| REGISTERED NUMBER: |
| STRATEGIC REPORT, |
| REPORT OF THE DIRECTORS AND |
| FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED |
| 30 SEPTEMBER 2024 |
| FOR |
| DISTRIBUTION SUPPLIES LIMITED |
| REGISTERED NUMBER: |
| STRATEGIC REPORT, |
| REPORT OF THE DIRECTORS AND |
| FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED |
| 30 SEPTEMBER 2024 |
| FOR |
| DISTRIBUTION SUPPLIES LIMITED |
| DISTRIBUTION SUPPLIES LIMITED (REGISTERED NUMBER: 02911319) |
| CONTENTS OF THE FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 30 SEPTEMBER 2024 |
| Page |
| Company Information | 1 |
| Strategic Report | 2 |
| Report of the Directors | 5 |
| Report of the Independent Auditors | 7 |
| Profit and loss account | 10 |
| Other Comprehensive Income | 11 |
| Balance Sheet | 12 |
| Statement of Changes in Equity | 13 |
| Notes to the Financial Statements | 14 |
| DISTRIBUTION SUPPLIES LIMITED |
| COMPANY INFORMATION |
| FOR THE YEAR ENDED 30 SEPTEMBER 2024 |
| DIRECTORS: |
| REGISTERED OFFICE: |
| BUSINESS ADDRESS: |
| REGISTERED NUMBER: |
| AUDITORS: |
| Statutory Auditors |
| 10 Jesus Lane |
| Cambridge |
| Cambridgeshire |
| CB5 8BA |
| DISTRIBUTION SUPPLIES LIMITED (REGISTERED NUMBER: 02911319) |
| STRATEGIC REPORT |
| FOR THE YEAR ENDED 30 SEPTEMBER 2024 |
| The directors present their strategic report for the year ended 30 September 2024. |
| Distribution Supplies Limited operates as a wholesaler of floor and wall tiles supplying a range of tile outlets throughout the United Kingdom. |
| REVIEW OF BUSINESS |
| Following three consecutive years of revenue growth, weaker market demand led to a challenging financial performance across the business for the year to 30th September 2024. The reduction in both revenue and gross margin being a result of a realignment of trading volumes to pre-covid levels. This normalistion is likely driven by tighter UK fiscal policies, leading to a reduction in consumer spending. |
| Despite the challenges, the group remains well positioned. Our long standing relationships with key suppliers enables us to maintain inventory levels. This, along with economies of scale in our purchasing, allows the group to continue to secure advantageous pricing and remain competitive in a challenging market. |
| DISTRIBUTION SUPPLIES LIMITED (REGISTERED NUMBER: 02911319) |
| STRATEGIC REPORT |
| FOR THE YEAR ENDED 30 SEPTEMBER 2024 |
| PRINCIPAL RISKS AND UNCERTAINTIES |
| In conducting its business activity the company is exposed to a range of business and financial risks. The principal risks and how they are managed are described in more detail below: |
| LIQUIDITY RISK |
| The company seeks to manage its financial risk by ensuring sufficient cash resources are available to meet foreseeable needs. |
| CREDIT RISK |
| The company's principal financial asset other than cash are trade sale customer accounts. The credit risk associated with these trade debts is managed by the credit control function that assesses the credit worthiness of new customers and continually monitors the age and size of balances due. The credit risk is mitigated by a wide and diverse customer base with limited exposure to any one customer. |
| CURRENCY RISK |
| The company purchases a large proportion of its product range from Asia, South America and Europe. The company is therefore exposed to foreign exchange and transaction risk in this respect. The company seeks to reduce this risk by continually monitoring exchange rates and buying currency as and when appropriate. |
| SUPPLY CHAIN |
| Risks to the supply chain are mitigated by the buying capacity of the company. |
| INFLATIONARY COST PRESSURES |
| The current level of inflation across the UK economy has resulted in a Consumer Price Index Inflation level in September 2024 of 1.7%. Suppliers may therefore look to pass on their input prices and fluctuation in exchange rates may also have an impact. Other areas may also be subject to inflationary pressure such as utility bills, staff costs and other variable costs. Such increases may be difficult to offset or fully pass on to customers, however the board seek mitigation of this risk through the continued negotiation with suppliers to reduce the impact of price inflation. |
| MACRO ECONOMIC ENVIRONMENT |
| The general economic environment and specifically consumer confidence are important to the company and events that may affect these factors present a financial risk to the company. The current outlook may deteriorate due to a combination of factors such as high inflation and rising interest rates as consumer confidence or their ability to finance home improvements could result in a contracting of the tile market. |
| WAREHOUSE CAPACITY |
| The current warehouse capacity of the company may be unable to adequately accommodate the range and depth of stock required to support sales, which could result in sales being lost or unfulfilled within promised time frames, however continued cleansing of stock will will reduce exposure to this risk. |
| STAFF RETENTION AND ATTRACTION |
| The loss of key individuals important to the delivery of the company's strategy or the inability to find new staff due to the UK's labour shortage together with high wage inflation may impact on the ability to deliver on the company's strategic objectives.The company seeks to retain its key management by providing above market rates of compensation and benefits. |
| DISTRIBUTION SUPPLIES LIMITED (REGISTERED NUMBER: 02911319) |
| STRATEGIC REPORT |
| FOR THE YEAR ENDED 30 SEPTEMBER 2024 |
| KEY PERFORMANCE INDICATORS |
| The directors monitor the company's progress and strategic direction by reference to certain financial key performance indicators. A summary of key performance indicators used is set out below: |
| 2024 | 2023 |
| Turnover | £16.6m | £18.1m |
| Gross margin | 22% | 26.7% |
| Net profit margin | 1.3% | 7.5% |
| Stock days | 145 | 148 |
| ON BEHALF OF THE BOARD: |
| DISTRIBUTION SUPPLIES LIMITED (REGISTERED NUMBER: 02911319) |
| REPORT OF THE DIRECTORS |
| FOR THE YEAR ENDED 30 SEPTEMBER 2024 |
| The directors present their report with the financial statements of the company for the year ended 30 September 2024. |
| DIVIDENDS |
| The total distribution of dividends for the year ended 30 September 2024 will be £ |
| FUTURE DEVELOPMENTS |
| The board of directors remain optimistic about the future and will continue to invest in stock levels in order to retain a higher than average stock level to accommodate the range and depth of stock required to support sales. |
| We will continue to invest in and develop our strong supplier relationships and continue to retain a diverse supply chain from other markets. Further more the decision to continue to dilute dependency from one supply source should see the group well placed to respond to any further future macro economic uncertainties and supply chain disruption. |
| In consideration of the prospect of inflationary price pressures the directors will continue to monitor and review macro economic changes, including the impact of global supply chain pressures across the group's cost base. The group has a robust balance sheet and sufficient working capital to meet demand. |
| DIRECTORS |
| The directors shown below have held office during the whole of the period from 1 October 2023 to the date of this report. |
| DIRECTORS' RESPONSIBILITIES STATEMENT |
| The directors are responsible for preparing the Strategic Report, the Report of the Directors 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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: |
| - | select suitable accounting policies and then apply them consistently; |
| - | make judgements and accounting estimates that are reasonable and prudent; |
| - | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
| The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
| STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
| So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
| DISTRIBUTION SUPPLIES LIMITED (REGISTERED NUMBER: 02911319) |
| REPORT OF THE DIRECTORS |
| FOR THE YEAR ENDED 30 SEPTEMBER 2024 |
| AUDITORS |
| The auditors, Thompson Taraz Rand Audit and Assurance Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
| ON BEHALF OF THE BOARD: |
| REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
| DISTRIBUTION SUPPLIES LIMITED |
| Opinion |
| We have audited the financial statements of Distribution Supplies Limited (the 'company') for the year ended 30 September 2024 which comprise the Profit and loss account, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity and 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 the financial statements: |
| - | give a true and fair view of the state of the company's affairs as at 30 September 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. |
| 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 Auditors' 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 directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
| 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 this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
| Opinions on other matters prescribed by the Companies Act 2006 |
| In our opinion, based on the work undertaken in the course of the audit: |
| - | the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
| - | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
| REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
| DISTRIBUTION SUPPLIES LIMITED |
| 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 Report of the Directors. |
| We have nothing to report in respect of the following matters where 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 set out on page five, 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 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. |
| Auditors' 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 a Report of the Auditors 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. |
| The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
| 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: |
| - Enquiry of management around the actual and potential litigation and claims; |
| - Reviewing financial statements disclosures and testing supporting documentation to assess compliance with applicable laws and regulations; and |
| - Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, and reviewing accounting estimates for bias. |
| 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 misstatement in the financial statements or non-compliance with regulation. This 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 |
| A further description of our 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 Report of the Auditors. |
| REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
| DISTRIBUTION SUPPLIES LIMITED |
| 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 a Report of the Auditors 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. |
| for and on behalf of |
| Statutory Auditors |
| 10 Jesus Lane |
| Cambridge |
| Cambridgeshire |
| CB5 8BA |
| DISTRIBUTION SUPPLIES LIMITED (REGISTERED NUMBER: 02911319) |
| PROFIT AND LOSS ACCOUNT |
| FOR THE YEAR ENDED 30 SEPTEMBER 2024 |
| 2024 | 2023 |
| Notes | £ | £ |
| TURNOVER | 4 |
| Cost of sales | ( |
) | ( |
) |
| GROSS PROFIT |
| Distribution costs | ( |
) | ( |
) |
| Administrative expenses | ( |
) | ( |
) |
| (782,132 | ) | 562,812 |
| Other operating income |
| OPERATING PROFIT | 6 |
| Interest receivable and similar income |
| PROFIT BEFORE TAXATION |
| Tax on profit | 7 | ( |
) | ( |
) |
| PROFIT FOR THE FINANCIAL YEAR |
| DISTRIBUTION SUPPLIES LIMITED (REGISTERED NUMBER: 02911319) |
| OTHER COMPREHENSIVE INCOME |
| FOR THE YEAR ENDED 30 SEPTEMBER 2024 |
| 2024 | 2023 |
| Notes | £ | £ |
| PROFIT FOR THE YEAR |
| OTHER COMPREHENSIVE INCOME | - | - |
| TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
| DISTRIBUTION SUPPLIES LIMITED (REGISTERED NUMBER: 02911319) |
| BALANCE SHEET |
| 30 SEPTEMBER 2024 |
| 2024 | 2023 |
| Notes | £ | £ |
| FIXED ASSETS |
| Intangible assets | 9 |
| Tangible assets | 10 |
| CURRENT ASSETS |
| Stocks | 11 |
| Debtors | 12 |
| Cash at bank and in hand |
| CREDITORS |
| Amounts falling due within one year | 13 | ( |
) | ( |
) |
| NET CURRENT ASSETS |
| TOTAL ASSETS LESS CURRENT LIABILITIES |
| PROVISIONS FOR LIABILITIES | 16 | ( |
) | ( |
) |
| NET ASSETS |
| CAPITAL AND RESERVES |
| Called up share capital | 17 |
| Retained earnings | 18 |
| SHAREHOLDERS' FUNDS |
| The financial statements were approved by the Board of Directors and authorised for issue on |
| DISTRIBUTION SUPPLIES LIMITED (REGISTERED NUMBER: 02911319) |
| STATEMENT OF CHANGES IN EQUITY |
| FOR THE YEAR ENDED 30 SEPTEMBER 2024 |
| Called up |
| share | Retained | Total |
| capital | earnings | equity |
| £ | £ | £ |
| Balance at 1 October 2022 |
| Changes in equity |
| Dividends | - | ( |
) | ( |
) |
| Total comprehensive income | - |
| Balance at 30 September 2023 |
| Changes in equity |
| Dividends | - | ( |
) | ( |
) |
| Total comprehensive income | - |
| Balance at 30 September 2024 |
| DISTRIBUTION SUPPLIES LIMITED (REGISTERED NUMBER: 02911319) |
| NOTES TO THE FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 30 SEPTEMBER 2024 |
| 1. | STATUTORY INFORMATION |
| Distribution Supplies Limited is a |
| The presentation currency of the financial statements is the Pound Sterling (£). |
| 2. | STATEMENT OF COMPLIANCE |
| 3. | ACCOUNTING POLICIES |
| Basis of preparing the financial statements |
| Financial Reporting Standard 102 - reduced disclosure exemptions |
| The company has taken advantage of the following disclosure exemption in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland": |
| • | the requirements of Section 7 Statement of Cash Flows. |
| Related party exemption |
| The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
| Critical accounting judgements and key sources of estimation uncertainty |
| Useful economic lives of tangible fixed assets: |
| Tangible fixed assets are depreciated over their expected useful lives taking into consideration residual values, where appropriate. The actual lives of the assets and residual values are assessed and amended when necessary to reflect the current estimates based on economic utilization and physical condition of the assets. |
| Doubtful debts: |
| The company makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade debtors , management considers factors including the current credit rating of the debtor, the ageing of the debtor and historical experience regarding payment history. |
| Turnover |
| Turnover shown in the profit and loss account represents the invoiced sale of floor and wall tiles excluding value added tax. Revenue is recognised on the transfer of risk and reward which is usually on dispatch. |
| Tangible fixed assets |
| Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life. |
| Leasehold property alterations - over the length of the lease |
| Plant and equipment - 25% on reducing balance |
| Display stands - 50% on cost |
| Motor vehicles - 25% on reducing balance |
| Software - 33% on cost |
| DISTRIBUTION SUPPLIES LIMITED (REGISTERED NUMBER: 02911319) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 30 SEPTEMBER 2024 |
| 3. | ACCOUNTING POLICIES - continued |
| Stocks |
| Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
| Financial instruments |
| Basic financial assets and basic financial liabilities as defined under section 11 of FRS 102, including trade and other debtors, trade and other creditors, cash and bank balances and investments in commercial paper, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. |
| Taxation |
| Taxation for the year comprises current and deferred tax. Tax is recognised in the profit and loss accountProfit and loss account, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
| Current or deferred taxation assets and liabilities are not discounted. |
| Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
| Deferred tax |
| Deferred tax is recognised in respect of all material timing differences that have originated but not reversed at the balance sheet date. |
| Material timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
| Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
| Foreign currencies |
| Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
| Operating lease commitments |
| Rentals paid under operating leases are charged to the profit and loss account on a straight line basis over the period of the lease. |
| Pension costs and other post-retirement benefits |
| The company operates an optional defined contribution pension scheme. Contributions payable by the company to the scheme are charged to the profit and loss account in the period to which they relate. |
| 4. | TURNOVER |
| The turnover and profit before tax is attributable to the principal activity of the company which the directors believe is predominately carried on in the United Kingdom. The directors consider the proportion of turnover |
| attributable to outside the United Kingdom to not be material. |
| DISTRIBUTION SUPPLIES LIMITED (REGISTERED NUMBER: 02911319) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 30 SEPTEMBER 2024 |
| 5. | EMPLOYEES AND DIRECTORS |
| 2024 | 2023 |
| £ | £ |
| Wages and salaries |
| Social security costs |
| The average number of employees during the year was as follows: |
| 2024 | 2023 |
| Sales | 10 | 11 |
| Warehouse | 17 | 23 |
| Office | 20 | 16 |
| 2024 | 2023 |
| £ | £ |
| Directors' remuneration |
| 6. | OPERATING PROFIT |
| The operating profit is stated after charging/(crediting): |
| 2024 | 2023 |
| £ | £ |
| Hire of plant and machinery |
| Depreciation - owned assets |
| Depreciation - assets on hire purchase contracts |
| Profit on disposal of fixed assets | ( |
) |
| Software amortisation |
| Auditors' remuneration |
| Foreign exchange differences | ( |
) |
| 7. | TAXATION |
| Analysis of the tax charge |
| The tax charge on the profit for the year was as follows: |
| 2024 | 2023 |
| £ | £ |
| Current tax: |
| UK corporation tax |
| Deferred tax | ( |
) |
| Tax on profit |
| UK corporation tax has been charged at 25% . |
| DISTRIBUTION SUPPLIES LIMITED (REGISTERED NUMBER: 02911319) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 30 SEPTEMBER 2024 |
| 7. | TAXATION - continued |
| Reconciliation of total tax charge included in profit and loss |
| The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
| 2024 | 2023 |
| £ | £ |
| Profit before tax |
| Profit multiplied by the standard rate of corporation tax in the UK of (2023 - |
| Effects of: |
| Expenses not deductible for tax purposes |
| Capital allowances in excess of depreciation | ( |
) | - |
| Depreciation in excess of capital allowances | - |
| Deferred tax charge | 614 | (709 | ) |
| Corporation tax straddling between new and old rate | - | (42,390 | ) |
| Total tax charge | 54,025 | 314,591 |
| 8. | DIVIDENDS |
| 2024 | 2023 |
| £ | £ |
| Interim |
| 9. | INTANGIBLE FIXED ASSETS |
| Software |
| £ |
| COST |
| At 1 October 2023 |
| Additions |
| At 30 September 2024 |
| AMORTISATION |
| At 1 October 2023 |
| Amortisation for year |
| At 30 September 2024 |
| NET BOOK VALUE |
| At 30 September 2024 |
| At 30 September 2023 |
| DISTRIBUTION SUPPLIES LIMITED (REGISTERED NUMBER: 02911319) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 30 SEPTEMBER 2024 |
| 10. | TANGIBLE FIXED ASSETS |
| Plant and | Display | Motor |
| equipment | stands | vehicles | Totals |
| £ | £ | £ | £ |
| COST |
| At 1 October 2023 |
| Additions |
| At 30 September 2024 |
| DEPRECIATION |
| At 1 October 2023 |
| Charge for year |
| At 30 September 2024 |
| NET BOOK VALUE |
| At 30 September 2024 |
| At 30 September 2023 |
| Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
| Plant and |
| equipment |
| £ |
| COST |
| At 1 October 2023 |
| Transfer to ownership | (230,250 | ) |
| At 30 September 2024 |
| DEPRECIATION |
| At 1 October 2023 |
| Transfer to ownership | (174,674 | ) |
| At 30 September 2024 |
| NET BOOK VALUE |
| At 30 September 2024 |
| At 30 September 2023 |
| 11. | STOCKS |
| 2024 | 2023 |
| £ | £ |
| Stocks |
| DISTRIBUTION SUPPLIES LIMITED (REGISTERED NUMBER: 02911319) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 30 SEPTEMBER 2024 |
| 12. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| 2024 | 2023 |
| £ | £ |
| Trade debtors |
| Amounts owed by group undertakings |
| Other debtors |
| Directors' current account | - | 11,403 |
| Prepayments and accrued income |
| 13. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| 2024 | 2023 |
| £ | £ |
| Hire purchase contracts (see note 14) |
| Trade creditors |
| Corporation tax |
| Social security and other taxes |
| VAT | 192,805 | 268,396 |
| Other creditors |
| Accrued expenses |
| 14. | LEASING AGREEMENTS |
| Minimum lease payments fall due as follows: |
| Hire purchase contracts |
| 2024 | 2023 |
| £ | £ |
| Net obligations repayable: |
| Within one year |
| Non-cancellable | operating leases |
| 2024 | 2023 |
| £ | £ |
| Within one year |
| Between one and five years |
| Leasing commitments represent the amount payable in respect of the company's rental of commercial premises from which it trades. |
| DISTRIBUTION SUPPLIES LIMITED (REGISTERED NUMBER: 02911319) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 30 SEPTEMBER 2024 |
| 15. | SECURED DEBTS |
| The following secured debts are included within creditors: |
| 2024 | 2023 |
| £ | £ |
| Hire purchase contracts | - | 5,540 |
| Liabilities due under hire purchase agreements are secured against the asset(s) to which the liabilities relate. |
| 16. | PROVISIONS FOR LIABILITIES |
| 2024 | 2023 |
| £ | £ |
| Deferred tax | 61,914 | 61,300 |
| Deferred |
| tax |
| £ |
| Balance at 1 October 2023 |
| Charge to Profit and loss account during year |
| Balance at 30 September 2024 |
| The provision for deferred taxation is made up of accelerated capital allowances. |
| 17. | CALLED UP SHARE CAPITAL |
| Allotted, issued and fully paid: |
| Number: | Class: | Nominal | 2024 | 2023 |
| value: | £ | £ |
| Ordinary | £1 | 100,000 | 100,000 |
| 18. | RESERVES |
| Retained |
| earnings |
| £ |
| At 1 October 2023 |
| Profit for the year |
| Dividends | ( |
) |
| At 30 September 2024 |
| 19. | ULTIMATE PARENT COMPANY |
| The ultimate controlling party is the company's parent company Distribution Supplies Group Ltd. The consolidated financial statements of the group can be obtained directly from the registrar of companies or the group's head office: Units 30 -36 Ivatt Way, Westwood Industrial Estate, Peterborough, Cambridgeshire, PE3 7PN. |
| DISTRIBUTION SUPPLIES LIMITED (REGISTERED NUMBER: 02911319) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 30 SEPTEMBER 2024 |
| 20. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
| The following advances and credits to directors subsisted during the years ended 30 September 2024 and 30 September 2023: |
| 2024 | 2023 |
| £ | £ |
| Balance outstanding at start of year |
| Amounts advanced |
| Amounts repaid | ( |
) | ( |
) |
| Amounts written off | - | - |
| Amounts waived | - | - |
| Balance outstanding at end of year |
| 21. | RELATED PARTY DISCLOSURES |
| Other related parties |
| Group Undertakings: |
| The total amount outstanding at the balance sheet date arising from transactions with a company within the same amounted to £650,000 (2023: nil) and is disclosed as part of debtors due in less than one year within amounts owed by group undertakings. |
| Companies Under Common Control: |
| The company made sales of £8,923,708 (2023: £10,271,966) to entities under the common control of the directors. The amount outstanding at the balance sheet date is £685,675 (2023: £921,681) and is included within trade debtors. |
| The company recharged staff costs amounting to £896,210 (2023: £730,521) to a company under the common control of the directors. |
| The group paid rent for warehousing capacity to a company under the common control of the directors amounting to £50,000 (2023: £50,000). |
| Included within other debtors is advances amounting to £585,120 (2023: £252,274) due from companies under common control of the directors. |
| Included in the profit and loss account is a management charge of £422,524 (£420,000) and a volume rebate of £179,738. The total balance due to companies under common control amounted to £1,881,484 (2023: £2,621,146) and a further £826,827 (2023: £344,104) included within accruals. |
| During the year, a total of key management personnel compensation of £ |