The directors present the strategic report for the year ended 27 March 2025.
Introduction
The company is an integral member of a group headed by James Convenience Retail Limited (“JCR”). The directors consider that to gain an understating of the year under review in these financial statements, it is necessary for users to understand the business review of the JCR group. The following is an extract from the 26 March 2025 financial statement of James Convenience Retail Limited.
The principal activity of the group is the retailing of convenience foods, confectionery, news, tobacco, soft drinks, alcohol and food to go.
The group currently operates thirty six stores as of December 2025 with a strong presence in both the convenience sector and travel interchanges which combined are the largest contributor to the groups profits.
Despite the group facing significant cost increases during the year, it was able to deliver a profitable EBITDA and continues to deliver an improvement on financial performance over recent years. Group trading EBITDA for the year totalled £822k.
The group acknowledges the cost-of-living increase on so many of our customers and as such have implemented a strategy of offering price marked product showing value to the customer. This has helped drive volume in turnover, whilst providing a competitive price to our customers during difficult financial times. The strategy allowed the group to grow turnover and profitability in multiple commodity groups to minimise the impact of the declining tobacco market and loss in sales as a result changes in legislation for disposable vapes.
During the year the group reinvested profits to refurbish existing sites, further invest in its food to go offer, which has helped to establish a sustainable business model for the long term. The stores that the group transitioned to the Costcutter brand in the prior year continue to deliver significant and sustained sales growth due to the improved range of product and recognition of the Costcutter brand.
With the help of Costcutter stores, the group will rebrand the existing sites to the Costcutter brand and in various transport locations embrace the format of Costcutter on the go sites. As part of the rebranding, stores will undergo refurbishment with revised product ranges to provide an improved convenience offer for our customers. With the help of external investment, further existing sites have been refurbished in the financial year ending March 2026 which has helped deliver sustainable profits.
During the year the group successfully managed to dispose of several loss-making stores that had become commercially unviable due to the result of cost increases imposed by government and the declining tobacco market. Further stores have been identified as becoming uncommercially viable due to the change in customer shopping trends and an increase in anticipated costs. These will be disposed of during the upcoming financial year. The group has had to close stores on the east coast because of non-UK duty paid illicit tobacco trade having such a negative impact on sales for compliant retailers.
The group acknowledges that it will need to mitigate the impact of rising costs in the upcoming year. To continue the strong financial performance, the group intends to invest in technology to ensure savings and efficiencies through store and head office operations.
Despite anticipated cost increases and sales decline due the ban on disposal vapes coming into force in June 2025, the directors expect the growth from the rebranding and refurbishment of stores to allow the group to continue to deliver a profit at an EBITDA level for the upcoming year. Store EBITDA forecasted for the year ending March 2026 is £1.4m.
Given the current year performance, the investment anticipated within the group and forecasts prepared by the management, directors believe the group has a very positive future.
The thanks of the directors are expressed to store colleagues, the support office team and all key stakeholders in supporting the company through the challenging times of recent years and continued support in returning the group to a profitable position.
| 2025 | 2024 |
Sales | £36m | £36m |
Gross Profit | £7.9m | £7.8m |
Gross Profit % | 21.8% | 21.6% |
The group monitors its financial position through several key performance indicators ('KPIs'). The principal KPIs for the year are as shown above.
Sales have remained consistent despite the reduction in store numbers. Sales growth through ambient and fresh commodities due to price mark strategy and refurbishment of stores to Costcutter. Sales in tobacco and news related products are in decline which is consistent with the sector.
The increase gross profit margin is due to a shift in sales mix with a reduction in tobacco product and an increase in fresh and ambient product that returns a higher margin. Volume increase in price marked product that typically carries a higher margin than non-price marked equivalents.
The directors monitor other KPI’s on a store-by-store basis, looking at performance on a weekly basis through a review of top line category performance year on year and against budget. Store Managers are then targeted on improving performance through active selling to drive footfall and sales growth.
The directors actively review stock levels across stores and monitor individual line performance to ensure there is sufficient stock to service the demands of customers but not to the detriment of the cash performance of the business.
Cash is a key performance metric, with weekly cashflow forecasts produced and carefully monitored.
Financial/ operational risks
| Explanation | Mitigation |
Competition The group operates in a highly competitive retail market, and may not be able to operate profitably in the long term from each site.
| The retail industry is highly competitive, particularly with respect to price, product selection and quality, store location, inventory and customer service.
The group competes with a diverse group of retailers of varying sizes. These competitors include single site retailers, supermarkets, convenience stores and traditional newsagents.
Trading performance for individual stores may suffer from long term decline or the opening of new competitors near to our sites. | The group works extremely hard and remains alert to local trading conditions to ensure that it responds rapidly and appropriately to the types of competition encountered locally by each of our outlets.
The group actively monitors each store's performance and seeks to sell underperforming stores whilst they still have an economic value. The group regularly assesses its product mix, pricing and promotional offers to attract new customers, whilst retaining its existing customer base. |
Cash flow The group’s cash flows from operations may be negatively affected if it is not successful in managing stock levels or levels of stock shrinkage. | To be profitable the group must maintain sufficient stock levels to meet its customers’ demands without allowing those levels to increase to an extent such that the costs impact on the financial results.
| The group monitors stock levels through its EPOS systems and continues to deploy good practices based on the directors' knowledge of the industry.
The group, like other retailers experiences stock shrinkage and adopts measures that monitor and control the problem. Some level of stock loss is an unavoidable cost of doing business. |
National living wage In order to reduce the cost of benefits to the exchequer the chancellor increased the minimum wage in April 2026.
| The group will need to recoup the additional cost of this government measure.
| The cost of implementation will be mitigated by a combination of a reduction in staffing hours and stricter budgetary control in all expenditure. Managed further by the investment in technology to reduce labour hours.
|
Cash flow management Cash flow management of the group is important as it competes in a highly competitive market. Profit and cash management are vital to service the group’s financial commitments. | The group must monitor cash regularly to ensure sufficient cash is available to service debt requirements and be able to respond to the changing face of the retail landscape.
| The group manages the cash performance through production of weekly cash flow forecasts and reviewing against previous forecasts. A long-term strategic cash model is maintained to assess the future demands of cash and regular senior management meetings are held to explore options to bring in or reduce cash expenditure. The directors maintain good and close relations with its bankers, shareholders and Bestway, its wholesale partner. |
The directors have acted in a way they consider, in good faith, promotes the success of the group for the benefit of its members as a whole, and in doing so has given regard (amongst other matters) to:
Business relationships
The need to build strong longstanding relationships within the supply agreement with key suppliers, and with our customers, is paramount to the success of the group and its longevity. We continually develop strategies to maintain and grow our offering and customer base and to further improve relationships with suppliers.
Our people
The group is committed to being a responsible business. Our behaviour is aligned with the expectations of our people. customers, shareholders communities and society as a whole. People are the heart of delivering great customer service in our stores. For our business to continue to succeed we continually manage our people's performance and develop and bring through talent which ensuring we operate as efficiently as possible.
Disabled employees
The group gives full and fair applications for employment by disabled persons. In the event of employees becoming disabled whilst in the service of the group, every effort is made to continue their employment by transfer to alternative duties, if required, and by provision of such retraining as is appropriate.
Employee involvement
The group maintains an intranet site that provides employees with information on matters of concern to them as employees. Regular meetings are held between operational management and employees to allow free flow of information and ideas within the team.
Culture and values
The group recognises the importance of having the right corporate culture. Our long term success is dependent on achieving strategic goals the right and fair way, so we look after the best interests of our shareholders, customers, people, suppliers and other stakeholders.
Shareholders
The management team are committed and openly engaged with the group's shareholders through regular board meetings and effective dialogue. The shareholders are actively engaged in understanding our strategy, culture, people and the performance of our shared objectives for the short, mid and longer terms.
On behalf of the board
The directors present their annual report and financial statements for the year ended 27 March 2025.
The results for the year are set out on page 10.
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
The auditor, BHP LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
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.
We have audited the financial statements of Rippleglen Limited (the 'company') for the year ended 27 March 2025 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).
Basis for 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
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' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
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 management, and from our commercial knowledge and experience of the retail convenience store 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 Companies Act 2006, taxation legislation, data protection, anti-bribery, employment, environments 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 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; and
enquiring of management as to actual and potential litigation and claims.
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 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.
The profit and loss account has been prepared on the basis that all operations are continuing operations.
Rippleglen Limited is a private company limited by shares incorporated in England and Wales. The registered office is Hazel Court, Midland Way, Barlborough, Chesterfield, Derbyshire, England, S43 4FD.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £000.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:
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: The disclosure requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b), 11.48(c), 12.26, 12.27, 12.29(a), 12.29(b), and 12.29A;
Section 26 ‘Share based Payment’: Share based payment arrangements required under FRS 102 paragraphs 26.18(b), 26.19 to 26.21 and 26.23;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The financial statements of the company are consolidated in the financial statements of James Convenience Retail Limited. These consolidated financial statements are available from its registered office.
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.
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
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.
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, including creditors and loans from fellow group companies are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
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. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
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.
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.
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.
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
In determining whether intangible assets are impaired requires an estimation of the value in use of each of the cash-generating units to which goodwill and intangible assets have been allocated. The value in use calculation requires the entity to estimate the future cash flows expected to arise from the cash-generating unit and a suitable discount rate in order to calculate present value. In assessing the carrying value of intangible assets the directors have taken into account events up to the date of approving the financial statements.
The group reviews the carrying value of fixed asset investments for indications of impairment at each period end. If indicators of impairment exist, the carrying value of the asset is subject to further testing to determine whether its carrying value exceeds its recoverable amount. This process will usually involve the estimation of future cash flows which are likely to be generated by the asset.
Amounts due from group companies are recognised to the extent that they are judged recoverable. Director reviews are performed to estimate the level of reserves required for irrecoverable debt. Provisions are made specifically where recoverability is uncertain and are charged to the profit and loss account in the period in which the impairment arises. Impairment is applied where events or changes in circumstances indicate that the carrying amounts are not expected to be recoverable.
The average monthly number of persons (including directors) employed by the company during the year was:
Their aggregate remuneration comprised:
The actual charge/(credit) for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
Details of the company's subsidiaries at 27 March 2025 are as follows:
In the opinion of the directors the value of these investment as at 27 March 2025 is not less than the aggregate amount in the balance sheet at that date.
The bank overdraft, bank loans and other loans are secured by a debenture which creates a fixed and floating charge over the group's assets, property and revenues both present and future.
Amounts owed to group undertakings are shown as falling due within one year as there is no set repayment date and there is no formal agreement in place. Commercially there are no plans for these amounts to be recalled within the next 12 months by the other group company.
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
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.
Share premium includes any premiums received on issue of share capital.
Capital redemption reserve relates to the nominal value of share capital repurchased by the company.
The company is party to an omnibus guarantee covering the bank borrowings of the wider group. As at 27 March 2025 these borrowings totalled £1,701,633 (2024: £1,575,866).
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:
As the company is a wholly-owned subsidiary of a company whose consolidated accounts include the results of the subsidiary and are publicly available, the company has taken advantage of FRS 102 Section 33.1A exemption from disclosing transactions with group undertakings where 100% of the voting rights are within the group.
Intercompany creditor balances of £2,241,080 have been reclassified in the comparative year from creditors due under one year to debtors to be consistent with current year presentation. This reclassification has no impact on the comparative profit or net assets.