Caseware UK (AP4) 2024.0.164 2024.0.164 2024-06-302024-06-30false121falsefalse2023-07-01Haberdashery106false 01204782 2023-07-01 2024-06-30 01204782 2022-07-01 2023-06-30 01204782 2024-06-30 01204782 2023-06-30 01204782 2022-07-01 01204782 1 2023-07-01 2024-06-30 01204782 1 2022-07-01 2023-06-30 01204782 2 2023-07-01 2024-06-30 01204782 2 2022-07-01 2023-06-30 01204782 5 2023-07-01 2024-06-30 01204782 5 2022-07-01 2023-06-30 01204782 d:CompanySecretary1 2023-07-01 2024-06-30 01204782 d:Director3 2023-07-01 2024-06-30 01204782 d:Director4 2023-07-01 2024-06-30 01204782 d:Director5 2023-07-01 2024-06-30 01204782 d:Director6 2023-07-01 2024-06-30 01204782 d:RegisteredOffice 2023-07-01 2024-06-30 01204782 d:Agent1 2023-07-01 2024-06-30 01204782 e:MotorVehicles 2023-07-01 2024-06-30 01204782 e:MotorVehicles 2024-06-30 01204782 e:MotorVehicles 2023-06-30 01204782 e:MotorVehicles e:OwnedOrFreeholdAssets 2023-07-01 2024-06-30 01204782 e:FurnitureFittings 2023-07-01 2024-06-30 01204782 e:FurnitureFittings 2024-06-30 01204782 e:FurnitureFittings 2023-06-30 01204782 e:FurnitureFittings e:OwnedOrFreeholdAssets 2023-07-01 2024-06-30 01204782 e:ComputerEquipment 2023-07-01 2024-06-30 01204782 e:OwnedOrFreeholdAssets 2023-07-01 2024-06-30 01204782 e:CurrentFinancialInstruments 2024-06-30 01204782 e:CurrentFinancialInstruments 2023-06-30 01204782 e:CurrentFinancialInstruments e:WithinOneYear 2024-06-30 01204782 e:CurrentFinancialInstruments e:WithinOneYear 2023-06-30 01204782 f:UnitedKingdom 2023-07-01 2024-06-30 01204782 f:UnitedKingdom 2022-07-01 2023-06-30 01204782 f:RestEuropeOutsideUK 2023-07-01 2024-06-30 01204782 f:RestEuropeOutsideUK 2022-07-01 2023-06-30 01204782 e:UKTax 2023-07-01 2024-06-30 01204782 e:UKTax 2022-07-01 2023-06-30 01204782 e:ShareCapital 2024-06-30 01204782 e:ShareCapital 2023-06-30 01204782 e:RetainedEarningsAccumulatedLosses 2023-07-01 2024-06-30 01204782 e:RetainedEarningsAccumulatedLosses 2024-06-30 01204782 e:RetainedEarningsAccumulatedLosses 2022-07-01 2023-06-30 01204782 e:RetainedEarningsAccumulatedLosses 2023-06-30 01204782 e:RetainedEarningsAccumulatedLosses 2022-07-01 01204782 d:OrdinaryShareClass1 2023-07-01 2024-06-30 01204782 d:OrdinaryShareClass1 2024-06-30 01204782 d:OrdinaryShareClass1 2023-06-30 01204782 d:FRS102 2023-07-01 2024-06-30 01204782 d:Audited 2023-07-01 2024-06-30 01204782 d:FullAccounts 2023-07-01 2024-06-30 01204782 d:PrivateLimitedCompanyLtd 2023-07-01 2024-06-30 01204782 e:AcceleratedTaxDepreciationDeferredTax 2024-06-30 01204782 e:AcceleratedTaxDepreciationDeferredTax 2023-06-30 01204782 2 2023-07-01 2024-06-30 01204782 6 2023-07-01 2024-06-30 01204782 g:PoundSterling 2023-07-01 2024-06-30 xbrli:shares iso4217:GBP xbrli:pure

Registered number: 01204782










GROVES OF THAME LIMITED










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2024

 
GROVES OF THAME LIMITED
 
 
COMPANY INFORMATION


Directors
 A S Groves 
 M J Groves 
 N P Groves 
 G T Pope 




Company secretary
 M J Groves



Registered number
01204782



Registered office
Eastern Bypass

Thame

Oxfordshire

OX9 3FU




Independent auditors
Wellers
Accountants & Statutory Auditors

Millweye Court

73 Southern Road

Thame

Oxon

OX9 2ED




Bankers
Lloyds Bank
27-31 White Hart Street

High Wycombe

Buckinghamshire

HP11 2HL





 
GROVES OF THAME LIMITED
 

CONTENTS



Page
Strategic Report
1 - 3
Directors' Report
4 - 5
Independent Auditors' Report
6 - 9
Statement of Income and Retained Earnings
10
Statement of Financial Position
11 - 12
Statement of Cash Flows
13
Analysis of Net Debt
14
Notes to the Financial Statements
15 - 29


 
GROVES OF THAME LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2024

Introduction
 
The principal activity of the company in the year under review was that of the sale and distribution of haberdashery and needlecraft products. The company is a UK market leader in the supply of sewing, needlecraft and other related gift items to retailers in the UK, Republic of Ireland and many non-EU international markets.

Business review
 
The directors are pleased to report that the company had another successful year despite economic conditions in the UK & Irish markets being challenging during the financial period. Turnover increased by 1.0% which we consider to be a reasonable result given the continued tough trading conditions in the U.K market and also the continued transfer of some business to the Group’s new EU warehouse in central France.
The company will remain focused on improving its logistic systems and continue to increase spending on information technology. 

Environment

The Solar 298KWp installation on our Thame premises continues to perform as per expectations and is on track for our projected payback schedule. The company’s electricity consumption and carbon footprint has been substantially reduced. In Spring/Summer/early Autumn months, the main Thame office and warehouse are now operating “off grid” for many hours during the working day with excess generated electricity feeding into the local grid. Over 40% of the annual electricity consumption of our warehouse and offices in Thame is now supplied by our own green energy system.
The company has an aggressive target to reduce plastic packaging. We are continuing to work with suppliers, to reduce to a minimum, plastic packaging use. Also the company aims to use recycled plastic where plastic packaging is still required. Progress is shown graphically on the Groves website with an interactive live “speedometer” graphic enabling daily progress to be easily shared

Page 1

 
GROVES OF THAME LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024

Principal risks and uncertainties
 
The company's policy is to finance working capital through retained earnings. 
FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
The company uses various financial instruments these include cash, and various items such as trade debtors and trade creditors that arise directly from its operations. The main purpose of these financial instruments is to provide finance for the company's operations. The existence of these financial instruments exposes the company to a number of financial risks, which are described in more detail below.
Currency Risk
The company is exposed to foreign exchange risk due to a significant proportion of annual purchases made in US Dollars and Euros. Some natural hedging realised by sales exports in Euros, offsets a proportion of the Euro risk. Transaction exposure is evident in the use of foreign currency accounts. Exchange differences on retranslation of these assets and liabilities are taken to the profit and loss account.

Liquidity Risk
The company seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs. The objective is to ensure a mix of funding methods offering flexibility and cost effectiveness to match the needs of the company. The company has no borrowing and its liquidity requirements are met from cash resources.
Interest rate risk
The company finances its operations through cash resources. Interest receivable on funds on deposit is affected by changes in market interest rates.
Credit Risk
The principal credit risk arises from trade debtors. In order to manage credit risk the directors set limits for customers based on a combination of payment history and third party credit references. Credit limits are reviewed by the credit controller on a regular basis in conjunction with the debt ageing and collection history.

Financial key performance indicators
 
The Company’s turnover increased by 1.0% over the financial year with a small improvement in gross margin aided in part by more favourable foreign exchange rates.
Stock levels have stabilised after a prolonged period of reductions from the Covid peak.

Acquisitions & Future Developments

The Directors continue to review acquisition opportunities that offer long term value.
The Directors expect to continue a program designed to make order processing and picking more efficient and continue to look for opportunities to expand the product range appropriately. The company is always searching for new and profitable brand distribution opportunities.

Page 2

 
GROVES OF THAME LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024

Other key performance indicators
 
In the opinion of the directors, beyond the information included in the financial statements there are no key performance indicators whose disclosure is necessary for an understanding of the development, performance or position of the company.


This report was approved by the board and signed on its behalf.





M J Groves
Director

Date: 13 March 2025

Page 3

 
GROVES OF THAME LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2024

The directors present their report and the financial statements for the year ended 30 June 2024.

Directors' responsibilities statement

The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.
 
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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:


select suitable accounting policies for the Company's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

Results and dividends

The profit for the year, after taxation, amounted to £2,469,562 (2023 - £1,319,428).

Directors

The directors who served during the year were:

A S Groves 
M J Groves 
N P Groves 
G T Pope 

Environmental matters

The Company will seek to minimise adverse impacts on the environment from its activities, whilst continuing to address health, safety and economic issues. The Company has complied with all applicable legislation and regulations.

Future developments

The Directors expect to continue a programme designed to make order processing and picking more efficient and continue to look for opportunities to expand the product range appropriately. The company is always searching for new and profitable brand distribution opportunities and also, company acquisitions.

Page 4

 
GROVES OF THAME LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Post balance sheet events

There have been no significant events affecting the Company since the year end.

Auditors

The auditorsWellerswill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf.
 





M J Groves
Director

Date: 13 March 2025

Page 5

 
GROVES OF THAME LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE DIRECTORS OF GROVES OF THAME LIMITED
 

Opinion


We have audited the financial statements of Groves of Thame Limited (the 'Company') for the year ended 30 June 2024, which comprise the Statement of Income and Retained Earnings, the Statement of Financial Position, the Statement of Cash Flows and the related notes, including a summary of significant accounting policiesThe 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 Company's affairs as at 30 June 2024 and of its 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 Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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.


Page 6

 
GROVES OF THAME LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE DIRECTORS OF GROVES OF THAME LIMITED (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual ReportOur 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.


Opinion on other matters prescribed by the Companies Act 2006
 

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


the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.


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


adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

As explained more fully in the Directors' Responsibilities Statement set out on page 4, 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.


Page 7

 
GROVES OF THAME LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE DIRECTORS OF GROVES OF THAME LIMITED (CONTINUED)


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


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We obtained an understanding of the key laws and regulations that are applicable to the company. We determined that the most significant laws and regulations in the context of the financial statements included but were not limited to the Companies Act 2006, United Kingdom Generally Accepted Accounting Practice and relevant tax legislation. 
We also assessed which areas of the financial statements are more susceptible to misstatement. We considered the opportunities and incentives that may exist within the organisation for fraud, and identified the greatest potential for fraud in revenue recognition, particularly in respect of any manual adjustments made to revenue outside of the day to day recording of transaction and also the potential for off balance sheet items to be considered on balance sheet. We are also mandated to perform specific procedures under ISAs (UK) to respond to the risk of management override. 
The primary responsibility for the prevention and detection of fraud and irregularities rests with those charged with governance of the company and management. We are not responsible for preventing irregularities. Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows: 
• The engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; 
• We identified the laws and regulations applicable to the company through discussion with directors and other management, and from our commercial knowledge and experience; 
• Identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit; 
• We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: 
• Making enquiries of management regarding any instances of known or suspected fraud or non-compliance with laws and regulations, as well as any actual or potential litigation and claims; 
• Gaining an understanding of the design and implementation of the processes and controls in place within the company which are designed to prevent, detect or correct fraud or error within the financial statements.
To address the risk of fraud through management bias and override of controls, we:
• Reviewed correspondence with legal and regulatory bodies where applicable; 
• Performed analytical procedures to identify any unusual or unexpected relationships; 
• Reviewed the detail of certain nominal accounts for indications of management override; 
• Challenged the accounting treatment applied in respect of revenue recognised during the year, in particular in relation to manual adjustments made to revenue; 
• Identified and tested journal entries which we considered to be unusual and may be indicative of bias on the part of management or those charged with governance, investigating the rationale behind significant or unusual transactions; 
 
Page 8

 
GROVES OF THAME LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE DIRECTORS OF GROVES OF THAME LIMITED (CONTINUED)


• Reviewed the minutes of meetings of management and those charged with governance.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: 
• We agreed the financial statements disclosures to underlying supporting documentation. 
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including 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 Auditors' 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 2006Our 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 Auditors' 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.





Miss Bethany Whitmore FCCA (Senior Statutory Auditor)
for and on behalf of
Wellers
Accountants
Statutory Auditors
Millweye Court
73 Southern Road
Thame
Oxon
OX9 2ED

27 March 2025
Page 9

 
GROVES OF THAME LIMITED
 
 
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 30 JUNE 2024

2024
2023
Note
£
£

  

Turnover
 4 
28,236,437
27,991,941

Cost of sales
  
(17,315,845)
(17,446,485)

Gross profit
  
10,920,592
10,545,456

Administrative expenses
  
(8,043,007)
(8,979,660)

Operating profit
 5 
2,877,585
1,565,796

Interest receivable and similar income
  
420,949
100,387

Profit before tax
  
3,298,534
1,666,183

Tax on profit
 9 
(828,972)
(346,755)

Profit after tax
  
2,469,562
1,319,428

  

  

Retained earnings at the beginning of the year
  
19,611,831
18,642,403

  
19,611,831
18,642,403

Profit for the year
  
2,469,562
1,319,428

Dividends declared and paid
  
-
(350,000)

Retained earnings at the end of the year
  
22,081,393
19,611,831
The notes on pages 15 to 29 form part of these financial statements.

Page 10

 
GROVES OF THAME LIMITED
REGISTERED NUMBER: 01204782

STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2024

2024
2023
Note
£
£

Fixed assets
  

Tangible assets
 11 
708,429
805,989

  
708,429
805,989

Current assets
  

Stocks
 12 
7,611,658
7,964,466

Debtors: amounts falling due within one year
 13 
5,289,880
5,788,938

Cash at bank and in hand
 14 
11,370,862
8,885,272

  
24,272,400
22,638,676

Creditors: amounts falling due within one year
 15 
(2,848,031)
(3,761,976)

Net current assets
  
 
 
21,424,369
 
 
18,876,700

Total assets less current liabilities
  
22,132,798
19,682,689

Provisions for liabilities
  

Deferred tax
 16 
(41,305)
(60,758)

  
 
 
(41,305)
 
 
(60,758)

Net assets
  
22,091,493
19,621,931


Capital and reserves
  

Called up share capital 
 17 
10,100
10,100

Profit and loss account
  
22,081,393
19,611,831

  
22,091,493
19,621,931


Page 11

 
GROVES OF THAME LIMITED
REGISTERED NUMBER: 01204782
    
STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 30 JUNE 2024

The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




M J Groves
Director

Date: 13 March 2025

The notes on pages 15 to 29 form part of these financial statements.

Page 12

 
GROVES OF THAME LIMITED
 

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2024

2024
2023
£
£

Cash flows from operating activities

Profit for the financial year
2,469,562
1,319,428

Adjustments for:

Depreciation of tangible assets
143,387
150,422

Loss on disposal of tangible assets
(3,365)
(5,712)

Interest received
(420,949)
(100,387)

Taxation charge
828,972
346,755

Decrease in stocks
352,808
1,367,074

Decrease in debtors
318,793
201,586

Decrease/(increase) in amounts owed by groups
-
(513,604)

(Increase)/decrease in amounts owed by joint ventures
(3,953)
-

(Decrease)/increase in creditors
(1,328,401)
1,137,171

Corporation tax (paid)
(249,752)
(812,209)

Written off investment
-
663,604

Net cash generated from operating activities

2,107,102
3,754,128


Cash flows from investing activities

Purchase of tangible fixed assets
(69,738)
(258,738)

Sale of tangible fixed assets
27,277
11,370

Interest received
420,949
100,387

Net cash from investing activities

378,488
(146,981)

Cash flows from financing activities

Dividends paid
-
(350,000)

Net cash used in financing activities
-
(350,000)

Net increase in cash and cash equivalents
2,485,590
3,257,147

Cash and cash equivalents at beginning of year
8,885,272
5,628,125

Cash and cash equivalents at the end of year
11,370,862
8,885,272


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
11,370,862
8,885,272

11,370,862
8,885,272


Page 13

 
GROVES OF THAME LIMITED
 

ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 30 JUNE 2024




At 1 July 2023
Cash flows
At 30 June 2024
£

£

£

Cash at bank and in hand

8,885,272

2,485,590

11,370,862


8,885,272
2,485,590
11,370,862

The notes on pages 15 to 29 form part of these financial statements.

Page 14

 
GROVES OF THAME LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

1.


General information

Groves of Thame Limited is a private company, limited by shares, incorporated in England. The principal activity of the company in the year under review was that of the sale and distribution of haberdashery and needlecraft products. The company is a UK market leader in the supply of sewing, needlecraft and other related gift items to retailers in the UK, Republic of Ireland and other European markets. The registered office is Eastern Bypass, Thame, Oxfordshire, OX9 3FU. 

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).

The accounts have been prepared on a going concern basis.

The following principal accounting policies have been applied:

 
2.2

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of Income and Retained Earnings within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

Page 15

 
GROVES OF THAME LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

2.Accounting policies (continued)

 
2.3

Revenue

Turnover is recognised to the extent that it is probable that the economic benefits will flow to the Company and the turnover can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before turnover is recognised:

Sale of goods

Turnover from the sale of goods is recognised when all of the following conditions are satisfied:
the Company has transferred the significant risks and rewards of ownership to the buyer;
the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of turnover can be measured reliably;
it is probable that the Company will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

 
2.4

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

 
2.5

Interest income

Interest income is recognised in profit or loss using the accrual method.

 
2.6

Pensions

Defined contribution pension plan

The Company contributes to a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Company in independently administered funds.

Page 16

 
GROVES OF THAME LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

2.Accounting policies (continued)

 
2.7

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.


 
2.8

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

At each reporting date the Company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

Page 17

 
GROVES OF THAME LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

2.Accounting policies (continued)


2.8
Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on a reducing balance basis.

Depreciation is provided on the following basis:

Motor vehicles
-
30%
Fixtures and fittings
-
15%
Computer equipment
-
30%

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.9

Valuation of investments

Investments in unlisted Company shares, whose market value can be reliably determined, are remeasured to market value at each reporting date. Gains and losses on remeasurement are recognised in the Statement of Income and Retained Earnings for the period. Where market value cannot be reliably determined, such investments are stated at historic cost less impairment.

 
2.10

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

 
2.11

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.12

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Company's cash management.

Page 18

 
GROVES OF THAME LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

2.Accounting policies (continued)

 
2.13

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.14

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

Page 19

 
GROVES OF THAME LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

2.Accounting policies (continued)

 
2.15

Financial instruments

The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the Company's Statement of Financial Position 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 trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.

Other financial assets

Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.

Impairment of financial assets

At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. 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. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

Basic financial liabilities

Page 20

 
GROVES OF THAME LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

2.Accounting policies (continued)


2.15
Financial instruments (continued)

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 the deduction of all its liabilities.

Basic financial liabilities, which include trade and other creditors, bank loans and other loans are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.

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

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

Other financial instruments

Derivatives, including forward exchange contracts, futures contracts and interest rate swaps, are not classified as basic financial instruments. These are initially recognised at fair value on the date the derivative contract is entered into, with costs being charged to the profit or loss. They are subsequently measured at fair value with changes in the profit or loss.

Debt instruments that do not meet the conditions as set out in FRS 102 paragraph 11.9 are subsequently measured at fair value through the profit or loss. This recognition and measurement would also apply to financial instruments where the performance is evaluated on a fair value basis as with a documented risk management or investment strategy.

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

Financial liabilities are derecognised when the Company's contractual obligations expire or are discharged or cancelled.

 
2.16

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

Page 21

 
GROVES OF THAME LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

3.


Judgements in applying accounting policies and key sources of estimation uncertainty

Preparation of the financial statements requires management to make significant judgements and estimates by using information available at the balance sheet date, the Directors make judgements based on experience regarding the level of provision required to account for potentially uncollectable receivables. 
Stock provisions are considered by management to involve a significant degree of estimation uncertainity and are recorded to reflect the relevant stock items at net realisable value where appropriate, as noted in the accounting policies. The directors judgement is applied to categorising these items within the stock system based upon historical stock performance and industry knowledge. 


4.


Turnover

Analysis of turnover by country of destination:

2024
2023
£
£

United Kingdom
25,271,664
24,649,154

Rest of Europe
2,964,773
3,342,787

28,236,437
27,991,941



5.


Operating profit

The operating profit is stated after charging:

2024
2023
£
£

Exchange differences
11,883
(1,627)

Other operating lease rentals
702,342
702,342


6.


Auditors' remuneration

During the year, the Company obtained the following services from the Company's auditors:


2024
2023
£
£

Fees payable to the Company's auditors for the audit of the Company's financial statements
18,150
18,150

The Company has taken advantage of the exemption not to disclose amounts paid for non-audit services as these are disclosed in the consolidated accounts of the parent Company.

Page 22

 
GROVES OF THAME LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

7.


Employees

Staff costs, including directors' remuneration, were as follows:


2024
2023
£
£

Wages and salaries
4,547,123
5,383,247

Social security costs
491,918
604,971

Cost of defined contribution scheme
88,357
72,766

5,127,398
6,060,984


The average monthly number of employees, including the directors, during the year was as follows:


        2024
        2023
            No.
            No.







Administration
35
48



Selling and Distribution
71
73

106
121


8.


Directors' remuneration

2024
2023
£
£

Directors' emoluments
1,323,275
2,342,639

Company contributions to defined contribution pension schemes
6,905
-

1,330,180
2,342,639


The highest paid director received remuneration of £311,720 (2023 - £1,747,738).

Page 23

 
GROVES OF THAME LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

9.


Taxation


2024
2023
£
£

Corporation tax


Current tax on profits for the year
848,425
314,687


848,425
314,687


Total current tax
848,425
314,687

Deferred tax


Origination and reversal of timing differences
(19,453)
32,068

Total deferred tax
(19,453)
32,068


828,972
346,755

Factors affecting tax charge for the year

The tax assessed for the year is higher than (2023 - higher than) the standard rate of corporation tax in the UK of 25% (2023 - 20.5%). The differences are explained below:

2024
2023
£
£


Profit on ordinary activities before tax
3,298,534
1,666,183


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 20.5%)
824,634
341,568

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
834
5,890

Capital allowances for year in excess of depreciation
17,421
(31,548)

Other differences leading to an increase (decrease) in the tax charge
(13,917)
30,845

Total tax charge for the year
828,972
346,755

Page 24

 
GROVES OF THAME LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
 
9.Taxation (continued)


Factors that may affect future tax charges

Changes in tax laws and rates may affect future tax charges.


10.


Dividends

2024
2023
£
£


Dividends
-
350,000

-
350,000


11.


Tangible fixed assets





Motor vehicles
Fixtures & fittings
Total

£
£
£



Cost or valuation


At 1 July 2023
281,390
2,175,790
2,457,180


Additions
69,738
-
69,738


Disposals
(56,145)
-
(56,145)



At 30 June 2024

294,983
2,175,790
2,470,773



Depreciation


At 1 July 2023
159,510
1,491,680
1,651,190


Charge for the year on owned assets
40,649
102,738
143,387


Disposals
(32,233)
-
(32,233)



At 30 June 2024

167,926
1,594,418
1,762,344



Net book value



At 30 June 2024
127,057
581,372
708,429



At 30 June 2023
121,880
684,109
805,989

Page 25

 
GROVES OF THAME LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

12.


Stocks

2024
2023
£
£

Finished goods and goods for resale
7,611,658
7,964,466

7,611,658
7,964,466



13.


Debtors

2024
2023
£
£


Trade debtors
3,613,992
3,897,785

Amounts owed by group undertakings
667,556
663,604

Other debtors
809,672
1,020,220

Prepayments and accrued income
198,660
207,329

5,289,880
5,788,938



14.


Cash and cash equivalents

2024
2023
£
£

Cash at bank and in hand
11,370,862
8,885,272

11,370,862
8,885,272



15.


Creditors: Amounts falling due within one year

2024
2023
£
£

Trade creditors
609,665
667,600

Corporation tax
414,457
-

Other taxation and social security
404,749
413,094

Other creditors
26,508
27,059

Accruals and deferred income
1,392,652
2,654,223

2,848,031
3,761,976


Page 26

 
GROVES OF THAME LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

16.


Deferred taxation




2024
2023


£

£






At beginning of year
(60,758)
(28,690)


Charged to profit or loss
19,453
(32,068)



At end of year
(41,305)
(60,758)

The provision for deferred taxation is made up as follows:

2024
2023
£
£


Accelerated capital allowances
(41,305)
(60,758)

Accelerated capital allowances
(41,305)
(60,758)


17.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



101,000 (2023 - 101,000) Ordinary shares of £0.10 each
10,100
10,100



18.


Contingent liabilities

A contingent liability existed to the sum of approximately £1,485,318 at the 30 June 2023. This amount was paid during the year ended 30 June 2024. 

Page 27

 
GROVES OF THAME LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024


19.


Pension commitments

The company contributes to a defined contributions pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and amounted to £78,961 (2023: £72,766)  


20.


Commitments under operating leases

The Company had no commitments under non-cancellable operating leases at the reporting date.


21.


Related party transactions

The company traded with HTL Limited, a company incorporated in Hong Kong, of which 100% 
of the share capital is owned by Sewgroup HTL (Holdings) Limited. In the previous year Groves of Thame (Holdings) Limited acquired 100% of the share capital of Sewgroup HTL (Holdings) Limited as part of the transaction Groves of Thame Limited transferred its shares in Sewgroup HTL (Holdings) Limited to Groves of Thame (Holdings) Limited. 


Groves Asia Limited is a company owned by the directors of Groves of Thame Limited. At the year end Groves of Thame Limited owed Groves Asia Limited £Nil (2023 £Nil).   

Groves of Thame (Holdings) Limited a company incorporated in the UK is the ultimate parent company
for the year ended 30th June 2024 which holds 100% of Groves of Thame Limited.  

All transactions were undertaken on an arms length basis and are summarised below:




2024
2023
£
£

HTL Purchases
3,835,263
3,699,531
HTL Supplier balance
(68,745)
(65,331)
Groves of Thame (Holdings) Limited intercompany balance
663,604
663,604
Dividend paid to Groves of Thame (Holdings) Limited
-
350,000
Rent paid to Groves of Thame (Holdings) Limited
696,336
696,336
Adjustoform Products Limited sales
13,751
25,108
Adjustoform Products Limited supplier balance
(5,311)
(12,312)
Adjustoform Products Limited purchases
22,340
39,033
Sewgroup LLC intercompany balance
3,953
-
5,161,191
5,395,969


Page 28

 
GROVES OF THAME LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

22.


Controlling party

The directors consider Groves of Thame (Holdings) Limited a company incorporated in the UK on 03/02/2015 to be the ultimate parent company for the year ended 30th June 2024. 
Ultimate control of Groves of Thame Limited is considered to rest with the Groves family who had controlling interest in the company's parent company throughout the year ended 30th June 2024 and 2023. 

 
Page 29