REGISTERED NUMBER: 00618332 (England and Wales)

Strategic Report, Report of the Directors and

Financial Statements

for the Year Ended 31 January 2025

for

Maxwells (Sunderland) Limited

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Statement of Comprehensive Income

10

Statement of Financial Position

11

Statement of Changes in Equity

12

Statement of Cash Flows

13

Notes to the Statement of Cash Flows

14

Notes to the Financial Statements

15

DIRECTORS:

K Maxwell

I Maxwell

N Maxwell

A Maxwell

F Maxwell

SECRETARY:

N Maxwell

REGISTERED OFFICE:

Unit 4

Durham Road Trading Estate

Birtley

Chester-le-Street

County Durham

DH3 2BQ

REGISTERED NUMBER:

00618332 (England and Wales)

AUDITORS:

TTR Barnes

Chartered Accountants

and Registered Auditor

3-5 Grange Terrace

Stockton Road

Sunderland

Tyne & Wear

SR2 7DG

BANKERS:

National Westminster Bank Plc

52 Fawcett Street

Sunderland

Tyne and Wear

SR1 1SB

SOLICITORS:

Peter Dunn & Co.

20 Athenaeum Street

Sunderland

Tyne and Wear

SR1 1DH

The directors present their strategic report for the year ended 31 January 2025.

REVIEW OF BUSINESS

The company offer a range of hardware and do-it-yourself goods to both trade and domestic customers.

A key financial performance indicator used by the directors is the gross profit percentage generated. The directors are pleased that the effects on the supply chain and price increases have not impacted greatly on the company's profitability.

The results for the year noted below show a 2.59% increase in gross profit percentage which supports the successful strategies implemented by the directors during such a difficult year.

Key financial results are as follows :-

2025

2024

2023

2022

2021

£

£

£

£

£

Sales

6,105,068

6,146,663

6,217,471

7,417,330

7,212,416

Cost of Sales

3,139,662

3,256,106

3,314,018

4,041,278

3,910,436

Gross Profit %

48.57%

47.03%

46.70%

45.52%

45.78%

Liquidity Ratio

259.63%

246.46%

201.24%

172.01%

147.37%

Trading Ratio

37.83%

43.49%

44.53%

38.74%

34.46%

Gearing Ratio

0.00%

0.08%

0.41%

0.00%

1.34%

The directors continue to review the company's cashflow and maintain strong controls over expenditure and use of resources, reducing costs wherever possible, particularly during the current economic crisis.

The company retains a strong hold in the local market as at 31 January 2025 and the directors intend to continually drive the company forward as a leading DIY merchant in the North East of England and anticipate for that to remain in the future.

PRINCIPAL RISKS AND UNCERTAINTIES

The directors are of the opinion that the principle risks and uncertainties which face the company are those associated with trading within the current economic environment.

The directors continually monitor results and review market demand so that they may act accordingly and manage resources as well as risk.

The risks and uncertainties have been monitored by the directors during the year and performance would appear reasonable.

FINANCIAL RISK MANAGEMENT

The company's operations may expose it to a variety of financial risks that include the effects of changes in prices, credit risk and liquidity risk. The company seeks to limit the adverse effect on the financial performance of the company as follows :

Price risk

The directors monitor movements in market prices on a regular basis. The company's exposure to equity securities price risk is also closely monitored and the investments are actively managed to avoid any significant risk of losses.

Credit risk

The company is mainly cash based and therefore the risk from credit is very low. If credit were to be provided, credit check policies are in place .

Liquidity risk

The company actively maintains sufficient liquid working capital balances to fund its operations and is, therefore, not subject to significant liquidity risk.

Interest rate risk

The company holds interest bearing assets and liabilities. Cash balances earn interest at variable rates and the directors consider interest rate risk on cash balances to be minimal.

ON BEHALF OF THE BOARD:

N Maxwell - Director

30 September 2025

The directors present their report with the financial statements of the company for the year ended 31 January 2025.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of hardware dealers and Do-It-Yourself merchants.

DIVIDENDS

The total distribution of dividends for the year ended 31 January 2025 will be £100,000 (2024: nil).

FUTURE DEVELOPMENTS

The directors intend to strive to succeed in the year ahead which may again involve trading within a difficult economic environment.

Results for 2025 are positive and reflect the strong structure within the company. The directors anticipate the business environment will remain competitive. They believe that the company is in a good financial position and the risks that have been identified have been managed. With careful focus and efficient use of resources, as well as continuing review of the market, the directors are confident in the company's ability to maintain and build on this position, albeit with cautious growth expectations.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 February 2024 to the date of this report.

K Maxwell

I Maxwell

N Maxwell

A Maxwell

F Maxwell

DISCLOSURE IN THE STRATEGIC REPORT

The directors have chosen to prepare a Strategic Report which includes a review of the business and the financial risk management.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and 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;

-	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.

Directors are also responsible for stating whether the applicable accounting standards have been followed, subject to any material departure's disclosed and explained in the financial statements.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

ON BEHALF OF THE BOARD:

N Maxwell - Director

30 September 2025

Opinion

We have audited the financial statements of Maxwells (Sunderland) Limited (the 'company') for the year ended 31 January 2025 which comprise the Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and Notes to the Statement of Cash Flows, 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 January 2025 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 Auditors' 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 directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

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

-	adequate accounting records have not been kept, 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 four, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the 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.

Auditors' responsibilities for the audit of the financial statements

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

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

- the 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;

- we identified the laws and regulations applicable to the company through discussions with directors and other

management, and from our commercial knowledge and experience of the do-it-yourself sector;

- we focused on specific laws and regulations which we considered may have a direct material effect on the

financial statements or the operations of the company, including the Companies Act 2006, taxation legislation and

data protection, anti-bribery, employment, environmental (including Waste Electrical and Electronic Equipment

recycling (WEEE) Regulations 2013) and health and safety legislation;

- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of

management and inspecting legal correspondence;

- and identified laws and regulations were communicated within the audit team regularly and the team remained

alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of

actual, suspected and alleged fraud; and

- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:

- performed analytical procedures to identify any unusual or unexpected relationships;

- tested journal entries to identify unusual transactions;

- assessed whether judgements and assumptions made in determining the accounting estimates were indicative of

potential bias; and

- investigated the rationale behind significant or unusual transactions.

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

- agreeing financial statement disclosures to underlying supporting documentation;

- reading the minutes of meetings of those charged with governance;

- enquiring of management as to actual and potential litigation and claims; and

- reviewing correspondence with HMRC, relevant regulators including the Health and Safety Executive, and the

company's legal advisors.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report

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

Allan Russell FCA (Senior Statutory Auditor)

for and on behalf of TTR Barnes

Chartered Accountants

and Registered Auditor

3-5 Grange Terrace

Stockton Road

Sunderland

Tyne & Wear

SR2 7DG

1 October 2025

TURNOVER

3

6,105,068

6,146,663

Cost of sales

3,139,662

3,256,106

GROSS PROFIT

2,965,406

2,890,557

Administrative expenses

2,760,619

2,760,712

204,787

129,845

Other operating income

6,860

5,500

OPERATING PROFIT

6

211,647

135,345

Interest receivable and similar income

10,749

9,314

PROFIT BEFORE TAXATION

222,396

144,659

Tax on profit

7

21,172

24,746

PROFIT FOR THE FINANCIAL YEAR

201,224

119,913

OTHER COMPREHENSIVE INCOME

Deferred tax adjustment on revaluation

(60,251

)

9,062

Disposal of property

(16,900

)

-

Revalued property

727,520

-

Income tax relating to components of other comprehensive income

-

-

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

650,369

9,062

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

851,593

128,975

FIXED ASSETS

Intangible assets

9

-

-

Tangible assets

10

3,922,532

3,502,670

Investments

11

2,550

2,550

Investment property

12

225,000

-

4,150,082

3,505,220

CURRENT ASSETS

Stocks

13

1,187,624

1,416,108

Debtors

14

69,577

71,592

Cash at bank and in hand

880,040

458,886

2,137,241

1,946,586

CREDITORS

Amounts falling due within one year

15

823,200

789,828

NET CURRENT ASSETS

1,314,041

1,156,758

TOTAL ASSETS LESS CURRENT LIABILITIES

5,464,123

4,661,978

PROVISIONS FOR LIABILITIES

18

108,022

57,470

NET ASSETS

5,356,101

4,604,508

CAPITAL AND RESERVES

Called up share capital

19

6,350

6,350

Revaluation reserve

20

1,129,411

658,994

Non distributable reserves

20

179,952

-

Retained earnings

20

4,040,388

3,939,164

SHAREHOLDERS' FUNDS

5,356,101

4,604,508

The financial statements were approved by the Board of Directors and authorised for issue on 30 September 2025 and were signed on its behalf by:

N Maxwell - Director

Called up

Non

share

Retained

Revaluation

distributable

Total

capital

earnings

reserve

reserves

equity

£

£

£

£

£

Balance at 1 February 2023

6,350

3,819,251

649,932

-

4,475,533

Changes in equity

Total comprehensive income

-

119,913

9,062

-

128,975

Balance at 31 January 2024

6,350

3,939,164

658,994

-

4,604,508

Changes in equity

Dividends

-

(100,000

)

-

-

(100,000

)

Total comprehensive income

-

201,224

470,417

179,952

851,593

Balance at 31 January 2025

6,350

4,040,388

1,129,411

179,952

5,356,101

Cash flows from operating activities

Cash generated from operations

1

374,005

106,559

Tax paid

(32,652

)

(2,714

)

Net cash from operating activities

341,353

103,845

Cash flows from investing activities

Purchase of tangible fixed assets

(31,860

)

(15,763

)

Sale of tangible fixed assets

154,476

-

Interest received

10,749

9,314

Net cash from investing activities

133,365

(6,449

)

Cash flows from financing activities

Amount introduced by directors

157,040

-

Amount withdrawn by directors

(106,347

)

(129,255

)

Equity dividends paid

(100,000

)

-

Net cash from financing activities

(49,307

)

(129,255

)

Increase/(decrease) in cash and cash equivalents

425,411

(31,859

)

Cash and cash equivalents at beginning of year

2

454,629

486,488

Cash and cash equivalents at end of year

2

880,040

454,629

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2025

2024

£

£

Profit before taxation

222,396

144,659

Depreciation charges

19,782

21,823

Profit on disposal of fixed assets

(76,640

)

-

Finance income

(10,749

)

(9,314

)

154,789

157,168

Decrease in stocks

228,484

59,635

Decrease in trade and other debtors

2,015

7,796

Decrease in trade and other creditors

(11,283

)

(118,040

)

Cash generated from operations

374,005

106,559

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 31 January 2025

31/1/25

1/2/24

£

£

Cash and cash equivalents

880,040

458,886

Bank overdrafts

-

(4,257

)

880,040

454,629

Year ended 31 January 2024

31/1/24

1/2/23

£

£

Cash and cash equivalents

458,886

509,481

Bank overdrafts

(4,257

)

(22,993

)

454,629

486,488

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1/2/24

Cash flow

At 31/1/25

£

£

£

Net cash

Cash at bank and in hand

458,886

421,154

880,040

Bank overdrafts

(4,257

)

4,257

-

454,629

425,411

880,040

Total

454,629

425,411

880,040

1.	STATUTORY INFORMATION

Maxwells (Sunderland) Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

The financial statements have been prepared on a going concern basis which assumes that the company will continue in operational existence for the foreseeable future, which the directors consider appropriate.

Significant judgements and estimates

The following estimates have been made in the process of applying the above accounting policies, these are the estimates that have the most significant effect on the financial statements:

Depreciation - depreciation is calculated so as to write off the cost of an asset, less its residual value, over the useful economic life of that asset. An estimate of the useful economic life of assets is detailed in the depreciation accounting policy.

Valuation of Stock - stock is held at the lower of cost and net realisable value, a judgement has been made to establish if there should be a provision for stock items that have reduced in value.

Turnover and income recognition

Turnover represents the amount derived from the provision of goods and services falling within the company's activities after deduction of trade discounts and value added tax.

Income is recognised upon delivery of goods to customer, usually at the point of sale.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Freehold property

-

not provided

Short leasehold

-

not provided

Improvements to property

-

not provided

Plant and machinery

-

20% on reducing balance

Fixtures and fittings

-

15% on reducing balance

Motor vehicles

-

25% on reducing balance

No depreciation was charged during the year on property or development land included in improvements to property as land is expected to appreciate overtime.

All other tangible fixed assets are recognised at cost less any accumulated depreciation and impairments.

Investment property

Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss.

Stocks

Stocks are valued at the lower of cost and net realisable value. Cost is computed on a first in first out basis. Net realisable value is based on estimated selling price less the estimated cost of disposal.

Financial instruments

The company only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are recognised at transaction value and subsequently measured at their settlement value.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Revaluation of freehold and short leasehold property

As described in note 10, the freehold and short leasehold property are stated at fair value based on the valuation performed by an independent valuer Lofthouse and Partners with experience in the location and the category of property valued.The valuer used observable market prices adjusted as necessary for any difference in the future, location and condition of the specific asset.

3.

TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by geographical market is given below:

2025

2024

£

£

United Kingdom

6,105,068

6,146,663

6,105,068

6,146,663

4.	EMPLOYEES AND DIRECTORS

2025

2024

£

£

Wages and salaries

1,973,650

1,911,025

Social security costs

162,436

140,383

Other pension costs

74,826

49,255

2,210,912

2,100,663

The average number of employees during the year was as follows:

2025

2024

Office and management

8

10

Administration

1

1

Operational

78

87

87

98

5.	DIRECTORS' EMOLUMENTS

2025

2024

£

£

Directors' remuneration

243,815

135,964

Directors' pension contributions to money purchase schemes

40,250

12,249

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes

2

2

Information regarding the highest paid director for the year ended 31 January 2025 is as follows:

2025

£

Emoluments etc

114,000

6.	OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2025

2024

£

£

Depreciation - owned assets

19,782

21,822

Profit on disposal of fixed assets

(76,640

)

-

Auditors' remuneration

26,760

22,750