Company registration number 01872912 (England and Wales)
YAU BROTHERS & CO LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
YAU BROTHERS & CO LIMITED
COMPANY INFORMATION
Directors
Mr C K Yau
Mr M K Yau
Mr K W Yau
Mr W K Yau
Mrs W K Yau
Mr M K Yau
Secretary
Mrs W K Yau
Company number
01872912
Registered office
YB Building
Princes Street
Southampton
Hampshire
SO14 5RP
Auditor
HJS Accountants Limited
Tagus House
9 Ocean Way
Southampton
Hampshire
United Kingdom
SO14 3TJ
YAU BROTHERS & CO LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Profit and loss account
8
Statement of comprehensive income
9
Balance sheet
10 - 11
Statement of changes in equity
12
Statement of cash flows
13
Notes to the financial statements
14 - 26
YAU BROTHERS & CO LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 1 -

The directors present their Strategic Report for the period ended 30 September 2024.

 

The principal activity of the Company is that of procurement and supply of oriental foodstuffs via wholesale and retail distribution channels.

Review of the business

The Company consolidated its position as a leading distributor to the oriental food market in the UK and Channel Islands. This market sector remains very competitive across the geographical region, yet saw improving profitability for the business, with an Operating Profit of £376k for the year (2022/23 – Operating Profit of £232k).

 

The successful overall performance of the Company has been achieved against the backdrop of an ongoing unstable economic and political climate, evolution of market forces, and interference within the supply chain.

 

During the financial year, the company ensured that sufficient investment in capital expenditure was made, which will enable future expansion of distribution markets.

 

The business continues to support and promote the work of Chinese community associations, who organize cultural events in the region.

Key performance indicators

The Company's main KPIs are the measurement of Turnover, Gross Profit and Net Profit over time

For this accounting period in comparison to the prior year, these are:

 

                 2023/24         2022/23

                 £000s £000s

Turnover                 18,217 18,120

Gross Profit £             3,467 3,326

Gross Profit %             19.0% 18.4%

Net Profit/(Loss) after taxation     271 122

Net Profit %             2.0%     1.1%

 

Notwithstanding the challenges referred to above, the directors continue to review, plan and implement growth and development strategies for the business, to ensure its continued trade and profitability in the future.

YAU BROTHERS & CO LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 2 -
Principal risks and uncertainties

The directors identify, assess and manage risks and their potential impact on cost and supply, due to changing economic and political factors, These include more complicated and costly regulation following Brexit, the ongoing Ukraine conflict, impacts of the US election and Middle Eastern conflict, the changing world climate, and industry factors.

 

Supply Chain Risk

The directors recognise that there are multiple risk factors and business challenges inherent in management of its supply chain, within the hugely competitive grocery market place. The Company must consistently adapt to offer an extensive range of products at competitive prices, to meet the needs of customers and thereby maintain its strong position within the market.

Recognising volatile supply conditions, a continued focus on strategies to maintain key sources of supply, supplemented with new and reliable trade partners, in order to balance both price and optimal stockholding levels, are key to the business’s profitability and strong cash position.

Increased energy costs, inflationary pressures, high interest rates, and other economic threats, have caused greater uncertainty in customer behaviours, affecting consumer demand. Therefore, spending on take-away and restaurant meals, being a discretionary expense to many, creates unpredictability in sales levels in each segment of the business.

Financial Risks

As a result of its day to day business operations, variation in the value of financial assets and liabilities exposes the Company to a number of financial risks, primarily:

Liquidity risk

The Company seeks to manage financial risk by ensuring that sufficient liquidity, in the form of cash holdings, is available to meet it's foreseeable working capital needs, and to invest in the assets of the business, primarily variable stock levels and capital expenditure.

Credit risk

The Company's principal financial assets are cash and trade debtors. The principal credit risk arises therefore from its trade debtors.

In order to manage credit risk the directors set credit limits for customers based on a combination of payment history and reputation. Credit limits are reviewed on a regular basis in conjunction with debt ageing and collection history.

Currency Risk

The Company purchases some goods in foreign currencies, and uses hedging techniques to minimise currency risk where possible. Recent economic challenges, for instance Brexit and the war in Ukraine, have weakened the Pound, and pushed up the price of imported goods.

On behalf of the board

Mr C K Yau
Director
1 April 2025
YAU BROTHERS & CO LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 3 -

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

Principal activities

The principal activity of the company in the year under review was that of a food wholesaler and retailer.

Directors

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

Mr C K Yau
Mr M K Yau
Mr K W Yau
Mr W K Yau
Mrs W K Yau
Mr M K Yau
Statement of disclosure to auditor

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

On behalf of the board
Mr C K Yau
Director
1 April 2025
YAU BROTHERS & CO LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 4 -

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

 

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

 

 

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

YAU BROTHERS & CO LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF YAU BROTHERS & CO LIMITED
- 5 -
Opinion

In our opinion the financial statements:

 

We have audited the financial statements of Yau Brothers & Co Limited for the year ended 30 September 2024 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

Basis for opinion

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

Conclusions relating to going concern

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

 

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

 

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

Other information

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

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

YAU BROTHERS & CO LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF YAU BROTHERS & CO LIMITED (CONTINUED)
- 6 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report and the directors' report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

 

Responsibilities of directors

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

Auditor's responsibilities for the audit of the financial statements

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

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 considered those laws and regulations that have a direct impact on the financial statements, such as Companies Act 2006. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financials statements (including management override of controls) and determined that the principal risk related to inappropriate journal entries to manipulate financial results.


There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or though collusion.

 

YAU BROTHERS & CO LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF YAU BROTHERS & CO LIMITED (CONTINUED)
- 7 -

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

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

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Angela Trainor
Senior Statutory Auditor
For and on behalf of HJS Accountants Limited
16 April 2025
Chartered Accountants and Statutory Auditor
Tagus House
9 Ocean Way
Southampton
Hampshire
United Kingdom
SO14 3TJ
YAU BROTHERS & CO LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
18,217,303
18,119,721
Cost of sales
(14,750,290)
(14,793,716)
Gross profit
3,467,013
3,326,005
Distribution costs
(373,014)
(380,812)
Administrative expenses
(2,733,240)
(2,727,187)
Other operating income
15,024
13,862
Operating profit
4
375,783
231,868
Interest receivable and similar income
7
6,093
4,806
Interest payable and similar expenses
8
(16,927)
(30,927)
Profit before taxation
364,949
205,747
Tax on profit
9
(94,353)
(83,801)
Profit for the financial year
270,596
121,946

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

YAU BROTHERS & CO LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 9 -
2024
2023
£
£
Profit for the year
270,596
121,946
Other comprehensive income
-
-
Total comprehensive income for the year
270,596
121,946
YAU BROTHERS & CO LIMITED
BALANCE SHEET
AS AT 30 SEPTEMBER 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
11
2,345
2,880
Tangible assets
12
1,001,270
1,080,545
1,003,615
1,083,425
Current assets
Stocks
13
2,012,821
1,707,460
Debtors
14
965,164
870,015
Investments
15
66,692
56,875
Cash at bank and in hand
620,383
527,171
3,665,060
3,161,521
Creditors: amounts falling due within one year
16
(1,669,285)
(1,331,173)
Net current assets
1,995,775
1,830,348
Total assets less current liabilities
2,999,390
2,913,773
Creditors: amounts falling due after more than one year
17
26,155
(42,647)
Provisions for liabilities
Deferred tax liability
20
155,530
171,707
(155,530)
(171,707)
Net assets
2,870,015
2,699,419
Capital and reserves
Called up share capital
22
80
80
Capital redemption reserve
20
20
Profit and loss reserves
2,869,915
2,699,319
Total equity
2,870,015
2,699,419
YAU BROTHERS & CO LIMITED
BALANCE SHEET (CONTINUED)
AS AT 30 SEPTEMBER 2024
- 11 -
The financial statements were approved by the board of directors and authorised for issue on 1 April 2025 and are signed on its behalf by:
Mr C K Yau
Director
Company registration number 01872912 (England and Wales)
YAU BROTHERS & CO LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 12 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 October 2022
80
20
2,717,373
2,717,473
Year ended 30 September 2023:
Profit and total comprehensive income
-
-
121,946
121,946
Dividends
10
-
-
(140,000)
(140,000)
Balance at 30 September 2023
80
20
2,699,319
2,699,419
Year ended 30 September 2024:
Profit and total comprehensive income
-
-
270,596
270,596
Dividends
10
-
-
(100,000)
(100,000)
Balance at 30 September 2024
80
20
2,869,915
2,870,015
YAU BROTHERS & CO LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 13 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
26
463,728
494,428
Interest paid
(16,927)
(30,927)
Income taxes (paid)/refunded
(37,299)
37,821
Net cash inflow from operating activities
409,502
501,322
Investing activities
Purchase of tangible fixed assets
(90,976)
(203,568)
Proceeds from disposal of tangible fixed assets
-
0
10,649
Proceeds from disposal of investments
-
0
75
Repayment of loans
(9,817)
136,547
Interest received
5,264
4,085
Dividends received
829
721
Net cash used in investing activities
(94,700)
(51,491)
Financing activities
Repayment of borrowings
(53,209)
(128,341)
Repayment of bank loans
(70,000)
(270,000)
Payment of finance leases obligations
1,619
29,684
Dividends paid
(100,000)
(140,000)
Net cash used in financing activities
(221,590)
(508,657)
Net increase/(decrease) in cash and cash equivalents
93,212
(58,826)
Cash and cash equivalents at beginning of year
527,171
585,997
Cash and cash equivalents at end of year
620,383
527,171
YAU BROTHERS & CO LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 14 -
1
Accounting policies
Company information

Yau Brothers & Co Limited is a private company limited by shares incorporated in England and Wales. The registered office is YB Building, Princes Street, Southampton, Hampshire, SO14 5RP.

1.1
Accounting convention

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

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

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

The company has taken advantage of the exemption under section 399 of the Companies Act 2006 not to prepare consolidated accounts, on the basis that the group of which this is the parent qualifies as a small group. The financial statements present information about the company as an individual entity and not about its group.

1.2
Going concern

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

1.3
Turnover

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

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

1.4
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Development costs
are being amortised evenly over their estimated useful life of four years.
1.5
Tangible fixed assets

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

YAU BROTHERS & CO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 15 -

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

Freehold land and buildings
2% on cost
Capital improvements
4% on cost.
Plant and equipment
15% reducing balance
Fixtures and fittings
15% reducing balance and 10% on cost
Computers
25% on cost
Motor vehicles
25% on reducing balance

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

Assets held under finance leases are depreciated over their expected useful lives on the same basis as owned assets or the period of the leases where these are shorter

1.6
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

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

1.7
Cash and cash equivalents

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

1.8
Financial instruments

The company only enters into Basic financial instrument transactions.

 

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

 

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

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Classification of financial liabilities

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

YAU BROTHERS & CO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 16 -
Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest.

1.9
Equity instruments

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

1.10
Derivatives

Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.

 

A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability.

1.11
Taxation

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

Current tax

The current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period.

Deferred tax

Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in the tax assessments.

 

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.

 

The company's liability for current and deferred tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

1.12
Employee benefits

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

 

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

 

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

1.13
Retirement benefits

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

YAU BROTHERS & CO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 17 -
1.14
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

1.15
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Judgements and key sources of estimation uncertainty

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

 

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

3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Sale of goods
18,217,303
18,119,721
2024
2023
£
£
Turnover analysed by geographical market
UK
16,402,861
16,242,523
Channel Islands
1,814,442
1,877,198
18,217,303
18,119,721
2024
2023
£
£
Other revenue
Interest income
5,264
4,085
Royalty income
14,510
12,947
Dividends received
829
721
YAU BROTHERS & CO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 18 -
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange (gains)/losses
(2,446)
15,644
Depreciation of owned tangible fixed assets
170,251
169,166
(Profit)/loss on disposal of tangible fixed assets
-
1,456
Amortisation of intangible assets
535
1,187
5
Employees

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

2024
2023
Number
Number
53
54
2024
2023
£
£
Wages and salaries
1,653,595
1,605,750
Social security costs
159,514
151,567
Pension costs
57,977
56,793
1,871,086
1,814,110
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
101,714
100,964
Company pension contributions to defined contribution schemes
19,506
20,278
121,220
121,242
YAU BROTHERS & CO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 19 -
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
2,055
955
Other interest income
3,209
3,130
Total interest revenue
5,264
4,085
Other income from investments
Dividends received
829
721
Total income
6,093
4,806
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
2,055
955
8
Interest payable and similar expenses
2024
2023
£
£
Other finance costs:
Interest on finance leases and hire purchase contracts
7,509
8,912
Other interest
9,418
22,015
16,927
30,927
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
110,400
36,112
Deferred tax
Origination and reversal of timing differences
(16,047)
47,689
Total tax charge
94,353
83,801
YAU BROTHERS & CO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
9
Taxation
(Continued)
- 20 -

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

2024
2023
£
£
Profit before taxation
364,949
205,747
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 25.00%)
91,237
51,437
Tax effect of expenses that are not deductible in determining taxable profit
177
755
Effect of change in corporation tax rate
-
0
(4,926)
Permanent capital allowances in excess of depreciation
(23,496)
(53,562)
Depreciation on assets not qualifying for tax allowances
42,689
42,588
Deferred tax adjustments in respect of prior years
(16,047)
47,689
Dividend income
(207)
(180)
Taxation charge for the year
94,353
83,801
10
Dividends
2024
2023
£
£
Final paid
100,000
140,000
11
Intangible fixed assets
Development costs
£
Cost
At 1 October 2023 and 30 September 2024
57,482
Amortisation and impairment
At 1 October 2023
54,602
Amortisation charged for the year
535
At 30 September 2024
55,137
Carrying amount
At 30 September 2024
2,345
At 30 September 2023
2,880
YAU BROTHERS & CO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 21 -
12
Tangible fixed assets
Freehold land and buildings
Capital improvements
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
£
Cost
At 1 October 2023
504,146
196,553
186,782
490,305
185,355
535,096
2,098,237
Additions
-
0
-
0
1,990
2,565
27,544
58,877
90,976
At 30 September 2024
504,146
196,553
188,772
492,870
212,899
593,973
2,189,213
Depreciation and impairment
At 1 October 2023
162,011
66,049
83,211
295,017
147,087
264,317
1,017,692
Depreciation charged in the year
10,083
7,862
17,125
40,135
26,125
68,921
170,251
At 30 September 2024
172,094
73,911
100,336
335,152
173,212
333,238
1,187,943
Carrying amount
At 30 September 2024
332,052
122,642
88,436
157,718
39,687
260,735
1,001,270
At 30 September 2023
342,135
130,504
103,571
195,288
38,268
270,779
1,080,545
YAU BROTHERS & CO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 22 -
13
Stocks
2024
2023
£
£
Raw materials and consumables
2,012,821
1,707,460
14
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
704,324
701,166
Corporation tax recoverable
34,914
33,831
Other debtors
93,801
5,527
Prepayments and accrued income
130,172
64,624
963,211
805,148
2024
2023
Amounts falling due after more than one year:
£
£
Other debtors
1,953
64,867
Total debtors
965,164
870,015
15
Current asset investments
2024
2023
£
£
Loans
66,692
56,875

Current asset investments are a portfolio of stock market securities, traded in various currencies and converted into GBP at the year end at the relevant foreign exchange rate, after adding any dividends received and external brokerage fees paid.

YAU BROTHERS & CO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 23 -
16
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Obligations under finance leases
19
44,564
47,352
Other borrowings
18
70,000
120,000
Trade creditors
1,233,192
1,108,710
Corporation tax
111,483
37,169
Other taxation and social security
24,916
26,094
Other creditors
61,680
(85,433)
Accruals and deferred income
123,450
77,281
1,669,285
1,331,173
17
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans and overdrafts
18
-
0
70,000
Obligations under finance leases
19
105,395
100,988
Other borrowings
18
(131,550)
(128,341)
(26,155)
42,647
18
Loans and overdrafts
2024
2023
£
£
Bank loans
-
0
70,000
Other loans
(61,550)
(8,341)
(61,550)
61,659
Payable within one year
70,000
120,000
Payable after one year
(131,550)
(58,341)

The long-term loans are secured by fixed and floating charges over the assets of the company.

19
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
44,564
47,352
In two to five years
105,395
100,988
149,959
148,340
YAU BROTHERS & CO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
19
Finance lease obligations
(Continued)
- 24 -

Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 3 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

Hire purchase contracts are secured on the assets to which they relate

20
Deferred taxation

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

Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
155,530
171,707
2024
Movements in the year:
£
Liability at 1 October 2023
171,707
Credit to profit or loss
(16,177)
Liability at 30 September 2024
155,530

The deferred tax liability set out above is expected to reverse within 24 months and relates to accelerated capital allowances that are expected to mature within the same period.

21
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
57,977
56,793

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

22
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of 1p each
8,000
8,000
80
80
YAU BROTHERS & CO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 25 -
23
Operating lease commitments

At the reporting end date the company had outstanding commitments for future minimum lease payments which fall due as follows:

2024
2023
£
£
Within one year
68,532
69,156
Between two and five years
96,648
44,706
165,180
113,862
24
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2024
2023
£
£
Aggregate compensation
246,819
296,664
Transactions with related parties

During the year the company entered into the following transactions with related parties:

2024
2023
£
£
Amounts owed to related parties
3,885
10,708
Amounts owed by related parties
700
92,900

The following amounts were outstanding at the reporting end date:

25
Directors' transactions
Description
% Rate
Opening balance
Interest charged
Closing balance
£
£
£
Directors' loan
2.50
128,341
3,209
131,550
128,341
3,209
131,550
YAU BROTHERS & CO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 26 -
26
Cash generated from operations
2024
2023
£
£
Profit for the year after tax
270,596
121,946
Adjustments for:
Taxation charged
94,353
83,801
Finance costs
16,927
30,927
Investment income
(6,093)
(4,806)
(Gain)/loss on disposal of tangible fixed assets
-
1,456
Amortisation and impairment of intangible assets
535
1,187
Depreciation and impairment of tangible fixed assets
170,251
169,166
Movements in working capital:
(Increase)/decrease in stocks
(305,361)
411,488
(Increase)/decrease in debtors
(94,066)
110,909
Increase/(decrease) in creditors
316,586
(431,646)
Cash generated from operations
463,728
494,428
27
Analysis of changes in net funds
1 October 2023
Cash flows
30 September 2024
£
£
£
Cash at bank and in hand
527,171
93,212
620,383
Borrowings excluding overdrafts
(61,659)
123,209
61,550
Obligations under finance leases
(148,340)
(1,619)
(149,959)
317,172
214,802
531,974
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