Registered number: 01761459
FOR THE YEAR ENDED 31 JULY 2025
COMPANY INFORMATION
CONTENTS
STRATEGIC REPORT
FOR THE YEAR ENDED 31 JULY 2025
The Directors present their strategic report together with the Directors’ report and audited financial statements of Charlies Stores Limited (the Company) for the year ended 31 July 2025.
Principal activities
The principal activity of the Company continues to be that of an independent family run retailer selling to customers through stores and online. Whilst the Company has grown, the passion and values it was founded on remain the same; we only sell products that we would be happy to take home ourselves, and work hard to ensure they are fantastic value for money.
Principal activities
The principal activity of the Company continues to be that of an independent family run retailer selling to customers through stores and online. Whilst the Company has grown, the passion and values it was founded on remain the same; we only sell products that we would be happy to take home ourselves, and work hard to ensure they are fantastic value for money.
The results for the Company are as shown in the annexed financial statements. This year’s sales were £63.8m, a £1.5m (2.4%) increase on the prior year, driven by strong store sales.
For our bricks and mortar stores, turnover was increased compared to the prior year. This level of increase in turnover in stores again bucked many national retail and consumer spending trends, which is testament to the high quality of our products, customer service and in-store experience that we work so hard to provide.
Our e-commerce business kept its focus on profitability, ensuring the operation ran efficiently and demanding more from our marketing spend. Owing to the pressures in the market, we again managed our marketing spend, with an increase of around 1% and ensuring it was directed in the most effective way. Our e-commerce operation increased its sales by £6k (0%) to £15m, operating profit increased from a profit of £0.5m in 2024 to a profit of £0.9m in 2025.
Our gross margin increased by 201 of a percentage point, from 34.0% in 2024 to 36.1% this year. Our margin saw an increase this year relative to 2024, as last year we strategically adjusted pricing to optimise inventory levels and improve cash flow.
The Company remains focussed on controlling overheads and increasing efficiency. Our single largest cost is that of our staff, which accounts for over half of all our operating costs. We understand the importance of staffing our stores appropriately and recognise the importance of maintaining our high store standards and customer service levels.
The Company continues to explore and invest in new systems, technologies and ways of working to increase productivity and increase staff output right across the business, including in store, warehouse and office roles.
Despite many unavoidable cost increases, we were able to achieve a profit of £2.2m, an increase of £0.9m (66.9%) from last year.
Our total inventory holding has increased by £0.4m (2.6%) to £15.6m on 31 July 2025.
During the year, the ultimate parent company of the Company, Charlies Stores Holdings Limited acquired the freehold of a retail property in Cheltenham, with our new store opening in October 2025. To support this strategic investment, the Company secured an additional £7.3m in bank borrowing. We did not require any government-backed loans, nor did we defer rent or VAT payments during the period. Despite the significant capital outlay, we concluded the year with a positive cash surplus.
For our bricks and mortar stores, turnover was increased compared to the prior year. This level of increase in turnover in stores again bucked many national retail and consumer spending trends, which is testament to the high quality of our products, customer service and in-store experience that we work so hard to provide.
Our e-commerce business kept its focus on profitability, ensuring the operation ran efficiently and demanding more from our marketing spend. Owing to the pressures in the market, we again managed our marketing spend, with an increase of around 1% and ensuring it was directed in the most effective way. Our e-commerce operation increased its sales by £6k (0%) to £15m, operating profit increased from a profit of £0.5m in 2024 to a profit of £0.9m in 2025.
Our gross margin increased by 201 of a percentage point, from 34.0% in 2024 to 36.1% this year. Our margin saw an increase this year relative to 2024, as last year we strategically adjusted pricing to optimise inventory levels and improve cash flow.
The Company remains focussed on controlling overheads and increasing efficiency. Our single largest cost is that of our staff, which accounts for over half of all our operating costs. We understand the importance of staffing our stores appropriately and recognise the importance of maintaining our high store standards and customer service levels.
The Company continues to explore and invest in new systems, technologies and ways of working to increase productivity and increase staff output right across the business, including in store, warehouse and office roles.
Despite many unavoidable cost increases, we were able to achieve a profit of £2.2m, an increase of £0.9m (66.9%) from last year.
Our total inventory holding has increased by £0.4m (2.6%) to £15.6m on 31 July 2025.
During the year, the ultimate parent company of the Company, Charlies Stores Holdings Limited acquired the freehold of a retail property in Cheltenham, with our new store opening in October 2025. To support this strategic investment, the Company secured an additional £7.3m in bank borrowing. We did not require any government-backed loans, nor did we defer rent or VAT payments during the period. Despite the significant capital outlay, we concluded the year with a positive cash surplus.
Page 1
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2025
In all business operations, risk management and process control are a priority, and the Board of Directors is ultimately responsible for considering major risks.
The following are key risks which can affect the Company’s net income:
Margin Erosion
We operate in an environment where pricing is transparent, and it is often easy for the customer to compare prices across different retailers. Additionally, the current global economic situation resulting in rising prices could lead to the erosion of profit margins in the short to medium term. We take a balanced approach that includes strategic pricing and a focus on maintaining strong relationships with suppliers so that we can remain competitive and protect our margins.
Supply Chain
The current geopolitical and global economic environment has increased uncertainty within the supply chain, while customer expectations for product availability remain high. The Company maintains strong relationships with suppliers across its broad product range to help ensure consistent stock availability.
Competition in our markets
The Company operates in a competitive market environment and the provision of new and great-value product ranges is key to our success. Customer care is a top priority, and the Company maintains strong relationships with customers by seeking to provide great service and responding to all customer feedback in a timely manner.
Decline in customer numbers
The Company is subject to fluctuations in customer numbers. We endeavour to ensure customer retention by regularly updating our product lines each season and by offering well-known branded products at competitive prices. The Company aims not only to provide good value products but also to sell a wide range of essential and staple products to ensure a strong sales foundation.
Foreign Exchange
The Company is exposed to currency transaction risk in relation to purchases made in US dollars and Euros. This risk is managed through ongoing market monitoring and, where considered appropriate, by purchasing foreign currency, holding cash balances in the relevant currencies, or entering into forward contracts to provide greater certainty over exchange rates.
Interest Rates
The Company has overdraft and loan facilities and is therefore exposed to interest rate risk on its borrowings. The bank remains satisfied with the company’s financial performance, and the directors do not consider there to be any risk of the facilities being withdrawn. Sensitivity analysis has been undertaken, and the Directors are confident that the Company can continue to meet its debt obligations even if interest rates increase beyond current levels.
The following are key risks which can affect the Company’s net income:
Margin Erosion
We operate in an environment where pricing is transparent, and it is often easy for the customer to compare prices across different retailers. Additionally, the current global economic situation resulting in rising prices could lead to the erosion of profit margins in the short to medium term. We take a balanced approach that includes strategic pricing and a focus on maintaining strong relationships with suppliers so that we can remain competitive and protect our margins.
Supply Chain
The current geopolitical and global economic environment has increased uncertainty within the supply chain, while customer expectations for product availability remain high. The Company maintains strong relationships with suppliers across its broad product range to help ensure consistent stock availability.
Competition in our markets
The Company operates in a competitive market environment and the provision of new and great-value product ranges is key to our success. Customer care is a top priority, and the Company maintains strong relationships with customers by seeking to provide great service and responding to all customer feedback in a timely manner.
Decline in customer numbers
The Company is subject to fluctuations in customer numbers. We endeavour to ensure customer retention by regularly updating our product lines each season and by offering well-known branded products at competitive prices. The Company aims not only to provide good value products but also to sell a wide range of essential and staple products to ensure a strong sales foundation.
Foreign Exchange
The Company is exposed to currency transaction risk in relation to purchases made in US dollars and Euros. This risk is managed through ongoing market monitoring and, where considered appropriate, by purchasing foreign currency, holding cash balances in the relevant currencies, or entering into forward contracts to provide greater certainty over exchange rates.
Interest Rates
The Company has overdraft and loan facilities and is therefore exposed to interest rate risk on its borrowings. The bank remains satisfied with the company’s financial performance, and the directors do not consider there to be any risk of the facilities being withdrawn. Sensitivity analysis has been undertaken, and the Directors are confident that the Company can continue to meet its debt obligations even if interest rates increase beyond current levels.
Page 2
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2025
The Company uses a range of KPIs to monitor and measure performance within the business on a regular basis, at both a top-level and division or store-specific level. The KPI’s reported below cover the whole business. The Company’s KPIs cover diverse areas of the business such as wage efficiency, productivity, and energy efficiency, the latter of which has been reported in the Director’s Report.
Customer experience is important to Charlies Stores, and it is what keeps our customers coming back time and time again. We want all our customers to be delighted with all aspects of the products and service they receive from us. All website customers are sent on-line customer satisfaction surveys from Trustpilot, to voluntarily complete. Store customers are also able to leave reviews of their experiences with Charlies Stores via that same platform.
Reviews are scored between 1- and 5-stars, with 1 being the lowest level and 5 being the highest level of customer satisfaction. Charlies Stores strives to get everything right first time but acknowledges that occasional issues can arise. Charlies Stores is proud to have maintained a trust score of at least 4.9 for the last 4 years and works extremely hard to maintain that high level of customer satisfaction. All poor reviews are investigated or responded to, to either get a better understanding of the issue and/or to find a satisfactory resolution with the customer.
Customer experience is important to Charlies Stores, and it is what keeps our customers coming back time and time again. We want all our customers to be delighted with all aspects of the products and service they receive from us. All website customers are sent on-line customer satisfaction surveys from Trustpilot, to voluntarily complete. Store customers are also able to leave reviews of their experiences with Charlies Stores via that same platform.
Reviews are scored between 1- and 5-stars, with 1 being the lowest level and 5 being the highest level of customer satisfaction. Charlies Stores strives to get everything right first time but acknowledges that occasional issues can arise. Charlies Stores is proud to have maintained a trust score of at least 4.9 for the last 4 years and works extremely hard to maintain that high level of customer satisfaction. All poor reviews are investigated or responded to, to either get a better understanding of the issue and/or to find a satisfactory resolution with the customer.
Page 3
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2025
The Board of Directors, in line with their duties under s172 of the Companies Act 2006, act in a way they consider would most likely be in the best interest of the Company taking into account the requirements of all stakeholders. Further information is included in the Directors’ Report.
Decision Making at the Board
All matters which are reserved for decision by the Directors are presented at Board meetings. Directors are briefed on any potential impacts and risks for our customers, employees and other stakeholders including our suppliers, the community and environment and how they are to be managed. The Directors take these factors into account before making a final decision which together they believe is in the best interests of the Company.
Stakeholders
Our key stakeholders are our employees, who are the heart of our purpose and work in service of our customers. We are focused on responding to the needs of, and building long term relationships with, our customers. Other key stakeholders are the producers and suppliers from whom we purchase goods and services, and the communities in which we operate.
Long term sustainability
We aim to make sufficient profits to sustain the Company’s commercial viability. This is balanced against the needs of our customers, employees and other stakeholders and the community to ensure we are conducting all our business relationships with integrity. The long-term sustainability of the Company is at the forefront of decision making, particularly in response to the challenging economic conditions in retail following the Coronavirus pandemic.
Employees
Our team members are fundamental to the delivery of our strategy. We aim to be a responsible employer in our approach to pay, benefits, and wellbeing. The health, safety, and welfare of our employees remain key priorities, and we are proud to be a member of the Retail Trust. Through this partnership, colleagues have access to wellbeing support, counselling services, and financial aid grants when required, helping managers to better support their teams.
Unfortunately, like much of the retail sector, we have seen an increase in incidents of customer abuse and theft since the end of the coronavirus pandemic. In response, we now offer more of our staff the option to wear body cameras, providing an additional layer of security and reassurance while working in store.
The Company is committed to ensuring that all employees understand its objectives and how they contribute to the delivery of these goals. We continue to invest in employee engagement to retain, develop, and attract the talent needed to support future growth and long-term success. Our policy is to consult with employees on matters affecting their interests and to share relevant operational, financial, and economic updates through regular meetings, bulletins, and reports. This approach helps to promote a shared understanding of the factors influencing the Company’s performance.
Decision Making at the Board
All matters which are reserved for decision by the Directors are presented at Board meetings. Directors are briefed on any potential impacts and risks for our customers, employees and other stakeholders including our suppliers, the community and environment and how they are to be managed. The Directors take these factors into account before making a final decision which together they believe is in the best interests of the Company.
Stakeholders
Our key stakeholders are our employees, who are the heart of our purpose and work in service of our customers. We are focused on responding to the needs of, and building long term relationships with, our customers. Other key stakeholders are the producers and suppliers from whom we purchase goods and services, and the communities in which we operate.
Long term sustainability
We aim to make sufficient profits to sustain the Company’s commercial viability. This is balanced against the needs of our customers, employees and other stakeholders and the community to ensure we are conducting all our business relationships with integrity. The long-term sustainability of the Company is at the forefront of decision making, particularly in response to the challenging economic conditions in retail following the Coronavirus pandemic.
Employees
Our team members are fundamental to the delivery of our strategy. We aim to be a responsible employer in our approach to pay, benefits, and wellbeing. The health, safety, and welfare of our employees remain key priorities, and we are proud to be a member of the Retail Trust. Through this partnership, colleagues have access to wellbeing support, counselling services, and financial aid grants when required, helping managers to better support their teams.
Unfortunately, like much of the retail sector, we have seen an increase in incidents of customer abuse and theft since the end of the coronavirus pandemic. In response, we now offer more of our staff the option to wear body cameras, providing an additional layer of security and reassurance while working in store.
The Company is committed to ensuring that all employees understand its objectives and how they contribute to the delivery of these goals. We continue to invest in employee engagement to retain, develop, and attract the talent needed to support future growth and long-term success. Our policy is to consult with employees on matters affecting their interests and to share relevant operational, financial, and economic updates through regular meetings, bulletins, and reports. This approach helps to promote a shared understanding of the factors influencing the Company’s performance.
Page 4
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2025
Charlies Gender Pay Gap report can be accessed via our web site: www.charlies.co.uk. As a company we are committed to improving all diversity, not just diversity of gender.
Customers and suppliers
Engagement with suppliers and customers is key to our success.
Customer experience is important to Charlies Stores, and it is what keeps our customers coming back time and time again. All website customers are sent on-line customer satisfaction surveys from Trustpilot, to voluntarily complete. All poor reviews are investigated or responded to, to either get a better understanding of the issue and/or to find a satisfactory resolution with the customer.
We work closely with our supply chain and take the appropriate action, when necessary, to prevent involvement in modern slavery, corruption, bribery, and breaches of competition law.
Other third parties that are of great importance to Charlies Stores include our professional advisers, bankers and our various regulators.
Financial stakeholders
The Company seeks to make information available to financial stakeholders, including our relationship bank, as part of information provided about and by the Company.
Community and environment
The Company takes all reasonable steps to minimise any detrimental impact that its operations may have on the environment. Directors routinely assess the impact of the Company’s operations on the community and environment and wider social responsibilities, and in particular how we comply with environmental legislation, pursue waste saving opportunities and react promptly to local community concerns.
As a Board of Directors, our intention is to behave responsibly and ensure that the management operate the business in a responsible manner, operating within the high standards of business conduct and good governance expected. The intention is to nurture our reputation, through the delivery of our objectives, that reflects our responsible behaviour.
Page 5
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2025
Business conduct
The Company aims to conduct all its business relationships with integrity and courtesy, and scrupulously to honour every business agreement.
This report was approved by the board and signed on its behalf.
Page 6
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 JULY 2025
The Directors present their report and the financial statements for the year ended 31 July 2025.
The Directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the Directors are required to:
∙select suitable accounting policies for the Company's financial statements and then apply them consistently;
∙make judgements and accounting estimates that are reasonable and prudent;
∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
∙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 to 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 profit for the year, after taxation, amounted to £2,165,860 (2024 - £1,306,003).
The Directors have declared a dividend of £Nil (2024: £11,525,870,).
The Directors who served during the year were:
Page 7
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2025
The Company’s greenhouse gas emissions and energy consumption are as follows:
We have followed the 2019 HM Government Environmental Reporting Guidelines. We have also used the GHG Reporting Protocol – Corporate Standard and have used the 2021 UK Government’s conversion factors for company reporting.
We closely monitor energy usage and ensure that infrastructure projects and the replacement of materials and systems consider energy efficiency. We are required to comply with the Governments energy assessment scheme (Energy Savings Opportunity Scheme) and have completed an energy audit to ensure our compliance with Phase III during this financial year. We will use the output from this assessment to help inform energy-efficient decisions and investments within the business.
The Company’s chosen intensity measurement ratios are total gross emissions in metric tonnes CO2e per employee, and total gross emissions in metric tonnes CO2e per £100,000 turnover:
We have followed the 2019 HM Government Environmental Reporting Guidelines. We have also used the GHG Reporting Protocol – Corporate Standard and have used the 2021 UK Government’s conversion factors for company reporting.
We closely monitor energy usage and ensure that infrastructure projects and the replacement of materials and systems consider energy efficiency. We are required to comply with the Governments energy assessment scheme (Energy Savings Opportunity Scheme) and have completed an energy audit to ensure our compliance with Phase III during this financial year. We will use the output from this assessment to help inform energy-efficient decisions and investments within the business.
The Company’s chosen intensity measurement ratios are total gross emissions in metric tonnes CO2e per employee, and total gross emissions in metric tonnes CO2e per £100,000 turnover:
Page 8
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2025
The auditors, WR Partners, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
Page 9
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CHARLIES STORES LIMITED
We have audited the financial statements of Charlies Stores Limited (the 'Company') for the year ended 31 July 2025, which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
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.
Page 10
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CHARLIES STORES LIMITED (CONTINUED)
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The Directors are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
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 Directors' Report.
Page 11
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CHARLIES STORES LIMITED (CONTINUED)
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 Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
The audit team obtained an understanding of the legal and regulatory frameworks that are applicable to the Company and determined that the most significant are those that relate to the reporting framework (FRS102 and the Companies Act 2006), the relevant tax compliance regulations, employment law, Health and Safety Regulations and the EU General Data Protection Regulation (GDPR).
We understood how the Company is complying with these frameworks by making enquiries of management and those responsible for legal and compliance procedures. We also reviewed board minutes to identify any recorded instances of irregularity or non compliance that might have a material impact on the financial statements.
We assessed the susceptibility of the Company's financial statements to material misstatement, including how fraud might occur by meeting with key management to understand where they considered there was susceptibility to fraud. Based on our understanding our procedures involved enquiries of management and those charged with governance, manual journal entry testing, cashbook reviews for large and unusual items and the challenge of significant accounting estimates used in preparing the financial statements.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
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 Auditors' Report.
Page 12
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CHARLIES STORES LIMITED (CONTINUED)
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 Auditors' 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.
for and on behalf of
Chartered Accountants
Statutory Auditors
Belmont House
Shrewsbury Business Park
Shropshire
SY2 6LG
Date:
Page 13
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 JULY 2025
Page 14
BALANCE SHEET
AS AT 31 JULY 2025
Page 15
BALANCE SHEET (CONTINUED)
AS AT 31 JULY 2025
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 18 to 36 form part of these financial statements.
Page 16
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JULY 2025
Page 17
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2025
The principal activity of Charlies Stores Limited (the Company) is that of the retail of general household goods. The Company operates in the UK and is a private company limited by shares and is incorporated and domiciled in the UK. The address of its registered office is Unit 7, Offa's Dyke Business Park, Buttington, Welshpool, Powys, SY21 8SS.
2.Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies (see note 3).
The following principal accounting policies have been applied:
The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
∙the requirements of Section 7 Statement of Cash Flows;
∙the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
∙the requirements of Section 33 Related Party Disclosures paragraph 33.7.
This information is included in the consolidated financial statements of Charlies Stores Holdings Limited as at 31 July 2024 and these financial statements may be obtained from Companies House.
The Company's forecasts and projections taking account of reasonable possible changes in trading performance, show that the Company is expected to operate within the levels of its current facilities.
After making enquiries, the Directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. The Company therefore continues to adopt the going concern basis in preparing its financial statements.
After making enquiries, the Directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. The Company therefore continues to adopt the going concern basis in preparing its financial statements.
Page 18
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2025
2.Accounting policies (continued)
Functional and presentation currency
Transactions and balances
Page 19
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2025
2.Accounting policies (continued)
Page 20
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2025
2.Accounting policies (continued)
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the methods detailed below.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
Page 21
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2025
2.Accounting policies (continued)
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.
The Company has elected to apply the recognition and measurement provisions of IFRS 9 Financial Instruments (as adopted by the UK Endorsement Board) with the disclosure requirements of Sections 11 and 12 and the other presentation requirements of FRS 102.
Financial instruments are recognised in the Company's Balance Sheet when the Company becomes party to the contractual provisions of the instrument.
Basic financial assets
Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.
Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.
Other financial assets
Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes
Page 22
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2025
2.Accounting policies (continued)
in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.
Basic financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Company after the deduction of all its liabilities.
Basic financial liabilities, which include trade and other creditors, bank loans and other loans are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.
Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.
Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.
Other financial instruments
Derivatives, including forward exchange contracts, futures contracts and interest rate swaps, are not classified as basic financial instruments. These are initially recognised at fair value on the date the derivative contract is entered into, with costs being charged to the profit or loss. They are subsequently measured at fair value with changes in the profit or loss.
Debt instruments that do not meet the conditions as set out in FRS 102 paragraph 11.9 are subsequently measured at fair value through the profit or loss. This recognition and measurement would also apply to financial instruments where the performance is evaluated on a fair value basis as with a documented risk management or investment strategy.
Page 23
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2025
The Company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. In the opinion of the Directors there are no estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities within the next financial year.
The whole of the turnover is attributable to retailing general household goods.
Page 24
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2025
Page 25
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2025
Page 26
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2025
There were no factors that may affect future tax charges.
Page 27
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2025
|
|
||||||
|
|
||||||
|
|
||||||
|
|
||||||
|
|
||||||
|
|
||||||
|
|
||||||
|
|
||||||
|
|
||||||
|
|
||||||
|
|
||||||
|
|
||||||
|
|
||||||
|
|
||||||
|
|
Page 28
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2025
14.Tangible fixed assets (continued)
|
|
|||
|
|
|||
|
|
|||
|
|
|||
|
|
|||
|
|
|||
|
|
|||
|
|
|||
|
|
|||
|
|
|||
|
|
|||
|
|
|||
|
|
|||
|
|
|||
|
|
Page 29
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2025
|
|
||
|
|
||
|
|
||
|
|
||
|
|
||
|
|
Page 30
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2025
The overdraft facility and bank loans are secured with a legal charge over the leasehold property and the following freehold properties:
- Market Street and Back Lane, Newtown, Powys
- Unit 2, Dyffryn Enterprise Park, Newtown, Powys
- Coed-Y-Dinas Farm, Welshpool, Powys
- Unit 7, Offa’s Dyke Business Park, Buttington, Welshpool, Powys
The interest rates charged on the above loans are disclosed within note 21.
- Market Street and Back Lane, Newtown, Powys
- Unit 2, Dyffryn Enterprise Park, Newtown, Powys
- Coed-Y-Dinas Farm, Welshpool, Powys
- Unit 7, Offa’s Dyke Business Park, Buttington, Welshpool, Powys
The interest rates charged on the above loans are disclosed within note 21.
Page 31
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2025
The overdraft facility and bank loans are secured with a legal charge over the leasehold property and the following leasehold properties freehold properties:
- Market Street and Back Lane, Newtown, Powys
- Unit 2, Dyffryn Enterprise Park, Newtown, Powys
- Coed-Y-Dinas Farm, Welshpool, Powys
- Unit 7, Offa’s Dyke Business Park, Buttington, Welshpool, Powys
The interest rates charged on the above loans are disclosed within note 21.
- Market Street and Back Lane, Newtown, Powys
- Unit 2, Dyffryn Enterprise Park, Newtown, Powys
- Coed-Y-Dinas Farm, Welshpool, Powys
- Unit 7, Offa’s Dyke Business Park, Buttington, Welshpool, Powys
The interest rates charged on the above loans are disclosed within note 21.
Page 32
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2025
Page 33
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2025
|
|
||
|
|
||
|
|
||
|
|
||
|
|
||
|
|
|
|
||
|
|
||
|
|
||
|
|
||
|
|
||
|
|
Page 34
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2025
Profit & loss account
A contingent liability exists with the parent Company, Charlies Stores Holdings Limited whereby there is a unlimited inter company composite guarantee between Charlies Stores Holdings Limited, Charlies Stores Limited and Charlies Ag & Turf Limited.
The Company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the Company in independently administered funds. The pension cost charge represents contributions payable by the Company to the funds and amounted to £316,691 (2024: £284,251). At the year end, accrued pension contributions amounted to £11,517 (2024: £11,657). There were no prepaid contributions.
Page 35
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2025
There is a balance within creditors of amounts owed to directors £Nil (2024: £98,064). There is a balance included within other creditors of amounts owed to directors of £1,072 (2024: £2,422).
There is a balance within other debtors of amounts owed by directors of £57,613 (2024: £Nil).
There is a balance within other debtors of amounts owed by directors of £57,613 (2024: £Nil).
The ultimate parent undertaking of the Company is Charlies Stores Holdings Limited, a Company which owns 100% of the issued share capital of the Company.
The ultimate controlling party is Mr C K Lloyd by virtue of his majority shareholding in Charlies Stores Holdings Limited.
The ultimate controlling party is Mr C K Lloyd by virtue of his majority shareholding in Charlies Stores Holdings Limited.
Page 36