| REGISTERED NUMBER: 13517572 (England and Wales) |
| RKA CARDIFF HOLDINGS LIMITED |
| GROUP STRATEGIC REPORT, |
| REPORT OF THE DIRECTORS AND |
| CONSOLIDATED FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 30 SEPTEMBER 2024 |
| REGISTERED NUMBER: 13517572 (England and Wales) |
| RKA CARDIFF HOLDINGS LIMITED |
| GROUP STRATEGIC REPORT, |
| REPORT OF THE DIRECTORS AND |
| CONSOLIDATED FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 30 SEPTEMBER 2024 |
| RKA CARDIFF HOLDINGS LIMITED (REGISTERED NUMBER: 13517572) |
| CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 30 SEPTEMBER 2024 |
| Page |
| Company Information | 1 |
| Group Strategic Report | 2 |
| Report of the Directors | 5 |
| Report of the Independent Auditors | 7 |
| Consolidated Statement of Comprehensive Income | 11 |
| Consolidated Balance Sheet | 12 |
| Company Balance Sheet | 13 |
| Consolidated Statement of Changes in Equity | 14 |
| Company Statement of Changes in Equity | 15 |
| Consolidated Cash Flow Statement | 16 |
| Notes to the Consolidated Financial Statements | 17 |
| RKA CARDIFF HOLDINGS LIMITED |
| COMPANY INFORMATION |
| FOR THE YEAR ENDED 30 SEPTEMBER 2024 |
| DIRECTORS: |
| REGISTERED OFFICE: |
| REGISTERED NUMBER: |
| AUDITORS: |
| STATUTORY AUDITORS |
| Churchgate House |
| 3 Church Road |
| Whitchurch |
| Cardiff |
| CF14 2DX |
| RKA CARDIFF HOLDINGS LIMITED (REGISTERED NUMBER: 13517572) |
| GROUP STRATEGIC REPORT |
| FOR THE YEAR ENDED 30 SEPTEMBER 2024 |
| The directors present their strategic report of the company and the group for the year ended 30 September 2024. |
| PRINCIPAL ACTIVITIES AND REVIEW OF BUSINESS |
| The principal activity of the group during the year continued to be dispensing chemists, retail chemists and online retailers. |
| The directors are encouraged by the group's results for the year. Despite an annualised sales decrease of 14.85% the gross profit margin has increased to 14.01%, showing a more robust and cost-efficient sales process. Margins have increased at the expense of sales revenue, with the group loyalty scheme being successful in attracting repeat customers. Stock levels as planned have been significantly reduced over the year. The directors aim to reduce stock further within the coming year. The directors ultimately believe their efforts in this, and the prior year have now put the group in a good position to maintain profitable. |
| A key strength of the group is its ability to distribute orders efficiently to many customers. This has been enhanced in recent years by its investment in its online sales platform. Details of the group's performance for the year are set out within this report. |
| Uncertainties in the UK economic recovery, including rising inflation, have had a real impact on household disposable income to spend on cosmetics. However, the slight shift in the Bank of England's forecast underlines that, slowly and subtly, the economy is showing signs of recovery or at the very least a less bleak outlook than was previously expected. It is therefore anticipated that real household disposable income will remain flat in the near term, rather than falling significantly as had been previously expected. However, when assessing the reasonableness of the group's estimates made by the directors, such as the recoverability of debtors and related disclosures, the appropriateness of the going concern assumptions is also relevant in understanding the financial statements. All of these depend on assessments of the future economic environment and the group's future prospects and performance. |
| RKA CARDIFF HOLDINGS LIMITED (REGISTERED NUMBER: 13517572) |
| GROUP STRATEGIC REPORT |
| FOR THE YEAR ENDED 30 SEPTEMBER 2024 |
| PRINCIPAL RISKS AND UNCERTAINTIES |
| The Management team continually monitor the key risks facing the group together with assessing the controls used for managing these risks. The board of directors formally reviews and documents the principal risks facing the business at least annually. |
| The principal risks and uncertainties facing the group are as follows; |
| Economic downturn - The group acknowledges the importance of maintaining close relationships with its key customers in order to be able to identify the early signs of potential financial difficulties. Sales trends in its major markets are constantly reviewed to enable early action to be taken in the event of sales declining. |
| Competitive pressure - In the general economic environment is a continuing risk to the group as is the ability of suppliers to keep pace with the competition. The group manages this risk by providing fast response times in fulfilling sales orders and by maintaining strong relationships with key customers and suppliers throughout the world. |
| Reliance on key customers - The group's purchasing activities could expose it to over reliance on certain suppliers and inflationary pricing pressure. The group manages this risk by ensuring there is enough breadth in its supplier base and by constantly seeking to find potential alternative suppliers that may be used, if necessary. |
| Loss of key personnel - This would present significant operational difficulties for the group. Management seek to ensure that key personnel are appropriately remunerated to ensure that good performance is recognised. |
| Financial risk management - The main financial risks arising from the group's activities are credit risk, liquidity risk, foreign exchange risk, interest rate risk and price risk. |
| Credit risk - The group limits its exposure to credit risk. It is group policy to assess the credit risk of all customers before entering into a trading relationship and to ensure that credit risk is kept to a minimum. |
| Liquidity risk - The operations of the group are financed through robust management of the group's working capital requirement and treasury function. The group's policy to manage liquidity risk and cash flow risk is to ensure that adequate funds are held in readily accessible current accounts to meet the working capital requirements of the group. The directors of the group monitor these risks carefully and, when appropriate, steps are taken to ensure liquidity risk and cash flow risk are reduced. |
| Foreign exchange risk - The group sources products from abroad and is therefore subject to foreign exchange movements. This risk is managed by regular and consistent monitoring of exchange rates. |
| Price risk - The group does not enter into hedging arrangements and as such is not exposed to price risk. |
| Interest rate risk - The group does not have any long term borrowings and is therefore not exposed to interest rate risk as a result of increases in the base interest rate. |
| RKA CARDIFF HOLDINGS LIMITED (REGISTERED NUMBER: 13517572) |
| GROUP STRATEGIC REPORT |
| FOR THE YEAR ENDED 30 SEPTEMBER 2024 |
| KEY PERFORMANCE INDICATORS |
| The directors consider the following key performance indicators of the group: |
| Year end 30 September 2024 | Year end 30 September 2023 |
| Turnover | £27,258,474 | £32,013,643 |
| Gross profit | £3,819,089 | £4,372,486 |
| Gross profit margin % | 14.01% | 13.66% |
| EBITDA | £119,528 | £386,621 |
| (Loss) / Profit before tax | £192,170 | £327,475 |
| FUTURE DEVELOPMENTS |
| The directors aim to maintain the management policies which have resulted in the development of the group in recent years. They believe the group is well placed in the market and will continue to trade successfully. |
| RESEARCH AND DEVELOPMENT |
| The group will continue its policy of research and development in order to retain a competitive position in the market. All research and development expenditure is written off to the income statement as it is incurred. |
| ON BEHALF OF THE BOARD: |
| 13 June 2025 |
| RKA CARDIFF HOLDINGS LIMITED (REGISTERED NUMBER: 13517572) |
| REPORT OF THE DIRECTORS |
| FOR THE YEAR ENDED 30 SEPTEMBER 2024 |
| The directors present their report with the financial statements of the company and the group for the year ended 30 September 2024. |
| PRINCIPAL ACTIVITY |
| The principal activity of the group in the year under review was that of was that of a dispensing chemists, retail chemists and online retailers. |
| DIVIDENDS |
| No dividends will be distributed for the year ended 30 September 2024. |
| DIRECTORS |
| The directors shown below have held office during the whole of the period from 1 October 2023 to the date of this report. |
| POLITICAL DONATIONS AND EXPENDITURE |
| During the year, the company made charitable donations totalling £28,450 (2023: £50). These were made to a range of UK registered charities and community organisations. No political donations were made during the year. |
| DIRECTORS BENEFICIAL INTEREST IN SHARES |
| The beneficial interests of the directors holding office at 30 September 2024 in the shares of the RKA Cardiff Holdings Limited, according to the registers' interest, were as follows: |
| Ordinary A £1 Shares | 30.09.24 | 30.09.23 |
| RK Aggarwal | 108 | 108 |
| Mrs UR Aggarwal | 2 | 2 |
| GOING CONCERN |
| The directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future, therefore it continues to adopt the going concern basis for accounting in preparing the annual financial statements. |
| DISCLOSURE IN THE STRATEGIC REPORT |
| Information relating to future developments, principal risks and uncertainties and research and development activities are disclosed within the strategic report. |
| RKA CARDIFF HOLDINGS LIMITED (REGISTERED NUMBER: 13517572) |
| REPORT OF THE DIRECTORS |
| FOR THE YEAR ENDED 30 SEPTEMBER 2024 |
| STATEMENT OF DIRECTORS' RESPONSIBILITIES |
| The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
| Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to: |
| - | select suitable accounting policies and then apply them consistently; |
| - | make judgements and accounting estimates that are reasonable and prudent; |
| - | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
| The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
| STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
| So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
| AUDITORS |
| The auditors, HODGE BAKSHI LIMITED, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
| ON BEHALF OF THE BOARD: |
| REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
| RKA CARDIFF HOLDINGS LIMITED |
| Opinion |
| We have audited the financial statements of RKA Cardiff Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 September 2024 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement 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 group's and of the parent company affairs as at 30 September 2024 and of the group's profit for the year then ended; |
| - | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
| - | have been prepared in accordance with the requirements of the Companies Act 2006. |
| Basis for opinion |
| We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
| Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
| Other information |
| The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
| Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
| In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
| REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
| RKA CARDIFF HOLDINGS LIMITED |
| Opinions on other matters prescribed by the Companies Act 2006 |
| In our opinion, based on the work undertaken in the course of the audit: |
| - | the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
| - | the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
| Matters on which we are required to report by exception |
| In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors. |
| We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
| - | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
| - | the parent company financial statements are not in agreement with the accounting records and returns; or |
| - | certain disclosures of directors' remuneration specified by law are not made; or |
| - | we have not received all the information and explanations we require for our audit. |
| Responsibilities of directors |
| As explained more fully in the Statement of Directors' Responsibilities set out on page six, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
| In preparing the financial statements, the directors are responsible for assessing the group's and the parent 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 group or the parent company or to cease operations, or have no realistic alternative but to do so. |
| REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
| RKA CARDIFF HOLDINGS LIMITED |
| Auditors' responsibilities for the audit of the financial statements |
| Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
| The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
| The group is subject to laws and regulations that directly affect the financial statements including financial reporting legislation. We determined that the following laws and regulations were most significant including UK Companies Act, employment law, health and safety law and tax legislation. We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items. |
| We understood how the group is complying with those legal and regulatory frameworks by, making inquiries to management, those responsible for legal and compliance procedures and a review of legal and professional spend for the year. |
| The engagement partner assessed whether the engagement team collectively had the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations. The assessment did not identify any issues in this area. |
| We assessed the susceptibility of the group financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the engagement team included: |
| - Identifying and assessing the design effectiveness of controls management has in place to prevent and detect fraud; |
| - Understanding how those charged with governance considered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process; |
| - Challenging assumptions and judgments made by management in its significant accounting estimates; and |
| - Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations. |
| A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
| REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
| RKA CARDIFF HOLDINGS LIMITED |
| Use of our report |
| This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
| for and on behalf of |
| STATUTORY AUDITORS |
| Churchgate House |
| 3 Church Road |
| Whitchurch |
| Cardiff |
| CF14 2DX |
| RKA CARDIFF HOLDINGS LIMITED (REGISTERED NUMBER: 13517572) |
| CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME |
| FOR THE YEAR ENDED 30 SEPTEMBER 2024 |
| 2024 | 2023 |
| Notes | £ | £ |
| TURNOVER | 3 | 27,258,474 | 32,013,643 |
| Cost of sales | 23,439,385 | 27,641,157 |
| GROSS PROFIT | 3,819,089 | 4,372,486 |
| Administrative expenses | 3,886,557 | 4,178,471 |
| (67,468 | ) | 194,015 |
| Other operating income | 4 | 143,001 | 125,224 |
| OPERATING PROFIT | 6 | 75,533 | 319,239 |
| Interest receivable and similar income | 116,637 | 8,236 |
| PROFIT BEFORE TAXATION | 192,170 | 327,475 |
| Tax on profit | 7 | 66,194 | 75,842 |
| PROFIT FOR THE FINANCIAL YEAR |
| OTHER COMPREHENSIVE INCOME | - | - |
| TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
125,976 |
251,633 |
| Profit attributable to: |
| Owners of the parent | 125,976 | 251,633 |
| Total comprehensive income attributable to: |
| Owners of the parent | 125,976 | 251,633 |
| RKA CARDIFF HOLDINGS LIMITED (REGISTERED NUMBER: 13517572) |
| CONSOLIDATED BALANCE SHEET |
| 30 SEPTEMBER 2024 |
| 2024 | 2023 |
| Notes | £ | £ | £ | £ |
| FIXED ASSETS |
| Tangible assets | 9 | 120,784 | 144,872 |
| Investments | 10 | 15,900 | 15,900 |
| 136,684 | 160,772 |
| CURRENT ASSETS |
| Stocks | 11 | 5,407,615 | 8,889,346 |
| Debtors | 12 | 904,461 | 589,941 |
| Cash at bank and in hand | 1,158,161 | 2,468,173 |
| 7,470,237 | 11,947,460 |
| CREDITORS |
| Amounts falling due within one year | 13 | 2,944,392 | 7,583,845 |
| NET CURRENT ASSETS | 4,525,845 | 4,363,615 |
| TOTAL ASSETS LESS CURRENT LIABILITIES |
4,662,529 |
4,524,387 |
| PROVISIONS FOR LIABILITIES | 15 | 29,572 | 17,406 |
| NET ASSETS | 4,632,957 | 4,506,981 |
| CAPITAL AND RESERVES |
| Called up share capital | 16 | 200 | 200 |
| Retained earnings | 17 | 4,632,757 | 4,506,781 |
| SHAREHOLDERS' FUNDS | 4,632,957 | 4,506,981 |
| The financial statements were approved by the Board of Directors and authorised for issue on 13 June 2025 and were signed on its behalf by: |
| R K Aggarwal - Director |
| RKA CARDIFF HOLDINGS LIMITED (REGISTERED NUMBER: 13517572) |
| COMPANY BALANCE SHEET |
| 30 SEPTEMBER 2024 |
| 2024 | 2023 |
| Notes | £ | £ | £ | £ |
| FIXED ASSETS |
| Tangible assets | 9 |
| Investments | 10 |
| CURRENT ASSETS |
| Debtors | 12 |
| CREDITORS |
| Amounts falling due within one year | 13 |
| NET CURRENT ASSETS |
| TOTAL ASSETS LESS CURRENT LIABILITIES |
| CAPITAL AND RESERVES |
| Called up share capital | 16 |
| SHAREHOLDERS' FUNDS |
| Company's profit for the financial year | - | - |
| The financial statements were approved by the Board of Directors and authorised for issue on |
| RKA CARDIFF HOLDINGS LIMITED (REGISTERED NUMBER: 13517572) |
| CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
| FOR THE YEAR ENDED 30 SEPTEMBER 2024 |
| Called up |
| share | Retained | Total |
| capital | earnings | equity |
| £ | £ | £ |
| Balance at 1 October 2022 | 200 | 4,255,148 | 4,255,348 |
| Changes in equity |
| Total comprehensive income | - | 251,633 | 251,633 |
| Balance at 30 September 2023 | 200 | 4,506,781 | 4,506,981 |
| Changes in equity |
| Total comprehensive income | - | 125,976 | 125,976 |
| Balance at 30 September 2024 | 200 | 4,632,757 | 4,632,957 |
| RKA CARDIFF HOLDINGS LIMITED (REGISTERED NUMBER: 13517572) |
| COMPANY STATEMENT OF CHANGES IN EQUITY |
| FOR THE YEAR ENDED 30 SEPTEMBER 2024 |
| Called up |
| share | Retained | Total |
| capital | earnings | equity |
| £ | £ | £ |
| Balance at 1 October 2022 |
| Balance at 30 September 2023 |
| Balance at 30 September 2024 |
| RKA CARDIFF HOLDINGS LIMITED (REGISTERED NUMBER: 13517572) |
| CONSOLIDATED CASH FLOW STATEMENT |
| FOR THE YEAR ENDED 30 SEPTEMBER 2024 |
| 2024 | 2023 |
| Notes | £ | £ |
| Cash flows from operating activities |
| Cash generated from operations | 20 | 173,810 | (2,343,094 | ) |
| Tax paid | (21,832 | ) | (106,889 | ) |
| Taxation refund | - | 697,727 |
| Net cash from operating activities | 151,978 | (1,752,256 | ) |
| Cash flows from investing activities |
| Purchase of tangible fixed assets | (19,202 | ) | (24,128 | ) |
| Interest received | 116,637 | 8,236 |
| Net cash from investing activities | 97,435 | (15,892 | ) |
| Cash flows from financing activities |
| Amount introduced by directors | 175,695 | 146,882 |
| Amount withdrawn by directors | (3,027 | ) | (198,595 | ) |
| Connected company loan | (1,732,093 | ) | 1,782,516 |
| Net cash from financing activities | (1,559,425 | ) | 1,730,803 |
| Decrease in cash and cash equivalents | (1,310,012 | ) | (37,345 | ) |
| Cash and cash equivalents at beginning of year |
21 |
2,468,173 |
2,505,518 |
| Cash and cash equivalents at end of year |
21 |
1,158,161 |
2,468,173 |
| RKA CARDIFF HOLDINGS LIMITED (REGISTERED NUMBER: 13517572) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 30 SEPTEMBER 2024 |
| 1. | STATUTORY INFORMATION |
| RKA Cardiff Holdings Limited is a |
| The presentation currency of the financial statements is the Pound Sterling (£). |
| 2. | ACCOUNTING POLICIES |
| Basis of preparing the financial statements |
| The group has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland": |
| • | the requirement of paragraph 3.17(d); |
| • | the requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c); |
| • | the requirements of paragraphs 12.26, 12.27, 12.29(a), 12.29(b) and 12.29A; |
| • | the requirements of paragraphs 26.18(b), 26.19 to 26.21 and 26.23; |
| • | the requirement of paragraph 33.7. |
| RKA CARDIFF HOLDINGS LIMITED (REGISTERED NUMBER: 13517572) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 30 SEPTEMBER 2024 |
| 2. | ACCOUNTING POLICIES - continued |
| Basis of consolidation |
| The consolidated group financial statements consist of the financial statements of the parent company RKA Cardiff Holdings Limited together with all entities controlled by the parent company and its subsidiaries. |
| The financial statements are made up to the 30 September 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used to align with those used by other members of the group. |
| All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an asset transferred. |
| Subsidiaries are consolidated in the Groups financial statements from the date that control commences until the date that control ceases. |
| Business combinations |
| The consolidated financial statements include assets, liabilities and results of the company and its wholly owned subsidiary undertakings, up to 30 September each year. The results of the subsidiary undertakings are consolidated from the date of acquisition to date of disposal. |
| Transactions between the parent company and its subsidiaries are eliminated on consolidation and are not disclosed within these financial statements. |
| To date, all business combinations have been accounted for adopting merger accounting principals. Where necessary adjustments are made to the financial statements to align accounting polices with the group. |
| Going concern |
| The financial statements have been prepared on a going concern basis which assumes that the group will continue in operational existence for the foreseeable future. In making their assessment, the directors have reviewed the balance sheet, the likely future cashflows of the business, and the support available to the group. |
| The directors have confirmed their intention to continue supporting the group for the foreseeable future. This support includes making available financial assistance from other business interests under their control to ensure that the group can meet its liabilities as they fall due. Based on this continued support and after reviewing the group's forecasts and available resources, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for at least twelve months from the date of approval of the financial statements. |
| Accordingly, the going concern basis of accounting remains appropriate. |
| RKA CARDIFF HOLDINGS LIMITED (REGISTERED NUMBER: 13517572) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 30 SEPTEMBER 2024 |
| 2. | ACCOUNTING POLICIES - continued |
| Significant judgements and estimates |
| In the application of the groups accounting policies, which are described within the notes, management is required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying 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. |
| Useful economic lives of tangible assets - The annual depreciation charge for tangible fixed assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect the current estimate based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See notes for the carrying amount of the tangible fixed assets and accounting policies for the useful economic lives of each class of asset. |
| Slow moving and obsolete stock provision - The aging of stock is reviewed periodically by management in conjunction with customer demand and other trends. Based on these indications an assessment of recoverability of the value is made and associated provision for obsolete and slow moving stock is recognised. |
| Loyalty Scheme - The group operates a customer loyalty programme that enables customers to accumulate points on qualifying purchases, which can be redeemed against future transactions. The accounting for the loyalty scheme involves management judgement in estimating the fair value of the points awarded and the expected level of redemption. At the point of sale, a portion of revenue is deferred to reflect the obligation to supply goods or services in the future when the loyalty points are redeemed. The deferred amount is calculated with reference to the fair value of the reward, adjusted for an estimate of the proportion of points expected to be redeemed (redemption rate). The redemption rate is based on historical trends and current expectations of customer behaviour. These estimates are reviewed regularly. Any changes in the estimated redemption rates or fair value of points may have a significant impact on the revenue recognised and the liability recorded at the reporting date. |
| Turnover |
| Sale of goods - Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the end customer (on despatch). The amount of revenue can be measured reliably, it is probable that the economic benefit associated with the transaction will flow to the entity and costs associated with the respective transaction can be measured reliably. |
| NHS Income - NHS income is recognised in the year to which it relates. |
| RKA CARDIFF HOLDINGS LIMITED (REGISTERED NUMBER: 13517572) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 30 SEPTEMBER 2024 |
| 2. | ACCOUNTING POLICIES - continued |
| Tangible fixed assets |
| Long leasehold | - |
| Improvements to property | - |
| Plant and machinery | - |
| Fixtures and fittings | - |
| Motor vehicles | - |
| Computer equipment | - |
| Tangible fixed assets held for the groups own use are stated at cost less accumulated depreciation and accumulated impairment losses. |
| At each balance sheet date, the company reviews the carrying amount of its tangible fixed assets to determine whether there is any indication that any items have suffered an impairment loss. If any such indication exists, the recoverable amount of an 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 the asset, the group estimates the recoverable amount of the cash-generating unit to which the asset belongs. |
| Stocks |
| Stocks are stated at the lower cost and estimated selling price less costs to complete and sell. Stocks are recognised as am expense in the period in which the revenue is recognised. |
| Cost is determined on a weighted average basis that approximate to a first in, first out (FIFO) method. |
| Stock is assessed perpetually for impairment. If an item of stock is impaired, the identified stock is reduced to its estimated selling price less costs to complete and sell and an impairment charge is recognised within the income statement. Where a reversal of the impairment has been recognised the impairment charge is reversed, up to the original impairment loss and is recognised as a credit in the income statement. |
| Taxation |
| Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
| Current or deferred taxation assets and liabilities are not discounted. |
| Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
| RKA CARDIFF HOLDINGS LIMITED (REGISTERED NUMBER: 13517572) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 30 SEPTEMBER 2024 |
| 2. | ACCOUNTING POLICIES - continued |
| Deferred tax |
| Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
| Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
| Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
| Research and development |
| Expenditure on research and development is written off in the year in which it is incurred. |
| Foreign currencies |
| Transactions in currencies, other than the functional currency of the company, are recorded at the rate of exchange on the date the transaction occurred. Monetary items denominated in other currencies are translated at the rate prevailing at the end of the reporting period. All differences are taken to the profit and loss account. Non-monetary items that are measured at historic cost in a foreign currency are not retranslated. |
| Pension costs and other post-retirement benefits |
| The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
| RKA CARDIFF HOLDINGS LIMITED (REGISTERED NUMBER: 13517572) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 30 SEPTEMBER 2024 |
| 2. | ACCOUNTING POLICIES - continued |
| Provisions |
| Provisions are recognised when the company has an obligation at the balance sheet date as a result of a past event, it is probable that an outflow of economic benefit will be required in settlement and the amount can be reliable estimated. |
| Where there are a number of similar obligations, the likelihood that an outflow of economic benefits will be required in settlement is determined by considering the class of obligation as a whole. A provision is recognised even if the likelihood of an outflow with respect of any one item in the same class of obligations may be small. |
| Provisions are not made for future operating losses. |
| Provisions are measures at the present value of the cost expected to be required to settle the obligation using a pre-tax rate that reflects current market assessment of the time value of money and the risks specific to the obligation. The increase in the provision due to the passing of time is recognised as a cost in the income statement. |
| Contingent liabilities |
| Contingent liabilities are not recognised. Contingent liabilities arise as a result of past events when: |
| - It is not probable that there will be an outflow of economic resources or that the amount cannot be reliably measured at the reporting date; |
| - When the existence will be confirmed by the occurrence or non-occurrence of the uncertain future vents not wholly within the company's control. |
| Contingent liabilities are disclosed in the financial statements unless the probability of an outflow of economic resource is remote. |
| Contingent assets are not recognised. Contingent assets are disclosed in the financial statements when an inflow of future economic benefits is probable. |
| Cash & Cash equivalents |
| Cash and cash equivalents are basic financial instruments and include cash in hand and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities. |
| Financial instruments |
| The company has elected to apply the provisions of Section 11 "Basic Financial Instruments". |
| Financial instruments are recognised 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 trade and other debtors, loans to related companies 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 financial asset is measured at the present value of the future receipts discounted at a market rate of interest. |
| RKA CARDIFF HOLDINGS LIMITED (REGISTERED NUMBER: 13517572) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 30 SEPTEMBER 2024 |
| 2. | ACCOUNTING POLICIES - continued |
| Basic financial liabilities |
| Basic financial liabilities, including trade and other creditors, loans to related companies and bank loans are initially recognised at transaction price unless the arrangement constitutes a financial transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. |
| Impairment |
| Assets not measured at fair value are reviewed for any indication that the asset may be impaired at each balance sheet date. If such indication exists, the recoverable amount of the asset, or the assets cash generating unit, is estimated and compared to the carrying amount. Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised in profit or loss unless the asset is carried at a revalued amount where the impairment loss is a revaluation decrease. |
| Employee benefits |
| Short-term employee benefits are recognised as an expense in the period in which they are incurred. |
| The obligation for contribution to the money purchase scheme are recognised as an expense in the period they are incurred. The assets of the scheme are held separately from those of the company in an independent administered fund. |
| 3. | TURNOVER |
| In the opinion of the directors, an analysis of turnover and operating profit by class of business and geographical segment would be significantly prejudicial to the interest of the group |
| 4. | OTHER OPERATING INCOME |
| 2024 | 2023 |
| £ | £ |
| Other income | 143,001 | 125,224 |
| 5. | EMPLOYEES AND DIRECTORS |
| 2024 | 2023 |
| £ | £ |
| Wages and salaries | 2,393,555 | 2,546,655 |
| Social security costs | 232,670 | 223,457 |
| Other pension costs | 237,292 | 415,170 |
| 2,863,517 | 3,185,282 |
| The average number of employees during the year was as follows: |
| 2024 | 2023 |
| Retail staff | 82 | 94 |
| Administration | 2 | 2 |
| RKA CARDIFF HOLDINGS LIMITED (REGISTERED NUMBER: 13517572) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 30 SEPTEMBER 2024 |
| 5. | EMPLOYEES AND DIRECTORS - continued |
| The average number of employees by undertakings that were proportionately consolidated during the year was 84 (2023 - 96 ) . |
| 2024 | 2023 |
| £ | £ |
| Directors' remuneration | - | - |
| Directors' pension contributions to money purchase schemes | 120,000 | 230,000 |
| The number of directors to whom retirement benefits were accruing was as follows: |
| Money purchase schemes | 2 | 2 |
| 6. | OPERATING PROFIT |
| The operating profit is stated after charging: |
| 2024 | 2023 |
| £ | £ |
| Depreciation - owned assets | 43,290 | 66,165 |
| Auditors' remuneration | 17,500 | 16,000 |
| Rent | 183,960 | 183,960 |
| 7. | TAXATION |
| Analysis of the tax charge |
| The tax charge on the profit for the year was as follows: |
| 2024 | 2023 |
| £ | £ |
| Current tax: |
| UK corporation tax | 54,028 | 4,313 |
| Deferred tax provision | 12,166 | 71,529 |
| Tax on profit | 66,194 | 75,842 |
| UK corporation tax has been charged at 25 % (2023 - 22 %). |
| RKA CARDIFF HOLDINGS LIMITED (REGISTERED NUMBER: 13517572) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 30 SEPTEMBER 2024 |
| 7. | TAXATION - continued |
| Reconciliation of total tax charge included in profit and loss |
| The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
| 2024 | 2023 |
| £ | £ |
| Profit before tax | 192,170 | 327,475 |
| Profit multiplied by the standard rate of corporation tax in the UK of 25 % (2023 - 22 %) |
48,043 |
72,045 |
| Effects of: |
| Expenses not deductible for tax purposes | 10,785 | 17,939 |
| Capital allowances in excess of depreciation | (4,800 | ) | (6,046 | ) |
| Utilisation of tax losses | - | (79,625 | ) |
| Movement in deferred tax provision | 12,166 | 71,529 |
| Total tax charge | 66,194 | 75,842 |
| 8. | INDIVIDUAL STATEMENT OF COMPREHENSIVE INCOME |
| As permitted by Section 408 of the Companies Act 2006, the Statement of Comprehensive Income of the parent company is not presented as part of these financial statements. |
| The profit for the financial year dealt with in the financial statements of the parent company was £Nil (2023: £Nil). |
| RKA CARDIFF HOLDINGS LIMITED (REGISTERED NUMBER: 13517572) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 30 SEPTEMBER 2024 |
| 9. | TANGIBLE FIXED ASSETS |
| Group |
| Improvements |
| Long | to | Plant and |
| leasehold | property | machinery |
| £ | £ | £ |
| COST |
| At 1 October 2023 | 100,900 | 248,501 | 32,369 |
| Additions | - | - | 11,159 |
| At 30 September 2024 | 100,900 | 248,501 | 43,528 |
| DEPRECIATION |
| At 1 October 2023 | 61,414 | 248,501 | 21,084 |
| Charge for year | 2,018 | - | 3,063 |
| At 30 September 2024 | 63,432 | 248,501 | 24,147 |
| NET BOOK VALUE |
| At 30 September 2024 | 37,468 | - | 19,381 |
| At 30 September 2023 | 39,486 | - | 11,285 |
| Fixtures |
| and | Motor | Computer |
| fittings | vehicles | equipment | Totals |
| £ | £ | £ | £ |
| COST |
| At 1 October 2023 | 663,256 | 230,230 | 202,984 | 1,478,240 |
| Additions | 3,202 | - | 4,841 | 19,202 |
| At 30 September 2024 | 666,458 | 230,230 | 207,825 | 1,497,442 |
| DEPRECIATION |
| At 1 October 2023 | 615,619 | 205,751 | 180,999 | 1,333,368 |
| Charge for year | 11,261 | 11,750 | 15,198 | 43,290 |
| At 30 September 2024 | 626,880 | 217,501 | 196,197 | 1,376,658 |
| NET BOOK VALUE |
| At 30 September 2024 | 39,578 | 12,729 | 11,628 | 120,784 |
| At 30 September 2023 | 47,637 | 24,479 | 21,985 | 144,872 |
| The company has no tangible fixed assets. |
| RKA CARDIFF HOLDINGS LIMITED (REGISTERED NUMBER: 13517572) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 30 SEPTEMBER 2024 |
| 10. | FIXED ASSET INVESTMENTS |
| Group |
| Unlisted |
| investments |
| £ |
| COST |
| At 1 October 2023 |
| and 30 September 2024 | 15,900 |
| NET BOOK VALUE |
| At 30 September 2024 | 15,900 |
| At 30 September 2023 | 15,900 |
| Company |
| Shares in |
| group |
| undertakings |
| £ |
| COST |
| At 1 October 2023 |
| and 30 September 2024 |
| NET BOOK VALUE |
| At 30 September 2024 |
| At 30 September 2023 |
| The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
| Subsidiary |
| Registered office: England & Wales |
| Nature of business: |
| % |
| Class of shares: | holding |
| RKA CARDIFF HOLDINGS LIMITED (REGISTERED NUMBER: 13517572) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 30 SEPTEMBER 2024 |
| 11. | STOCKS |
| Group |
| 2024 | 2023 |
| £ | £ |
| Stock of goods for resale | 5,407,615 | 8,889,346 |
| Stocks are stated after provisions for impairment of £544,067 (2023: £301,119). |
| The company does not hold any stock. |
| 12. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| Group | Company |
| 2024 | 2023 | 2024 | 2023 |
| £ | £ | £ | £ |
| Other debtors | 12,646 | 7,350 |
| Trade debtors | 198,503 | 316,155 | - | - |
| Amounts owed by participating interests | 495,166 | - | - | - |
| Directors' current accounts | 20,865 | 193,533 | - | - |
| VAT | 49,485 | - |
| Prepayments | 127,796 | 72,903 |
| 904,461 | 589,941 |
| 13. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| Group | Company |
| 2024 | 2023 | 2024 | 2023 |
| £ | £ | £ | £ |
| Trade creditors | 2,638,239 | 2,140,328 |
| Tax | 41,842 | 9,646 |
| VAT | - | 71,670 | - | - |
| Other creditors | 192,875 | 120,150 | 100 | 100 |
| Accruals | 57,916 | 31,865 | - | - |
| Connected company creditors | 13,520 | 5,210,186 | - | - |
| 2,944,392 | 7,583,845 |
| 14. | LEASING AGREEMENTS |
| Minimum lease payments fall due as follows: |
| RKA CARDIFF HOLDINGS LIMITED (REGISTERED NUMBER: 13517572) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 30 SEPTEMBER 2024 |
| Group |
| Non-cancellable | operating leases |
| 2024 | 2023 |
| £ | £ |
| Within one year | 183,960 | 183,960 |
| Between one and five years | 280,000 | 280,000 |
| In more than five years | 55,000 | 125,000 |
| 518,960 | 588,960 |
| The company has no operating lease commitments. |
| 15. | PROVISIONS FOR LIABILITIES |
| Group |
| 2024 | 2023 |
| £ | £ |
| Deferred tax provision | 29,572 | 17,406 |
| Group |
| Deferred |
| tax |
| £ |
| Balance at 1 October 2023 | 17,406 |
| Accelerated capital allowances | 12,166 |
| Balance at 30 September 2024 | 29,572 |
| The deferred tax account consists of the tax effect of timing differences in respect of; |
| 2024 | 2023 |
| £ | £ |
| Accelerated capital allowances | 29,572 | 17,406 |
| 29,572 | 17,406 |
| As at 30 September 2024 there was a deferred tax creditor of £29,572, which is referred to in note 13 to the financial statements. |
| RKA CARDIFF HOLDINGS LIMITED (REGISTERED NUMBER: 13517572) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 30 SEPTEMBER 2024 |
| 16. | CALLED UP SHARE CAPITAL |
| Allotted, issued and fully paid: |
Number: |
Class: |
Nominal value: |
2021 |
2020 |
| £ | £ |
| 160 | Ordinary A | 1 | 160 | 160 |
| 40 | Ordinary B | 1 | 40 | 40 |
| 200 | 200 |
| 17. | RESERVES |
| Group |
| Retained |
| earnings |
| £ |
| At 1 October 2023 | 4,506,781 |
| Profit for the year | 125,976 |
| At 30 September 2024 | 4,632,757 |
| Company |
| Retained |
| earnings |
| £ |
| Profit for the year |
| At 30 September 2024 |
| RKA CARDIFF HOLDINGS LIMITED (REGISTERED NUMBER: 13517572) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 30 SEPTEMBER 2024 |
| 18. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
| The following advances and credits to a director subsisted during the years ended 30 September 2024 and 30 September 2023: |
| 2024 | 2023 |
| £ | £ |
| R K Aggarwal |
| Balance outstanding at start of year | (193,532 | ) | (141,820 | ) |
| Amounts advanced | (12,464 | ) | (198,595 | ) |
| Amounts repaid | 185,132 | 146,883 |
| Amounts written off | - | - |
| Amounts waived | - | - |
| Balance outstanding at end of year | (20,864 | ) | (193,532 | ) |
| The loan balances are interest free and repayable on demand |
| 19. | RELATED PARTY DISCLOSURES |
| The group has taken advantage of the exemptions available under FRS 102 section 33.1 A and has not disclosed all transactions with its subsidiary undertaking. |
| The group has paid rent amounting to £60,000 (2023 - £60,000) to the directors for occupying properties owned by them. |
| The group has also paid rent amounting to £10,000 (2023 - £10,000) to the pension fund operated for the benefit of the directors. Included within creditors falling due within one year is £42,500 (2023 - £21,250) owed by the group. |
| Included in creditors is £13,520 (2023 - £13,520) owed to a company in which the directors are shareholders and directors. The loan is interest free and repayable on demand. |
| As at the 30 September 2024 an amount of £495,166 (2023 - £5,196,667 due to RKA Cardiff Investments Limited) was due from RKA Cardiff Investments Limited. The amount is not interest bearing and considered to be repayable on demand. The relationship is that of common ownership and control. |
| During the year, a total of key management personnel compensation of £ 425,000 (2023 - £ 592,000 ) was paid. |
| RKA CARDIFF HOLDINGS LIMITED (REGISTERED NUMBER: 13517572) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 30 SEPTEMBER 2024 |
| 20. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
| 2024 | 2023 |
| £ | £ |
| Profit before taxation | 192,170 | 327,475 |
| Depreciation charges | 43,289 | 66,164 |
| Connected company loan | 1,732,094 | - |
| Finance income | (116,637 | ) | (8,236 | ) |
| 1,850,916 | 385,403 |
| Decrease/(increase) in stocks | 3,481,731 | (370,575 | ) |
| (Increase)/decrease in trade and other debtors | (487,188 | ) | 579,157 |
| Decrease in trade and other creditors | (4,671,649 | ) | (2,937,079 | ) |
| Cash generated from operations | 173,810 | (2,343,094 | ) |
| 21. | CASH AND CASH EQUIVALENTS |
| The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
| Year ended 30 September 2024 |
| 30.9.24 | 1.10.23 |
| £ | £ |
| Cash and cash equivalents | 1,158,161 | 2,468,173 |
| Year ended 30 September 2023 |
| 30.9.23 | 1.10.22 |
| £ | £ |
| Cash and cash equivalents | 2,468,173 | 2,505,518 |
| 22. | ANALYSIS OF CHANGES IN NET FUNDS |
| At 1.10.23 | Cash flow | At 30.9.24 |
| £ | £ | £ |
| Net cash |
| Cash at bank and in hand | 2,468,173 | (1,310,012 | ) | 1,158,161 |
| 2,468,173 | (1,310,012 | ) | 1,158,161 |
| Total | 2,468,173 | (1,310,012 | ) | 1,158,161 |
| 23. | ULTIMATE CONTROLLING PARTY |
| The group is controlled by Mr. RK Aggarwal. |