Registration number:
for the
Year Ended 30 September 2024
Warners Retail (South West) Limited
Contents
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Company Information |
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Strategic Report |
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Directors' Report |
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Statement of Directors' Responsibilities |
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Independent Auditor's Report |
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Profit and Loss Account |
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Balance Sheet |
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Statement of Changes in Equity |
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Notes to the Financial Statements |
Warners Retail (South West) Limited
Company Information
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Directors |
G D Warner M A Warner S Neale |
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Company secretary |
G D Warner |
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Registered office |
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Auditors |
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Warners Retail (South West) Limited
Strategic Report for the Year Ended 30 September 2024
The directors present their strategic report for the year ended 30 September 2024.
Principal activity
The principal activity of the company is the sale of fuel and sundries from petrol forecourts, the sale of groceries from a supermarket and the rental of property.
Fair review of the business
The directors are pleased to report a profitable period for the company despite continued pressure on the fuel price and margins.
The directors use standard key performance indicators ("KPI's") to monitor the business. The main KPIs used are turnover and gross profit.
The company's key financial and other performance indicators during the year were as follows:
|
Unit |
30 Sept 2024 |
30 Sept 2023 |
|
|
Turnover |
£'000 |
9,749 |
9,852 |
|
Gross profit |
£'000 |
2,396 |
2,092 |
|
Gross profit margin |
% |
25 |
21 |
|
Net assets |
£'000 |
7,613 |
7,356 |
Principal risks and uncertainties
The principal risks and uncertainties effecting the business relate to changing prices from suppliers, the general economic environment and consumer spending. Due to the industry in which the company operates, the company are able to pass on price changes to customers and is well positioned to deal with changes in the economy.
Liquidity risk
The company’s principal liquidity risk is to ensure that it has sufficient liquid resources to meet its operational requirements. This is closely monitored on a regular basis in order to ensure efficient management.
Credit risk
The company offers credit to few customers and, as such, there is limited exposure to credit risk.
Interest rate risk
The company has borrowing in the form of fixed term loans on which interest is charged at a fixed rate above the Bank of England base rate. The directors continually monitor the company’s exposure to interest rate fluctuations and are poised to take action should they consider it necessary.
Approved by the
Director
Warners Retail (South West) Limited
Directors' Report for the Year Ended 30 September 2024
The directors present their report and the financial statements for the year ended 30 September 2024.
Directors of the company
The directors who held office during the year were as follows:
Financial instruments
The company’s financial instruments comprise borrowings, cash and liquid resources, and various other items such as trade creditors that arise directly from its operations. The main purpose of these instruments is to finance the operations of the company. Further details of financial instruments are detailed in the strategic report.
The directors take a pro-active approach to financial risk management. The directors are involved in the day to day running of the business and have significant experience in the industry allowing risk to be managed effectively.
Future developments
The directors are confident that the company will report continued growth and strong earnings performance.
Going concern
On the basis of the company’s forecasts, and having received a letter of support from G D Warner confirming his intention to continue to support the company, the directors consider it appropriate to prepare the financial statements on a going concern basis. The forecast assumes that facilities in place at the date of approval of the financial statements will continue on no less favourable terms than current arrangements. The financial statements do not include any adjustments that would result from insufficient facilities being made available to the company.
Important non adjusting events after the financial period
On 29 November 2024, loans with a balance outstanding at the year end of £5,160,325 were refinanced by Handelsbanken over a term of five years.
Disclosure of information to the auditors
Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.
Reappointment of auditors
Hazlewoods LLP have expressed their willingness to continue in office.
Approved by the
Director
Warners Retail (South West) Limited
Statement of Directors' Responsibilities
The directors acknowledge their responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
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• |
select suitable accounting policies and apply them consistently; |
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make judgements and accounting estimates that are reasonable and prudent; |
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state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and |
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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.
Warners Retail (South West) Limited
Independent Auditor's Report to the Members of Warners Retail (South West) Limited
Opinion
We have audited the financial statements of Warners Retail (South West) Limited (the 'company') for the year ended 30 September 2024, which comprise the Profit and Loss Account, 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 auditor 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 original financial statements were 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 included in the annual report, other than the financial statements and our auditor’s report 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 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.
Opinion on other matter prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
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the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
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the Strategic Report and 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 our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Directors' Report.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
Warners Retail (South West) Limited
Independent Auditor's Report to the Members of Warners Retail (South West) Limited
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• |
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
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the financial statements are not in agreement with the accounting records and returns; or |
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certain disclosures of directors' remuneration specified by law are not made; or |
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we have not received all the information and explanations we require for our audit. |
Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page 4, 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.
Extent to which the audit was capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
We considered the nature of the company’s industry and its control environment and reviewed the company’s documentation of their policies and procedures relating to fraud and compliance with laws and regulations. We also enquired of management about their own identification and assessment of the risks of irregularities.
We obtained an understanding of the legal and regulatory framework that the company operates in and identified the key laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements, including the UK Companies Act and tax legislation, and, those that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company’s ability to operate or to avoid a material penalty.
We discussed among the audit engagement team regarding the opportunities and incentives that may exist within the organisation for fraud and how and where fraud might occur in the financial statements.
In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments; assessed whether the judgments made in accounting estimates are indicative of a potential bias; and evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business.
In addition to the above, our procedures to respond to the risks identified included the following:
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reviewing financial statement disclosures by testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements; |
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• |
performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatements due to fraud; |
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enquiring of management concerning actual and potential litigation and claims and instances of non-compliance with laws and regulations; and |
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• |
reading minutes of meetings of those charged with governance. |
Warners Retail (South West) Limited
Independent Auditor's Report to the Members of Warners Retail (South West) Limited
Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.
A further description of our responsibilities is available on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Use of this 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.
For and on behalf of
Staverton Court
Staverton
GL51 0UX
Warners Retail (South West) Limited
Profit and Loss Account for the Year Ended 30 September 2024
|
Note |
2024 |
2023 |
|
|
Turnover |
|
|
|
|
Cost of sales |
( |
( |
|
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Gross profit |
|
|
|
|
Administrative expenses |
( |
( |
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Other operating income |
|
|
|
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Exceptional income |
- |
|
|
|
Operating profit |
1,168,537 |
3,976,142 |
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Interest receivable and similar income |
|
|
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Interest payable and similar expenses |
( |
( |
|
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Profit before tax |
|
|
|
|
Tax on profit |
( |
( |
|
|
Profit for the financial year |
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The above results were derived from continuing operations.
The company has no other comprehensive income for the year.
Warners Retail (South West) Limited
(Registration number: 11164698)
Balance Sheet as at 30 September 2024
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Note |
2024 |
2023 |
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Fixed assets |
|||
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Tangible assets |
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Investment property |
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Investments |
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Current assets |
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Stocks |
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Debtors |
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Cash at bank and in hand |
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||
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Creditors: Amounts falling due within one year |
( |
( |
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Net current liabilities |
( |
( |
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Total assets less current liabilities |
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|
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Creditors: Amounts falling due after more than one year |
( |
( |
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Deferred tax |
( |
( |
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Net assets |
|
|
|
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Capital and reserves |
|||
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Called up share capital |
4,507 |
4,507 |
|
|
Profit and loss account |
7,608,820 |
7,351,698 |
|
|
Total equity |
7,613,327 |
7,356,205 |
Approved and authorised by the
Director
Warners Retail (South West) Limited
Statement of Changes in Equity for the Year Ended 30 September 2024
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Share capital |
Profit and loss account |
Total |
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|
At 1 October 2023 |
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|
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Profit for the year |
- |
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Dividends |
- |
( |
( |
|
At 30 September 2024 |
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|
|
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Share capital |
Profit and loss account |
Total |
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At 1 October 2022 |
|
|
|
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Profit for the year |
- |
|
|
|
Dividends |
- |
( |
( |
|
At 30 September 2023 |
4,507 |
7,351,698 |
7,356,205 |
Warners Retail (South West) Limited
Notes to the Financial Statements for the Year Ended 30 September 2024
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General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
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Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.
Basis of preparation
These financial statements have been prepared using the historical cost convention except for, where disclosed in these accounting policies, certain items that are shown at fair value.
The presentational currency of the financial statements is Pounds Sterling, being the functional currency of the primary economic environment in which the company operates. Monetary amounts in these financial statements are rounded to the nearest Pound.
Summary of disclosure exemptions
Warners Retail (South West) Limited meets the definition of a qualifying entity under FRS 102 and has therefore taken advantage of the disclosure exemptions available to it in respect of its separate financial statements. Exemptions have been taken in relation to financial instruments and presentation of a statement of cash flows.
Name of parent of group
These financial statements are consolidated in the financial statements of Warners Retail Group Limited.
The financial statements of Warners Retail Group Limited may be obtained from the company's registered office.
Group accounts not prepared
Going concern
On the basis of the company’s forecasts, and having received a letter of support from G D Warner confirming his intention to continue to support the company, the directors consider it appropriate to prepare the financial statements on a going concern basis. The forecast assumes that facilities in place at the date of approval of the accounts will continue on no less favourable terms than current arrangements. The financial statements do not include any adjustments that would result from insufficient facilities being made available to the company.
Warners Retail (South West) Limited
Notes to the Financial Statements for the Year Ended 30 September 2024
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2 |
Accounting policies (continued) |
Critical accounting 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 amounts 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
Judgements
No significant judgements have been made by management in preparing these financial statements. |
Key sources of estimation uncertainty
No key sources of estimation uncertainty have been identified by management in preparing these financial statements other than those detailed in these accounting policies.
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company's activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.
The company recognises revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits will glow to the entity and specific criteria have been met for each of the company’s activities.
The company consider that the risks and rewards of ownership pass to the customer at the point of sale for fuel and shop sales.
Tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in the profit and loss account, except that a charge attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.
Deferred tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.
Warners Retail (South West) Limited
Notes to the Financial Statements for the Year Ended 30 September 2024
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2 |
Accounting policies (continued) |
Tangible assets
Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
|
Asset class |
Depreciation method and rate |
|
Land and buildings |
Land not depreciated, buildings depreciated 2% of cost per annum |
|
Leasehold improvements |
20% - 33.3% of cost per annum |
|
Furniture, fittings and equipment |
10%- 50% of cost per annum |
|
Motor vehicles |
20% - 33.3% of cost per annum |
Investment property
Investments
Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.
Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.
Trade debtors
Trade debtors are amounts due from customers for goods sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. All trade debtors are repayable within one year and hence are included at the undiscounted cost of cash expected to be received. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the debtors.
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to sell. Cost is determined using the first-in, first-out (FIFO) method.
At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and all are repayable within one year and hence are included at the undiscounted amount of cash expected to be paid.
Warners Retail (South West) Limited
Notes to the Financial Statements for the Year Ended 30 September 2024
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2 |
Accounting policies (continued) |
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Dividends
Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.
Leases
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.
Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the Balance Sheet as a finance lease obligation.
Lease payments are apportioned between finance costs in the Profit and Loss Account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.
Rental income from investment properties, including those on operating leases (net of any incentives given to the lessees), is recognised on a straight-line basis over the lease term.
Financial Instruments
Classification
Financial instruments are classified and accounted for according to the substance of the contractual arrangement, as 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 all of its liabilities. Where shares are issued, any component that creates a financial liability of the company is presented as a liability on the balance sheet. The corresponding dividends relating to the liability component are charged as interest expenses in the profit and loss account.
Warners Retail (South West) Limited
Notes to the Financial Statements for the Year Ended 30 September 2024
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2 |
Accounting policies (continued) |
Recognition and measurement
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.
Impairment
Assets, other than those measured at fair value, are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss as described below.
A non financial asset is impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use.
Where indicators exist for a decrease in impairment loss, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.
For financial assets carried at amortised cost, the amount of an impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the financial asset’s original effective interest rate.
For financial assets carried at cost less impairment, the impairment loss is the difference between the asset’s carrying amount and the best estimate of the amount that would be received for the asset if it were to be sold at the reporting date.
Where indicators exist for a decrease in impairment loss, and the decrease can be related objectively to an event occurring after the impairment was recognised, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired financial asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
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Turnover |
The analysis of the company's turnover for the year from continuing operations is as follows:
|
2024 |
2023 |
|
|
Sale of goods |
|
|
|
Other revenue |
|
|
|
|
|
The total turnover of the company for the year has been derived from its principal activity which is wholly undertaken in the United Kingdom.
Warners Retail (South West) Limited
Notes to the Financial Statements for the Year Ended 30 September 2024
|
Other operating income |
The analysis of the company's other operating income for the year is as follows:
|
2024 |
2023 |
|
|
Rental income |
|
|
|
Exceptional items |
|
2024 |
2023 |
|
|
Exceptional income |
- |
3,301,889 |
Exceptional income of £Nil (2023 - £3,301,889) relates to profit reported on the disposal of the trade and assets of the petrol forecourts at Mitton Manor, Tewkesbury and Quedgeley, Gloucester which were sold for total consideration of £5.2 million in October 2022.
|
Operating profit |
Arrived at after charging
|
2024 |
2023 |
|
|
Depreciation expense |
|
|
|
Operating lease expense - property |
|
|
|
Loss on disposal of property, plant and equipment |
|
- |
|
Interest receivable and similar income |
|
2024 |
2023 |
|
|
Other interest receivable |
|
|
|
Interest payable and similar expenses |
|
2024 |
2023 |
|
|
Interest on bank overdrafts and borrowings |
|
|
|
Interest on obligations under finance leases and hire purchase contracts |
|
|
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Interest on other borrowings |
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|
|
|
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
|
2024 |
2023 |
|
|
Wages and salaries |
|
|
|
Social security costs |
|
|
|
Pension costs, defined contribution scheme |
|
|
|
|
|
Warners Retail (South West) Limited
Notes to the Financial Statements for the Year Ended 30 September 2024
|
9 |
Staff costs (continued) |
The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:
|
2024 |
2023 |
|
|
Administration and support |
|
|
|
Sales |
|
|
|
|
|
|
Directors' remuneration |
The directors' remuneration for the year was as follows:
|
2024 |
2023 |
|
|
Remuneration |
|
|
|
Contributions paid to money purchase schemes |
|
|
|
70,732 |
57,113 |
During the year the number of directors who were receiving benefits was as follows:
|
2024 |
2023 |
|
|
Accruing benefits under money purchase pension scheme |
|
|
|
Auditors' remuneration |
|
2024 |
2023 |
|
|
Audit of the financial statements |
|
|
|
Other fees to auditors |
||
|
Taxation compliance services |
|
|
|
Taxation |
Tax charged/(credited) in the profit and loss account
|
2024 |
2023 |
|
|
Deferred taxation |
||
|
Arising from origination and reversal of timing differences |
|
|
|
Adjustments in respect of prior periods |
|
( |
|
Total deferred taxation |
|
|
|
Tax expense in the profit and loss account |
|
|
Warners Retail (South West) Limited
Notes to the Financial Statements for the Year Ended 30 September 2024
|
12 |
Taxation (continued) |
The tax on profit before tax for the year is higher than the standard rate of corporation tax in the UK (2023 - lower than the standard rate of corporation tax in the UK) of
The differences are reconciled below:
|
2024 |
2023 |
|
|
Profit before tax |
|
|
|
Corporation tax at standard rate |
|
|
|
Effect of expense not deductible in determining taxable profit |
|
|
|
Deferred tax expense relating to changes in tax rates or laws |
- |
|
|
Chargeable gains |
- |
|
|
Adjustments to tax charge in respect of previous periods - deferred tax |
|
( |
|
Income not taxable for tax purposes |
( |
( |
|
Other permanent differences |
- |
|
|
Other tax adjustments, reliefs and transfers |
- |
( |
|
Fixed asset differences |
|
( |
|
Total tax charge |
|
|
Deferred tax
Deferred tax assets and liabilities
|
2024 |
Liability |
|
Fixed asset timing differences |
|
|
Investment property revaluation |
|
|
Losses and other deductions |
( |
|
Short term timing differences |
( |
|
|
|
2023 |
Liability |
|
Fixed asset timing differences |
|
|
Investment property revaluation |
|
|
Losses and other deductions |
( |
|
Short term timing differences |
( |
|
|
Warners Retail (South West) Limited
Notes to the Financial Statements for the Year Ended 30 September 2024
|
Tangible assets |
|
Land and buildings |
Furniture, fittings and equipment |
Motor vehicles |
Leasehold improvements |
Total |
|
|
Cost |
|||||
|
At 1 October 2023 |
|
|
|
|
|
|
Additions |
|
|
|
- |
|
|
Disposals |
- |
( |
- |
- |
( |
|
At 30 September 2024 |
|
|
|
|
|
|
Depreciation |
|||||
|
At 1 October 2023 |
- |
|
|
|
|
|
Charge for the year |
|
|
|
- |
|
|
Eliminated on disposal |
- |
( |
- |
- |
( |
|
At 30 September 2024 |
|
|
|
|
|
|
Carrying amount |
|||||
|
At 30 September 2024 |
|
|
|
- |
|
|
At 30 September 2023 |
|
|
|
- |
|
Included within the net book value of land and buildings above is £5,276,016 (2023 - £5,243,643) in respect of freehold land and buildings.
Assets held under finance leases and hire purchase contracts
The net carrying amount of tangible assets includes the following amounts in respect of assets held under finance leases and hire purchase contracts:
|
2024 |
2023 |
|
|
Plant and machinery |
301,015 |
376,992 |
|
Motor vehicles |
23,766 |
33,793 |
|
324,781 |
410,785 |
Warners Retail (South West) Limited
Notes to the Financial Statements for the Year Ended 30 September 2024
|
Investment properties |
|
2024 |
|
|
At 1 October 2023 |
|
|
Additions |
|
|
At 30 September 2024 |
|
The prior year saw the completion of a site at Bishops Cleeve, with development costs of £4,992,855 being transferred from Assets Under Construction. The site comprises a gym, retail units and office space. Further development work was completed on office space during the year totalling £323,886. The site at Bishops Cleeve is considered by the directors to primarily constitute an investment property, where cost is a reasonable reflection of market value.
The fair value of the other properties (which are held at a value of £13,730,000) was assessed by an external valuer on 31 July 2022. The valuation was prepared in accordance with the Royal Institute of Chartered Surveyors (RICS) Valuation - Global Standards published in June 2017 (Red Book), incorporating the International Valuation Standards 2017 ("IVS").
The directors do not consider the fair value of the properties at 31 July 2022 to be materially different to their fair value at 30 September 2024.
|
Investments |
|
2024 |
2023 |
|
|
Investments in subsidiaries |
|
|
|
Subsidiaries |
£ |
|
Cost |
|
|
At 1 October 2023 and 30 September 2024 |
|
|
Carrying amount |
|
|
At 30 September 2024 |
|
|
At 30 September 2023 |
|
Details of undertakings
Details of the investments (including principal place of business of unincorporated entities) in which the company holds 20% or more of the nominal value of any class of share capital are as follows:
|
Undertaking |
Registered office |
Holding |
Proportion of voting rights and shares held |
||||
|
2024 |
2023 |
||||||
|
Subsidiary undertakings |
|||||||
|
|
Eastern Avenue, Gloucester,
|
|
|
|
|||
|
Stocks |
|
2024 |
2023 |
|
|
Fuel and shop stock |
|
|
Warners Retail (South West) Limited
Notes to the Financial Statements for the Year Ended 30 September 2024
|
Debtors |
|
2024 |
2023 |
|
|
Trade debtors |
|
|
|
Other debtors |
|
|
|
Prepayments |
|
|
|
|
|
|
Creditors |
|
Note |
2024 |
2023 |
|
|
Due within one year |
|||
|
Loans and borrowings |
|
|
|
|
Trade creditors |
|
|
|
|
Social security and other taxes |
|
|
|
|
Outstanding defined contribution pension costs |
|
|
|
|
Other creditors |
|
|
|
|
Accruals |
|
|
|
|
|
|
||
|
Due after one year |
|||
|
Loans and borrowings |
|
|
|
Loans and borrowings |
Current loans and borrowings
|
2024 |
2023 |
|
|
Bank borrowings |
|
|
|
Bank overdrafts |
|
- |
|
Hire purchase contracts |
|
|
|
Other borrowings |
|
|
|
|
|
|
Non-current loans and borrowings
|
2024 |
2023 |
|
|
Bank borrowings |
|
|
|
Hire purchase and finance lease liabilities |
|
|
|
|
|
|
Warners Retail (South West) Limited
Notes to the Financial Statements for the Year Ended 30 September 2024
|
19 |
Loans and borrowings (continued) |
Bank borrowings
Bank borrowings in the current and prior year comprise:
• A bank loan for a principal amount of £4,500,000 is denominated in GBP and bears interest at a fixed rate of 1.26% above Handelsbanken Base Rate. 25% of the loan balance is repayable by way of quarterly instalments during the term of the facility, with the balance of £3,375,000 falling due on the maturity date in November 2024. The carrying amount of the loan at the year end is £3,434,823 (2023 - £3,670,228) with £3,434,823 (2023 - £236,182) falling due within one year.
• A bank loan for a principal amount of £2,000,000 is denominated in GBP and bears interest at a rate of 1.242% above Handelsbanken Base Rate. 25% of the loan balance is repayable by way of quarterly instalments during the term of the facility, with the balance of £1,500,000 falling due on the maturity date in November 2024. The carrying amount of the loan at the year end is £1,527,376 (2023 - £1,632,263) with £1,527,376 (2023 - £105,810) falling due within one year.
• A bank loan for a principal amount of £1,500,000 is denominated in GBP and bears interest at a rate of 1.19% above Handelsbanken Base Rate. 12.357% of the loan balance is repayable by way of quarterly instalments during the term of the facility, with the balance of £1,314,645 falling due on the maturity date in January 2028. The carrying amount of the loan at the year end is £1,476,832 (2023 - £1,500,000) with £49,904 (2023 - £34,754) falling due within one year.
• A bank loan for a principal amount of £4,000,000 is denominated in GBP and bears interest at a rate of 1.19% above Handelsbanken Base Rate. 12.357% of the loan balance is repayable by way of quarterly instalments during the term of the facility, with the balance of £3,505,720 falling due on the maturity date in January 2028. The carrying amount of the loan at the year end is £3,938,218 (2023 - £4,000,000) with £123,571 (2023 - £92,678) falling due within one year.
• A bank loan for a principal amount of £200,000 is denominated in GBP and bears interest at a rate of 1.99% above Handelsbanken Base Rate. 2.94% of the loan balance is repayable by way of quarterly instalments during the term of the facility, with the balance of £194,279 falling due on the maturity date in April 2025. The carrying amount of the loan at the year end is £198,126 (2023 - £Nil) with £198,126 (2023 - £Nil) falling due within one year.
The bank facilities are secured by a fixed and floating charge over the assets and property of the company. Bank loans impose a negative pledge which prohibits the company from creating any security interests over the assets pledged as security.
Other borrowings
Other borrowings in the current and prior year comprise:
• £95,000 (2023 - £95,000) due to G Strickland-Eales, mother of G Warner. Interest is payable at 5% per annum. The loan is repayable on demand; and
• £3,840,841 (2023 - £4,267,592) due to G D Warner, a director of the company. The loan is interest free and has no fixed repayment terms.
Finance lease liabilities
Obligations under finance lease and hire purchase contracts are secured over the assets to which they relate.
|
Pension and other schemes |
Defined contribution pension scheme
The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £
Contributions totalling £
Warners Retail (South West) Limited
Notes to the Financial Statements for the Year Ended 30 September 2024
|
Share capital |
Allotted, called up and fully paid shares
|
2024 |
2023 |
|||
|
No. |
£ |
No. |
£ |
|
|
|
|
4,507 |
|
4,507 |
|
Reserves |
Called up share capital
This represents the nominal value of the issued equity share capital of the company.
Profit and loss account
This represents the cumulative profits or losses, net of dividends paid and other adjustments.
|
Obligations under leases and hire purchase contracts |
Finance leases
The total of future minimum lease payments is as follows:
|
2024 |
2023 |
|
|
Not later than one year |
|
|
|
Later than one year and not later than five years |
|
|
|
|
|
Operating leases
The total of future minimum lease payments is as follows:
|
2024 |
2023 |
|
|
Not later than one year |
|
|
|
Later than one year and not later than five years |
|
|
|
Later than five years |
|
|
|
|
|
The amount of non-cancellable operating lease payments recognised as an expense during the year was £
Operating leases - lessor
The total of future minimum lease payments is as follows:
|
2024 |
2023 |
|
|
Not later than one year |
|
|
|
Later than one year and not later than five years |
|
|
|
Later than five years |
|
|
|
|
|
Total rents recognised as income in the year are £
Warners Retail (South West) Limited
Notes to the Financial Statements for the Year Ended 30 September 2024
|
Related party transactions |
Other related party transactions
During the year the company made the following related party transactions:
Warners of Gloucester Limited
(A company controlled by M D Warner)
During the year, the company made purchases of £30,031 (2023 - £35,150) and sales of £146,638 (2023 - £65,012) to Warners of Gloucester Limited. At the balance sheet date, the amount due from Warners of Gloucester Limited in respect of these transactions was £8,991 (2023 - £3,754).
Warners Trust Plc
(A company controlled by M D Warner)
During the year, the company made purchases of £1,200 (2023 - £1,200) and sales of £21,862 (2023 - £38,026) to Warners Trust Plc. At the balance sheet date the amount due from Warners Trust Plc in respect of these transactions was £2,758 (2023 - £1,892).
M5 Leisure Limited
(A company in which M D Warner has an interest)
During the year, the company made purchases of £500 (2023 - £3,045) and sales of £26,203 (2023 - £79,209) to M5 Leisure Limited. At the balance sheet date the amount due from M5 Leisure Limited in respect of these transactions was £1,204 (2023 - £4,946).
G L Strickland-Eales
(Mother of the director, G D Warner)
G L Strickland-Eales provided a loan of £95,000, which attracted interest at a rate of 5%. During the year repayments of £nil (2023 - £Nil) were made in respect of this loan. At the balance sheet date the amount due to G L Strickland-Eales was £95,000 (2023 - £95,000).
G D Warner
(Director)
At the balance sheet date the amount due to G D Warner in respect of his loan was £3,840,841 (2023 - £4,267,592). This loan is interest-free and has no fixed repayment terms.
Enduratec Limited
(A company in which GD Warner has an interest)
During the year the company made sales of £10,021 (2023 - £1,583) to Enduratec Limited. At balance sheet date the amount due from Enduratec Limited in respect of these transactions was £Nil (2023 - £563).
The company has previously provided a loan of £15,000 to Enduratec Limited, which attracts no interest. During the year repayments of £7,500 (2023 - £7,500) were made in respect of this loan. At balance sheet date the amount due from Enduratec Limited in respect of this loan £Nil (2023 - £7,500).
|
Non adjusting events after the financial period |
|
|
Warners Retail (South West) Limited
Notes to the Financial Statements for the Year Ended 30 September 2024
|
Parent and ultimate parent undertaking |
The immediate and ultimate parent company is Warners Retail Group Limited, which is incorporated in the United Kingdom.
The parent undertaking of the smallest and largest group for which consolidated financial statements are prepared is Warners Retail Group Limited. A copy of this company's consolidated financial statements are available from Companies House, Cardiff.
The ultimate controlling party is G D Warner.