Lincolnarchive.lincolnshire.coop/1990/1991_-_Directors'_Report.pdf · 2016. 2. 19. · Lincoln...

Lincoln Co-operative N~~c ct." i (&',

DIRECTORSMrs E. J. Reast

Mr A. Middleton J.P.Mr R. Charman

Mr T. A. Wilmer

Mr R. Hall

Mr D. S. Fall

Mrs K BettMr Len F. Clark, BAMrs E. JacksonMr R. D. Foster

CHIEF EXECUTIVE OFFICER & SECRETARY

DEPUTY CHIEF EXECUTIVE OFFICER

FINANCIAL CONTROLLER

Mr T. Agar, FCIS, FCIB, CBIM, CSD

Mr K. W. Darwin, BA Hons.

Mr I. E. Extance, CSD

GENERAL HALF- YEARLY MEETINGS

Notice is hereby given that the General Half-Yearly Meetings will be held as follows:—

LINCOLN Silvergate House, (Top Floor), 32 Clasketgate, LincolnMonday 20th May 1991 at 7.00pm

GAINSBOROI:GH Salvation Army Hall, Beaumont Street, GainsboroughThursday 16th May 1991 at 7.00pm

NEWARK 23/25 Kirkgate, Newark

Wednesday 15th May 1991 at 7.00pm

Members must produce their Share Books to gain admittance to these Meetmgs.

AGENDA1. To confirm Minutes of Members' Annual General Meeting2. To receive the Directors' Half Yearly Report3. To consider the Recommendation of the Board of Directors

Member Relations Grant f17,0004 To declare results of Elections

(u) Sh Directors

(b) Two Delegates to CWS Meetings(c) Three members to the Member Relations Committee

Tocconsider the recommendation of the Board of Directors that a donation of fl ~to «Lmcoln Cathedral Fabric Fund under deduction of Income Tax

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I) IRECTORS' RI:POR I'

TO THE MFMBERS OI' THE SOCIETY

We are pleased to present your Directors' Report for the six month period to 2nd March 1991.

TURNOVERThe Group Turnover for the 26 week period amounted to f67,611,621, an increase of f7,002,718 or 11 6s/s

when compared with the previous year. During the period we have seen the National Economy moving

deeper into recession with an inevitable reducing effect on the level of consumer demand. It is therefore

pleasing to be able to report an increase in turnover of 11 6'/o, well in excess of the increase in Shop Retail

Prices which has averaged 7tfo during the period.

On a divisional basis —Food has achieved a very considerable increase in market share, indicating the success

of our Investment programme, —Non-Food has performed very well in difficult circumstances, achieving a

marginal volume increase, —Motor Trade, both in terms of vehicles and petrol sales, has been extremely

difficult but the Group has been able to hold volume sales.

I'INANCIAL

The total group surplus after depreciation and interest amounts to f4,376,336, an increase over the previous

year of fA87, 241 or 12.5tfo. The sum of f765,278 has been distributed as Member Benefits during the period

in the form of Dividend Stamps, Member Death Benefits, Travel Department Dividend Vouchers and

Member Benefits on new car purchases. The financial results achieved, after taxation, plus the surplus onsale of property would indicate a transfer to General Reserve of f2,391,676 giving a General Reserve off31,043,322.The Group amount of Realisable Investments, Deposits and Cash has decreased to a total of f12,561,085,following the large increase last year and the continuance of our capital expenditure and refurbishment

programme. Your Directors have continued a high level of capital expenditure during the recession to ensure

that the Group is well placed to take full advantage of the upturn in economic activity when it arrives.

PROPFRTV INVESTMENTOn 1st January 1991 the Cosim/Lincoln Corn Exchange and Market Company Ltd Group in which the

Society had a non-consolidated 75e/s ownership was re-organised, with the Society forming a new 100v/o

owned subsidiary company 'LINCOLN CORN EXCHANGE AND MARKET (1991) LIMITED*, which

acquired 75tfo of the net assets of the Cosim group.The Balance Sheet and Accounts of Lincoln Corn Exchange and Markets (1991) Ltd will be consolidated in

the Society's Group Accounts on an ongoing basis with the consolidation at the Society's year end

accounting date of September each year including Lincoln Corn Exchange and Markets (1991)Ltd as at the

30th June based on the Company's Management Accounts to that date, due to that company's year ending

accounting date being 31st December. During the current year, because of non-consolidation previously the

subsidiary investment will be revalued in Lincoln Co-operative Society Balance sheet with that surplus on the

revaluation being taken to the Lincoln Co-operative Society Reserve Funds.

The Society purchased in January 1991 a 50s/o equity interest in a newly formed company 'NEWCOOPPROPERTIES LTD' which owns the Birchwood Shopping Centre in Lincoln. On the basis of a 50Vo

ownership this acquisition will not be consolidated but will be treated as an Investment in the Lincoln Co-

operative Society accounts.In addition to the above property investment interests the Society has historically leased property not used in

trade to third parties. Members should note that in the current year there is a change in Accounting Policyin that Rents received are now being included in turnover and the profits from rented property are being

included in Trading Profits, this will apply to both rented Lincoln Co-operative Society property and to the

Lincoln Corn Exchange and Markets 1991 Ltd consolidation.

DEVELOPMENTS

Food Departments

The re-furbishment programme which began in earnest during the last financial year gathered pace during

the half-year under review. The Society's stores at Wragby and Ruskington were increased in size with

Woodhall Drive, Lincoln and North Hykeham also being re-modelled to our new format. In December acompletely new small convenience store was opened in Balderton, Newark reversing a historic trend of small

shop closures. All of these developments have been very successful and have assisted the Food Deparmentsin achieving a level of turnover increase considerably in excess of the rate of inflation. The programme will

cominue throughout the year on an accelerated basis.

PharmacySt. Catherines Pharmacy Lincoln has been extended and re-launched providing a much improved service toits immediate locality.

Gainsborough

The fust phase of the major development scheme in the centre of Gainsborough, which included the re

location of the former Crown Post Office within the Society's Departmental Store, opened at the end of the

haif-year and has given members in the Gainsborough area a foretaste of the quality of this scheme. Theinitial reaction has been excellent and it is anticipated that the major part of the scheme will be opened

during the course of the next six months.

MEMBERSHIPDuring the six month period 725 members have joined the Society, 406 have withdrawn membership giving atotal membership of 57,719.

DONATIONS

The following donations have been made on behalf of the members of the Society.

Lincolnshire Age ConcernFriends of Lincoln Hospitals AssociationLeague of Friends of John Coupland HospitalLeague of Friends of the Spalding HospitalsLeague of Friends of Newark Hospitals

f750f200f 50f 50f 50

EMPLOYEESThe Group employed a total 2016 persons both full and part-time as at 2nd March 1991.

The following long service employees have retired during the last six months and we extend to them our bestwishes for a long and happy retirement

Mr C. A. Jackson GroceryMr R. Dickinson DairyMr D. R. Nelson Motor GroupMr P. J. Smith DairyMr D. Kettlewell Motor GroupMr C. V. Thompson TransportMr C. Middleton DairyMr P. E. Scutt Dairy Controller

It is with regret that we report the death of the following employee

EmployeeMrs J. Worthington, Gainsborough

PensionersMrs M. Hill Mr S. CheavousMr L. Burchnall Mr A J PurkisMr A. Radford Mrs J. F. GregoryMr C. F. Francis Mr H. WaldenMr R. Bradley

44 years40 years32 years28 years26 years25 years24 years22 years

and penstoners

ACKNOWLEDGEMENTSGur thanks are extended to the Members of the Society for th«Staff who form a dedicated and enthusiastic professional team, and have cdifficult period their ability to ensure the continuance of the success««nd p

For and on behalf of the Directors

E. J. Reast, PresidentT. Agar, Chief Executive Officer

ELECTION OF SIX MEMBERS TO THE BOARD OF DIRECTORS

HOURS OF VOTING

LINCOLN

Co-operative House(Ground Floor)

Supa Co-op Sincil Street

Moorland Centre

Burton Road; Brant Road;Moorland Avenue; Ermine East;Lincoln Road, North Hykeham;Birchwood

Thursday 16th May 1991 10.00am to 5.00pmFriday 17th May 1991 10.00am to 5.00pmSaturday 18th May 1991 10.00am to 5.00pmMonday 20th May 1991 10.00am to 5.00 pm

Friday 17th May 1991 10.00am to 6.00pmSaturday 18th May 1991 10.00am to 5.00pm


Friday 17th May 1991Normal Store HoursSaturday 18th May 1991Normal Store Hours

COUNTRY BRANCHESMetheringham; Bardney;Market Rasen; Branston; BIBinghay;Nettleham; Heckington; Woodhall Spa;Ruskington; Welton; Horncastle;Holbeach; Galley Hill, Sleaford;Market Place, Sleaford; Spalding;Long Sutton


GAINSBOROUGHCo-operative House

District Meeting

Kirton Lindsey; Misterton;Morton; Queensway


Thursday 16th May 1991 7.00pm to close of Meeting


NEWARK

23/25 Kirkgate (Office Counter)

District Meeting

Victoria Street; Churchill Drive


Wednesday 15th May 1991 7.00pm to close of Meeting


WIB Members please note that Ballot Papers wiB only be issued on production of SHARE PASS BOOKS, whichmust show that the Member has not less than ONE POUND SHARE CAPITAL standing to his or her credit andhas been a member of the society FOR NOT LESS THAN SIX MONTHS.

For and on behalf of the Directors

T. AGAR, Chief Executive Officer and Secretary

ELECTION OF SIX MEMBERS TO THE BOARD OF DIRFCTORS

NAMEADDRESS

«BETT Kathleen593 Newark RoadLincoln

BU1TERY Roger7 BeckhallWeltonLincoln

' CLARK LeonardFrederick

22 AB Saints LaneNettlehamLincoln

' FOSTER, RonaldDavid

33 Cooper's HoltSkettingthorpeLincoln

* HALL Ralph4 Blyton RoadDoddington ParkLincoln

ROBERTSAnnElizabeth

79 Longdales RoadLincoln

I THOMAS RobertsAnn

6 Beverley GroveNorth HykehamLincoln

' WILMER TerrenceAnthony

'Cornerways'5 Tudor RoadDoddington ParkLincoln

AGE ATNOM.

62

OCCUPATION

Housewife

Accountant

58 Teacher

41 Motor GroupAccountant

63 Retired

53 Lincoln ControlRoom Operator

53

51 Public RelationsOfficer

Training ServicesManager

MEMBER OF SOCIETYCO-OPERATIVE EXPERIENCE

43 yearsFormer employee of Society. 33 years as counter cashier.Society Director 11 years. Society President 1983/4.Trustee —Employees' Superannuation Fund.

11 yearsCompleted project on Co-operative Movement as part ofProfessional qualification. Former member MansfieldCo-operative Society.

35 yearsFirst elected Society Director in 1964. Closely involved inthe democratic life of Lincoln Co-operative Society formore than 30 years. Firmly committed to the principlesof co-operation.24 yearsEmployee 25 years. Director 6 years —Former President.Holder of CertiTicate of Institute of Co-operativeDirectors. Member —Member Relations Commirtee.Trustee —Employees' Superannuation Fund. Member—Employees' Welfare Association Executive Committee.

46 yearsDirector 6 years —Employee 48 years until retirement.Member of Institute of Co-operative Directors.Member —Member Relations Committee. Attendedcourses for Directors at Co-operative College.

34 yearsFormer employee of Society. Member of Co-operativeWomen's Guild.

22 yearsMember Relations Secretary 3 years. Employee 7 pi yearswith reponsibiTity for managing staff training anddevelopment at all levels throughout the Society.

26 yearsDirector 9 years. Chairman —Member RelationsCommittee. Trustee —Employees' Superannuation Fund.Former employee of Society 1955-1976.

'Indicates Retiring Director /indicates Employee (only one eligible)

T%0 C.)V.S. MEETINGS REPRESENTATIVES

TAGGART Brenda 43Jean86 Rasen LaneLincoln

CountyCounci)lor

5 yearsC.W.S. Meeting Delegate 1989. Chairperson LincolnVoluntary Co-operative Party. Delegate to National Co-operative Party Conference 1988/9.

(NO ELECI1ON NECESSARY)

RELATIONS COMMITTEE (THREE VACANCIES)

Sales Assistant 40 yearsEmployee —17 years.

MEMBER' KERRIGAN Ahce 55

f 17 CambridgeDrive

High FarmWashingboroughLincoln

«TURNER DianaMargaret

IS Lincoln AvenueLincoln

53 Restauranthlanageress

11 yearsEmployee since 1974. Restaurant Manageress since 1983.

«indicates Retiring Member f)ndicates Employee (two ehgible)

(NO ELECTION NECESSARY)

LINCOLN CO OPERATIVE SOCIET'f trades as aretailer and provider of services throughout theaeographical area indicared.

tet I stilt t or l

K irion Undmy

WragbySaxilby Neitleham

CherryWillmghamAj'-i blttgoin ~

g ~ghellingthortm grcnsion ~

acebridge Heaih~Harsh Hykeham

Harncastle

tg Ninghay

Hechington

The Societyismutually owned bIKy

its members v ho live

inthe trading area. Afterproviding for all futureinvestment needs ot thebusiness, surplus is distributed to Customer'Members

. by means of Dividend Stamps, Member Death Benefits, TravelDividencl Vouchers and Member Benefits on new car purchases.

C. () II tCII fS

Page

Directors, Officials, Advisers

Details of Annual General Meetings

Directors' Report

Auditors' Report

Statement of Accounting Policies

Group Revenue Account

Group Balance Sheet

Group Source & Application of Funds

Notes to the Accounts

Group Value Added Statement

Historic Comparative Statements

Member Relations Report and Accounts

Analysis of Group Turnover

Standing Orders

4/11

12

13

14

15

16

1 7725

27

g 29

30

31

Lincoln Co-o erative Society Ltd

PRESIDENT Mr Len F. Clark BA

DIRECTORS Mr A. Middleton, JPMrs K. BettMr R. CharmanMr T. A. WilmerMrs E. JacksonMr R. HallMr R. D. FosterMrs E. J. ReastMr D. S. FallMrs A. E. Roberts

CHIEF EXECUTIVE OFFICER ANDSECRETARY

Mr T. Agar, FCIS, FCIB, CBIM, CSD

DEPUTY CHIEF EXECUTIVE OFFICER Mr K. W. Darwin, BA Hons.

FINANCIAL CONTROLLER Mr I. E. Extance, CSD

AUDITORS KPMG Peat MarwickThe Fountain Precinct1 Balm GreenSheffield Sl 3AF

BANKERS Co-operative Bank pic16 Saltergate, Lincoln LN2 1DG

SOLICITORS Andrew & Co.St. Swithin's Square, Lincoln LN2 1HB

REGISTERED OFFICE 13/14 Silver Street, Lincoln LN2 1JU

Annual ("eneral Mee~tin s

LINCOLN Silvergate House (top floor),32 Clasketgate, Lincolnon Monday 18th November 1991 at 7.00pm

GAINSBOROUGH Salvation Army HallBeaumont Street, Gainsboroughon Thursday 14th November 1991 at 7.00pm

NEWARK 23/25 Kirkgate, Newarkon Wednesday 13th November 1991 at 7.00pm

AGENDA 1. To confirm Minutes of Members' Half-YearlyGeneral Meeting.

2. To receive the Directors' Report, Auditors'Report and Annual Accounts.

3. To consider the recommendation of theBoard of Directors for a Member RelationsGrant of f17,000.

4. To receive the Member Relations CommitteeReport and Accounts.

5. To appoint a Returning Officer.

6. To Appoint Auditors.

7. To receive nominations (closing date 15th

November 1991).(a) Five Directors.(b) Two Delegates to C.W.S. Meetings.

(c) One member to the Member RelationsCommittee (1 year).

8. To consider the recommendation of theBoard of Directors that the followingdonations be made(a) Lincolnshire Branches of the Salvation

Army f1,000 under deduction of tax.(b) Listed Donations f550

Members must produce their Share Book to gain admittance to these meetings. Members can only vote

if they have held a minimum of f.l share capital for six months.

Directors' Re ort

TO THE MFMBFRS OF THE SOCIETYWe are pleased to present, for your consideration and approval, the Annual Balance Sheet andDirectors' Report for the year to 7th September 1991.

TURNOYFRThe Group Turnover for the year (53 weeks) amounted to 6142,770,566 an increase of f14,427,311 or 11 2%,when adjusted to a 52 week comparison the achieved increase amounts to fl I, '733,526 or 9 1%. During the year

we have seen the National Economy moving deeper into recession with an inevitable reducing effect on the level

of consumer demand. The impact of the recession has affected the levels of turnover achieved more heavily in the

second half of the trading year than in the first half and has impacted heavily on specific parts of our business.

The rate of inflation has reduced considerably during the year and the achieved turnover increase of 9 1% can be

considered satisfactory taking into account all circumstances.

On a divisional basis: —Food has again achieved a considerable increase in market share, indicating the success ofour continuing Investment programme. Non-Food trading has been extremely difficult during the year but in

general we have held last year's figures in real terms. The volume sale of vehicles in the Motor Trade division hasbeen reduced by the impact of the economic conditions and in general terms other divisions/departments have

traded well in the circumstances.

COSIM OF LINCOLN LTD RE-ORCANISATIONOn 1st January 1991 the Cosim/Lincoln Corn Exchange and Market Company Ltd Group in which the Societyhad a non-consolidated 75% ownership was re-organised, with the Society forming a new 100% owned subsidiarycompany 'LINCOLN CORN EXCHANGE AND MARKETS (1991)LIMITED', which acquired 75% of the netassets of the Cosim group.The Balance Sheet and Accounts of Lincoln Corn Exchange and Markets (1991)Ltd, are now consolidated in theSociety's Group Accounts; with the consolidation at the Society's year end accounting date of September eachyear including Lincoln Corn Exchange and Markets (1991)Ltd as at the 30th June, based on the Company'sManagement Accounts to that date, due to that company's year ending accounting date being 31st December.During the current year, because of non-consolidation previously the subsidiary investment has been revalued inthe Lincoln Co-operative Society Balance Sheet with that surplus on the revaluation being taken to the LincolnCo-operative Society Reserve Funds as detailed in note 19 to the accounts.

FINANCIAL RESULTSThe total Group surplus after depreciation and interest amounts to f9,397,159 an increase over the previous yearof tl, 287,226 or 15.9%.An amount of f1,772,397 has been distributed as Member Benefits during the period in the form of DividendStamps, Member Death Benefits, Travel Department Dividend Vouchers and Member Benefits on new carpurchases.The financial results achieved, plus the surplus on the sale of property (after taxation) has produced a transfer toGeneral Reserve of f5,110,446. In addition the revaluation of the Group Investment in Cosim Ltd prior to currentconsolidation has provided an increase in General Reserve of g4, 291,922, giving a total General Reserve off36,904,850 after charging Goodwill of f1,333,388 on acquisitions. In addition to the increase in General Res«vearising from the revaluation of the Group Investment in Cosim Ltd an amount of f7,541,634 has been credited toan Investment Property Revaluation Reserve and this Revaluation Reserve will be adjusted each year in the futureto reflect any changes in the current market value of the Investment properties held by the Groups PropertyInvestment Subsidiary.The Group amount of Realisable Investments, Deposits and Cash has decreased to a total of f9,302,856 foflowinga large increase last year and the continuance of our capital expenditure, expansion and refurbishmentprogramme. Your Directors have continued with a very high level of capital expenditure during the year to ensurethat the Group is well placed to take full advantage of the upturn in economic activity when it arrives.

PROPERT% INVESTMENTThe Society purchased in January 1991 a 50% equity interest in a newly formed company 'NEWCOOPpROpERTIES LTD' which owns the Birchwood Shopping Centre in Lincoln, On the basis of a 50% own«shipthis acquisition will not be consolidated but will be treated as an investment in the Lincoln Co-operative Soci«yaccounts.In addition to the above property investment interests the Society has historically leased property not used in tradeto third parties. Members should note that in the current year there is a change in Accounting policy in tha«enreceived are now included in turnover and the profits from rented property are included in Trading Profits-will apply to both rented Lincoln Co-operative Society property and to Lincoln Corn Exchange and Ma««s(1991)Ltd.

DEVELOPMENTSThe Society has continued its policy during the year of investing in new business opportunities, new

trading developments, new investment properties and in ensuring that existing operations are maintainedat a high standard.

MAJ()R l)EVEI.OPMENTS

Gainsborough —The Lindsey Centre

The opening by the President of the Society on 23rd July 1991 of the new 12,000 sq. ft. selling areaFood Hall marked the completion of a further stage in the development of the Lindsey Centre in theheart of the Town of Gainsborough.

f

The new Centre incorporates many of the designfeatures developed initially for the MoorlandCentre in Lincoln. This is the largestdevelopment ever undertaken by the Society andconsists of 4 principal components; DepartmentalStore, Food Hall, Unit Shops and Car Park.

Fronting onto the Market Place the Society'sDepartmental Store has been totally re-modelledwith the inclusion of an impressive glass lift. Thestore has been fitted to a very high standard andis already recording substantial increases in trade.

The newly constructed Food Hall which hasdramatically transformed both the Society'simage and penetration in the Market sets new

standards for the Town in quality range andservice, incorporating the latest in Laser Scanningtechnology at the checkouts.

The Society's close working relationship withWest Lindsey District Council resulted in the up-grading of the proposed ground floor car park toa near 500 space multi-storey development whichshould resolve for many years the parkingproblems in the Town.

The final Phase of the development, the completion of the front section of the 10 unit Shopping Mall

will be completed before Christmas 1991, although the installation of the impressive canopied entrance

will have to await the pedestrianisation of the Market Place in early 1992 as this stands in part on what

is at present the roadway.

FOOD DIVISION

In last year's Annual Report Directors indicated that new corporate identity treatments had been

adopted for the Society's food units. The rolling programme of re-furbishments has continued

throughout the year with the new format introduced in a further 3 supermarkets and 7 food stores.

Heckington

The Society's branch at Heckington hadremained largely unaltered since its constructionin the early 60's. The purchase of adjacent landenabled a car park for 30 cars to be constructedand an extension to the store to be provided, up-

rating this unit to supermarket status.

Ruskington

The newly, constructed supermarket opened in1987 at Ruskington proved to be so popular thata further substantial extension has beennecessary, opened in October 1990 this hasalready resulted in further substantial increases inturnover and will cope with further growth inthis large and expanding village.

3I~I

Wragby

The small village store at Wragby on the maincoast road presented substantial problems in

construction terms when an extension becamenecessary because of increasing trade. The salesarea has been successfully extended, however,without detracting from the character of thisprominent building.

Morton

The Major investment in the Gainsborough areaat the Lindsey Centre has not deflected theSociety from its commitment to smaller stores inthe area and the re-furbished unit at Mortonreflects this, with the prominent corner siteprojecting the new corporate identity tomaximum advantage.

Balderton

For the first time for many years the Society hasopened a new small store, trading under the 8 till8 format in Balderton, returning to an area fromwhich the Society withdrew some years ago,following the closure of the branch inheritedfrom the former Newark Society which was badlylocated and reflected a poor standard.

In addition to the stores illustrated re-furbishment has also been undertaken of the Society's stores in

Woodhall Drive Lincoln, Lincoln Road North Hykeham, Billinghay, Tealby Street, Lincoln, and

Bracebridge Heath, bringing to a total of 23 the number of stores converted to the new trading format.

The pace of development will continue into the next financial year with the completion of a sizeable

extension to the Market Rasen supermarket, the up-rating of the Birchwood store and re-furbishment ofa number of other supermarkets and food stores.

Re-development work is also at an advanced stage at the Society's Food Distribution Centre at

Doddington Road, Lincoln where the Meat Depot and Factory is being extended and extensively re-

furbished at significant cost to meet increasingly stringent legislative requirements. Much of the re-

furbishment work being undertaken in the Food Departments and indeed in the remainder of the

Society is under the control of the Society's own Works Department.

DAIRY DIVISION

During July 1991 the Society purchased the property and business of Newark Dairies Ltd which

consisted of a Dairy Depot and Milk Rounds, all of the Group Retail Milk business in Newark will now

be consolidated at that depot. Purchase has also been made of several small retail milk businesses in the

Lincoln area on the retirement of the owners of those businesses.

The continuing switch within the Dairy Markettowards cartons or plastic containers requiresconstant up-dating of the filling equipmentwithin what is one of the most modern Dairies inthe UK.

DEPARTMENTAL STORES

Xjl The re-launching of the Gainsborough Store hasbeen the most significant event in this Divisionduring the year. But the Society's principal non-food unit Co-operative House Lincoln has alsobenefited from further investment with theMenswear Department being completely re-fixtured and air conditioning units being installedon the Drapery Floor.

PHARMACY

St. Catherines Pharmacy~II

The expansion of this Department has continuedwith the acquisition of 2 further units at HighStreet and Newland Lincoln, the new corporateidentity will be applied to these units in the nearfuture. The St. Catherines Pharmacy has beenexended and completely re-fitted to a highstandard.

POST OFI'ICES

Lindsey Centre Post Office

The Society now operates 7 Sub-Post Officeswith two new units being acquired this financialyear. The incorporation into the Lindsey Centreof the former Crown Office at Gainsborough hasprovided a significant improvement in service tocustomers in the town. The laiesi acquisitionbeing the Wragby Road Post Office ivhich will brincorporated in the Society's planned re-development in that area.

PETROL

Sleaford

Further development work has taken place withinthe Petrol Station Group, with the Sleaford andSpalding Stations being re-built. For the firsttime for some years no new stations have beenacquired. This remains an area where the Societyis keen to fill the gap in the geographical spreadof our outlets. Increasing emphasis is beingplaced on the standard of our Forecourt shopsand wherever practicable these units are beingextended and a wider range of merchandiseintroduced.

MOTORS

Spalding Showroom

The Society's main Rover dealership at Spaldinghas been completely re-developed during theyear, the premises now matching the quality ofthe products which are being offered. This hasbeen a difficult year in the motor industry but itis clear that in a difficult market Rover productsare proving to be among the "winners".

10PROP FRTY INVESTMENT

Lincoln Corn Exchange and Markets (1991) Ltd has completed the first phase of the development of a

District Shopping Centre on Outer Circle Road/Wragby Road, Lincoln with the 35,000 square foot unit

occupied by a major national DIY chain. planning continues for the following phases of this major

development which will include a significant retail presence for the Society together with other leased

retail and community facilities. This wholly owned subsidiary continues to expand its property

portfolio.

Outer Circle Road/%ragby Road Site

The Group acquired a 50~is ownership of the Birchwood Shopping Centre through Newcoop propertiesLtd which has commenced a major refurbishment programme that will considerably improve theShopping Centre, including the Society's Food Store, with further extensions at the planning stage

rvI

Birch»ood Shopping Centre

MFMBF-RSHIPDuring the financial year 1,371 members have joined the Society, 831 have withdrawn membership and l.g03inactive Members' Accounts have been closed, giving a total membership as at 7th September 1991 oi' 56 13 .

DONATI()NSThe Board of Directors is recommending to the Members' Meetings that the following donations be made onbehalf of the Members of the Society.

(a) Lincolnshire branches of the Salvation Army g1,000under deduction of tax

(b) Friends of Lincoln Hospitals AssociationLeague of Friends of John Coupland Hospital (Gainsborough)League of Friends of the Spalding HospitalsLeague of Friends of Newark HospitalsSt John Ambulance BrigadeSt Dunstan'sNational Fund for Research into Crippling DiseasesMrs Ben Jones Guild Convalescent Fund

f200f50f50650f50f50f50f50

f550

During the current period a promotion was organised whereby our Member/Customers could contribute to thefunds of Oxfam and Save the Children Fund by depositing labels from Co-op products in the collecting boxesprovided in all stores. The result of that promotion was that the Society presented cheques for f2,500 to Oxfamand to Save the Children Fund on 31st August 1991 specifically to be used in areas of overseas disaster situations.

DIRFCTORSMrs A E Roberts was elected as a Director of the Society in May 1991.

CONVALESCENT FUNDThe Society contributes to the Midland Co-operative Convalescent Fund which exists to assist members ofsocieties needing convalescence by means of a grant towards provision of accommodation at Convalescent Homes.Details are available from the Secretary's Office.

Mr J. H. Elsey Grocery 22 yeal'5Mr D. S. Wells Grocery 22 yearsMrs P. Willerton Grocery 17 yearsMrs D. Shepherd Motor Group 15 years

EMPLOYEESThe Society pursues policies designed to promote equality of opportunities for all employees and to foster anddevelop their involvement and interest in the Group. Training is regarded as a fundamental requirement andappropriate programmes exist at all levels of employment.The Group employed a total of 2, 146 persons both full and part-time as at 7th September 1991.The following long service employees have retired during the last six months and we extend to them our bestwishes for a long and happy retirement:

Mr A. E. Moore GroceryMr L. A. Parsons DairyMrs D. M. Mayes PharmacyMr J. Coddington Dairy

It is with regret that we

EmployeeMr L. G. Stephens

PensionersMr H. WaldenMr M. JarvisMr A. E. GuyMr A. WarwickMr W. J. Collinson

report the death of the following employee and pensioners:

Boultham Park Dairy

Mr E. HarperMr W. HughesMr I. E. WailerMr W. Morris

ACKNO%'LEDGEMENTSOur thanks are extended to the Members of the Society for their continued support and to management and staffwho form a dedicated and enthusiastic professional team, and have clearly indicated during this difficult periodtheir ability to ensure the continuance of the successful and profitable expansion of the Group operations.

For and on behalf of the Directors L. F. Clark PresidentT. Agar, Chief Executive Officer and Secretary

During the financial year a total of fl, 672 has been distributed to very many local organisations fromthe value of dividend stamps contributed by customers through the charity collection boxes in SocietyStares.

Board CertificationThe accounts on pages 13 to 25 are hereby signedon behalf of the Directors pursuant to Section3(5)(C) of the Friendly Industrial and ProvidentSocieties Act 1968.

Len F. ClarkE. J. ReastT. Agar

DirectorDirectorSecretary

11th October 1991

Auditors' Re ort

To the Members of Lincoln Co-operativeSociety Ltd

We have audited the accounts set out on pages13 to 25 in accordance with Auditing Standards.In our opinion the accounts give a true and fairview of the state of affairs of the Group as at 7thSeptember 1991, the income and expenditure andsource and application of funds for the yearended on that date and comply with theIndustrial and Provident Society Acts 1965 to1978 and the Industrial and Provident Societies(Group Accounts) Regulations 1969.

KPMG PEAT MARWICK[iik 4 "4 ~ hrt dA t t

Registered AuditorShef field

11th October 1991

Statemeot ot' Aceoomio~polieies 13Accounting DateThe Accounts of the Society and its wholly-ownedsubsidiaries with the exception of Lincoln CornExchange & Markets (1991) Ltd. (31st December), aremade up the first Saturday in September. TheAccounts of the joint venture Company, NewcoopProperties Ltd, are made up to 30th June.

Basis of ConsolidationThe Group Accounts consolidate the Society andSubsidiaries as follows:—Lincoln Co-operative Society Ltd53 weeks to 7th September 1991Lincoln Co-operative Chemists Ltd53 weeks to 7th September 1991Lincoln Carlton Et Newark Dairies (1983) Ltd53 weeks to 7th September 1991Wrights Lincoln Ltd53 weeks to 7th September 1991RMW Wholesale Ltd did not tradeLincoln Corn Exchange & Markets (1991) Ltd6 months to 30th June (Based on ManagementAccounts).Cosim of Lincoln Ltd which was a non-consolidated75o/o subsidiary, was re-organised on 1st January 1991as described in Note 19.

accounting policy. Finance charges included in thelease payments are charged against profit when paidto the finance company. The outstanding commitmentis analysed between current (being payable within oneyear) and long term liabilities (being payable after oneyear).Rentals due under operating leases are charged to theRevenue Account in the year the cost accrues.The future commitment relating to operating leases isbased on the minimum amounts payable.

Assets Leased to CustomersAssets leased to customers under operating leases areincluded in the Balance Sheet as rental assets at costof acquisition less depreciation based on the Group'snormal accounting policy. Rental income from theseleases is credited to the Revenue Account on anaccruals basis over the period of the lease.

TaxationCurrent —Provision has been made for the estimatedliability based on the surplus for the year at thecurrent rate of corporation tax.Deferred —Provision has been made using the liabilitymethod for that element of deferred tax which islikely to be payable in the foreseeable future.

GoodwillPurchased goodwill is wriuen-off against reserves inthe period that the expenditure is incurred.Sales of goodwill are credited to reserves in the periodthe income is received.

Group TurnoverTurnover includes cash sales, goods sold on credit,Te(evision/Video remal income, Post Office income,Property Rental income, inclusive of Value AddedTax. Property rental income has previously beenexcluded from turnover and shown as a net amountadded to the trading surplus. Comparative figureshave been adjusted to reflect this change inaccounting treatment.

Tangible Fixed Assets and DepreciationWith the exception of Investment Properties, FixedAssets are stated at their acquisition cost and aredepreciated over their expected useful lives by equalinstalments based on the following minimum rates:—Freehold Land NilFreehold and Long Leasehold

Buildings 3o/o p.a.Fixtures & Fittings 15o/o p.a.Plant & Machinery 10-25o/o p.a.Televisions & Videos on Rental 25o/o p.a.Transport 20-25o/o p.a.Investment Properties are stated at valuation inaccordance with SSAP 19.

Assets Leased to the GroupAssets subject to finance leases are included in theBalance Sheet at cost value and depreciation ischarged based on the Group's normal

StocksRetail store stocks are valued at selling prices lessappropriate margins to reduce the value to cost or netrealisable value, whichever is the lower.

Other stocks are valued at cost or net realisable value,whichever is the lower.

RepairsRepair expenditure is charged against profits in theyear that the cost was incurred.

Dividend StampsThe charge to the Revenue Account is based on thenumber of stamps issued during the year at the costof redemption plus full redemption (f1.20 per 2400stamps) for unredeemed stamps.

The provision in the balance sheet is the outstandingliability on unredeemed stamps based on the full

redemption value for the last three years and 95o/o offull redemption value for earlier years. Based onanticipated redemption levels the liability has beendivided between the current liability for those stampswhich may be cashed within a year and the remainderwhich are likely to be cashed after one year.

Pension CostsThe assets of the Society Superannuation Fund areadministered by trustees and are kept separate fromthose of the Society. Independent actuaries preparevaluations of the fund at least every three years and inaccordance with their recommendations the Societymakes contributions which are charged to profits on asystematic and rational basis over the expectedremaining life of the employees.

Grou Revenue Account

Year Ended 7th September 1991

Notes

(53 Weeks)

1991f'000

(52 Weeks)

1990F000

Turnover

Less Value Added Tax

Sales

Less Cost of Sales

Gross ProfitExpenses

Trading Surplus

Interest Received 10

142,771

9,778

132,99399,244

33,749

25,647

8,102

1,556

9,658

128,343

8,469

119,874

90,191

29,683

22,441

7,242

1,081

8,323

Interest Payable 13 261 213

SURPLUS FOR THE YEARMember Benefits

Exceptional Items

Loss from Associated Co.5

10183

(14)

9,397

1,772

7,625

169

8, 110

1,502

6,608754

SURPLUS BEFORE DISTRIBUTION 7,794 7,362

Share Interest

Employees'/Pensioners' Bonus

Grants

Member Relations Grant

56431

734 528

54

3498

20 431

SURPLUS BEFORE TAX 7,266 6,931

TAXATION

Transfer to Revenue Reserve

The notes on pages 17 to 25 formpart of these acconnrs

17

2, 156

5,110

2,628

4,303

G~rou Balance Sheet

As at 7th September 1991

15

Notes 1991g'000

1990f.'000

FIXED ASSETSTangible Assets

Trading

Investment Properties

Investments

8 23,9139 14,042

10 4,672 42,627

42,627

18,634

5,626 24, 260

24, 260

CURRENT ASSETSStocksDebtors & Prepayments

Investments

Cash at Bank & In Hand

CURRENT LIABILITIESAmounts Falling Due Within

One Year

11

10

11,0695,124

5,985730

22,908

10,454

4,427

8,250

2,395

25,526

Creditors

Loans

NET CURRENT ASSETS

TOTAL ASSETS LESS CURRENT

LIABILITIES

12 15,67613 1,660

17,336

5,572

48.199

15,796

1,632

17,428

8,098

32,358

LONG TERM LIABILITIESAmounts Falling Due After More

Than One Year:—

Creditors

LoansDeferred Taxation

NET ASSETS

FINANCED BY:

SHARE CAPITAL

REVENUE RESERVE

INVESTMENT PROPERTYREVALUATION RESERVE

The notes on pages 17 to 25 formpan of these accounts

12

13

7

16

17

605

365714 1,684

46,515

2,068

36,905

7,542

46,515

507

369671 1,547

30,811

1,975

28,836

30,811

Source and A lication of Funds

In the Year Ended 7th September 1991

1991F000

1990f.'000

SOURCE OF FUNDS

Surplus Before Distribution

Book Value of Assets Sold

Adjustments for Items not

Involving the Movement of Funds

Depreciation

Member Benefits Issued

TOTAL GENERATED FROM OPERATIONS

Funds from other Sources

2,142

1,772

7,794

186

3,914

11,894

1,858

1,502

7,362123

3,360

10,845

Share Capital

Loan Capital

TOTAL GENERATED FUNDS

APPLICATION OF FUNDS

Member Benefits Paid

Distributions

Fixed Assets*

Lincoln Corn Exchange &Markets (1991)Ltd (See Note 19)

Investments

Goodwill'

Taxation Paid

9324

1,599528

7,632

116268

1,3332,002

117

12,011

13,478

49106

1,330431

3,559

474

llg1,644

155

11,000

7,556

Increase/(Decrease) in Working CapitalStocks*Debtors

Creditors

615490

550 1,655

94185

(1,937) (1,658)

Net (Outflow)/Inflow of Funds

Cash at Bank and In Hand

Short-Term Investments

(457)

(3,122)

953

(2,665) (3,122) 4, 149

(3,122)

5, 102

5, 102

5, 102

'Includes amounts detailed in Note 20

The notes on pages 17 to 25 formpart of these accounts

1991(53 Weeks)

g'000

1990(52 Weeks)

K'000

1. Turnover

Retail

Operating Leases

Rental Income

141.000

230

1,541

142,771

126,895

244

1,204

128,343

2. Expenses

Personnel Costs

Occupancy CostsHire of Plant-Operating Leases

Depreciation of Owned Assets

Depreciation of Assets Held

Under Finance Leases

Audit FeesDirectors' Fees

Other Expenses

15,815

3,36933

1,911

231

36

16

4,236

25,647

14,033

2,725

8

1,540

252

24

14

3,845

22,441

3. Employees

The Average Number Employedby the Group was:—

Full-Time

Part-Time

The Costs Incurred in Respectof These Employees were:—

Wages & Salaries

Social Security CostsOther Pension Costs

Number

1,218928

2, 146

14, 134

1,216465

15,815

Number

1,200822

2,022

OOOO

12,501

1,100432

14,033

1991(53 Weeks)

g'000

1990(52 Weeks)

Z'000

4. Member BenefitsDividend StampsTravel VouchersMotorist PacksDeath Benefit

1,411283

1959

1,772

1,169266

1453

1,502

5. Exceptional ItemsSurplus On Sale of PropertiesPrevious Over Provision no Longer Required

13251

183

70648

754

6. Grants and DonationsDonationsLong Service Awards

7. Taxation(a) Revenue Account

Current Taxation at 33.58% (1990 35%)Adjustment Previous PeriodDeferred TaxationDeferred Taxation Change of Tax Rate

(b) Balance SheetCreditors Note 12Corporation Tax Payable —7th October 1991

—1st June 1992

Deferred Taxation —Potential Liability(Provided in the Accounts)

Excess Capital AllowancesShort-Term Timing Differences

2,536(423)

48(5)

2,156

2,0332,482

4,515

756(42)

714

2,5036560

2,628

1,7502,654

722((((671

Deferred tax on chargeable gains rolled overhas not been provided in the accounts

8. Fixed Assets —Tangible(a) Trading

Original Cost at 1.9.90Additions & TransfersDisposals

Original Cost at 7.9.91

Depreciation at 1.9.90Provided This YearDisposals

Land &Buildings

f.'00019,1014,478

(69)

23,510

4,302585(12)

FixturesFittings& Plant

f '000

5,6242,320(431)

7,513

2,6381,003(415)

Transport

f.'000

2, 168759

(316)

2,611

1,382487

(203)

RentalAssets

f'00019836

(72)

162

13553

(72)

Total

f.'00027,0917,593

(888)

33,796

8,4572, 128

(702)

Depreciation at 7.9.91

Net Book Value 1991

Net Book Value 1990

Land & Buildings CompriseAt Cost

FreeholdLong Leasehold

DepreciationOn Cost

FreeholdLong Leasehold

4,875

18,635

14,799

3,226

4,287

2,986

1,666

945

786

1991f'000

20,8792,631

23,510

4, 177698

4,875

116 9,883

23,913

16,2222,879

19,101

3,637665

4,302

63 18,634

1990f '000

A valuation of Trading Properties was carried out by Peter Banks & Co. of 15 St Mary's Street,Lincoln as at 7th September 1991 which valued all the Group Trading Land and Buildings on acurrent use basis at f36,916,001 compared to a Balance sheet value at that date of KI8,635,000.This valuation has not been incorporated within the Balance Sheet.

(b) Leased Under Finance LeasesThe total net book value of assets of E23,913,000 (1990 Z18,634,000) includes f425,000 (1990f485,000) in respect of assets held under finance leases on which depreciation of f231,000 (1990f252,000) has been charged for the year.The minimum finance lease payments to which the group are commited in future years are:—Current Liabilities —Note 13 1991 1990

t'000 f'000168 195Payable Within One Year

Long Term Liabilities —Note 13Payable Within 2 to 5 years

After 5 years

Interest on Leases

Total Commitment

31627

343

17()

29862

187

742

8. Fixed Assets —Tangible —continued

(c) Leased Under Operating LeasesAt 7th September 1991 the Group had annual commitments under non-cancellable operating leases on

Land & Buildings expiring as follows.

Within One YearIn Two to Five YearsOver Five Years

These leases are subject to rent reviews. .

1991F000

Nil

1763

80

19906000

Nil

Nil

53

53

9. Fixed Assets —TangibleInvestment Properties

Land & BuildingsFreehold Leasehold Landlords Total

Fixturesf,'000 K'000 K'000 f.'000

Valuation at I/9/90Transfers In at Valuation (See Note 19)AdditionsRevaluation Movement

13,51539

475 27 14,01739

Valuation 7/9/91

Depreciation at 1/9/90Provided this period

13,554 475 27 14,056

14 14

Depreciation 7/9/91

Balance Sheet Value at 7/9/91 13,554 475

14 41

13 14,042

The investment properties were valued on 3rd December 1990 at I:13,990,001 by Peter Banks andCompany, Chartered Surveyors, 15 St. Mary's Street, Lincoln. Additions since that date have beenincluded at cost. External valuations are undertaken each December.

10. (a) Investments

Fixed Assets Current AssetsInterest

and Dividend

CWS Ltd —Shares—Loans

Other I & P Societies—Shares—Loans

NewcoopProperties Ltd (i)

Cosim of Lincoln LtdUn quotedCompanies Quoted (iii)British Government

Stocks (iii)Local Authorities

Quoted (iii)MortgagesShort-Term Deposits

1991g'000

2901,000

686

14

1,569

31,099

1990f'000

290

2,62314

1,569

31,116

1991f '000

5,385

1990f'000

5,250

3,000

1991f'000

20878

25

216

119295

1990X'000

20368

217

106368

4,672 5,626 5,985 8,250 1,556 1,081

(i) Associated Com an

Balance B/fwdAdditionsShare of Loss

1991 1990I'000 f '000

Nil Nil700 Nil

(14) Nil

686 Nil

(ii) Now included in Trading Profit(iii) Market Value Fixed Assets f.1,721,617 (1990 X1,635,714)

(b) Subsidiaries

The principal business activities of the wholly-owned subsidiaries are:i) Lincoln Corn Exchange and Markets (1991) Ltd Property Investment commenced trading

1st January 1991 (LCE 1991)ii) Lincoln Co-operative Chemist Ltd —Retail Chemist Shops (LCC)

iii) Lincoln Carlton & Newark Dairies (1983) Ltd —Milk Distribution (LCN 1983)iv) Wrights Lincoln Ltd —Retail Garages (Wrights)v) R.M.W. Wholesale Ltd —Non-Trading

10. Investments —continuedAccounts to 7th September 1991 (unless stated)

Share CapitalReserves

Represented by:—Fixed AssetsInvestmentsStockDebtorsDeposits & Bank

Less Creditors

LCE 199130/6/91

199l 1990f'000 f.'000

1 l,950143

12,093

14,0421,000

1741,437

16,6534,560

12,093

LCC

1991 1990f '000 2000

625 562380 270

1,005 8321,005 832

LCN 1983 Wrights

1991 1990 1991 19902000 K'000 f'000 2000

10 1010 10

20 20

25 32 2,062 2,37675 98 1,134 1,32441

141 130 3,196 3,700141 130 3,176 3,680

20 20

R.M.W. Wholesale has not traded and at 7th September 1991 had net assets of 149,222 represented

by an amount due from Wrights Lincoln Ltd.

11. Debtors

Credit SaleAccountsCo-op CardVAT

Prepayments

1991g'000

1,4892,655

504345

4,993131

5, 124

1990f'0001,3232,518

496

4,33790

4,427

Debtors Balances are included after making a provision of f313,043 (1990 f278,379) in respect ofbad and doubtful debts.

12. Creditors

Trade CreditorsHoliday PayVATAccrued ChargesOther Taxation & Social Security

Dividend StampsCorporation TaxMember Relations Fund

Falling DueWithin One Year1991 1990

g'000 f'000

7,960 8,347969 883

21

1,203 1,302414 306

10,546 10,859598 523

4,515 4,40417 10

Falling Due

After One Year1991 1990

f'0INI f.'000

507

15,676 15,796 605 507

13. Loans InterestRate

'Vo

(a) Savings Bank 3

(a) Ordinary Loans 3

(b) Development Bonds 10(e) Unit Loan Bonds 40'yo over 3 yrs

(a) Employees Thrift Fund 10(a) Stamp & Clubs(c) Superannuation Fund 12'lz

(d) Finance Leases 8-13Bank Variable

(f) Funeral BondsInterest On Tax Paid

Falling DueWithin One Year

1991 1990g'000 f'000

25 2594 93

122 116173 15355 46

117 110827 883168 195

79

Falling DueAfter One Year1991 1990

f '000 8000

22

343

Interest

Payable1991 1990

K'1)00 20001 I

3 313 1217 164 43 2

95 9955 42

346

16

1,660 1,632 365 369 261 213

Security

None

Notice

(a) On Demand

(b) 3 Months Notice NoneAfter 2 Years Fixed

(c) Six Months Notice Secured on Co-operative House, Lincoln

(d) Repayable By Instalments Charges Over Applicable Assets

Over 2 to 5 Years

(e) 3 years, but can be withdrawn on I month's notice with loss of current year's interest.

(f) Due on death of holder or at original cost with I month's notice.

14. Capital Commitments

Outstanding contracts for Capital Expenditure not provided in the accounts amounted toK1,087,000 (1990 Z2,445,000) and capital expenditure authorised by the Directors for which nocontracts have been placed at 7th September 1991 totalled f3,396,000 (1990 f4,456,000).

2415. Superannuation Fund

The Society operates a funded defined benefit superannuation fund for which the pension cost forthe group was f465,000 (1990 f432,000).The pension cost relating to the fund has been assessed in accordance with the advice ofprofessional actuaries based on a formal valuation carried out at 3rd September 1988. At that datethe market value of the fund assets was f9,016,004 of which f887,721 was invested in the Society.The fund was in surplus and the actuarial value of the assets was sufficient to cover 122'Vo of thebenefits accruing to the members after allowing for expected future increases in earnings. Avaluation as at 30th September 1991 is currently being prepared.As a result of the surplus improvements were effected to members and the Society has undertakenan obligation to make a special annual contribution of f126,000 each year until 1998.The pension charge has been assessed using the aggregate funding method of valuation with thefollowing principal assumptions:Assumed investment returns 9'Assumed salary increases

gizmo

16. Share Capital

Balance to BeginContributionsBonusInterest

Withdrawals

Balance to End

1991f '000

1,9754007956

2,510442

2,068

1990f.'000

1,926352

6354

2,395420

1,975

Shares are withdrawable on periods of notice from on demand to two months depending on theamount.

17. Revenue Reserve

Balance to BeginLess Goodwill written off (Note 20)

From Property SubsidiaryRe-organisation (Note 19)Revenue

Balance To End

1991f'00028,836(1,333)

27,503

4,2925, 110

36,905

1990f '000

24, 651(118)

24, 533

4,303

28,836

18. Investment Property Revaluation Reserve

Balance to BeginFrom Property SubsidiaryRe-organisation (Note 19)

Balance To End

7,542

7,542

19. Investment Revaluation

Following the re-organisation of the Cosim of Lincoln Group on 1st January 1991, as detailed in

the Directors' Report the Society acquired 100%a of the Share Capital of Lincoln Corn Exchange &Markets (1991)Ltd which had net assets of f11,950,000. The cost in the Society's books of itsshares in Cosim of Lincoln together with the expenses relating to the re-organisation amounted to6116,000.The assets and liabilities flowing from this investment are as detailed below:

Fixed Assets

InvestmentsDebtorsDepositBank OverdraftCreditorsLoan

Investment Property Revaluation ReserveRevenue Reserve

Re-organisation Expenses

800014,0171,400

207400

(1,208)(244)

(2,622)

11,950(7,542)(4,292)

116

20. During the period, the Group acquired the assets and goodwill of various businesses. The costsassociated are as follows:—

Fixed AssetsStockDebtorsCreditorsGoodwill

Total Consideration

f'000965

g5

1,333

2,383

1990f'000

192

118

310

All the net assets were at a fair value as agreed in the purchase contracts, and no further fair value

adjustment was necessary.

21. Contingent LiabilityNo provision has been made for Corporation tax on the capital gain estimated at f2,490,000 which

would arise if the Investment Properties were sold at the revalued amounts.

Grou Value Added Statement

19911"000

1990f.'000

TurnoverLess VAT

SalesLess Cost of Goods &

Services

Value Added

142,7719,778

132,993

106,817

26,176 100.0

128,3438,469

119,874

96,706

23, 168 100 0

Applied as Follows

To EmployeesGross PayGroup ContributionNational InsuranceSuperannuationEmployees Bonus

14,134 12,501

1,216 1,100465 432431 16,246 62 1 349 14,382 62 I

To Members and OtherProviders of Capital

Share InterestInterest on LoansRent

Less Investment Income andRents

56261117

434

(1,542) (1,108)

5421335

302

(4 2) (1,081) (779) (3 '4)

To Members and CustomersMember BenefitsMember RelationsGrants

1,77234

1,813

1,50220

8 1530 66

To Central GovernmentCorporation Tax 2,156 8 2 2,460 10.6

For Replacement of Assetsand Expansion of Group

Retained ProfitsDepreciation

4,9272, 142 7,069

26, 176

3,71727 0 1,858

100.0

5 575 24. 1

23, 168 10 '0

Historic Com arative Statement

Sept 1991 'Sept 199053 Weeks 52 Weeks

Sept 198952 Weeks

Sept 198852 Weeks

Sept 198752 Weeks

MEMBERSHIP 56,137 57,400 57,882 58,477 58,068

REVENUE ACCOUNT

F000 I'000 OOOO

Turnover 142,771 128,343 113,991 102,868 86,416

Depreciation 2, 142 1,858 1,981 1,852 1,637

Trading Surplus 8,102 7,242 5,041 4,745 3,847

Surplus for the Year 9,397 8, 110 6,383 5,868 5,030

Member Benefits 1,772 1,502 1,307 1,228 930

Trans. to Reserves 5,110 4,303 3,897 3,608 2,661

BALANCE SHEET

Fixed Assets 37,955 18,634 17,056 15,272 13,836

Investments 4,672 5,626 5, 152 5,825 8,286

Current Assets 22,908 25,526 20, 145 16,603 11,295

Current Liabilities 17,336 17,428 14,516 11,240 1!,447

Long Term Liabilities 1,684 1,547 1,260 2,927 2,007

Net Assets

Share Capital

Reserves

46,515 30,811

1,975

28,836

26,577

1,926

24,651

23,533

1,834

21,699

19,963

1,798

18,165

*Re-stated

'. Flember Relations ReI)ort

For Year Ended 7th September 1991

Mr T. Wilmer (Chairman)Mr R. D. FosterMrs D. Turner

To the MembersWe have pleasure in submitting the report of theMember Relations Committee for yourconsideration and approval for the year to 7thSeptember 1991.

FinancialThe actual expenditure for the year under reviewwas f24, 849 and after taking into account thegrant received of f27,000 plus the balancebrought forward, there was a balance to end ofK4, 527.

Co-operative Women's GuildYour Committee continues its commitment to,and support of, the local branches of the Co-operative Women's Guild in financial andpractical terms. During the year in addition tolocal, district and sectional meetings, there wasan opportunity in July to visit Anglian WatersRutland Reservoir, Nature Reserve and DroughtGarden in Leicestershire. In September anopportunity to combine the delights of shoppingin the twentieth century at the Society's newLindsey Centre, Gainsborough, was combinedwith a visit to experience the sounds (with the aidof a "Walkman" recording machine) and to viewthe household conditions of earlier times at thehistorical Gainsborough Old Hall.

Member EventsThe Competitions were all well supported. Manyand varied ideas were received on the topic of"Action for a Greener World" in this year' sCreative Writing Competition, sponsored inconjunction with the East Midlands Co-operativeEducation Committee. Christmas Hampers werewon and appreciated by lucky membersthroughout our trading area, Toy Voucherseagerly spent by those artistic winners of the"Design a Christmas Card" Competition andEaster Eggs were enjoyed by the winners of theEaster Egg Design competition, with designsbeing displayed in store for all to view.i he "Breakfast with Santa" morning had over100 young people taking part and enjoying theantics of the Pellat Puppets and "Uncle John"and his magic in the build up to the arrival ofSanta Claus at this magical time of year, whichwas appreciated by parents and children alike.A large number of members, customers andguests spent the evening dreaming of other climesat our Travel Promotion during the dark Januarydays. Our show "Spring into Fashion", heldduring a cold wet April, proved extremelypopular with some 950 people attending the

Mrs E. JacksonMr R. HallMrs A. Kerrigan

professional performance over three nights at theTheatre Royal in the company of the Civicdignitaries from North Hykeham and Newark-on-Trent on the Wednesday and Thursdayevenings.A Photographic evening held in the Drill Hall inOctober, with shutters clicking and lights flashingand lots of photo opportunities, was enormouslysuccessful in spite of the adverse weather on thenight. This was followed by an equally wellattended Perfumery and Hairdressing evening inthe build up to the Christmas Festivities.The New Members Evening proved as popularand interesting as ever with senior officials onhand to answer the many questions posed,followed by trade stands offering samples totempt all tastes.

Other ActivitiesThe Committee sponsored a luncheon for groupsof school children who had taken part in theCounty Council "Clean and Green" competitionduring National Environment week; havearranged entry into the Co-operative CommunityAwards Scheme for a worthwhile LandReclamation Project undertaken by the 4thSpalding Cub Scouts and liaised on variousenvironmental issues with a number of localschools. Liaison with other East MidlandsSociety Members and staff at Stanford HallCollege has enabled us to gain knowledge andinformation from the experience gained over theyears by Members Relations Staff from otherSocieties.

AcknowledgementsAll of the year's successful events could not havebeen organised without the co-operation of theBoard of Directors, Officials and Members andStaff of the Society, and the Member RelationsCommittee would like to take this opportunity tothank them for their support.

T. A. Wilmer, ChairmanB. R. Chapman, Secretary

For Year Ended 7th September 1991

1991

Funds to Begin 2,376 47

Income

Grant From Society 27,000

27,000

20,000

20,000

Expenditure

Personnel CostsRepairs

Guilds

Committee Fees

Subscriptions

Publicity

Travelling

Printing

Darby 4 Joan Club

Promotions

5,465143

2,920274

1,500

2,255

135141413

11,603

24,849

2,99185

3,334196

1,325

3,340215

56665

5,554

17,671

Net Increase 2,151 2,329

Funds to End 4,527 2,376

DebtorLincoln Co-operative Society Ltd 4,527

4,527

2,376

2,376

Auditors' Reportto the members of Lincoln Co-operative Society Limited.

We have audited the above Member Relations Account in accordance with Auditing Standards. In ouropinion the account shows a true and fair view of the movement of funds for the year ended7th September 1991 and the amount due from Lincoln Co-operative Society Limited as at that date.

KPMG PEAT MARWICKChartered AccountantsRegistered AuditorSheffield

11th October 1991

garou Turnover 1991

Food f62 2m

g Sratiooss fll'9m

Dairy f19.0m

Garages f20 gm

//

f 142.gill

1. The Order of business at every general or specialmeeting of the Society shall be in accordance with

the printed agenda of business issued with thenotice of the respective meeting.

2. Except in the case of a special general meetingcalled upon the requisition of members, theagenda of every meeting shall be made out in theform and order approved by the Directors andshall include only such business as is decidedupon by the Directors.

3. All notices of motion for consideration at anygeneral meeting must be first submitted to theDirectors in writing, signed by the member givingthe notice, not later than twenty one days prior tothe date of the first district meeting. Anyamendments to any proposal on the agenda atany general meeting must be received by theSociety at least seven days prior to the firstdistrict meeting.

4. No member shall be allowed to speak more thanonce on any motion except the mover ofresolutions, motions and amendments, who shallbe allowed a reply and no member shall speakafter the reply immediately after which thequestion shall be put from the chair.

5. No member shall be allowed to speak for morethan five minutes, except the mover, who mayspeak for ten minutes and take five minutes in

reply.

8. Any member choosing to speak upon anyquestion whatsoever must rise in his place andaddress himself to the chairman when two ormore members rise at the same time, thechairman shall indicate the member who is tospeak first.

9. Whenever the chairman rises to speak no membershall continue standing, nor shall any member riseuntil the chairman resumes his seat.

10. A member shall confine his speech strictly to themotion under discussion, or to the amendment orto a question of order.

11. The chairman may call attention to continuedirrelevance, tedious repetition, or any breach oforder on the part of a member and may directsuch member to discontinue his speech.

12. Any one or more of these standing orders may besuspended at any meeting by the vote of a two-

thirds majority of members present at themeeting. The decision of the chairman upon any

point of order shall be final.

13. All questions relating to the Balance Sheet andAccounts of which notice has been given to theSecretary at least seven days prior to the meeting

shall have preference.

14. Complaints by Members must be made in

accordance with General Rule 69.

6. The same agenda shall be put before the membersat the district and the central meetings. Where theagenda contains a motion and an amendment oramendments thereto voting shall take place as ifboth the motion and amendments weresubstantive motions and on consolidation of thevotes at all the meetings if both motion and anamendment or amendments are carried themotion or amendment which has the greaternumber of votes recorded in its favour shall bedeclared carried, and if the votes in favour areequal such one of those receiving such equal votesas had the largest majority shall be declaredcarried.

7. Any member who has not spoken to the questionbefore the meeting may at any time during thecourse of the debate move 'That the question benow put'. Such motion must be made without any

accompanying speech and must be forthwith putwithout amendment or debate, and should such

motion be adopted the chairman shall, subject tothe right of reply of the mover of the questionunder discussion, at once put the question.

PCPAfG Peat MarwickThe Fountain Precinct

1 Baiim Green

Sheffreld S1 3AF

Telephone (0742) 766788

Te)efax (0742) 766213 (Groups 2/3)

DX 10588 Sheffield

I Extance EsqFinancial ControllerLincoln Co-operative Society Limited13/14 Silver StreetLINCOLNLN2 1JU

Your I'efZE/NL

3P/LC. 2

6 December 1991

Dear Ian

Thank you for your letter of 27 November 1991. I return a signed copy of theSociety's accounts. As you say in your letter we will deal with thesubsidiary accounts once the annual returns are completed and signed.

Kind regards.

Your incerely

~JP dlPartner

Enc

n«dd««rd t«ddf««e dr sd« ~ ~H«««d«rea «r r««ard«dd«r«u«d dodd JPO « ~ d d« oI ««M

R N. W WHOLESALE LTD.

Reg. Office: 13/14 Silver Street,Lincoln LN2 1JU

PRESIDENT: Hr. Len. F. Clark BA

DIRECTORS: Mr. A. Middleton JP, Nrs. K. Bett, Mr. R. Charman,Mr. T. A. Wilmer, Mrs. K. Jackson, Mr. R. Hall, Mr. R. D. Foster,Nrs. E.J. Reast, Nr. D. S. Fall and Hrs. A. E. Roberts.

SECRETARY: Hr. T. Agar, F.C. I.S. , F.C.I.B. , C. B.I.H. , C. S.D.

REVENUE ACCOUNT YEAR ENDED 7TH SEPTEMBER 1991

1991 1990

Sales Nil Nil

Trading Surplus Nil Nil

Taxation Nil Nil

Nil N'1

BALANCE SHEET AS AT 7TH SEPTEMBER 19911991 1990

Ca ital Em lo edShare CapitalReserve

10049, 122

10049, 122

49, 222 49, 222

Use of Ca italAdvance to Wrights Lincoln 49, 222 49, 222

l 'tc~AE.J. Reast,T. Ng

49, 222


49, 222

Auditors' Re rtTo the Nembers of R H. W Wholesale Limited

We have audited the accounts set out above in accordance with AuditingStandards. In our opinion the accounts give a true and fair view of thestate of affairs of the Society as at 7th September 1991, the income andexpenditure for the year ended on that date and comply with the Industrialand Provident Society Acts 1965 to 1978.

KPNG- Peat MarwickChartered Accountants,Registered AuditorSheffield

11th October 1991

LINCOLN CO-OPERATIVE CHEMISTS LIMITED

PRESIDENT: Nr. Len. F. Clark BA


DIRECTORS. Mr. A. Middleton JP, Nrs. K. Bett, Mr. R. CharmanMr. T.A. Wilmer, Nrs. E. Jackson, Nr. R. Hall, Mr

Mrs. E.J. Reast, Nr. D. S. Fall. Mrs. A. E. RobertsMr. P. McCree B. Pharm. , MPS.

R. D. Foster,and

SECRETARY: Nr. T. Agar, F.C, I S. , F.C.I.B. . C. B.I.N. , C. S.D.


1991 1990

Sales 4, 978.215 4, 327, 936

Trading Surplus 278, 962 332, 614

Balance to Lincoln Co-operativeSociety Limited 278, 962 322, 614

BALANCE SHEET AS AT 7TH SEPTENBKR 19911991 1990

Ca ital Em lo edShare CapitalLincoln Co-operative

Society Limited

100

1,004, 575

100

831,546

Fi, 004, 675 f831,646

Use of Ca italInvestmentsStocksDebts

35624, 640380, 000

561,646270, 000

Ei, 004, 675 f831,646

N0TE: Charges for goods and services are incurred by LincolnCo-operative Society Ltd. , the parent Society who receiveall sales and debt payments.4~~ken. F . Clark, Director

E.J. R a t, at **t*t- AR R *t y

A a to 'R o t ~

To the Members of incoln Co-o ative Chemists Limited

We have audited the accounts set out above in accordance with AuditingStandards In our opinion the accounts give a true and fair view ofthe state of affairs of the Society as at 7th September 1991, the incomeand expenditure for the year ended on that date and comply with theIndustrial and Provident Society Acts 1965 to 1978.

EPHOR Peat MarwickChartered AccountantsRegistered AuditorSheffield

11th October 1991

WRIGHTS LINCOLN LTD.


PRESIDENT: Mr. Len. F. Clark BA

DIRECTORS: Mr. A. Middleton JP, Mrs. K. Bett, Mr. R. Charman,Mr. T. A. Wilmer, Mrs. E. Jackson, Mr. R. Hall. Mr. R. D. Foster.Mrs. E.J. Reast, Mr. D. S. Fall and Mrs. A. E. Roberts.

SECRETARY: Mr. T. Agar, F.C. I.S. , F.C. I.B. , C. B.I.M. , C. S.D.


1991 1990

Sales 29. 135,573 28, 766, 182

Trading SurplusInterest Received

199,890Nil

563, 56814, 734

Transferred to Lincoln Society

199,890

199.890

578.302

578, 302

Retained Profit B/fwd. 10,233 10,233

Balance C/fwd. 10,233 10,233

BALANCE SHEET AS AT 7TH SEPTEMBER 1991

1991 1990

Ca ital Km lo edShare CapitalReserve

10,00010,233

10,00010,233

5 20, 233 E 20, 233

Use of Ca italInvestmentsStockDebts

Nil2, 062, 3291.134.083

Nil2, 375, 8351,324. 020

Less: Inter Company Loans

Note: Charges for goods and servicesare incurred by Lincoln Co-operativeSociety Limited, the parent Societvwho receive all sales and debtpayments.

3.196,4123, 176, 179

20, 233

3, 699, 8553, 679, 622

20.233

E.J. Reast,'.gar,


ors' Re ortthe Nembers of @rights Lincoln Ltd.

ge have audited the accounts set out above in accordance with Auditi gStandards. In our opinion the accounts give a true and fairthe state of affairs of the Society as at 7th SePtember 1991, theincome and expenditure for the year ended on that datewith the Industrial and provident Society Acts 1965 to 1978.

KPMG Peat Marwx. ckChartered AccountantsRegistered AuditorSheffield

11th October 1991

LINCOLN CARLTON ANO NRLIARR OAIR18~819~83 LTll


PRESIDENT: Mr. Len. F. Clark BA

DIRECTORS: Mr. A. Middleton JP, Mrs. K. Bett, Mr. R. Charman,Mr. T. A. Wilmer. Mrs. E. Jackson, Mr. R. Hall, Mr RHrs. E.J. Reast, Mr. D. S. Fall and Mrs. A. E. Roberts

D. Foster,

SKCRETARYI Hr. T. Agar, F.C. I.S. , F.C.I.B. , C. B.I.H. , C.S.D.


1991 1990

Sales 3, 259, 630 3, 615, 739

Trading Surplus 14, 499 36, 996

Balance to Lincoln Co-operativeSociety Limited 5 14, 499 f. 36.996

BALANCE SHEET AS AT 7TH SEPTEMBER 1991

1991 1990

Ca ital Em lo edShare CapitalLoan Lincoln Co-operative Society Ltd.

100140, 710

100130.377

8140,810 f,130,477

Use of Ca italStocksDebtsCash and Bank

24, 97275, lOCI40, 738

31,83753, 70044, 940

Note: Charges for goods and servicesare incurred by Lincoln Co-operativeSociety Limited, the parent Society whoreceive all sales and debt payments.

f140,810 5130,477

I ACi~„4L~: E.J. Reast,


Auditors' Re tTo the Members of Lincoln Carlton and Newark Dairies (1983) Limited

We have audited the accounts set out above in accordance with AuditingStandards. In our opinion the accounts give a true and fair view ofthe state of affairs of the Society as at 7th September 1991, theincome and expenditure for the year ended on that date and complywith the Industrial and Provident Society Acts 1965 to 1978.

KPMG Peat MarwickChartered Accountants,Registered Auditor

&(P C-,

11th October 1991

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