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COMPANY REGISTRATION NUMBER: SC068271
Margiotta Limited
Financial Statements
30 April 2024
Margiotta Limited
Financial Statements
Year ended 30 April 2024
Contents
Page
Officers and professional advisers
1
Strategic report
2
Directors' report
4
Independent auditor's report to the members
7
Statement of comprehensive income
11
Statement of financial position
12
Statement of changes in equity
14
Statement of cash flows
15
Notes to the financial statements
16
Margiotta Limited
Officers and Professional Advisers
The board of directors
F Margiotta
A Margiotta
J Wells
D Broadbent
Company secretary
Franco Margiotta
Registered office
1 Cliftonhall Industrial Estate
Newbridge Industrial Estate
Newbridge
EH28 8PJ
Auditor
Gibson McKerrell Burrows Limited
Chartered Accountants & Statutory Auditor
28 Rutland Square
Edinburgh
EH1 2BW
Margiotta Limited
Strategic Report
Year ended 30 April 2024
Fair Review of the Business The company's profitability show a decrease, partly due to a decrease in margin as high food inflation could not be passed on in full to our customers. Turnover was up, coming in at just over £16.6 million pounds, this was partly due to inflation, however the directors note that the company retained some of the custom as customers shopping local, margin was maintained. Wages and salary costs increased due the competitive labour market, partly driven by increases in the national living wage. All liabilities are being met and the company has a no issues with day to day funding of its operations. Two new shops were opened in 2024. The directors would like to the thank Margiotta's loyal customer base, who continue to shop with us and the new customers that have discovered Margiotta during this year, the company will endeavour to keep our prices competitive whilst offering local produce in addition to the usual big name favourite brands. The directors are aware that in today's competitive market customer locality cannot be taken for granted. Principal Risks and Uncertainties The directors are aware that Margiotta Limited is in a very competitive market, we will continue to ensure that the shopping experience at all our sties is a good one, investing in both our shops and our people. The directors note there will be inevitable pressures on our margins due to raising inflation and wage costs, the directors are taking steps to ensure we remain competitive within the convenience store sector Future Developments We always monitor any potential new opportunities ande we opened new sites in the accounting period to April 2024. We are always looking for new suitable sites to expand the business . Sales in the 2025 year are strong and we are approaching forthcoming years with cautious optimism. The directors are aware that food inflation is an issue for all retail business and we continue to work with suppliers to minimise any price increase to our customers.
This report was approved by the board of directors on 30 May 2025 and signed on behalf of the board by:
J Wells
Director
Registered office:
1 Cliftonhall Industrial Estate
Newbridge Industrial Estate
Newbridge
EH28 8PJ
Margiotta Limited
Directors' Report
Year ended 30 April 2024
The directors present their report and the financial statements of the company for the year ended 30 April 2024 .
Principal activities
The principal activity of the company during the year was that of licensed grocer.
Directors
The directors who served the company during the year were as follows:
F Margiotta
A Margiotta
J Wells
D Broadbent
Dividends
Particulars of recommended dividends are detailed in note 13 to the financial statements.
Future developments
See disclosures within the Strategic Report regarding future developments of the company.
Financial instruments
Objectives and Policies
The company reviews risk management on a regular basis and seeks to mitigate risks in a cost effective manner. Financial assets that expose the company to financial risk consist primarily of debtors and cash. Financial liabilities the expose the company to risk consist principally of trade creditors and loans.
Price risk, credit risk liquidity and cash flow risk
Credit risk is the risk of loss in value of financial assets due to parties failing to meet all or part of their obligations. Any trade customer is subject to checks before sales are made and are reviewed on a case by case basis.
Liquidity risk is the risk the the company does not have sufficient liquid assets to meets its obligations a they fall due. Liquidity is maintained at a prudent level and the company ensures there is an adequate liquidity buffer to cover obligations. The company has sufficient cash and open committed credit lines from its bankers to meet its funding requirements.
The company has interest bearing liabilities. Interest rate risk re unfavourable movements in interest rates are not perceived as being material to the accounts due to arrangements in place.
Other matters
Going Concern
The financial statements have been prepared on the going concern basis.
The company meets its day to day working capital requirements through cash generated from operations and external borrowings.
The company's forecasts and projections for the next twelve months show that the group should be able to continue in operation existence for that period, taking into account possible changes in trading performance.
Having considered the current cash forecasts of the company the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for a period of at least 12 months from the date of signing these financial statements. The company therefore continues to adopt the going concern basis in preparing its financial statements.
Disclosure of information in the strategic report
A fair review of the business is included in the Strategic Report
Directors' responsibilities statement
The directors are responsible for preparing the strategic report, directors' report and the financial statements in accordance with applicable law and regulations. Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: - select suitable accounting policies and then apply them consistently; - make judgments and accounting estimates that are reasonable and prudent. The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Auditor
Each of the persons who is a director at the date of approval of this report confirms that:
- so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information. A resolution to reappoint Gibson McKerrell Burrows Limited as auditors will be proposed at the forthcoming Annual General Meeting.
This report was approved by the board of directors on 30 May 2025 and signed on behalf of the board by:
J Wells
Director
Registered office:
1 Cliftonhall Industrial Estate
Newbridge Industrial Estate
Newbridge
EH28 8PJ
Margiotta Limited
Independent Auditor's Report to the Members of Margiotta Limited
Year ended 30 April 2024
Opinion
We have audited the financial statements of Margiotta Limited (the 'company') for the year ended 30 April 2024 which comprise the statement of comprehensive income, statement of financial position, statement of changes in equity, statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements: - give a true and fair view of the state of the company's affairs as at 30 April 2024 and of its profit for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; - have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: - adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or - the financial statements are not in agreement with the accounting records and returns; or - certain disclosures of directors' remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: At the planning stage, we gained an understanding of the legal and regulatory framework applicable to the company and considered the risks of acts by the company which were contrary to the applicable laws and regulations; We discussed amongst the engagement team the identified laws and regulations and remained alert to any indications of non-compliance. During the audit, we focuses on areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements through discussions with directors and review of minutes of meetings in the year. We also considered those other laws and regulations that have a direct impact on the preparation of financial statements We inquired of the directors whether they have knowledge of any actual, suspected or alleged fraud We discussed amongst the engagement team the risk of fraud such as opportunities for fraudulent manipulation of financial statements. Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatements in the financial statements or non-compliance with regulation. The risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also: - Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. - Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation (i.e. gives a true and fair view). We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. Use of our report
This report is made solely to the company's members, as a body, in accordance with chapter 3 of part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
William A S Gunn
(Senior Statutory Auditor)
For and on behalf of
Gibson McKerrell Burrows Limited
Chartered Accountants & Statutory Auditor
28 Rutland Square
Edinburgh
EH1 2BW
30 May 2025
Margiotta Limited
Statement of Comprehensive Income
Year ended 30 April 2024
2024
2023
Note
£
£
Turnover
4
16,610,668
14,108,845
Cost of sales
12,283,589
10,471,461
---------------
---------------
Gross profit
4,327,079
3,637,384
Administrative expenses
4,367,833
3,696,361
Other operating income
5
250,847
263,180
-------------
-------------
Operating profit
6
210,093
204,203
Other interest receivable and similar income
10
116
65,431
Interest payable and similar expenses
11
189,558
82,274
-------------
-------------
Profit before taxation
20,651
187,360
Tax on profit
12
( 569)
72,937
---------
----------
Profit for the financial year and total comprehensive income
21,220
114,423
---------
----------
All the activities of the company are from continuing operations.
Margiotta Limited
Statement of Financial Position
30 April 2024
2024
2023
Note
£
£
£
Fixed assets
Tangible assets
15
6,577,011
6,475,046
Current assets
Stocks
16
1,061,129
934,942
Debtors
17
608,191
733,036
Cash at bank and in hand
37,269
36,234
-------------
-------------
1,706,589
1,704,212
Creditors: amounts falling due within one year
Bank loans and overdrafts
492,368
797,799
Trade creditors
1,127,745
1,250,924
Other creditors including taxation and social security
19
332,374
261,162
Accruals and deferred income
77,106
161,118
-------------
-------------
2,029,593
2,471,003
-------------
-------------
Net current liabilities
323,004
766,791
-------------
-------------
Total assets less current liabilities
6,254,007
5,708,255
Creditors: amounts falling due after more than one year
20
Bank loans and overdrafts
1,838,676
1,261,344
Other creditors including taxation and social security
21
177,769
-------------
-------------
2,016,445
1,261,344
Provisions
Taxation including deferred tax
23
312,485
313,054
-------------
-------------
Net assets
3,925,077
4,133,857
-------------
-------------
Margiotta Limited
Statement of Financial Position (continued)
30 April 2024
2024
2023
Note
£
£
£
Capital and reserves
Called up share capital
26
140,000
140,000
Revaluation reserve
27
1,663,258
1,917,416
Profit and loss account
27
2,121,819
2,076,441
-------------
-------------
Shareholders funds
3,925,077
4,133,857
-------------
-------------
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the medium companies regime.
These financial statements were approved by the board of directors and authorised for issue on 30 May 2025 , and are signed on behalf of the board by:
J Wells
Director
Company registration number: SC068271
Margiotta Limited
Statement of Changes in Equity
Year ended 30 April 2024
Called up share capital
Revaluation reserve
Profit and loss account
Total
£
£
£
£
At 1 May 2022
140,000
2,041,561
2,020,873
4,202,434
Profit for the year
114,423
114,423
Other comprehensive income for the year:
Reclassification from revaluation reserve to profit and loss account
( 124,145)
124,145
----------
-------------
-------------
-------------
Total comprehensive income for the year
( 124,145)
238,568
114,423
Dividends paid and payable
13
( 183,000)
( 183,000)
----------
-------------
-------------
-------------
Total investments by and distributions to owners
( 183,000)
( 183,000)
At 30 April 2023
140,000
1,917,416
2,076,441
4,133,857
Profit for the year
21,220
21,220
Other comprehensive income for the year:
Reclassification from revaluation reserve to profit and loss account
( 254,158)
254,158
----------
-------------
-------------
-------------
Total comprehensive income for the year
( 254,158)
275,378
21,220
Dividends paid and payable
13
( 230,000)
( 230,000)
----
----
----------
----------
Total investments by and distributions to owners
( 230,000)
( 230,000)
----------
-------------
-------------
-------------
At 30 April 2024
140,000
1,663,258
2,121,819
3,925,077
----------
-------------
-------------
-------------
Margiotta Limited
Statement of Cash Flows
Year ended 30 April 2024
2024
2023
Note
£
£
Cash flows from operating activities
Profit for the financial year
21,220
114,423
Adjustments for:
Depreciation of tangible assets
380,557
365,307
Other interest receivable and similar income
( 116)
( 65,431)
Interest payable and similar expenses
189,558
82,274
Gains on disposal of tangible assets
( 5,199)
( 204,008)
Tax on profit
( 569)
72,937
Accrued income
( 84,012)
( 98,709)
Changes in:
Stocks
( 126,187)
( 152,510)
Trade and other debtors
124,845
( 44,964)
Trade and other creditors
( 103,624)
260,427
----------
----------
Cash generated from operations
396,473
329,746
Interest paid
( 189,558)
( 82,274)
Interest received
116
31
Tax paid
( 6,504)
----------
----------
Net cash from operating activities
207,031
240,999
----------
----------
Cash flows from investing activities
Purchase of tangible assets
( 985,022)
( 1,072,186)
Proceeds from sale of tangible assets
507,699
708,463
----------
-------------
Net cash used in investing activities
( 477,323)
( 363,723)
----------
-------------
Cash flows from financing activities
Proceeds from borrowings
513,499
( 242,011)
Payments of finance lease liabilities
229,799
Dividends paid
( 230,000)
( 183,000)
----------
-------------
Net cash from/(used in) financing activities
513,298
( 425,011)
----------
-------------
Net increase/(decrease) in cash and cash equivalents
243,006
( 547,735)
Cash and cash equivalents at beginning of year
(525,947)
21,788
----------
----------
Cash and cash equivalents at end of year
18
( 282,941)
( 525,947)
----------
----------
Margiotta Limited
Notes to the Financial Statements
Year ended 30 April 2024
1. General information
The company is a private company limited by shares, registered in Scotland. The address of the registered office is 1 Cliftonhall Industrial Estate, Newbridge Industrial Estate, Newbridge, EH28 8PJ.
2. Statement of compliance
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.
The financial statements are prepared in sterling, which is the functional currency of the entity.
Going concern
At 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. As a consequence the Board has prepared the financial statements on the going concern basis.
Judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Revenue recognition
Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax. Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably.
Taxation
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.
Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
Amortisation
Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows:
Goodwill
-
20% straight line
If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.
Tangible assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Property
-
2% straight line
Fixtures & Fittings
-
15% straight line
Motor Vehicles
-
25% straight line
Solar Panels
-
4 % straight line
Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets. For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units.
Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.
Finance leases and hire purchase contracts
Assets held under finance leases and hire purchase contracts are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.
Provisions
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.
Financial instruments
A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as either financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting 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 entity after deducting all of its financial liabilities.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
4. Turnover
Turnover arises from:
2024
2023
£
£
Sale of goods
16,610,668
14,108,845
---------------
---------------
The whole of the turnover is attributable to the principal activity of the company wholly undertaken in the United Kingdom.
5. Other operating income
2024
2023
£
£
Rental income
38,800
90,800
Management charges receivable
209,292
167,069
ATM income
2,755
5,311
----------
----------
250,847
263,180
----------
----------
6. Operating profit
Operating profit or loss is stated after charging/crediting:
2024
2023
£
£
Depreciation of tangible assets
380,557
365,307
Gains on disposal of tangible assets
( 5,199)
( 204,008)
----------
----------
7. Auditor's remuneration
2024
2023
£
£
Fees payable for the audit of the financial statements
8,200
8,000
-------
-------
8. Staff costs
The average number of persons employed by the company during the year, including the directors, amounted to:
2024
2023
No.
No.
Production staff
22
19
Distribution staff
123
116
Administrative staff
4
4
----
----
149
139
----
----
The aggregate payroll costs incurred during the year, relating to the above, were:
2024
2023
£
£
Wages and salaries
2,579,859
2,244,738
Social security costs
190,054
152,278
Other pension costs
39,572
34,381
-------------
-------------
2,809,485
2,431,397
-------------
-------------
9. Directors' remuneration
The directors' aggregate remuneration in respect of qualifying services was:
2024
2023
£
£
Remuneration
86,804
98,670
---------
---------
10. Other interest receivable and similar income
2024
2023
£
£
Interest on cash and cash equivalents
116
31
Gain on financial instruments
65,400
----
---------
116
65,431
----
---------
11. Interest payable and similar expenses
2024
2023
£
£
Interest on banks loans and overdrafts
30,550
11,268
Other interest payable and similar charges
159,008
71,006
----------
---------
189,558
82,274
----------
---------
12. Tax on profit
Major components of tax (income)/expense
2024
2023
£
£
Deferred tax:
Origination and reversal of timing differences
( 569)
72,937
----
---------
Tax on profit
( 569)
72,937
----
---------
Reconciliation of tax (income)/expense
The tax assessed on the profit on ordinary activities for the year is lower than (2023: higher than) the standard rate of corporation tax in the UK of 19 % (2023: 19 %).
2024
2023
£
£
Profit on ordinary activities before taxation
20,651
187,360
---------
----------
Profit on ordinary activities by rate of tax
3,924
35,755
Effect of capital allowances and depreciation
59,299
( 23,253)
Notional tax on revalued property
(63,792)
60,435
---------
----------
Tax on profit
( 569)
72,937
---------
----------
13. Dividends
Dividends paid during the year (excluding those for which a liability existed at the end of the prior year):
2024
2023
£
£
Dividends on equity shares
230,000
183,000
----------
----------
14. Intangible assets
Goodwill
£
Cost
At 1 May 2023 and 30 April 2024
109,000
----------
Amortisation
At 1 May 2023 and 30 April 2024
109,000
----------
Carrying amount
At 30 April 2024
----------
At 30 April 2023
----------
The company purchased two businesses in the year to 30 April 2014. The Goodwill was written off over the following 5 Years.
15. Tangible assets
Freehold property
Fixtures and fittings
Motor vehicles
Equipment
Total
£
£
£
£
£
Cost
At 1 May 2023
5,220,734
2,514,169
108,867
274,000
8,117,770
Additions
132,071
837,756
15,195
985,022
Disposals
( 510,000)
( 510,000)
-------------
-------------
----------
----------
-------------
At 30 April 2024
4,842,805
3,351,925
124,062
274,000
8,592,792
-------------
-------------
----------
----------
-------------
Depreciation
At 1 May 2023
46,743
1,531,394
62,760
1,827
1,642,724
Charge for the year
104,356
246,568
18,673
10,960
380,557
Disposals
( 7,500)
( 7,500)
-------------
-------------
----------
----------
-------------
At 30 April 2024
143,599
1,777,962
81,433
12,787
2,015,781
-------------
-------------
----------
----------
-------------
Carrying amount
At 30 April 2024
4,699,206
1,573,963
42,629
261,213
6,577,011
-------------
-------------
----------
----------
-------------
At 30 April 2023
5,173,991
982,775
46,107
272,173
6,475,046
-------------
-------------
----------
----------
-------------
Tangible assets held at valuation
The freehold properties were revalued in June 2023, by D M Hall chartered surveyors, on an open market basis. The directors are of the opinion that the property valuation at June 2023 does not differ materially from its fair value at the balance sheet date.
16. Stocks
2024
2023
£
£
Finished goods and goods for resale
1,061,129
934,942
-------------
----------
17. Debtors
2024
2023
£
£
Trade debtors
157,567
140,721
Prepayments and accrued income
28,910
72,988
Corporation tax repayable
8,920
Other debtors
421,714
510,407
----------
----------
608,191
733,036
----------
----------
18. Cash and cash equivalents
Cash and cash equivalents comprise the following:
2024
2023
£
£
Cash at bank and in hand
37,269
36,234
Bank overdrafts
( 320,210)
( 562,181)
----------
----------
( 282,941)
( 525,947)
----------
----------
19. Other creditors including taxation and social security falling
due within one year
2024
2023
£
£
Social security and other taxes
56,059
36,504
Obligations under finance leases
52,030
Director loan accounts
285
658
Other creditors
224,000
224,000
----------
----------
332,374
261,162
----------
----------
The bank overdraft is secured by a bond and floating charge over the companies assets.
20. Creditors: amounts falling due after more than one year
21. Other creditors including taxation and social security falling
due after more than one year
2024
2023
£
£
Obligations under finance leases
177,769
----------
----
Included within creditors: amounts falling due after more than one year is an amount of £1,513,636 (2023: £841,088) in respect of liabilities payable or repayable otherwise than by instalments which fall due for payment after more than five years from the reporting date.
The bank loans figure represents term loans from HSBC Bank plc. The loan is repayable by monthly instalments and interest is calculated at 1.60% over the Bank of England base rate. The bank loan and an overdraft facility are secured by standard securities over the company's properties and a floating charge over the remaining assets.
22. Finance leases and hire purchase contracts
The total future minimum lease payments under finance leases and hire purchase contracts are as follows:
2024
2023
£
£
Not later than 1 year
52,030
Later than 1 year and not later than 5 years
177,769
----------
----
229,799
----------
----
23. Provisions
Deferred tax (note 24)
£
At 1 May 2023
313,054
Additions
( 569)
----------
At 30 April 2024
312,485
----------
24. Deferred tax
The deferred tax included in the statement of financial position is as follows:
2024
2023
£
£
Included in provisions (note 23)
312,485
313,054
----------
----------
The deferred tax account consists of the tax effect of timing differences in respect of:
2024
2023
£
£
Accelerated capital allowances
256,065
192,872
Fair value adjustment of investment property
56,420
120,182
----------
----------
312,485
313,054
----------
----------
25. Employee benefits
Defined contribution plans
The amount recognised in profit or loss as an expense in relation to defined contribution plans was £ 39,572 (2023: £ 34,381 ).
26. Called up share capital
Authorised share capital
2024
2023
No.
£
No.
£
Ordinary shares of £ 1 each
135,000
135,000
135,000
135,000
'B' Ordinary shares of £ 1 each
5,000
5,000
5,000
5,000
----------
----------
----------
----------
140,000
140,000
140,000
140,000
----------
----------
----------
----------
Issued, called up and fully paid
2024
2023
No.
£
No.
£
Ordinary shares of £ 1 each
135,000
135,000
135,000
135,000
'B' Ordinary shares of £ 1 each
5,000
5,000
5,000
5,000
----------
----------
----------
----------
140,000
140,000
140,000
140,000
----------
----------
----------
----------
27. Reserves
Revaluation reserve - This reserve records the value of asset revaluations and fair value movements on assets recognised in other comprehensive income. Profit and loss account - This reserve records retained earnings and accumulated losses.
28. Analysis of changes in net debt
At 1 May 2023
Cash flows
At 30 Apr 2024
£
£
£
Cash at bank and in hand
36,234
1,035
37,269
Bank overdrafts
(562,181)
241,972
(320,209)
Debt due within one year
(236,276)
11,803
(224,473)
Debt due after one year
(1,261,344)
(755,101)
(2,016,445)
-------------
----------
-------------
( 2,023,567)
( 500,291)
( 2,523,858)
-------------
----------
-------------
29. Operating leases
The total future minimum lease payments under non-cancellable operating leases are as follows:
2024
2023
£
£
Not later than 1 year
4,962
18,000
Later than 1 year and not later than 5 years
217,250
77,432
----------
---------
222,212
95,432
----------
---------
Margiotta Limited
Notes to the Financial Statements (continued)
Year ended 30 April 2024
30. Related party transactions
The company was under the control of the directors, Franco and Audrey Margiotta throughout the current and previous year, by way of their joint ownership of the company. During the year the company purchased goods from Margiotta Catering Limited, a company under the control of the children of Mr and Mrs Margiotta. All transactions of goods are made at normal trade terms. Margiotta Limited charged rent of £8,800 (2023 - £28,800) and Management Charges of £40,543 (2023 - £35,376). At the balance sheet date Margiotta Catering Limited owed Margiotta Limited £16,309 (2023 £13,783), this amount is included in other debtors. During the year the company sold goods to JELCM Limited, a company under the control of the children of Mr and Mrs Margiotta. All sale of goods are made a normal trade terms. During the year Margiotta Limited charged JELCM Ltd £134,355 (2023 - £102,539) in management charges. At the Balance Sheet date JELCM Ltd owed £156,882 (2023 - £222,964, this amount is included in other debtors. During the year the company sold goods to Broadwells (Edinburgh) Limited, a company under the control of the children of Mr and Mrs Margiotta. All sale of goods are made a normal trade terms. During the year Margiotta Limited charged Broadwells (Edinburgh) Ltd £34,394 (2023 - £29,154) in management charges. At the Balance Sheet date Broadwells (Edinburgh) Limited owed £236,384 (2023 - £246,869), this amount is included in other debtors. At the balance sheet date the company owed £285 (2023 - £659) to the directors by way of the directors loan accounts, these amounts are interest free and have no fixed terms of repayment.