Association of Convenience Stores Limited - Period Ending 2021-12-31

Association of Convenience Stores Limited

Contents

Company Information	1
Directors' Report	2 to 3
Statement of Directors' Responsibilities	4
Independent Auditor's Report	5 to 7
Income Statement	8
Statement of Financial Position	9
Statement of Changes in Equity	10
Notes to the Financial Statements	11 to 16

Association of Convenience Stores Limited

Company Information

Directors

P A Sewell A Cresswell C J Mitchener I S G Pogue J R Davison P I Ponsonby R J Shingadia D M Robinson A L Reed S S Cheema J M James J M Lowman C L Hoste C Johnson A R Jones S E Bassett K Khera M T N Fletcher S L Adams D Nickels R D R George

Company secretary

J M Lowman

Registered office

Federation House 17 Farnborough Street Farnborough Hampshire GU14 8AG

Accountants

Stewart & Co Accountants LLP Chartered Accountants Knoll House Knoll Road Camberley Surrey GU15 3SY

Auditors

Stewart & Co LLP Chartered Certified Accountants & Registered Auditors Ebenezer House 5a Poole Road Bournemouth Dorset BH2 5QJ

Association of Convenience Stores Limited

Directors' Report for the Year Ended 31 December 2021

The directors present their report and the financial statements for the year ended 31 December 2021.

Directors of the company

The directors who held office during the year were as follows:

P A Stone (ceased 23 September 2021)

P A Sewell

A Cresswell

C J Mitchener

I S G Pogue

S E Fox (ceased 30 December 2021)

J R Davison

P I Ponsonby

R J Shingadia

D M Robinson

A L Reed

S S Cheema

J M James

J M Lowman - Company secretary and director

K I Towle (ceased 30 March 2022)

T J Chalk (ceased 30 March 2022)

C L Hoste

D Perks (ceased 1 February 2021)

C Johnson

H Hofer (appointed 1 February 2021 and ceased 30 April 2022)

A R Jones (appointed 1 February 2021)

D Roberts (ceased 1 January 2021)

S E Bassett (appointed 23 September 2021)

The following directors were appointed after the year end:

K Khera (appointed 1 March 2022)

M T N Fletcher (appointed 1 March 2022)

S L Adams (appointed 30 April 2022)

D Nickels (appointed 25 May 2022)

R D R George (appointed 23 June 2022)

Small companies provision statement

This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.

Association of Convenience Stores Limited

Directors' Report for the Year Ended 31 December 2021 (continued)

Approved by the Board on 23 June 2022 and signed on its behalf by:

.........................................
J M Lowman
Company secretary and director

Disclosure of information to the auditors

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.

Association of Convenience Stores Limited

Statement of Directors' Responsibilities

The directors acknowledge their responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

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

•	select suitable accounting policies and apply them consistently;

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

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

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

Association of Convenience Stores Limited

Independent Auditor's Report to the Members of Association of Convenience Stores Limited

Opinion

We have audited the financial statements of Association of Convenience Stores Limited (the 'company') for the year ended 31 December 2021, which comprise the Income Statement, Statement of Financial Position, Statement of Changes in Equity, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 Section 1A 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

•	give a true and fair view of the state of the company's affairs as at 31 December 2021 and of its profit for the year then ended;
•	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
•	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the 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 original financial statements were authorised for issue.

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

Other information

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

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Association of Convenience Stores Limited

Independent Auditor's Report to the Members of Association of Convenience Stores Limited (continued)

Opinion on other matter 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

•	the Directors' Report has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

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

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

•	adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
•	the financial statements are not in agreement with the accounting records and 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; or
•	the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the Directors' Report and from the requirement to prepare a Strategic Report.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities [set out on page 4], the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditor’s responsibilities for the audit of the financial statements

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Association of Convenience Stores Limited

Independent Auditor's Report to the Members of Association of Convenience Stores Limited (continued)

• We obtained an understanding of the legal and regulatory frameworks that are applicable to the company. These include but are not limited to compliance with the Companies Act 2006, UK GAAP and tax legislation,
• We agreed the financial statement disclosures to supporting documentation, and
• We made enquiries of management.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

......................................
Michael Roy King FCCA (Senior Statutory Auditor)
For and on behalf of Stewart & Co LLP, Accountants and Statutory Auditors

Ebenezer House
5a Poole Road
Bournemouth
Dorset
BH2 5QJ

15 August 2022

Association of Convenience Stores Limited

Income Statement for the Year Ended 31 December 2021

	Note	2021 £	2020 £
Turnover		1,690,136	1,783,233
Cost of sales		(82,454)	(112,711)
Gross surplus		1,607,682	1,670,522
Administrative expenses		(1,579,486)	(1,689,031)
Operating surplus/(deficit)		28,196	(18,509)
Gain on financial assets at fair value through profit and loss account		27,521	20,808
Other interest receivable and similar income		88	3,539
		27,609	24,347
Surplus before tax		55,805	5,838
Tax on profit		(17)	(672)
Surplus for the financial year		55,788	5,166

The above results were derived from continuing operations.

The company has no recognised gains or losses for the year other than the results above.

Association of Convenience Stores Limited

(Registration number: 03987067)
Statement of Financial Position as at 31 December 2021

	Note	2021 £	2020 £
Fixed assets
Tangible assets	5	324,665	330,390
Other financial assets	6	842,882	642,711
		1,167,547	973,101
Current assets
Debtors	7	993,821	744,559
Cash at bank and in hand		236,637	541,880
		1,230,458	1,286,439
Creditors: Amounts falling due within one year	8	(1,042,515)	(959,838)
Net current assets		187,943	326,601
Net assets		1,355,490	1,299,702
Capital and reserves
Revaluation reserve		125,260	125,260
Fair value reserve		78,734	51,213
Profit and loss account		1,151,496	1,123,229
Shareholders' funds		1,355,490	1,299,702

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

Approved and authorised by the Board on 23 June 2022 and signed on its behalf by:
 

.........................................

J M Lowman
Company secretary and director

Association of Convenience Stores Limited

Statement of Changes in Equity for the Year Ended 31 December 2021

	Revaluation reserve £	Fair value reserve £	Profit and loss account £	Total £
At 1 January 2021	125,260	51,213	1,123,229	1,299,702
Surplus for the year	-	-	55,788	55,788
Total comprehensive income	-	-	55,788	55,788
Transfers	-	27,521	(27,521)	-
At 31 December 2021	125,260	78,734	1,151,496	1,355,490

	Revaluation reserve £	Fair value reserve £	Profit and loss account £	Total £
At 1 January 2020	125,260	30,405	1,138,871	1,294,536
Surplus for the year	-	-	5,166	5,166
Transfers	-	20,808	(20,808)	-
At 31 December 2020	125,260	51,213	1,123,229	1,299,702

Association of Convenience Stores Limited

Notes to the Financial Statements for the Year Ended 31 December 2021

1	General information

The company is a company limited by guarantee, incorporated in England and Wales, and consequently does not have share capital. Each of the members is liable to contribute an amount not exceeding £1 towards the assets of the company in the event of liquidation.

The address of its registered office is: Federation House, 17 Farnborough Street, Farnborough, Hampshire, GU14 8AG,

2	Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

The financial statements are prepared in sterling, which is the functional currency of the entity.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the provision of services in the ordinary course of the company’s activities. Turnover is shown net of value added tax and discounts.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

Research and development

Research expenditure is written off in the year in which it is incurred.

Tax

The tax expense for the period comprises current tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Association of Convenience Stores Limited

Notes to the Financial Statements for the Year Ended 31 December 2021 (continued)

2	Accounting policies (continued)

Tangible assets

Tangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated depreciation and impairment losses.

Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in capital and reserves, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in capital and reserves in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in capital and reserves in respect of that asset, the excess shall be recognised in profit or loss.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class	Depreciation method and rate
Land	Land is not depreciated
Freehold property and improvements	Building - straight line over 50 years. Property improvements - 10% reducing balance
Plant and machinery	25% reducing balance

Investments

Fixed asset investments are initially recorded at cost, and subsequently stated at cost less any accumulated impairment losses. Listed investments are measured at fair value with changes in fair value being recognised in profit or loss.

Cash and cash equivalents

Cash is represented by cash in hand and bank deposits.

Trade debtors

Short term debtors are measured at transaction price, less any impairment.

Trade creditors

Short term creditors are measured at the transaction price.

Provisions

Provisions are recognised when the company has an obligation at the reporting date as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Association of Convenience Stores Limited

Notes to the Financial Statements for the Year Ended 31 December 2021 (continued)

2	Accounting policies (continued)

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Financial instruments

The Company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties and loans to related parties.

Employee benefits

Short-term employee benefits are recognised as an expense in the period which they are incurred.

3	Staff numbers

The average number of persons employed by the company (including directors) during the year, was 16 (2020 - 15).

4	Auditors' remuneration

	2021 £	2020 £
Audit of the financial statements	4,200	4,000

 

Association of Convenience Stores Limited

Notes to the Financial Statements for the Year Ended 31 December 2021 (continued)

5	Tangible assets

	Land and buildings £	Plant and machinery £	Total £
Cost or valuation
At 1 January 2021	367,359	71,983	439,342
Additions	-	7,807	7,807
At 31 December 2021	367,359	79,790	447,149
Depreciation
At 1 January 2021	60,545	48,407	108,952
Charge for the year	5,679	7,853	13,532
At 31 December 2021	66,224	56,260	122,484
Carrying amount
At 31 December 2021	301,135	23,530	324,665
At 31 December 2020	306,814	23,576	330,390

Included within the net book value of land and buildings above is £301,135 (2020 - £306,814) in respect of freehold land and buildings. Included within the net book value of land and buildings above is £51,135 (2020 - £56,814) in respect of property improvements.
 

Revaluation

The fair value of the company's Freehold property was revalued on 2 June 2017 by an independent valuer.
The property was valued on both rental and capital value bases. The name and qualification of the independent valuer are Austin Phoenix, Commercial Property Consultants, and the directors do not believe that the property value has been impaired in the interim..
Had this class of asset been measured on a historical cost basis, the carrying amount would have been £31,557 (2020 - £31,557).

Association of Convenience Stores Limited

Notes to the Financial Statements for the Year Ended 31 December 2021 (continued)

6	Other financial assets (current and non-current)

	Financial assets at fair value through profit and loss £	Total £
Non-current financial assets
Cost or valuation
At 1 January 2021	642,711	642,711
Fair value adjustments	27,521	27,521
Additions	172,650	172,650
At 31 December 2021	842,882	842,882
Impairment
Carrying amount
At 31 December 2021	842,882	842,882

7

Debtors

	2021 £	2020 £
Trade debtors	815,698	526,715
Prepayments	133,798	151,910
Other debtors	44,325	65,934
	993,821	744,559

8

Creditors

Creditors: amounts falling due within one year

	2021 £	2020 £
Trade creditors	32,394	53,708
Taxation and social security	106,489	74,145
Accruals and deferred income	898,422	826,442
Other creditors	5,210	5,543
	1,042,515	959,838

Association of Convenience Stores Limited

Notes to the Financial Statements for the Year Ended 31 December 2021 (continued)

9	Financial commitments, guarantees and contingencies

Amounts not provided for in the balance sheet

The total amount of financial commitments not included in the balance sheet is £67,246 (2020 - £26,072).

10	Related party transactions

Summary of transactions with other related parties

During the year, the company charged management fees of £89,076 (2020: £96,236) to Newsforce Promotions Limited, a company limited by guarantee and under common control. Within other debtors is an amount of £40,325 (2020: £65,934) due from Newsforce Promotions Limited at the year-end.
 

11	Financial instruments

Financial assets measured at fair value

Fund investment
The investments are traded in quoted public markets. The basis of fair value for quoted investments is equivalent to the market value, using the bid price.

The fair value is £842,882 (2020 - £642,711) and the change in value included in profit or loss is £27,521 (2020 - £20,808).