119 false false false false true false false false false false false true false false false false false false No description of principal activity 2022-10-01 Sage Accounts Production Advanced 2023 - FRS102_2023 247,640 69,112 29,446 40,168 29,446 40,168 5,889 8,034 5,889 8,034 32,134 23,557 xbrli:pure xbrli:shares iso4217:GBP 11568912 2022-10-01 2023-09-30 11568912 2023-09-30 11568912 2022-09-30 11568912 2021-10-01 2022-09-30 11568912 2022-09-30 11568912 2021-09-30 11568912 core:MotorVehicles 2022-10-01 2023-09-30 11568912 bus:RegisteredOffice 2022-10-01 2023-09-30 11568912 bus:OrdinaryShareClass1 2022-10-01 2023-09-30 11568912 bus:LeadAgentIfApplicable 2022-10-01 2023-09-30 11568912 bus:Director1 2022-10-01 2023-09-30 11568912 bus:Director2 2022-10-01 2023-09-30 11568912 core:WithinOneYear 2023-09-30 11568912 core:WithinOneYear 2022-09-30 11568912 core:MotorVehicles 2022-09-30 11568912 core:MotorVehicles 2023-09-30 11568912 core:AfterOneYear 2023-09-30 11568912 core:AfterOneYear 2022-09-30 11568912 core:UKTax 2022-10-01 2023-09-30 11568912 core:UKTax 2021-10-01 2022-09-30 11568912 core:RetainedEarningsAccumulatedLosses 2022-10-01 2023-09-30 11568912 core:RetainedEarningsAccumulatedLosses 2021-10-01 2022-09-30 11568912 bus:OrdinaryShareClass1 2021-10-01 2022-09-30 11568912 core:RetainedEarningsAccumulatedLosses 2022-09-30 11568912 core:RetainedEarningsAccumulatedLosses 2021-09-30 11568912 core:RetainedEarningsAccumulatedLosses 2023-09-30 11568912 core:RetainedEarningsAccumulatedLosses 2022-09-30 11568912 core:ShareCapital 2023-09-30 11568912 core:ShareCapital 2022-09-30 11568912 core:BetweenOneFiveYears 2023-09-30 11568912 core:MotorVehicles 2022-09-30 11568912 bus:LeadAgentIfApplicable 2021-10-01 2022-09-30 11568912 bus:MediumEntities 2022-10-01 2023-09-30 11568912 bus:Audited 2022-10-01 2023-09-30 11568912 bus:Medium-sizedCompaniesRegimeForAccounts 2022-10-01 2023-09-30 11568912 bus:PrivateLimitedCompanyLtd 2022-10-01 2023-09-30 11568912 bus:FullAccounts 2022-10-01 2023-09-30 11568912 bus:OrdinaryShareClass1 2023-09-30 11568912 bus:OrdinaryShareClass1 2022-09-30
COMPANY REGISTRATION NUMBER: 11568912
Wirex Enterprises Ltd
Financial Statements
30 September 2023
Wirex Enterprises Ltd
Financial Statements
Year ended 30 September 2023
Contents
Page
Officers and professional advisers
1
Strategic report
2
Directors' report
4
Independent auditor's report to the members
6
Statement of income and retained earnings
10
Statement of financial position
11
Statement of cash flows
12
Notes to the financial statements
13
Wirex Enterprises Ltd
Officers and Professional Advisers
The board of directors
Mr M S A Chaudhry
Mrs R Chaudhry
Registered office
113 -115 High Road
Rayleigh
Essex
England
SS6 7SL
Auditor
Chowdhary & Co
Chartered accountants & statutory auditor
46 Syon Lane
Isleworth
Middlesex
TW7 5NQ
Bankers
Lloyds Bank Plc
25 Gresham Street
London
EC2V 7HN
Wirex Enterprises Ltd
Strategic Report
Year ended 30 September 2023
The directors' presents the strategic report for the year ended 30 September 2023. The principal activity of Wirex Enterprises Ltd is that of operations of Shell Petrol stations, selling fuel and consumer products within the Shell Kiosk. FAIR VIEW OF THE BUSINESS The company delivered a strong performance in a very challenging environment. The hike in cost of living, interest rates fluctuations alongside current inflation, affected consumers spending. Naturally, this challenging environment influenced some of the supply chain and resulted in some disruptions in financial results. Despite the aforementioned challenges, coupled with closure of four sites, Wirex delivered strong sales of £12.7M (2022: £13.4M). Profit before taxation was in the circa of £318K (2022: £80K). The financial position of the company remains strong with positive net current assets £267K (2022: £462K). In order to deliver this strong and sustainable growth, the Directors took some key decisions: - Broaden the customer offers to generate additional revenue - Continued focus on cost efficiency, to reduce cost pressures as well as maintaining strong margins - Streamline overheads costs in line with revenue FINANCIAL KEY PERFORMANCE INDICATORS (KPIs) The key performance indicators for the company are: - Revenue per petrol station - Wages costs & - Profit Before Interest, Taxation, Depreciation & Amortisation (EBITDA) Although some of these indicators did improve during the current period, nevertheless; sales for the period were affected by the prevailing increase in fuel prices which has resulted in consumers switching over to electric driven cars. RISKS AND UNCERTAINTIES The major risks here are deemed the Global economic environment, the market conditions as well as consumers' preferences. The Directors continuously monitor the major macro-economic events and ensure appropriate steps are taken to mitigate the company exposure to any market risks. Looking ahead, the economic growth somehow is still very unpredictable as the inflation as well as interest rates are still stubbornly high inevitably will have an impact on the household disposable income. The Directors do have budgeted retail business agreement to December 2024, which is reviewed and monitored on regular basis. Due to increase in petrol and diesel prices sales have been impacted and as a result a big number of car drivers are switching to electric cars. This has impacted the sales and in the coming years as more and more driver switch to electric cars will impact the sale of fuel and as a result will impact the store sales. Also, changes in legislation regarding carbon emission in cities and introduction of low carbon emission zones in cities will restrict customer flow and impact certain stores sales. FUTURE DEVELOPMENT The Directors will continue to focus on maximising the revenue generated from each site as well as closely managing operating costs. Following the year end, the company has continued trading in line with the Directors expectations. The Directors are confident that the company will continue to deliver a sustainable revenue and profit growth for the foreseeable future through investing in people and technology.
This report was approved by the board of directors on 8 March 2024 and signed on behalf of the board by:
Mr M S A Chaudhry
Director
Registered office:
113 -115 High Road
Rayleigh
Essex
England
SS6 7SL
Wirex Enterprises Ltd
Directors' Report
Year ended 30 September 2023
The directors present their report and the Financial statements of the company for the year ended 30 September 2023 .
Directors
The directors who served the company during the year were as follows:
Mr M S A Chaudhry
Mrs R Chaudhry
Dividends
Particulars of recommended dividends are detailed in note 12 to the Financial statements.
Directors' responsibilities statement
The directors are responsible for preparing the strategic report, directors' report and the Financial statements in accordance with applicable law and regulations. Company law requires the directors to prepare Financial statements for each financial year. Under that law the directors have elected to prepare the Financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the Financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the profit or loss of the company for that period. In preparing these Financial statements, the directors are required to: - select suitable accounting policies and then apply them consistently; - make judgments and accounting estimates that are reasonable and prudent; - prepare the Financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the Financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Auditor
Each of the persons who is a director at the date of approval of this report confirms that: - so far as they are aware, there is no relevant audit information (as defined by section 418(3)of Companies Act 2006) of which the company's auditor are unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information. The auditors, Chowdhary & Co, were re-appointed under section 487/(2) of the Companies Act 2006.
This report was approved by the board of directors on 8 March 2024 and signed on behalf of the board by:
Mr M S A Chaudhry
Director
Registered office:
113 -115 High Road
Rayleigh
Essex
England
SS6 7SL
Wirex Enterprises Ltd
Independent Auditor's Report to the Members of Wirex Enterprises Ltd
Year ended 30 September 2023
Opinion
We have audited the Financial statements of Wirex Enterprises Ltd (the 'company') for the year ended 30 September 2023 which comprise the statement of income and retained earnings, statement of financial position, statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion the Financial statements: - give a true and fair view of the state of the company's affairs as at 30 September 2023 and of its profit for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; - have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the Financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the Financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the Financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the Financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
The other information comprises the information included in the annual report, other than the Financial statements and our auditor’s report thereon. The directors are responsible for the other information. Our opinion on the Financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the Financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the Financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the Financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the strategic report and the directors' report for the financial year for which the Financial statements are prepared is consistent with the Financial statements; and
- the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: - adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or - the Financial statements are not in agreement with the accounting records and returns; or - certain disclosures of directors' remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the Financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of Financial statements that are free from material misstatement, whether due to fraud or error. In preparing the Financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the Financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: We have worked on the audit using recognised audit programmes which are bespoke specifically for client's nature of business. We consider that these programmes are rigorous and meet the requirement of the supervisory bodies and enable us to conclude a true and fair audit opinion. As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also: - Identify and assess the risks of material misstatement of the Financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. - Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the Financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the Financial statements, including the disclosures, and whether the Financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. Use of our report
This report is made solely to the company's members, as a body, in accordance with chapter 3 of part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Bhupindar Chowdhary FCA
(Senior Statutory Auditor)
For and on behalf of
Chowdhary & Co
Chartered accountants & statutory auditor
46 Syon Lane
Isleworth
Middlesex
TW7 5NQ
8 March 2024
Wirex Enterprises Ltd
Statement of Income and Retained Earnings
Year ended 30 September 2023
2023
2022
Note
£
£
Turnover
4
12,762,192
13,428,672
Cost of sales
8,333,675
9,238,055
-------------
-------------
Gross profit
4,428,517
4,190,617
Administrative expenses
4,105,621
4,109,946
Other operating income
5
6,885
521
------------
------------
Operating profit
6
329,781
81,192
Interest payable and similar expenses
10
11,698
1,394
------------
------------
Profit before taxation
318,083
79,798
Tax on profit
11
70,443
10,686
---------
--------
Profit for the financial year and total comprehensive income
247,640
69,112
---------
--------
Dividends paid and payable
12
( 50,000)
( 50,000)
Retained earnings at the start of the year
56,298
37,186
---------
--------
Retained earnings at the end of the year
253,938
56,298
---------
--------
All the activities of the company are from continuing operations.
Wirex Enterprises Ltd
Statement of Financial Position
30 September 2023
2023
2022
Note
£
£
Fixed assets
Tangible assets
13
32,134
23,557
Current assets
Stocks
14
304,904
463,274
Debtors
15
2,166,073
2,033,621
Cash at bank and in hand
447,706
379,794
------------
------------
2,918,683
2,876,689
Creditors: amounts falling due within one year
16
2,651,678
2,414,075
------------
------------
Net current assets
267,005
462,614
---------
---------
Total assets less current liabilities
299,139
486,171
Creditors: amounts falling due after more than one year
17
45,101
429,773
---------
---------
Net assets
254,038
56,398
---------
---------
Capital and reserves
Called up share capital
21
100
100
Profit and loss account
22
253,938
56,298
---------
--------
Shareholders funds
254,038
56,398
---------
--------
These Financial statements have been prepared in accordance with the provisions applicable to companies subject to the medium companies regime.
These Financial statements were approved by the board of directors and authorised for issue on 8 March 2024 , and are signed on behalf of the board by:
Mr M S A Chaudhry
Director
Company registration number: 11568912
Wirex Enterprises Ltd
Statement of Cash Flows
Year ended 30 September 2023
2023
2022
£
£
Cash flows from operating activities
Profit for the financial year
247,640
69,112
Adjustments for:
Depreciation of tangible assets
8,034
5,889
Government grant income
( 521)
Interest payable and similar expenses
11,698
1,394
Gains on disposal of tangible assets
( 3,927)
Tax on profit
70,443
10,686
Accrued (income)/expenses
( 557,217)
467,760
Changes in:
Stocks
158,370
( 6,271)
Trade and other debtors
( 132,452)
( 1,291,278)
Trade and other creditors
367,146
351,785
---------
------------
Cash generated from operations
169,735
( 391,444)
Interest paid
( 11,698)
( 1,394)
Tax paid
( 16,865)
---------
---------
Net cash from/(used in) operating activities
141,172
( 392,838)
---------
---------
Cash flows from investing activities
Purchase of tangible assets
( 40,168)
( 29,446)
Proceeds from sale of tangible assets
27,484
---------
---------
Net cash used in investing activities
( 12,684)
( 29,446)
---------
---------
Cash flows from financing activities
Proceeds from borrowings
( 38,532)
21,040
Government grant income
521
Payments of finance lease liabilities
27,956
Dividends paid
( 50,000)
( 50,000)
---------
---------
Net cash used in financing activities
( 60,576)
( 28,439)
---------
---------
Net increase/(decrease) in cash and cash equivalents
67,912
( 450,723)
Cash and cash equivalents at beginning of year
379,794
830,517
---------
---------
Cash and cash equivalents at end of year
447,706
379,794
---------
---------
Wirex Enterprises Ltd
Notes to the Financial Statements
Year ended 30 September 2023
1. General information
The company is a private company limited by shares, registered in England and Wales. The address of the registered office is 113 -115 High Road, Rayleigh, Essex, SS6 7SL, England.
2. Statement of compliance
These Financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.
3. Accounting policies
Basis of preparation
The Financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.
The Financial statements are prepared in sterling, which is the functional currency of the entity.
Judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. 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.
Revenue recognition
Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax. Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably. Revenue from the rendering of services is measured by reference to the stage of completion of the service transaction at the end of the reporting period provided that the outcome can be reliably estimated. When the outcome cannot be reliably estimated, revenue is recognised only to the extent that it is probable the expenses recognised will be recovered.
Income tax
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.
Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
Tangible assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Motor vehicles
-
20% straight line
Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition. At each balance sheet 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 and loss.
Finance leases and hire purchase contracts
Assets held under finance leases and hire purchase contracts are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.
Government grants
Government grants are recognised at the fair value of the asset received or receivable. Grants are not recognised until there is reasonable assurance that the company will comply with the conditions attaching to them and the grants will be received. Government grants are recognised using the accrual model and the performance model. Under the accrual model, government grants relating to revenue are recognised on a systematic basis over the periods in which the company recognises the related costs for which the grant is intended to compensate. Grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs are recognised in income in the period in which it becomes receivable. Grants relating to assets are recognised in income on a systematic basis over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income and not deducted from the carrying amount of the asset. Under the performance model, where the grant does not impose specified future performance-related conditions on the recipient, it is recognised in income when the grant proceeds are received or receivable. Where the grant does impose specified future performance-related conditions on the recipient, it is recognised in income only when the performance-related conditions have been met. Where grants received are prior to satisfying the revenue recognition criteria, they are recognised as a liability.
Financial instruments
A financial asset or a financial liability is recognised only when the company becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost. Where investments in non-convertible preference shares and non-puttable ordinary shares or preference shares are publicly traded or their fair value can otherwise be measured reliably, the investment is subsequently measured at fair value with changes in fair value recognised in profit or loss. All other such investments are subsequently measured at cost less impairment. Other financial instruments, including derivatives, are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Other financial instruments are subsequently measured at fair value, with any changes recognised in profit or loss, with the exception of hedging instruments in a designated hedging relationship.
Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately. For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics. Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
4. Turnover
Turnover arises from:
2023
2022
£
£
Sale of goods
11,322,031
12,241,474
Commission
1,440,161
1,187,198
-------------
-------------
12,762,192
13,428,672
-------------
-------------
The whole of the turnover is attributable to the principal activity of the company wholly undertaken in the United Kingdom.
5. Other operating income
2023
2022
£
£
Government grant income
521
Other operating income
6,885
-------
----
6,885
521
-------
----
6. Operating profit
Operating profit or loss is stated after charging/crediting:
2023
2022
£
£
Depreciation of tangible assets
8,034
5,889
Gains on disposal of tangible assets
( 3,927)
-------
-------
7. Auditor's remuneration
2023
2022
£
£
Fees payable for the audit of the financial statements
7,500
7,500
-------
-------
8. Staff costs
The average number of persons employed by the company during the year, including the directors, amounted to:
2023
2022
No.
No.
Administrative staff
117
110
Management staff
2
----
----
119
110
----
----
The aggregate payroll costs incurred during the year, relating to the above, were:
2023
2022
£
£
Wages and salaries
2,053,893
1,917,102
Social security costs
116,188
114,934
Other pension costs
32,735
33,882
------------
------------
2,202,816
2,065,918
------------
------------
9. Directors' remuneration
The directors' aggregate remuneration in respect of qualifying services was:
2023
2022
£
£
Remuneration
45,850
--------
----
The directors are the only key management personnel. During the year retirement benefits of £889 were accruing to the directors in respect of money purchase pension schemes.
10. Interest payable and similar expenses
2023
2022
£
£
Interest on banks loans and overdrafts
10,232
1,394
Interest on obligations under finance leases and hire purchase contracts
1,466
--------
-------
11,698
1,394
--------
-------
11. Tax on profit
Major components of tax expense
2023
2022
£
£
Current tax:
UK current tax expense
68,117
10,686
Adjustments in respect of prior periods
2,326
--------
--------
Total current tax
70,443
10,686
--------
--------
--------
--------
Tax on profit
70,443
10,686
--------
--------
Reconciliation of tax expense
The tax assessed on the profit on ordinary activities for the year is lower than (2022: lower than) the standard rate of corporation tax in the UK of 25 % (2022: 19 %).
2023
2022
£
£
Profit on ordinary activities before taxation
318,083
79,798
---------
--------
Profit on ordinary activities by rate of tax
79,521
15,162
Adjustment to tax charge in respect of prior periods
2,326
Effect of capital allowances and depreciation
( 2,144)
( 4,476)
Effect of different UK tax rates on some earnings
(9,260)
---------
--------
Tax on profit
70,443
10,686
---------
--------
There are no factors which may affect future tax charges.
12. Dividends
Dividends paid during the year (excluding those for which a liability existed at the end of the prior year):
2023
2022
£
£
Dividends on equity shares
50,000
50,000
--------
--------
13. Tangible assets
Motor vehicles
£
Cost
At 1 October 2022
29,446
Additions
40,168
Disposals
( 29,446)
--------
At 30 September 2023
40,168
--------
Depreciation
At 1 October 2022
5,889
Charge for the year
8,034
Disposals
( 5,889)
--------
At 30 September 2023
8,034
--------
Carrying amount
At 30 September 2023
32,134
--------
At 30 September 2022
23,557
--------
14. Stocks
2023
2022
£
£
Raw materials and consumables
304,904
463,274
---------
---------
15. Debtors
2023
2022
£
£
Trade debtors
1,122,062
1,044,478
Prepayments and accrued income
39,133
Other debtors
1,044,011
950,010
------------
------------
2,166,073
2,033,621
------------
------------
16. Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans and overdrafts
10,018
Trade creditors
1,445,418
1,470,445
Accruals and deferred income
55,222
612,439
Corporation tax
84,684
31,106
Social security and other taxes
130,229
135,395
Obligations under finance leases and hire purchase contracts
5,345
Other creditors
920,762
164,690
------------
------------
2,651,678
2,414,075
------------
------------
17. Creditors: amounts falling due after more than one year
2023
2022
£
£
Bank loans and overdrafts
22,490
71,040
Obligations under finance leases and hire purchase contracts
22,611
Other creditors
358,733
--------
---------
45,101
429,773
--------
---------
The bank loans and overdrafts are secured by fixed and floating charges overall the assets of the company to which they relate, by way of debenture.
18. Finance leases and hire purchase contracts
The total future minimum lease payments under finance leases and hire purchase contracts are as follows:
2023
2022
£
£
Not later than 1 year
5,345
Later than 1 year and not later than 5 years
22,611
--------
----
27,956
--------
----
19. Employee benefits
Defined contribution plans
The amount recognised in profit or loss as an expense in relation to defined contribution plans was £ 32,735 (2022: £ 33,882 ).
The Company operates a defined contributions pension scheme. These assets are held separately from those of the company in an independently administered fund. Contributions totalling £4,927 (2022: £24,143) were payable to the funds at the balance sheet date and are included in creditors.
20. Government grants
The amounts recognised in the Financial statements for government grants are as follows:
2023
2022
£
£
Recognised in other operating income:
Government grants recognised directly in income
521
----
----
21. Called up share capital
Issued, called up and fully paid
2023
2022
No.
£
No.
£
Ordinary shares of £ 1 each
100
100
100
100
----
----
----
----
22. Reserves
Profit and loss account - This reserve records retained earnings and accumulated losses.
23. Analysis of changes in net debt
At 1 Oct 2022
Cash flows
At 30 Sep 2023
£
£
£
Cash at bank and in hand
379,794
67,912
447,706
Debt due within one year
(15,363)
(15,363)
Debt due after one year
(71,040)
25,939
(45,101)
---------
--------
---------
308,754
78,488
387,242
---------
--------
---------
24. Related party transactions
Included under other debtors are amounts totalling £1,044,011 (2022: £950,010) owed by Rehmat Real Estate Ltd, a company owned by the director Mr M S A Chaudhry . Included under other creditors is an amount of £850,335 (2022: £464,289) due to the directors. No interest is charged and there are no fixed terms of repayment. The directors have no intention to request these funds until the company's finances are in a position to enable the repayment to be done without impacting on the business ability to continue trading in the foreseeable future. During the year children of the directors Mr and Mrs Chaudhry were paid £29,100 (2022: £35,950) as wages. These transactions were deemed to be considered at arm's length.
25. Ultimate controlling party
As at 30 September 2023, the ultimate controlling party was Mr. M S A Chaudhry and Mrs R Chaudhry by virtue of their shareholding.