The directors present the strategic report for the year ended 31 August 2025.
During the year, trading was impacted by a challenging UK economic environment, including continued inflationary pressures, increased interest rates and rising operating costs across the retail sector. Despite these conditions, the Group remained resilient and continued to trade profitably.
Group turnover for the year was £29.6m (2024: £29.5m), remaining broadly consistent with the prior year. Gross profit increased to £11.8m (2024: £10.5m), with the gross profit margin improving to 39.8% (2024: 35.6%). This reflects improved purchasing terms, tighter pricing discipline and enhanced margin management.
Group profit before taxation was £217k (2024: £594k), after recognising exceptional costs of £99.6k (2024: £44.3k) relating primarily to one-off costs associated with new store set-up. The improvement in trading margin was offset by cost pressures and higher financing costs, particularly due to increased bank loan interest charges in 2025, resulting in a reduction in profit before tax.
While profitability was lower than the prior year, the directors consider performance to be satisfactory in the context of prevailing economic conditions and increased finance costs.
The Group continues to operate a well-established portfolio of retail stores supported by a strong underlying asset base, including investment properties.
The Group has existing bank borrowings which are expected to be refinanced in the normal course of business following the approval of these financial statements. No matters were identified during the audit that indicate any issues with the Group’s financing arrangements.
In response to current market conditions, the Group has reduced its focus on expansion and does not intend to actively pursue new store openings in the near term. Management is instead focused on cost control, improving operational efficiency and maximising the performance of the existing store portfolio.
The directors have identified the following principal risks and uncertainties facing the Group:
Economic conditions – Ongoing inflation, higher interest rates and reduced consumer spending power may impact sales volumes and margins.
Cost pressures – Increases in wages, utilities, rent and supplier pricing may affect profitability if not effectively managed.
Financing and interest rate risk – The Group is exposed to interest rate movements on its borrowings and must maintain appropriate funding arrangements.
Supply chain risk – The Group relies on overseas suppliers, exposing it to potential disruption, delays and foreign exchange fluctuations.
Regulatory compliance – Changes in legislation, including employment and tax regulations, may increase compliance costs.
The directors monitor these risks on an ongoing basis and implement appropriate measures to mitigate their impact.
During the year, the Group’s strategy evolved from expansion to consolidation and efficiency.
While previous periods included investment in new store openings, the current focus is on:
improving the performance of the existing store base;
strengthening cost controls across operations;
managing overheads and supplier costs;
maintaining strong working capital discipline; and
enhancing operational efficiency.
This approach reflects a prudent response to the current economic environment and the need to preserve profitability and cash flow.
The directors monitor the Group’s performance using the following key financial indicators:
Turnover: £29.6m (2024: £29.5m)
Gross profit margin: 39.8% (2024: 35.6%)
Profit before tax: £217k (2024: £594k)
Net assets: £2.88m (2024: £2.53m)
These measures are reviewed regularly to assess performance and support decision-making.
Going concern and other matters
Having considered the forecast performance of the Group, the refinancing of the banking facilities, the lender's awareness of the covenant breaches at the reporting date and the improvement in covenant compliance demonstrated by the post year-end management accounts, the directors believe that the Group will continue to operate within its available funding arrangements and have therefore prepared the financial statements on a going concern basis.
After reviewing cash flow forecasts and projections, the directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. Accordingly, the financial statements have been prepared on a going concern basis.
On behalf of the board
The directors present their annual report and financial statements for the year ended 31 August 2025.
The results for the year are set out on page 9.
The profit for the year after taxation was £21,906 (2024: £496,901).
No ordinary dividends were paid. The directors do not recommend payment of a further dividend.
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
The Group manages its cash and borrowing requirements to ensure sufficient liquidity to meet its operational needs while minimising finance costs.
The Group is exposed to interest rate risk on its borrowings and cash deposits. Borrowings are typically at variable rates and therefore subject to fluctuations in market interest rates..
The Group also has exposure to foreign currency risk arising from purchases from overseas suppliers. Where appropriate, the Group may utilise forward exchange contracts to manage this exposure, although it does not operate a formal hedging policy.
The Group regularly reviews its financial risk profile and implements appropriate measures to manage these risks.
Affinia (Stratford) were appointed as auditor to the group and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.
The Group is not within the scope of the Streamlined Energy and Carbon Reporting (SECR) requirements as it is a private medium-sized company and does not meet the criteria of a large undertaking under the Companies Act 2006. Therefore, no energy and carbon information is disclosed.
We have audited the financial statements of Sam 99p Limited (the 'parent company') and its subsidiaries (the 'Group') for the year ended 31 August 2025 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company statement of cash flows 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
Material Uncertainty Related to Going Concern
We draw attention to Note 1.4 in the financial statements, which explains that the Group was in breach of certain financial covenants attached to its banking facilities as at 31 August 2025.
As described in Note 1.4, whilst management accounts prepared subsequent to the year end for the periods ended February 2026 and May 2026 indicate that the Group met the relevant covenant requirements at those dates, such information has not been audited or independently reviewed. Furthermore, at the date of our auditor's report, the Group remains dependent upon the continued support of its lender and formal confirmation regarding the lender's position in respect of the covenant breach at the reporting date has not been obtained.
These events and conditions, along with the other matters set out in Note 1.4, indicate that a material uncertainty exists that may cast significant doubt on the Group's ability to continue as a going concern.
Our opinion is not modified in respect of this matter.
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.
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 directors and other management, and from our commercial knowledge and experience of the retail 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 and data protection 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.
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;
enquiring of management as to actual and potential litigation and claims; and
reviewing correspondence with HMRC and reviewing for evidence of correspondence with legal advisors.
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 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 parent 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 parent 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 parent company and the parent 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.
As permitted by section 408 of the Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £205,274 (2024 - £400,930 profit).
Sam 99p Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 13 Cranbrook Road, Ilford, Essex, IG1 4DU.
The Group consists of Sam 99p Limited and all of its subsidiaries.
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
The consolidated financial statement present the result of the company and its subsidiary ("the Group") as they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full. Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.
The directors have assessed the Group's ability to continue as a going concern for a period of at least twelve months from the date of approval of these financial statements.
At 31 August 2025, the Group had net current liabilities of £5.24 million, cash balances of £65,260 and bank borrowings of £4.07 million. The Group was in breach of certain financial covenants relating to its banking facilities at the reporting date.
Subsequent to the year end, the banking facilities were refinanced. The covenant terms under the refinanced facilities are unchanged from those contained in the original agreement as at 31 August 2025 and have been considered as part of management's going concern assessment.
Subsequent to the year end, management prepared financial information for the periods ended February 2026 and May 2026 which indicated that the Group was compliant with the relevant covenant requirements at those dates. The February 2026 and May 2026 financial information comprises management accounts which have not been audited or independently reviewed.
The directors have prepared cash flow forecasts and trading projections which indicate that the Group will have sufficient resources to meet its obligations as they fall due for the foreseeable future. These forecasts are based on current trading performance and anticipated future results.
Having considered the forecast performance of the Group, the refinancing of the banking facilities, the lender's awareness of the covenant breaches at the reporting date and the improvement in covenant compliance demonstrated by the post year-end management accounts, the directors believe that the Group will continue to operate within its available funding arrangements and have therefore prepared the financial statements on a going concern basis.
However, the Group was in breach of certain financial covenants at the reporting date and evidence of covenant compliance subsequent to the year end is based on unaudited management information. Accordingly, whilst the directors consider it appropriate to prepare the financial statements on a going concern basis, these conditions indicate the existence of a material uncertainty which may cast significant doubt on the Group's ability to continue as a going concern.
The financial statements do not include any adjustments that would arise if the Group were unable to continue as a going concern.
Group
Turnover represents amounts receivable from the sale of goods, rental income, and the provision of services, stated net of value added tax, trade discounts and rebates.
Turnover is recognised when it is probable that economic benefits will flow to the Group and the amount of revenue can be measured reliably.
Sale of goods
Revenue from the sale of goods in retail stores is recognised at the point of sale, being the time at which the customer takes control of the goods and payment is received or receivable. This is typically when the transaction is completed at the till. Where customers have a right of return, a provision for expected returns is recognised based on historical experience.
Rental income
Rental income arising from operating leases is recognised on a straight-line basis over the lease term, unless another systematic basis is more representative of the time pattern in which the benefit from the leased asset is derived.
Rentals and service charges received in advance are included within deferred income and released to the income statement over the period to which they relate.
Intra-group transactions
Property rental transactions between Group companies are recognised in the individual financial statements as rental income and rental expense. In the consolidated financial statements, all intra-group income, expenses and balances are eliminated in full.
Intra-group management charges
The parent company may recharge management services to subsidiary undertakings on a cost basis. Such charges are recognised in the individual financial statements of the relevant entities. In the consolidated financial statements, all intra-group management charges and related costs are eliminated in full.
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 recognised in the profit and loss account.
Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.
In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the Group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
Entities in which the Group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.
At each reporting period end date, the Group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the group's balance sheet when the Group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets, 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.
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group 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 group after deducting all of its liabilities.
Basic financial liabilities, including creditors, bank loans, loans from fellow Group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future 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.
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
Equity instruments issued by the Group 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 Group.
The tax expense represents the sum of the tax currently payable and deferred tax.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The Group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is 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.
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the Group is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
In the application of the Group’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.
The fair value of investment properties has been determined based on valuations performed by an independent third-party external valuer. The valuations were prepared on an open market basis, with reference to market evidence of transaction prices for similar properties and/or professional valuations at other dates. The directors have assessed the appropriateness of these valuations at the reporting date by considering whether there have been any significant changes in market conditions or in the properties themselves since the valuation date, to ensure that the fair value estimates remain reasonable.
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
The Group makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, managements considered factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience.
The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economics lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement future investments, economic utilisation and the physical condition of the assets. See note 13 for the carrying amount of the leasehold improvements, plant and machinery, fixtures, fittings and equipment and motor vehicles, and note 1.7 for the useful economic lives for each class of assets.
Exceptional costs in the current year relate to one off costs regarding the establishment of new stores.
The average monthly number of persons (including directors) employed by the Group and company during the year was:
Their aggregate remuneration comprised:
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2024 - 2).
As total directors' remuneration was less than £200,000 in the current year, no disclosure is provided for that year.
The directors are considered to be key management personnel.
The actual charge 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:
As at 1 September 2024, the properties previously classified as investment properties ceased to meet the definition of investment property and were transferred accordingly. On the date of transfer, the properties had a fair value of £6,977,643, which became their deemed cost on reclassification.
At the year ended 31 August 2025, the Group recognised a revaluation increase on its freehold properties. The carrying amount of the properties was adjusted to fair value, resulting in a gain of £332,358 (2024: £nil), which was recognised in equity.
The fair value of the freehold properties was determined based on valuations performed by an independent external valuer. The valuations were prepared on an open market basis, with reference to market evidence of transaction prices for similar properties and/or professional valuations at other dates. The directors have considered the appropriateness of these valuations at the reporting date, including whether there have been any significant changes in market conditions or in the condition of the properties since the valuation date, and are satisfied that the fair value estimates remain appropriate.
As disclosed in note 13, as at 1 September 2024 the properties previously classified as investment properties ceased to meet the definition of investment property. On the date of transfer, the properties had a fair value of £6,977,643.
Details of the company's subsidiaries at 31 August 2025 are as follows:
The Group has financial assets and financial liabilities that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction price and are subsequently measured at amortised cost.
The carrying amounts of financial assets and financial liabilities measured at amortised cost are as follows:
2025 2024
£ £
Financial assets measured at amortised cost £2,262,082 £2,853,350
Financial liabilities measured at amortised cost £12,240,588 £12,109,067
Financial assets includes trade debtors, other debtors and cash at bank.
Financial liabilities: trade creditors, accruals, bank loans, directors loan account, other creditors and deferred taxation.
Included in other debtors is balance of £1,555,004 (2024: £1,809,167) due from related parties. Amounts owed by related parties are interest free and repayable on demand.
There is £1,217,898 (2024: £1,496,530) included in other creditors relating to advances provided by the directors. The loans bear no interest and are repayable on demand.
During the year, the Group received a loan of £35,000 (2024: £35,000) from Meeran Ltd, a company under common control. The balance is interest-free and repayable on demand.
The bank loans have been secure by a fixed and floating charge over the assets of Sam 99p Properties Limited.
The Group has three secured term loan facilities with Barclays Bank PLC totalling £4,400,000, comprising facilities of £600,000, £900,000 and £2,900,000 respectively.
The loans accrue interest on a monthly basis at a floating rate of Bank of England base rate plus 2.950% per annum.
The facilities are repayable as follows:
£600,000 facility: repayable on 19 June 2026
£900,000 facility: repayable on 2 August 2027
£2,900,000 facility: repayable on 21 January 2029
The loans are secured by legal charges over Group properties, together with Group guarantees and debentures where applicable.
The facilities are repayable by monthly instalments of principal and interest, with the remaining outstanding balances due in full at maturity.
As at 31 August 2025, the total outstanding balance of the term loan facilities was £4,072,366, (2024: £4,073,096).
Finance lease payments represent rentals payable by the company or Group for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 5 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the Group in an independently administered fund.
The Ordinary shares hold no restrictions on the distribution of dividends and the repayment of capital.
At the reporting end date the Group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
There have been no material events subsequent to the reporting date requiring disclosure.
At the balance sheet date, the Group was owed £812,958 (2024: £1,229,117) by City Heights One Limited, £615,595 (2024: £475,809) by City Heights Two Limited, £122,968 (2024: £77,574) by City Heights Three Limited and £3,483 (2024: £26,667) by Meeran Ltd, all companies under common control, with the balances being interest free and repayable on demand.
There is £1,217,898 (2024: £1,496,530) included in other creditors relating to advances provided by the directors. The loans bear no interest and are repayable on demand. Directors’ remuneration is disclosed separately in Note 8 in accordance with the Companies Act 2006.
During the year, the company traded with a related party company, Meeran Ltd. Transactions during the year included purchases of £3,096,169 (2024: £1,760,183). During the year, the Group received a loan of £35,000 (2024: £35,000) from Meeran Ltd, a company under common control. The balance is interest-free and repayable on demand.
Certain related parties, including close family members of key management personnel, were employed by the company during the year. The total amounts paid to these related parties were £184,207 (2024: £232,970).
All transactions were conducted on normal commercial terms and in the ordinary course of business.