Company Registration No. NI029028 (Northern Ireland)
KILREA SERVICE STATION LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
IDS Chartered Accountants LLP
23/25 Queen Street
COLERAINE
Co Londonderry
BT52 1BG
KILREA SERVICE STATION LTD
CONTENTS
Page
Company information
1
Strategic report
2 - 3
Director's report
4 - 5
Independent auditor's report
6 - 8
Statement of income and retained earnings
9
Balance sheet
10
Statement of cash flows
11
Notes to the financial statements
12 - 26
KILREA SERVICE STATION LTD
COMPANY INFORMATION
- 1 -
Director
K Bradley
Secretary
K Bradley
Company number
NI029028
Registered office
26 Garvagh Road
KILREA
Co Londonderry
BT51 5QP
Auditor
IDS Chartered Accountants LLP
23/25 Queen Street
COLERAINE
Co Londonderry
BT52 1BG
Bankers
Danske Bank
1-2 Broadway
BALLYMENA
Co Antrim
BT43 7AA
Solicitors
Turley Legal
Chronicle Building
20 Railway Road
COLERAINE
Co Londonderry
BT52 1PE
KILREA SERVICE STATION LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 2 -
The director presents the strategic report for the year ended 30 September 2024.
Review of the business
The company is a convenience store operator, and the principal activity of the company in the year under review was the operation of convenience stores, forecourts and off licences. In September 2024 the company disposed of its convenience store in Garvagh.
The results of the company for the year, as set out in the Statement of Comprehensive Income on page 9, show a profit before tax of £2,717,639 (2023: £1,490,663).
Principal risks and uncertainties
Over the last few years there have been some changes within the market in which the company operates. Despite the retail and food industry having been hit hard by the economic conditions, the company is continuing to enjoy strong revenues, whilst the margins are becoming tighter. Nevertheless, the director remains vigilant and aware of the risks facing the business. The key risks facing the company are: Windsor Framework, national insurance increases and the impact on wage costs, high energy costs, inflationary pressures, ever increasing red tape and legislation, maintaining sales, challenging labour market, and operational risks such as theft.
Risk management
As director I continue to follow an appropriate risk strategy, which effectively manages exposures related to the achievement of business objectives by ensuring that appropriate management systems are in place, key financial performance indicators are regularly monitored, development plans for staff are regularly reviewed and updated, and the health and safety policy is well documented and properly implemented. The key risks being faced by the company, outlined above, have been managed effectively throughout the current financial year.
The convenience store market is highly competitive. The continued expansion of wholesale retail chains throughout Northern Ireland, coupled with the current economic climate means that the director's focus continues to be on driving increased footfall and basket spend at all times, and attempting to meet changing customer demands.
Development and performance
The results of the current financial year show an increase in turnover of 1%, Gross profit margin has decreased by 0.24%. Operating costs were within the directors' expectations and were well controlled. The tight control of operating costs has achieved an operating profit margin of 10% (2023: 5%). The director considered the results for the year to be good, and in line with the expectations of management.
Key performance indicators
As director I have determined the following financial indicators to be the most effective measures of progress towards the achievement of company objectives: |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Operating profit Stock turnover Current ratio | | | |
KILREA SERVICE STATION LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 3 -
Other information and explanations
Financial instruments
As all of the company's sales are in UK pounds and it does not enter into any hedging activities, it is not exposed to any form of exchange risk. The company continues to tighten controls over debt collection, whilst at the same time negotiating favourable terms with its suppliers.
Environmental matters
It is the policy of the company to undertake its operations in a manner that is least detrimental to the environment both inside and outside the premises, and to comply with the relevant legislation, codes of practice and guidance notes.
Disabled employees
Applications for employment by disabled persons are always fully and fairly considered, bearing in mind the aptitude and ability of the applicant concerned. In the event of employees becoming disabled every effort is made to ensure that their employment within the company continues and the appropriate training is arranged. It continues to be the policy of the company that the training, career development and promotion of disabled persons should as far as is feasible be identical to that of other employees.
Employee involvement
The company continues to maintain regular contact with the employees regarding current activities and business progress through regular staff briefings and in house publications.
K Bradley
Secretary
17 June 2025
KILREA SERVICE STATION LTD
DIRECTOR'S REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 4 -
The director presents his annual report and financial statements for the year ended 30 September 2024.
Principal activities
The principal activity of the company continued to be that of the operation of convenience stores, forecourts and off licences.
Results and dividends
The results for the year are set out on page 9.
Ordinary dividends were paid amounting to £52,000. The director does not recommend payment of a final dividend.
Director
The director who held office during the year and up to the date of signature of the financial statements was as follows:
K Bradley
Auditor
The auditor, IDS Chartered Accountants LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Statement of director's responsibilities
The director is responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent; and
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The director is 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. He is 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 of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the director individually have taken all the necessary steps that they ought to have taken as director in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
KILREA SERVICE STATION LTD
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 5 -
By order of the board
K Bradley
Secretary
17 June 2025
KILREA SERVICE STATION LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF KILREA SERVICE STATION LTD
- 6 -
Opinion
We have audited the financial statements of Kilrea Service Station Ltd (the 'company') for the year ended 30 September 2024 which comprise the statement of income and retained earnings, the balance sheet, the statement of cash flows and notes to the financial statements, including 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.
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 director's 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 director with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The director is responsible for the other information contained within the annual report. 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. 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 course of 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 our audit:
the information given in the strategic report and the director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the director's report have been prepared in accordance with applicable legal requirements.
KILREA SERVICE STATION LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF KILREA SERVICE STATION LTD (CONTINUED)
- 7 -
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 director's 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 director's remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of director
As explained more fully in the director's responsibilities statement, the director is 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 director determines 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 director is responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the company or to cease operations, or has 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.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities including fraud and non-compliance with laws and regulations, was as follows:
we identified the laws and regulations applicable to the company through discussions with the director and other management, and from our commercial knowledge and experience of the sector;
we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence.
We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud;
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations; and
performed analytical procedures to identify any unusual or unexpected relationships;
tested journal entries to identify unusual transactions;
assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias;
investigated the rationale behind any significant or unusual transactions.
KILREA SERVICE STATION LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF KILREA SERVICE STATION LTD (CONTINUED)
- 8 -
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
agreeing financial statements disclosures to underlying supporting documentation;
enquiring of management as to actual and potential litigation and claims;
reviewing correspondence with HMRC, relevant regulators and the company's legal advisors.
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
The purpose of our audit work and to whom we owe our responsibilities
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Mrs Alison Wallace (Senior Statutory Auditor)
For and on behalf of IDS Chartered Accountants LLP, Statutory Auditor
23/25 Queen Street
COLERAINE
Co Londonderry
BT52 1BG
17 June 2025
KILREA SERVICE STATION LTD
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 9 -
2024
2023
Notes
£
£
Turnover
3
29,796,516
29,520,159
Cost of sales
(24,524,081)
(24,127,756)
Gross profit
5,272,435
5,392,403
Administrative expenses
(2,602,381)
(3,989,046)
Other operating income
250,281
199,342
Operating profit
4
2,920,335
1,602,699
Interest receivable and similar income
8
22,103
1,730
Interest payable and similar expenses
9
(224,799)
(113,766)
Profit before taxation
2,717,639
1,490,663
Tax on profit
10
(645,655)
(259,426)
Profit for the financial year
2,071,984
1,231,237
Retained earnings brought forward
13,901,581
12,710,344
Dividends
11
(52,000)
(40,000)
Retained earnings carried forward
15,921,565
13,901,581
The profit and loss account has been prepared on the basis that all operations are continuing operations.
KILREA SERVICE STATION LTD
BALANCE SHEET
AS AT
30 SEPTEMBER 2024
30 September 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
12
542,644
623,634
Tangible assets
13
9,655,042
9,482,606
Investment property
14
111,100
111,100
Investments
15
22,196
22,196
10,330,982
10,239,536
Current assets
Stocks
16
1,033,525
1,277,794
Debtors
17
10,370,194
11,422,179
Cash at bank and in hand
6,076,356
5,280,313
17,480,075
17,980,286
Creditors: amounts falling due within one year
18
(5,161,698)
(7,299,531)
Net current assets
12,318,377
10,680,755
Total assets less current liabilities
22,649,359
20,920,291
Creditors: amounts falling due after more than one year
19
(2,262,403)
(2,456,614)
Provisions for liabilities
Deferred tax liability
21
1,352,890
1,449,595
(1,352,890)
(1,449,595)
Net assets
19,034,066
17,014,082
Capital and reserves
Called up share capital
23
25,602
25,602
Revaluation reserve
24
3,086,899
3,086,899
Profit and loss reserves
25
15,921,565
13,901,581
Total equity
19,034,066
17,014,082
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The financial statements were approved and signed by the director and authorised for issue on 17 June 2025
K Bradley
Director
Company registration number NI029028 (Northern Ireland)
KILREA SERVICE STATION LTD
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 11 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
29
3,020,113
2,006,444
Interest paid
(224,799)
(113,766)
Income taxes paid
(427,613)
(141,782)
Net cash inflow from operating activities
2,367,701
1,750,896
Investing activities
Purchase of intangible assets
(80,000)
Proceeds from disposal of intangibles
1,799,998
Purchase of tangible fixed assets
(728,856)
(1,651,129)
Proceeds from disposal of tangible fixed assets
100,001
130,000
Repayment of loans
(230,289)
(320,787)
Interest received
22,036
1,661
Dividends received
67
69
Net cash generated from/(used in) investing activities
962,957
(1,920,186)
Financing activities
Repayment of borrowings
(60,213)
(80,284)
Proceeds from new bank loans
163,260
1,123,809
Repayment of bank loans
(46,995)
(154,454)
Dividends paid
(52,000)
(40,000)
Net cash generated from financing activities
4,052
849,071
Net increase in cash and cash equivalents
3,334,710
679,781
Cash and cash equivalents at beginning of year
1,054,748
374,967
Cash and cash equivalents at end of year
4,389,458
1,054,748
Relating to:
Cash at bank and in hand
6,076,356
5,280,313
Bank overdrafts included in creditors payable within one year
(1,686,898)
(4,225,565)
KILREA SERVICE STATION LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 12 -
1
Accounting policies
Company information
Kilrea Service Station Ltd is a private company limited by shares incorporated in Northern Ireland. The registered office is 26 Garvagh Road, KILREA, Co Londonderry, BT51 5QP.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2
Going concern
Atruet the time of approving the financial statements, the director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.4
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.
For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.
1.5
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
KILREA SERVICE STATION LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 13 -
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Licences
Nil
1.6
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Land and buildings Freehold
Straight line over 50 years
Land and buildings Leasehold
Straight line over the life of the lease
Fixtures, fittings & equipment
10% straight line
Computer equipment
33.33% straight line
Motor vehicles
25% straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.7
Investment property
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.
1.8
Fixed asset investments
Fixed asset investments are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
1.9
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
KILREA SERVICE STATION LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 14 -
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.10
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.11
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.12
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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. Financial assets classified as receivable within one year are not amortised.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
KILREA SERVICE STATION LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 15 -
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial 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 company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.13
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.14
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
KILREA SERVICE STATION LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 16 -
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.15
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.16
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the director is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
During the current financial year there were no material judgements or sources of estimation uncertainty requiring specific disclosure in the financial statements.
KILREA SERVICE STATION LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 17 -
3
Turnover and other revenue
An analysis of the company's turnover all of which is within Northern Ireland, is as follows:
2024
2023
£
£
Turnover analysed by class of business
Sale of goods
29,796,516
29,520,159
2024
2023
£
£
Other revenue
Interest income
22,036
1,661
Dividends received
67
69
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Depreciation of owned tangible fixed assets
449,965
368,269
Loss/(profit) on disposal of tangible fixed assets
6,454
(47,266)
Profit on disposal of intangible assets
(1,719,008)
-
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
11,856
10,000
For other services
All other non-audit services
7,750
4,490
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Average number of employees
147
158
KILREA SERVICE STATION LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
6
Employees
(Continued)
- 18 -
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
2,205,845
2,074,463
Social security costs
134,849
116,784
Pension costs
33,110
30,175
2,373,804
2,221,422
7
Director's remuneration
2024
2023
£
£
Remuneration for qualifying services
16,538
16,544
Company pension contributions to defined contribution schemes
2,477
2,477
19,015
19,021
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2023 - 1).
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
22,036
1,661
Other income from investments
Dividends received
67
69
Total income
22,103
1,730
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
22,036
1,661
Dividends from financial assets measured at fair value through profit or loss
67
69
KILREA SERVICE STATION LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 19 -
9
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
223,836
105,549
Other finance costs:
Other interest
963
8,217
224,799
113,766
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
739,420
90,536
Adjustments in respect of prior periods
2,940
(25,711)
Total current tax
742,360
64,825
Deferred tax
Origination and reversal of timing differences
(96,705)
194,601
Total tax charge
645,655
259,426
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Profit before taxation
2,717,639
1,490,663
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 25.00%)
679,410
372,666
Tax effect of expenses that are not deductible in determining taxable profit
2,771
2,555
Tax effect of income not taxable in determining taxable profit
(16)
Adjustments in respect of prior years
2,940
(25,711)
Effect of change in corporation tax rate
(12,308)
Dividend income
(17)
Capital allowances in excess of depreciation
57,255
(272,361)
Deferred tax movement in year
(96,705)
194,602
Taxation charge for the year
645,655
259,426
KILREA SERVICE STATION LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 20 -
11
Dividends
2024
2023
£
£
Interim paid
52,000
40,000
12
Intangible fixed assets
Goodwill
Licences
Total
£
£
£
Cost
At 1 October 2023
912,490
623,634
1,536,124
Disposals
(331,900)
(80,990)
(412,890)
At 30 September 2024
580,590
542,644
1,123,234
Amortisation and impairment
At 1 October 2023
912,490
912,490
Disposals
(331,900)
(331,900)
At 30 September 2024
580,590
580,590
Carrying amount
At 30 September 2024
542,644
542,644
At 30 September 2023
623,634
623,634
KILREA SERVICE STATION LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 21 -
13
Tangible fixed assets
Land and buildings Freehold
Land and buildings Leasehold
Fixtures, fittings & equipment
Computer equipment
Motor vehicles
Total
£
£
£
£
£
£
Cost or valuation
At 1 October 2023
10,021,703
188,513
3,977,616
241,704
70,969
14,500,505
Additions
415,700
307,470
5,686
728,856
Disposals
(74,257)
(331,952)
(19,710)
(425,919)
At 30 September 2024
10,437,403
114,256
3,953,134
227,680
70,969
14,803,442
Depreciation and impairment
At 1 October 2023
2,091,408
52,602
2,630,256
182,408
61,225
5,017,899
Depreciation charged in the year
198,652
3,770
222,887
22,220
2,436
449,965
Eliminated in respect of disposals
(16,560)
(283,194)
(19,710)
(319,464)
At 30 September 2024
2,290,060
39,812
2,569,949
184,918
63,661
5,148,400
Carrying amount
At 30 September 2024
8,147,343
74,444
1,383,185
42,762
7,308
9,655,042
At 30 September 2023
7,930,295
135,911
1,347,360
59,296
9,744
9,482,606
Land and buildings with a carrying amount of £8,147,343 were revalued at 31/03/2010 by O'Connor Kennedy Turtle, independent valuers not connected with the company on the basis of market value. The valuation conforms to International Valuation Standards and was based on recent market transactions on arm's length terms for similar properties. The director has not updated the revaluation as he is not aware of any material change in value.
Land and buildings are carried at valuation. If land and buildings were measured using the cost model, the carrying amounts would have been approximately:
Land and buildings
2024
2023
£
£
Cost
6,068,055
6,142,312
Accumulated depreciation
(1,490,980)
(1,386,178)
Carrying value
4,577,075
4,756,134
KILREA SERVICE STATION LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 22 -
14
Investment property
2024
£
Fair value
At 1 October 2023 and 30 September 2024
111,100
Investment property comprises a property in Northern Ireland.
15
Fixed asset investments
2024
2023
£
£
Listed investments
2,396
2,396
Unlisted investments
19,800
19,800
22,196
22,196
Market value if different from carrying amount
662
678
Fixed asset investments not carried at market value
Listed investments are included in the financial statements at cost.
16
Stocks
2024
2023
£
£
Finished goods and goods for resale
1,033,525
1,277,794
There are no material differences between the replacement cost of stock and the balance sheet amount.
17
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
110,659
118,341
Corporation tax recoverable
868,021
790,298
Other debtors
9,269,680
10,319,320
Prepayments and accrued income
113,638
186,024
10,361,998
11,413,983
KILREA SERVICE STATION LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
17
Debtors
(Continued)
- 23 -
2024
2023
Amounts falling due after more than one year:
£
£
Deferred tax asset (note 21)
8,196
8,196
Total debtors
10,370,194
11,422,179
18
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans and overdrafts
20
2,059,956
4,288,147
Other borrowings
20
60,213
Trade creditors
2,103,242
2,375,736
Corporation tax
817,143
424,673
Other taxation and social security
105,643
24,100
Other creditors
4,189
5,928
Accruals and deferred income
71,525
120,734
5,161,698
7,299,531
19
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans and overdrafts
20
2,262,403
2,456,614
20
Loans and overdrafts
2024
2023
£
£
Bank loans
2,635,461
2,519,196
Bank overdrafts
1,686,898
4,225,565
Other loans
60,213
4,322,359
6,804,974
Payable within one year
2,059,956
4,348,360
Payable after one year
2,262,403
2,456,614
Bank loans and overdrafts are secured by floating charges over all the property or undertaking of the company.
KILREA SERVICE STATION LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 24 -
21
Deferred taxation
Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:
Liabilities
Liabilities
Assets
Assets
2024
2023
2024
2023
Balances:
£
£
£
£
Accelerated capital allowances
323,924
420,629
-
-
Tax losses
-
-
8,196
8,196
Revaluations
1,028,966
1,028,966
-
-
1,352,890
1,449,595
8,196
8,196
2024
Movements in the year:
£
Liability at 1 October 2023
1,441,399
Credit to profit or loss
(96,705)
Liability at 30 September 2024
1,344,694
The deferred tax asset set out above is expected to reverse and relates to the utilisation of tax losses against future expected profits. The deferred tax liability set out above is expected to reverse and relates to accelerated capital allowances that are expected to mature.
22
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
33,110
30,175
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
23
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
ordinary shares of £1 each
25,602
25,602
25,602
25,602
24
Revaluation reserve
2024
2023
£
£
At the beginning and end of the year
3,086,899
3,086,899
KILREA SERVICE STATION LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 25 -
25
Profit and loss reserves
2024
2023
£
£
At the beginning of the year
13,901,581
12,710,344
Profit for the year
2,071,984
1,231,237
Dividends declared and paid in the year
(52,000)
(40,000)
At the end of the year
15,921,565
13,901,581
26
Related party transactions
Remuneration of key management personnel
The remuneration of key management personnel is as follows.
2024
2023
£
£
Aggregate compensation
16,538
16,544
The following amounts were outstanding at the reporting end date:
2024
2023
Amounts due from related parties
£
£
Entities over which the entity has control, joint control or significant influence
6,417,736
7,832,335
Key management personnel
1,127
637
27
Directors' transactions
Description
% Rate
Opening balance
Amounts advanced
Interest charged
Closing balance
£
£
£
£
K Bradley
2.25
2,413,785
178,654
51,635
2,644,074
2,413,785
178,654
51,635
2,644,074
28
Ultimate controlling party
Mr K Bradley is the ultimate controlling party.
KILREA SERVICE STATION LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 26 -
29
Cash generated from operations
2024
2023
£
£
Profit after taxation
2,071,984
1,231,237
Adjustments for:
Taxation charged
645,655
259,426
Finance costs
224,799
113,766
Investment income
(22,103)
(1,730)
Loss/(gain) on disposal of tangible fixed assets
6,454
(47,266)
Gain on disposal of intangible assets
(1,719,008)
-
Depreciation and impairment of tangible fixed assets
449,965
368,269
Movements in working capital:
Decrease/(increase) in stocks
244,269
(135,753)
Decrease/(increase) in debtors
1,359,997
(589,880)
(Decrease)/increase in creditors
(241,899)
808,375
Cash generated from operations
3,020,113
2,006,444
30
Analysis of changes in net funds/(debt)
1 October 2023
Cash flows
30 September 2024
£
£
£
Cash at bank and in hand
5,280,313
796,043
6,076,356
Bank overdrafts
(4,225,565)
2,538,667
(1,686,898)
1,054,748
3,334,710
4,389,458
Borrowings excluding overdrafts
(2,579,409)
(56,052)
(2,635,461)
(1,524,661)
3,278,658
1,753,997
2024-09-302023-10-01falsefalsefalseCCH SoftwareCCH Accounts Production 2025.100K BradleyK BradleyNI0290282023-10-012024-09-30NI029028bus:CompanySecretaryDirector12023-10-012024-09-30NI029028bus:Director12023-10-012024-09-30NI029028bus:CompanySecretary12023-10-012024-09-30NI029028bus:RegisteredOffice2023-10-012024-09-30NI029028bus:Agent12023-10-012024-09-30NI0290282024-09-30NI0290282022-10-012023-09-30NI029028core:RetainedEarningsAccumulatedLosses2023-09-30NI029028core:RetainedEarningsAccumulatedLosses2022-09-30NI029028core:ShareCapital2024-09-30NI029028core:ShareCapital2023-09-30NI029028core:RevaluationReserve2024-09-30NI029028core:RevaluationReserve2023-09-30NI029028core:RetainedEarningsAccumulatedLosses2024-09-30NI029028core:RetainedEarningsAccumulatedLosses2023-09-30NI0290282023-09-30NI029028core:ShareCapitalOrdinaryShareClass12024-09-30NI029028core:ShareCapitalOrdinaryShareClass12023-09-30NI029028core:RetainedEarningsAccumulatedLosses2022-10-012023-09-30NI029028core:OtherResidualIntangibleAssets2024-09-30NI029028core:OtherResidualIntangibleAssets2023-09-30NI029028core:Goodwill2024-09-30NI029028core:PatentsTrademarksLicencesConcessionsSimilar2024-09-30NI029028core:Goodwill2023-09-30NI029028core:PatentsTrademarksLicencesConcessionsSimilar2023-09-30NI029028core:LandBuildingscore:OwnedOrFreeholdAssets2024-09-30NI029028core:LandBuildingscore:LeasedAssetsHeldAsLessee2024-09-30NI029028core:FurnitureFittings2024-09-30NI029028core:ComputerEquipment2024-09-30NI029028core:MotorVehicles2024-09-30NI029028core:LandBuildingscore:OwnedOrFreeholdAssets2023-09-30NI029028core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-09-30NI029028core:FurnitureFittings2023-09-30NI029028core:ComputerEquipment2023-09-30NI029028core:MotorVehicles2023-09-30NI029028core:CurrentFinancialInstrumentscore:WithinOneYear2024-09-30NI029028core:CurrentFinancialInstrumentscore:WithinOneYear2023-09-30NI029028core:Non-currentFinancialInstrumentscore:AfterOneYear2024-09-30NI029028core:Non-currentFinancialInstrumentscore:AfterOneYear2023-09-30NI029028core:CurrentFinancialInstruments2024-09-30NI029028core:CurrentFinancialInstruments2023-09-30NI02902812023-10-012024-09-30NI02902812022-10-012023-09-30NI02902822023-10-012024-09-30NI02902822022-10-012023-09-30NI0290282023-09-30NI0290282022-09-30NI029028core:WithinOneYear2024-09-30NI029028core:WithinOneYear2023-09-30NI029028core:Goodwill2023-10-012024-09-30NI029028core:IntangibleAssetsOtherThanGoodwill2023-10-012024-09-30NI029028core:PatentsTrademarksLicencesConcessionsSimilar2023-10-012024-09-30NI029028core:LandBuildingscore:OwnedOrFreeholdAssets2023-10-012024-09-30NI029028core:LandBuildingscore:LongLeaseholdAssets2023-10-012024-09-30NI029028core:FurnitureFittings2023-10-012024-09-30NI029028core:ComputerEquipment2023-10-012024-09-30NI029028core:MotorVehicles2023-10-012024-09-30NI029028core:UKTax2023-10-012024-09-30NI029028core:UKTax2022-10-012023-09-30NI029028core:Goodwill2023-09-30NI029028core:PatentsTrademarksLicencesConcessionsSimilar2023-09-30NI029028core:LandBuildingscore:OwnedOrFreeholdAssets2023-09-30NI029028core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-09-30NI029028core:FurnitureFittings2023-09-30NI029028core:ComputerEquipment2023-09-30NI029028core:MotorVehicles2023-09-30NI029028core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-10-012024-09-30NI029028core:Non-currentFinancialInstrumentscore:ListedExchangeTraded2024-09-30NI029028core:Non-currentFinancialInstrumentscore:ListedExchangeTraded2023-09-30NI029028core:Non-currentFinancialInstrumentscore:UnlistedNon-exchangeTraded2024-09-30NI029028core:Non-currentFinancialInstrumentscore:UnlistedNon-exchangeTraded2023-09-30NI029028core:Non-currentFinancialInstruments2024-09-30NI029028core:Non-currentFinancialInstruments2023-09-30NI029028bus:OrdinaryShareClass12023-10-012024-09-30NI029028bus:OrdinaryShareClass12024-09-30NI029028bus:OrdinaryShareClass12023-09-30NI029028bus:PrivateLimitedCompanyLtd2023-10-012024-09-30NI029028bus:FRS1022023-10-012024-09-30NI029028bus:Audited2023-10-012024-09-30NI029028bus:FullAccounts2023-10-012024-09-30xbrli:purexbrli:sharesiso4217:GBP