Cherry Lane Retail Centres Limited 28/02/2022 iXBRL

Cherry Lane Retail Centres Limited 28/02/2022 iXBRL

CHERRY LANE RETAIL CENTRES LIMITED - Company Information

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Company registration number: 01603760
Cherry Lane Retail Centres Limited
Financial statements
28 February 2022
Cherry Lane Retail Centres Limited
Contents
Directors and other information
Strategic report
Directors report
Independent auditor's report to the members
Statement of comprehensive income
Statement of financial position
Statement of changes in equity
Notes to the financial statements
Cherry Lane Retail Centres Limited
Directors and other information
Directors D Rubins (Chairman)
N D Rubins
G E Moxon (Retired 31 March 2022)
P E Fairley (Appointed 31 March 2022)
Company number 01603760
Registered office Westbridge Lodge
Pendock Lane
Bradmore
Nottingham
NG11 6PQ
Auditor Wright Vigar Limited
Alexandra House
43 Alexandra Street
Nottingham
NG5 1AY
Bankers HSBC Bank plc
73 High Street
Watford
Herts WD17 2DS
Solicitors Freeth Cartwright LLP
80 Mount Street
Nottingham
NG1 6HH
Cherry Lane Retail Centres Limited
Strategic report
Year ended 28 February 2022
Business review and future plans
The company reported another substantial and upwardly trending turnover and profit despite continued difficult trading conditions.
The garden centres and destination stores continued to enjoy a good year of trading and the board looks forward to an extensive capital investment programme to focus on portfolio expansion and further site acquisitions in this opportune market place.
The outlook for the next 12 months regardless of external economic factors is optimistic with sustained turnover and profitable growth forecast.
Analysis of key performance indicators
The Board look at turnover, margins and profitability when monitoring business performance.
Organic growth and the establishment of recent property acquisitions has seen turnover increase by 39%. Margins are in line with the Board's expectations and the net profit before taxation was £6,299,259, an increase of 232% on the previous year.
The Board also consider key areas of the statement of financial position in order to understand the financial position of the company. At 28 February 2022, the net assets of the company had increased by 58% to £14,038,976.
The statement of financial position includes valuable fixtures, fittings and equipment at its portfolio of stores together with stocks held at those stores at the year end. These assets have been financed by inter-company loans from other QD Commercial Group Holdings group companies. The Board are satisfied that the company's statement of financial position is in good shape, and that the company is well placed to take advantage of improving trading conditions and further expansion in the foreseeable future.
Key business risks and uncertainties
The key business risks and uncertainties affecting the business of QD Commercial group, and hence Cherry Lane Retail Centres Limited as a wholly owned subsidiary, include its ability to continue its expansion, both geographically and in specific areas of trade. Competition from other retailers is also a source of future risk and uncertainty.
The group has been successful in recent years in expanding the volume of stocks sourced from abroad, including own brands. This activity exposes the group to certain foreign exchange fluctuations, but this risk has been largely eliminated by the forward purchasing of foreign currencies.
All of these risks impact, either directly or indirectly, the financial results and position of Cherry Lane Retail Centres Limited.
This report was approved by the board of directors on 25 November 2022 and signed on behalf of the board by:
N D Rubins
Director
Cherry Lane Retail Centres Limited
Directors report
Year ended 28 February 2022
The directors present their report and the financial statements of the company for the year ended 28 February 2022.
Directors
The directors who served the company during the year were as follows:
D Rubins (Chairman)
N D Rubins
G E Moxon (Retired 31 March 2022)
P E Fairley (Appointed 31 March 2022)
Dividends
The directors do not recommend the payment of a dividend.
Greenhouse gas emissions and energy consumption
The company's greenhouse gas emissions and energy consumption information is included within the consolidated disclosures reported within the group financial statements of QD Commercial Group Holdings Limited, and consequently no company specific information is contained within these accounts.
Employment of disabled persons
Full and fair consideration is given to applications for employment made by disabled persons, having regard to their particular abilities and career development is encouraged on the basis of their aptitude and ability. Employees becoming disabled will, wherever possible, be retained in employment and retrained if necessary.
Employee involvement
It is the company's policy to provide equal opportunities to all employees and this policy applies to existing and prospective employees. The company provides appropriate training at all levels and endeavours to assist employees to acquire skills and experience which enable them to fulfil their role and to develop their potential. The company is committed to communication with employees by keeping them informed of performance and progress through briefings by management and the directors.
Qualifying indemnity provision
The company takes out indemnity insurance on behalf of the directors.
Disclosure of information in the strategic report.
The directors have prepared a review of the business, together with a summary of the principal risks and uncertainties affecting the company, and these are detailed within the Strategic Report on pages 2 - 3. The report includes an explanation of the company's financial risk management policies.
Directors responsibilities statement
The directors are responsible for preparing the strategic report, directors report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and 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 judgments 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; 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.
Auditor
Each of the persons who is a director at the date of approval of this report confirms that:
- so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.
This report was approved by the board of directors on 25 November 2022 and signed on behalf of the board by:
N D Rubins
Director
Cherry Lane Retail Centres Limited
Independent auditor's report to the members of
Cherry Lane Retail Centres Limited
Year ended 28 February 2022
Opinion
We have audited the financial statements of Cherry Lane Retail Centres Limited (the 'company') for the year ended 28 February 2022 which comprise the statement of comprehensive income, statement of financial position, statement of changes in equity and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion, the financial statements: - give a true and fair view of the state of the company's affairs as at 28 February 2022 and of its profit for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and - have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other Information
The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the strategic report and the 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 has been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report. We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: - adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or - the financial statements are not in agreement with the accounting records and the returns; or - certain disclosures of directors' remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. 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: - Our approach included obtaining an understanding of the legal and regulatory frameworks that are applicable to the company and we determined those that are most significant. Based on the results of our risk assessment we designed audit procedures to identify non-compliance with such laws and regulations. The specific procedures included enquiry of management and those charged with governance around actual and potential litigation and claims. - In addition, and based on the results of our risk assessment we designed audit procedures to identify and address material misstatements in relation to fraud. Specifically we considered the risk of fraud through management override that may lead to a misappropriation of assets or inappropriate financial reporting. In response, we performed audit work over the risk of management override of controls, including testing journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias. 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. As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also: - Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. - Conclude on the appropriateness of the directors use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
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 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.
Steven Newman LLB BFP FCA (Senior Statutory Auditor)
For and on behalf of
Wright Vigar Limited
Chartered Accountants and Statutory Auditor
Alexandra House
43 Alexandra Street
Nottingham
NG5 1AY
25 November 2022
Cherry Lane Retail Centres Limited
Statement of comprehensive income
Year ended 28 February 2022
2022 2021
Note £ £
Turnover 4 68,475,426 49,265,554
Cost of sales ( 40,693,111) ( 29,646,150)
_________ _________
Gross profit 27,782,315 19,619,404
Distribution costs ( 9,507,679) ( 7,761,823)
Administrative expenses ( 12,795,954) ( 10,469,227)
Other operating income 5 820,577 1,324,357
_________ _________
Operating profit 6 6,299,259 2,712,711
Other interest receivable and similar income 8 - 38
_________ _________
Profit before taxation 6,299,259 2,712,749
Tax on profit 9 ( 1,136,370) ( 470,514)
_________ _________
Profit for the financial year and total comprehensive income 5,162,889 2,242,235
_________ _________
All the activities of the company are from continuing operations.
Cherry Lane Retail Centres Limited
Statement of financial position
28 February 2022
2022 2021
Note £ £ £ £
Fixed assets
Tangible assets 10 4,077,800 2,891,095
_________ _________
4,077,800 2,891,095
Current assets
Stocks 11 8,880,543 6,103,216
Debtors 12 1,091,883 11,004,776
_________ _________
9,972,426 17,107,992
Creditors: amounts falling due
within one year 13 ( 11,250) ( 11,123,000)
_________ _________
Net current assets 9,961,176 5,984,992
_________ _________
Total assets less current liabilities 14,038,976 8,876,087
_________ _________
Net assets 14,038,976 8,876,087
_________ _________
Capital and reserves
Called up share capital 16 18,000 18,000
Capital redemption reserve 17 5,000 5,000
Profit and loss account 17 14,015,976 8,853,087
_________ _________
Shareholders funds 14,038,976 8,876,087
_________ _________
These financial statements were approved by the board of directors and authorised for issue on 25 November 2022 , and are signed on behalf of the board by:
N D Rubins
Director
Company registration number: 01603760
Cherry Lane Retail Centres Limited
Statement of changes in equity
Year ended 28 February 2022
Called up share capital Capital redemption reserve Profit and loss account Total
£ £ £ £
At 1 March 2020 18,000 5,000 6,610,852 6,633,852
Profit for the year 2,242,235 2,242,235
_________ _________ _________ _________
Total comprehensive income for the year - - 2,242,235 2,242,235
_________ _________ _________ _________
At 28 February 2021 and 1 March 2021 18,000 5,000 8,853,087 8,876,087
Profit for the year 5,162,889 5,162,889
_________ _________ _________ _________
Total comprehensive income for the year - - 5,162,889 5,162,889
_________ _________ _________ _________
At 28 February 2022 18,000 5,000 14,015,976 14,038,976
_________ _________ _________ _________
Cherry Lane Retail Centres Limited
Notes to the financial statements
Year ended 28 February 2022
1. General information
The company is a private company limited by shares, registered in England and Wales. The address of the registered office and principal place of business is Westbridge Lodge, Pendock Lane, Bradmore, Nottingham, NG11 6PQ. The principal activity of the company is that of operating a chain of garden centres and destination stores under the Cherry Lane, QD Stores and Lathams of Potter Heigham brands . The stores predominantly sell gardening products, clothing and household goods.
2. Statement of compliance
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis.The financial statements are prepared in sterling, which is the functional currency of the entity rounded to the nearest £.The company has taken advantage of exemption from the requirement to produce a statement of cashflows because its results are included in the consolidated financial statements of the parent undertaking.
Going concern
Given the structure of the QD Commercial group, the company relies on the financial support of the parent undertaking, QD Commercial Group Holdings Limited to pay its debts as they fall due as the holding company holds the group's cash balances. The directors, who are also directors and shareholders of the parent company, have confirmed that QD Commercial Group Holdings Limited will not remove this support if to do so would cause the company undue financial hardship.The directors have further confirmed that this support will be provided for the foreseeable future, defined as being no less than twelve months from the date of signing the accounts. The directors conclude that it is appropriate for the accounts to be prepared on the going concern basis.
Judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements:Stock valuations - this involves judgements as to the extent to which provisions are required to account for the risk of obsolescence.
Turnover
Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably.
Taxation
The taxation expense represents the aggregate amount of current tax and deferred tax recognised in the reporting period. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively.Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to be paid or recovered using the tax rates and laws that have been enacted or substantively enacted at the reporting date.Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
Operating leases
Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.
Tangible assets
tangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated depreciation and impairment losses.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Short leasehold property - Straight line over the life of the lease
Fittings fixtures and equipment - 3 to 10 years straight line
If there is an indication that there has been a significant change in depreciation rate, useful life or residual value of tangible assets, the depreciation is revised prospectively to reflect the new estimates.
Impairment
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. When it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets.
Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, other costs incurred in bringing the stocks to their present location and condition and, where applicable, customs clearance and import duties.
Government grants
Government grants are recognised at the fair value of the asset received or receivable. Grants are not recognised until there is reasonable assurance that the company will comply with the conditions attaching to them and the grants will be received. Government grants are recognised using the accrual model and the performance model. Under the accrual model, government grants relating to revenue are recognised on a systematic basis over the periods in which the company recognises the related costs for which the grant is intended to compensate. Grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs are recognised in income in the period in which it becomes receivable. Grants relating to assets are recognised in income on a systematic basis over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income and not deducted from the carrying amount of the asset. Under the performance model, where the grant does not impose specified future performance-related conditions on the recipient, it is recognised in income when the grant proceeds are received or receivable. Where the grant does impose specified future performance-related conditions on the recipient, it is recognised in income only when the performance-related conditions have been met. Where grants received are prior to satisfying the revenue recognition criteria, they are recognised as a liability.
Financial instruments
A financial asset or a financial liability is recognised only when the company becomes a party to the contractual provisions of the instrument.
Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.
Debt instruments are subsequently measured at amortised cost.
Other financial instruments, including derivatives, are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.
Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately. For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets or either assessed individually or grouped on the basis of similar credit risk characteristics. Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund.
4. Turnover
Turnover arises from:
2022 2021
£ £
Sale of goods 68,475,426 49,265,554
_________ _________
The whole of the turnover is attributable to the principal activity of the company wholly undertaken in the United Kingdom.
5. Other operating income
2022 2021
£ £
Rental income 391,955 356,296
Government grant income 210,939 840,872
Other operating income 217,683 127,189
_________ _________
820,577 1,324,357
_________ _________
6. Operating profit
Operating profit is stated after charging/(crediting):
2022 2021
£ £
Depreciation of tangible assets 557,815 476,400
(Gain)/loss on disposal of tangible assets ( 3,333) -
Cost of stocks recognised as an expense 40,693,111 29,646,150
Operating lease rentals 1,716,923 1,710,000
_________ _________
Auditor's remuneration is borne by the parent company, QD Commercial Group Holdings Limited.
7. Staff costs
The average number of persons employed by the company during the year, including the directors, amounted to:
2022 2021
Office and management 106 103
Sales and distribution 659 547
_________ _________
765 650
_________ _________
The aggregate payroll costs incurred during the year were:
2022 2021
£ £
Wages and salaries 8,230,141 6,751,749
Social security costs 423,683 331,124
Other pension costs 112,091 96,675
_________ _________
8,765,915 7,179,548
_________ _________
8. Other interest receivable and similar income
2022 2021
£ £
Other interest receivable and similar income - 38
_________ _________
9. Tax on profit
Major components of tax expense
2022 2021
£ £
Current tax:
UK current tax expense 1,136,370 493,323
Adjustments in respect of previous periods - ( 22,809)
_________ _________
Tax on profit 1,136,370 470,514
_________ _________
Reconciliation of tax expense
The tax assessed on the profit for the year is lower than (2021: lower than) the standard rate of corporation tax in the UK of 19.00 % (2021: 19.00%).
2022 2021
£ £
Profit before taxation 6,299,259 2,712,749
_________ _________
Profit multiplied by rate of tax 1,196,859 515,422
Adjustments in respect of prior periods - ( 22,809)
Effect of expenses not deductible for tax purposes ( 37,870) ( 22,300)
Effect of capital allowances and depreciation ( 22,619) 201
_________ _________
Tax on profit 1,136,370 470,514
_________ _________
10. Tangible assets
Short leasehold property Fixtures, fittings and equipment Total
£ £ £
Cost
At 1 March 2021 1,772,268 3,540,742 5,313,010
Additions 1,173,814 570,706 1,744,520
_________ _________ _________
At 28 February 2022 2,946,082 4,111,448 7,057,530
_________ _________ _________
Depreciation
At 1 March 2021 233,657 2,188,258 2,421,915
Charge for the year 135,087 422,728 557,815
_________ _________ _________
At 28 February 2022 368,744 2,610,986 2,979,730
_________ _________ _________
Carrying amount
At 28 February 2022 2,577,338 1,500,462 4,077,800
_________ _________ _________
At 28 February 2021 1,538,611 1,352,484 2,891,095
_________ _________ _________
11. Stocks
2022 2021
£ £
Finished goods 8,880,543 6,103,216
_________ _________
12. Debtors
2022 2021
£ £
Amounts owed by group undertakings 1,091,883 11,004,776
_________ _________
13. Creditors: amounts falling due within one year
2022 2021
£ £
Amounts owed to group undertakings - 11,111,750
Other creditors 11,250 11,250
_________ _________
11,250 11,123,000
_________ _________
QD Commercial Group Holdings Limited holds a fixed and floating charge over all of the property and undertakings of the company as security for any debts owing to it from time to time.
14. Employee benefits
The amount recognised in profit or loss in relation to defined contribution plans was £ 112,091 (2021: £ 96,675 ).
15. Government grants
The amounts recognised in the financial statements for government grants are as follows:
2022 2021
£ £
Recognised in other operating income:
Government grants recognised directly in income 210,939 840,872
_________ _________
16. Called up share capital
Issued, called up and fully paid
2022 2021
No £ No £
Ordinary shares of £ 1.00 each 18,000 18,000 18,000 18,000
_________ _________ _________ _________
17. Reserves
Profit and loss account:This reserve records retained earnings and accumulated losses.Capital redemption reserve:This reserve records the nominal value of shares repurchased by the company.
18. Operating leases
The company as lessee
The total future minimum lease payments under non-cancellable operating leases are as follows:
£ £
Not later than 1 year 488,941 459,821
Later than 1 year and not later than 5 years 1,116,136 1,304,132
Later than 5 years 4,352,088 3,512,400
_________ _________
5,957,165 5,276,353
_________ _________
19. Contingent assets and liabilities
The company, together with its parent undertaking and fellow subsidiary undertakings, is jointly and severally liable for the combined value added tax liability of the group which, at 28 February 2022 totalled £757,516 (2021 - the company was owed £191,853). All of this amount specifically relates to QD Commercial Group Holdings Limited (the group holding company).
20. Related party transactions
The company has taken advantage of the exemption available from disclosing transactions and balances with other QD Commercial Group Holdings group companies.
21. Controlling party
QD Commercial Group Holdings Limited , registered in England and Wales, is the company's ultimate parent company. The registered office and principal place of business is that of Cherry Lane Retail Centres Limited . QD Commercial Group Holdings Limited is under the control of Mr D Rubins and Mr N D Rubins who are also directors of Cherry Lane Retail Centres Limited .QD Commercial Group Holdings Limited prepares the only consolidated financial statements in the group which include the results of Cherry Lane Retail Centres Limited . Copies of the consolidated financial statements are available from Companies House.