Chris Stevens Limited - Limited company accounts 23.1

REGISTERED NUMBER: 00743994 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

FOR

CHRIS STEVENS LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Income Statement

9

Other Comprehensive Income

10

Balance Sheet

11

Statement of Changes in Equity

12

Cash Flow Statement

13

Notes to the Cash Flow Statement

14

Notes to the Financial Statements

15

DIRECTORS:

Mr M Stefanou

Miss L Stefanou

SECRETARY:

Mr M Stefanou

REGISTERED OFFICE:

1341 High Road

Whetstone

London

N20 9HR

REGISTERED NUMBER:

00743994 (England and Wales)

AUDITORS:

AKS Advisers Limited, Statutory Auditor

Fourth & Fifth Floors

14-15 Lower Grosvenor Place

London

SW1W 0EX

INTRODUCTION

Chris Stevens Limited is a well-established business that has been trading since 1962. It is one of the largest paint distributors in England and offers a large range of bathroom wares, tiles, plumbing, heating and flooring supplies. The shareholders of the company are involved in the day to day running of the business and are therefore aware of the company's development, performance and position.

BUSINESS REVIEW

The company had another successful year, with a good level of turnover. Although gross profit margins have been squeezed due to increased purchase costs, the company is still showing a healthy gross profit percentage. The directors are satisfied that, through good planning and adequate financial resources, the company has will continue to trade well. The Company is confident of holding its own against new entrants to the market in the coming years.

PRINCIPAL RISKS AND UNCERTAINTIES

All risks and uncertainties are reviewed and considered and appropriate steps taken where required.

FINANCIAL KEY PERFORMANCE INDICATORS

The profit for the year before tax was £56,378 (2021: £497,277). Turnover for the year was £20,521,233 (2021:£19,214,624).

The total distribution of dividends for the year ended 31 December 2022 was £1,616,500.

OTHER KEY PERFORMANCE INDICATORS

Management turnover is minimal and staff are generally content. The shops are maintained to a good level of repair to ensure health and safety requirements are met and all employees are provided with a safe environment in which to work.

ON BEHALF OF THE BOARD:

Mr M Stefanou - Director

26 September 2023

The directors present their report with the financial statements of the company for the year ended 31 December 2022.

DIVIDENDS

The total distribution of dividends for the year ended 31 December 2022 was £1,616,500.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 January 2022 to the date of this report.

Mr M Stefanou

Miss L Stefanou

Other changes in directors holding office are as follows:

Mr P Stefanou - deceased 20 February 2022

STATEMENT OF DIRECTORS' RESPONSIBILITIES

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

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

AUDITORS

The auditors, AKS Advisers Limited, Statutory Auditor, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Mr M Stefanou - Director

26 September 2023

Opinion

We have audited the financial statements of Chris Stevens Limited (the 'company') for the year ended 31 December 2022 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 December 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

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

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

Opinions on other matters prescribed by the Companies Act 2006

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

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

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

Matters on which we are required to report by exception

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

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

-	adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

-	the financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of directors' remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page three, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

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

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

Irregularities, including fraud are instances of non-compliance with laws and regulations. We designed 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 irregularity including fraud is detailed below.

We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our: general commercial and sector experience; through verbal and written communications with those charged with governance and other management; and via inspection of the company's regulatory and legal correspondence.

We discussed with those charged with governance and other management the policies and procedures regarding compliance with laws and regulations.

We communicated identified laws and regulations to our team and remained alert to any indicators of non-compliance throughout the audit, we also specifically considered where and how fraud may occur within the company.

The potential effect of these laws and regulations on the financial statements varies considerably.

Firstly, the company is subject to laws and regulations that directly affect the financial statements, including: the company's constitution, relevant financial reporting standards; company law; tax legislation and distributable profits legislation and we assess the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.

Secondly the company is subject to many other laws and regulations where the consequences of non-compliance could have a material effect on the amounts or disclosures in the financial statements, for instance through the imposition of fines and penalties, or through losses arising from litigations. We identified the following areas as those most likely to have such an affect: employment legislation; health and safety legislation; trade legislation relevant to the sale of products related to the building and construction sector; data protection legislation; anti-bribery and corruption legislation.

International Auditing Standards (UK) limit the required procedures to identify non-compliance with these laws and regulations to the procedures, and no procedures over and above those already noted are required. These limited procedures did not identify any actual or suspected non-compliance which laws and regulations that could have a material impact on the financial statements.

In relation to fraud, we performed the following specific procedures in addition to those already noted:

- Challenging assumptions made by management in its significant accounting estimates in particular: depreciation and staff bonuses;

- Identifying and testing journal entries, in particular any entries posted with unusual nominal ledger account combinations, journal entries crediting cash or any revenue account, journal entries posted by senior management;

- Performing analytical procedures to identify unexpected movements in account balances which may be indicative of fraud;

- Ensuring that testing undertaken on both the performance statements, and the Balance Sheet includes a number of items selected on a random basis.

These procedures did not identify any actual or suspected fraudulent irregularity that could have a material impact on the financial statements.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with International Auditing Standards UK). For example, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the procedures that we are required to undertake would identify it. In addition, as with any audit, there remains a high risk of non-detection of irregularities, as these might involve collusion, forgery, intentional omissions, misrepresentation, or the override of internal controls. We are not responsible for preventing non-compliance with laws and regulations or fraud, and cannot be expected to detect non-compliance with all laws and regulations or every incidence of fraud.

As part of an audit in accordance with ISAs (UK), we exercise professional judgement 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 company's 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 Report of the Auditors 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 Report of the Auditors. 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 a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Ashish Kirtikumar Shah (Senior Statutory Auditor)

for and on behalf of AKS Advisers Limited, Statutory Auditor

Fourth & Fifth Floors

14-15 Lower Grosvenor Place

London

SW1W 0EX

26 September 2023

TURNOVER

20,521,233

19,214,624

Cost of sales

15,604,735

13,587,439

GROSS PROFIT

4,916,498

5,627,185

Administrative expenses

5,003,839

5,218,458

(87,341

)

408,727

Other operating income

112,780

87,621

OPERATING PROFIT

5

25,439

496,348

Interest receivable and similar income

30,939

929

PROFIT BEFORE TAXATION

56,378

497,277

Tax on profit

6

16,100

90,649

PROFIT FOR THE FINANCIAL YEAR

40,278

406,628

PROFIT FOR THE YEAR

40,278

406,628

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

40,278

406,628

FIXED ASSETS

Tangible assets

8

2,361,015

69,920

Investment property

9

-

2,322,215

2,361,015

2,392,135

CURRENT ASSETS

Stocks

10

3,155,791

3,105,565

Debtors

11

292,363

175,559

Cash at bank and in hand

9,794,392

8,210,061

13,242,546

11,491,185

CREDITORS

Amounts falling due within one year

12

7,082,093

3,785,630

NET CURRENT ASSETS

6,160,453

7,705,555

TOTAL ASSETS LESS CURRENT LIABILITIES

8,521,468

10,097,690

CAPITAL AND RESERVES

Called up share capital

14

200

200

Retained earnings

15

8,521,268

10,097,490

SHAREHOLDERS' FUNDS

8,521,468

10,097,690

The financial statements were approved by the Board of Directors and authorised for issue on 26 September 2023 and were signed on its behalf by:

Mr M Stefanou - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2021

200

9,690,862

9,691,062

Changes in equity

Total comprehensive income

-

406,628

406,628

Balance at 31 December 2021

200

10,097,490

10,097,690

Changes in equity

Dividends

-

(1,616,500

)

(1,616,500

)

Total comprehensive income

-

40,278

40,278

Balance at 31 December 2022

200

8,521,268

8,521,468

Cash flows from operating activities

Cash generated from operations

1

871,593

919,559

Government Grants

655

13,038

Tax paid

(90,614

)

(19,556

)

Net cash from operating activities

781,634

913,041

Cash flows from investing activities

Purchase of tangible fixed assets

(2,558

)

(31,719

)

Purchase of investment property

-

(2,322,215

)

Interest received

30,939

929

Net cash from investing activities

28,381

(2,353,005

)

Cash flows from financing activities

Amount introduced by directors

2,390,816

304,122

Equity dividends paid

(1,616,500

)

-

Net cash from financing activities

774,316

304,122

Increase/(decrease) in cash and cash equivalents

1,584,331

(1,135,842

)

Cash and cash equivalents at beginning of year

2

8,210,059

9,345,901

Cash and cash equivalents at end of year

2

9,794,390

8,210,059

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

31.12.22

31.12.21

£

£

Profit before taxation

56,378

497,277

Depreciation charges

33,678

23,307

Government grants

(655

)

(13,038

)

Finance income

(30,939

)

(929

)

58,462

506,617

Increase in stocks

(50,226

)

(164,784

)

(Increase)/decrease in trade and other debtors

(116,804

)

119,381

Increase in trade and other creditors

980,161

458,345

Cash generated from operations

871,593

919,559

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 December 2022

31.12.22

1.1.22

£

£

Cash and cash equivalents

9,794,392

8,210,061

Bank overdrafts

(2

)

(2

)

9,794,390

8,210,059

Year ended 31 December 2021

31.12.21

1.1.21

£

£

Cash and cash equivalents

8,210,061

9,345,903

Bank overdrafts

(2

)

(2

)

8,210,059

9,345,901

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.1.22

Cash flow

At 31.12.22

£

£

£

Net cash

Cash at bank and in hand

8,210,061

1,584,331

9,794,392

Bank overdrafts

(2

)

-

(2

)

8,210,059

1,584,331

9,794,390

Total

8,210,059

1,584,331

9,794,390

1.	STATUTORY INFORMATION

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

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Sale of goods

Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods has transferred to the buyer. This is usually at the point that the customer has paid for the purchase of the goods.

Tangible fixed assets

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

Freehold property

-

1% on cost

Plant and machinery

-

25% on reducing balance

Fixtures and fittings

-

25% on reducing balance

Motor vehicles

-

25% on reducing balance

Investment property

Investment properties are measured at fair value with changes recognised in profit and loss statement.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Taxation

Taxation for the year comprises current and deferred tax. 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.

Current or deferred taxation assets and liabilities are not discounted.

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

Deferred tax

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

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

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

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

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

Level of rounding

The figures presented in the financial statements are rounded to the nearest pound.

Going concern

The company's business activities, together with the factors likely to affect its future development, performance and position are set out in the directors' report on pages 2 to 3. The financial position of the company and its cash flows are also described in the aforementioned report.

At the year-end, the Statement of Financial Position shows assets in excess of liabilities of £8,521,468 (2021: £10,097,690). The company also had a cash balance of £9,794,392 (2021: 8,210,061). From the company's forecasts and projections, taking into account reasonably possible changes in trading performance, the directors have a reasonable expectation that the company will continue to increase this excess for the foreseeable future. Thus, they continue to adopt the going concern basis of accounting in preparing the annual financial statements.

3.	EMPLOYEES AND DIRECTORS

31.12.22

31.12.21

£

£

Wages and salaries

3,452,677

3,821,682

Social security costs

428,378

459,992

Other pension costs

67,752

66,735

3,948,807

4,348,409

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

31.12.22

31.12.21

Directors

2

3

Administration Staff

2

2

Shop Staff

50

52

54

57

4.	DIRECTORS' EMOLUMENTS

31.12.22

31.12.21

£

£

Directors' remuneration

1,571,067

2,104,500

Information regarding the highest paid director is as follows:

31.12.22

31.12.21

£

£

Emoluments etc

1,250,000

1,750,100

5.	OPERATING PROFIT

The operating profit is stated after charging:

31.12.22

31.12.21

£

£

Other operating leases

473,000

473,000

Depreciation - owned assets

33,678

23,307

Auditors' remuneration

15,500

9,000

6.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

31.12.22

31.12.21

£

£

Current tax:

UK corporation tax

16,100

90,614

HMRC Interest

-

35

Tax on profit

16,100

90,649

UK corporation tax has been charged at 19% (2021 - 19%).

Reconciliation of total tax charge included in profit and loss

The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

31.12.22

31.12.21

£

£

Profit before tax

56,378

497,277

Profit multiplied by the standard rate of corporation tax in the UK of 19% (2021 - 19%)

10,712

94,483

Effects of:

Capital allowances in excess of depreciation

-

(3,869

)

Depreciation in excess of capital allowances

5,388

-

Interest on Tax

-

35

Total tax charge

16,100

90,649

7.

DIVIDENDS

31.12.22

31.12.21

£

£

Ordinary shares of 1 each

Interim

1,616,500

-

8.	TANGIBLE FIXED ASSETS

Fixtures

Freehold

Plant and

and

Motor

property

machinery

fittings

vehicles

Totals

£

£

£

£

£

COST

At 1 January 2022

114,398

132,158

320,012

21,611

588,179

Additions

-

2,558

-

-

2,558

Reclassification/transfer

2,322,215

-

-

-

2,322,215

At 31 December 2022

2,436,613

134,716

320,012

21,611

2,912,952

DEPRECIATION

At 1 January 2022

114,398

111,054

271,223

21,584

518,259

Charge for year

15,558

5,916

12,197

7

33,678

At 31 December 2022

129,956

116,970

283,420

21,591

551,937

NET BOOK VALUE

At 31 December 2022

2,306,657

17,746

36,592

20

2,361,015

At 31 December 2021

-

21,104

48,789

27

69,920