Company registration number 03088906 (England and Wales)
IMPACT RETAIL LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024
IMPACT RETAIL LIMITED
COMPANY INFORMATION
Directors
Mr M N Sharman
Mr S Underwood
Mrs J Barber
Secretary
Mr M N Sharman
Company number
03088906
Registered office
Unit 3 Meridian South
Meridian Business Park
Leicester
LE19 1WY
Auditor
Pierce C A Limited
Mentor House
Ainsworth Street
Blackburn
Lancashire
BB1 6AY
Business address
Unit 3 Meridian South
Meridian Business Park
Leicester
LE19 1WY
Bankers
Barclays Bank PLC
2 Bishop Meadow Road
Loughborough
Leicestershire
LE11 5RE
IMPACT RETAIL LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Statement of comprehensive income
7
Balance sheet
8
Statement of changes in equity
9
Notes to the financial statements
10 - 21
IMPACT RETAIL LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 OCTOBER 2024
- 1 -

The directors present the strategic report for the year ended 31 October 2024.

Review of the business

The year under review for the company was again challenging, however the directors consider the company achieving over £13m of sales to be satisfactory.

 

Cost increases across the board did affect margin but we are confident that the changes we are continuing to make will ensure that the company's profitability in the 2025 financial year will be at similar levels to that achieved for 2023.

 

This is despite the minimum wage and National Insurance increases implemented from April 2025.

 

Our continued capital expenditure programme is allowing us to better control operational costs, and we have been very successful in maintaining existing clients and generating new business, especially in the premium retail business sector.

Principal risks and uncertainties

The company is exposed to the usual credit risks and cash flow risks associated with selling on credit and manages this through credit control procedures and an invoice discounting facility. The company continues to invest in new plant and machinery utilising hire purchase facilities.

 

The directors consider the company has potential risks similar to those faced by similar companies in the sector, namely, retaining the loyalty of its customers, suppliers and staff.

 

Considerable emphasis is devoted to maintaining service levels with customers and working closely with suppliers on logistical and quality issues to ensure that high levels of performance are achieved.

 

Staff are encouraged to contribute fully to the business and the directors recognise that the future success of the business depends on the retention and dedication of key employees. Targeted remuneration packages, which the directors consider to be attractive by industry standards, are offered to mitigate this risk and encourage development.

Development and performance

The directors consider that market conditions will continue to be difficult and challenging, and margins continue to be under pressure. The directors aim to maintain market share and meet its customers requirements.

Key performance indicators

The directors have identified that the company's sales and margins by customer, sales representative and product type, labour and machine utilisation and efficiency and staff turnover are key performance indicators, and as such are reviewed and monitored by management on a monthly basis.

On behalf of the board

Mr M N Sharman
Director
16 July 2025
IMPACT RETAIL LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 OCTOBER 2024
- 2 -

The directors present their annual report and financial statements for the year ended 31 October 2024.

Principal activities

The principal activity of the company during the year was design and supply of point of sale display materials.

Results and dividends

The results for the year are set out on page 7.

Ordinary dividends were paid amounting to £384,397. The directors do not recommend payment of a final dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr M N Sharman
Mr S Underwood
Mrs J Barber
Auditor

The auditor, Pierce C A Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Statement of directors' responsibilities

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law, the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period.

In preparing these financial statements, the directors are required to:

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Statement 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 directors individually have taken all the necessary steps that they ought to have taken as directors 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.

IMPACT RETAIL LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 3 -
On behalf of the board
Mr M N Sharman
Director
16 July 2025
IMPACT RETAIL LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF IMPACT RETAIL LIMITED
- 4 -
Opinion

We have audited the financial statements of Impact Retail Limited (the 'company') for the year ended 31 October 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity 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:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information 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:

IMPACT RETAIL LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF IMPACT RETAIL LIMITED
- 5 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

In identifying and assessing risks of material misstatement in respect of irregularities we considered the following:

We are also required to perform specific procedures to respond to the risk of management override.

As a result of our audit procedures we did not identify a material risk of fraud or other non-compliance with laws and regulations.

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.

IMPACT RETAIL LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF IMPACT RETAIL LIMITED
- 6 -

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Simon Diggle (Senior Statutory Auditor)
For and on behalf of Pierce C A Limited
23 July 2025
Statutory Auditor
Mentor House
Ainsworth Street
Blackburn
Lancashire
BB1 6AY
IMPACT RETAIL LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 OCTOBER 2024
- 7 -
2024
2023
Notes
£
£
Turnover
3
13,195,038
14,064,938
Cost of sales
(8,172,138)
(8,976,318)
Gross profit
5,022,900
5,088,620
Distribution costs
(167,481)
(205,947)
Administrative expenses
(4,043,337)
(3,741,274)
Operating profit
4
812,082
1,141,399
Interest payable and similar expenses
7
(150,058)
(134,007)
Profit before taxation
662,024
1,007,392
Tax on profit
8
(184,033)
(244,943)
Profit for the financial year
477,991
762,449

The profit and loss account has been prepared on the basis that all operations are continuing operations.

IMPACT RETAIL LIMITED
BALANCE SHEET
AS AT
31 OCTOBER 2024
31 October 2024
- 8 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
11
712,257
840,678
Current assets
Stocks
12
107,109
126,868
Debtors
13
6,516,743
6,181,721
Cash at bank and in hand
666,356
707,001
7,290,208
7,015,590
Creditors: amounts falling due within one year
14
(5,674,011)
(5,350,514)
Net current assets
1,616,197
1,665,076
Total assets less current liabilities
2,328,454
2,505,754
Creditors: amounts falling due after more than one year
15
(77,322)
(316,939)
Provisions for liabilities
Deferred tax liability
18
172,781
204,058
(172,781)
(204,058)
Net assets
2,078,351
1,984,757
Capital and reserves
Called up share capital
20
219
219
Share premium account
11,309
11,309
Capital redemption reserve
50
50
Profit and loss reserves
2,066,773
1,973,179
Total equity
2,078,351
1,984,757

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 16 July 2025 and are signed on its behalf by:
Mr M N Sharman
Director
Company registration number 03088906 (England and Wales)
IMPACT RETAIL LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 OCTOBER 2024
- 9 -
Share capital
Share premium account
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 November 2022
219
11,309
50
1,775,508
1,787,086
Year ended 31 October 2023:
Profit and total comprehensive income
-
-
-
762,449
762,449
Dividends
9
-
-
-
(564,778)
(564,778)
Balance at 31 October 2023
219
11,309
50
1,973,179
1,984,757
Year ended 31 October 2024:
Profit and total comprehensive income
-
-
-
477,991
477,991
Dividends
9
-
-
-
(384,397)
(384,397)
Balance at 31 October 2024
219
11,309
50
2,066,773
2,078,351
IMPACT RETAIL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024
- 10 -
1
Accounting policies
Company information

Impact Retail Limited is a private company limited by shares incorporated in England and Wales. The registered office is Unit 3 Meridian South, Meridian Business Park, Leicester, LE19 1WY.

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.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

 

1.2
Going concern

The company finances its operations by means of an invoice discounting facility and other short-term loans. The directors are not aware of any reason why the invoice discounting facility will not be maintained at its current level.true

 

As a result the directors have continued to adopt the going concern basis in preparing the financial statements.

1.3
Turnover

Turnover comprises revenue recognised by the company in respect of goods and services supplied during the year, exclusive of Value Added Tax and trade discounts.

 

Revenue is recognised at the point of delivery.

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.

1.5
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:

Plant and machinery
10% - 14.29% straight line
Fixtures, fittings & equipment
10% straight line
Motor vehicles
20% straight line
IMPACT RETAIL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 11 -

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.

1.6
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.

1.7
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.

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.

1.8
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.

1.9
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.

IMPACT RETAIL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 12 -
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.

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. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

1.10
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.

1.11
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

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.

IMPACT RETAIL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 13 -
1.12
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 employees' 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.

1.13
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.14
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to the profit and loss account on a straight line basis over the life of the finance lease obligation.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

1.15
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

1.16

Long term contracts

Amounts recoverable on long term contracts, which are included in debtors, are stated at the net sales value of the work done after provision for contingencies and anticipated future losses on contracts, less amounts received as progress payments on account. Excess progress payments are included in creditors as payments on account.

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying 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.

IMPACT RETAIL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
2
Judgements and key sources of estimation uncertainty
(Continued)
- 14 -
Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

WIP profit recognition

The recognition of profit on jobs which are work in progress is considered to be a key accounting estimate and is assessed by management across all jobs for monthly management accounts reporting purposes.

Carriage accruals

The assessments of accruals to be made for monthly carriage charges is considered to be a key accounting estimate as there can be considerable delays between making provision for the accruals estimates and receipt of actual invoices, for which reconciliations between these amounts are often required to be made by management.

3
Turnover

An analysis of the company's turnover is as follows:

2024
2023
£
£
Turnover analysed by class of business
Design and supply of point of sale display materials
13,195,038
14,064,938
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
12,082,775
12,777,929
Rest of European Union
941,641
1,081,603
Rest of World
170,622
205,406
13,195,038
14,064,938
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses
25,893
28,812
Fees payable to the company's auditor for the audit of the company's financial statements
15,000
15,000
Depreciation of owned tangible fixed assets
87,459
71,135
Depreciation of tangible fixed assets held under finance leases
135,786
134,255
Profit on disposal of tangible fixed assets
-
(11,040)
Operating lease charges
281,276
226,164
IMPACT RETAIL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 15 -
5
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2024
2023
Number
Number
Production and design
61
65
Administration and selling
44
36
Total
105
101

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
4,039,296
3,899,716
Social security costs
351,446
340,544
Pension costs
126,890
107,976
4,517,632
4,348,236
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
46,342
31,735
Company pension contributions to defined contribution schemes
12,000
11,935
58,342
43,670

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 3 (2023 - 3).

7
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
124,046
111,346
Interest on finance leases and hire purchase contracts
26,012
22,661
150,058
134,007
8
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
215,310
247,311
IMPACT RETAIL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
8
Taxation
2024
2023
£
£
(Continued)
- 16 -
Deferred tax
Origination and reversal of timing differences
(31,277)
(2,368)
Total tax charge
184,033
244,943

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
662,024
1,007,392
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 25.00%)
165,506
251,848
Tax effect of expenses that are not deductible in determining taxable profit
18,527
21,190
Effect of change in corporation tax rate
-
0
(27,262)
Enhanced capital allowances claimed
-
0
(833)
Taxation charge for the year
184,033
244,943
9
Dividends
2024
2023
£
£
Interim paid
384,397
564,778
10
Intangible fixed assets
Goodwill
£
Cost
At 1 November 2023 and 31 October 2024
16,337
Amortisation and impairment
At 1 November 2023 and 31 October 2024
16,337
Carrying amount
At 31 October 2024
-
0
At 31 October 2023
-
0
IMPACT RETAIL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 17 -
11
Tangible fixed assets
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
Cost
At 1 November 2023
1,270,070
310,681
138,304
1,719,055
Additions
20,000
74,824
-
0
94,824
At 31 October 2024
1,290,070
385,505
138,304
1,813,879
Depreciation and impairment
At 1 November 2023
661,142
179,327
37,908
878,377
Depreciation charged in the year
133,113
64,811
25,321
223,245
At 31 October 2024
794,255
244,138
63,229
1,101,622
Carrying amount
At 31 October 2024
495,815
141,367
75,075
712,257
At 31 October 2023
608,928
131,354
100,396
840,678

Tangible fixed assets includes assets held under finance leases or hire purchase contracts, as follows:

2024
2023
£
£
Plant and machinery
351,671
462,135
Motor vehicles
75,074
100,396
426,745
562,531
12
Stocks
2024
2023
£
£
Raw materials and consumables
107,109
126,868
IMPACT RETAIL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 18 -
13
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
4,701,776
4,436,986
Gross amounts owed by contract customers
426,908
365,613
Corporation tax recoverable
38,930
38,930
Amounts owed by group undertakings
1,036,996
1,087,029
Other debtors
133,287
133,457
Prepayments and accrued income
178,846
119,706
6,516,743
6,181,721
14
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans and overdrafts
16
571,754
1,401,806
Obligations under finance leases
17
144,825
147,829
Other borrowings
16
169,342
-
0
Payments received on account
597,116
117,724
Trade creditors
2,509,187
2,086,857
Corporation tax
215,310
247,311
Other taxation and social security
509,139
429,577
Dividends payable
-
0
92,560
Other creditors
74,762
43,562
Accruals and deferred income
882,576
783,288
5,674,011
5,350,514
15
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans and overdrafts
16
-
0
94,792
Obligations under finance leases
17
77,322
222,147
77,322
316,939
IMPACT RETAIL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 19 -
16
Loans and overdrafts
2024
2023
£
£
Bank loans
-
0
181,148
Bank overdrafts
571,754
1,315,450
Other loans
169,342
-
0
741,096
1,496,598
Payable within one year
741,096
1,401,806
Payable after one year
-
0
94,792

The company's banking and invoice discounting facilities are secured by debentures with a first charge over all of the assets of the company in favour of the company's bankers, Barclays Bank plc. In addition, there are cross guarantees in place between all group companies.

 

Included within the bank loans and overdrafts is an amount of £571,754 (2023 - £1,315,450) secured on the company's sales ledger balances.

 

The remaining balances within the bank loans and overdrafts of £nil (2023 - £181,148) represented advances made under the Government backed CBILS scheme.

 

Other borrowings represent a short-term loan received from Premium Credit Limited.

17
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
144,825
147,829
In two to five years
77,322
222,147
222,147
369,976

Finance lease payments represent rentals payable by the company for certain items of plant and machinery and motor vehicles. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. Finance leases are secured on the assets concerned.

18
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
172,781
204,058
IMPACT RETAIL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
18
Deferred taxation
(Continued)
- 20 -
2024
Movements in the year:
£
Liability at 1 November 2023
204,058
Credit to profit or loss
(31,277)
Liability at 31 October 2024
172,781
19
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
126,890
107,976

The company operates defined contribution pension schemes for all qualifying employees. The assets of the schemes are held separately from those of the company in independently administered funds.

20
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
219
219
219
219
21
Financial commitments, guarantees and contingent liabilities

The company is party to a cross guarantee given to Barclays Bank plc with Impact Creative Group Limited, limited to all monies due from the parties to Barclays Bank plc. As at 31 October 2024, the total amount outstanding to Barclays Bank plc from the parties was £571,754 (2023 - £1,315,450).

22
Operating lease commitments
As lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2024
2023
£
£
Within 1 year
244,000
267,633
Years 2-5
850,000
850,000
After 5 years
619,792
832,292
1,713,792
1,949,925
IMPACT RETAIL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 21 -
23
Directors' transactions

During the year rents and expenses of £12,000 (2023 - £12,000) and £3,674 (2023 - £2,358) respectively were paid in respect of a property owned by one of the company's directors.

Advances or credits have been granted by the company to its directors as follows:

Description
% Rate
Opening balance
Amounts advanced
Amounts repaid
Closing balance
£
£
£
£
Mr M N Sharman - Director's loan
-
96,398
13,795
(13,965)
96,228
Mr S Underwood - Director's loan
-
12,073
-
-
12,073
108,471
13,795
(13,965)
108,301

The maximum overdrawn balances on the above loans during the year were £96,398 and £12,073 respectively.

 

24
Ultimate controlling party

The company is ultimately controlled by its directors by virtue of their shareholdings in the parent company, Impact Creative Group Limited, a company registered in England and Wales.

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