Company registration number 03458718 (England and Wales)
C.GARS LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2024
C.GARS LTD
COMPANY INFORMATION
Directors
F Dechamps
A Swain
(Appointed 14 August 2025)
Company number
03458718
Registered office
18 Kingsgate Place
London
NW6 4TA
Auditor
Gerald Edelman LLP
73 Cornhill
London
EC3V 3QQ
C.GARS LTD
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Notes to the financial statements
11 - 23
C.GARS LTD
STRATEGIC REPORT
FOR THE PERIOD ENDED 31 DECEMBER 2024
- 1 -

The directors present the strategic report for the period ended 31 December 2024.

Review of the business

Turnover has increased by £1.6m, representing a 7.3% rise compared to 2023. The directors continue to ascribe the success in increasing the turnover to the company policy of providing a luxury retail lifestyle experience and focus on high quality, readily available stocks, combined with carefully planned growth in locations.

The directors consider the gross profit margin to be a key performance indicator, which has slight increased to 35.3% (2023 35.1%). The c ompany continues to benefit from increased buying power, in order to improve cost prices and margins. The business s continues to monitor staff numbers and employs an experienced team who are managing the business in a manner that ensures the company will perform profitably and provide high quality products to its’ customers.

Principal risks and uncertainties

The risk implications of business decisions affecting the company are considered by the directors. The director assesses these risks on a regular basis to ensure that any risks arising from changes in the company’s operations to the external environment are identified and appropriately managed. The individual risks have been categorised into the following areas:

- Taxation

- Financing

- Economic climate

- Health and Safety

- Laws and Regulations

- Inflation and energy cost

The nature of the specific risk areas and related controls are as follows:

Taxation risk

The company is exposed to financial risks from increases in tax rates and changes to the basis of taxation including corporation tax and VAT. The directors are regularly monitoring the impact of the increase in taxes on the company financial forecast.

Financing risk

The company’s principal financial instrument is cash. The main purpose of this instrument is to manage the company’s funding and liquidity requirements. The company has other financial assets and liabilities such as trade debtors and trade creditors, which arise directly from its operations.

In addition to this the company currently has a Revolving Credit Facility with HSBC and fully compliant with the covenants and loan repayment requirements. There are no indications that there are any liquidity issues.

Health and safety

Health and safety are taken as a priority by the company. The risk of non-compliance with health and safety legislation is minimised through training, development and review policies and procedures to maintain higher standards.

Laws and regulations

Laws and regulations are taken seriously by the company. This largely relates to sales to under 18 year olds being strictly prohibited. The risk of non-compliance is minimised through all websites requiring customers to confirm they are over the age of 18 and providing identification where this is legally required on sales of certain products.

Inflation and energy cost

The company's turnover and profit margins were not significantly impacted by the effect of rising inflation and energy cost. The company continued to capitalise on the influx of online and in-store sales.

C.GARS LTD
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2024
- 2 -

On behalf of the board

F Dechamps
Director
15 September 2025
C.GARS LTD
DIRECTORS' REPORT
FOR THE PERIOD ENDED 31 DECEMBER 2024
- 3 -

The directors present their annual report and financial statements for the period ended 31 December 2024.

Principal activities

The principal activity of the company continued to be that of selling tobacco products, accessories and premium spirits.

Results and dividends

The results for the period are set out on page 8.

Ordinary dividends were paid amounting to £423,934. The directors do not recommend payment of a final dividend.

Directors

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

M Orchant
(Resigned 14 August 2025)
L Bitters
(Resigned 6 August 2024)
F Dechamps
A Swain
(Appointed 14 August 2025)
Auditor

The auditor, Gerald Edelman LLP, 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:

- select suitable accounting policies and then apply them consistently;

- make judgements and accounting estimates that are reasonable and prudent; and

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The 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.

C.GARS LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2024
- 4 -
Going concern

Having reviewed the company's financial forecasts and expected future cash flows, the director s ha ve a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future, a period of not less than 12 months from the date of signing these financial statements. Accordingly, the going concern basis has been adopted in preparing the financial statements for the year ended 31 December 202 4.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
F Dechamps
Director
15 September 2025
C.GARS LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF C.GARS LTD
- 5 -
Opinion

We have audited the financial statements of C.Gars Ltd (the 'company') for the period ended 31 December 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:

- give a true and fair view of the state of the company's affairs as at 31 December 2024 and of its profit for the period then ended;

- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

- have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor'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:

- the information given in the strategic report and the directors' r eport for the financial period 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.

C.GARS LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF C.GARS LTD (CONTINUED)
- 6 -
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 identifie d material misstatements in the strategic report or the directors' r eport.

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

- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

- the financial statements are not in agreement with the accounting records and returns; or

- certain disclosures of 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' r esponsibilities s tatement, 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.

We planned our audit so that we have a reasonable expectation of detecting material misstatements in the financial statements resulting from irregularities, fraud or non-compliance with law or regulations.

The extent to which the audit was considered capable of detecting irregularities including fraud

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

- The engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations.

- Enquiring of management of whether they are aware of any non-compliance with laws and regulations.

- Enquiring of management whether they have knowledge of any actual, suspected or alleged fraud.

- Enquiring of management their internal controls established to mitigate risk related to fraud or non-compliance with laws and regulations.

- Discussions amongst the engagement team on how and where fraud might occur in the financial statements and any potential indicators of fraud. As part of this discussion, we identified potential for fraud in posting of unusual journals, revenue cut off risk due to undelivered items and the theft or misappropriation of stock.

- Obtaining understanding of the legal and regulatory framework the company operates in focusing on those laws and regulations that had a direct effect on the financial statements or that had a fundamental effect on the operations. The key laws and regulations we considered in this context included UK Companies Act, tax legislation, employment law, Health and Safety, GDPR and age restrictions on items being sold.

C.GARS LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF C.GARS LTD (CONTINUED)
- 7 -

Audit response to risks identified

Fraud risks

To address the risk of fraud identified above, we:

- Performed analytical procedures to identify any unusual or unexpected relationships.

- Auditing the risk of management override of controls, including through testing journal entries for appropriateness.

- Performed a stocktake where we observed the internal controls in place.

- Cut-off testing was performed on revenue to ensure sales were recorded in the correct period.

- Assessed whether judgments and assumptions made in determining the accounting estimates set out in note 2 were indicative of potential bias.

Irregularities and non-compliance with laws and regulations

In response to the risk of irregularities and non compliance with laws and regulations, we designed procedures which included, but are not limited to:

- Agreeing financial statements disclosures to underlying supporting documentation.

- Enquiring of management as to actual and potential litigation claims.

- Enquiring of management how they enforce age restrictions when selling items.

The test nature and other inherent limitations of an audit, together with the inherent limitations of any accounting and internal control system, mean that there is an unavoidable risk that even some material misstatements in respect of irregularities may remain undiscovered even though the audit is properly planned and performed in accordance with ISAs (UK). Furthermore, the more removed that laws and regulations are from financial transactions, the less likely that we would become aware of non-compliance. Our examination should therefore not be relied upon to disclose all such material misstatements or frauds, errors or instances of non-compliance that might exist. The responsibility for safeguarding the assets of the company and for the prevention and detection of fraud, error and non-compliance with law or regulations rests with the directors.

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.

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.

Hiten Patel FCCA (Senior Statutory Auditor)
For and on behalf of Gerald Edelman LLP, Statutory Auditor
Chartered Accountants
73 Cornhill
London
EC3V 3QQ
15 September 2025
C.GARS LTD
STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 31 DECEMBER 2024
- 8 -
Year
Year
ended
ended
31 December
31 December
2024
2023
Notes
£
£
Turnover
3
23,851,311
22,221,430
Cost of sales
(15,421,047)
(14,421,891)
Gross profit
8,430,264
7,799,539
Administrative expenses
(7,548,836)
(6,514,323)
Other operating income
19,842
-
0
Operating profit
4
901,270
1,285,216
Interest receivable and similar income
8
8,602
4,703
Interest payable and similar expenses
9
(183,517)
(125,399)
Profit before taxation
726,355
1,164,520
Tax on profit
10
(358,875)
(342,201)
Profit for the financial period
367,480
822,319

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

C.GARS LTD
BALANCE SHEET
AS AT 31 DECEMBER 2024
31 December 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
12
14,941
11,894
Tangible assets
13
2,384,806
2,690,823
Investments
14
100
100
2,399,847
2,702,817
Current assets
Stocks
15
6,748,968
6,651,437
Debtors
16
1,423,171
1,169,940
Cash at bank and in hand
1,051,747
854,475
9,223,886
8,675,852
Creditors: amounts falling due within one year
17
(6,238,017)
(6,040,245)
Net current assets
2,985,869
2,635,607
Total assets less current liabilities
5,385,716
5,338,424
Provisions for liabilities
Deferred tax liability
19
306,257
202,511
(306,257)
(202,511)
Net assets
5,079,459
5,135,913
Capital and reserves
Called up share capital
21
76
76
Profit and loss reserves
5,079,383
5,135,837
Total equity
5,079,459
5,135,913

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 15 September 2025 and are signed on its behalf by:
F Dechamps
Director
Company registration number 03458718 (England and Wales)
C.GARS LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 DECEMBER 2024
- 10 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 January 2023
76
4,313,518
4,313,594
Period ended 31 December 2023:
Profit and total comprehensive income
-
822,319
822,319
Balance at 31 December 2023
76
5,135,837
5,135,913
Period ended 31 December 2024:
Profit and total comprehensive income
-
367,480
367,480
Dividends
11
-
(423,934)
(423,934)
Balance at 31 December 2024
76
5,079,383
5,079,459
C.GARS LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2024
- 11 -
1
Accounting policies
Company information

C.Gars Ltd is a private company limited by shares incorporated in England and Wales. The registered office is 18 Kingsgate Place, London, NW6 4TA.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary a mounts in these financial statements are rounded to the nearest £.

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. T he company has therefore taken advantage of e xemptions from the following disclosure requirements:

- Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;

- Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;

- Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;

- Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.

The financial statements of the company are consolidated in the financial statements of Dominique London NV. These consolidated financial statements are available from its registered office: Dominique London NV, Henri Lebbestraat 188, B-8790 Waregem, Belgium.

The company has taken advantage of the exemption under section 401 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group.

1.2
Going concern

A true t the time of approving the financial statements, t he directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus t he directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer, the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

C.GARS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 12 -
1.4
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

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

Patents & licences
Straight line over 5 years
1.5
Tangible fixed assets

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

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

Freehold land and buildings
Nil
Leasehold land and buildings
2% on cost
Leasehold improvements
Over term of lease
Plant and equipment
25% on cost

Freehold land and buildings are not depreciated, and any charge for depreciation would not be material based upon an assessment of the building's useful life and residual value. Management considers that the residual value at the end of its useful economic life will not be less than its present carrying value.

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
Fixed asset investments

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.7
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.

C.GARS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 13 -

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.8
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises finished goods and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.9
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.

1.10
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.

C.GARS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 14 -
Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future paymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. A m ounts 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.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.11
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.

1.12
Taxation

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

C.GARS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 15 -
Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.13
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.14
Retirement benefits

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

1.15
Leases

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 lease s asset are consumed.

1.16
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.

C.GARS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2024
- 16 -
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.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Stock provision

The value of stock is based on the lower of cost and net realisable value is subject to estimations on the ultimate selling price in the market and cost valuation. When calculating the stock provision, management considers the nature and condition of the stock, as well as applying assumptions around anticipated saleability, cost and future usage.

C.GARS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2024
- 17 -
3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Cigars, accessories & alcoholic beverages
23,851,311
22,221,430
2024
2023
£
£
Other revenue
Interest income
8,602
4,703

The revenue was fully attributable to the UK.

4
Operating profit
2024
2023
Operating profit for the period is stated after charging:
£
£
Depreciation of owned tangible fixed assets
546,604
402,287
Amortisation of intangible assets
4,518
6,216
Operating lease charges
385,750
327,691
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
42,000
33,000
For other services
Taxation compliance services
1,500
1,500
6
Employees

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

2024
2023
Number
Number
Sales staff
121
119
C.GARS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2024
6
Employees
(Continued)
- 18 -

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
3,429,985
2,982,066
Social security costs
312,291
269,321
Pension costs
50,709
43,860
3,792,985
3,295,247
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
193,722
224,571
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
n/a
149,696

As total directors' remuneration was less than £200,000 in the current period, no disclosure is provided for that period.

8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
8,602
4,703
9
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
183,517
125,329
Other interest on financial liabilities
-
0
70
183,517
125,399
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
255,129
182,411
C.GARS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2024
10
Taxation
2024
2023
£
£
(Continued)
- 19 -
Deferred tax
Origination and reversal of timing differences
103,746
159,790
Total tax charge
358,875
342,201

The actual charge for the period can be reconciled to the expected charge for the period based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
Profit before taxation
726,355
1,164,520
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 23.52%)
181,589
273,895
Tax effect of expenses that are not deductible in determining taxable profit
3,510
11,755
Permanent capital allowances in excess of depreciation
(66,737)
(185,691)
Depreciation on assets not qualifying for tax allowances
136,651
94,620
Other differences
116
(12,168)
Deferred tax charge
103,746
159,790
Taxation charge for the period
358,875
342,201
11
Dividends
2024
2023
£
£
Interim paid
423,934
-
0
C.GARS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2024
- 20 -
12
Intangible fixed assets
Patents & licences
£
Cost
At 1 January 2024
33,573
Additions - internally developed
7,565
At 31 December 2024
41,138
Amortisation and impairment
At 1 January 2024
21,679
Amortisation charged for the period
4,518
At 31 December 2024
26,197
Carrying amount
At 31 December 2024
14,941
At 31 December 2023
11,894
13
Tangible fixed assets
Freehold land and buildings
Leasehold land and buildings
Leasehold improvements
Plant and equipment
Total
£
£
£
£
£
Cost
At 1 January 2024
297,161
902,138
1,120,154
1,503,277
3,822,730
Additions
-
0
-
0
136,204
104,383
240,587
Disposals
-
0
-
0
(153,274)
(389,562)
(542,836)
At 31 December 2024
297,161
902,138
1,103,084
1,218,098
3,520,481
Depreciation and impairment
At 1 January 2024
-
0
108,003
334,627
689,277
1,131,907
Depreciation charged in the period
-
0
18,043
212,145
316,416
546,604
Eliminated in respect of disposals
-
0
-
0
(153,274)
(389,562)
(542,836)
At 31 December 2024
-
0
126,046
393,498
616,131
1,135,675
Carrying amount
At 31 December 2024
297,161
776,092
709,586
601,967
2,384,806
At 31 December 2023
297,161
794,135
785,527
814,000
2,690,823
C.GARS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2024
- 21 -
14
Fixed asset investments
2024
2023
£
£
Unlisted investments
100
100
15
Stocks
2024
2023
£
£
Finished goods and goods for resale
6,748,968
6,651,437
16
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
440,548
483,733
Amounts owed by group undertakings
683,205
407,958
Other debtors
181,491
155,051
Prepayments and accrued income
117,927
123,198
1,423,171
1,169,940
17
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans
18
2,400,000
1,832,425
Trade creditors
2,151,894
2,908,219
Amounts owed to group undertakings
1,621
100
Corporation tax
163,308
32,298
Other taxation and social security
342,291
146,420
Other creditors
864,791
771,090
Accruals and deferred income
314,112
349,693
6,238,017
6,040,245
18
Loans and overdrafts
2024
2023
£
£
Bank loans
2,400,000
1,832,425
Payable within one year
2,400,000
1,832,425
C.GARS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2024
18
Loans and overdrafts
(Continued)
- 22 -

The banks loans and overdrafts are secured by a fixed and floating charge over all the assets of the company.

In 2022, the company obtained £3.5m of Revolving Credit Facility (RCF) and had utilised £2.4m by 31 December 202 4. The facility is repayable within 6 months from the date of withdrawal. The interest rate on RCF will be 7.25% and the maturity date for the facility is June 2028.

19
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
306,257
202,511
2024
Movements in the period:
£
Liability at 1 January 2024
202,511
Charge to profit or loss
103,746
Liability at 31 December 2024
306,257

The above deferred tax liability relates to temporary timing differences on fixed assets. The expected reversal over the next 12 months equates to £127,000, and relates to the partial reversal of this temporary difference.

20
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
50,709
43,860

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

21
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary Shares of 10p each
760
760
76
76
C.GARS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2024
- 23 -
22
Operating lease commitments
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 one year
367,785
335,539
Between two and five years
1,262,483
1,143,041
In over five years
985,904
2,671,359
2,616,173
4,149,939
23
Related party transactions

The company has taken advantage of the exemption under paragraph 33 of FRS 102 not to disclose transactions entered into between two or more members of a group where the subsidiary which is party to the transaction is wholly owned by the other party. The company is a wholly owned subsidiary undertaking of Dominique London NV which is the other party to the transactions.

During the year the company entered into the following transactions with non-group entities:

£75,050 (2023 - £64,800) of rent paid to H a vana Cigars Ltd, a company owned by the shareholder Mr M Orchant.

£16,470 (20 23 - £16,425) was paid to "Septembers", a small rental entity owned by Mr & Mrs Orchant. Included in creditors is £nil (2023 - £1,395) payable to Septembers.

Included in other creditors is £361 (202 3 - £361) due to Mr M Orchant, the director of the company, which is non interest bearing and repayable upon demand.

24
Ultimate controlling party

The parent company is Dominique London NV, a company incorporated in Belgium. The registered office of Dominique London NV is Henri Lebbestraat 188. B -8790 Waregem, Belgium.

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