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COMPANY REGISTRATION NUMBER: 01933854
Canary Trading Company Limited
Financial Statements
31 March 2024
Canary Trading Company Limited
Financial Statements
Year ended 31 March 2024
Contents
Page
Strategic report
1
Directors' report
3
Independent auditor's report to the members
5
Consolidated statement of income and retained earnings
9
Company statement of income and retained earnings
10
Consolidated statement of financial position
11
Company statement of financial position
12
Consolidated statement of cash flows
13
Notes to the financial statements
14
Canary Trading Company Limited
Strategic Report
Year ended 31 March 2024
The directors present their annual report and financial statements for the period ended 31 March 2024 The principal activity of the group in the year under review was that of the operation of a chain of Pharmacies . Fair review of the business The group achieved a substantial increase in turnover in the year to £13,254,392 compared to £11,065,922. Although the group made a pretax loss of £681,372 this was due to certain stores being loss making business units and the directors have taken steps since the year end to significantly improve the financial performance of the stores. The financial year consisted of wider pressures surrounding flattened NHS remuneration and high interest rates which affect both margins and profitability. Turnover increased from £11.06m the previous year to £13.25m this year due to strategic acquisitions, which are expected to increase profitability in upcoming years particularly if interest rates continue to fall and following a new NHS settlement agreed. We consider that our key financial performance indicators are as follows;
2024 2023
£ £
Revenue 13,254,392 11,065,922
Gross Profit 2,879,566 2,983,886
Gross Margin % 22 27
Net Profit 112,550
Net Loss 681,372
Net Assets 1,312,118 2,012,409
Principal risks and uncertainties The business faces daily risks and uncertainties. The careful management of risk is crucial to the group's business. The group continually reviews and analyses its controls to ensure they are fit for purpose. The Board measures progress through the review of key performance indicators and other relevant management information. Principal risks are reviewed by the Board on a regular basis and necessary action is taken. Monthly business review meetings held by the senior management team review all business risk and ensure that action is taken at all levels to ensure controls and remediations are in place.
This report was approved by the board of directors on 19 August 2025 and signed on behalf of the board by:
Mr A Mansour
Director
Registered office:
9 Lydford Road
London
NW2 5QY
Canary Trading Company Limited
Directors' Report
Year ended 31 March 2024
The directors present their report and the financial statements of the group for the year ended 31 March 2024 .
Directors
The directors who served the company during the year were as follows:
Mr A Mansour
Mr M Mansour
Dividends
The directors do not recommend the payment of a dividend.
Directors' responsibilities statement
The directors are responsible for preparing the strategic report, directors' 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 group and the company and 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 judgments and accounting estimates that are reasonable and prudent; - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Auditor
Each of the persons who is a director at the date of approval of this report confirms that:
- so far as they are aware, there is no relevant audit information of which the group and the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the group and the company's auditor is aware of that information.
This report was approved by the board of directors on 19 August 2025 and signed on behalf of the board by:
Mr A Mansour
Director
Registered office:
9 Lydford Road
London
NW2 5QY
Canary Trading Company Limited
Independent Auditor's Report to the Members of Canary Trading Company Limited
Year ended 31 March 2024
Qualified opinion
We have audited the financial statements of Canary Trading Company Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2024 which comprise the consolidated statement of income and retained earnings, company statement of income and retained earnings, consolidated statement of financial position, company statement of financial position, consolidated statement of cash flows and the related notes, 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 FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion, except for the effects of the matter described in the basis for qualified opinion section of our report, the financial statements: - give a true and fair view of the state of the group's and of the parent company's affairs as at 31 March 2024 and of the group's loss for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; - have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for qualified opinion
We were not appointed as auditors of the Group until after the year ended 31 March 2024. The accounts for the year ended 31 March 2023 were not audited. Consequently,the opening balances as at 1 April 2023 were not audited. We were unable to obtain sufficient appropriate audit evidence regarding the opening balances due to inadequate supporting documentation. Consequently, we were unable to determine whether any adjustments were necessary in respect of the opening statement of financial position as at 1 April 2023. In addition, we were unable to determine that revenue was free from material misstatement due to inadequate records.
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 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 qualified 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 or 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 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. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of 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 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: - 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 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 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.
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. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: - Enquiry of management with regard to actual and potential fraud and non-compliance with laws and regulations; - Reviewing legal correspondence and correspondence with regard to potential fraud and non compliance with laws and regulations; - Understanding and evaluating the company's internal controls; - Testing of journal entries that were deemed unusual; - Assessing financial statement disclosures, and testing to supporting documentation, for compliance with applicable laws and regulations. There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentation or through collusion. As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also: - Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the group's internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. - Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the group's or the parent company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the group or the parent company to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. - Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. 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.
Mark Illingsworth BA FCA
(Senior Statutory Auditor)
For and on behalf of
Versant Associates LLP
Chartered accountants & statutory auditor
The Old Mill,
9 Soar Lane
Leicester
LE3 5DE
20 August 2025
Canary Trading Company Limited
Consolidated Statement of Income and Retained Earnings
Year ended 31 March 2024
2024
2023
(restated)
Note
£
£
Turnover
4
13,254,392
11,065,922
Cost of sales
10,374,826
8,082,036
-------------
-------------
Gross profit
2,879,566
2,983,886
Distribution costs
17,644
19,042
Administrative expenses
3,157,172
2,743,764
Other operating income
5
125,299
73,208
------------
------------
Operating (loss)/profit
6
( 169,951)
294,288
Loss on impairment or disposal of operations
( 35,240)
Other interest receivable and similar income
10
545
Interest payable and similar expenses
11
476,181
182,283
------------
------------
(Loss)/profit before taxation
( 681,372)
112,550
Tax on (loss)/profit
12
18,919
79,587
---------
---------
(Loss)/profit for the financial year and total comprehensive income
( 700,291)
32,963
---------
---------
Retained earnings at the start of the year
1,812,409
1,779,446
------------
------------
Retained earnings at the end of the year
1,112,118
1,812,409
------------
------------
All the activities of the group are from continuing operations.
Canary Trading Company Limited
Company Statement of Income and Retained Earnings
Year ended 31 March 2024
2024
2023
(restated)
Note
£
£
(Loss)/profit for the financial year and total comprehensive income
( 501,860)
( 9,396)
Retained earnings at the start of the year
991,649
1,001,045
---------
------------
Retained earnings at the end of the year
489,789
991,649
---------
------------
Canary Trading Company Limited
Consolidated Statement of Financial Position
31 March 2024
2024
2023
(restated)
Note
£
£
Fixed assets
Intangible assets
13
6,455,914
5,456,012
Tangible assets
14
2,502,767
2,138,173
------------
------------
8,958,681
7,594,185
Current assets
Stocks
16
1,003,617
754,159
Debtors
17
1,324,828
1,406,351
Cash at bank and in hand
1,091,807
3,235,753
------------
------------
3,420,252
5,396,263
Creditors: amounts falling due within one year
18
4,663,121
4,282,546
------------
------------
Net current (liabilities)/assets
( 1,242,869)
1,113,717
------------
------------
Total assets less current liabilities
7,715,812
8,707,902
Creditors: amounts falling due after more than one year
19
6,392,564
6,688,772
Provisions
20
11,130
6,721
------------
------------
Net assets
1,312,118
2,012,409
------------
------------
Capital and reserves
Called up share capital
23
200,000
200,000
Profit and loss account
1,112,118
1,812,409
------------
------------
Shareholders funds
1,312,118
2,012,409
------------
------------
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the medium companies regime.
These financial statements were approved by the board of directors and authorised for issue on 19 August 2025 , and are signed on behalf of the board by:
Mr A Mansour
Director
Company registration number: 01933854
Canary Trading Company Limited
Company Statement of Financial Position
31 March 2024
2024
2023
(restated)
Note
£
£
Fixed assets
Intangible assets
13
511,643
611,429
Tangible assets
14
2,441,931
2,121,896
Investments
15
3,773,753
3,773,753
------------
------------
6,727,327
6,507,078
Current assets
Stocks
16
157,787
200,388
Debtors
17
2,537,156
2,827,691
Cash at bank and in hand
922,685
1,990,789
------------
------------
3,617,628
5,018,868
Creditors: amounts falling due within one year
18
3,262,602
3,641,372
------------
------------
Net current assets
355,026
1,377,496
------------
------------
Total assets less current liabilities
7,082,353
7,884,574
Creditors: amounts falling due after more than one year
19
6,392,564
6,688,772
Provisions
4,151
------------
------------
Net assets
689,789
1,191,651
------------
------------
Capital and reserves
Called up share capital
23
200,000
200,002
Profit and loss account
489,789
991,649
---------
------------
Shareholders funds
689,789
1,191,651
---------
------------
The loss for the financial year of the parent company was £ 501,860 (2023: £ 9,396 ).
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the medium companies regime.
These financial statements were approved by the board of directors and authorised for issue on 19 August 2025 , and are signed on behalf of the board by:
Mr A Mansour
Director
Company registration number: 01933854
Canary Trading Company Limited
Consolidated Statement of Cash Flows
Year ended 31 March 2024
2024
2023
(restated)
£
£
Cash flows from operating activities
(Loss)/profit for the financial year
( 700,291)
32,963
Adjustments for:
Depreciation of tangible assets
16,185
8,824
Amortisation of intangible assets
434,066
410,514
Other interest receivable and similar income
( 545)
Interest payable and similar expenses
476,181
182,283
Loss on disposal of tangible assets
18,213
Gain on impairment or disposal of operations
35,240
Tax on (loss)/profit
18,919
79,587
Accrued expenses/(income)
93,144
( 14,534)
Changes in:
Stocks
( 249,458)
( 638,398)
Trade and other debtors
81,523
1,305,623
Trade and other creditors
354,657
611,890
---------
------------
Cash generated from operations
578,379
1,978,207
Interest paid
( 476,181)
( 182,283)
Interest received
545
Tax (paid)/received
( 104,094)
984
---------
------------
Net cash (used in)/from operating activities
( 1,896)
1,797,453
---------
------------
Cash flows from investing activities
Purchase of tangible assets
( 398,992)
( 1,497,611)
Purchase of intangible assets
( 1,469,208)
( 1,189,767)
------------
------------
Net cash used in investing activities
( 1,868,200)
( 2,687,378)
------------
------------
Cash flows from financing activities
Proceeds from borrowings
( 273,850)
2,034,936
------------
------------
Net cash (used in)/from financing activities
( 273,850)
2,034,936
------------
------------
Net (decrease)/increase in cash and cash equivalents
( 2,143,946)
1,145,011
Cash and cash equivalents at beginning of year
3,235,753
2,090,742
------------
------------
Cash and cash equivalents at end of year
1,091,807
3,235,753
------------
------------
Canary Trading Company Limited
Notes to the Financial Statements
Year ended 31 March 2024
1. General information
The company is a private company limited by shares, registered in England and Wales. The address of the registered office is 9 Lydford Road, London, NW2 5QY.
2. Statement of compliance
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.
The financial statements are prepared in sterling, which is the functional currency of the entity.
Going concern
After reviewing the company's forecasts and projections, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing its financial statements.
Disclosure exemptions
The Group has taken advantage of exemptions which are referred to in more detail in note 26.
Consolidation
The financial statements consolidate the financial statements of Canary Trading Company Limited and all of its subsidiary undertakings.
The results of subsidiaries acquired or disposed of during the year are included from or to the date that control passes.
The parent company has applied the exemption contained in section 408 of the Companies Act 2006 and has not presented its individual profit and loss account.
Judgements and key sources of estimation uncertainty
There were no areas in which the preparation of the financial statements required management to make significant judgements or estimates aside from those dealt with separately below.
Revenue recognition
Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax. Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably.
Income tax
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.
Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
Operating leases
Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.
Goodwill
Goodwill arises on business acquisitions and represents the excess of the cost of the acquisition over the company's interest in the net amount of the identifiable assets, liabilities and contingent liabilities of the acquired business. Goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. It is amortised on a straight-line basis over its useful life. Where a reliable estimate of the useful life of goodwill or intangible assets cannot be made, the life is presumed not to exceed ten years.
Amortisation
Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows:
Goodwill
-
5% straight line
If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.
Tangible assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Short leasehold property
-
10% straight line
Fixtures and fittings
-
20% reducing balance
Motor vehicles
-
25% reducing balance
Equipment
-
15 % straight line
Investments
Fixed asset investments are initially recorded at cost, and subsequently stated at cost less any accumulated impairment losses.
Listed investments are measured at fair value with changes in fair value being recognised in profit or loss.
Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets. For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units.
Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.
Provisions
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.
Financial instruments
A financial asset or a financial liability is recognised only when the company becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost. Where investments in non-convertible preference shares and non-puttable ordinary shares or preference shares are publicly traded or their fair value can otherwise be measured reliably, the investment is subsequently measured at fair value with changes in fair value recognised in profit or loss. All other such investments are subsequently measured at cost less impairment. Other financial instruments, including derivatives, are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Other financial instruments are subsequently measured at fair value, with any changes recognised in profit or loss, with the exception of hedging instruments in a designated hedging relationship.
Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately. For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics. Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
4. Turnover
Turnover arises from:
2024
2023
(restated)
£
£
Sale of goods
13,254,392
11,065,922
-------------
-------------
The whole of the turnover is attributable to the principal activity of the group wholly undertaken in the United Kingdom.
5. Other operating income
2024
2023
(restated)
£
£
Commission receivable
125,299
73,208
---------
--------
6. Operating profit
Operating profit or loss is stated after charging:
2024
2023
(restated)
£
£
Amortisation of intangible assets
434,066
410,514
Depreciation of tangible assets
16,185
8,814
Loss on disposal of tangible assets
18,213
---------
---------
7. Auditor's remuneration
2024
2023
(restated)
£
£
Fees payable for the audit of the financial statements
16,000
--------
----
8. Staff costs
The average number of persons employed by the group during the year, including the directors, amounted to:
2024
2023
No.
No.
Production staff
64
64
Administrative staff
74
59
----
----
138
123
----
----
The aggregate payroll costs incurred during the year, relating to the above, were:
2024
2023
(restated)
£
£
Wages and salaries
2,433,475
1,879,190
Other pension costs
24,688
28,210
------------
------------
2,458,163
1,907,400
------------
------------
9. Directors' remuneration
The directors' aggregate remuneration in respect of qualifying services was:
2024
2023
(restated)
£
£
Remuneration
24,000
32,560
--------
--------
10. Other interest receivable and similar income
2024
2023
(restated)
£
£
Interest on bank deposits
545
----
----
11. Interest payable and similar expenses
2024
2023
(restated)
£
£
Interest on banks loans and overdrafts
473,442
181,534
Interest payable
2,739
Other interest payable and similar charges
749
---------
---------
476,181
182,283
---------
---------
12. Tax on (loss)/profit
Major components of tax expense
2024
2023
(restated)
£
£
Current tax:
UK current tax expense
( 19,712)
76,756
Adjustments in respect of prior periods
34,222
--------
--------
Total current tax
14,510
76,756
--------
--------
Deferred tax:
Origination and reversal of timing differences
4,409
2,831
--------
--------
Tax on (loss)/profit
18,919
79,587
--------
--------
Reconciliation of tax expense
The tax assessed on the (loss)/profit on ordinary activities for the year is higher than (2023: higher than) the standard rate of corporation tax in the UK of 19 % (2023: 19 %).
2024
2023
(restated)
£
£
(Loss)/profit on ordinary activities before taxation
( 681,372)
112,550
---------
---------
(Loss)/profit on ordinary activities by rate of tax
( 129,461)
13,056
Adjustment to tax charge in respect of prior periods
34,222
( 2,567)
Effect of expenses not deductible for tax purposes
677
Effect of capital allowances and depreciation
64,671
66,530
Effect of revenue exempt from tax
( 29,450)
Utilisation of tax losses
2,568
Unused tax losses
78,260
---------
---------
Tax on (loss)/profit
18,919
79,587
---------
---------
13. Intangible assets
Group
Goodwill
£
Cost
At 1 April 2023 (as restated)
8,628,966
Additions
1,469,208
Disposals of previously acquired businesses
( 176,200)
------------
At 31 March 2024
9,921,974
------------
Amortisation
At 1 April 2023
3,172,954
Charge for the year
434,066
Disposals of previously acquired businesses
( 140,960)
------------
At 31 March 2024
3,466,060
------------
Carrying amount
At 31 March 2024
6,455,914
------------
At 31 March 2023
5,456,012
------------
Company
Goodwill
£
Cost
At 1 April 2023 (as restated) and 31 March 2024
938,523
---------
Amortisation
At 1 April 2023
379,954
Charge for the year
46,926
---------
At 31 March 2024
426,880
---------
Carrying amount
At 31 March 2024
511,643
---------
At 31 March 2023
558,569
---------
14. Tangible assets
Group
Freehold property
Short leasehold property
Fixtures and fittings
Motor vehicles
Equipment
Total
£
£
£
£
£
£
Cost
At 1 Apr 2023 (as restated)
2,095,625
108,892
457,779
3,650
163
2,666,109
Additions
341,308
57,273
411
398,992
Disposals
( 184,722)
( 184,722)
------------
---------
---------
-------
----
------------
At 31 Mar 2024
2,436,933
108,892
330,330
3,650
574
2,880,379
------------
---------
---------
-------
----
------------
Depreciation
At 1 Apr 2023
108,892
415,829
3,209
6
527,936
Charge for the year
16,022
110
53
16,185
Disposals
( 166,509)
( 166,509)
------------
---------
---------
-------
----
------------
At 31 Mar 2024
108,892
265,342
3,319
59
377,612
------------
---------
---------
-------
----
------------
Carrying amount
At 31 Mar 2024
2,436,933
64,988
331
515
2,502,767
------------
---------
---------
-------
----
------------
At 31 Mar 2023
2,095,625
41,950
441
157
2,138,173
------------
---------
---------
-------
----
------------
Company
Freehold property
Short leasehold property
Fixtures and fittings
Equipment
Total
£
£
£
£
£
Cost
At 1 April 2023 (as restated)
2,095,625
62,473
87,574
163
2,245,835
Additions
341,308
1,926
411
343,645
------------
--------
--------
----
------------
At 31 March 2024
2,436,933
62,473
89,500
574
2,589,480
------------
--------
--------
----
------------
Depreciation
At 1 April 2023
62,473
84,226
6
146,705
Charge for the year
791
53
844
------------
--------
--------
----
------------
At 31 March 2024
62,473
85,017
59
147,549
------------
--------
--------
----
------------
Carrying amount
At 31 March 2024
2,436,933
4,483
515
2,441,931
------------
--------
--------
----
------------
At 31 March 2023
2,095,625
3,348
157
2,099,130
------------
--------
--------
----
------------
15. Investments
The group has no investments.
Company
Shares in group undertakings
£
Cost
At 1 April 2023 as restated and 31 March 2024
3,773,753
------------
Impairment
At 1 April 2023 as restated and 31 March 2024
------------
Carrying amount
At 1 April 2023 and 31 March 2024
3,773,753
------------
At 31 March 2023
3,773,753
------------
Subsidiaries, associates and other investments
Details of the investments in which the parent company has an interest of 20% or more are as follows:
Class of share
Percentage of shares held
Subsidiary undertakings
Manor Pharmacy (Wheathampstead) Limited
Ordinary
100
MY Pharmacy Limited
Ordinary
100
16. Stocks
Group
Company
2024
2023
2024
2023
(restated)
(restated)
£
£
£
£
Raw materials and consumables
1,003,617
754,159
157,787
200,388
------------
---------
---------
---------
17. Debtors
Group
Company
2024
2023
2024
2023
(restated)
(restated)
£
£
£
£
Trade debtors
941,317
1,050,913
218,047
432,866
Amounts owed by group undertakings
2,211,032
2,245,141
Prepayments and accrued income
67,540
62,682
26,811
19,145
Other debtors
315,971
292,756
81,266
130,539
------------
------------
------------
------------
1,324,828
1,406,351
2,537,156
2,827,691
------------
------------
------------
------------
18. Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
(restated)
(restated)
£
£
£
£
Bank loans and overdrafts
334,157
348,852
334,157
348,852
Trade creditors
1,690,597
1,093,615
304,367
447,547
Amounts owed to group undertakings
100,000
2,190
Accruals and deferred income
115,161
22,017
82,311
7,667
Corporation tax
40,201
129,785
69,872
Social security and other taxes
33,148
19,384
4,025
3,223
Director loan accounts
2,429,518
2,392,465
2,429,518
2,641,807
Other creditors
20,339
276,428
8,224
120,214
------------
------------
------------
------------
4,663,121
4,282,546
3,262,602
3,641,372
------------
------------
------------
------------
19. Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
(restated)
(restated)
£
£
£
£
Bank loans and overdrafts
6,392,564
6,688,772
6,392,564
6,688,772
------------
------------
------------
------------
Included within creditors: amounts falling due after more than one year is an amount of £5,055,934 (2023: £5,293,363) for the group and £5,109,103 (2023: £5,293,363) for the company in respect of liabilities payable or repayable by instalments which fall due for payment after more than five years from the reporting date.
20. Provisions
Group
Deferred tax (note 21)
£
At 1 April 2023 (as restated)
6,721
Additions
8,560
Unused amounts reversed
( 4,151)
--------
At 31 March 2024
11,130
--------
The company does not have any provisions.
21. Deferred tax
The deferred tax included in the statement of financial position is as follows:
Group
Company
2024
2023
2024
2023
(restated)
(restated)
£
£
£
£
Included in provisions (note 20)
11,130
6,721
4,151
--------
-------
----
-------
The deferred tax account consists of the tax effect of timing differences in respect of:
Group
Company
2024
2023
2024
2023
(restated)
(restated)
£
£
£
£
Accelerated capital allowances
11,130
6,721
--------
-------
----
----
22. Employee benefits
Defined contribution plans
The amount recognised in profit or loss as an expense in relation to defined contribution plans was £ 24,688 (2023: £ 28,210 ).
23. Called up share capital
Issued, called up and fully paid
2024
2023
(restated)
No.
£
No.
£
Ordinary shares of £ 1 each
200,000
200,000
200,000
200,000
---------
---------
---------
---------
24. Analysis of changes in net debt
At 1 Apr 2023
Cash flows
At 31 Mar 2024
£
£
£
Cash at bank and in hand
3,235,753
(2,143,946)
1,091,807
Debt due within one year
(2,741,317)
(22,358)
(2,763,675)
Debt due after one year
(6,688,772)
296,208
(6,392,564)
------------
------------
------------
( 6,194,336)
( 1,870,096)
( 8,064,432)
------------
------------
------------
Canary Trading Company Limited
Notes to the Financial Statements (continued)
Year ended 31 March 2024
25. Operating leases
The total future minimum lease payments under non-cancellable operating leases are as follows:
Group
Company
2024
2023
2024
2023
(restated)
(restated)
£
£
£
£
Not later than 1 year
221,155
189,155
189,155
Later than 1 year and not later than 5 years
750,849
679,599
679,599
Later than 5 years
533,136
420,374
420,374
------------
------------
----
------------
1,505,140
1,289,128
1,289,128
------------
------------
----
------------
26. Related party transactions
Group
The Group has taken advantage of the exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose wholly related party transactions with wholly owned subsidiaries within the group.
Company
During the year the company was provided with an interest free loan from the directors of £2,429,518 (2023: £2,392,465).
27. Controlling party
The directors consider there is no controlling party