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2020-05-31-accounts

The Smarterbuys Store Limited

Report and Accounts

31 May 2020

Registered number 07526461

Charity Registration No 1144676

The Smarterbuys Store Limited Report and accounts Contents

Page
Company information 2
Trustees report 3 - 4
Independent examiner's report 5
Income and expenditure 6
Balance sheet 7
Notes to the accounts 8 - 10

1

The Smarterbuys Store Limited Legal and Administrative Information

Trustees

Ms Geraldine Kay Mrs Lesley Richardson Mrs J Swindells Mr Keith Tallintire

Secretary

Mr Keith Tallintire

Accountants

R.A. Hurren & Co (Accountants) Limited Unit 2 - 4 Protection House Albion Road North Shields Tyne & Wear NE30 2RH

Registered office

Craghead Village Hall Middles Road Stanley Co Durham DH9 6AN

Registered number

07526461

2

The Smarterbuys Store Limited Registered number: 07526461 Trusteess' Report

The directors present their report and accounts for the year ended 31 May 2020.

The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the Companies Act 2006 and the Statement of Recommended Practice, "Accounting and Reporting by Charities", issued in March 2005.

Structure, governance and management

The Smarterbuys Store Limited is a company limited by guarantee.

The trustees, who are also the directors for the pupose of company law and served during the year were:

Ms Geraldine Kay Mrs Lesley Richardson Mrs J Swindells Mr Patrick Rice (Resigned 18/02/2019) Mr Brian Watson Mr Keith Tallintire

Political donations

None of the trustees has any beneficial interest in the company.

Third party indemnity provisions

The trustees have assessed the major risks to which the company is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.

Objectives and activities

Employment of disabled persons

The main objective of the charity is the prevention or relief of poverty throughout the UK by providing affordable items and services to individuals in need and to work in partnership with other charities or organisations working to prevent or relieve poverty. An addition charitable objective is to relieve unemployment for public benefit of communities throughout County Durham in such a way as thought fit.

The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the company should undertake.

3

The Smarterbuys Store Limited Registered number: 07526461 Trusteess' Report

Achievements and performance

The furniture scheme lanched 2015 is to provide low cost furniture rental ownership of the goods at the end of the rental period (2 years) with a competitive APR has been well recieved by stakeholders. The scheme is open to all UK residents but is primarily focused on those living in the North East of England.

A number of social landlords operating throughout the UK have shown interest in the scheme with firm commitments to adopt the Smarterbuys Store project. This demonstrates the scalability of the model and its ability to help those in financial need no matter where they are in the UK.

The scheme is now currently providing over 50 loans per month to those individuals excluded from mainstream finance and as its services become more widely known and more housing providers.

The governance arrangements are being reviewed and the Trustees are confident of the businesses continued success.

Financial review

The company is a not for profit company which is limited by guarantee. Any reserves are recirculated into charitable activities within The Smarterbuys Store Limited.

This report was approved by the board on 22 February 2021 and signed on its behalf.

Mr Keith Tallintire

Secretary

4

The Smarterbuys Store Limited

Independent Examiner's Report

To the Trustees of the Smarterbuyers Store Limited

Respective responsibilities of an examiner

The trustees, who are also the directors of the The Smarterbuys Store Limited for the purposes of company law, are responsible for the preparation of the accounts. The trustees consider that an audit is not required for this year under section 144 of the Charities Act 2011, the Charities Act, and that an independent examination is needed. The charity's gross income exceeded £250,000 and I am qualified to undertake the examination being a Qualified Accountant.

Having satisfied myself that the charity is not subject to audit under company law and is eligible for independent examination, it is my responsibility to:

(i) examine the accounts under section 145 of the Charities Act:

(ii) to follow the procedures laid down in the general Directions given by the Charity Commission under section 145(5) (b) of the Charities Act; and

(iii) to state whether particular matters have come to my attention.

Basis of independent examiner's report

My examination was carried out in accordance with the general Directors given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes considerstion of the unusual items or disclosures in the accounts, and seeking, explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently no opinion is given as to whether the accounts present a "true and fair view" and the report is limited to those matters set out in the statement below.

Independent examiner's statement

In connection with my examination, no matter has come to my attention:

(a) which gives me reasonable cause to believe that in any material respect the requirements:

(i) to keep accounting records in accordance with section 386 of the Companies Act 2006;

and

(ii) to prepare accounts which accord with the accounting records, comply with the accounting requirements of 396 of the Companies Act 2006 and with the methods and principles of the Statement of Recommended Practice: Accounting and Reporting by Charities;

(b) to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.

Qualified Accountant Shaun Jubb ACA for and on behalf of

R.A. Hurren & Co (Accountants) Limited Unit 2-4 Protection House Albion Road North Shields Tyne & Wear NE30 2RH

22 February 2021

5

The Smarterbuys Store Limited Profit and Loss Account for the year ended 31 May 2020

Incoming resources from generated funds
Costs of generating funds
Net incoming resources available
Governance costs
Other operating income
Net income for the year
2020
£
430,018
(183,360)
246,658
(251,068)
16,232
11,822
2019
£
497,876
(176,790)
321,086
(314,198)
-
6,888

6

The Smarterbuys Store Limited
Registered number:
Balance Sheet
as at 31 May 2020
Notes
Current assets
Debtors
3
Cash at bank and in hand
Creditors: amounts falling due
within one year
4
Net current assets
Total assets less current
liabilities
Creditors: amounts falling due
after more than one year
5
Net assets
Capital and reserves
Profit and loss account
Shareholder's funds
07526461
2020
£
755,947
123,283
879,230
(105,815)
773,415
773,415
(569,868)
203,547
203,547
203,547
2019
£
678,071
189,327
867,398
(88,904)
778,494
778,494
(586,769)
191,725
191,725
191,725
2019
£
678,071
189,327
867,398
(88,904)
778,494
778,494
(586,769)
191,725
191,725
191,725
778,494
(586,769)
191,725
191,725
191,725

The directors are satisfied that the company is entitled to exemption from the requirement to obtain an audit under section 477 of the Companies Act 2006.

The member has not required the company to obtain an audit in accordance with section 476 of the Act.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of accounts.

The accounts have been prepared and delivered in accordance with the special provisions applicable to companies subject to the small companies regime. The profit and loss account has not been delivered to the Registrar of Companies.

Mr Keith Tallintire Director Approved by the board on 22 February 2021

7

The Smarterbuys Store Limited Statement of Changes in Equity for the year ended 31 May 2020

At 1 June 2018
Profit for the financial year
At 31 May 2019
At 1 June 2019
Profit for the financial year
At 31 May 2020
Share
capital
£
-
-
-
-
Share
premium
£
-
-
-
-
Re-
valuation
reserve
£
-
-
-
-
Profit
and loss
account
£
184,837
6,888
191,725
191,725
11,822
203,547
Total
£
184,837
6,888
191,725
191,725
11,822
203,547

8

The Smarterbuys Store Limited Notes to the Accounts for the year ended 31 May 2020

1 Accounting policies

Basis of preparation

The accounts have been prepared under the historical cost convention and in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland (as applied to small entities by section 1A of the standard).

Turnover

Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services. Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer. Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs.

Intangible fixed assets

Intangible fixed assets are measured at cost less accumulative amortisation and any accumulative impairment losses.

Tangible fixed assets

Tangible fixed assets are measured at cost less accumulative depreciation and any accumulative impairment losses. Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write off the cost, less estimated residual value, of each asset evenly over its expected useful life, as follows:

Freehold buildings over 50 years Leasehold land and buildings over the lease term Plant and machinery over 5 years Fixtures, fittings, tools and equipment over 5 years

Debtors

Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts.

Creditors

Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method.

2
Employees
Average number of persons employed by the company
2020
Number
5
2019
Number
7

9

The Smarterbuys Store Limited Notes to the Accounts for the year ended 31 May 2020

3
Debtors
Trade debtors
Other debtors
4
Creditors: amounts falling due within one year
Bank loans and overdrafts
Taxation and social security costs
Other creditors
5
Creditors: amounts falling due after one year
Bank loans
Other creditors
2020
£
748,540
7,407
755,947
2020
£
48,648
9,759
47,408
105,815
2020
£
158,210
411,658
569,868
2019
£
648,599
29,472
678,071
2019
£
48,500
-
40,404
88,904
2019
£
93,500
493,269
586,769

6 Other information

The Smarterbuys Store Limited is a private company limited by shares and incorporated in England. Its registered office is:

Craghead Village Hall

Middles Road

Stanley Co Durham DH9 6AN

10

The Smarterbuys Store Limited Detailed profit and loss account for the year ended 31 May 2020

This schedule does not form part of the statutory accounts

Sales
Cost of sales
Gross profit
Administrative expenses
Other operating income
Operating profit
Profit before tax
2020
£
430,018
(183,360)
246,658
(251,068)
16,232
11,822
11,822
2019
£
497,876
(176,790)
321,086
(314,198)
-
6,888
6,888

11

The Smarterbuys Store Limited Detailed profit and loss account for the year ended 31 May 2020

This schedule does not form part of the statutory accounts

Sales
Sales
Cost of sales
Purchases
Administrative expenses
Employee costs:
Core staff costs
Admin expenses
Bad debts
Franchisee interest
Other expenditure
Loan interest
Other operating income
Other operating income
2020
£
430,018
183,360
120,051
62,535
38,426
15,000
-
15,056
251,068
251,068
16,232
2019
£
497,876
176,790
133,986
84,135
56,577
18,000
17,927
3,573
314,198
314,198
-

12