REGISTERED NUMBER: 01022321 (England and Wales) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 JANUARY 2023 |
FOR |
K J SHORTIS LIMITED |
REGISTERED NUMBER: 01022321 (England and Wales) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 JANUARY 2023 |
FOR |
K J SHORTIS LIMITED |
K J SHORTIS LIMITED (REGISTERED NUMBER: 01022321) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
for the year ended 31 January 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 6 |
Consolidated Statement of Comprehensive Income | 9 |
Consolidated Balance Sheet | 10 |
Company Balance Sheet | 11 |
Consolidated Statement of Changes in Equity | 12 |
Company Statement of Changes in Equity | 13 |
Consolidated Cash Flow Statement | 14 |
Notes to the Consolidated Cash Flow Statement | 15 |
Notes to the Consolidated Financial Statements | 16 |
K J SHORTIS LIMITED |
COMPANY INFORMATION |
for the year ended 31 January 2023 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
SENIOR STATUTORY AUDITOR: | I A Barlow |
AUDITORS: |
Chartered Certified Accountants |
& Statutory Auditor |
124 Thorpe Road |
Norwich |
Norfolk |
NR1 1RS |
BANKERS: | Lloyds Bank Plc |
16 Gentleman's Walk |
Norwich |
Norfolk |
NR2 1LZ |
SOLICITORS: |
Flint Buildings |
1 Bedding Lane |
Norwich |
Norfolk |
NR3 1RG |
K J SHORTIS LIMITED (REGISTERED NUMBER: 01022321) |
GROUP STRATEGIC REPORT |
for the year ended 31 January 2023 |
The directors present their strategic report of the company and the group for the year ended 31 January 2023. |
CHAIRMAN'S REPORT |
The principal activity of the Group during the year was the retail trade of motor vehicle parts and accessories. |
FAIR REVIEW OF THE BUSINESS INCLUDING PRINCIPAL RISKS AND UNCERTAINTIES |
Margins and prices have continued to be squeezed, due to the record high shipping container costs which continued in the early part of our financial year, before falling to pre-covid prices in 2023. We also saw massive price rises from our supplier's passion for their cost increases. The Russian invasion of Ukraine in February 2022 brought additional price increases on petrol, diesel, gas and electricity. Fuel price have fallen from its record high, but electricity remains high. |
The sales for the latter half of the year picked up strongly. This is largely due to the shortage of new cars and the cost-of-living crisis meaning that people are keeping their cars for longer. The average car age is therefore increasing, which is in turn increasing the size of our main marketplace. It should also be remembered that some of this increase in sales is inflationary. |
Business risks: |
The UK market in the past year has become attractive to foreign investors coming and buying up established UK companies, due to the downturn in the UK economic conditions. This has presented the group's companies with their opportunities to purchase additional businesses. When the right opportunities arise, the group is able to take advantage of these opportunities, due to its strong financial position. The Company and the Group is able to afford and hold stocks when suitable deals become available via our good supplier and customer relationships. |
Competition: |
With the foreign investment in the UK market, this can lead to some customers looking to switch suppliers. We have always prided ourselves on being family owned and family run. This allows us to differentiate ourselves from the competition, which we feel our customers value. The Company and the Group manages this by continually assessing, reviewing and developing suitable systems and practises to ensure quality of service to maintain good customer relationships and competitive pricing. |
Regulatory compliance risk: |
The Company and the Group is subject to various laws and regulations set by local authorities and the Health and Safety Executive. The directors ensure that they are up to date and comply with all relevant areas of legislation to mitigate the risk of fines or other disciplinary actions. |
Financial risk management: |
The directors continually monitor the performance of the Company and the Group, trade debtors, stock levels and stock movements to minimise the financial risk of the business. In addition the Company and the Group ensures adequate financing facilities are in place to meet the requirements of the business, along with the strong financed strength of the group companies. |
K J SHORTIS LIMITED (REGISTERED NUMBER: 01022321) |
GROUP STRATEGIC REPORT |
for the year ended 31 January 2023 |
Financial key performance indicators: |
The directors consider that the key financial performance indicators are those that communicate the financial performance and strength of the Company and the Group as a whole, these being turnover, operating profit, profit after tax and shareholders' funds. |
31 January 2023 | 31 January 2022 |
£'000 | £'000 |
Turnover | 47,248 | 43,261 |
Operating profit | 2,600 | 3,564 |
Profit after tax | 2,175 | 2,860 |
Shareholders' funds | 46,130 | 44,893 |
Turnover has increased by £3,986,815. |
Operating profit has decreased by £963,434. |
Profit after tax has decreased by £685,317. |
Shareholders’ funds have increased by £1,237,196. |
The directors are very pleased with the results of the past year; however, the current year is very testing. Inflationary costs are increasing the cost of wages, with fuel and heating being highest. As with most industries, being able to recruit staff has been the biggest problem. We are fortunate that we have loyal key staff to drive the group forward, to assist the group in continuing to reinvest and expand the business. |
ON BEHALF OF THE BOARD: |
K J SHORTIS LIMITED (REGISTERED NUMBER: 01022321) |
REPORT OF THE DIRECTORS |
for the year ended 31 January 2023 |
The directors present their report with the financial statements of the company and the group for the year ended 31 January 2023. |
DIVIDENDS |
An interim dividend of £0.30 per share was paid in the year. A final dividend of £3.00 per share was |
declared and noted as a post balance sheet event. |
EVENTS SINCE THE END OF THE YEAR |
Information relating to events since the end of the year is given in the notes to the financial statements. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 February 2022 to the date of this report. |
EMPLOYEES |
Provision of information |
During the year the Group has continued its policy of managers holding regular briefing and dissemination meetings, to provide information and the opportunity for questions and discussions. |
Equal opportunities |
The Group is committed to providing equal opportunities to all employees irrespective of sex, marital status, creed, colour, race, ethnic origin or disability. The Group will continue to review and monitor this policy in order to ensure its application complies with relevant legislation and codes of practice. |
Future Developments |
Narrative for future developments is included within the strategic report. |
ENGAGEMENT WITH SUPPLIERS, CUSTOMERS AND OTHERS |
The directors have regarded the need to foster the Company's business relationships with suppliers, customers and others. We have built and maintained long standing business relationships with our suppliers and customers. We continue to consider the needs of our suppliers, customers and others with regards to the principle business decisions made throughout the year. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group 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 the group and of the profit or loss of the group 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
K J SHORTIS LIMITED (REGISTERED NUMBER: 01022321) |
REPORT OF THE DIRECTORS |
for the year ended 31 January 2023 |
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 group'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 group's auditors are aware of that information. |
AUDITORS |
The auditors, Sexty & Co, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
K J SHORTIS LIMITED |
Opinion |
We have audited the financial statements of K J Shortis Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 January 2023 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated 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 group's and of the parent company affairs as at 31 January 2023 and of the group's 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 group 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 group's and the parent 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 Group 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 Group 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 Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
K J SHORTIS LIMITED |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company 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 four, 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 group's and the parent 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 group or the parent 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 design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
- We have made enquiries with management regarding their procedures for complying with laws and regulations along with detecting and preventing fraud. We also review minutes of meetings and any published news articles to identify any instances of non-compliance with laws and regulations. |
- Evidence has been obtained where applicable. Written representation has been obtained to confirm there have been no breaches of laws and regulations. |
- The audit procedures are designed so that with reasonable assurance, material misstatements can be detected, including those relating to fraud. Specifically, areas which involve provisions or estimations have been tested where material. |
- We consider our approach to be reasonable for this entity. |
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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
K J SHORTIS LIMITED |
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. |
for and on behalf of |
Chartered Certified Accountants |
& Statutory Auditor |
124 Thorpe Road |
Norwich |
Norfolk |
NR1 1RS |
K J SHORTIS LIMITED (REGISTERED NUMBER: 01022321) |
CONSOLIDATED |
STATEMENT OF COMPREHENSIVE |
INCOME |
for the year ended 31 January 2023 |
2023 | 2022 |
Notes | £'000 | £'000 |
TURNOVER | 47,248 | 43,262 |
Cost of sales | 23,814 | 21,351 |
GROSS PROFIT | 23,434 | 21,911 |
Administrative expenses | 20,839 | 18,396 |
2,595 | 3,515 |
Other operating income | 4 | 48 |
OPERATING PROFIT | 5 | 2,599 | 3,563 |
Interest receivable and similar income | 257 | 51 |
PROFIT BEFORE TAXATION | 2,856 | 3,614 |
Tax on profit | 7 | 682 | 754 |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME |
Movement on revalued properties | - | (57 | ) |
Income tax relating to other comprehensive income |
- |
2 |
OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX |
- |
(55 |
) |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
2,174 |
2,805 |
Profit attributable to: |
Owners of the parent | 2,174 | 2,860 |
Total comprehensive income attributable to: |
Owners of the parent | 2,174 | 2,805 |
K J SHORTIS LIMITED (REGISTERED NUMBER: 01022321) |
CONSOLIDATED BALANCE SHEET |
31 January 2023 |
2023 | 2022 |
Notes | £'000 | £'000 | £'000 | £'000 |
FIXED ASSETS |
Intangible assets | 10 | 1,768 | 843 |
Tangible assets | 11 | 18,895 | 18,285 |
Investments | 12 | - | - |
20,663 | 19,128 |
CURRENT ASSETS |
Stocks | 13 | 8,285 | 7,857 |
Debtors | 14 | 2,737 | 2,322 |
Cash at bank and in hand | 21,350 | 22,260 |
32,372 | 32,439 |
CREDITORS |
Amounts falling due within one year | 15 | 6,587 | 6,536 |
NET CURRENT ASSETS | 25,785 | 25,903 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
46,448 |
45,031 |
PROVISIONS FOR LIABILITIES | 17 | 319 | 138 |
NET ASSETS | 46,129 | 44,893 |
CAPITAL AND RESERVES |
Called up share capital | 18 | 247 | 247 |
Revaluation reserve | 19 | 385 | 385 |
Retained earnings | 19 | 45,497 | 44,261 |
SHAREHOLDERS' FUNDS | 46,129 | 44,893 |
The financial statements were approved by the Board of Directors and authorised for issue on 19 October 2023 and were signed on its behalf by: |
Mr R J Shortis - Director |
K J SHORTIS LIMITED (REGISTERED NUMBER: 01022321) |
COMPANY BALANCE SHEET |
31 January 2023 |
2023 | 2022 |
Notes | £'000 | £'000 | £'000 | £'000 |
FIXED ASSETS |
Intangible assets | 10 |
Tangible assets | 11 |
Investments | 12 |
CURRENT ASSETS |
Debtors | 14 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 15 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
PROVISIONS FOR LIABILITIES | 17 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 18 |
Revaluation reserve | 19 |
Retained earnings | 19 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 1,196 | 1,202 |
The financial statements were approved by the Board of Directors and authorised for issue on |
K J SHORTIS LIMITED (REGISTERED NUMBER: 01022321) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
for the year ended 31 January 2023 |
Called up |
share | Retained | Revaluation | Total |
capital | earnings | reserve | equity |
£'000 | £'000 | £'000 | £'000 |
Balance at 1 February 2021 | 247 | 41,536 | 1,243 | 43,026 |
Changes in equity |
Dividends | - | (938 | ) | - | (938 | ) |
Total comprehensive income | - | 3,663 | (858 | ) | 2,805 |
Balance at 31 January 2022 | 247 | 44,261 | 385 | 44,893 |
Changes in equity |
Dividends | - | (938 | ) | - | (938 | ) |
Total comprehensive income | - | 2,174 | - | 2,174 |
Balance at 31 January 2023 | 247 | 45,497 | 385 | 46,129 |
K J SHORTIS LIMITED (REGISTERED NUMBER: 01022321) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
for the year ended 31 January 2023 |
Called up |
share | Retained | Revaluation | Total |
capital | earnings | reserve | equity |
£'000 | £'000 | £'000 | £'000 |
Balance at 1 February 2021 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - | ( |
) |
Balance at 31 January 2022 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - |
Balance at 31 January 2023 |
K J SHORTIS LIMITED (REGISTERED NUMBER: 01022321) |
CONSOLIDATED CASH FLOW STATEMENT |
for the year ended 31 January 2023 |
2023 | 2022 |
Notes | £'000 | £'000 |
Cash flows from operating activities |
Cash generated from operations | 1 | 2,703 | 3,376 |
Tax paid | (678 | ) | (655 | ) |
Net cash from operating activities | 2,025 | 2,721 |
Cash flows from investing activities |
Purchase of intangible fixed assets | (1,084 | ) | (450 | ) |
Purchase of tangible fixed assets | (1,386 | ) | (1,475 | ) |
Sale of tangible fixed assets | 216 | 462 |
Sale of investment property | - | 458 |
Interest received | 257 | 51 |
Net cash from investing activities | (1,997 | ) | (954 | ) |
Cash flows from financing activities |
Equity dividends paid | (938 | ) | (938 | ) |
Net cash from financing activities | (938 | ) | (938 | ) |
(Decrease)/increase in cash and cash equivalents | (910 | ) | 829 |
Cash and cash equivalents at beginning of year |
2 |
22,260 |
21,431 |
Cash and cash equivalents at end of year |
2 |
21,350 |
22,260 |
K J SHORTIS LIMITED (REGISTERED NUMBER: 01022321) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
for the year ended 31 January 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2023 | 2022 |
£'000 | £'000 |
Profit before taxation | 2,856 | 3,614 |
Depreciation charges | 794 | 741 |
Profit on disposal of fixed assets | (94 | ) | (536 | ) |
Finance income | (257 | ) | (51 | ) |
3,299 | 3,768 |
Increase in stocks | (428 | ) | (750 | ) |
Increase in trade and other debtors | (415 | ) | (558 | ) |
Increase in trade and other creditors | 247 | 916 |
Cash generated from operations | 2,703 | 3,376 |
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 January 2023 |
31.1.23 | 1.2.22 |
£'000 | £'000 |
Cash and cash equivalents | 21,350 | 22,260 |
Year ended 31 January 2022 |
31.1.22 | 1.2.21 |
£'000 | £'000 |
Cash and cash equivalents | 22,260 | 21,431 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.2.22 | Cash flow | At 31.1.23 |
£'000 | £'000 | £'000 |
Net cash |
Cash at bank and in hand | 22,260 | (910 | ) | 21,350 |
22,260 | (910 | ) | 21,350 |
Total | 22,260 | (910 | ) | 21,350 |
K J SHORTIS LIMITED (REGISTERED NUMBER: 01022321) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
for the year ended 31 January 2023 |
1. | STATUTORY INFORMATION |
K J Shortis 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. |
The presentation currency of the financial statements is the Pound Sterling (£) rounded to nearest £. |
2. | STATEMENT OF COMPLIANCE |
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. |
3. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Basis of consolidation |
The group financial statements consolidate the financial statements of the company and all subsidiaries for the financial period using acquisition accounting. |
Turnover |
Turnover represents net invoiced sales of goods, excluding value added tax. |
Goodwill |
Goodwill represents the excess of cost of acquisition over the fair value of the separable net assets of businesses acquired. Goodwill is amortised through the profit and loss account in equal instalments over its estimated useful life of 10 years. |
Tangible fixed assets |
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life. |
Freehold buildings | 2% straight line basis |
Leasehold property | Over the term of the lease |
Fixtures, fittings, office equipment, plant and machinery | 10-50% straight line basis |
Motor vehicles | 25% straight line basis |
Stocks |
Stocks are stated at the lower of cost and net realisable value using the average cost method, after making due allowances for obsolete and slow moving items. |
Cost comprises the average cost of all purchases. |
To reflect market conditions and in accordance with good accounting practice all rebates have been taken into account. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Statement of Comprehensive Income, 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. |
K J SHORTIS LIMITED (REGISTERED NUMBER: 01022321) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 January 2023 |
3. | ACCOUNTING POLICIES - continued |
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 parent company operates a money purchase scheme for directors. The assets of the scheme are invested and managed independently of the finances of the group. Contributions payable for the year are charged in the profit and loss account. |
The group operates a money purchase pension scheme for other employees. Contributions payable for the year are charged in the profit and loss account. |
Leasing commitments |
The annual rentals due on operating leases are charged to the profit and loss account on a straight line basis over the term of the lease. |
Investment property |
Investment property is shown at fair value. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss. |
4. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
£'000 | £'000 |
Wages and salaries | 13,649 | 12,433 |
Social security costs | 1,203 | 1,045 |
Other pension costs | 378 | 358 |
15,230 | 13,836 |
The average number of employees during the year was as follows: |
2023 | 2022 |
Sales and administration - Group | 598 | 559 |
Sales and administration - Parent | 3 | 3 |
2023 | 2022 |
£ | £ |
Directors' remuneration | 154,771 | 144,975 |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes | 1 | 1 |
K J SHORTIS LIMITED (REGISTERED NUMBER: 01022321) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 January 2023 |
5. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2023 | 2022 |
£'000 | £'000 |
Depreciation - owned assets | 654 | 639 |
Profit on disposal of fixed assets | (94 | ) | (536 | ) |
Goodwill amortisation | 159 | 139 |
Rents received | 345 | 293 |
Operating leases - land and buildings | (434 | ) | (384 | ) |
6. | AUDITORS' REMUNERATION |
2023 | 2022 |
£'000 | £'000 |
Fees payable to the company's auditors and their associates for the audit of the company's financial statements |
57 |
49 |
7. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2023 | 2022 |
£'000 | £'000 |
Current tax: |
UK corporation tax | 548 | 744 |
Under/(over) provision in prior year | (35 | ) | 7 |
Total current tax | 513 | 751 |
Deferred tax | 169 | 3 |
Tax on profit | 682 | 754 |
K J SHORTIS LIMITED (REGISTERED NUMBER: 01022321) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 January 2023 |
7. | TAXATION - continued |
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: |
2023 | 2022 |
£'000 | £'000 |
Profit before tax | 2,856 | 3,614 |
Profit multiplied by the standard rate of corporation tax in the UK of 19 % (2022 - 19 %) |
543 |
687 |
Effects of: |
Depreciation in excess of capital allowances | 10 | 62 |
Adjustments to tax charge in respect of previous periods | (21 | ) | 7 |
Profit on disposal of assets | (24 | ) | (102 | ) |
Rounding provision | 4 | 2 |
Deferred tax | 169 | 3 |
Depreciation write back on reclassification | - | (7 | ) |
Gain on disposal of properties | - | 102 |
Total tax charge | 681 | 754 |
Tax effects relating to effects of other comprehensive income |
There were no tax effects for the year ended 31 January 2023. |
2022 |
Gross | Tax | Net |
£'000 | £'000 | £'000 |
Movement on revalued properties | (57 | ) | 2 | (55 | ) |
8. | INDIVIDUAL STATEMENT OF COMPREHENSIVE INCOME |
As permitted by Section 408 of the Companies Act 2006, the Statement of Comprehensive Income of the parent company is not presented as part of these financial statements. |
9. | DIVIDENDS |
2023 | 2022 |
£'000 | £'000 |
Ordinary shares of £1 each |
Final | 864 | 864 |
Interim | 74 | 74 |
938 | 938 |
K J SHORTIS LIMITED (REGISTERED NUMBER: 01022321) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 January 2023 |
10. | INTANGIBLE FIXED ASSETS |
Group |
Goodwill |
£'000 |
COST |
At 1 February 2022 | 2,774 |
Additions | 1,084 |
At 31 January 2023 | 3,858 |
AMORTISATION |
At 1 February 2022 | 1,931 |
Amortisation for year | 159 |
At 31 January 2023 | 2,090 |
NET BOOK VALUE |
At 31 January 2023 | 1,768 |
At 31 January 2022 | 843 |
11. | TANGIBLE FIXED ASSETS |
Group |
Freehold | Short | Long |
property | leasehold | leasehold |
£'000 | £'000 | £'000 |
COST OR VALUATION |
At 1 February 2022 | 17,322 | 216 | 67 |
Additions | 183 | - | - |
Disposals | - | (51 | ) | - |
At 31 January 2023 | 17,505 | 165 | 67 |
DEPRECIATION |
At 1 February 2022 | 2,298 | 210 | 13 |
Charge for year | 190 | - | 1 |
Eliminated on disposal | - | (51 | ) | - |
At 31 January 2023 | 2,488 | 159 | 14 |
NET BOOK VALUE |
At 31 January 2023 | 15,017 | 6 | 53 |
At 31 January 2022 | 15,024 | 6 | 54 |
K J SHORTIS LIMITED (REGISTERED NUMBER: 01022321) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 January 2023 |
11. | TANGIBLE FIXED ASSETS - continued |
Group |
Fixtures,fittings, |
plant |
Investment | and | Motor |
properties | machinery | vehicles | Totals |
£'000 | £'000 | £'000 | £'000 |
COST OR VALUATION |
At 1 February 2022 | 2,161 | 2,389 | 1,607 | 23,762 |
Additions | 331 | 304 | 568 | 1,386 |
Disposals | - | (372 | ) | (313 | ) | (736 | ) |
At 31 January 2023 | 2,492 | 2,321 | 1,862 | 24,412 |
DEPRECIATION |
At 1 February 2022 | 3 | 2,041 | 912 | 5,477 |
Charge for year | - | 132 | 331 | 654 |
Eliminated on disposal | - | (357 | ) | (206 | ) | (614 | ) |
At 31 January 2023 | 3 | 1,816 | 1,037 | 5,517 |
NET BOOK VALUE |
At 31 January 2023 | 2,489 | 505 | 825 | 18,895 |
At 31 January 2022 | 2,158 | 348 | 695 | 18,285 |
Included in freehold property is freehold land valued at £9,469,135 (2022 - £9,203,485) which is not depreciated. |
Cost or valuation at 31 January 2023 is represented by: |
Freehold | Short | Long |
property | leasehold | leasehold |
£'000 | £'000 | £'000 |
Valuation in 1996 | 90 | - | - |
Valuation in 1997 | 282 | - | - |
Cost | 17,134 | 165 | 67 |
17,506 | 165 | 67 |
Fixtures,fittings, |
plant |
Investment | and | Motor |
properties | machinery | vehicles | Totals |
£'000 | £'000 | £'000 | £'000 |
Valuation in 1996 | 80 | - | - | 170 |
Valuation in 1997 | 24 | - | - | 306 |
Valuation in 2020 | 636 | - | - | 636 |
Valuation in 2022 | 158 | - | - | 158 |
Cost | 1,594 | 2,321 | 1,862 | 23,143 |
2,492 | 2,321 | 1,862 | 24,413 |
K J SHORTIS LIMITED (REGISTERED NUMBER: 01022321) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 January 2023 |
11. | TANGIBLE FIXED ASSETS - continued |
Group |
The freehold properties were revalued by the directors on the 31 January 1997. The cost of these properties amounts to £16,949,741 (2022 - £16,949,741). |
The investment property valuations were reviewed by the directors on the 31 January 2023. No changes arose in the year. The cost of these properties amounts to £1,722,152 (2022 - £1,390,852). |
Company |
Freehold | Long | Investment |
property | leasehold | properties |
£'000 | £'000 | £'000 |
COST OR VALUATION |
At 1 February 2022 |
Additions |
Disposals |
Transfer to ownership | 184 | - | - |
At 31 January 2023 |
DEPRECIATION |
At 1 February 2022 |
Charge for year |
Eliminated on disposal |
At 31 January 2023 |
NET BOOK VALUE |
At 31 January 2023 |
At 31 January 2022 |
Fixtures,fittings, |
plant |
Office | and | Motor |
equipment | machinery | vehicles | Totals |
£'000 | £'000 | £'000 | £'000 |
COST OR VALUATION |
At 1 February 2022 |
Additions |
Disposals | ( |
) | ( |
) | ( |
) |
Transfer to ownership | - | - | - | 184 |
At 31 January 2023 |
DEPRECIATION |
At 1 February 2022 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) | ( |
) |
At 31 January 2023 |
NET BOOK VALUE |
At 31 January 2023 |
At 31 January 2022 |
K J SHORTIS LIMITED (REGISTERED NUMBER: 01022321) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 January 2023 |
11. | TANGIBLE FIXED ASSETS - continued |
Company |
Cost or valuation at 31 January 2023 is represented by: |
Freehold | Long | Investment |
property | leasehold | properties |
£'000 | £'000 | £'000 |
Valuation in 1996 | 27 | - | 80 |
Valuation in 1997 | 214 | - | 24 |
Valuation in 2020 | - | - | 636 |
Cost | 16,055 | 67 | 1,485 |
16,296 | 67 | 2,225 |
Fixtures,fittings, |
plant |
and | Motor |
machinery | vehicles | Totals |
£'000 | £'000 | £'000 |
Valuation in 1996 | - | - | 107 |
Valuation in 1997 | - | - | 238 |
Valuation in 2020 | - | - | 636 |
Cost | 1 | 40 | 17,648 |
1 | 40 | 18,629 |
12. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£'000 |
COST |
At 1 February 2022 |
and 31 January 2023 |
NET BOOK VALUE |
At 31 January 2023 |
At 31 January 2022 |
K J SHORTIS LIMITED (REGISTERED NUMBER: 01022321) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 January 2023 |
12. | FIXED ASSET INVESTMENTS - continued |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
Registered office: Salhouse Road, Norwich, Norfolk, NR7 9AH |
Nature of business: |
% |
Class of shares: | holding |
2023 | 2022 |
£'000 | £'000 |
Aggregate capital and reserves |
Profit for the year |
Registered office: Salhouse Road, Norwich, Norfolk, NR7 9AH |
Nature of business: |
% |
Class of shares: | holding |
2023 | 2022 |
£'000 | £'000 |
Aggregate capital and reserves |
Loss for the year | ( |
) | ( |
) |
Registered office: Salhouse Road, Norwich, Norfolk, NR7 9AH |
Nature of business: |
% |
Class of shares: | holding |
2023 | 2022 |
£'000 | £'000 |
Aggregate capital and reserves |
Profit for the year |
Registered office: Salhouse Road, Norwich, Norfolk, NR7 9AH |
Nature of business: |
% |
Class of shares: | holding |
2023 | 2022 |
£'000 | £'000 |
Aggregate capital and reserves |
Profit for the year |
K J SHORTIS LIMITED (REGISTERED NUMBER: 01022321) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 January 2023 |
12. | FIXED ASSET INVESTMENTS - continued |
Registered office: Salhouse Road, Norwich, Norfolk, NR7 9AH |
Nature of business: |
% |
Class of shares: | holding |
2023 | 2022 |
£'000 | £'000 |
Aggregate capital and reserves |
Profit for the year |
Registered office: Salhouse Road, Norwich, Norfolk, NR7 9AH |
Nature of business: |
% |
Class of shares: | holding |
2023 | 2022 |
£'000 | £'000 |
Aggregate capital and reserves |
Profit for the year |
Registered office: Salhouse Road, Norwich, Norfolk, NR7 9AH |
Nature of business: |
% |
Class of shares: | holding |
2023 |
£'000 | £'000 |
Aggregate capital and reserves |
Profit for the period/year |
The entire share capital of PPK Factors Limited was acquired in April 2022 for £1,437,303. At the |
acquisition date, £360,290 was recognised as a fixed asset investment and £1,084,207 as goodwill. |
The excess of the purchase price of investments over the net assets acquired is amortised over its |
estimated useful life. |
13. | STOCKS |
Group |
2023 | 2022 |
£'000 | £'000 |
Finished goods | 8,285 | 7,857 |
K J SHORTIS LIMITED (REGISTERED NUMBER: 01022321) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 January 2023 |
14. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£'000 | £'000 | £'000 | £'000 |
Trade debtors | 2,145 | 1,819 |
Other debtors | 40 | 123 |
Prepayments | 552 | 380 |
2,737 | 2,322 |
15. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£'000 | £'000 | £'000 | £'000 |
Trade creditors | 3,851 | 3,828 |
Corporation tax | 218 | 383 |
Social security and other taxes | 1,330 | 1,172 |
Other creditors | 629 | 664 |
Amounts owed to group |
companies | - | - | 9,332 | 9,974 |
Accrued expenses | 559 | 489 |
6,587 | 6,536 |
16. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Non-cancellable | operating leases |
2023 | 2022 |
£'000 | £'000 |
Within one year | 52 | 29 |
Between one and five years | 22 | 93 |
In more than five years | 281 | 210 |
355 | 332 |
Company |
Non-cancellable | operating leases |
2023 | 2022 |
£'000 | £'000 |
Within one year |
In more than five years |
K J SHORTIS LIMITED (REGISTERED NUMBER: 01022321) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 January 2023 |
17. | PROVISIONS FOR LIABILITIES |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£'000 | £'000 | £'000 | £'000 |
Deferred tax |
Accelerated capital allowances | 319 | 138 | 89 | 67 |
Group |
Deferred |
tax |
£'000 |
Balance at 1 February 2022 | 138 |
Movement during the year | 182 |
Balance at 31 January 2023 | 320 |
Company |
Deferred |
tax |
£'000 |
Balance at 1 February 2022 |
Movement during the year | 21 |
Balance at 31 January 2023 |
The deferred tax relates to accelerated capital allowances. |
18. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £'000 | £'000 |
Ordinary | £1 | 247 | 247 |
19. | RESERVES |
Group |
Retained | Revaluation |
earnings | reserve | Totals |
£'000 | £'000 | £'000 |
At 1 February 2022 | 44,261 | 385 | 44,646 |
Profit for the year | 2,174 | - | 2,174 |
Dividends | (938 | ) | - | (938 | ) |
At 31 January 2023 | 45,497 | 385 | 45,882 |
K J SHORTIS LIMITED (REGISTERED NUMBER: 01022321) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 January 2023 |
19. | RESERVES - continued |
Company |
Retained | Revaluation |
earnings | reserve | Totals |
£'000 | £'000 | £'000 |
At 1 February 2022 | 26,943 |
Profit for the year | - |
Dividends | ( |
) | - | ( |
) |
At 31 January 2023 | 27,201 |
Included within retained earnings is £794,658 of non distributable reserves. |
20. | PENSION COMMITMENTS |
The parent company operates a money purchase pension scheme for the directors. The group operates a money purchase pension scheme for other employees. |
The pension cost charge amounted to £378,270 (2022 - £358,285). |
21. | RELATED PARTY DISCLOSURES |
Property owned by Taylor Patterson SIPP, of which Mr R J Shortis & Mr C J Shortis are both trustees and beneficiaries, was utilised by group companies. Annual rent payable, on a commercial basis, is £69,000 (2022 - £69,000). |
Inter group balances at the end of the year totalled £9,363,086 with the movements detailed below: |
Motosave Limited |
Fastfit Exhausts Limited |
Wilco Motor Spares Ltd |
EU Limited |
Linco Plc |
Lourimar Limited |
Total |
£ | £ | £ | £ | £ | £ | £ |
B/fwd | (4,935k) | (1,790k) | 1,337k | (2,792k) | (1,794k) | (31k) | (10,005k) |
VAT owed | - | - | (128k) | - | - | - | (128k) |
Mgt charge | 50k | 75k | 50k | 75k | 75k | - | 325k |
Group bank movement |
32k |
(168k) |
257k |
890k |
(333k) |
- |
678k |
Property transfer |
- |
- |
- |
(167k) |
- |
- |
(167k) |
Group loss relief |
(24k) |
- |
(35k) |
- |
- |
- |
(59k) |
Misc. | (4k) | - | (3k) | - | - | - | (7k) |
C/fwd | (4,881k) | (1,883k) | 1,478k | (1,994k) | (2,052k) | (31k) | (9,363k) |
22. | POST BALANCE SHEET EVENTS |
A final dividend of £3.00 per share was proposed after the year end (2022 - £3.50). |
23. | ULTIMATE CONTROLLING PARTY |
The group is under the control of the Shortis family who own 100% of the issued share capital. |