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Chelmsford Star Annual Report - 26th January 2013 Flipbook PDF
Chelmsford Star Annual Report - 26th January 2013
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The
report & financial statements 52 weeks ended 26th January 2013
“2012… a year when co-operatives and their supporters from Chelmsford to China have come together to show how they build a better world.” - Ed Mayo, Secretary General of Co-operatives UK
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Contents
Directors, Elected Representatives, Management Executive and Advisers Notice of Meetings Five Year Comparative Statement 5 years at a glance Co-operative, Environmental and Social Performance Indicators Directors' Report Remuneration Report Succession Planning Report Directors Attendances Statement of Directors' Responsibilities Board Certification Directors' Statement on Corporate Governance Statement of Accounting Policies Group Revenue Account Group Balance Sheet Group Cash Flow Statement Group Statement of Total Recognised Gains and Losses Notes to the Financial Statements Independent Auditors' Report Group Value Added Statement Standing Orders – Members’ Meetings Addresses and Telephone Numbers
Page: 2 3 4 5 6 7-10 11 12 12 13 13 14 15 16 17 18 18 19-30 31 32 33 35
Directors, Elected Representatives, Management Executive and Advisers As at 28th January 2013 BOARD OF DIRECTORS President (appointed by the Directors) Mrs P R Dodd Directors Mr R Simons - Vice-President Ms H A Corby Mrs P Green Mr A W R Gunn Mrs J E Martin Mr A W Price Mrs J Saunders Mr M F R Whalley Mr F P L Gardner Mr M R Wallace served on the Board during the year under review, until 30 April 2012. Audit Committee Mr A W R Gunn (Chair) Ms H A Corby Mr F P L Gardner Mrs J E Martin Remuneration Committee Mrs P R Dodd - President Mr R Simons - Vice President Ms H A Corby Mrs J Saunders
Succession Planning Sub-committee Ms H A Corby (Chair) Mrs P R Dodd Mr F P L Gardner Mrs J E Martin Mr A W Price Mr M F R Whalley Membership Committee Mr M F R Whalley (Chair) Mrs P Green Mr A W R Gunn Mrs J E Martin Elected Members’ Representatives Mr C Henton Co-opted member Mrs S Sullivan (Members’ Council Chair) Members’ Council Elected members Mrs L Bowser Mr L Hughes Mrs J Milbank Mr M R Wallace
Mr L Hope Mr J Knott Mrs S Sullivan (Chair) Ms J Adams resigned from the Members’ Council, 30th June 2012
Co-opted member Mr G Martin
REGISTERED OFFICE 220 Moulsham Street Chelmsford CM2 0LS Registered Number 973R Essex Web address: www.chelmsfordstar.coop
MANAGEMENT EXECUTIVE Mr A W Gudgeon - Chief Executive Officer Mr K Grinsted – Member Relations Officer Mr S B Hammond – Head of Food Miss V J Howard - Marketing and PR Manager Mrs A Rowland - Human Resources Manager Mrs E Tredwin – Secretary Designate Mr B J Wood MCMI CIRM – Chief Executive Officer Designate Mr R Myddelton – Head of Finance and Secretary until 29th December 2012
ADVISERS Auditors Bird Luckin, Aquila House Waterloo Lane, Chelmsford CM1 1BN Solicitors Tees, Stonebridge House Stonebridge Walk, Chelmsford CM1 1EY Principal Banker The Co-operative Bank Plc 1 Balloon Street Manchester M60 4EP Internal Auditor Mutual One Limited The Bailey Skipton BD23 1DN
Notice of Meetings
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Notice is hereby given that the Annual General Meeting of Members will be held on Monday 29th April 2013 at 6.30pm in the ‘quadrant’ Department Store, 220 Moulsham Street, Chelmsford Entrance from 6.00pm at the Riverside entrance only. AGENDA 1. Minutes of the Annual General Meeting held on 30th April 2012
The following candidates have been nominated for the positions indicated by the letters after their name and are listed in no particular order:
2. Directors’ Report and Financial Statements for the year ended 26th January 2013
B = Board
3. Ratification of the Share of the Profits at £7.00 per 1000 points accrued on Membership Cards at 26th January 2013, to be credited to Membership cards on 30th April 2013 4. Appointment of Scrutineers 5. Election to the Board of Directors: 4 vacancies for 3 years – 7 nominations received. (See next column). 6. Election to the Membership Committee: 1 vacancy for 2 years – 4 nominations received. (See next column). 7. Election to the Members’ Council: 4 vacancies for 2 years – 6 nominations received. (See next column).
M = Membership Committee C = Members’ Council * = Employee: Susan Sullivan Chris Henton Roger Simons Kevin Bennett * Judy Saunders Hazel Corby Gary Martin * Susan Charsley Lois Bowser John Knott Lance Gardner
B B B B B B B
M M M M -
C C C C C C -
Members registered for Postal Voting will receive Ballot Papers by mail, to be returned in the prepaid envelope by no later than 24th April 2013.
Admission to the Members’ Meetings RULE 9.10 states “Every member who has a vote under these Rules shall be entitled to attend Members’ Meetings on the production of a valid Membership Card and proof of identity or such other identification as the Board may from time to time determine. If a Member ceases to be a Member during the election process, the former member’s vote is invalid. Where secondary cards exist, only the primary card member shall be eligible to attend and vote.” RULE 9.12 states “Every member of the Society shall be entitled to cast one vote on any resolution put to the members at a Members Meeting.”
BE THERE. BE HEARD. BE INVOLVED.
TRANSPORT - Members who require transport to this Meeting should contact the Secretary of the Society at the Registered Office, 220 Moulsham Street, Chelmsford, Essex, CM2 0LS before 5.00pm on 21st April 2013.
8. Management Presentation: • Review of 2012/2013 trading year • Future prospects and business developments. 9.
Questions from the floor
10. Approval of Directors’ fees and expenses 11. Appointment of Auditor 12. Charity of the Year 2013/14
Motions must be submitted to the Secretary by no later than 5.30 pm on 8th April 2013.
www.chelmsfordstar.coop
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Five Year Comparative Statement 52 weeks ended 26th January 2013 Year ended:-
31 January 2009 53 weeks
30 January 2010 52 weeks
29 January 2011 52 weeks £ 78 739 458
28 January 2012 52 weeks Restated £ 85 749 244
Gross Takings
£ 64 267 052
£ 67 739 277
Sales
47 949 208
Turnover
£ 93 738 848
50 970 002
60 041 460
66 299 535
72 782 097
44 462 643
47 565 552
55 275 546
60 541 705
66 388 559
210 867
240 840
301 098
313 514
366 942
1 020 355
1 408 298
2 067 476
2 121 603
1 963 168
Share Interest
244 297
229 971
266 848
272 901
287 309
Retained Surplus before Tax
402 002
471 802
315 079
912 912
1 053 718
Depreciation
1 047 822
1 111 618
1 287 862
1 081 882
1 264 310
Capital Expenditure including Goodwill
1 029 437
1 729 346
4 045 794
1 195 511
2 860 901
Fixed Asset - Net Book Values
14 514 937
15 082 626
17 488 550
17 199 819
18 796 510
Net Current Assets (Liabilities)
(1 345 724)
607 147
Total Assets less Current Liabilities
13 169 213
15 689 773
16 720 518
16 823 180
18 500 270
Long Term Liabilities
(5 473 131)
(6 479 405)
(6 501 135)
(5 804 304)
(6 207 520)
Net Pension Liability under FRS17
(1 512 000)
(1 986 480)
(1 920 630)
(1 914 750)
(2 105 180)
Deferred Tax
461 545
1 066 000
1 218 785
1 270 016
1 250 000
NET ASSETS
6 645 627
8 289 888
9 517 538
10 374 142
11 437 570
Share Capital
4 883 539
6 106 599
6 997 305
7 126 481
7 565 670
Reserves
1 762 088
2 183 289
2 520 233
3 247 661
3 871 900
MEMBERS’ FUNDS
6 645 627
8 289 888
9 517 538
10 374 142
11 437 570
Membership
57 438
61 630
64 631
67 018
70 301
Average Shareholding per Member
£85.02
£99.08
£108.27
£106.34
£107.62
2.29 0.47 2.32
2.96 0.51 3.64
3.74 0.54 7.32
3.50 0.52 1.97
2.96 0.55 4.31
Gearing
105%
66%
75%
68%
71%
Interest cover (Net interest as percentage of Surplus before Interest)
203%
410%
665%
795%
730%
Members’ Benefits & Grants Trading Surplus
Trading Surplus as % of Turnover Members’ Benefits as % of Turnover Fixed Asset additions as % of Turnover
Annual Report and Financial Statements
(768 032)
(376 639)
26 January 2013 52 weeks
(296 240)
5 Years at a Glance
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52 weeks ended 26th January 2013
93 739
2013
85 749
2012 2011
2011
2010
2010
2009
2009 £40m
£50m
£60m
£70m
2013
£80m
£90m
3 248
£1m
£100m
2011
2011
2010
2010
2009
2009
2012
2 341 1 077 1 082
£2.5m
£3m
£200k
£400k
£600k
£800k
£1m
£1.2m
2010
2010
2009
2009
£1.4m
£1.6m
367 287 314
2012 2011
£4m
1 582
2013
2011
£3.5m
1 407
0
1 264
£2m
2012
1 967
2013
£1.5m
2013
2 288
2012
3 872 2 122
2012
66 300
£30m
1 963
2013
72 782
273
£100k
£150k
£200k
£250k
£300k
www.chelmsfordstar.coop
£350k
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Co-operative, Environmental and Social Performance Indicators 52 weeks ended 26th January 2013 As a co-operative the Society seeks to operate its business in accordance with co-operative values and principles. To assist in the monitoring of our performance we utilise the ten indicators which have been produced by Co-operativesUK.
Description
Measure
Performance in 2012/13
1. Member economic involvement
Trade conducted with members as a proportion of turnover
Data from the usage of the Co-operative Membership Card indicates turnover of £9.3m or 9.9% of total turnover conducted, compared to £9.1m or 10.6% in 2011/12.
2. Member democratic participation
Number of members voting in elections and as a percentage of total membership
588 members voted in the elections for 4 board positions. 6 candidates stood for election. 588 voting members represented 3.09% of the active membership and 0.84% of total membership compared to 1.96% and 0.56% in 2011/12 respectively.
3. Participation of employees and members in training and education
Hours of training undertaken
2,866 hours of training were given to staff and our Directors, at our Danbury Training Centre, compared to 2,172 hours in 2011/12. Additionally, 226 hours of training have been provided to our members via membership activities such as “Launchpad”.
4. Staff injury and absentee rates
5. Staff profile gender and ethnicity
Total number of accidents and reportable accidents
The total number of reported accidents involving staff during the year was 75, of which 2 were serious. This compared to 88 accidents, of which 1 was serious in 2011/12.
Staff absentee rates
The average number of absence days across the Society was 4.71 days compared to 4.93 days in 2011/12.
Gender split and percentage of employees from different ethnic groups
62% of our staff are female and 38% male, these ratios have remained constant for 2 years. 5.8% of our staff are of a non-white ethnicity compared to 6.9% in 2011/12.
6. Customer satisfaction
Percentage of customers being satisfied with service
97.2% of returned surveys for the funeral division would use or recommend our service again. 97.7% of returned surveys for furniture purchases were satisfied or very satisfied.
7. Consideration of ethical issues and procurement and investment decisions
Evidence of ethical issues in decision making
The majority of our procurement is through membership of the Co-operative Retail Trading Group (CRTG). We actively support the ethical buying policies of CRTG including promoting Fairtrade merchandise.
8. Investment in the community and Co-operative initiatives
Annual proportion of investment in community/Co-operative initiatives as a percentage of pre-tax profits
£95,577 was donated to community groups through cash donations/investments and staff time, equating to 8.3% of pre-tax profits in 2012/13. This compared to £94,501, 9.4% in 2011/12. In addition, £48,400 was donated to co-operatives through cash donations/investments and staff time, equating to 4.2% of pre-tax profits in 2012/13.
9. Net CO2 emissions arising from operations
Net tonnes of CO2 emissions from energy used for all on-site operations (but excluding transport)
We have produced 4,140 tonnes of CO2 from electricity consumption, compared to 4,652 in 2011/12. 98.19% of our electricity came from renewable resources.
10. Waste recycling
Percentage of waste recycled/re-used as proportion of total waste
We have recycled 17.98% of the waste produced, compared to 18.6% in 2011/12. Total waste arising reduced to 1,831 tonnes compared to 1,920 tonnes in 2011/12.
Annual Report and Financial Statements
Directors’ Report
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52 weeks ended 26th January 2013 To The Members Your Board of Directors has pleasure in submitting for your consideration its annual report, which covers a period of 52 weeks ending on 26th January 2013. Economic Background In our report to members for the year ended 28th January 2012, we stated that it was your Directors’ opinion that 2012 would be a difficult year for the retail industry. Regrettably, this has proved to be the case with further big name High Street casualties occurring. Some fourteen companies have gone into administration during 2012. Consumer confidence has remained fragile throughout the year; this coupled with no real signs of an economic recovery has, quite understandably, led to a less than buoyant retail market. In addition to the foregoing, the cost of High Street rents, the increase in business rates and the ever escalating costs of utilities such as electricity and gas, coupled with the fast growing market share of internet trade have all combined to make “High Street” trading very challenging indeed. The latest figures reveal that 15% of High Street shops are vacant which emphasises the very serious nature of the problems facing retailers such as ourselves. Your Directors in reporting to you last year also stated that your Society’s business plan for 2012/13 recognised the extent of the challenges to be faced and we expressed a degree of confidence in our collective ability to ensure that Chelmsford Star continued to grow as a Co-operative. It is therefore with a degree of satisfaction that we can, yet again, report to members that our Co-operative has, despite the dire economic situation, continued to make progress in a number of ways.
Financial Your Society’s gross takings for the year amounted to £93,738,848. This compares to last year’s figure of £85,749,244 and is therefore an increase of £7,989,604 or 9.32%. This very impressive rate of growth has in part come about by the expansion of our business, notably the opening of a further food store at Mungo Park, Rainham, the acquisition of the petrol filling station and convenience store at Baddow Road, Chelmsford and the opening of our Bed Centre on Canvey Island. However, underpinning the growth has been another very solid performance from our existing business. “Like for like” growth amounted to £4,184,001 or 4.90%. This has been aided by outstanding figures from both Food and Travel, which will be reported on in greater detail later in the report.
It is your Directors’ understanding that the Society’s rate of “like for like” growth is a market leading performance and one which reflects great credit on our management team and shop floor employees.
Food
Gross profit for the year amounted to £21,041,465. This compares to last year’s figure of £20,087,901 and is therefore an increase of £953,564 or 4.75%.
Gross takings on a “like for like” basis, i.e. excluding the effect of new shops, has increased by 3.89%; our increase at week 28, i.e. our interim result, was an increase of 4.06%. There is no doubt that the food market hardened in the “second half” but the Society’s full year performance is, for the fourth successive year, highly creditable and very much a market leader.
Members will be aware that increases in the cost of operating any business are remorseless and often difficult to curtail, especially if you wish to protect jobs as we do. For this reason, it is important to grow the income of the business. Your Directors are pleased to be able to report that the Society’s margin controls have worked well and enabled the Society’s income to grow in line with our plans. The total costs of operating the Society’s business in the year amounted to £19,078,297; last year’s figure was £17,966,298. Expenses therefore have increased by £1,111,999 or 6.19%, which in part reflects the Society’s continued expansion. Your Directors are pleased to inform members that the overall level of cost incurred is substantially below that originally envisaged in the 2012/13 business plan and is testament to the Society’s systems of management control which have been very effective. The Society’s trading profit before depreciation, often referred to as the EBITDA, amounted to £3,227,478; last year £3,203,485, an increase of £23,993 or 0.75%. Trading profit after charging depreciation amounted to £1,963,168; last year’s figure was £2,121,603. The Society’s surplus before distributions, often referred to as net profit, amounted to £1,630,168; last year £1,422,247. After meeting the cost of all distributions, the Society has achieved a surplus of £1,033,702; last year £903,643. The surplus has been added to the Society’s reserves thereby further strengthening your Society’s balance sheet. Your Directors are pleased to be able to inform members that the Society’s profitability exceeded the expectations of the business plan by a comfortable margin and in your Directors’ opinion is testament to the appropriateness of the Society’s business strategies that were put in place to combat the severe challenges of the year. The retained surplus exceeding £1 million as it does, is a further milestone in the Society’s recovery.
Gross takings, excluding Fuel, amounted to £75,743,601, which compares to last year’s figure of £71,209,077. This is an increase of £4,534,524 or 6.37%, and follows on from an increase of 11.24% in 2011/12.
Investment in our food business has continued throughout the year, the most notable being the Baddow Road filling station and convenience store. Directors are pleased to be able to inform members that this important acquisition has, to date, performed in line with our expectations. In addition to Baddow Road, significant investment has also been made in our food shops in Broomfield, Challis Lane, Duke Street, Exchange Way, Forest Drive, Hawkwell and Tilbury. Your Directors are pleased to be able to inform members that the Food business, aided by market leading sales growth and continued investment, has again achieved a level of profitability better than that envisaged in the business plan.
Departmental Stores Members will be aware that trading in Departmental Stores, even in good times, is very challenging and even more so in the economic conditions which have prevailed throughout this financial year. Having said this, gross takings for the year amounted to £9,550,406; last year £9,687,038, a decrease of 1.41%. During the year, the Society opened a new Bed Centre on Canvey Island, and pleasingly it has traded very much at the level anticipated. After adjustment for non comparable factors, gross takings on a “like for like” basis are down £169,607 or 1.84%. Your Directors consider this to be satisfactory given the challenges of the economy. Very encouragingly, sales in the Society’s own bought departments have grown very significantly and this has contributed to an improvement in gross margins. The Furniture, Housewares, Toys and Nursery departments have done particularly well. Ladies’ fashion has proved to be the “Achilles heel”, but even here the decline in business is very much in line with figures being reported by large national multiples. Towards the end of the year, a new very large Primark has opened in Chelmsford. On one hand this is further competition but equally it has added to the attraction of Chelmsford as a shopping centre. To date, the Primark has had no discernible impact on our business.
www.chelmsfordstar.coop
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Directors’ Report 52 weeks ended 26th January 2013 In Braintree, the town has been successful in its bid to be subject to rejuvenation proposals of Mary Portas. This is seen as a very positive development and as such is warmly welcomed by your Directors. Your Directors are acutely aware that trading in Departmental Stores is particularly challenging, as evidenced by recent decisions of both the Midlands and Lincoln Societies to exit Non Food trading. Your Directors recognise that the freehold of the Society’s quadrant store in Moulsham Street, Chelmsford is the Society’s most valuable single fixed asset and that as such it is important that it generates an adequate financial return.
Travel The Society’s Travel business has enjoyed its most successful year for a very long time. This is particularly encouraging given the fact that market conditions have not been ideal. Gross takings for the year amounted to £4,511,632; last year £2,968,581, an increase of 51.98%. Holiday bookings have increased by 15.0% and currency business has grown 129.4%, both of our branches in Chelmsford and Braintree have played their part. Directors would wish to thank our small Travel team for their dedication and professionalism because these have been important factors in our success.
Funerals The Society’s Funeral business has, during the year, had to contend with increased local competition, a declining death rate and some adverse national publicity directed towards the Co-operative Group but which impacted on Co-operative Funerals generally. Despite the foregoing, gross takings reached £1,658,990; last year £1,630,771, an increase of 1.73%. Sales of the Society’s Funeral Plans have continued to grow with the ratio of Plan sales to funerals conducted being 30.76%. Towards the end of the financial year, a new branch was opened in Great Dunmow; it is as yet very early days but Directors believe that the long term prospects are very good. Yet again, the Society’s Funeral business won the prestigious Mid-Essex Business Award 2012 for ‘Excellent Customer Service’; Directors extend congratulations to all our employees. The continued growth and success of our Funeral business has enabled profitability to reach a new all time record.
Investment Property The Society’s investment property portfolio is not large and consists mainly of accommodation above our shops. The portfolio was however, extended during the
Annual Report and Financial Statements
year because part of the Baddow Road acquisition consists of some investment properties. On the downside, the lease on our office property above Duke Street, Chelmsford was not renewed, representing a loss of income. Rental income for the year amounted to £260,230; last year £253,771, which is an increase of £6,459 or 2.54%.
Funding and Interest During the year, the Society has spent £2,860,901 on capital projects, a major part of which was the acquisition of Baddow Road. Part of the funding was provided by the Co-operative Bank. The Society is extremely grateful for the Bank’s ongoing support. The continuing growth in the Society’s asset base has led to an increase in net debt of £1,038,327, which is now £8,132,306. When related to the Society’s profit before depreciation, i.e. EBITDA, net debt as a ratio is 2.52; last year 2.21. Interest charged on the Society’s borrowings amounted to £269,000; last year £267,000. The interest cover ratio (i.e. Bank interest to trading profit) is 7.30; last year 7.95 times. The Society continues to perform well within the requirements of its banking covenants and has adequate headroom to facilitate further expansion, if and when a suitable opportunity arises.
Employees’ Superannuation Fund An actuarial valuation of the Fund as at 28th January 2012 has been undertaken. Preliminary results have been made available to the Society and to the Trustees, and the final outcome is expected to be known no later than April 2013. All the indications point to an increase in the deficit, brought about in the main by increases in life expectancy. The Society will, in conjunction with the Trustees, address this matter by agreeing an appropriate adjustment to the existing recovery plan. During the course of the year, the Society has made payments as per the recovery plan amounting to £348,000; last year £300,000. Some changes to the current scheme have been approved by its members. These changes will be beneficial in terms of improving the long term financial viability of the Fund. Finally on the matter of Pension Funds, the Society’s Directors remain fully committed to providing the best possible pension scheme to all employees, whilst recognising that whatever is offered has to be financially sustainable. Members will probably be aware that the government has introduced legislation aimed at ensuring that everyone has the option of a pension in addition to that provided by the
State. This legislation will apply to the Society from October 2013 and arrangements have been put in place that will ensure full compliance with the requirements of the legislation.
Distributions The Society’s total distribution of profit which is made up of interest on members’ share capital, dividend on purchases, the membership grant, donations to the Co-operative Party and sundry community donations amounted to £576,450; last year £509,335. Payments to members of the 500 Club who receive a discount at the point of sale is not treated as a distribution but is charged directly to the profit and loss account. The cost this year is £77,801; last year £77,080. For the current year, your Directors propose to recommend to members a payment of share of profits (i.e. dividend) at a rate of £7.00 for each 1,000 points earned. Last year’s rate was also £7.00 for each 1,000 points earned.
Board of Directors Changes in the Society’s governance structure following on from the April 2012 Annual General Meeting were fully reported to members in our Interim Report, which covered a period of 28 weeks ended 11th August 2012. This report will therefore largely cover events since August. Members will be aware from previous reports that your Board has devoted a large amount of time and effort to the matter of Senior Executive succession. Roger Myddelton, our Head of Finance and Secretary retired in December. Roger is replaced by Lisa Waghorn, a Chartered Accountant who was previously a Senior Partner at MacIntyre Hudson. Lisa will fulfil the role of Chief Financial Officer. Roger’s secretarial role has been taken over by Ellen Tredwin who has been appointed the Society’s Secretary. Ellen joined the Society following her university degree some eight years ago. The Board has asked Roger to continue to serve as Secretary to the Employees’ Superannuation Fund until April 2013, after which Lisa Waghorn will take over. The Board would wish to place on record its deep appreciation to Roger for all he has achieved on behalf of the Society, and certainly in the past eighteen months, in very challenging circumstances. The Board of Directors are sure that members will join with them in wishing Roger a long and very happy retirement. As a direct consequence of employing Lisa Waghorn, the Society has had to change external auditors and Bird Luckin Chartered Accountants will take over this role. Following the required resignation of MacIntyre Hudson, Section 519 of the Companies Act 2006 requires an external auditor to resign and give an assurance that there are no issues outstanding which in their opinion should be brought to the attention of members or creditors. The Board can confirm to members that the necessary assurance has been received via a letter from MacIntyre Hudson dated 19th November 2012.
Directors’ Report
9
52 weeks ended 26th January 2013 Tony Gudgeon, our Chief Executive Officer for the past fifteen years will also retire in 2013, having completed over fifty years service to the co-operative movement. As members would rightly expect, the question of succession has greatly exercised the Board. After lengthy and careful deliberation, the Board has appointed Barry Wood as Chief Executive Officer Designate; Barry will fully take over upon Tony’s retirement, a smooth transition is planned. The Board and indeed all members are greatly indebted to Tony because under his stewardship this Society has been completely transformed. It would be no exaggeration to say that at the time of Tony’s arrival, the prognosis for the survival of Chelmsford Star as an independent Society was extremely bleak. Today, the Society is both profitable and highly respected. We have enjoyed fifteen years of progress and not just in financial terms. It goes without saying that we wish Tony as Roger, a long and happy retirement. The retirements of Tony and Roger represent something of a new era for the Society and the Board is looking forward very much to working with Barry and the “new” management team. It is of course our collective intention to build on our Society’s success, and with the continuing support of our members, we are extremely optimistic about the future. The Board has of necessity had to devote a significant amount of time to governance matters and three important developments have taken place. Firstly, in the light of experience, sixteen new Board protocols have been introduced; these range from matters such as conflict of interest to procedures for the holding of meetings of Directors without management. Details are available on the Society’s website. Secondly, the Board has introduced a Code of Conduct for members of the Membership Committee and Members’ Council; this has been enthusiastically adopted. A Code of Conduct for Directors has been in place for some years. Finally, at a Special General Meeting of members held in October, a series of rule changes were overwhelmingly approved by members. The amended rule book has now been formally approved by the FSA and can be downloaded from our website. It is the Directors’ opinion that these governance reforms are in the very best interests of all members and that they have strengthened the Society. The Directors are greatly encouraged by the increase in members voting in Society elections, something which was very evident in 2012; further details are available later in the report. As part of a process of ongoing improvement, the Directors have approved a new initiative for 2013. The Society’s elections will, as normal, be conducted as per the rules and overseen by the Secretary, however the Directors have appointed a members’ panel of three persons, whose
role will be to oversee the whole process, from start to finish, and to report their opinion to the members at the Annual General Meeting. The Directors believe that this initiative will further strengthen an already robust process; it simply provides another safeguard.
Membership and the Community The year has again been very busy for our membership function and there is a lot to update members about. Resource In our last year’s report, we informed members that the Board had authorised an increase in personnel to enable our range of activities for members to expand. Your Directors are pleased to be able to report the appointments of Georgina Leather as Assistant Member Relations Officer, and Carol Watts as Membership Assistant. We wish Georgina and Carol success in their new roles and look forward to their respective contributions. Michael Whalley has chaired the Membership Committee for six years and will step down from this particular role at the Annual General Meeting. The Directors would like to place on record their thanks and appreciation to Michael for his dedicated service. 2012 The International Year of Co-operatives Members will know that 2012 has been a momentous year for the movement, not just in our own country but throughout the world. Our membership function has worked tremendously hard throughout the year and has undertaken a number of initiatives, culminating in the Co-operatives United event. This event was held in Manchester in late October/early November and attracted close to 12,000 visitors. In thinking about 2012, your Board wanted to make a real contribution to the cause of co-operation and to have at least one project with an international dimension that would be a lasting legacy to the international year. As it happens, the Society has been able to initiate, and will continue to support, two such imaginative projects. The projects involve recycling bicycles for Africa, and the formation of a new co-operative in Lesotho, Southern Africa. At the time of writing this report, over 400 bicycles have been donated, but as the project has only been promoted in the Chelmsford area to date, we know that the potential to help those less fortunate than ourselves is enormous. With this in mind, your Board has authorised the purchase of a good quality second-hand vehicle, which will be donated to the charity. The vehicle will be “dual branded”, promoting both the charity and the Society. It will be a real asset in terms of improving the collection service; the costs of driver’s fuel, repairs, etc will be borne by the charity. The Lesotho project is progressing in accordance with agreed milestones; your Board receives periodic updates. Members will be further updated on the progress of both
projects at the Annual General Meeting, which this year takes place on 29th April. In addition to the overseas projects, our Member Relations Officer is also working very closely with some prospective new Co-operatives and we hope to be in a position to make a further announcement at the Annual General Meeting. This is, in part, reward for a lot of hard work which went into our Co-operative Development week, which was held in Chelmsford Central Library. Fairtrade Total sales of Fairtrade goods via the Society’s outlets amounted to £1,103,283; last year £841,839. Fairtrade sales as a proportion of Food sales have improved materially in comparison to last year. The Society held a very successful event as part of Fairtrade Fortnight in 2012 and plans to do something similar in 2013. During the year, the Society assisted the Chelmsford City Fairtrade Campaign and the Town Twinning Association to further promote Fairtrade. The Society provided financial assistance and a range of Fairtrade and local products at cost price, which enabled a Town Twinning visit to be made to Backnang in Germany. The visit was timed to coincide with a Christmas market and was successful in a number of ways; Michael Whalley, our Chair of Membership and a German speaker was able to go and assist. The Society has throughout the year collaborated with the Fairtraders Co-operative which is based in Holmfirth, West Yorkshire. The collaboration extended to the Fairtraders joining the Society’s stand at Co-operatives United. The arrangement was mutually beneficial. Members wishing to know more about the Fairtraders Co-operative should visit their website www.fairtraderscooperative.co.uk. 150th Anniversary Whilst it is still a few years away, the Society will celebrate its 150th anniversary in 2017. Work has begun on the project and the Society has recruited the services of a researcher who will liaise with the Society’s Member Relations Officer. If any members have any views on what the project might include, they are most welcome to contact the Member Relations Officer. With regards to the Society’s history, an exhibition will take place at Chelmsford Museum between November 2014 and January 2015. Further details will be given as the time approaches. Members’ Council and Youth Council The Society’s Members’ Council and Youth Council have continued to meet throughout the year. Following the resignation of Julie Adams, Gary Martin has been co-opted onto the Members’ Council until the Annual General Meeting.
www.chelmsfordstar.coop
10
Directors’ Report 52 weeks ended 26th January 2013 The Youth Council has faced some challenges, largely due to changes in personnel, but to some extent this was anticipated as students move from school to higher education. The Directors are however, pleased to be able to inform members that some very interesting Youth Council initiatives are in the “pipeline”. It is hoped to update members at the Annual General Meeting. Coffee Clubs It is pleasing to be able to report to members that the Society’s members’ coffee clubs have continued to go from strength to strength, so much so that Chelmsford is now held weekly. Launchpad The Society’s Launchpad initiative which is aimed at helping long term unemployed people regain selfconfidence and self-esteem, and ultimately employment has continued throughout the year and with some notable success stories. The Society’s Member Relations Officer, Keith Grinsted has been recognised for his work with Launchpad by the Open University. Keith has received an Alumni Award; the Directors would wish to congratulate Keith on this richly deserved achievement. Elections and Postal Voting As previously stated, the Directors were greatly encouraged by the number of members voting in last year’s elections and attending the Annual and Interim meetings, and hope that this highly encouraging trend will continue. One important measure is the number of members who have registered for a postal vote. The number now stands at 1,147; last year 1,119. During the year, 56 members were removed from the register, primarily because they had not voted for the past four years. If allowance is made for this factor, underlying growth is 8%. Community Card The Society’s long established and much respected Community Card scheme has continued to attract new supporters during the year. The number of groups in membership now stands at 251. Co-operation in Education The Society has continued to work with the Anglo European School, Ingatestone and St Clere’s, Stanford-le-Hope during the year. In the case of the Anglo European School, the Society assisted in a very successful work experience project. During the year, St Clere’s changed its legal status and is now a multi-stakeholder Academy. The Society is in the process of entering a new partnership agreement with them. In the case of the Anglo European School, the Society assisted in a very successful work experience project.
Annual Report and Financial Statements
During the year, St Clere’s changed its legal status and is now a multi-stakeholder Academy. The Society is in the process of entering a new partnership agreement with them. Charity of the Year The Society is currently supporting its sixth Charity of the Year, Canine Partners (Essex). Since the inception of our Charity of the Year initiative, the Society’s employees, members and customers have raised over £173,000, which has greatly assisted these very worthy local causes. Mr M Austin The Society’s former President, Maurice Austin was expelled from membership during the year. The Board gave very careful consideration to a number of serious complaints, all of which were upheld. As members would rightly expect, Mr Austin’s rights as per the Society’s rules were fully respected. Mr C Fegan Members will be aware that Mr Fegan, following his expulsion from membership, had indicated his intention to invoke the Society’s rules and seek resolution of three grievances via independent and binding arbitration. The Society, at significant cost, facilitated this request, but Mr Fegan did not comply with the requirements of the rules or the request of the arbitrator to make a formal submission within prescribed timescales. The matter has therefore been closed by default. Your Directors are pleased that this matter will incur the Society in no further costs; the impact of legal and governance costs in this financial year have amounted to £47,944. Chelmsford Co-operative Party The Chelmsford Co-operative Party was suspended on 5th October 2012 by the National Executive of the Party. Regrettably, our local Party had become dysfunctional and the very necessary relationship of trust that must exist between local elected officers had broken down. The Society has indicated in the strongest possible terms its desire to see the suspension lifted, and that the Party is re-invigorated by an infusion of new members. At the time of writing this report, a Special General Meeting has been held and a new Executive Committee put in place. The Society is hopeful that the difficulties can be resolved. The Society has pledged assistance with membership recruitment and with campaigns.
Employees The Board would again wish to place on record its deep appreciation for the efforts of all employees during what has been the most challenging year for over a decade.
The fact that our Society has continued to make progress is in the Board’s opinion testament to the continued dedication of our employees. A very well deserved bonus was again paid to all “shop floor” employees just before Christmas, the cost of which has been charged against the Society’s profits. During the year, the Board approved a partnership agreement with the Trade Union, USDAW; the Society looks forward to a mutually beneficial collaboration. Simon Sims, who works at our Hutton food store, won our 2012 Employee of the Year Award after which he then entered the Convenience Store National Sales Assistant of the Year Award 2012. The Society was consequently delighted when Simon won not only the ‘Best Sales Assistant’ in the multiple and Co-operative sector but also the prestigious ‘Community Hero’ award as well. The Directors extend congratulations to Simon on behalf of all members. Finally, the Board has approved another Star Awards event for 2013 which this year will take place on 4th June. These events are very much appreciated by employees and are an opportunity for the Society to recognise employees who go the “extra mile”.
The Year Ahead The economic prognosis is not good, as probably best emphasised by the Chancellor’s autumn statement that austerity measures will need to be continued at least until 2018. The Society’s strategy over many years has been to build a business with a solid and profitable base whilst also having a measure of diversity to enable us to better cope with the vagaries of the retail market place. All the evidence would suggest that this strategy has stood us in good stead. As members would rightly expect, the Society has put together a business plan for 2013/14, which whilst recognising the serious challenges which will have to be faced, is also underpinned by the values which have served us so well. There can of course, be no guarantees of success, commercial or otherwise, but your Directors face 2013 with a degree of optimism. Members can be assured that Directors, management and employees will be doing their utmost to ensure that the Chelmsford Star success story continues.
On behalf of the Board of Directors Ellen Tredwin – Secretary 28th March 2013
Remuneration Report
11
52 weeks ended 26th January 2013 To The Members The Remuneration Committee has met on five occasions this year. Lance Gardner chaired the Committee until the 2012 Annual General Meeting, when he stood down as President. Pauline Dodd, who became President in April, then took over the role of Chair as per established custom and practice. Roger Simons, our Vice President joined the Committee in April 2012. Roger Myddelton, the Society’s Secretary has acted as Secretary to the Committee throughout the year. The Society’s Chief Executive, Deputy Chief Executive and Secretarial Officer have attended on occasions. No official has, however, been present for any part of a meeting when their own terms and conditions have been under consideration.
The Society’s key remuneration objective is to both retain and attract Senior Executives of the right calibre thereby ensuring insofar as it is possible the progress of recent years.
Senior Executive Emoluments
Independent External Advice
In addition to the foregoing, the Head of Finance & Secretary was allowed to acquire his Society vehicle on retirement at a preferential discounted value.
The principal external advisor to the Committee is the Co-operative Employers Association; this has been the position throughout the year. The Committee is also empowered to seek additional independent advice whenever it deems necessary. No additional advice has been sought in the past year.
Bonus Payments The Society has paid a bonus to its Senior Executives in respect of financial and other performance criteria achieved in the financial year which ended on 28th January 2012; details are given in the analysis of Senior Executive emoluments.
The established practice of recording the Minutes of each meeting and circulating them to the whole Board, thereby ensuring that each Director is kept fully informed, has been maintained throughout the year. The Society’s policy on remuneration of the Senior Executives has remained unchanged throughout the year insofar as any changes in terms and conditions have been in accordance with the agreement between the Society and the National Association of Co-operative Officials. The principal tenets of the Society’s remuneration policy have remained unchanged, and are as follows;
If any bonus that relates to the current financial year is paid, this will be reported to members in next year’s report.
Service Contracts There have been no changes to the length of service contracts of any Senior Executive during the year.
Pension Benefits There has been no change in the pension arrangements of any Senior Executive in the past year, except that Tony Gudgeon and Roger Myddelton, both having reached 65 years of age, are no longer contributing members of the scheme.
Details of the total emoluments of the management executive are given in the notes which accompany the financial statements.
Directors’ Emoluments The total emoluments paid to each Director in the financial year are shown in detail below. The scale of fees and allowances which are paid to Directors is determined by the Society’s members every three years, the next review will take place this year at the Annual General Meeting, which will be held on 29th April 2013. The Directors are giving consideration to the possibility of an annual review but at the time of writing this report no final decision has been made. The total fees paid to members’ representatives elected or appointed to serve on the Membership Committee or Members’ Council amounted to £1,187; last year £1,615. Employees serving as Trustees of the Employees’ Superannuation Fund were paid fees totalling £2,118; last year £2,979. BY ORDER OF THE BOARD
Board Policy - Executive Remuneration It is the Society’s policy to be a fair and reasonable employer by demonstrating that remuneration of its Senior Executives is on a par with market rates for organisations of similar size and complexity. The Society also recognises other matters such as the cost of living in the South East of England.
The Society has agreed to pay a pension supplement in lieu of the Society’s contribution to all employees who continue to be employed beyond normal retirement age. Tony Gudgeon and Roger Myddelton are included in this arrangement.
A Gudgeon B Wood R Myddelton Chief Executive Deputy Chief Head of Finance & Officer Executive Officer Secretary
Basic Salary Bonus Benefits in Kind Employer’s Pension Contribution/Supplement
Total Emoluments
President and Chair of the Remuneration Committee 28th March 2013
Directors’ Emoluments
Senior Executive Emoluments
Date of Appointment
Pauline Dodd
E Tredwin Secretarial Officer
07.04.98
01.02.04
28.01.02
31.01.11
£
£
£
£
158 310 21 948 26 513
114 289 10 227 9 001
128 508* 9 557 28 848
41 794 1 300 329
17 010
12 458
10 737
4 556
223 781
145 975
177 650
47 979
£ Allowances & Expenses
£ Total
3 970 6 445 4 650 3 303 3 910 2 822 2 750 3 362 2 903 480 3 400
27 854 460 344 330 458 911 366 343 418
3 997 7 299 5 110 3 647 4 240 3 280 3 661 3 728 3 246 480 3 818
H Corby P Dodd L Gardner P Green A Gunn J Martin A Price J Saunders R Simons M Wallace M Whalley
Total Emoluments Total for 2011/12
*Includes balance of service contract on retirement, on 29th December 2012.
£ Board Fees Sub-Committee
37 995
4 511 42 506 41 400
Board Fees include £100 paid to each Director for their services as Directors of Star Holdings Chelmsford Limited.
www.chelmsfordstar.coop
12
Succession Planning Report & Directors’ Attendance 52 weeks ended 26th January 2013 To The Members In the report to members for last year, mention was made of our talent mapping project, the formulation of a new management structure and the fact that some internal appointments were starting to be made. The essence of the Society’s talent mapping project is to identify, nurture and develop talented employees with a view to ensuring, as far as it is possible, that the Society has the skills and abilities which are so necessary to meet the continuous challenges of business. It is accepted however that from time to time an external appointment will have to be made, the appointment of Lisa Waghorn as Chief Financial Officer being a good example. In the past year, a total of 21 Society employees have been promoted from within, which we view as being enormously encouraging in terms of the Society’s future. Members will be aware from the Directors’ Report that the key succession issues involving our Chief Executive Officer, Tony Gudgeon and our Head of Finance & Secretary, Roger Myddelton have been successfully resolved. It is hoped that this report is helpful to members.
Directors’ Attendance Record from February 2012 to January 2013 MEMBERSHIP COMMITTEE MEETINGS
BOARD MEETINGS Director
Total Meetings
Attendance
Member
H Corby
16
16
Board appointed:
P Dodd – President
16
16
P Dodd
2
L Gardner
16
11
P Green
8
7
P Green
16
15
A Gunn
8
7
A Gunn
16
16
J Martin
8
7
J Martin
10
8
M Whalley - Chair
8
8
A Price
16
16
Elected by members:
J Saunders
16
15
C Henton
8
7
F Mockett
2
1
10
8
5
5
R Simons – Vice President (from 30th April 2012)
M Wallace (from 30th April 2012)
6
5
M Whalley
16
14
Director
Total Meetings
Attendance
H Corby
3
3
L Gardner
3
1
A Gunn – Chair
3
3
J Martin
2
2
J Saunders
1
1
REMUNERATION COMMITTEE MEETINGS
Hazel Corby CHAIR Succession Planning
Annual Report and Financial Statements
Total Meetings
2
Co-opted - Chair of Members’ Council: S Sullivan
MEMBERS’ COUNCIL MEETINGS
AUDIT COMMITTEE MEETINGS
Director
Meetings called Attendance to attend
Member
Total Meetings
Attendance
J Adams
2
1
R Benjamin
1
0
L Bowser
4
4
D Edwards
1
1
C Henton
1
1
L Hope
4
4
L Hughes
3
2
J Knott
3
2
Attendance
G Martin
2
2
H Corby
5
5
J Milbank
3
3
P Dodd - Chair
5
5
S Sullivan - Chair
4
4
L Gardner
2
1
M Wallace
3
3
J Saunders
5
5
R Simons
3
3
TRUSTEES OF THE SUPERANNUATION FUND
SUCCESSION PLANNING SUB-COMMITTEE MEETINGS
Board Representatives
Director
Attendance
P Dodd
5
5
5
3
Total Meetings
Total Meetings
Attendance
H Corby - Chair
3
3
L Gardner
P Dodd
3
3
P Green
5
5
L Gardner
3
1
A Gunn
5
5
P Green
1
0
J Saunders
5
5
J Martin
2
1
Employee Representatives
Total Meetings
Attendance
F Golden
5
4
D Huggan
3
3
I Paterson
5
4
A Reynolds
5
4
A Price
3
3
M Whalley
3
3
Statement of Directors’ Responsibilities in respect of the Directors’ Report and the Financial Statements The Directors are required by Industrial and Provident Society law to ensure that the financial statements give a true and fair view of the state of affairs of the Group and Society at the end of each financial period, and of the profit and loss for that period. In preparing those financial statements the Directors are required to:
Board Certification The financial statements on pages 16 to 30 are hereby signed on behalf of the Board of Directors pursuant to the Friendly and Industrial and Provident Societies Act 1968.
• select suitable accounting policies and then apply them consistently; • make judgements and 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 Group will continue in business. The Directors are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the Group and enable them to ensure that the financial statements comply with the Industrial and Provident Societies Acts. They have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the Group and to prevent and detect fraud and other irregularities. After making all appropriate enquiries the directors have a reasonable expectation that the Group and Society has adequate resources to continue in existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the Group’s financial statements in accordance with section D1.1 of the Co-operatives UK Limited’s Corporate Governance Code of Best Practice Volume 1.
P R Dodd – President
A W Gudgeon - Chief Executive Officer
A W Gunn – Chair of Audit
E Tredwin – Secretary
28th March 2013
The Directors are responsible for the maintenance and integrity of the general and financial information included on the Society’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
www.chelmsfordstar.coop
13
14
Director’s Statement on Corporate Governance 52 weeks ended 26th January 2013 Internal Control
Risk monitoring and management Co-operatives UK
The Group operates under the Corporate Governance Code of Best Practice (the code) with the Board of Directors having the ultimate responsibility for the system of internal control and for reviewing its effectiveness. Accepting the responsibilities imposed by the code, the board has established a sub committee - the Audit Committee - to receive reports – financial, audit, management and corporate – in order to properly discharge its duties in monitoring and assessing risk to the business, both internally and externally, and to meet with the auditors and such other external advisers as deemed necessary. The Audit Committee has appointed Mutual One to provide an independent Internal Audit service in furtherance of its responsibility and promoting openness and transparency. The Audit Committee chair is not the society president. The Board has also established a Remuneration Committee whose responsibility is to review Senior Management remuneration and the Board’s own fees. The Committee has authority to seek external advice and reports annually to the Members. The process used by the Board to satisfy itself of the effectiveness of the system of internal control includes the following: •
regular receipt and examination of comprehensive financial and trading information and statistics;
•
reviewing specific matters reserved for Directors’ consideration and decision;
•
receiving reports of banking relationships, membership movements and Key Performance Indicators regularly;
•
reviewing Audit, Remuneration, Membership, Members’ Council and Succession Planning Committee reports and Pension Fund Trustee Meeting minutes.
The Group’s systems are designed to manage and minimise risks to the business and can provide only reasonable but not absolute assurance against material misstatement or loss.
Control environment The Group is committed to the highest standards of business conduct and seeks to maintain these standards throughout the Group with the Chief Executive Officer being responsible for the management of the Group within the policies laid down by, and under the direction of, the Board of Directors. The Group has in place an appropriate management and organisational structure with clear defined lines of expenditure, responsibility and delegation of authority for planning, controlling and monitoring the business operations.
Annual Report and Financial Statements
•
The Board reviewed the topic of a Search Committee in July 2012 and concluded that the Succession Planning Committee ensures that plans are in place for orderly succession of the management executive. The Society’s Members’ Council and Membership Committee encourages and increases democratic involvement of members thereby providing for the Board of Directors to be ‘refreshed’ with competent nominees more frequently.
The Audit Committee and society management have responsibility for identifying, evaluating, reporting, monitoring and taking necessary action to mitigate internal and external risks to the business, from whatever source, on a continuing basis. The Board has adopted a risk management policy and a framework that requires regular risk assessments with a focus on areas of greatest risk. Reports are made to the Audit Committee on significant risks which could affect the group.
Information and Communication The Group undertakes periodic strategic reviews including the evaluation of business alternatives. Each sector of operations prepares annual budgets and performance against budget is actively monitored at sector management level, supplemented by forecasts. Results and forecasts are consolidated for presentation to the board on a regular basis. Through these mechanisms, Group performance is continually monitored, risks identified in a timely manner, their financial implications assessed, control procedures re evaluated and corrective actions agreed and implemented.
•
Capital projects and asset acquisitions and disposals require board approval and the board receives regular reports on capital asset movements. Commitments requiring the use of the Society’s seal are authorised by members of the board acting as a Sealing Committee.
Monitoring and corrective action There are clear and consistent procedures in place for monitoring the systems of internal financial control, including the independent Internal Auditor who reports directly to the Audit Committee on their effectiveness. Additionally the Society has a ‘whistle blowing policy’ to reinforce and complement control procedures. During the year the Board has found no weaknesses in the systems of internal control of sufficient significance to require disclosure.
Chair Duration The Society requires the Chair (President) to serve three years as a Director before becoming eligible to stand as Chair. As the Society’s Rules limit the duration a Director may serve to nine years (three terms of three years) before taking a break, a natural break of at least one year as Chair is therefore provided.
•
Independent Professional Advice The Code prescribes that one third of the Board should be sufficient to request advice in order to meet their responsibilities, the Board considered this in July 2012 and adopted a protocol that requires at least four Directors (substantial minority) as an appropriate criterion for seeking independent professional advice.
Control procedures There are control procedures and authorisation levels in place designed to ensure complete and accurate accounting for financial transactions and to limit the potential exposure to loss of assets or fraud. Measures taken include physical controls, segregation of duties, management review and internal and external audit to the extent necessary to arrive at their respective audit opinions.
Search Committee
•
Board Annual Evaluation The Board does not undertake a formal annual evaluation of its own performance; however, collectively Directors identify training needs and have undertaken relevant training days in 2012. The Board has previously undertaken a skills audit to understand its strengths and weaknesses.
The Board fully reviewed the Society’s Rules in 2012 in consultation with Co-operatives UK; the Rule amendments were approved by members in October 2012. The Board conducted this review in the interest of good corporate governance leading to improved service of members’ needs. On behalf of the Board
Pauline Dodd – President
Statement of Compliance The Code recognises that Co-operative Societies differ in scale, size, trading profile and resources; it is inevitable that levels of implementation and compliance will differ. The Group is required to report to members elements of the Code which it does not comply with.
Tony Gudgeon – Chief Executive Officer
Ellen Tredwin – Secretary
Statement of Accounting Policies
15
52 weeks ended 26th January 2013 The following accounting policies have been applied consistently in dealing with items considered material in relation to the financial statements, except as noted below.
Basis of Accounting The financial statements are prepared on a group basis in compliance with all current accounting standards using the historic cost accounting convention.
Accounting Dates The financial statements for have been made up to the last Saturday in the year ended 31 January. The current period is the 52 weeks ended 26 January 2013 with comparative figures for 52 weeks ended 28 January 2012.
Basis of Consolidation The Group Accounts consolidate the accounts of the Society and its subsidiary, Star Holdings Chelmsford Ltd. a subsidiary society engaged in Property Management.
Gross Takings and Turnover Gross Takings include cash sales, goods and services sold on credit, property rentals, television rental income, agency commission and concessionaire commission, inclusive of sales related taxes such as VAT. In order to comply with FRS 5, where it is deemed that the society is acting as agent, gross agency sales are not recognised and only commission received under the agency agreement is recognised as sales. This applies to Bill payments in food, travel agency business and concessions income in Department Stores. Turnover is recognised as sales exclusive of VAT.
Assets Leased to the Group
Post retirement benefits
Assets subject to finance leases are included in the Balance Sheet at cost value less depreciation charged on the group’s normal accounting policy. Finance charges included in lease payments are charged against profit over the period of the lease based on the balance of the outstanding commitment. The outstanding commitment is analysed between current liability (being payable within one year) and long term liabilities (being payable after one year). Rentals due under operating leases are charged to the Revenue Account in the year in which the cost accrues.
The Group operates a contributory pension scheme providing benefits based on final pensionable pay, up to 27 January 2007, and Career Average Revalued Earnings from 28 January 2007, open to the majority of employees. Contributions are determined by a qualified actuary, based on actuarial valuations of the fund which are generally carried out every three years. The assets of the scheme are held separately from those of the Group and invested externally through the scheme trustees. Pension scheme assets are measured using market values. Pension scheme liabilities are measured using a projected unit method and discounted at the current rate of return on a high quality corporate bond of equivalent term and currency to the liability.
Funeral plans Liabilities under the funeral plan are based on the total commitment at the Balance Sheet date. Based on the Society’s experience of funerals carried out under the plan, liability has been apportioned between current liability for plans expected to be redeemed within one year and long term liability for the remainder. Since January 2002 all monies received for new funeral plans have been invested in individual whole life insurance policies with the Co-operative Insurance.
Members’ Benefits ‘A Share of the Profits’ Amounts unpaid at the balance sheet date are only recognised as a liability at that date to the extent that they are appropriately authorised and are no longer at the discretion of the society. Unpaid benefits that do not meet these criteria are disclosed in the notes to the financial statements. Amounts more than two years old remaining unspent are excluded. Liability is provided on all eligible turnover, irrespective of whether or not cash has been received.
Stocks Stocks are valued at the lower of cost and net realisable value after making allowance for defective or obsolete stock and slow moving lines.
Dividends receivable Under the provisions of FRS 21, dividends receivable are only accounted for when declared by the paying society.
Investment Income Interest and dividends receivable are accounted for on the accruals basis.
Taxation Corporation Tax – current provision has been made for the estimated liability on accounts to date, at the appropriate rate; Deferred Tax is recognised without discounting in respect of all timing differences between the treatment of certain items for taxation and accounting purposes which have arisen but not reversed by the balance sheet date, except as otherwise required by FRS 19.
At the Annual General Meeting on 29 April 2013, the Directors’ intend to propose a Share of the Profits in the region of £100,000 in respect of the year ended 26 January 2013. In accordance with FRS 21 this amount is not recognised as a liability in these financial statements.
Share capital - Lost contact Where the Society has evidence that a member no longer lives at the address shown in its register of members or where the member has made no purchase of goods or services from the society or participated in the Society’s democratic process for two years, then subject to following the rules of the Society, the Secretary may remove the name from the register of members and the Society may cancel their shares and forfeit to the Society the amount standing to the credit of such member in the share ledger of the Society, together with any sum of money representing interest or dividend credited to the member in the books of the Society in respect of their shares except amounts of investing members accruing interest.
The pension scheme surplus (to the extent that it is recoverable) or deficit is recognised in full. The movement in the scheme surplus/deficit is split between operating charges, finance items and, in the statement of total recognised gains and losses, actuarial gains and losses.
Repairs Repair expenditure is charged against profit in the year in which the cost is incurred.
Goodwill Purchased Goodwill is capitalised and written off over its useful economic life. Useful economic life ranges from 1 to 20 years.
Tangible Fixed Assets and Depreciation No depreciation is provided on Freehold Land. Other tangible fixed assets are depreciated by equal annual instalments over their estimated useful lives at the following minimum rates: Freehold Buildings
2% per annum
Leasehold property
over the unexpired portion of the lease
Fixtures, Fittings and Computer Equipment
10% per annum
Transport vehicles
25% per annum
Funeral vehicles
20% per annum
These rates have been reviewed in the light of recent investment. They are used to write off the cost or valuation of the assets over their expected lives.
www.chelmsfordstar.coop
16
Group Revenue Account 52 weeks ended 26th January 2013 2013 52 weeks Note
£
GROSS TAKINGS
2012 52 weeks Restated £
£
£
93 738 848
85 749 244
20 956 751
19 449 709*
72 782 097
66 299 535
6 393 538
5 757 830
66 388 559
60 541 705
Cost of Sales
45 347 094
40 453 804
GROSS PROFIT
21 041 465
20 087 901
19 078 297
17 966 298
1 963 168
2 121 603
-
402 356
1 963 168
1 719 247
less Agency & Concession Turnover excluded under the provisions of FRS 5
1(a)
SALES Less Value Added Tax TURNOVER
Expenses
1(b)
2
TRADING SURPLUS Exceptional charges
3
Surplus before Interest Net Interest Payable
4
269 000
Other Finance costs
24
64 000
SURPLUS FOR YEAR BEFORE DISTRIBUTIONS Share Interest Grants & Donations
6
267 000 30 000 333 000
297 000
1 630 168
1 422 247
287 309
272 901
194 000
147 000 481 309
SURPLUS FOR YEAR BEFORE PAYMENTS TO MEMBERS ‘Share of the Profits’ to members SURPLUS FOR YEAR BEFORE TAXATION Taxation SURPLUS FOR YEAR TO RESERVES
7
1 148 859
1 002 346
95 141
89 434
1 053 718
912 912
20 016
9 269
1 033 702
903 643
The Financial Statements are prepared on an unmodified historical cost basis, therefore a separate note of historical costs is not required. All the activities of the group are classed as continuing. The annexed notes form part of the financial statements. *See Note 1(a) - page 19
Annual Report and Financial Statements
419 901
Group Balance Sheet
17
52 weeks ended 26th January 2013 2013 Note
£
2012 £
£
£
USE OF FUNDS FIXED ASSETS Intangible Assets
8
3 601 592
3 313 387
Tangible Assets
9
15 129 519
13 824 133
Investments
10
65 399
62 299
18 796 510
17 199 819
CURRENT ASSETS Stocks
3 898 905
3 588 894
Debtors & Prepayments
11
3 048 303
2 662 664
Investments
10
1 578
17 746
48 265
105 578
Bank Cash in hand
351 436
389 839
7 348 487
6 764 721
CURRENT LIABILITIES Amounts falling due within one year: Creditors
Loans
- Member Rewards
187 619
208 426
- Trade
12
3 784 472
3 603 433
- Sundry
12
1 275 858
1 452 903
- Bank overdraft
13
1 048 993
676 260
- Banks
13
808 557
647 650
- Other
13
539 228
552 688
7 644 727
7 141 360
NET CURRENT (LIABILITIES)/ASSETS
(296 240)
TOTAL ASSETS LESS CURRENT LIABILITIES
(376 639)
18 500 270
16 823 180
LONG TERM LIABILITIES Amounts falling due after more than one year: Creditors
- Funeral plans
12
70 713
73 760
Loans
- Bank
13
5 486 137
4 857 403
- Other
13
650 670
Provisions for liabilities and charges
14
NET ASSETS EXCLUDING PENSION LIABILITY Net Pension Liability
24
NET ASSETS INCLUDING PENSION LIABILITY
873 141 (6 207 520)
(5 804 304)
1 250 000
1 270 016
13 542 750
12 288 892
(2 105 180)
(1 914 750)
11 437 570
10 374 142
FINANCED BY: SHARE CAPITAL
15
7 290 578
Current Interest Due
15
275 092
6 865 911 260 570 7 565 670
7 126 481
RESERVES General Reserve
16
3 488 109
Non-Distributable Reserve
16
383 791
MEMBERS’ FUNDS
2 872 837 374 824 3 871 900
3 247 661
11 437 570
10 374 142
The annexed notes form part of the financial statements.
www.chelmsfordstar.coop
18
Group Cashflow Statement 52 weeks ended 26th January 2013
Note NET CASH INFLOW OPERATING ACTIVITIES
17
RETURNS ON INVESTMENT AND SERVICING OF FINANCE
18
2013 52 weeks
2012 52 weeks
£
£
2 288 070 (510 769)
(506 229)
-
-
(2 512 386)
(598 417)
(735 085)
862 640
16 168
(3 740)
250 468
(1 465 307)
(468 449)
(606 407)
TAXATION Corporation Tax (Paid)/Refunded CAPITAL EXPENDITURE, DISPOSALS AND FINANCIAL INVESTMENT
19
NET CASH INFLOW (OUTFLOW) BEFORE MANAGEMENT OF LIQUID RESOURCES & FINANCING MANAGEMENT OF LIQUID RESOURCES Net Cash withdrawn from (added to) Investments FINANCING
20
INCREASE (REDUCTION) IN CASH RECONCILIATION OF NET CASHFLOW TO MOVEMENT IN NET DEBT
1 967 286
21 £
£
Increase (Reduction) in Cash
(468 449)
(606 407)
Cash outflow/(inflow) from debt and finance leasing
(205 095)
1 271 118
(16 168)
3 740
Change in Net Debt from cashflows
(689 712)
668 451
New Finance Leases
(348 615)
(597 094)
MOVEMENT IN NET DEBT
(1 038 327)
71 357
NET DEBT TO BEGIN YEAR
(7 093 979)
(7 165 336)
NET DEBT TO END YEAR
(8 132 306)
(7 093 979)
Cash outflow/(inflow) from liquid resources
The annexed notes form part of the financial statements.
Group Statement of Total Recognised Gains & Losses (STRGL) Year ended 26th January 2013 Note Surplus for Year after taxation from Revenue Account Actuarial Loss on pension scheme
2013 52 weeks
2012 52 weeks
£
£
1 033 702
903 643
24
(409 000)
(164 000)
Movement in deferred tax relating to pension scheme
7
(9 430)
(72 120)
Origination and reversal of timing differences
7
Total gains recognised since last Annual Report The annexed notes form part of the financial statements.
Annual Report and Financial Statements
-
60 500
615 272
728 023
Notes to the Financial Statements
Chelmsford Star the Co-operative
52 weeks ended 26th January 2013
at the heart of essex Note 1(a) Gross Takings Adjustment As disclosed in the Statement of Accounting Policies, the Group has adopted the FRS 5 application note. This application excludes the takings shown in note 1(a) from the Turnover adopted in note 1(b). 2013 52 weeks £ Bill payments accepted in Food stores Bill payments accepted in Non-Food stores Concession Takings including VAT (Non Food) Agency turnover less commission (Travel)
15 054 181 412 122 3 414 388 2 076 060
2012 52 weeks £ Restated* 13 782 024 242 504* 3 636 613 1 788 568
Exclude from ‘Turnover’ per FRS 5
20 956 751
19 449 709
Note 1(b) Net Sales Food less Bill payments (Bills)
£ 72 221 088 15 054 181
£ 66 321 189 13 782 024 57 166 907
Non-Food less Concession Sales and Bills less Bill payments (Bills) Funeral Services Travel less Sales as Agent Rental Property Income
8 041 458 2 720 323 412 122
52 539 165 8 133 435 2 903 389 242 504*
4 909 013 1 629 727 4 469 992 2 034 420
4 987 542 1 601 120 2 927 417 1 747 404
2 435 572 247 340 66 388 559
1 180 013 233 865 60 541 705
*Previous year data is restated to disclose and exclude from Turnover Bill Payments accepted in Braintree quadrant previously treated as immaterial. Note 2 Expenses
Personnel Costs (Note 5b) Occupancy Costs Water and Energy Costs Operating lease rentals: other Depreciation of owned assets Depreciation of assets held under finance leases Amortisation of intangible fixed assets Auditors fee: - Audit - Non Audit Directors’ & Committee Fees (Note 5f) Other Expenses
£ 9 793 453 2 025 371 936 186 32 117 758 264 274 251 231 795 25 565 17 270 41 300 4 942 725 19 078 297
£ 9 201 102 2 016 009 867 971 31 967 585 943 274 219 221 720 23 850 15 400 45 994 4 682 123 17 966 298
Auditors fees includes £22,000 of audit fees and £1,250 of non audit fees payable to the current auditors Bird Luckin Limited.
Note 3 Exceptional Charges £ Accelerated depreciation of computer software Impairment of Goodwill
-
£ 109 606 292 750 402 356
www.chelmsfordstar.coop
19
20
Notes to the Financial Statements 52 weeks ended 26th January 2013 Note 4 Net Interest Payable
Interest Payable (per Note 13) less Interest Receivable (per Note 10)
2013 52 weeks £ 272 755 3 755 269 000
2012 52 weeks £ 270 743 3 743 267 000
2013 Number 266 554 820
2012 Number Restated 238 530 768
2013 52 weeks £ 8 994 255 578 004 221 194 9 793 453
2012 52 weeks £ 8 440 127 562 084 198 891 9 201 102
Note 5 Employees a)
The average number of employees during the year was:Full-time Part-time
b)
The costs in respect of employees were:Salaries and Wages Social Security Costs Pension Fund Costs - (Note 24)
c)
The number of members of the Management Executive whose remuneration, including benefits and bonus but excluding pension contributions, fell in each remuneration bracket was:-
£35,001 to £45,000 £45,001 to £55,000 £55,001 to £65,000 £65,001 to £75,000 £115,001 to £125,000 £125,001 to £135,000 £165,001 to £175,000 £205,001 to £215,000
d)
2013 Number 2 1 1 1 1 1 1
2012 Number 1 2 2 1 1 1
2013 52 weeks £ 652 374 50 282 82 478 785 134 81 154
2012 52 weeks £ 609 922 45 832 64 236 719 990 61 442
866 288
781 432
The total remuneration of the Management Executive was as follows:-
Salaries Bonus Taxable Benefits Employer Pension Contributions at current service cost
Annual Report and Financial Statements
Notes to the Financial Statements
Chelmsford Star the Co-operative
52 weeks ended 26th January 2013
at the heart of essex Note 5 Employees continued
e)
2012 52 weeks £
158 310 21 948 26 513 206 771
158 459 19 205 28 812 206 476
17 256 224 027
20 102 226 578
The total remuneration of the Chief Executive Officer (the highest paid employee) included on previous page was as follows:Salary Bonus Taxable Benefits Pension Contribution at Current Service Cost (2011/12) and Salary Supplement (2012/13)
f)
2013 52 weeks £
Fees paid to Directors in respect of Board duties were:President including Sub-committee fees, etc
PR Dodd FPL Gardner MP Austin
Directors including Sub-committee fees, etc Directors’ fees Non-Board Membership Committee fees Employee Trustees Total paid to elected representatives
£ 4 502 1 718 -
£
6 220
8 157
31 775 37 995 1 187 2 118 41 300
33 243 41 400 1 615 2 979 45 994
848 7 309
Members will find more comprehensive disclosure of Directors’ and Executive Remuneration in the Remuneration Committee Report. Note 6 Grants and Donations
Membership Committee Co-op Party Grant Donations, Bereavement Groups, Community Card
2012 52 weeks £ 112 813 5 200 75 987 194 000
2011 52 weeks £ 111 006 6 592 29 402 147 000
£
£
Note 7 Taxation Analysis of tax change for the period Current Tax Total UK Corporation tax at 23% (2012 - 25%) Deferred tax
Nil £
Nil £
Origination and reversal of timing differences
(81 585)
(81 012)
Effect of tax rate change on opening balance
101 601
90 281
20 016
9 269
Taxation on surplus on ordinary activity Tax included in the Statement of Recognised Gains and Losses - STRGL Deferred tax Effect of tax rate change on opening Pension Liability Current year movement on deficit reduction
Origination and reversal of timing differences Tax included in the Statement of Recognised Gains and Losses
£
£
(51 060)
(52 620)
41 630
(19 500)
(9 430)
(72 120)
-
60 500
(9 430)
(11 620)
The Society has unutilised tax losses of £6,030,646 as at 26th January 2013 (£7,510,422 as at 28th January 2012)
www.chelmsfordstar.coop
21
22
Notes to the Financial Statements 52 weeks ended 26th January 2013 Note 7 Taxation continued
Current tax reconciliation Surplus on ordinary activities before tax Current tax at 24.34% (2012 26%) Effects of: Expenses not deductible for tax purposes Difference between depreciation and capital allowances Other short term timing differences Other permanent timing differences Pension scheme timing differences Group relief surrendered/claimed Utilisation of tax losses and other deductions
2013 52 weeks £
2012 52 weeks £
1 053 718
912 912
256 520
240 459
140 065 (9 441) (722) 6 001 (55 749) 23 567 (360 241)
73 900 54 863 (799) (63 743) (304 680)
-
-
Total current tax charge for the period (see above) Note 8 Fixed Assets - Intangible Goodwill
£
Cost at January 2012
4 810 209
Additions
520 000
Written off
(377 500) 4 952 709
Amortisation at January 2012
1 496 822
Provided this year
231 795
Written off
(377 500) 1 351 117
Net Book Value - January 2013
3 601 592
Net Book Value - January 2012
3 313 387
Note 9 Fixed Assets - Tangible Owned and Leased Land & Buildings £
Fixtures & Fittings £
Motor Vehicles £
Total
12 578 098
6 985 582
424 409
19 988 089
Additions
1 489 084
792 870
58 947
2 340 901
Disposals
-
-
(32 161)
(32 161)
Fully Written Off and Adjustments
-
(22 000)
(584 462)
Cost or valuation Brought forward at January 2012
Depreciation Brought forward at January 2012
(562 462)
14 067 182
7 215 990
429 195
21 712 367
171 560
6 163 956
3 123 564
2 868 832
Disposals
-
-
Fully Written Off and Adjustments
-
Provided this year
Net Book Value - January 2013
Net Book Value - January 2012
(562 462)
(29 661)
(29 661)
(21 500)
(583 962)
264 086 3 387 650
693 271 2 999 641
75 158 195 557
1 032 515 6 582 848
10 679 532
4 216 349
233 638
15 129 519
9 454 534
4 116 750
252 849
13 824 133
The Net Book Value of Land and Buildings comprise:At Cost less depreciation Freehold Freehold - Non Trading* Short Leasehold *Assets held for use in operating leases. The historical cost of these assets as at 26th January 2013 was £1,297,550 (28th January 2012 - £664,186). The accumulated depreciation of these assets as at 26th January was £138,072 (28th January 2012 - £119,038).
Annual Report and Financial Statements
£
2013 £
2012 £
8 208 614 1 159 478 1 311 440
7 634 164 545 148 1 275 222
10 679 532
9 454 534
Notes to the Financial Statements
23
52 weeks ended 26th January 2013 Note 9 continued Finance Leases The following amounts are included in Fixed Assets on previous page and relate to assets leased under current finance leases: Land & Buildings £
Fixtures & Fittings £
Motor Vehicles £
Total
Brought forward at January 2012
622 496
2 114 521
279 453
3 016 470
Additions
113 549
177 250
57 547
348 346
(407 813) 328 232
(395 440) 1 896 331
337 000
(803 253) 2 561 563
Brought forward at January 2012
90 053
505 878
79 873
675 804
Provided this year
16 930
197 722
59 599
274 251
Leases expired and disposals
(85 596) 21 387
(197 720) 505 880
139 472
(283 316) 666 739
Net Book Value - January 2013
306 845
1 390 451
197 528
1 894 824
Net Book Value - January 2012
532 443
1 608 643
199 580
2 340 666
£
Cost
Leases expired and disposals
Depreciation
Note 10 Investments The Group Balance Sheet includes Star Holdings Chelmsford Limited, a wholly owned subsidiary. Fixed Assets
The Co-operative Group
- Shares
Total Interest Receivable
- Shares
Interest
2012
2013
2012
2013
2012
£
£
£
£
£
£
61 270
61 270
-
-
3 666
3 666
-
-
1 578
17 746
89
77
- Loans Other I & P Societies
Current Assets
2013
4 129
1 029
-
-
-
-
65 399
62 299
1 578
17 746
3 755
3 743
3 755
3 743
per Note 4
Note 11 Debtors Receivable Within One Year 2013 £ Customer Debts
Expenses
Corporation Tax Repayable Other Sundry Debts
2012
2013
2012
£
£
£
Total per Balance Sheet 2013 £
2012 £
- Travel
564 749
528 621
564 749
528 621
- Funeral
184 361
196 266
184 361
196 266
- Property
56 319
21 085
56 319
21 085
- Others
161 712
54 478
161 712
54 478
- Prepayments
663 688
630 705
663 688
630 705
46 191
45 439
46 191
45 439
1 167 634
1 027 863
1 167 634
1 027 863
- Stocks Trade Debts (Credits due)
Receivable After One Year
-
-
182 926
137 484
3 027 580
2 641 941
20 723 20 723
20 723 20 723
20 723
20 723
182 926
137 484
3 048 303
2 662 664
www.chelmsfordstar.coop
24
Notes to the Financial Statements 52 weeks ended 26th January 2013 Note 12 Creditors Current - Falling Due Within One Year
Long Term - Falling Due After One Year
2013
2012
2013
2012
£
£
£
£
2 871 673
2 667 911
70 713
73 760
Trade Creditors Ledgered Unledgered
912 799
935 522
3 784 472
3 603 433
Sundry Creditors 50 839
53 802
Week in Hand Payroll
Holiday Pay
146 481
139 395
Accrued Charges
551 008
751 238
Sales Deposits VAT due to HM Revenue and Customs
84 974
87 044
195 736
120 634
PAYE due to HM Revenue and Customs
77 589
95 403
National Insurance due to HM Revenue and Customs
79 197
95 765
7 857
8 195
-
9 344
82 177
92 083
1 275 858
1 452 903
70 713
73 760
5 060 330
5 056 336
70 713
73 760
19.3
19.3
Funeral Plans - former scheme Other Members’ Accounts Miscellaneous Creditors
TOTAL Trade Creditor Days - Number of days
Trade Creditor Days represents the ratio between the amounts invoiced by suppliers to the Society in the year and the amounts owing to Trade Creditors at the year end date. Note 13 Loans Falling Due Within One Year
Bank Overdraft and miscellaneons (a)
Falling Due After One Year
Interest Payable
2013
2012
2013
2012
2013
2012
£
£
£
£
£
£
1 048 993
676 260
-
-
13 200
6 554
Co-op Bank - Treasury Loans (b)
643 890
489 950
4 383 734
3 577 182
116 005
109 250
Allied Irish Bank Loans (c)
105 925
101 453
541 869
660 945
12 450
13 914
Clydesdale Bank Loans (d)
58 742
56 247
560 534
619 276
25 000
27 086
808 557
647 650
5 486 137
4 857 403 106 100
113 939
272 755
270 743
Bank Loans sub-total Finance Leases (e)
539 228
552 688
650 670
873 141
2 396 778
1 876 598
6 136 807
5 730 544
Total Interest Payable - see Note 4
Terms of Repayment
Details of Security
Interest
(a) on demand (b) over 15 years from date of advance
Secured by legal charge on specific property Secured by legal charge on specific property
(c) over 15 years from date of advance (d) over 15 years from date of advance (e) over period of lease up to 5 years
Secured by legal charge on specific property Secured by legal charge on specific property Secured against leased assets
Bank base rate plus margin One loan fixed at 2.34375% plus margin Four loans at bank base rate plus margin Bank base rate plus margin Fixed rate (1.99%) plus margin Negotiated rates
Annual Report and Financial Statements
Notes to the Financial Statements
25
52 weeks ended 26th January 2013 Note 13 Loans - continued Commitments
Bank Loans
Finance Leases
2013
2012
2013
2012
£
£
£
£
Loan amounts falling due: Current Liabilities - Within One Year Between One and Two Years
808 557
647 650
539 228
552 688
837 015
672 059
342 289
464 741
Between Three and Five Years
1 954 636
1 851 635
308 381
408 400
In more than Five Years
2 694 486
2 333 709
-
-
Long Term Liabilities - Sub Total
5 486 137
4 857 403
650 670
873 141
6 294 694
5 505 053
1 189 898
1 425 829
Total loans and Total Leases
Operating Leases As at 26th January 2013 the Group had annual commitments under non-cancellable operating leases as follows:
Land & Buildings
Others
2013
2012
2013
2012
£
£
£
£
Operating leases expiring: -
30 200
12 013
11 327
Between Two and Five Years
Within One Year
182 500
295 000
48 016
54 484
In more than Five Years
730 500
679 750
-
-
913 000
1 004 950
60 029
65 811
Note 14 Provisions for Liabilities and Charges 2013 £
2012 £
Provision for deferred tax (628 820)
(638 250)
Tax losses carried forward and other deductions
Defined benefit pension scheme
(1 250 000)
(1 270 016)
Total deferred tax asset
(1 878 820)
(1 908 266)
1 908 266
1 929 155
Movement in provision Provisions at 28th January 2012 Deferred tax charged in the Revenue Account in the period Statement of Recognised Gains and Losses in the period (see note 7) Provisions at 26th January 2013
(20 016)
(9 269)
(9 430)
(11 620)
1 878 820
1 908 266
www.chelmsfordstar.coop
26
Notes to the Financial Statements 52 weeks ended 26th January 2013 Note 15 Share Capital 2013
2012
£
£
Balance to Begin Year
6 865 911
6 749 302
Interest Previous Year
260 570
248 003
Interest - Interim and account closure Contributions
12 217
12 331
703 052
497 010
Dormant accounts reactivated Sub total Less Withdrawals Balance to End Year Interest provided at 26th January 2013 (28th January 2012)
377
595
7 842 127
7 507 241
551 549
641 330
7 290 578
6 865 911
275 092
260 570
The Society abides by a code of practice which requires it to provide a statement to its shareholders of the nature of their investment and any change affecting it. The position each member occupies as a shareholder of Chelmsford Star Co-operative Society is no different to that of a shareholder in any corporate body in the sense that, if the business fails, they may not have all, or any, of their investment returned to them. Investments are withdrawable without penalty. The Society, unlike banks and building societies, is not subject to prudential supervision by the Financial Services Authority. Note 16 Reserves
A) General Reserve Balance to begin the year From Revenue account
2013
2012
£
£
2 872 837
2 144 814
1 033 702
903 643
(409 000)
(164 000)
(9 430)
(72 120)
From STRGL: Actuarial loss Movement in pension scheme deferred tax Deferred tax on origination and reversal of timing differences Balance to End Year
B) Non-Distributable Reserve Dormant Share Capital Balance to Begin Year
-
60 500
3 488 109
2 872 837
374 824
375 419
Dormant Loans Transferred from Creditors
9 344
-
Transfers to Active Share Capital
(377)
(595)
383 791
374 824
Balance to End Year
Note 17 Reconciliation of Operating Surplus to Net Cashflow from Operating Activities 2013
2012
52 weeks Trading Surplus Exceptional charges Grants and Donations Depreciation FRS 17 pension adjustments
52 weeks
£
£
1 963 168
2 121 603
-
(402 356)
(190 729)
(144 601)
1 032 515
969 768
56 000
-
231 795
514 470
(Increase)/Decrease in Stocks
(310 011)
(408 281)
(Increase)/Decrease in Debtors
(376 295)
(284 137)
Increase/(Decrease) in Creditors
(118 373)
(399 180)
2 288 070
1 967 286
Amortisation of Goodwill
Net Cashflow from continuing operating activities
Annual Report and Financial Statements
Notes to the Financial Statements
27
52 weeks ended 26th January 2013 Note 18 Returns on Investments and Servicing of Finance 2013 52 weeks
2012 52 weeks
£ Interest Received
£
3 832
3 741
Interest Paid
(163 187)
(165 905)
Interest Element of Finance Lease Rentals
(106 159)
(114 718)
Share Interest Paid
(245 255)
(229 347)
Net Cashflow for Returns on Investments and Servicing of Finance
(510 769)
(506 229)
Note 19 Capital Acquisitions, Disposals and Financial Investment Purchase of Intangible Fixed Assets Purchase of Tangible Fixed Assets
£
£
(520 000)
(119 000)
(1 992 286)
(479 417)
Purchase of Fixed Asset Investment
(3 100)
-
Proceeds from Tangible Fixed Assets
3 000
-
(2 512 386)
(598 417)
Net Cashflow for Capital Expenditure Disposals and Financial Investment
Note 20 Financing £ Share Capital increase (reduction)
£
396 758
85 027
Other Bank Loan repayments
(170 851)
(166 933)
Co-operative Bank Treasury Loan repayments
(539 508)
(489 548)
(3 385)
(7 216)
(584 546)
(614 637)
Funeral Schemes Capital Repayment of Finance Lease Rentals New Bank Loans drawndown Repayment of Pension Fund deficit Net Cashflow from Financing
1 500 000
-
(348 000)
(272 000)
250 468
(1 465 307)
Note 21 Analysis of Net Debt To Begin
Cash Flows
Non-Cash Changes £
To End
£
£
(647 650)
(160 907)
Debt due after one year
(4 857 403)
(628 734)
Finance Leases
(1 425 829)
584 546
(348 615)
(1 189 898)
(6 930 882)
(205 095)
(348 615)
(7 484 592)
(180 843)
(468 449)
Debt due within one year
Cash at Bank and in hand Current Asset Investments
17 746
(16 168)
(7 093 979)
(689 712)
£ -
(808 557)
-
(5 486 137)
-
(649 292)
-
1 578
(348 615)
(8 132 306)
Note 22 Major Non-Cash Transactions During the year the Society entered into finance lease arrangements with a total capital value of £348,615 (January 2012 - £597,094). Note 23 Capital Commitments At 26th January 2013 there are capital commitments amounting to £89,000 not provided for in these financial statements (January 2012 - £197,000). At 26th January 2013 capital commitments of £143,000 have been authorised by the Board of Directors, but not contracted (January 2012 - £Nil).
www.chelmsfordstar.coop
28
Notes to the Financial Statements 52 weeks ended 26th January 2013 Note 24 Accounting for Pensions Pension Disclosure under FRS 17
At year end 26th January 2013 £
Change in benefit obligation Benefit obligation at beginning of year
At year end 28th January 2012 £
13 361 774
12 292 534
Current service cost
221 194
198 891
Interest cost
647 000
672 000
Member contributions
130 592
135 417
Actuarial losses
958 000
489 000
Benefits paid Benefit obligations at year end
(661 000)
(426 068)
14 657 560
13 361 774
10 808 774
9 661 534
Change in plan assets Fair value of plan assets at beginning of year Expected return on plan assets
583 000
642 000
Actuarial gains on plan assets
549 000
325 000
Employer contributions
513 194
470 891
Member contributions
130 592
135 417
Benefits paid
(661 000)
(426 068)
11 923 560
10 808 774
Present value of wholly or partly funded obligations
14 657 560
13 361 774
Fair value of plan assets
11 923 560
10 808 774
Deficit for funded plans
2 734 000
2 553 000
Present value of wholly unfunded obligations
-
-
Related deferred tax liability
-
-
Unrecognised past service (cost) benefit
-
-
Effect of asset limit
-
-
Fair value of plan assets at year end Amounts recognised in the Balance Sheet Plans wholly unfunded and plans wholly or partly funded
Deferred tax at 23% (2012 - 25%) (Note 14)
(628 820)
(638 250)
2 105 180
1 914 750
Liabilities Assets
2 105 180 -
1 914 750 -
Net Liability
2 105 180
1 914 750
Net liability Amounts in the Balance sheet
Components of Pension cost Amounts recognised in the Revenue Account Current service cost Interest cost Expected return on plan assets Other Finance costs Past service costs Total pension cost recognised in the Revenue Account
At year end 28th January 2012
£
£
221 194 647 000 (583 000)
Actual return on plan assets Amount recognised in STRGL Actuarial gains (losses) immediately recognised Effect of asset limit Total pension cost recognised in the STRGL Cumulative amount of acturial gains (losses) immediately recognised
Annual Report and Financial Statements
At year end 26th January 2013
198 891 672 000 (642 000)
64 000 285 194
30 000 228 891
1 132 000
967 000
(409 000) (409 000)
(164 000) (164 000)
(4 738 500)
(4 329 500)
Notes to the Financial Statements
29
52 weeks ended 26th January 2013 Note 24 Accounting for Pensions (continued) Principal acturial assumptions Weighted average assumptions used to determine benefit obligations at
26th January 2013
28th January 2012
Discount rate
4.7%
4.9%
Rate of salary increases
4.5%
4.5%
Rate of inflation
3.3%
3.0%
Rate of increase in pensions in deferment
3.3%
3.0%
Rate of increase in pensions in payment (5% LPI)
3.2%
3.0%
Rate of increase in pensions in payment (2.5% LPI)
2.5%
2.5%
Weighted average assumptions used to determine net pension costs for year ended
26th January 2013
28th January 2012
Discount rate
4.9%
5.5%
Expected long-term rate of return on plan assets
5.4%
6.6%
Rate of salary increases
4.5%
4.9%
Rate of inflation
3.0%
3.4%
Rate of increase in pensions in deferment
3.0%
3.4%
Rate of increase in pensions in payment (5% LPI)
3.0%
3.4%
Rate of increase in pensions in payment (2.5% LPI)
2.5%
2.5%
Assumed life expectations on retirement at age 65
26th January 2013
28th January 2012
Years
Years Male
Retiring today (member age 65)
22.5
Retiring in 20 years time (member age 40 today, 45-2012)
24.2
21.0 22.8 Female
Retiring today (member age 65)
24.9
24.2
Retiring in 20 years time (member age 40 today, 45-2012)
26.9
26.1
Plan assets
26th January 2013
28th January 2012
Percentage of plan assets by asset allocation Equities
60.0%
57.0%
Bonds
32.0%
35.0%
Real Estate
7.0%
7.0%
Other
1.0%
1.0%
100%
100%
Equity securities
7.0%
6.7%
Debt securities
3.5%
3.2%
Property
7.0%
6.7%
Other
3.5%
3.2%
5.8%
5.4%
Expected return on assets by asset allocation
To develop the expected long-term rate of return on asset assumptions, the Society considered the current level of expected returns on risk free investments (primarily government bonds), the historic level of the risk premium associated with other asset classes in which the portfolio is invested and the expectations for future returns on each asset class. The expected return on each asset class was then weighted based on the actual asset allocation to develop the expected long-term rate of return on asset assumption for the portfolio. This resulted in the selection of the 5.4% assumption for the year ending January 2013 and 5.8% assumption for the year ending January 2014.
www.chelmsfordstar.coop
30
Notes to the Financial Statements 52 weeks ended 26th January 2013 Note 24 Accounting for Pensions (continued) History of experience gains and losses
Financial Year ending in January 2013
2012
2011
2010
£
£
£
£
2009 £
12 292 534
10 966 948
8 593 081
Benefit obligations at year end
14 657 560
13 361 774
Fair value of plan assets at year end
11 923 560
10 808 774
9 661 534
8 207 948
6 493 081
2 734 000
2 553 000
2 631 000
2 759 000
2 100 000
(549 000)
(325 500)
(712 500)
(1 083 000)
1 923 000
(5.0%)
(3.0%)
(7.0%)
(13.0%)
30.0%
Deficit Difference between actual and expected return on scheme assets amount percentage of plan assets Experience and (losses) on plan liabilities amount percentage of scheme liabilities
244 000
-
-
26 000
-
2%
0%
0%
0%
0%
Other required disclosure amounts Contributions expected to be paid to the plan during the year beginning after this reporting period - i.e. to 25th January 2014 amount to £513,000. Balance Sheet reconcillation excluding related deferred taxation
Net liability at the beginning of the year
26 January 2013
28 January 2012
£
£
2 553 000
2 631 000
Pension expense recognised in the Revenue Account in the year
285 194
228 891
Amounts recognised in the STRGL in the year
409 000
164 000
(513 194)
(470 891)
2 734 000
2 553 000
Employer’s contributions in the year Net liability at the end of the year
The Society operates a defined benefit pension scheme (the plan) - The Chelmsford Star Co-operative Society Limited Employees’ Superannuation Fund. A full acturial valuation was carried out as at 28th January 2012 and updated to 26th January 2013 by a qualified independent actuary. The service cost has been calculated using the Projected Unit method. Note 25 Subsidiary Society At 26th January 2013 the Group consisted of Chelmsford Star Co-operative Society Limited and one wholly owned subsidiary society, Star Holdings Chelmsford Limited (SHC). The principal activity of the subsidiary society is Property Management.
Annual Report and Financial Statements
Independent Auditor’s Report INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF CHELMSFORD STAR CO-OPERATIVE SOCIETY LIMITED We have audited the group and parent society financial statements of Chelmsford Star Co-operative Society Limited for the year ended 26 January 2013, which comprise the Group Revenue Account, the Group Balance Sheet, the Group Cash Flow Statement, the Group Statement of Total recognised Gains and losses and the related notes. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). This report is made solely to the society’s members, as a body, in accordance with Section 9 of the Friendly and Industrial and Provident Societies Act 1968. Our audit work has been undertaken so that we might state to the society’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 society and the society’s members as a body, for our audit work, for this report, or for the opinions we have formed.
31
Opinion on financial statements In our opinion the financial statements: • give a true and fair view of the state of the group’s and parent society’s affairs as at 26th January 2013 and of its income and expenditure for the period then ended; and • have been properly prepared in accordance with the Industrial and Provident Societies Act 1965 and the Friendly and Industrial and Provident Societies Act 1968.
Matters on which we are required to report by exception We have nothing to report in respect of the following matters where the Friendly and Industrial and Provident Societies Act 1968 requires us to report to you if, in our opinion: • a satisfactory system of internal control over transactions has not been maintained; or • the society has not kept proper accounting records; or • the financial statements are not in agreement with the books of account; or • we have not received all the information and explanations we need for our audit.
Respective responsibilities of the directors and the auditor As explained more fully in the Statement of the Directors’ Responsibilities set out on page 13, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board’s Ethical Standards for Auditors.
Scope of the audit
Bird Luckin Limited Aquila House Waterloo Lane Chelmsford Essex CM1 1BN 28th March 2013
An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the society’s circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the directors; and the overall presentation of the financial statements. In addition, we read all the financial and non-financial information in the Annual Report to identify material inconsistencies with the audited financial statements. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report.
www.chelmsfordstar.coop
32
Group Value Added Statement 52 weeks ended 26th January 2013 2013 52 weeks £ NET SALES including asset sale proceeds
2012 52 weeks Restated %
£
72 782 097
66 299 535
6 393 538
5 757 830
TURNOVER
66 388 559
60 541 705
Less Bought-in materials, services and net book value of disposals
52 310 428
47 481 744
VALUE ADDED IN THE YEAR
14 078 131
Less Value Added Tax
APPLIED AS FOLLOWS: To Employees Net pay Employees Income Tax, National Insurance and pension contributions
100.0%
13 059 961
7 520 930
7 000 234
1 479 409
1 439 893
Society contributions for National Insurance
573 004
562 084
Society normal contributions to the pension fund
220 110
198 891
9 793 453 To Members and other providers of capital Share interest
69.57%
9 201 102
287 309
272 901
Interest on bank loans
166 655
156 804
Interest on other loans and leases
106 100
113 939
Other finance costs - pension fund
64 000
30 000
1 061 408
1 087 100
1 685 472
1 660 744
Rent payable
less investment income and rents receivable
(73 864) 1 611 608
To Members and customers Share of the profits and 500 Club rewards Other member benefits and donations Member Relations activities
11.45%
1 557 143
70.45%
11.92%
166 514
75 988
29 402
112 813
111 006 2.57%
306 922
For the replacement of assets and expansion of the Society Depreciation
1 257 609
1 081 882
Retained pre-tax surplus
1 053 718
912 912
Annual Report and Financial Statements
100%
(103 601)
172 942
361 743
%
2.35%
2 311 327
16.42%
1 994 794
15.27%
14 078 131
100.0%
13 059 961
100.0%
Standing Orders - Members’ Meetings 1.
The Order of business at every general or special meeting of the Society shall be in accordance with the printed agenda of business issued with the notice of the respective meeting.
2.
Except in the case of a special general meeting called upon the requisition of members, the agenda of every meeting shall be made out in the form and order approved by the Directors and shall include only such business as is decided upon by the Directors.
3.
All notices of motion for consideration at any general meeting must be submitted to the Secretary in writing, signed by the member giving the notice, not later than twenty one clear days prior to the date of the meeting. Any amendments to any proposal on the agenda at any general meeting must be received in writing by the Society at least fourteen days prior to the meeting (Rule 9.3).
4.
No member shall be allowed to speak more than once on any motion (other than by drawing the attention of the Chair to a point of order) except the mover of the motion who shall be allowed the right of reply to amendments and before the final vote is taken. No member shall speak after the mover has made his reply to the motion after which the question shall be put from the chair.
5.
No member shall be allowed to speak for more than three minutes, except the mover, who may speak for five minutes and take three minutes in reply. Immediately before the mover replies, and before a vote is taken, the Board of Directors shall have the right to speak for not more than six minutes.
6.
An amendment to a motion must be moved and seconded. No other amendment may be discussed until the first amendment has been disposed of. No person may move or second more than one amendment to the original motion. If an amendment be carried it becomes the substantive motion. Voting on motions and amendments will be on a show of hands or voting cards, if issued.
7.
Any member who has not spoken to the question before the meeting may at any time during the course of the debate move “That the question be now put”. Such motion (if accepted by the Chair) must be made without any accompanying speech and must be forthwith put without amendment or debate, and should such motion be adopted, the chairman shall, subject to the right of reply of the mover of the question under discussion, at once put the question.
8.
Any member choosing to speak upon any question whatsoever must rise in his place and address himself to the chairman. When two or more members rise at the same time, the chairman shall indicate the member who is to speak first. Members should state their name and may speak from the Rostrum at their discretion.
9.
Whenever the chairman rises to speak, no member shall continue standing, nor shall any member rise until the chairman resumes his seat.
33
Complaints by Members A member who has any complaint to make as to the quality, quantity, or price of any goods or services supplied by the Society, or the conduct of any officer or employee of the Society, shall send the particulars of such complaint to the Board who shall inquire into and decide upon them, subject to an appeal from any such decision to an ordinary meeting of members; but no such complaint shall be brought before any such meeting except on appeal.
10. A member shall confine his speech strictly to the motion under discussion, or to the amendment or to a question of order. 11. The chairman may call attention to continued irrelevance, tedious repetition, or any breach of order on the part of a member and may direct such member to discontinue his speech. 12. Any one or more of these standing orders may be suspended at any meeting by the vote of a two-thirds majority of members present at the meeting. The decision of the chairman upon any point of order shall be final.
www.chelmsfordstar.coop
34
Notes
Annual Report and Financial Statements
Addresses and Telephone Numbers
‘quadrant’ department stores: 220 Moulsham Street, Chelmsford, Essex CM2 0LS • 01245 490101 George Yard, 9/15 Rayne Road, Braintree, Essex CM7 2QA • 01376 321303
62/64 Woodland Avenue, Hutton, Brentwood, Essex CM13 1HH • 01277 228042 16 Main Road, Danbury, Essex CM3 4NQ • 01245 227733 42 Challis Lane, Braintree, Essex CM7 1AN • 01376 321615
35
Petrol Filling Station: 372/376 Baddow Road, Chelmsford, Essex CM2 9RA • 01245 493900
Off Licence: 210 Main Road, Hawkwell, Hockley, Essex SS5 4EG • 01702 207577
62 Church Street, Bocking, Braintree, Essex CM7 5JY • 01376 326516
Post Office facilities:
174/176 Cressing Road, Braintree, Essex CM7 3PL • 01376 320952
16 Main Road, Danbury, Essex CM3 4NQ • 01245 222001
The co-operative food stores:
203/205 Mountbatten Road, Braintree, Essex CM7 9UL • 01376 334479
35/39 Masefield Road, Braintree, Essex CM7 1AA • 01376 348083
40 Duke Street, Chelmsford, Essex CM1 1JA • 01245 345490
Bridge End Lane, Great Notley, Braintree, Essex CM77 7GN • 01376 334644
Funeral Services:
25/27 Exchange Way, Chelmsford, Essex CM1 1XS • 01245 266752
115/117 Ferry Road, Hullbridge, Essex SS5 6ET • 01702 232388
164/170 Meadgate Avenue, Great Baddow, Chelmsford, Essex CM2 7LJ • 01245 354759
216 Main Road, Hawkwell, Hockley, Essex SS5 4EG • 01702 204939
372/376 Baddow Road, Chelmsford, Essex CM2 9RA • 01245 493900
7/8 St. Peter’s Terrace, Wickford, Essex SS12 0AP • 01268 768833
83 Barnard Road, Galleywood, Chelmsford, Essex CM2 8RS • 01245 474591
157/159 Nevendon Road, Wickford, Essex SS12 0NY • 01268 766999
Beehive Lane, Westbourne Grove, Chelmsford, Essex CM2 9RP • 01245 357761
493/495 Southchurch Road, Southend-on-Sea, Essex SS1 2PH • 01702 461550
The co-operative bed centre: Unit 4/6, The Knightswick Shopping Centre, Furtherwick Road, Canvey Island, Essex SS8 7AD • 01268 680297
156 Gloucester Avenue, Moulsham Lodge, Chelmsford, Essex CM2 9LG • 01245 258089 15 Havengore, Springfield, Chelmsford, Essex CM1 6JP • 01245 262923 14/15 Torquay Road, Springfield, Chelmsford, Essex CM1 6NF • 01245 347868 108 Kings Road, Chelmsford, Essex CM1 2BB • 01245 353630 47/49 Main Road, Broomfield, Chelmsford, Essex CM1 7BU • 01245 440316 Trent Road, Chelmsford, Essex CM1 2LQ • 01245 258585 26 Melbourne Parade, Chelmsford, Essex CM1 2DW • 01245 347774 17 Bridge Street, Writtle, Chelmsford, Essex CM1 3EY • 01245 421148 78/82 Forest Drive, Chelmsford, Essex CM1 2TS • 01245 258855
85/87 West Road, Shoeburyness, Essex SS3 9DT • 01702 290679 159 Church Road, Thundersley, Benfleet, Essex SS7 4EN • 01268 753908
78 Broomfield Road, Chelmsford, Essex CM1 1SS • 01245 353978 348 Baddow Road, Chelmsford, Essex CM2 9RA • 01245 268993 (corner of Beehive Lane) 60 The Green, Writtle, Chelmsford, Essex CM1 3DU • 01245 422622 57A Main Road, Danbury, Essex CM3 4NG • 01245 221444 6 Clare Road, Braintree, Essex CM7 2PA • 01376 551951 47 High Street, Ingatestone, Essex CM4 9DU • 01277 350988 10 Jutland House, White Hart Way, Great Dunmow, Essex CM6 1WX • 01371 875542
173/175 Long Road, Canvey Island, Essex SS8 0JD • 01268 693004
The co-operative travel branches:
12 Pauls Court, Meppel Avenue, Canvey Island, Essex SS8 9RZ • 01268 690092
‘quadrant’, 220 Moulsham Street, Chelmsford, Essex CM2 0LS • 01245 490290
12 Stanford Place, Princess Margaret Road, East Tilbury, Essex RM18 8YP • 01375 857786
‘quadrant’, George Yard, 9/15 Rayne Road, Braintree, Essex CM7 2QA • 01376 551444
14/16 Calcutta Road, Tilbury, Essex RM18 7QU • 01375 843401
Customer Service facilities:
3/4 Canterbury Road, South Ockendon, Essex RM15 6NH • 01708 852488 105 Mungo Park Road, Rainham, Essex RM13 7PP • 01708 520984
‘quadrant’, 220 Moulsham Street, Chelmsford, Essex CM2 0LS • 01245 490101 ‘quadrant’, George Yard, 9/15 Rayne Road, Braintree, Essex CM7 2QA • 01376 321303
3/5 Spreadeagle Place, Ingatestone, Essex CM4 9EA • 01277 353124 1 Fingrith Hall Road, Blackmore, Ingatestone, Essex CM4 9EA • 01277 822231
www.chelmsfordstar.coop
Chelmsford Star Co-operative Society Limited Registered office: 220 Moulsham Street, Chelmsford, Essex. Registered number: 973R, Essex www.chelmsfordstar.coop • email: [email protected] This Report is printed on recycled material.