Registration number:
Imperial Cash & Carry Limited
for the Year Ended 31 December 2024
Imperial Cash & Carry Limited
Contents
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Company Information |
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Strategic Report |
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Directors' Report |
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Statement of Directors' Responsibilities |
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Independent Auditor's Report |
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Profit and Loss Account |
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Balance Sheet |
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Statement of Changes in Equity |
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Statement of Cash Flows |
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Notes to the Financial Statements |
Imperial Cash & Carry Limited
Company Information
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Directors |
Mr Manoher Ghanshamdas Mulchandani Mr Phatahchand Ghanshamdas Mulchandani |
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Company secretary |
Mr Manoher Ghanshamdas Mulchandani |
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Registered office |
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Accountants |
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Auditors |
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Imperial Cash & Carry Limited
Strategic Report for the Year Ended 31 December 2024
The directors present their strategic report for the year ended 31 December 2024.
Principal activity
The principal activity of the Company is that of wholesale distribution of drinks and related goods to the off licence trade.
Fair review of the business
The directors are satisfied with the Company's performance for the period ended 31 December 2024 and consider the financial position at that date to be satisfactory. The directors monitor performance by conducting a review of management information on a monthly basis using available information on the bookkeeping and sales systems.
The directors are actively seeking opportunities to expand their business and until such an opportunity has been identified, the Company has invested in short term investments which can be readily realised when required.
The company successfully completed 35 years of trading and to mark the occassion a charity dinner was held for key business relations.
In 2024 the Company's turnover decreased by 8.29% following an 1.39% increase in 2023.
The Company's gross profit margins have decreased to 8.42% from 8.45% in 2023 as the sales have decreased. The actual gross profit has reduced to £6.12 million this year from £6.69 million last year, based on the decrease in sales. The administrative and other costs which relate to the trading aspect of the business continue to be broadly in the ballpark to that seen in prior years.
The business is fortunate enough to have freehold premises to operate from which has helped combat the general increase in rental values in and around the London area. The Company also has a warehouse which it rents for additional storage for which the rent expenditure has remained at £101,826 per annum same as last years. The next rent review is being negotiated with the landlord and it is expetced that the market rate of rent will be applied, so we would expect this to increase in 2025. The overall establishment expenditure has increased which is prevalent across the country.
It was noted that insurance premiums have increased and look to be rising which needs to be monitored. The consultancy fees paid to the wealth managers has also increased and the directors have discussed this with the wealth managers to see if these costs can be reduced as it has a bearing on the company's profitability.
In 2023 the Company’s investment portfolio was adversely affected by the turmoil in financial markets following the outbreak of the Ukraine war and later the ill-fated Kwarteng budget. The realised loss on the investment at the balance sheet date were in the tune of £1.4m. The unrealised profit on the investments at the balance sheet date were in the tune of £0.7m. Bank fees amounted to £112,557 (2023: £295,166), largely attributable to investment-related activities.
Despite the increase in costs the company enjoyed a net profit before tax of £3,455,143 (2023 : £3,949,085) reflecting a healthy business.
The company's total debtors have reduced to £8,920,569 (2023: £12,845,010) and the total creditors have reduced to £12,423,981 (2023: £18,664,073) representing an increase in the cash efficiency within the business.
Imperial Cash & Carry Limited
Strategic Report for the Year Ended 31 December 2024
Key performance indicators
The Company's key financial and other performance indicators during the year were as follows:
|
Financial KPIs |
Unit |
2024 |
2023 |
|
Operating profit / (loss) |
£ |
4,138,677 |
3,844,241 |
|
Stock levels |
£ |
5,460,153 |
6,128,476 |
|
Gross profit margin |
% |
8 |
8 |
Alongside its financial performance, the Company’s non-financial indicators continue to demonstrate strength in areas critical to long-term resilience, these are as follows
Customer relationships and service quality: Strong customer relationships remain at the heart of the business, with personalized service, regular marketing initiatives, and a one-stop-shop offering helping to retain loyalty in a highly competitive wholesale market.
Supplier Management: Equally, supplier relationships are actively managed through regular engagement, ensuring continuity of supply, product range availability, and stability against pricing pressures and regulatory changes.
Employee engagement and welfare: The Company also places a strong emphasis on staff welfare and engagement. Competitive wages, welfare events, and an open, hands-on management approach contribute to team stability and morale, supported by consistently low employee turnover.”
Principal risks and uncertainties
The main uncertainties associated with the business is the competitive trading environment in which the Company operates. The competition arises mainly from local cash and carries and the directors believe that this puts pressure on maintaining good margins. However, the risks associated by this situation have been closely monitored by the board from its continued focus on the strength of its wide product range and its relationships with its suppliers and customers.
The changes around tobacco packaging and display regulations may have an impact on the revenue from this stream of business. It is expected that the proportion of smokers in the UK will not materially deteriorate as a result of this move although the introduction of e-cigarettes may result in a shift of current cigarette smokers moving to alternative methods.
Non-financial and sustainability information
Section 172(1) statement
The directors of the Company have acted in good faith to promote the success of the Company for the benefits of its members. The directors attend to the business as far as possible on a daily basis to ensure the Company is running well and can take care of day to day matters alongside their responsibilities of the Company in capacity as directors.
The Company is well positioned in the market for longevity and has a robust cashflow to support its employees and provide continuous employment. Staff are given competitive wages for the industry they are in and treated to welfare events throughout the year. The company is benevolent towards staff health issues and engages in open dialogue with concerned members of staff as required.
Imperial Cash & Carry Limited
Strategic Report for the Year Ended 31 December 2024
The Company holds regular meetings with its key stakeholders and advisers to ensure and maintain its relationships, reputation and standards of business.
Both directors work full days on the company premises. This hands on approach ensures trading is managed appropriately and that the company's high standards of business are maintained at all times.
The Company is strategically located within the Eley Industrial Estate and closer to the main access roads so they engage in good relationships with their neighbours to ensure every business in the Estate can work together without damaging relationships. The Company has offered it's premises for meetings pertaining to the Eley Industrial Estate from time to time as well.
The Company is mindful of the impact of its operations on the community and the environment. As a wholesale distributor, the Company operates in a way that minimises waste and promotes sustainability. All delivery boxes are collected and recycled for re-use, reducing the amount of packaging sent to landfill. The Company’s operations support the local business community by supplying independent off-licences, helping them to remain competitive and serving the needs of local consumers.
All members of staff work together like a well oiled machine to ensure they provide a high level of service to the client. All customers are greeted at the entrance and as the customers often have an account with the Company they will know who the customers are and their typical buying habits. The Company produces a marketing magazine on a regular basis which is circulated by print and email to keep in the eyes of their customers all the time.
The Company believes it acts fairly as between members of the Company. Both members are brothers and have a close knit relation.
Engagement with employees
The company organise regular team events to promote staff morale and encourage a strong team spirit.
Engagement with suppliers, customers and other relationships
The Company engages with its customers on a regular basis as they come to the warehouse for purchasing supplies. The directors and other members of staff have good relationships with our key customers to be able to offer them a good quality service and a one stop shop for their requirements.
There is a dedicated team managing the relationships with suppliers and hold regular meetings with the key suppliers to ensure the supply chain is maintained. This assists in maintaining a wide range of products for our customers.
Our finance team also liaise with customers and suppliers to ensure trade debtor and creditor balances are managed appropriately to aid Company cashflow.
Based on these meetings and understanding what customers want is fundamental to taking principal decisions when ordering stock and maintaining stock levels within the warehouse.
Imperial Cash & Carry Limited
Strategic Report for the Year Ended 31 December 2024
Future outlook
The business is gaining traction from local businesses who see Imperial Cash & Carry as a regular place where they can purchase their goods from. Their location in the Eley Estate is well established.
Their close competitors are keeping prices low however the demand from customers has been consistent and allowed the business the keep their margins slightly higher than before. The revenue for 2025 may be slightly lower than 2024.
With the Labour Party now in Government, they recognise that changes to alcohol regulations are a possibility. As details remain uncertain, they are taking a proactive approach to ensure their business is prepared for any potential adjustments to the regulatory framework and will assess the situation after the Autumn Budget announcement.
The recent decline in inflation and the Bank of England's decision to reduce interest rates are encouraging signs for the business and the UK. The directors believe the Company will continue into the foreseeable future.
Approved by the
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Director
Imperial Cash & Carry Limited
Directors' Report for the Year Ended 31 December 2024
The directors present their report and the financial statements for the year ended 31 December 2024.
Directors of the Company
The directors who held office during the year were as follows:
Dividends
No dividends were declared in the current year ended 31 December 2024 (2023: £430,000).
Information included in the Strategic Report
The Company’s engagement with suppliers, customers and others in a business relationship together with future developments are mentioned in the Strategic Report.
Financial instruments
Objectives and policies
The directors monitor and where possible mitigate the risks faced by the business. This includes credit risk, foreign exchange risk and interest rate risks. As explained in the strategic report, the Company is temporarily investing in quoted securities which are liquid which the directors believe will generate better returns compared to leaving this in an interest paying bank account which had been the case in prior periods. The primary intention is to keep these funds available for investment to expand the business.
Imperial Cash & Carry Limited
Directors' Report for the Year Ended 31 December 2024
Price risk, credit risk, liquidity risk and cash flow risk
• Market and price risk – The wholesale drinks sector is competitive, and purchase prices for certain alcoholic and non-alcoholic beverages can fluctuate due to supplier pricing policies, commodity costs, and global demand trends. Sudden increases in purchase prices can affect profit margins if they cannot be passed on to customers. The Company mitigates this risk by maintaining strong supplier relationships, negotiating favourable contract terms, and monitoring competitor pricing to remain competitive.
• Credit risk – The Company extends credit to its off-licence trade customers, which creates the risk of non-payment. Credit limits are set for each account and reviewed regularly. The Company closely monitors payment histories and proactively follows up on overdue accounts to minimise potential losses.
• Liquidity and cash flow risk – Seasonal trading patterns, particularly around festive and summer periods, can place temporary pressure on working capital. The Company prepares regular cash flow forecasts and maintains sufficient banking facilities to meet peak seasonal demand and unexpected cash requirements.
• Supply chain risk – The business depends on timely deliveries from a small number of key suppliers. Disruptions such as shipping delays, regulatory changes, or supplier insolvency could temporarily impact product availability. The Company mitigates this by diversifying its supplier base where possible and maintaining safety stock levels for high-volume product lines.
• Foreign exchange risk on investments – A significant proportion of the Company’s investment portfolio is held in USD-denominated assets, managed by an external wealth management agency. Changes in the GBP/USD exchange rate can impact the reported value of these investments and associated cash holdings. The Company periodically reviews its currency exposure and, when deemed appropriate, enters into forward currency contracts to reduce the impact of exchange rate volatility
Energy and carbon report
We have considered the recommendations of the Financial Stability Board’s Task Force on Climate-related Financial Disclosures (TCFD) when preparing this report. These recommendations encourage businesses to increase disclosure of climate-related information, with an emphasis on financial disclosure. Imperial Cash & Carry Limited supports these recommendations and are committed to disclosing the relevant information which can be found below.
Risk management
The Company assesses the energy usage of any potential asset purchases and compare to the alternatives to ensure energy efficiency. Additionally, there is a biannual review of energy usage across the company and compared to previous periods to monitor and try reduce the Company's overall carbon footprint.
Emissions and energy consumption
Summary of greenhouse gas emissions and energy consumption for the year ended 31 December 2024:
Imperial Cash & Carry Limited
Directors' Report for the Year Ended 31 December 2024
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Metric |
2024 |
2023 |
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Gas |
kWh |
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Electricity |
kWh |
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Propane |
Kg |
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kHw per £ sales revenue |
Ratio |
74.02 |
81.43 |
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Gas Emission |
Kg of CO₂ |
152,672.00 |
152,334.00 |
|
Electricity Emission |
Kg of CO₂ |
47,179.00 |
45,723.00 |
Emissions and energy consumption data was gathered by summarising kWh and Propane usage from monthly supplier statements.
The Company is committed to reviewing the energy consumption of the business with a view to seek implementation of such measures to reduce the consumption of energy as far as possible.
For this reporting year, the company's emissions were 0.24 kgCO₂ (2023: 0.26 kgCO₂) for each £1 incurred in staff cost.
Strategy
The Company historically invested in plant and machinery which was available widely in the market without specific consideration for the environmental impact of such purchases. Over time the directors have become committed to reducing the carbon footprint of the company and moving towards environmental sustainability. Going forward, potential new assets will be assessed for their carbon footprint in addition to their commercial viability.
Disclosure of information to the auditors
Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the Company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.
Reappointment of auditors
The auditors Richlands Business Advisers Limited are deemed to be reappointed under section 487(2) of the Companies Act 2006.
Post Balance Sheet Events
There have been no significant events affecting the company since the year end.
Approved and authorised by the
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Imperial Cash & Carry Limited
Statement of Directors' Responsibilities
The directors acknowledge their responsibilities 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:
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select suitable accounting policies and apply them consistently; |
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• |
make judgements and accounting estimates that are reasonable and prudent; |
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• |
state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and |
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• |
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.
The directors confirm that so far as they are aware, there is no relevant audit information (as defined by section 418(3) of the Companies Act 2006) of which the Company’s auditors are unaware. They have taken all the steps that they ought to have taken as directors in order to make themselves aware of any relevant audit information and to establish that the Company's auditors are aware of that information.
Imperial Cash & Carry Limited
Independent Auditor's Report to the Members of Imperial Cash & Carry Limited
Opinion
We have audited the financial statements of Imperial Cash & Carry Limited (the 'Company') for the year ended 31 December 2024, which comprise the Profit and Loss Account, Balance Sheet, Statement of Changes in Equity, Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
• | give a true and fair view of the state of the Company's affairs as at 31 December 2024 and of its profit for the year then ended; |
• | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
• | have been prepared in accordance with the requirements of the Companies Act 2006. |
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 responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Imperial Cash & Carry Limited
Independent Auditor's Report to the Members of Imperial Cash & Carry Limited
Opinion on other matter prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
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• |
the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
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• |
the Strategic Report and 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 our knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Directors' Report.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
• | adequate accounting records have not been kept, 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 Statement of Directors' Responsibilities [set out on page 9], 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 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:
Imperial Cash & Carry Limited
Independent Auditor's Report to the Members of Imperial Cash & Carry Limited
Based on our understanding of the Company and industry, we identified that the principal risks of non-compliance with laws and regulations related to the UK tax legislation and breaches of health and safety, and we considered the extent to which non-compliance might have a material effect on the financial statements.
We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to posting inappropriate journal entries, and management bias in accounting estimates. Audit procedures performed by us included:
- discussion with management including consideration of known or suspected instances of non-compliance with laws and regulation and fraud;
- assessment of matters reported on the Company's health and safety audit and the results of management's action on the findings;
- challenging assumptions made by management in their significant accounting estimates;
- identifying and testing journal entries.
There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. 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 misrepresentations, or through collusion.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: 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.
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For and on behalf of
Chartered Accountants and Statutory Auditor
42-46 Station Road
Middlesex
HA8 7AB
Imperial Cash & Carry Limited
Profit and Loss Account for the Year Ended 31 December 2024
|
Note |
2024 |
2023 |
|
|
Turnover |
|
|
|
|
Cost of sales |
( |
( |
|
|
Gross profit |
|
|
|
|
Distribution costs |
( |
( |
|
|
Administrative expenses |
( |
( |
|
|
Other operating income |
|
|
|
|
Operating profit |
4,138,677 |
3,844,241 |
|
|
Other interest receivable and similar income |
|
|
|
|
Interest payable and similar expenses |
( |
( |
|
|
(683,534) |
104,844 |
||
|
Profit before tax |
|
|
|
|
Tax on profit |
( |
( |
|
|
Profit for the financial year |
|
|
The above results were derived from continuing operations.
Imperial Cash & Carry Limited
(Registration number: 02137946)
Balance Sheet as at 31 December 2024
|
Note |
2024 |
2023 |
|
|
Fixed assets |
|||
|
Tangible assets |
|
|
|
|
Investments |
15,000 |
15,000 |
|
|
|
|
||
|
Current assets |
|||
|
Stocks |
|
|
|
|
Debtors |
|
|
|
|
Investments |
|
|
|
|
Cash at bank and in hand |
|
|
|
|
|
|
||
|
Creditors: Amounts falling due within one year |
( |
( |
|
|
Net current assets |
|
|
|
|
Total assets less current liabilities |
|
|
|
|
Provisions for liabilities |
( |
( |
|
|
Net assets |
|
|
|
|
Capital and reserves |
|||
|
Called up share capital |
|
|
|
|
Revaluation reserve |
|
|
|
|
Profit and loss account |
|
|
|
|
Total equity |
|
|
Approved and authorised by the
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Imperial Cash & Carry Limited
Statement of Changes in Equity for the Year Ended 31 December 2024
|
Share capital |
Revaluation reserve |
Retained earnings |
Total |
|
|
At 1 January 2024 |
|
|
|
|
|
Profit for the year |
- |
- |
|
|
|
At 31 December 2024 |
|
|
|
|
|
Share capital |
Revaluation reserve |
Retained earnings |
Total |
|
|
At 1 January 2023 |
|
|
|
|
|
Profit for the year |
- |
- |
|
|
|
Dividends |
- |
- |
( |
( |
|
At 31 December 2023 |
50,000 |
1,134,000 |
29,299,553 |
30,483,553 |
The revaluation reserve is a non-distributable reserve and relates to the revaluation on land and buildings. Refer to the Tangible assets note. The revaluation amount was £1,400,000 and £266,000 was provided against this as deferred tax giving a resultant revaluation reserve of £1,134,000.
The profit and loss account is a distributable reserve.
Imperial Cash & Carry Limited
Statement of Cash Flows for the Year Ended 31 December 2024
|
Note |
2024 |
2023 |
|
|
Cash flows from operating activities |
|||
|
Profit for the year |
|
|
|
|
Adjustments to cash flows from non-cash items |
|||
|
Depreciation and amortisation |
|
|
|
|
Fair value adjustment of Investments |
|
|
|
|
Finance income |
( |
( |
|
|
Finance costs |
|
|
|
|
Income tax expense |
|
|
|
|
Foreign exchange gain/(losses) |
|
( |
|
|
|
|
||
|
Working capital adjustments |
|||
|
Decrease/(increase) in stocks |
|
( |
|
|
Decrease/(increase) in debtors |
|
( |
|
|
Decrease in creditors |
( |
( |
|
|
Increase in directors loan account |
1,517,938 |
2,348,255 |
|
|
Cash generated from operations |
|
|
|
|
Income taxes paid |
( |
( |
|
|
Net cash flow from operating activities |
|
|
|
|
Cash flows from investing activities |
|||
|
Interest received |
|
|
|
|
Acquisitions of tangible assets |
( |
( |
|
|
Acquisition of investments |
( |
( |
|
|
Proceeds from disposal of investments |
|
|
|
|
Foreign exchange (gains)/losses |
(36,416) |
232,469 |
|
|
Net cash flows from investing activities |
( |
( |
|
|
Cash flows from financing activities |
|||
|
Interest paid |
( |
( |
|
|
Additional other borrowings / (repayment) |
- |
( |
|
|
Dividends paid |
- |
( |
|
|
Net cash flows from financing activities |
( |
( |
|
|
Net increase in cash and cash equivalents |
|
|
|
|
Cash and cash equivalents at 1 January |
( |
( |
|
|
Cash and cash equivalents at 31 December |
2,023,068 |
(255,938) |
|
Imperial Cash & Carry Limited
Statement of Cash Flows for the Year Ended 31 December 2024
Analysis of net debt
The analysis of net debt has not been shown as this would not be materially different to that disclosed in Note 16 of the Financial Statements.
Imperial Cash & Carry Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
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General information |
The Company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
United Kingdom
These financial statements were authorised for issue by the
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Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.
Basis of preparation
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
The presentational currency is Pounds Sterling (GBP).
Going concern
The financial statements have been prepared on a going concern basis. In assessing the appropriateness of this basis, the directors have considered the company's actual sales performance and cash flow position to date in 2025.
The directors are closely monitoring the company’s ongoing trading results and cash generation and are satisfied that the current performance provides a reasonable basis to expect the company will continue to operate profitably and meet its obligations as they fall due for the foreseeable future.
This assessment is supported by the company’s profitable and cash-generative performance during the year ended 31 December 2024. Based on this and the continued strength in actual trading results during the current year, the directors believe that it remains appropriate to prepare the financial statements on a going concern basis.
Accordingly, the going concern basis of preparation has been adopted in these financial statements.
Imperial Cash & Carry Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
Judgements
The judgements and estimates made by the directors, in the application of the accounting policies and key sources of estimation uncertainty were as follows: |
The directors recognizes a stock provision at the end of each financial year by identifying obsolete or slow-moving items with no movement for over six (6) months. The provision is based on objective evidence that such items may not be saleable at their full cost or selling price. A full write-down is recognized for these items unless justified otherwise. |
The valuation of investments at fair value involves significant judgement and estimation. Fair value is determined based on market data, valuation techniques, and, where applicable, observable inputs. These estimates can significantly impact the reported value of investments and the related gains or losses recognized in the financial statements. Changes in the market conditions could result in material differences in valuation outcomes. |
Depreciation- Depreciation is provided in accordance with the policies set however the actual wear and tear of the assets may vary. This is shown in Note 11 of the accounts. |
Revenue recognition
Measurement:
Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the Company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.
The Company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
The significant risks and rewards of ownership have transferred to the customer;
The goods have been sold and physically delivered to the customer at the point of sale;
and the entity has no continuing managerial involvement or effective control over the goods sold.
Timing of Recognition:
Sales are recognised at the point of sale when the customer makes payment and takes possession of the goods, which typically occurs at the time of checkout or collection. No revenue is recognised in respect of goods held by the company for future collection or where payment has not yet been made, unless the terms of the transaction otherwise indicate that risks and rewards have transferred."
Foreign currency transactions and balances
Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.
Imperial Cash & Carry Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
Tax
The tax expense for the period comprises current tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company operates and generates taxable income.
Deferred tax is provided in full on timing differences which result in an obligation at the balance sheet date to pay more tax, or a right to pay less tax, at a future date, at rates expected to apply when they crystallise, based on current tax rates and law. Timing differences arise from the inclusion of items of income and expenditure in taxation computations in periods different from those in which they are included in the financial statements. Deferred tax assets are recognised to the extent that it is regarded as more than likely than not that they will be recovered. Deferred tax assets and liabilities are not discounted.
Tangible assets
Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
The Company recognised the land and buildings at the deemed cost value upon transition of FRS102. There is no active policy to revalue the tangible assets on an annual basis.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
|
Asset class |
Depreciation method and rate |
|
Plant & machinery |
25% on reducing balance basis |
|
Land and buildings |
Buildings on 2.5% straight line method |
|
Land and buildings |
Land is not depreciated |
Investments
Initial Measurement:
Current asset investments will be initially recognised at cost.
Subsequent Measurement:
At the balance sheet date the current asset investments will be revalued to the fair value of the investments as at the balance sheet date. The movement arising from this shall be taken to the profit and loss account.
Should there be no market price available, investments shall be valued at cost less impairment.
Impairment:
The fair value of the asset will take any impairment into consideration.
Imperial Cash & Carry Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
Cash and cash equivalents
Cash and cash equivalents are basic financial instruments and include cash in hand, short term deposits held with banks and other short-term highly liquid investments (with a maturity of three month or less from date of investment as to withdrawal or use) and bank overdrafts. Bank overdrafts are included in borrowings in current liabilities.
Trade debtors
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors are reviewed regularly for potential impairment. The review is conducted on a customer by customer basis considering the age of debt, recovery since the year end and discussions with the customer. A provision for the impairment of trade debtors is established when there is objective evidence that the Company will not be able to collect all or part amount due according to the original terms of the receivables. Provisions are continually assessed and are released where provisions are no longer necessary.
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.
The cost of finished goods and work in progress comprises direct materials and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.
Stock which remains unsold for 6 months is usually written off and recognised in profit or loss.
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the Company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Profit and Loss Account over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges. Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Imperial Cash & Carry Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
Leases
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Dividends
Dividend distribution to the Company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are approved or paid.
Imperial Cash & Carry Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
Financial instruments
Classification
from related parties.
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other debtors and creditors, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method.
Debt instruments that are payable or receivable within one year, typically trade creditors or debtors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration, expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms of financed at a rate of interest that is not a market rate or in case of an out-right short term loan not at a market rate, the financial asset or liability is measured, initially, at the present value of the future cash flow discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost.
Non-derivative financial instruments that are equity of the issuer are equity instruments.
Recognition and measurement
Equity instruments are initially measured at cost and the movement at the balance sheet date based on the fair value shall be adjusted to the profit and loss account.
Impairment
For financial assets measured as cost less impairment, the impairment loss is measured as the difference between an asset’s carrying amount and best estimate, which is an approximation of the amount that the company would receive for the asset if it were to be sold at the balance sheet date.
Financial assets and liabilities are offset and the net amount reported in the Balance sheet when there is an 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.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the Company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Imperial Cash & Carry Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
|
Turnover |
The analysis of the company's revenue for the year from continuing operations is as follows:
|
2024 |
2023 |
|
|
Sale of goods - United Kingdom |
|
|
|
Advertising revenue |
|
|
|
|
|
The analysis of the company's turnover for the year by market is as follows:
|
2024 |
2023 |
|
|
United Kingdom |
|
|
|
Other operating income |
The analysis of the company's other operating income for the year is as follows:
|
2024 |
2023 |
|
|
Other operating income - Coupons and dividends from investments |
|
|
|
Gain/(loss) on current asset investments - Realised |
(1,369,738) |
(607,892) |
|
Gain/(loss) on current asset investments - Unrealised |
709,348 |
334,205 |
|
368,640 |
461,147 |
Included in Other Operating Income is coupons and dividends from the investment activities. Included above are the gains/(losses) from the investments activities net of expenses.
The Company has a portfolio of investments in various asset classes and is actively managed by the Directors with the assistance of a firm of financial advisors and the custody of the stocks held are reputed banks.
Imperial Cash & Carry Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
|
Operating profit |
Arrived at after charging/(crediting)
|
2024 |
2023 |
|
|
Depreciation expense |
|
|
|
Foreign exchange losses/(gains) - unrealised |
|
( |
|
Interest payable and similar expenses |
|
2024 |
2023 |
|
|
Interest on bank overdrafts and borrowings |
|
|
|
Interest expense on other finance liabilities |
|
|
|
|
|
|
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
|
2024 |
2023 |
|
|
Wages and salaries |
|
|
|
Social security costs |
|
|
|
Other short-term employee benefits |
|
|
|
Pension costs, defined contribution scheme |
|
|
|
|
|
The average number of persons employed by the Company (including directors) during the year, analysed by category was as follows:
|
2024 |
2023 |
|
|
Warehouse, administration and support staff |
|
|
|
Directors and management |
|
|
|
|
|
Imperial Cash & Carry Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
|
Directors' remuneration |
The directors' remuneration for the year was as follows:
|
2024 |
2023 |
|
|
Remuneration |
|
|
|
Auditors' remuneration |
|
2024 |
2023 |
|
|
Audit of the financial statements |
|
|
|
Taxation |
Tax charged/(credited) in the profit and loss account
|
2024 |
2023 |
|
|
Current taxation |
||
|
UK corporation tax |
|
|
|
UK corporation tax adjustment to prior periods |
- |
|
|
698,548 |
856,048 |
Factors affecting tax charge for the year
The tax on profit before tax for the year is lower than the standard rate of corporation tax in the UK (2023 - higher than the standard rate of corporation tax in the UK) of
The differences are reconciled below:
|
2024 |
2023 |
|
|
Profit before tax |
|
|
|
Corporation tax at standard rate |
|
|
|
Effect of expense/(income) not deductible in determining taxable profit/(loss) |
( |
( |
|
Increase in UK and foreign current tax from adjustment for prior periods |
- |
|
|
Tax increase from effect of capital allowances and depreciation |
|
|
|
Total tax charge |
|
|
Imperial Cash & Carry Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
|
Tangible assets |
|
Land and buildings |
Plant & machinery |
Total |
|
|
Cost or valuation |
|||
|
At 1 January 2024 |
|
|
|
|
Additions |
- |
|
|
|
At 31 December 2024 |
|
|
|
|
Depreciation |
|||
|
At 1 January 2024 |
|
|
|
|
Charge for the year |
|
|
|
|
At 31 December 2024 |
|
|
|
|
Carrying amount |
|||
|
At 31 December 2024 |
|
|
|
|
At 31 December 2023 |
|
|
|
Included within the net book value of land and buildings above is £3,753,343 (2023: £3,798,110) in respect of freehold land and buildings. Land represents £3,100,000 of the total (2023: £3,100,000).
The above land and buildings are valued at the deemed cost on transition to FRS102. The net book value of the property on a historic cost basis would amount to £2,619,344 (2022: £2,664,111).
|
Fixed asset investments |
|
Financial assets at cost |
Total |
|
|
Cost or valuation |
||
|
At 1 January 2024 |
15,000 |
15,000 |
|
At 31 December 2024 |
15,000 |
15,000 |
|
Carrying amount |
||
|
At 31 December 2024 |
|
15,000 |
Investment in Trade association.
|
Stocks |
|
2024 |
2023 |
|
|
Goods for resale |
5,460,153 |
6,128,476 |
Imperial Cash & Carry Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
|
Debtors |
|
Note |
2024 |
2023 |
|
|
Trade debtors |
|
|
|
|
Amounts owed by related parties |
|
|
|
|
Other debtors |
|
|
|
|
Prepayments |
|
|
|
|
Accrued income |
|
|
|
|
Total current trade and other debtors |
|
|
|
Current asset investments |
|
2024 |
2023 |
|
|
Other investments brought forward |
25,290,922 |
24,123,556 |
|
Other investments additions |
41,091,098 |
64,725,275 |
|
Other investments disposals |
(40,119,942) |
(63,284,221) |
|
Fair value adjustments of investments |
(660,390) |
(273,687) |
|
|
|
The above value represents the aggregate amount and the aggregate fair value of the investments. There is no difference noted between the value per the accounts and the aggregate fair value of the investments.
The Company has a portfolio of investments in various asset classes and is actively managed by the Directors with the assistance of a firm of financial advisors and the custody of the stocks held are financial institutions.
|
Cash and cash equivalents |
|
2024 |
2023 |
|
|
Cash on hand |
|
|
|
Cash at bank |
|
|
|
|
|
|
|
Bank overdrafts |
( |
( |
|
Cash and cash equivalents in statement of cash flows |
2,023,068 |
(255,938) |
Imperial Cash & Carry Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
|
Creditors |
|
Note |
2024 |
2023 |
|
|
Due within one year |
|||
|
Loans and borrowings |
|
|
|
|
Trade creditors |
|
|
|
|
Amounts due to related parties |
- |
|
|
|
Social security and other taxes |
|
|
|
|
Other creditors |
|
|
|
|
Accrued expenses |
|
|
|
|
Corporation tax payable |
716,648 |
522,874 |
|
|
Directors current account |
1,517,938 |
2,348,255 |
|
|
|
|
|
Provisions for liabilities |
|
Deferred tax |
Total |
|
|
At 1 January 2024 |
|
|
|
At 31 December 2024 |
|
|
|
|
||
|
Pension and other schemes |
Defined contribution pension scheme
The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £
Pension Control
Contribution totalling £2,984 (2023: £3,000) were payable to the scheme at the balance sheet date and are included in other creditors.
|
Share capital |
Allotted, called up and fully paid shares
|
2024 |
2023 |
|||
|
No. |
£ |
No. |
£ |
|
|
|
|
50,000 |
|
50,000 |
Imperial Cash & Carry Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
|
Loans and borrowings |
Current loans and borrowings
|
2024 |
2023 |
|
|
Bank overdrafts |
|
|
Other borrowings are loans from The Stallion Imperial Fund which is part of the investment portfolio managed by the financial advisor. These are secured against the overall investment portfolio.
|
Obligations under leases and hire purchase contracts |
Operating leases
The total of future minimum lease payments is as follows:
|
2024 |
2023 |
|
|
Not later than one year |
|
|
|
Later than one year and not later than five years |
|
|
|
Later than five years |
|
|
|
|
|
The amount of non-cancellable operating lease payments recognised as an expense during the year was £
|
Financial guarantee contracts |
Maximum liability guarantee in favour of HM Revenue & Customs in respect of excise and duty.
The amount of the financial guarantee contract is £
Imperial Cash & Carry Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
|
Related party transactions |
|
Transactions with directors |
|
At 1 January 2024 |
Advances to director |
Repayments by director |
At 31 December 2024 |
|
|
2024
|
2,341,549 |
(978,235) |
149,441 |
1,512,755 |
|
Director's current account 2 |
6,706 |
(49,421) |
47,898 |
5,183 |
|
2,348,255 |
(1,027,656) |
197,339 |
1,517,938 |
|
At 1 January 2023 |
Advances to director |
Repayments by director |
At 31 December 2023 |
|
|
2023
|
1,449,873 |
(3,189,664) |
4,081,340 |
2,341,549 |
|
Director's current account 2 |
2,428 |
(1,828,108) |
1,832,386 |
6,706 |
|
1,452,301 |
(5,017,772) |
5,913,726 |
2,348,255 |
Entities under common control of Directors
Imperial Cash & Carry Limited rents premises from a connected entity and incurs an annual rent of £101,826 (2023: £101,826) which is charged at an arms length basis. At the balance sheet date the amount due to the entity was £Nil (2023: £Nil).
Imperial Cash & Carry Limited sold goods to an entity under control of one of the directors on an arm's length basis totalling £20,499 (2023: £13,402). At the balance sheet date, the amount due from this entity from trading activities was £17,090 (2023: £6,562). At the balance sheet date the amount due to the companies under control of one of the Directors from unsecured loans was £Nil (2023: £3,624,498). These have been disclosed in amounts due to related parties.
At the balance sheet date the amount due from companies under control of the Directors was £7,222,493 (2023: £11,639,730). Of this secured loans amount to £Nil (2023: £1,906,959). These have been disclosed in amounts owed by related parties.
During the year an amount of £552,588 owed by a related party was agreed to be written off.
Ultimate Controlling Party
The directors are of the opinion that there is no single controlling party and no ultimate controlling party.
Imperial Cash & Carry Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
|
Parent and ultimate parent undertaking |
From 31 October 2022, the Company's immediate and ultimate parent is