Quality Save Limited - Limited company accounts 23.2

REGISTERED NUMBER: 06920326 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

AUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2023

FOR

QUALITY SAVE LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Income Statement

9

Other Comprehensive Income

10

Statement of Financial Position

11

Statement of Changes in Equity

12

Notes to the Financial Statements

13

DIRECTORS:

P Rowland

T. J. Morris Limited

REGISTERED OFFICE:

Portal Way

Axis Business Park

Liverpool

L11 0JA

REGISTERED NUMBER:

06920326 (England and Wales)

INDEPENDENT AUDITORS:

Harold Sharp Limited

Statutory Auditors and Chartered Accountants

5 Brooklands Place

Brooklands Road

Sale

Cheshire

M33 3SD

The directors present their strategic report for the year ended 30 June 2023.

REVIEW OF BUSINESS

The results for the year are set out on page 9. Turnover was £68.3m in the year ended 30 June 2023 compared to £84.4m in the fifteen months to 30 June 2022. Turnover remained largely consistent on a like for like basis despite the transfer of a number of stores as part of the acquisition in the year by Home Bargins. This was a result of increasing prices, seen across the sector, which the Company was forced to pass on to customers in some cases. The company operates in a competitive market and the directors are pleased with the company's continued profitability against a backdrop of continuing economic uncertainty.

The balance sheet on page 11 demonstrates the company's strong financial position and the directors are pleased to note that net current assets are £11.9m, up from £8.3m in financial period 2022.

The company manages its operations on a retail outlet basis. The company looks at sales, staff costs and net contribution from each outlet to assess performance. In common with many retail operations, operational costs continue to increase, however this has been offset by the reduction in store numbers in the current period.

PRINCIPAL RISKS AND UNCERTAINTIES

The company is exposed to risk as a result of various financial instruments including loans, cash and items, such as trade creditors that arise directly from its operations.

SECTION 172(1) STATEMENT

The directors of the company act in good faith to promote the success of the company, in a fair manner with high standards of business conduct. The company aim to provide its customers with quality brands at low prices is attained by the directors continued decision making on the basis of medium and long term strategy, to ensure they can obtain the best product to be retailed through the highest quality outlets, but at a price that is lower than its competitors.

In enabling the company to deliver on its aim, the directors acknowledge the importance of recognising the roles which company employees bring to the success of the company, through skill experience and commitment. Their wellbeing is a priority of the directors in the strategic planning for the future development of the company.

The directors acknowledge the importance of the company's customers to the continued success of the company and place great emphasis on customer experience whilst shopping with the company, in determining key operational decisions to be made.

The company supplier relationship is paramount to ensuring high quality product can be obtained on terms that can satisfy customer demand and the directors are mindful of the need to maintain the supplier relationship.

The directors are mindful of the impact the company operations may have upon the community environment and incorporate various activities and charitable donations into the strategy the company has, in order to maintain good community relations.

MARKET RISK

Market risk encompasses three types of risk being currency risk, interest rate risk and price risk. The company finances its operations through retained profits and as such the exposure to interest rate fluctuations is negligible given its surplus of cash. Prices are monitored to ensure that sufficient margin is attained to cover the costs of operation.

LIQUIDITY RISK

The company seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs and to invest cash assets safely and profitably.

CREDIT RISK

The company's principal financial assets are cash balances which are invested safely.

ON BEHALF OF THE BOARD:

P Rowland - Director

23 February 2024

The directors present their report with the financial statements of the company for the year ended 30 June 2023.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of a low cost goods retailer.

DIVIDENDS

Dividends were paid amounting to £90,000 on the A Ordinary shares. The directors do not recommend payment of a further dividend.

FUTURE DEVELOPMENTS

During the year the company was acquired by T.J. Morris Limited, as a result a number of stores were transferred to T. J. Morris and rebranded to Home Bargains stores. At present there is no commitment to rebrand all remaining stores and as such the director's intend to continue to operate Quality Save Limited as it has previously.

DIRECTORS

The directors who have held office during the period from 1 July 2022 to the date of this report are as follows:

D Rudkin - resigned 26 January 2023

P A Rudkin - resigned 26 January 2023

R P Rudkin - resigned 26 January 2023

P Rowland - appointed 26 January 2023

T. J. Morris Limited - appointed 26 January 2023

EMPLOYMENT OF DISABLED PERSONS

The company is committed to a policy of recruitment and promotion on the basis of aptitude and ability without discrimination of any kind. Management actively pursues both the employment of disabled persons whenever a suitable vacancy arises and the continued employment and retraining of employees who become disabled whilst employed by the company. Particular attention is given to the training, career development and promotion of disabled employees with a view to encouraging them to play an active role in the development of the company.

DISCLOSURE IN THE STRATEGIC REPORT

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 to be contained in the directors' report. It has done so in respect of future developments and financial instruments.

EMPLOYEE INVOLVEMENT

The company has maintained its commitment to employee involvement and sound employee relations. Meetings are held with management and staff to keep them informed of the latest developments and key objectives.

ENGAGEMENT WITH SUPPLIERS, CUSTOMERS AND OTHERS

The Company has always maintained open and fair relationships with its suppliers and operates within agreed terms.

Customer experience and confidence is key to the Company and the Company seeks to engage with customers through extensive social media information provision, activities and competitions. Customer feedback on products and stores are key to the Company's current and future offer and is always welcomed and taken into consideration.

The Company supports a number of charities and communities throughout the year, through various donations and other initiatives.

STATEMENT OF CORPORATE GOVERNANCE ARRANGEMENTS

During the period ended 30 June 2023 the Company did not adopt a corporate governance code on the basis that the Company was a family owned Company with a flat structure with commonality of ownership and leadership. The structure enables clear lines of communication to ensure accountability and transparency. The responsibilities of the directors are clear, given the simplicity of the structure and fairness is ensured through the supportive assistance the structure provides to the directors.

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;

-	state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;

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

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and 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 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, Harold Sharp Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

P Rowland - Director

23 February 2024

Opinion

We have audited the financial statements of Quality Save Limited (the 'company') for the year ended 30 June 2023 which comprise the Income Statement, Other 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 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 30 June 2023 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 five, 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:

As part of our audit we undertook a number of procedures designed to address our identified risk of fraud during the course of the audit:

- Identifying and testing journal entries and the overall accounting records, in particular those that were significant and unusual.

- Reviewing the financial statement disclosures and determining whether accounting policies have been appropriately applied.

- We considered the incentives and opportunities that exist, including any evidence of management bias, and tailored our risk assessment and subsequent testing accordingly.

- Tested key revenue lines and ensured that revenue recognition policies applied were suitable and consistently applied.

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 planning and performed our audit in accordance with the auditing standards. The primary responsibility for the prevention and detection of irregularities and fraud rests with the directors and management.

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.

Andrew Copping (Senior Statutory Auditor)

for and on behalf of Harold Sharp Limited

Statutory Auditors and Chartered Accountants

5 Brooklands Place

Brooklands Road

Sale

Cheshire

M33 3SD

23 February 2024

TURNOVER

4

68,290,927

84,366,995

Cost of sales

53,802,715

64,961,740

GROSS PROFIT

14,488,212

19,405,255

Administrative expenses

12,841,192

16,200,285

1,647,020

3,204,970

Other operating income

8,887

192,479

OPERATING PROFIT

6

1,655,907

3,397,449

Interest receivable and similar income

58,958

2,169

1,714,865

3,399,618

Interest payable and similar expenses

7

-

175

PROFIT BEFORE TAXATION

1,714,865

3,399,443

Tax on profit

8

626,553

904,603

PROFIT FOR THE FINANCIAL YEAR

1,088,312

2,494,840

PROFIT FOR THE YEAR

1,088,312

2,494,840

OTHER COMPREHENSIVE INCOME

Revaluation surplus

Income tax relating to other comprehensive income

-

-

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

1,088,312

2,494,840

FIXED ASSETS

Intangible assets

10

441,500

1,664,164

Tangible assets

11

2,088,596

3,758,021

2,530,096

5,422,185

CURRENT ASSETS

Stocks

12

1,212,324

2,555,971

Debtors

13

2,056,849

2,324,795

Cash at bank and in hand

11,024,488

6,729,415

14,293,661

11,610,181

CREDITORS

Amounts falling due within one year

14

2,423,636

3,304,006

NET CURRENT ASSETS

11,870,025

8,306,175

TOTAL ASSETS LESS CURRENT LIABILITIES

14,400,121

13,728,360

CREDITORS

Amounts falling due after more than one year

15

(237,733

)

(430,924

)

PROVISIONS FOR LIABILITIES

18

(19,784

)

(153,144

)

NET ASSETS

14,142,604

13,144,292

CAPITAL AND RESERVES

Called up share capital

19

12,198,966

12,198,966

Revaluation reserve

20

2,796

2,796

Retained earnings

20

1,940,842

942,530

SHAREHOLDERS' FUNDS

14,142,604

13,144,292

The financial statements were approved by the Board of Directors and authorised for issue on 23 February 2024 and were signed on its behalf by:

P Rowland - Director

Called up

share

Retained

Revaluation

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 April 2021

12,198,966

4,167,690

2,796

16,369,452

Changes in equity

Dividends

-

(5,720,000

)

-

(5,720,000

)

Total comprehensive income

-

2,494,840

-

2,494,840

Balance at 30 June 2022

12,198,966

942,530

2,796

13,144,292

Changes in equity

Dividends

-

(90,000

)

-

(90,000

)

Total comprehensive income

-

1,088,312

-

1,088,312

Balance at 30 June 2023

12,198,966

1,940,842

2,796

14,142,604

1.	STATUTORY INFORMATION

Quality Save Limited is a private company limited by shares, incorporated in England and Wales. The company's registered number is 06920326 and registered office is Portal Way, Axis Business Park, Gillmoss, Liverpool, L11 0JA.

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.

The financial statements have been prepared on a going concern basis, and represent the results of the individual entity. The functional and presentation currency is £ sterling.

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

•

the requirements of Section 7 Statement of Cash Flows;

•

the requirement of paragraph 3.17(d);

•

the requirement of paragraph 33.7.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense.

The cost of any unused holiday entitlement is recognised in the period in which the employee's services are received.

Turnover

Turnover represents sales of goods, excluding value added tax and revenue is recognised at the point the goods are sold to customers.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2013, is being amortised evenly over its estimated useful life of ten years.

Lease premium

Lease premiums are being amortised evenly over their estimated useful lives of fifty years and fifteen years.

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Land is not depreciated. Depreciation on other assets is charged so as to allocate the cost of assets less their residual value over their estimated useful lives and is provided on the following basis:

Freehold property

- between 1% and 10% on cost

Leasehold improvements

- between 10% and 20% on cost

Office equipment

- 25% reducing balance

Fixtures and fittings

- 25% reducing balance

Motor vehicles

- 25% reducing balance

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the income statement.

At each balance sheet date, the Company reviews the carrying amounts of its property, plant and equipment to determine whether there is any indication that any items of property, plant and equipment have suffered an impairment loss. If any such indication exists, the recoverable amount of an asset is estimated in order to determine the extent of the impairment loss, if any. Where it is not possible to estimate the recoverable amount of the asset, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. Impairment loss is recognised as an expense immediately.

Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, to the extent that the increased carrying amount does not exceed the carrying amount that would have been determined (net of depreciation) had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised as income immediately.

Land and buildings are held and used in the company's own activities at their revalued amounts. The revalued amounts equate to the fair value at the date of valuation, less any depreciation or impairment losses subsequently accumulated. Revaluations will be carried out regularly so that the carrying amounts do not materially differ from using the fair value at the date of the statement of financial position. Any revaluation increase is credited to the revaluation reserve. Any revaluation decrease is charged to the profit and loss account.

Stocks

Stock is valued at the lower of cost and net realisable value. Cost represents the cost price of goods and is based on discounted selling price. Net realisable value represents the price achieved for goods when sold. Provision is made for slow moving, obsolete or damaged stock where the net realisable value is less than cost.

Financial instruments

The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' of FRS 102 to all of its financial instruments.

Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets, which include trade debtors, other debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method. Financial assets classified as receivable within one year are not amortised.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities, including trade creditors, other creditors and director loan accounts, that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest.

Financial liabilities are derecognised when, and only when, the company's contractual obligations are discharged, cancelled, or they expire.

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 statement of financial position date.

Deferred tax

Deferred tax is recognised in respect of material timing differences that have originated but not reversed at the statement of financial position 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

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is shorter.

The interest element of these obligations is charged to the profit and loss account over the relevant period. The capital expenditure of the future payments is treated as a liability.

Rentals paid under operating leases are charged to the profit and loss account 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. The assets of the scheme are held separately from those of the company in an independently administered fund. Contributions payable for the year are charged in the profit and loss account.

Going concern

As set out in the strategic report, the directors believe the company is managing its business risks successfully. The company has made a profit after tax and dividends and continues to generate cash. Accordingly, they have a reasonable expectation the company has adequate resources to continue in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis of accounting in preparing the financial statements.

Operating lease incentives

The company has adopted the policy whereby the aggregate benefit of rent free periods is written off over the full period of the lease in accordance with FRS102.

Cash and cash equivalents

Cash at bank and in hand are basic financial assets and include cash in hand, deposits held at call with banks and other short-term liquid investments with original maturities of three months or less.

3.	CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINT

In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Provisions

A provision is recognised in the balance sheet when the entity has a present legal or constructive obligation as a result of a past event, that can be reliably measured and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are recognised at the best estimate of the amount required to settle the obligation at the reporting date.

4.

TURNOVER

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

An analysis of turnover by class of business is given below:

Period

1/4/21

Year Ended

to

30/6/23

30/6/22

£

£

Sale of goods

68,290,927

84,366,995

68,290,927

84,366,995

An analysis of turnover by geographical market is given below:

Period

1/4/21

Year Ended

to

30/6/23

30/6/22

£

£

United Kingdom

68,290,927

84,366,995

68,290,927

84,366,995

5.	EMPLOYEES AND DIRECTORS

Period

1/4/21

Year Ended

to

30/6/23

30/6/22

£

£

Wages and salaries

6,743,017

8,865,217

Social security costs

379,033

457,499

Other pension costs

142,112

117,862

7,264,162

9,440,578

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

Period

1/4/21

Year Ended

to

30/6/23

30/6/22

Administration

10

15

Retail

521

584

531

599

Period

1/4/21

Year Ended

to

30/6/23

30/6/22

£

£

Directors' remuneration

54,616

189,039

6.	OPERATING PROFIT

The operating profit is stated after charging:

Period

1/4/21

Year Ended

to

30/6/23

30/6/22

£

£

Other operating leases

1,326,241

1,889,035

Depreciation - owned assets

275,517

482,686

Loss on disposal of fixed assets

183,188

63,506

Goodwill amortisation

800,000

1,000,000

Lease premium amortisation

66,157

90,833

Auditors' remuneration

14,000

14,000

Taxation compliance services

12,000

12,000

Other non- audit services

118,320

127,800

7.

INTEREST PAYABLE AND SIMILAR EXPENSES

Period

1/4/21

Year Ended

to

30/6/23

30/6/22

£

£

Interest on corporation tax

-

175

8.

TAXATION

Analysis of the tax charge

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

Period

1/4/21

Year Ended

to

30/6/23

30/6/22

£

£

Current tax:

UK corporation tax

614,000

928,845

Deferred tax

12,553

(24,242

)

Tax on profit

626,553

904,603