Company registration number 07210078 (England and Wales)
ZFA LTD
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
PAGES FOR FILING WITH REGISTRAR
ZFA LTD
CONTENTS
Page
Balance sheet
1
Statement of changes in equity
2
Notes to the financial statements
3 - 8
ZFA LTD
BALANCE SHEET
- 1 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
4
13,607
31,356
Investment property
5
300,000
313,607
31,356
Current assets
Stocks
576,299
629,494
Debtors
6
10,421,124
3,347,414
Cash at bank and in hand
543,859
12,788
11,541,282
3,989,696
Creditors: amounts falling due within one year
7
(4,354,483)
(1,873,342)
Net current assets
7,186,799
2,116,354
Total assets less current liabilities
7,500,406
2,147,710
Creditors: amounts falling due after more than one year
8
(10,460)
(19,479)
Provisions for liabilities
(16,742)
Net assets
7,473,204
2,128,231
Capital and reserves
Called up share capital
100
100
Other reserves
48,750
Profit and loss reserves
7,424,354
2,128,131
Total equity
7,473,204
2,128,231
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
The financial statements were approved by the board of directors and authorised for issue on 27 May 2025 and are signed on its behalf by:
Mr A H Anwar
Director
Company registration number 07210078 (England and Wales)
ZFA LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2024
- 2 -
Share capital
Other reserves
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 June 2022
100
-
1,271,702
1,271,802
Year ended 31 May 2023:
Profit and total comprehensive income
-
-
1,256,429
1,256,429
Dividends
-
-
(400,000)
(400,000)
Balance at 31 May 2023
100
-
2,128,131
2,128,231
Year ended 31 May 2024:
Profit and total comprehensive income
-
-
6,144,973
6,144,973
Dividends
-
-
(800,000)
(800,000)
Fair value gain on investment property
-
98,977
-
98,977
Other movements
-
(50,227)
(48,750)
(98,977)
Balance at 31 May 2024
100
48,750
7,424,354
7,473,204
ZFA LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
- 3 -
1
Accounting policies
Company information
ZFA Ltd is a private company limited by shares incorporated in England and Wales. The registered office is Unit 7 Anderson Road, Woodford Green, England IG8 8ET.
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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
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, modified to include investment properties at fair value.The principal accounting policies adopted are set out below.
The financial statements of the company are consolidated in the financial statements of ZFA Group Limited. These consolidated financial statements are available from its registered office Unit 7 Anderson Road, Woodford Green, England IG8 8ET.
1.2
Turnover
Turnover represents rent receivable and is recognised in the profit and loss account in the period it relates to.
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.
1.3
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.
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:
Computers
20% on cost basis
Motor vehicles
15% on straight line basis
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.4
Investment property
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.
1.5
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
ZFA LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 4 -
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.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.7
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
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.9
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.
ZFA LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 5 -
1.10
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
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.
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Fair value of investment properties
The fair value of investment property is determined based on internal valuations using observable market data to the extent available. Where market data is not readily available, estimates are based on comparable market transactions.
Valuations are inherently subjective due to the fluctuations in the market. Key assumptions used in determining fair value include:
Valuation techniques are reviewed annually and calibrated to ensure consistency with market evidence. Changes in any of the assumptions could significantly affect the fair value of investment property and the related unrealised gains or losses recognised in profit or loss.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Total
24
24
ZFA LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 6 -
4
Tangible fixed assets
Computers
Motor vehicles
Total
£
£
£
Cost
At 1 June 2023
19,728
311,943
331,671
Additions
14,111
2,726
16,837
At 31 May 2024
33,839
314,669
348,508
Depreciation and impairment
At 1 June 2023
19,727
280,588
300,315
Depreciation charged in the year
2,822
31,764
34,586
At 31 May 2024
22,549
312,352
334,901
Carrying amount
At 31 May 2024
11,290
2,317
13,607
At 31 May 2023
1
31,355
31,356
5
Investment property
2024
£
Fair value
At 1 June 2023
Transfers
168,031
Revaluations
131,969
At 31 May 2024
300,000
The fair value of the investment property has been determined based on a valuation carried out by the company's directors. The valuation was conducted on an open market value basis, with reference to market evidence of transaction prices for similar properties.
6
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
2,408,315
2,685,284
Amounts owed by group undertakings
586,182
22,000
Other debtors
4,014,768
508,014
Prepayments and accrued income
3,361,178
82,420
10,370,443
3,297,718
Deferred tax asset
50,681
49,696
10,421,124
3,347,414
ZFA LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 7 -
7
Creditors: amounts falling due within one year
2024
2023
£
£
Bank loans
9,271
10,279
Trade creditors
157,045
516,066
Amounts owed to group undertakings
226,226
233,910
Corporation tax
2,700,552
663,205
Other taxation and social security
992,847
59,806
Other creditors
268,542
390,076
4,354,483
1,873,342
8
Creditors: amounts falling due after more than one year
2024
2023
£
£
Bank loans and overdrafts
10,460
19,479
9
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006.
The auditor's report is unqualified and includes the following:
Opinion
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 31 May 2024 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
Senior Statutory Auditor:
Ghulam Alahi
Statutory Auditor:
Vision Consulting Accountants Limited
Date of audit report:
27 May 2025
10
Operating lease commitments
As part of the business model the company enters into a guaranteed rental agreements with landlords for up to five years.
ZFA LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
10
Operating lease commitments
(Continued)
- 8 -
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases payable from one to five years, as follows:
2024
2023
£
£
Total commitments
73,888,490
41,504,112
11
Other reserves
2024
2023
£
£
At the beginning of the year
-
-
Other movements
48,750
-
At the end of the year
48,750
-
Other reserves represents fair value gains net of deferred tax on revaluation of investment property.
12
Directors' transactions
Included within other creditors, there is an amount of £37,725 (2023: £238) owed to the directors of the company.