Tys Retail Ltd - Limited company accounts 23.1

REGISTERED NUMBER: 08432450 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTOR AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 28 FEBRUARY 2023

FOR

TYS RETAIL LTD

Page

Company Information

1

Strategic Report

2

Report of the Director

3

Report of the Independent Auditors

4

Income Statement

8

Other Comprehensive Income

9

Balance Sheet

10

Statement of Changes in Equity

11

Cash Flow Statement

12

Notes to the Cash Flow Statement

13

Notes to the Financial Statements

14

DIRECTOR:

T SIVARAJAH

REGISTERED OFFICE:

4 Church Street

Stilton

Peterborough

PE7 3RF

REGISTERED NUMBER:

08432450 (England and Wales)

SENIOR STATUTORY AUDITOR:

Tracey Richardson Bsc (Hons) FCA

AUDITORS:

Azets Audit Services

Ruthlyn House

90 Lincoln Road

Peterborough

PE1 2SP

The director presents his strategic report for the year ended 28 February 2023.

REVIEW OF BUSINESS

The results for the year are as shown in the attached financial statements. The profit before tax is considered satisfactory given the competitive market in which the company operates, the current economic climate and the refurbishments undertaken across the company's stores.

PRINCIPAL RISKS AND UNCERTAINTIES

The company operates in a very competitive environment, and we continue to offer excellent customer service and in store experience combined with a diverse range of products at very competitive prices to counter this threat.

DEVELOPMENT AND PERFORMANCE

The competitive market is a continuing risk for the company that the company manages by utilising Key Performance Indicators

KEY PERFORMANCE INDICATORS

The main Key Performance Indicators used to monitor the performance of the business include:

Sales by branches and margins by product group

Overheads compared to prior year

Stock days

ON BEHALF OF THE BOARD:

T SIVARAJAH - Director

30 November 2023

The director presents his report with the financial statements of the company for the year ended 28 February 2023.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of mini supermarket.

DIVIDENDS

No interim dividend was paid during the year. A final dividend of £135,000 per share was declared on 28 February 2023 and has been provided for in the accounts.

The total distribution of dividends for the year ended 28 February 2023 will be £270,000.

DIRECTOR

T SIVARAJAH held office during the whole of the period from 1 March 2022 to the date of this report.

STATEMENT OF DIRECTOR'S RESPONSIBILITIES

The director is responsible for preparing the Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is 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 director is 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 him to ensure that the financial statements comply with the Companies Act 2006. He is 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 director is 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 he has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, Azets Audit Services, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

T SIVARAJAH - Director

30 November 2023

Basis for qualified opinion

We have audited the financial statements of TYS Retail Ltd (the 'company') for the year ended 28 February 2023 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity, the 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).

We were not appointed as auditor of the company until after 28 February 2022. We were unable to satisfy ourselves by alternative means concerning the stock quantities held at 28 February 2022, which were included in the balance sheet at £450,600, by using other audit procedures.

Consequently we were unable to determine whether any adjustment to this amount was necessary.

In our opinion, except for the effects of the matter described in the Basis for Qualified Opinion paragraph above, the financial statements:

- Give a true and fair view of the state of the Company's affairs as at 28 February 2023 and 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 qualified opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (iss (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 director's 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 director 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 contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

As described in the basis for qualified opinion section of our report, we were unable to satisfy ourselves concerning the stock values of £450,600 held at 28 February 2023. We have concluded that where the other information refers to the stock balance or related balances such as cost of sales, it may be materially misstated for the same reason.

Opinions on other matters prescribed by the Companies Act 2006

Except for the possible effects of the matter described in the basis for qualified opinion section of our report, 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.

We were not appointed as auditor of the company until after 28 February 2022. We were unable to satisfy ourselves by alternative means concerning the stock quantities held at 28 February 2022, which were included in the balance sheet at £450,600, by using other audit procedures.

Consequently we were unable to determine whether any adjustment to this amount was necessary. In addition, were any adjustment to the stock balance to be required, the strategic report would also need to be amended.

Matters on which we are required to report by exception

In respect solely of the limitation on our work relating to stock, described above:

- we have not obtained all the information and explanations that we considered necessary for the purpose of our audit; and

- we were unable to determine whether adequate accounting records had been maintained.

Except for the matter described in the basis for qualified opinion section of our report, 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.

Arising solely from the limitation on the scope of our work relating to work in progress, referred to above:

- we have not obtained all the information and explanations that we considered necessary

for the purpose of our audit; and

- we were unable to determine whether adequate accounting records have been kept.

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

- 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.

Responsibilities of director

As explained more fully in the Statement of Director's Responsibilities set out on page three, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has 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.

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council's website, to detect material misstatements in respect of irregularities, including fraud.

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we 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. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

- Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud;

- Reviewing minutes of meetings of those charged with governance;

- Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the company through enquiry and inspection;

- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;

- Performing audit work over the risk of management bias and override of controls, including testing of 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 indicators of potential 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 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.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

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.

Tracey Richardson Bsc (Hons) FCA (Senior Statutory Auditor)

for and on behalf of Azets Audit Services

Ruthlyn House

90 Lincoln Road

Peterborough

PE1 2SP

30 November 2023

Azets

TURNOVER

3

11,449,316

11,379,446

Cost of sales

(8,770,544

)

(8,753,469

)

GROSS PROFIT

2,678,772

2,625,977

Administrative expenses

(2,276,385

)

(2,058,838

)

402,387

567,139

Other operating income

4

207,705

148,512

OPERATING PROFIT

6

610,092

715,651

Interest receivable and similar income

181

29

610,273

715,680

Interest payable and similar expenses

7

(275,888

)

(255,747

)

PROFIT BEFORE TAXATION

334,385

459,933

Tax on profit

8

(86,678

)

(95,021

)

PROFIT FOR THE FINANCIAL YEAR

247,707

364,912

PROFIT FOR THE YEAR

247,707

364,912

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

247,707

364,912

FIXED ASSETS

Tangible assets

10

1,305,824

859,635

CURRENT ASSETS

Stocks

11

691,513

450,600

Debtors

12

1,350,918

1,215,227

Cash at bank and in hand

626,815

569,869

2,669,246

2,235,696

CREDITORS

Amounts falling due within one year

13

(1,366,134

)

(872,460

)

NET CURRENT ASSETS

1,303,112

1,363,236

TOTAL ASSETS LESS CURRENT LIABILITIES

2,608,936

2,222,871

CREDITORS

Amounts falling due after more than one year

14

(319,867

)

(34,167

)

PROVISIONS FOR LIABILITIES

17

(187,582

)

(64,924

)

NET ASSETS

2,101,487

2,123,780

CAPITAL AND RESERVES

Called up share capital

18

2

2

Retained earnings

19

2,101,485

2,123,778

SHAREHOLDERS' FUNDS

2,101,487

2,123,780

The financial statements were approved by the director and authorised for issue on 30 November 2023 and were signed by:

T SIVARAJAH - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 March 2021

2

1,798,866

1,798,868

Changes in equity

Dividends

-

(40,000

)

(40,000

)

Total comprehensive income

-

364,912

364,912

Balance at 28 February 2022

2

2,123,778

2,123,780

Changes in equity

Dividends

-

(270,000

)

(270,000

)

Total comprehensive income

-

247,707

247,707

Balance at 28 February 2023

2

2,101,485

2,101,487

Cash flows from operating activities

Cash generated from operations

1

1,260,872

747,789

Interest paid

(15,999

)

(1,069

)

Interest element of hire purchase payments paid

(259,889

)

(254,678

)

Tax paid

(69,449

)

(78,894

)

Net cash from operating activities

915,535

413,148

Cash flows from investing activities

Purchase of tangible fixed assets

(583,859

)

(57,592

)

Sale of tangible fixed assets

1,258

-

Interest received

181

29

Net cash from investing activities

(582,420

)

(57,563

)

Cash flows from financing activities

Amount introduced by directors

2,844

9,013

Amount withdrawn by directors

(9,013

)

(189,770

)

Equity dividends paid

(270,000

)

(40,000

)

Net cash from financing activities

(276,169

)

(220,757

)

Increase in cash and cash equivalents

56,946

134,828

Cash and cash equivalents at beginning of year

2

569,869

435,041

Cash and cash equivalents at end of year

2

626,815

569,869

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

2023

2022

£

£

Profit before taxation

334,385

459,933

Depreciation charges

136,412

115,258

Finance costs

275,888

255,747

Finance income

(181

)

(29

)

746,504

830,909

Increase in stocks

(240,913

)

(123,167

)

(Increase)/decrease in trade and other debtors

(99,711

)

61,192

Increase/(decrease) in trade and other creditors

854,992

(21,145

)

Cash generated from operations

1,260,872

747,789

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 28 February 2023

28.2.23

1.3.22

£

£

Cash and cash equivalents

626,815

569,869

Year ended 28 February 2022

28.2.22

1.3.21

£

£

Cash and cash equivalents

569,869

435,041

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.3.22

Cash flow

At 28.2.23

£

£

£

Net cash

Cash at bank and in hand

569,869

56,946

626,815

569,869

56,946

626,815

Debt

Finance leases

-

(65,100

)

(65,100

)

Debts falling due within 1 year

(10,000

)

(88,023

)

(98,023

)

Debts falling due after 1 year

(34,167

)

(263,800

)

(297,967

)

(44,167

)

(416,923

)

(461,090

)

Total

525,702

(359,977

)

165,725

1.	STATUTORY INFORMATION

Tys Retail Ltd 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.

Going concern

The financial statements have been prepared on a going concern basis. The director has considered relevant information, including the annual budget, forecast future cash flows and the impact of subsequent events in making his assessment.

Significant judgements and estimates

In the course of preparing the financial statements, no judgements have been made in the process of applying accounting policies, other than those involving estimations that have had a significant effect on the amounts recognised in the financial statements.

Turnover

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

Tangible fixed assets

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

Improvements to property

-

10% on cost

Fixtures and fittings

-

15% on reducing balance

Motor vehicles

-

20% on reducing balance

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.

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.

Presentational currency and rounding

These financial statements have been presented in pound sterling, with figures rounded to the nearest pound.

3.

TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

4.	OTHER OPERATING INCOME

2023

2022

£

£

Commissions received

155,541

143,789

Insurance settlement

52,164

688

Government grants

-

4,035

207,705

148,512

5.	EMPLOYEES AND DIRECTORS

2023

2022

£

£

Wages and salaries

1,161,711

1,116,837

Social security costs

51,439

47,835

Other pension costs

24,303

13,884

1,237,453

1,178,556

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

2023

2022

Director

1

1

Management

7

7

Retail

91

87

99

95

2023

2022

£

£

Director's remuneration

12,000

11,991

Director's remuneration above was excluding benefits in kind of £2,919 in the 2022/23 tax year (2021/22 - £881)

6.	OPERATING PROFIT

The operating profit is stated after charging:

2023

2022

£

£

Depreciation - owned assets

136,412

115,258

Auditors' remuneration

8,500

5,500

7.

INTEREST PAYABLE AND SIMILAR EXPENSES

2023

2022

£

£

Bank loan interest

15,999

1,069

Hire purchase

868

-

Leasing

259,021

254,678

275,888

255,747

8.

TAXATION

Analysis of the tax charge

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

2023

2022

£

£

Current tax:

UK corporation tax

-

94,454

Deferred tax:

Deferred tax

122,658

567

Deferred tax asset

(35,980

)

-

Total deferred tax

86,678

567

Tax on profit

86,678

95,021

9.

DIVIDENDS

2023

2022

£

£

Ordinary shares of 1 each

Final

270,000

40,000

10.	TANGIBLE FIXED ASSETS

Improvements

Fixtures

to

and

Motor

property

fittings

vehicles

Totals

£

£

£

£

COST

At 1 March 2022

543,677

804,384

-

1,348,061

Additions

100,305

396,323

87,231

583,859

Disposals

-

(1,258

)

-

(1,258

)

At 28 February 2023

643,982

1,199,449

87,231

1,930,662

DEPRECIATION

At 1 March 2022

54,367

434,059

-

488,426

Charge for year

58,063

69,315

9,034

136,412

At 28 February 2023

112,430

503,374

9,034

624,838

NET BOOK VALUE

At 28 February 2023

531,552

696,075

78,197

1,305,824

At 28 February 2022

489,310

370,325

-

859,635

11.

STOCKS

2023

2022

£

£

Stocks

691,513

450,600

12.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2023

2022

£

£

Other debtors

1,250,640

1,211,318

Deferred tax asset

35,980

-

VAT

48,277

-

Prepayments

16,021

3,909

1,350,918

1,215,227

13.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2023

2022

£

£

Bank loans and overdrafts (see note 15)

98,023

10,000

Hire purchase contracts (see note 16)

43,200

-

Trade creditors

590,349

403,233

Tax

96,607

166,056

Social security and other taxes

11,152

10,464

VAT

-

25,129

Other creditors

335,415

243,065

Directors' loan accounts

2,844

9,013

Accrued expenses

188,544

5,500

1,366,134

872,460

14.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2023

2022

£

£

Bank loans (see note 15)

297,967

34,167

Hire purchase contracts (see note 16)

21,900

-

319,867

34,167

15.

LOANS

An analysis of the maturity of loans is given below:

2023

2022

£

£

Amounts falling due within one year or on demand:

Bank loans

98,023

10,000

Amounts falling due between two and five years:

Bank loans - 2-5 years

297,967

34,167