Caseware UK (AP4) 2023.0.135 2023.0.135 2025-05-08The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities. The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.The Company has opted not to file the statement of comprehensive income in accordance with provisions applicable to companies subject to the small companies' regime. The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies (see note 3).2025-05-08Tangible 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. Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method. 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.truetrue2023-04-01falseThe principal activity is that of agents involved in the sale of furniture, household goods, hardware and ironmongery.26truefalse 02655091 2023-04-01 2024-03-31 02655091 2022-04-01 2023-03-31 02655091 2024-03-31 02655091 2023-03-31 02655091 2022-04-01 02655091 1 2023-04-01 2024-03-31 02655091 d:Director2 2023-04-01 2024-03-31 02655091 d:Director3 2023-04-01 2024-03-31 02655091 d:RegisteredOffice 2023-04-01 2024-03-31 02655091 d:Agent1 2023-04-01 2024-03-31 02655091 c:Buildings c:LongLeaseholdAssets 2023-04-01 2024-03-31 02655091 c:Buildings c:LongLeaseholdAssets 2024-03-31 02655091 c:Buildings c:LongLeaseholdAssets 2023-03-31 02655091 c:FurnitureFittings 2023-04-01 2024-03-31 02655091 c:FurnitureFittings 2024-03-31 02655091 c:FurnitureFittings 2023-03-31 02655091 c:OtherPropertyPlantEquipment 2023-04-01 2024-03-31 02655091 c:OtherPropertyPlantEquipment 2024-03-31 02655091 c:OtherPropertyPlantEquipment 2023-03-31 02655091 c:CurrentFinancialInstruments 2024-03-31 02655091 c:CurrentFinancialInstruments 2023-03-31 02655091 c:Non-currentFinancialInstruments 2024-03-31 02655091 c:Non-currentFinancialInstruments 2023-03-31 02655091 c:CurrentFinancialInstruments c:WithinOneYear 2024-03-31 02655091 c:CurrentFinancialInstruments c:WithinOneYear 2023-03-31 02655091 c:Non-currentFinancialInstruments c:BetweenTwoFiveYears 2024-03-31 02655091 c:Non-currentFinancialInstruments c:BetweenTwoFiveYears 2023-03-31 02655091 c:ShareCapital 2023-04-01 2024-03-31 02655091 c:ShareCapital 2024-03-31 02655091 c:ShareCapital 2023-03-31 02655091 c:ShareCapital 2022-04-01 02655091 c:CapitalRedemptionReserve 2023-04-01 2024-03-31 02655091 c:CapitalRedemptionReserve 2024-03-31 02655091 c:CapitalRedemptionReserve 2023-03-31 02655091 c:CapitalRedemptionReserve 2022-04-01 02655091 c:RetainedEarningsAccumulatedLosses 2023-04-01 2024-03-31 02655091 c:RetainedEarningsAccumulatedLosses 2024-03-31 02655091 c:RetainedEarningsAccumulatedLosses 2022-04-01 2023-03-31 02655091 c:RetainedEarningsAccumulatedLosses 2023-03-31 02655091 c:RetainedEarningsAccumulatedLosses 2022-04-01 02655091 d:OrdinaryShareClass1 2023-04-01 2024-03-31 02655091 d:OrdinaryShareClass1 2022-04-01 2023-03-31 02655091 d:OrdinaryShareClass1 2024-03-31 02655091 d:OrdinaryShareClass1 2023-03-31 02655091 d:FRS102 2023-04-01 2024-03-31 02655091 d:Audited 2023-04-01 2024-03-31 02655091 d:FullAccounts 2023-04-01 2024-03-31 02655091 d:PrivateLimitedCompanyLtd 2023-04-01 2024-03-31 02655091 d:SmallCompaniesRegimeForAccounts 2023-04-01 2024-03-31 02655091 e:PoundSterling 2023-04-01 2024-03-31 iso4217:GBP xbrli:shares xbrli:pure

Financial Statements
S McKinney & Co Ltd
For the year ended 31 March 2024





































Registered number: 02655091

 
S McKinney & Co Ltd
 

Company Information


Directors
M Nevill 
J Taee 




Registered number
02655091



Registered office
Unit 8 Southbourne Business Park
Courtlands Road

Eastbourne

East Sussex

England

BN22 8UY




Independent auditor
Grant Thornton (NI) LLP
Chartered Accountants & & Statutory Auditors

12 - 15 Donegall Square West

Belfast

BT1 6JH




Bankers
Coutts Private Bank
Avon Street

Bristol

BS2 0PT





 
S McKinney & Co Ltd
 

Contents



Page
Independent auditor's report
1 - 5
Balance sheet
6 - 7
Statement of changes in equity
8
Notes to the financial statements
9 - 19


 
 
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Independent auditor's report to the members of S McKinney & Co Ltd
 

Opinion


We have audited the financial statements of S McKinney & Co Ltd, which comprise the Balance sheet, the Statement of changes in equity for the financial year ended 31 March 2024, and the related notes to the financial statements, including a summary of significant accounting policies.  

The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion, S McKinney & Co Ltd's financial statements:


give a true and fair view in accordance with United Kingdom Generally Accepted Accounting Practice of the assets, liabilities and financial position of the Company as at 31 March 2024 and of its financial performance for the financial year then ended; 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 'Responsibilities of the auditor 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, namely the FRC's Ethical Standard and the ethical pronouncements established by Chartered Accountants Ireland, applied as determined to be appropriate in the circumstances of the entity. 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 the date 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 1

 
 
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Independent auditor's report to the members of S McKinney & Co Ltd (continued)


Other information


Other information comprises the information included in the Annual Report, other than the financial statements and our Auditor's report thereon, including the Directors' report . The directors are responsible for the other information. Our opinion on the financial statements does not cover the 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 statementsour 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 in the financial statements, 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 Directors' report  for the financial year for which the financial statements are prepared is consistent with the financial statements, and 
the Directors' report  has 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 we have obtained in the course of the audit, we have not identified material misstatements in 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; or

the directors were not entitled to take advantage of the small companies' exemptions from the  requirement to prepare a strategic report or in preparing the Directors' report.

Page 2

 
 
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Independent auditor's report to the members of S McKinney & Co Ltd (continued)


Responsibilities of management and those charged with governance for the financial statements
 

Management is responsible for the preparation of the financial statements which give a true and fair view in accordance with United Kingdom Generally Accepted Accounting Practice, including FRS102 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, management is 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 management either intend to liquidate the Company or to cease operations, or has no realistic alternative but to do so.


Those charged with governance are responsible for overseeing the Company's financial reporting process.

Responsibilities of the auditor for the audit of the financial statements
 

The objectives of an auditor 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 their 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.

A further description of an auditor's 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 auditor's report.

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud
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. Owing to the inherent limitations of an audit, there is an unavoidable risk that material misstatement in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with ISAs (UK).

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below:
 
Based on our understanding of the Company and industry, we identified that the principal risks of non-compliance with laws and regulations related to Data Privacy law, Employment Law, Environmental Regulations, and Health and Safety laws, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as Companies Act 2006 and UK tax legislation. The Audit engagement partner considered the experience and expertise of the engagement team to ensure that the team had appropriate competence and capabilities to identify or recognise non-compliance with the laws and regulation. 
Page 3

 
 
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Independent auditor's report to the members of S McKinney & Co Ltd (continued)

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud (continued)

We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries to manipulate financial performance and management bias through judgements and assumptions in significant accounting estimates, in particular in relation to significant one-off or unusual transactions. 
We apply professional scepticism through the audit to consider potential deliberate omission or concealment of significant transactions, or incomplete/inaccurate disclosures in the financial statements.
In response to these principal risks, our audit procedures included but were not limited to:

inquiries of management on the policies and procedures in place regarding compliance with laws and regulations, including consideration of known or suspected instances of non-compliance and whether they have knowledge of any actual, suspected or alleged fraud;
inspection of the Company’s regulatory and legal correspondence and review of minutes of the board of directors meetings during the year to corroborate inquiries made;
gaining an understanding of the internal controls established to mitigate risk related to fraud;
discussion amongst the engagement team in relation to the identified laws and regulations and regarding the risk of fraud, and remaining alert to any indications of non-compliance or opportunities for fraudulent manipulation of financial statements throughout the audit;
identifying and testing journal entries to address the risk of inappropriate journals and management override of controls;
designing audit procedures to incorporate unpredictability around the nature, timing or extent of our testing;
challenging assumptions and judgements made by management in their significant accounting estimates, including estimating useful lives of tangible fixed assets and allowance for the impairment of bad debt and stock; and
review of the financial statement disclosures to underlying supporting documentation and inquiries of  management.

The primary responsibility for the prevention and detection of irregularities including fraud rests with those charged with governance and management. As with any audit, there remains a risk of non-detection or irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or override of internal controls.


Page 4

 
 
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Independent auditor's report to the members of S McKinney & Co Ltd (continued)


The purpose of our audit work and to whom we owe our responsibilities
 

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.



 
 
Bronagh Bourke (Senior statutory auditor)
for and on behalf of
Grant Thornton (NI) LLP
Chartered Accountants &
Statutory Auditors
Belfast
8 May 2025
Page 5

 
S McKinney & Co Ltd
Registered number:02655091

Balance sheet
As at 31 March 2024

2024
2023
Note
£
£

Fixed assets
  

Tangible assets
 5 
78,903
80,670

  
78,903
80,670

Current assets
  

Stocks
 6 
64,542
74,893

Debtors: amounts falling due within one year
 7 
145,183
102,352

Cash at bank and in hand
 8 
20,192
19,252

  
229,917
196,497

Current liabilities
  

Creditors: amounts falling due within one year
 9 
(432,923)
(330,244)

Net current liabilities
  
 
 
(203,006)
 
 
(133,747)

Total assets less current liabilities
  
(124,103)
(53,077)

Creditors: amounts falling due after more than one year
 10 
(15,000)
(25,000)

  

Net liabilities
  
(139,103)
(78,077)


Capital and reserves
  

Called up share capital 
 12 
100
100

Capital redemption reserve
 13 
20,220
20,220

Profit and loss account
 13 
(159,423)
(98,397)

Shareholders' deficit
  
(139,103)
(78,077)


Page 6

 
S McKinney & Co Ltd
Registered number:02655091

Balance sheet (continued)
As at 31 March 2024

The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.

The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.

The Company has opted not to file the statement of comprehensive income in accordance with provisions applicable to companies subject to the small companies' regime.

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 8 May 2025.


J Taee
Director

The notes on pages 9 to 19 form part of these financial statements.

Page 7

 
S McKinney & Co Ltd
 

Statement of changes in equity
For the year ended 31 March 2024


Called up share capital
Capital redemption reserve
Profit and loss account
Total equity

£
£
£
£

At 1 April 2023
100
20,220
(98,397)
(78,077)



Loss for the year
-
-
(61,026)
(61,026)


At 31 March 2024
100
20,220
(159,423)
(139,103)



Statement of changes in equity
For the year ended 31 March 2023


Called up share capital
Capital redemption reserve
Profit and loss account
Total equity

£
£
£
£

At 1 April 2022
100
20,220
(79,147)
(58,827)



Loss for the year
-
-
(19,250)
(19,250)


At 31 March 2023
100
20,220
(98,397)
(78,077)


The notes on pages 9 to 19 form part of these financial statements.

Page 8

 
S McKinney & Co Ltd
 
 
Notes to the financial statements
For the year ended 31 March 2024

1.


General information

S McKinney & Co Limited is a private company limited by shares and incorporated in the United Kingdom. Its registered office is Unit 19, Eurolink Business Centre, 49 Effra Road, London, SW2 IBZ.
The principal activity is that of agents involved in the sale of furniture, household goods, hardware and ironmongery.

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 Section 1A of 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 judgement in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Going concern

The Company made a loss after tax of £61,026 (2023: £19,250 loss) for the year to 31 March 2024 and had net liabilities of £139,103 (2023: £78,077) at the balance sheet date. Included in creditors is an amount owed to group undertakings of £280,914 (2023: £232,216). The Company has received assurance of continuing financial support from its majority shareholder, The Edward Alexander Group Ltd, for a minimum of 12 months from the date of signing its financial statements.

 
2.3

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 comprehensive income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

Page 9

 
S McKinney & Co Ltd
 

Notes to the financial statements
For the year ended 31 March 2024

2.Accounting policies (continued)

 
2.4

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue 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 revenue is recognised:

Sale of goods

Revenue 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 revenue 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.

 
2.5

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.

 
2.6

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.7

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

 
2.8

Pensions

Defined contribution pension plan

The Company operates 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 Balance sheet. The assets of the plan are held separately from the Company in independently administered funds.

Page 10

 
S McKinney & Co Ltd
 

Notes to the financial statements
For the year ended 31 March 2024

2.Accounting policies (continued)

 
2.9

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 balance sheet 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 balance sheet 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 balance sheet date.

 
2.10

 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.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Long-term leasehold property
-
10%
straight line
Fixtures and fittings
-
10%
straight line
Showroom display
-
10%
straight line

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.

Page 11

 
S McKinney & Co Ltd
 

Notes to the financial statements
For the year ended 31 March 2024

2.Accounting policies (continued)

  
2.11

 Impairment of assets

Assets that are subject to depreciation or amortisation are assessed at each reporting date to determine
whether there is any indication that the assets are impaired. Where there is any indication that an asset may be impaired, the carrying value of the asset (or cash-generating unit to which the asset has been allocated) is tested for impairment. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's (or CGU's) fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (CGUs). Non-financial assets that have been previously impaired are reviewed at each reporting date to assess whether there is any indication that the impairment losses recognised in prior periods may no longer exist or may have decreased.

 
2.12

 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 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 or loss.

 
2.13

 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.

 
2.14

 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.

 
2.15

 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.

Page 12

 
S McKinney & Co Ltd
 

Notes to the financial statements
For the year ended 31 March 2024

2.Accounting policies (continued)

 
2.16

 Provisions for liabilities

Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the Balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Balance sheet.

 
2.17

 Financial instruments

The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of comprehensive income.

For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the balance sheet date.

Page 13

 
S McKinney & Co Ltd
 
 
Notes to the financial statements
For the year ended 31 March 2024

3.


Judgements in applying accounting policies and key sources of estimation uncertainty

Estimates and judgements are required when applying accounting policies. These are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
The Company makes estimates and assumptions concerning the future, which can involve a high degree of judgement or complexity. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below:

a) Allowances for impairment of debtors
The Company estimates the allowance for doubtful debtors based on assessment of specific accounts where the Company has objective evidence comprising default in payment terms or significant financial difficulty that certain companies are unable to meet their financial obligations. In these cases, judgement used was based on the best available facts and circumstances including but not limited to, the length of relationship.

b) Estimating allowance for impairment of stocks
Management estimates the net realisable values of stocks, taking into account the most reliable evidence available at each reporting date. The future realisation of these inventories may be affected by future technology or other market-driven changes that may reduce future selling prices.

c) Useful lives of depreciable assets
Management reviews its estimate of the useful lives of depreciable assets at each reporting date, based on the expected utility of the assets. Uncertainties in these estimates relate to technical and physical obsolescence that may change the utility of certain property, plant and equipment.


4.


Employees

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


        2024
        2023
            No.
            No.







Total
2
6

Page 14

 
S McKinney & Co Ltd
 
 
Notes to the financial statements
For the year ended 31 March 2024

5.


Tangible fixed assets





Long-term leasehold property
Fixtures and fittings
Showroom Display
Total

£
£
£
£



Cost or valuation


At 1 April 2023
122,138
39,307
-
161,445


Additions
-
-
11,927
11,927



At 31 March 2024

122,138
39,307
11,927
173,372



Depreciation


At 1 April 2023
43,996
36,779
-
80,775


Charge for the year
11,952
549
1,193
13,694



At 31 March 2024

55,948
37,328
1,193
94,469



Net book value



At 31 March 2024
66,190
1,979
10,734
78,903



At 31 March 2023
78,142
2,528
-
80,670

Page 15

 
S McKinney & Co Ltd
 
 
Notes to the financial statements
For the year ended 31 March 2024

6.


Stocks

2024
2023
£
£

Work in progress (goods to be sold)
5,429
500

Finished goods and goods for resale
59,113
74,393

64,542
74,893


Stocks are stated after provisions for impairment of £24,976 (2023: £24,798).


7.


Debtors

2024
2023
£
£


Trade debtors
39,696
2,017

Amounts owed by group undertakings
90,000
77,829

Other debtors
6,445
6,049

Prepayments and accrued income
9,042
16,457

145,183
102,352


Amounts owed by group undertakings are unsecured, interest free and repayable on demand.


8.


Cash and cash equivalents

2024
2023
£
£

Cash at bank and in hand
20,192
19,252

20,192
19,252


Page 16

 
S McKinney & Co Ltd
 
 
Notes to the financial statements
For the year ended 31 March 2024

9.


Creditors: Amounts falling due within one year

2024
2023
£
£

Bank loans
10,000
10,000

Trade creditors
24,848
22,584

Amounts owed to group undertakings
280,914
232,216

Other taxation and social security
71,071
23,841

Other creditors
27,418
27,988

Accruals and deferred income
18,672
13,615

432,923
330,244


Amounts owed to group undertakings are unsecured, interest free and repayable on demand.


10.


Creditors: Amounts falling due after more than one year

2024
2023
£
£

Bank loans
15,000
25,000

15,000
25,000



11.


Loans


Analysis of the maturity of loans is given below:


2024
2023
£
£

Amounts falling due within one year

Bank loans
10,000
10,000


10,000
10,000


Amounts falling due 2-5 years

Bank loans
15,000
25,000


15,000
25,000


25,000
35,000


Bank loans at the year end relate to a loan of £50,000. These loans are for a term of 6 years and accrue interest at 2.5% per annum. These loans are unsecured.

Page 17

 
S McKinney & Co Ltd
 
 
Notes to the financial statements
For the year ended 31 March 2024

12.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



100 (2023 - 100) Ordinary shares of £1.00 each
100
100



13.


Reserves

Called up share capital

Called up share capital represents the nominal value of shares that have been issued.

Capital redemption reserve

Includes share capital purchased by the Company.

Profit and loss account

Includes all current and prior period retained profits and losses.


14.


Pension commitments

The Company operates 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 of £1,683 (2023 - £3,705) represents contributions payable by the Company to the fund. Contributions totalling £821 (2023: £276) were payable to the fund at reporting date. 


15.


Related party transactions

The Company has availed of the exemptions in FRS102 Section 33, which allows non disclosure of transactions between two or more members of a group, provided that any subsidiary which is party to the transaction is wholly owned by such a member.


16.


Post balance sheet events

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

Page 18

 
S McKinney & Co Ltd
 
 
Notes to the financial statements
For the year ended 31 March 2024

17.


Controlling party

The immediate and ultimate parent company of S McKinney & Co Limited is The Edward Alexander Group Ltd.
The smallest and largest company in which the results of the S McKinney & Co Limited are consolidated is The Edward Alexander Group Ltd. Copies of these consolidated financial statements can be obtained from Unit 310-311, Chelsea Harbour, London, SW10 0XF.
The ultimate controlling party is Oakfield Capital III LP. Oakfield Capital III LP is incorporated in United Kingdom with registered office at 23-24 George Street, Richmond, United Kingdom, TW9 1HY. The limited partnership is registered in the companies house. 


Page 19