayton
M J Titterton
Auditor

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

Statement of directors' responsibilities

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

 

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

 

 

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

Statement of disclosure to auditor

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

Medium-sized companies exemption

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

RIPPLEGLEN LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 27 MARCH 2024
- 6 -
On behalf of the board
J M James
Director
26 March 2025
RIPPLEGLEN LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF RIPPLEGLEN LIMITED
- 7 -
Opinion

We have audited the financial statements of Rippleglen Limited (the 'company') for the year ended 27 March 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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 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:

RIPPLEGLEN LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF RIPPLEGLEN LIMITED (CONTINUED)
- 8 -
Matters on which we are required to report by exception

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

 

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

Responsibilities of directors

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

Auditor's responsibilities for the audit of the financial statements

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

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

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:

RIPPLEGLEN LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF RIPPLEGLEN LIMITED (CONTINUED)
- 9 -

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

 

To address the risk of fraud through management bias and override of controls, we:

 

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

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.

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.

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.

Paul Winwood
Senior Statutory Auditor
For and on behalf of BHP LLP
26 March 2025
Chartered Accountants
Statutory Auditor
2 Rutland Park
Sheffield
S10 2PD
RIPPLEGLEN LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 27 MARCH 2024
- 10 -
2024
2023
Notes
£000
£000
Turnover
3
9,592
7,623
Cost of sales
(7,649)
(6,141)
Gross profit
1,943
1,482
Administrative expenses
(2,368)
(1,907)
Other operating income
549
406
Operating profit/(loss)
4
124
(19)
Interest payable and similar expenses
6
(1)
-
0
Profit/(loss) before taxation
123
(19)
Tax on profit/(loss)
7
26
74
Profit for the financial year
149
55

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

RIPPLEGLEN LIMITED
BALANCE SHEET
AS AT 27 MARCH 2024
27 March 2024
- 11 -
2024
2023
Notes
£000
£000
£000
£000
Fixed assets
Goodwill
8
295
313
Tangible assets
9
101
43
Investments
10
1,070
1,070
1,466
1,426
Current assets
Stocks
12
517
517
Debtors
13
7,471
7,434
Cash at bank and in hand
984
2,806
8,972
10,757
Creditors: amounts falling due within one year
14
(8,935)
(10,829)
Net current assets/(liabilities)
37
(72)
Net assets
1,503
1,354
Capital and reserves
Called up share capital
17
121
121
Share premium account
18
271
271
Capital redemption reserve
19
200
200
Profit and loss reserves
911
762
Total equity
1,503
1,354

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

The financial statements were approved by the board of directors and authorised for issue on 26 March 2025 and are signed on its behalf by:
J M James
Director
Company registration number 01415903 (England and Wales)
RIPPLEGLEN LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 27 MARCH 2024
- 12 -
Share capital
Share premium account
Capital redemption reserve
Profit and loss reserves
Total
£000
£000
£000
£000
£000
Balance at 28 March 2022
121
271
200
707
1,299
Year ended 27 March 2023:
Profit and total comprehensive income
-
-
-
55
55
Balance at 27 March 2023
121
271
200
762
1,354
Year ended 27 March 2024:
Profit and total comprehensive income
-
-
-
149
149
Balance at 27 March 2024
121
271
200
911
1,503
RIPPLEGLEN LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 27 MARCH 2024
- 13 -
1
Accounting policies
Company information

Rippleglen Limited is a private company limited by shares incorporated in England and Wales. The registered office is Hazel Court, Midland Way, Barlborough, Chesterfield, Derbyshire, England, S43 4FD.

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 £000.

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

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

 

 

The financial statements of the company are consolidated in the financial statements of James Convenience Retail Limited. These consolidated financial statements are available from its registered office.

The company has taken advantage of the exemption under section 400 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group.

RIPPLEGLEN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 27 MARCH 2024
1
Accounting policies
(Continued)
- 14 -
1.2
Going concern

Rippleglen Limited is a member of a group headed up by James Convenience Retail Limited. The company's financial position is very closely linked to that of the group.true

At 26 March 2024 the group's balance sheet showed shareholders' funds of deficit £915,000 (2023: £573,000). The directors are mindful that at 26 March 2024 the group had net currents liabilities of £1,149,000 (2023: net current liabilities of £1,076,000).

Despite the group facing significant cost increases during the year, it was able to deliver a profitable EBITDA and continues to deliver an improvement on financial performance over recent years.

 

The group acknowledges the cost-of-living increase on so many of our customers and as such have implemented a strategy of offering price marked product showing value to the customer. This has helped drive volume in turnover, whilst providing a competitive price to our customers during difficult financial times. The strategy allowed the group to grow turnover and profitability in multiple commodity groups to minimise the impact of the declining tobacco market.

 

During the year the group successfully managed to dispose of several loss-making stores that had become commercial unviable due to the lasting impact of Covid on trade at these locations. This has helped bolster the stability of the group and further store EBITDA projections for the upcoming financial year.

 

The directors are pleased to announce a new long-term retail agreement with Costcutter Stores. The agreement will allow the group to take advantage of the Costcutter/Nisa supply chain providing its customers with a wide range of ambient and chilled product at competitive prices.

 

With the help of Costcutter stores the group will rebrand the existing sites to the Costcutter brand and in various transport locations embrace the format of Costcutter on the go sites. As part of the rebranding, stores will undergo refurbishment with revised product ranges to provide an improved convenience offer for our customers.

 

The stores that the group has already transitioned to the Costcutter brand in the prior years have delivered significant and sustained sales growth due to the improved range of product and recognition of the Costcutter brand and therefore the directors are optimistic on future year performance.

 

The board have prepared detailed profit and cashflow for the year ending March 2025 and beyond and showing the group continuing to generate an EBITDA profit for the year ended 26 March 2025 The forecasts are based on the director’s experience of trading during the last 9 months.

The forecasts show that the group is expected to operate within existing borrowing facilities. On the basis of the forecasts the directors are satisfied that the group is able to meet its liabilities as they fall due for the foreseeable future and such as the financial statements have been prepared on a going concern basis.

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

Rippleglen Limited has various other income streams which are complementary to operating convenience store such as commissions, rental income and news delivery charges. Such income is recognised in the period in which it is earned. News delivery charges are shown net of expenses.

1.4
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life which is its franchise period, which is 20 years.

RIPPLEGLEN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 27 MARCH 2024
1
Accounting policies
(Continued)
- 15 -
1.5
Tangible fixed assets

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

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

Leasehold improvements
5 years straight line
Fixtures, fittings and motor vehicles
5 years straight line
Computers
4 years straight line

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.

1.6
Fixed asset investments

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.7
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

1.8
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.9
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.

RIPPLEGLEN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 27 MARCH 2024
1
Accounting policies
(Continued)
- 16 -
1.10
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.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

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.

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.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

RIPPLEGLEN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 27 MARCH 2024
1
Accounting policies
(Continued)
- 17 -
Basic financial liabilities

Basic financial liabilities, including creditors and loans from fellow group companies are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

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.

1.11
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.12
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 liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

1.13
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.

RIPPLEGLEN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 27 MARCH 2024
1
Accounting policies
(Continued)
- 18 -
1.14
Retirement benefits

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

1.15
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

2
Judgements and key sources of estimation uncertainty

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

 

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

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Impairment of fixed assets

In determining whether intangible assets are impaired requires an estimation of the value in use of each of the cash-generating units to which goodwill and intangible assets have been allocated. The value in use calculation requires the entity to estimate the future cash flows expected to arise from the cash-generating unit and a suitable discount rate in order to calculate present value. In assessing the carrying value of intangible assets the directors have taken into account events up to the date of approving the financial statements.

Investments

The group reviews the carrying value of fixed asset investments for indications of impairment at each period end. If indicators of impairment exist, the carrying value of the asset is subject to further testing to determine whether its carrying value exceeds its recoverable amount. This process will usually involve the estimation of future cash flows which are likely to be generated by the asset.

Recoverability of amounts due from group companies

Amounts due from group companies are recognised to the extent that they are judged recoverable. Director reviews are performed to estimate the level of reserves required for irrecoverable debt. Provisions are made specifically where recoverability is uncertain and are charged to the profit and loss account in the period in which the impairment arises. Impairment is applied where events or changes in circumstances indicate that the carrying amounts are not expected to be recoverable.

RIPPLEGLEN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 27 MARCH 2024
- 19 -
3
Turnover and other revenue
2024
2023
£000
£000
Turnover analysed by class of business
Sales
9,592
7,623
2024
2023
£000
£000
Other revenue
Commissions received
199
164
Rental income arising from investment properties
23
20
Sundry income
37
20
News delivery income
114
102

 

4
Operating profit/(loss)
2024
2023
Operating profit/(loss) for the year is stated after charging:
£000
£000
Fees payable to the company's auditor for the audit of the company's financial statements
17
15
Depreciation of owned tangible fixed assets
24
18
(Profit)/loss on disposal of tangible fixed assets
-
6
Amortisation of intangible assets
33
30
Operating lease charges
292
253
5
Employees

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

2024
2023
Number
Number
Store operatives
73
64

Their aggregate remuneration comprised:

2024
2023
£000
£000
Wages and salaries
1,094
822
Social security costs
66
48
Pension costs
17
12
1,177
882
RIPPLEGLEN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 27 MARCH 2024
- 20 -
6
Interest payable and similar expenses
2024
2023
£000
£000
Interest on finance leases and hire purchase contracts
1
-
7
Taxation
2024
2023
£000
£000
Deferred tax
Origination and reversal of timing differences
(26)
(74)

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

2024
2023
£000
£000
Profit/(loss) before taxation
123
(19)
Expected tax charge/(credit) based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
31
(4)
Tax effect of expenses that are not deductible in determining taxable profit
-
0
2
Tax effect of income not taxable in determining taxable profit
-
0
(1)
Fixed asset differences
10
8
Deferred tax not recognised (tax losses)
(70)
2
Remeasurement of deferred tax for changes in tax rates
-
0
(81)
Other tax adjustments, reliefs and transfers
3
-
0
Taxation credit for the year
(26)
(74)
RIPPLEGLEN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 27 MARCH 2024
- 21 -
8
Intangible fixed assets
Trademarks and franchise agreements
£000
Cost
At 28 March 2023
644
Transfers
29
At 27 March 2024
673
Amortisation and impairment
At 28 March 2023
331
Amortisation charged for the year
33
Transfers
14
At 27 March 2024
378
Carrying amount
At 27 March 2024
295
At 27 March 2023
313
9
Tangible fixed assets
Leasehold improvements
Fixtures, fittings and motor vehicles
Computers
Total
£000
£000
£000
£000
Cost
At 28 March 2023
59
99
-
0
158
Additions
58
17
5
80
Transfers
-
0
19
-
0
19
At 27 March 2024
117
135
5
257
Depreciation and impairment
At 28 March 2023
49
66
-
0
115
Depreciation charged in the year
11
13
-
0
24
Transfers
-
0
17
-
0
17
At 27 March 2024
60
96
-
0
156
Carrying amount
At 27 March 2024
57
39
5
101
At 27 March 2023
10
33
-
0
43
RIPPLEGLEN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 27 MARCH 2024
- 22 -
10
Fixed asset investments
2024
2023
Notes
£000
£000
Investments in subsidiaries
11
1,070
1,070
11
Subsidiaries

Details of the company's subsidiaries at 27 March 2024 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Supernews Stores Limited
Hazel Court Midland Way, Barlborough, Chesterfield, Derbyshire, England, S43 4FD
Ordinary
100.00
Eastcliffe News Shops Limited
As above
Ordinary
100.00

In the opinion of the directors the value of these investment as at 27 March 2024 is not less than the aggregate amount in the balance sheet at that date.

12
Stocks
2024
2023
£000
£000
Finished goods and goods for resale
517
517
13
Debtors
2024
2023
Amounts falling due within one year:
£000
£000
Trade debtors
239
248
Amounts owed by group undertakings
6,763
6,763
Other debtors
107
60
Prepayments and accrued income
234
261
7,343
7,332
Deferred tax asset (note 15)
128
102
7,471
7,434

Amounts owed by group undertakings are shown as falling due within one year as there is no set repayment date and there is no formal agreement in place. Commercially there are no plans for these amounts to be recalled within the next 12 months.

RIPPLEGLEN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 27 MARCH 2024
- 23 -
14
Creditors: amounts falling due within one year
2024
2023
£000
£000
Trade creditors
1,407
2,706
Amounts owed to group undertakings
7,022
7,504
Taxation and social security
47
45
Other creditors
257
380
Accruals and deferred income
202
194
8,935
10,829

The bank overdraft, bank loans and other loans are secured by a debenture which creates a fixed and floating charge over the group's assets, property and revenues both present and future.

 

Amounts owed to group undertakings are shown as falling due within one year as there is no set repayment date and there is no formal agreement in place. Commercially there are no plans for these amounts to be recalled within the next 12 months by the other group company.

15
Deferred taxation

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

Assets
Assets
2024
2023
Balances:
£000
£000
Accelerated capital allowances
1
19
Tax losses
126
83
Short term timing differences
1
-
128
102
2024
Movements in the year:
£000
Asset at 28 March 2023
(102)
Credit to profit or loss
(26)
Asset at 27 March 2024
(128)
RIPPLEGLEN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 27 MARCH 2024
- 24 -
16
Retirement benefit schemes
2024
2023
Defined contribution schemes
£000
£000
Charge to profit or loss in respect of defined contribution schemes
17
12

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.

17
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£000
£000
Issued and fully paid
Ordinary of £1 each
121,255
121,255
121
121
18
Share premium account

Share premium includes any premiums received on issue of share capital.

19
Capital redemption reserve

Capital redemption reserve relates to the nominal value of share capital repurchased by the company.

20
Financial commitments, guarantees and contingent liabilities

The company is party to an omnibus guarantee covering the bank borrowings of the wider group. As at 27 March 2024 these borrowings totalled £1,575,866 (2023: £nil)

21
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
£000
£000
Within one year
229
215
Between two and five years
537
652
In over five years
69
117
835
984
22
Related party transactions

As the company is a wholly-owned subsidiary of a company whose consolidated accounts include the results of the subsidiary and are publicly available, the company has taken advantage of FRS 102 Section 33.1A exemption from disclosing transactions with group undertakings where 100% of the voting rights are within the group.

RIPPLEGLEN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 27 MARCH 2024
- 25 -
23
Ultimate controlling party

The company's immediate parent company is First Stop News Limited. The ultimate parent company is James Convenience Retail Limited.

 

Both First Stop News Limited and James Convenience Retail Limited are incorporated in England and Wales and share the registered office of the company as detailed on the company information page.

 

The smallest and largest group for which group financial statements are prepared is James Convenience Retail Limited. Consolidated accounts are available form Companies House, Cardiff, CF14 3UZ.

 

James Convenience Retail Limited is controlled by J M James.

 

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