IRIS Accounts Production v23.2.0.158 05435498 Board of Directors 31.12.22 1.1.22 31.12.22 31.12.22 being a franchised retailer of new and used motor vehicles. true true true false true true false false false false false false true false Ordinary 0 Ordinary A 0 iso4217:GBPiso4217:USDiso4217:EURxbrli:sharesxbrli:pure054354982021-12-31054354982022-12-31054354982022-01-012022-12-31054354982020-12-31054354982021-01-012021-12-31054354982021-12-3105435498ns16:EnglandWales2022-01-012022-12-3105435498ns15:PoundSterling2022-01-012022-12-3105435498ns11:Director12022-01-012022-12-3105435498ns11:Consolidated2022-12-3105435498ns11:ConsolidatedGroupCompanyAccounts2022-01-012022-12-3105435498ns11:PrivateLimitedCompanyLtd2022-01-012022-12-3105435498ns11:FRS102ns11:Consolidated2022-01-012022-12-3105435498ns11:Auditedns11:Consolidated2022-01-012022-12-3105435498ns11:SmallCompaniesRegimeForAccounts2022-01-012022-12-3105435498ns11:Consolidatedns11:LargeMedium-sizedCompaniesRegimeForDirectorsReport2022-01-012022-12-3105435498ns11:LargeMedium-sizedCompaniesRegimeForAccountsns11:Consolidated2022-01-012022-12-3105435498ns11:FullAccounts2022-01-012022-12-3105435498ns6:Subsidiary12022-01-012022-12-3105435498ns6:Subsidiary22022-01-012022-12-3105435498ns6:Subsidiary32022-01-012022-12-3105435498ns6:Subsidiary42022-01-012022-12-3105435498ns11:OrdinaryShareClass12022-01-012022-12-3105435498ns11:OrdinaryShareClass22022-01-012022-12-3105435498ns11:Consolidated2022-01-012022-12-3105435498ns11:Director22022-01-012022-12-3105435498ns11:Director32022-01-012022-12-3105435498ns11:CompanySecretary12022-01-012022-12-3105435498ns11:RegisteredOffice2022-01-012022-12-3105435498ns11:Consolidated2021-01-012021-12-3105435498ns6:CurrentFinancialInstruments2022-12-3105435498ns6:CurrentFinancialInstruments2021-12-3105435498ns6:Non-currentFinancialInstruments2022-12-3105435498ns6:Non-currentFinancialInstruments2021-12-3105435498ns6:ShareCapital2022-12-3105435498ns6:ShareCapital2021-12-3105435498ns6:FurtherSpecificReserve1ComponentTotalEquity2022-12-3105435498ns6:FurtherSpecificReserve1ComponentTotalEquity2021-12-3105435498ns6:RetainedEarningsAccumulatedLosses2022-12-3105435498ns6:RetainedEarningsAccumulatedLosses2021-12-3105435498ns6:ShareCapital2020-12-3105435498ns6:RetainedEarningsAccumulatedLosses2020-12-3105435498ns6:FurtherSpecificReserve1ComponentTotalEquity2020-12-3105435498ns6:RetainedEarningsAccumulatedLosses2021-01-012021-12-3105435498ns6:FurtherSpecificReserve1ComponentTotalEquity2021-01-012021-12-3105435498ns6:RetainedEarningsAccumulatedLosses2022-01-012022-12-3105435498ns6:FurtherSpecificReserve1ComponentTotalEquity2022-01-012022-12-3105435498ns6:LandBuildings2021-12-3105435498ns6:PlantMachinery2021-12-3105435498ns6:FurnitureFittings2021-12-3105435498ns6:ComputerEquipment2021-12-3105435498ns6:LandBuildings2022-01-012022-12-3105435498ns6:PlantMachinery2022-01-012022-12-3105435498ns6:FurnitureFittings2022-01-012022-12-3105435498ns6:ComputerEquipment2022-01-012022-12-3105435498ns6:LandBuildings2022-12-3105435498ns6:PlantMachinery2022-12-3105435498ns6:FurnitureFittings2022-12-3105435498ns6:ComputerEquipment2022-12-3105435498ns6:LandBuildings2021-12-3105435498ns6:PlantMachinery2021-12-3105435498ns6:FurnitureFittings2021-12-3105435498ns6:ComputerEquipment2021-12-3105435498ns6:CostValuation2021-12-31054354981ns6:Subsidiary12022-01-012022-12-3105435498ns6:Subsidiary12022-12-3105435498ns6:Subsidiary12021-12-3105435498ns6:Subsidiary12021-01-012021-12-3105435498ns6:Subsidiary232022-01-012022-12-3105435498ns6:Subsidiary22022-12-3105435498ns6:Subsidiary22021-12-3105435498ns6:Subsidiary22021-01-012021-12-31054354985ns6:Subsidiary32022-01-012022-12-3105435498ns6:Subsidiary32022-12-3105435498ns6:Subsidiary32021-12-3105435498ns6:Subsidiary32021-01-012021-12-31054354987ns6:Subsidiary42022-01-012022-12-3105435498ns6:Subsidiary42022-12-3105435498ns6:Subsidiary42021-12-3105435498ns6:Subsidiary42021-01-012021-12-3105435498ns6:WithinOneYearns6:CurrentFinancialInstruments2022-12-3105435498ns6:WithinOneYearns6:CurrentFinancialInstruments2021-12-3105435498ns6:BetweenTwoFiveYearsns6:Non-currentFinancialInstruments2022-12-3105435498ns6:BetweenTwoFiveYearsns6:Non-currentFinancialInstruments2021-12-3105435498ns6:WithinOneYear2022-12-3105435498ns6:WithinOneYear2021-12-3105435498ns6:BetweenOneFiveYears2022-12-3105435498ns6:BetweenOneFiveYears2021-12-3105435498ns6:AllPeriods2022-12-3105435498ns6:AllPeriods2021-12-3105435498ns6:Secured2022-12-3105435498ns6:Secured2021-12-3105435498ns6:DeferredTaxation2021-12-3105435498ns6:DeferredTaxation2022-01-012022-12-3105435498ns6:DeferredTaxation2022-12-3105435498ns11:OrdinaryShareClass12022-12-3105435498ns11:OrdinaryShareClass22022-12-3105435498ns6:RetainedEarningsAccumulatedLosses2021-12-3105435498ns6:FurtherSpecificReserve1ComponentTotalEquity2021-12-31
REGISTERED NUMBER: 05435498 (England and Wales)
























Group Strategic Report,

Report of the Directors and

Consolidated Financial Statements

for the Year Ended 31 December 2022

for

ESSEX MOTOR COMPANY LIMITED

ESSEX MOTOR COMPANY LIMITED (REGISTERED NUMBER: 05435498)






Contents of the Consolidated Financial Statements
for the year ended 31 December 2022




Page

Company Information 1

Group Strategic Report 2

Report of the Directors 5

Report of the Independent Auditors 7

Consolidated Income Statement 11

Consolidated Other Comprehensive Income 12

Consolidated Balance Sheet 13

Company Balance Sheet 15

Consolidated Statement of Changes in Equity 17

Company Statement of Changes in Equity 18

Consolidated Cash Flow Statement 19

Notes to the Consolidated Cash Flow Statement 20

Notes to the Consolidated Financial Statements 22


ESSEX MOTOR COMPANY LIMITED

Company Information
for the year ended 31 December 2022







DIRECTORS: Mr W G Cook
Mr D Lowe
Mr S N Ross



SECRETARY: Mr W G Cook



REGISTERED OFFICE: 54 Sun Street
Waltham Abbey
Essex
EN9 1EJ



REGISTERED NUMBER: 05435498 (England and Wales)



SENIOR STATUTORY AUDITOR: Mr Christopher James Whale ACA



AUDITORS: Trevor Jones & Partners Ltd
Statutory Auditor
Springfield House
99/101 Crossbrook Street
Cheshunt
Waltham Cross
Hertfordshire
EN8 8JR

ESSEX MOTOR COMPANY LIMITED (REGISTERED NUMBER: 05435498)

Group Strategic Report
for the year ended 31 December 2022

The directors present their strategic report of the company and the group for the year ended 31 December 2022.

REVIEW OF BUSINESS
During the year, the principal business activities of the group relate to the operation of full sales, service and parts main motor dealership franchises for Hyundai and MG Motor UK in addition to a dedicated used car sales operation.

Group turnover for the 2022 year was £47.5m, up from £37.5m in 2021. Post tax profit earned was £3,021,271 for 2022 up from £1,060,471 in 2021.Despite the significant turnover increase, core margins have been negatively impacted on both the demand side with tighter customer discretionary income to spend and on the supply side with increased vehicle material and labour costs feeding through to franchise purchase prices.

A substantial element in the overall increase in post tax profit has been the disposal of a trading site during the year in Romford, Essex for an accounting pre: tax profit on disposal of £2.574m.

The company directors have made cash flow preservation a key priority throughout their stewardship of the group. The company has declared dividends during the year of £3.95m to recognise the group's trading success - financed largely by the post tax property site gain during the year.

The full re-opening of showrooms across the group in 2022 has allowed turnover to grow significantly over this accounting year as latent demand for the group's range of vehicles and service provision has been served.

The group's cash flow position has been very strong with a very liquid balance sheet as at December 2022. Accelerated bank loan repayments have meant that only the CBILS government loan finance at December 2022 remains as the group's sole source of loan finance.

The economic back drop to the motor sector continues to be challenging, in particular, worldwide supply chain issues have been and still are a constant challenge in servicing customer demand. Political instability, both in the UK and abroad, are clearly unhelpful to longer term planning for the group.

That stated, the group directors are satisfied with the 2022 results and continue to focus on all areas of the business to strive to sustain and, hopefully, further improve the group's position going forwards.


ESSEX MOTOR COMPANY LIMITED (REGISTERED NUMBER: 05435498)

Group Strategic Report
for the year ended 31 December 2022

PRINCIPAL RISKS AND UNCERTAINTIES
The group's activities expose it to a range of risks and uncertainties. These are classified below:

Interest risk

The company has a bank loan in place to support trading working capital. The exposure to interest rate rises has been radically minimised by the advance clearance of outstanding bank loans. Total bank loans owed at 31st December 2022 were £350,000.

The group has a total focus on liquidity. In order that it is maintained to ensure that sufficient funds are available for ongoing operations and future developments, the group uses a mixture of retained profits, bank borrowings and trade credit from both suppliers and the manufacturers' finance companies..

Other risks

Profitability is influenced by the economic environment in which the group operates. Household incomes and consumer confidence levels have a clear impact on discretionary spending including vehicle and associated purchases. The level of fuel prices and taxation on vehicles also have a direct influence on the group's turnover.

Another pertinent risk is the withdrawal or curtailment of financing facilities or even failure to renew them as this could lead to a reduction in the ability of the group to successfully trade. The availability of these facilities is monitored very actively and the group continues to develop its relationships with both its bankers and motor manufacturers' finance providers.


ESSEX MOTOR COMPANY LIMITED (REGISTERED NUMBER: 05435498)

Group Strategic Report
for the year ended 31 December 2022

FINANCIAL KEY PERFORMANCE INDICATORS

The directors consider that the key financial performance indicators are those that communicate the financial performance and strength of the group as a whole, these being turnover, gross margin, profit before tax and return on capital employed.

The turnover of the business, by division, was as follows:

2022 2021
) )

Sales of new vehicles 28,501,120 19,523,955
Sales of used vehicles 16,558,989 15,080,523
Servicing and repairs 1,348,179 1,603,417
Sales of spare parts 1,116,042 1,253,918
47,524,330 37,461,813

The directors continue to investigate ways of further improving profitability and also of reducing the level of capital employed in the business, so as to further improve returns. However, with the above risks and uncertainties in mind, the directors are aware that any plans for the development of the business may be subject to unforeseen events outside of their control. The group,however, has a strong operating base and reputation and is confident of development despite this uncertainty.

ON BEHALF OF THE BOARD:





Mr D Lowe - Director


25 September 2023

ESSEX MOTOR COMPANY LIMITED (REGISTERED NUMBER: 05435498)

Report of the Directors
for the year ended 31 December 2022

The directors present their report with the financial statements of the company and the group for the year ended 31 December 2022.

DIVIDENDS
Interim dividends per share were paid as follows:
Ordinary £1 shares £27.39 - 22 December 2022
Ordinary A £1 shares £48.77 - 22 December 2022


The directors recommend that no final dividends be paid.

The total distribution of dividends for the year ended 31 December 2022 will be £ 3,950,000 .

FUTURE DEVELOPMENTS
The directors are confident that the company and the group will continue as a going concern. The directors consider that the company and the group are in a very solid financial position to maximise any opportunities throughout the coming year as the group seeks to consolidate its position in the market place.

As stated within the Strategic Report section, one subsidiary's trading operation has ceased in 2022 in Romford, Essex. The site of a further subsidiary undertaking in Chelmsford, Essex is currently being marketed for sale. The likelihood therefore is that this trading subsidiary operation (Essex Park Hyundai Limited) will cease to trade in 2023.

The group has enjoyed significant commercial success over the years with different motor manufacturers - most notably the Hyundai brand. The group will not be representing the Hyundai brand beyond 2023. The group does, however, have a franchise agreement with MG Motor UK and it is likely that there will be clear mutual benefit moving forwards of further association between the group and other manufacturers.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 January 2022 to the date of this report.

Mr W G Cook
Mr D Lowe
Mr S N Ross

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

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

- select suitable accounting policies and then apply them consistently;
- make judgements and accounting estimates that are reasonable and prudent;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.


ESSEX MOTOR COMPANY LIMITED (REGISTERED NUMBER: 05435498)

Report of the Directors
for the year ended 31 December 2022

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

ON BEHALF OF THE BOARD:





Mr D Lowe - Director


25 September 2023

Report of the Independent Auditors to the Members of
Essex Motor Company Limited

Opinion
We have audited the financial statements of Essex Motor Company Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2022 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
-give a true and fair view of the state of the group's and of the parent company affairs as at 31 December 2022 and of the group's profit for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

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

Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Emphasis of matter
For reasons set out in Note 2 to the 2022 financial statements of East London Hyundai Limited and Essex Park Hyundai Limited respectively, both group subsidiary undertakings, this company's financial statements for 2022 are not prepared on a going concern basis. However, our audit reports for those subsidiary undertakings and for the consolidated financial statements for Essex Motor Company Limited are not qualified.

Report of the Independent Auditors to the Members of
Essex Motor Company Limited


Other information
The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

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

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
- the parent company financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

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

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

Report of the Independent Auditors to the Members of
Essex Motor Company Limited


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

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

- the engaged partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognize non-compliance with applicable laws and regulations;
- we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the food service and supply sector;
- we focused on specific laws and regulations which we consider may have a direct material effect on the financial statements or the operations of the company, including relevant legislation such as Companies Act 2006, taxation legislation, data protection, anti-bribery, employment, environmental and health and safety legislation;

- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and

- identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might be occur, by:

- making enquires of management as to where they consider there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:

- performed analytical procedures to identify any unusual or unexpected relationships;
- tested journal entries to identify unusual transactions;
- assessed whether judgments and assumptions made in determining the accounting estimates set out in Note 2 were indicative of potential bias; and
- investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

- agreeing financial statement disclosures to underlying supporting documentation and
- enquiring of management as to actual and potential litigation and claims.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.


Report of the Independent Auditors to the Members of
Essex Motor Company Limited

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment of collusion.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

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




Mr Christopher James Whale ACA (Senior Statutory Auditor)
for and on behalf of Trevor Jones & Partners Ltd
Statutory Auditor
Springfield House
99/101 Crossbrook Street
Cheshunt
Waltham Cross
Hertfordshire
EN8 8JR

25 September 2023

ESSEX MOTOR COMPANY LIMITED (REGISTERED NUMBER: 05435498)

Consolidated Income Statement
for the year ended 31 December 2022

2022 2021
Notes £    £   

TURNOVER 47,524,330 37,461,813

Cost of sales 44,774,557 35,356,235
GROSS PROFIT 2,749,773 2,105,578

Administrative expenses (1,054,814 ) 1,184,797
3,804,587 920,781

Other operating income 3 12,611 436,805
OPERATING PROFIT 5 3,817,198 1,357,586


Interest payable and similar expenses 7 15,856 19,176
PROFIT BEFORE TAXATION 3,801,342 1,338,410

Tax on profit 8 780,071 277,939
PROFIT FOR THE FINANCIAL YEAR 3,021,271 1,060,471
Profit attributable to:
Owners of the parent 3,021,271 1,060,471

ESSEX MOTOR COMPANY LIMITED (REGISTERED NUMBER: 05435498)

Consolidated Other Comprehensive Income
for the year ended 31 December 2022

2022 2021
Notes £    £   

PROFIT FOR THE YEAR 3,021,271 1,060,471


OTHER COMPREHENSIVE INCOME

Income tax relating to other comprehensive
income

-

-
OTHER COMPREHENSIVE INCOME FOR
THE YEAR, NET OF INCOME TAX

-

-
TOTAL COMPREHENSIVE INCOME FOR
THE YEAR

3,021,271

1,060,471

Total comprehensive income attributable to:
Owners of the parent 3,021,271 1,060,471

ESSEX MOTOR COMPANY LIMITED (REGISTERED NUMBER: 05435498)

Consolidated Balance Sheet
31 December 2022

2022 2021
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 11 2,533,726 6,036,356
Investments 12 - -
2,533,726 6,036,356

CURRENT ASSETS
Stocks 13 5,153,912 3,816,940
Debtors 14 128,569 (67,320 )
Cash at bank and in hand 6,014,246 1,823,856
11,296,727 5,573,476
CREDITORS
Amounts falling due within one year 15 8,898,138 5,660,701
NET CURRENT ASSETS/(LIABILITIES) 2,398,589 (87,225 )
TOTAL ASSETS LESS CURRENT
LIABILITIES

4,932,315

5,949,131

CREDITORS
Amounts falling due after more than one year 16 (408,382 ) (512,478 )

PROVISIONS FOR LIABILITIES 20 (99,649 ) (83,640 )
NET ASSETS 4,424,284 5,353,013

ESSEX MOTOR COMPANY LIMITED (REGISTERED NUMBER: 05435498)

Consolidated Balance Sheet - continued
31 December 2022

2022 2021
Notes £    £    £    £   
CAPITAL AND RESERVES
Called up share capital 21 112,600 112,600
Own property revaluation
reserve (Non-distrib) 22 180,581 1,480,581
Retained earnings 22 4,131,103 3,759,832
SHAREHOLDERS' FUNDS 4,424,284 5,353,013


The financial statements were approved by the Board of Directors and authorised for issue on 25 September 2023 and were signed on its behalf by:




Mr D Lowe - Director



Mr W G Cook - Director


ESSEX MOTOR COMPANY LIMITED (REGISTERED NUMBER: 05435498)

Company Balance Sheet
31 December 2022

2022 2021
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 11 2,159,479 5,143,093
Investments 12 104 104
2,159,583 5,143,197

CURRENT ASSETS
Stocks 13 2,764,598 1,025,628
Debtors 14 86,220 333,649
Cash at bank and in hand 5,066,713 164,917
7,917,531 1,524,194
CREDITORS
Amounts falling due within one year 15 8,325,160 2,897,612
NET CURRENT LIABILITIES (407,629 ) (1,373,418 )
TOTAL ASSETS LESS CURRENT
LIABILITIES

1,751,954

3,769,779

CREDITORS
Amounts falling due after more than one year 16 (408,382 ) (512,478 )

PROVISIONS FOR LIABILITIES 20 (99,649 ) (83,640 )
NET ASSETS 1,243,923 3,173,661

CAPITAL AND RESERVES
Called up share capital 21 112,600 112,600
Own property revaluation
reserve (Non-distrib) 22 180,581 1,480,581
Retained earnings 22 950,742 1,580,480
SHAREHOLDERS' FUNDS 1,243,923 3,173,661

Company's profit for the financial year 2,020,262 159,343

ESSEX MOTOR COMPANY LIMITED (REGISTERED NUMBER: 05435498)

Company Balance Sheet - continued
31 December 2022


The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the Board of Directors and authorised for issue on 25 September 2023 and were signed on its behalf by:





Mr D Lowe - Director


ESSEX MOTOR COMPANY LIMITED (REGISTERED NUMBER: 05435498)

Consolidated Statement of Changes in Equity
for the year ended 31 December 2022

Own
property
Called up revaluation
share Retained reserve Total
capital earnings (Non-distrib) equity
£    £    £    £   

Balance at 1 January 2021 112,600 2,664,863 1,515,079 4,292,542

Changes in equity
Total comprehensive income - 1,094,969 (34,498 ) 1,060,471
Balance at 31 December 2021 112,600 3,759,832 1,480,581 5,353,013

Changes in equity
Dividends - (3,950,000 ) - (3,950,000 )
Total comprehensive income - 4,321,271 (1,300,000 ) 3,021,271
Balance at 31 December 2022 112,600 4,131,103 180,581 4,424,284

ESSEX MOTOR COMPANY LIMITED (REGISTERED NUMBER: 05435498)

Company Statement of Changes in Equity
for the year ended 31 December 2022

Own
property
Called up revaluation
share Retained reserve Total
capital earnings (Non-distrib) equity
£    £    £    £   

Balance at 1 January 2021 112,600 1,386,639 1,515,079 3,014,318

Changes in equity
Total comprehensive income - 193,841 (34,498 ) 159,343
Balance at 31 December 2021 112,600 1,580,480 1,480,581 3,173,661

Changes in equity
Dividends - (3,950,000 ) - (3,950,000 )
Total comprehensive income - 3,320,262 (1,300,000 ) 2,020,262
Balance at 31 December 2022 112,600 950,742 180,581 1,243,923

ESSEX MOTOR COMPANY LIMITED (REGISTERED NUMBER: 05435498)

Consolidated Cash Flow Statement
for the year ended 31 December 2022

2022 2021
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 1,098,226 450,143
Interest paid (15,856 ) (19,176 )
Tax paid (271,013 ) (73,786 )
Net cash from operating activities 811,357 357,181

Cash flows from investing activities
Purchase of tangible fixed assets (24,305 ) (51,453 )
Sale of tangible fixed assets 6,003,338 -
Net cash from investing activities 5,979,033 (51,453 )

Cash flows from financing activities
Loan repayments in year (100,000 ) (279,870 )
Amount introduced by directors 1,550,000 100,000
Amount withdrawn by directors (100,000 ) -
Government grant - 402,349
Equity dividends paid (3,950,000 ) -
Net cash from financing activities (2,600,000 ) 222,479

Increase in cash and cash equivalents 4,190,390 528,207
Cash and cash equivalents at beginning of year 2 1,823,856 1,295,649

Cash and cash equivalents at end of year 2 6,014,246 1,823,856

ESSEX MOTOR COMPANY LIMITED (REGISTERED NUMBER: 05435498)

Notes to the Consolidated Cash Flow Statement
for the year ended 31 December 2022

1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS
2022 2021
£    £   
Profit before taxation 3,801,342 1,338,410
Depreciation charges 98,520 165,205
Profit on disposal of fixed assets (2,574,923 ) -
Government grants - (402,349 )
Finance costs 15,856 19,176
1,340,795 1,120,442
(Increase)/decrease in stocks (1,336,972 ) 2,031,821
(Increase)/decrease in trade and other debtors (195,889 ) 181,560
Increase/(decrease) in trade and other creditors 1,290,292 (2,883,680 )
Cash generated from operations 1,098,226 450,143

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 December 2022
31.12.22 1.1.22
£    £   
Cash and cash equivalents 6,014,246 1,823,856
Year ended 31 December 2021
31.12.21 1.1.21
£    £   
Cash and cash equivalents 1,823,856 1,295,649


ESSEX MOTOR COMPANY LIMITED (REGISTERED NUMBER: 05435498)

Notes to the Consolidated Cash Flow Statement
for the year ended 31 December 2022

3. ANALYSIS OF CHANGES IN NET FUNDS

At 1.1.22 Cash flow At 31.12.22
£    £    £   
Net cash
Cash at bank and in hand 1,823,856 4,190,390 6,014,246
1,823,856 4,190,390 6,014,246
Debt
Debts falling due within 1 year (100,000 ) - (100,000 )
Debts falling due after 1 year (350,000 ) 100,000 (250,000 )
(450,000 ) 100,000 (350,000 )
Total 1,373,856 4,290,390 5,664,246

ESSEX MOTOR COMPANY LIMITED (REGISTERED NUMBER: 05435498)

Notes to the Consolidated Financial Statements
for the year ended 31 December 2022

1. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

The financial statements are presented in sterling (£) which is also the functional currency for the company and rounded to the nearest £.

Turnover
Turnover is measured at the fair value of the consideration received or receivable,excluding value added tax, of sales of vehicles and parts together with amounts invoiced to customers for servicing and for the rental of vehicles. It includes commission receivable on arranging finance for customer purchases.

Turnover also includes income received from bonuses and incentives, which are recognised in the profit and loss account on a straight line basis over the period to which they relate.

Turnover from the sale of vehicles is recognised when the significant risks and rewards of ownership of the vehicle has transferred to the buyer. This is usually at the point that the customer has signed for the delivery of the vehicle.

Turnover is attributable to the principal activity of the company and is UK based.

Investments in subsidiaries
Investments in subsidiary undertakings are recognised at cost.

Tangible fixed assets
Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, as follows:

Land and buildings - Freehold 2% on cost.

Plant and machinery etc - at varying rates on cost

At each reporting date, property, plant and equipment are reviewed to determined whether there is any indication that those assets have suffered an impairment loss. If there is an indication of possible impairment, the recoverable amount of any affected asset is estimated and compared with its carrying amount. If the estimated recoverable amount is lower, the carrying amount is reduced to its estimated recoverable amount, and an impairment loss is recognised immediately in the profit and loss account.

ESSEX MOTOR COMPANY LIMITED (REGISTERED NUMBER: 05435498)

Notes to the Consolidated Financial Statements - continued
for the year ended 31 December 2022

1. ACCOUNTING POLICIES - continued

Taxation
Current tax represents the amount of tax payable or receivable in respect of the taxable profit (or loss) for the current or past reporting periods. It is measured at the amount expected to be paid or recovered using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax represents the future tax consequences of transactions and events recognised in the financial statements of current and previous periods. It is recognised in respect of all timing differences, with certain exceptions. Timing differences are differences between taxable profits and total comprehensive income as stated in the financial statements that arise from the inclusion of income and expense in tax assessments in periods different from those in which they are recognised in the financial statements. Unrelieved tax losses and other 'deferred tax' assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date that are expected to apply to the reversal of timing differences. Deferred tax on revalued, non-depreciable tangible fixed assets and investment properties is measured using the rates and allowances that apply to the sale of the asset.

Stocks
Stocks are stated at the lower of cost and net realisable value.

Cost incurred in bringing each product to its present location and condition is based on

Parts Purchase cost on a first-in, first our basis
New vehicles (owned) Original purchase cost
New vehicles (consignment) Current manufacturer purchase price
Demonstration vehicles Original cost adjusted to reflect changes in residual value
Used vehicles The price paid or trade-in allowance granted

Net realisable value is based upon selling price less an estimate for discounts and selling expenses to be incurred to disposal.

The directors consider that consignment stocks of certain new vehicles held by the group on behalf of the Hyundai Motor Company, Suzuki and MG Motor UK (as relevant for 2022 and 2021) meet the criteria of Financial Reporting Standard 102 to be recognised as assets. Accordingly, such new vehicles are shown as stock in the financial statements with a corresponding liability shown within creditors falling due within one year.

Loans and borrowings
Loans and borrowings are initially recognised at the transaction price including transaction costs. Subsequently, they are measured at amortised cost using the effective interest rate method, less impairment. If an arrangement constitutes a finance transaction, it is measured at present value.

Hire purchase and leasing commitments
Rental under operating leases are charged on a straight-line basis over the lease term, even if the payments are not made on such a basis. Benefits received and receivable as an incentive to sign an operating lease are similarly spread on a straight-line basis. Benefits received and receivable as an incentive to sign an operating lease are similarly spread on a straight-line basis over the lease term.

ESSEX MOTOR COMPANY LIMITED (REGISTERED NUMBER: 05435498)

Notes to the Consolidated Financial Statements - continued
for the year ended 31 December 2022

1. ACCOUNTING POLICIES - continued

Trade and other receivables
Trade and other receivables are measured at transaction price less any impairment unless the arrangement constitutes a financing transaction in which case the transaction is measured at the present value of the future receipts discounted at the prevailing market rate of interest.

Trade and Other Payables
Trade and other payables are measured at their transaction price unless the arrangement constitutes a financing transaction in which case the transaction is measured at present value of future payments discounted at prevailing market rate of interest. Other financial liabilities are initially measured at fair value net of their transaction costs. They are subsequently measured at amortised cost using the effective interest method. Amounts owed to group undertakings are deemed to be short term trading balances.

Cash and cash equivalents
Cash and cash equivalents in the balance sheet comprise cash at banks and in hand and any short term deposits.

Employee benefits
When employees have rendered service to the company, short-term employees benefits to which the employee are entitled are recognised at the undiscounted amount expected to be paid in exchange for that service.

The company operates a defined contribution plan for the benefit of its employees. Contributions are expensed as they become payable.

Manufacturer funding support
Funds receivable are recognised in the profit and loss account so as to match them with the expenditure towards which they are intended to contribute. To the extent that funding is made as a contribution towards expenditure on a fixed asset, a proportion of the receipt is released to the profit and loss account to match the annual depreciation charge of the corresponding fixed asset with the balance disclosed as a deferred liability on the balance sheet.

Potential liabilities to repay funds either in whole or in part in specified circumstances shall be provided for only to the extent that repayment is probable. Income is only released when all of the conditions imposed by the donor in respect of any funding support have been satisfied.

ESSEX MOTOR COMPANY LIMITED (REGISTERED NUMBER: 05435498)

Notes to the Consolidated Financial Statements - continued
for the year ended 31 December 2022

2. CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

Key Judgements and assumptions

In the application of the company's accounting policies, the company directors are required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from those estimates.

The estimates and underlying assumptions are reviewed on an on-going basis. Revisions to accounting estimates are recognised in the period in which the estimates revised if the revision affects only that period or in the period of the revision and future periods if the revision affects the current and future periods.

Critical Judgements

1) Useful economic lives

The annual depreciation charge for property, plant and equipment is sensitive to changes in the estimated useful economic lives and residual values of assets. The useful economic lives and residual values are assessed annually. They are amended when necessary to reflect current estimates based on technological advancement, future investments, economic utilization and the physical condition of the assets.

2) Going concern

The impact of Covid 19 on the UK economy and, in particular, on the Motor Industry sector in 2022 has been profound.

The group directors, however, have taken swift, robust and decisive action to mitigate the threats from the pandemic to the business. To the extent that they have been able to positively influence controllable factors, they have done so. The group has forecast various post year end sales scenarios and considered the cash flow impact therefrom.

The group has ensured that all existing forms of finance, including trade creditors, are paid within agreed terms and will be so going forwards. There are no banking or other covenants not being complied with.

As a result of the above measures and key judgements made, the group directors are confident that the group continues to be a going concern.

3. OTHER OPERATING INCOME
2022 2021
£    £   
Other Income 12,611 34,456
Government grants - 402,349
12,611 436,805

During the year, the group received £NIL (2021: £402,349) in government grants under the Job Retention Scheme and other support grants.

ESSEX MOTOR COMPANY LIMITED (REGISTERED NUMBER: 05435498)

Notes to the Consolidated Financial Statements - continued
for the year ended 31 December 2022

4. EMPLOYEES AND DIRECTORS
2022 2021
£    £   
Wages and salaries 1,773,921 1,852,325
Social security costs 196,314 185,029
Other pension costs 34,410 35,023
2,004,645 2,072,377

The average number of employees during the year was as follows:
2022 2021

Workshop/service 26 35
Sales 24 29
Administration (including directors) 10 10
60 74

The average number of employees by undertakings that were proportionately consolidated during the year was 60 (2021 - 74 ) .

2022 2021
£    £   
Directors' remuneration 154,660 160,973

5. OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2022 2021
£    £   
Hire of plant and machinery 13,566 15,569
Other operating leases 205,460 205,629
Depreciation - owned assets 98,520 165,198
Profit on disposal of fixed assets (2,574,923 ) -

6. AUDITORS' REMUNERATION
2022 2021
£    £   
Fees payable to the company's auditors for the audit of the company's financial
statements

13,750

11,750

ESSEX MOTOR COMPANY LIMITED (REGISTERED NUMBER: 05435498)

Notes to the Consolidated Financial Statements - continued
for the year ended 31 December 2022

7. INTEREST PAYABLE AND SIMILAR EXPENSES
2022 2021
£    £   
Bank loan interest 15,856 19,176

8. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2022 2021
£    £   
Current tax:
UK corporation tax 764,062 271,013
No description - 1,011
Total current tax 764,062 272,024

Deferred tax 16,009 5,915
Tax on profit 780,071 277,939

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

2022 2021
£    £   
Profit before tax 3,801,342 1,338,410
Profit multiplied by the standard rate of corporation tax in the UK of 19 % (2021 -
19 %)

722,255

254,298

Effects of:
Expenses not deductible for tax purposes 5,029 256
Capital allowances in excess of depreciation (500,970 ) -
Depreciation in excess of capital allowances - 16,459
Capital gain 537,748 -
Deferred tax 16,009 5,915
Prior year overprovision - 1,011
Total tax charge 780,071 277,939

Tax effects relating to effects of other comprehensive income


ESSEX MOTOR COMPANY LIMITED (REGISTERED NUMBER: 05435498)

Notes to the Consolidated Financial Statements - continued
for the year ended 31 December 2022

8. TAXATION - continued
2021
Gross Tax Net
£    £    £   
Deferred taxation on property
revaluation reserve
- - -

9. INDIVIDUAL INCOME STATEMENT

As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements.


10. DIVIDENDS
2022 2021
£    £   
Ordinary shares of £1 each
Interim 1,975,000 -
Ordinary A shares of £1 each
Interim 1,975,000 -
3,950,000 -

ESSEX MOTOR COMPANY LIMITED (REGISTERED NUMBER: 05435498)

Notes to the Consolidated Financial Statements - continued
for the year ended 31 December 2022

11. TANGIBLE FIXED ASSETS

Group
Freehold Short Plant and
property leasehold machinery
£    £    £   
COST OR VALUATION
At 1 January 2022 5,834,871 1,207,662 360,541
Additions 8,991 7,660 6,933
Disposals (3,312,500 ) (599,395 ) (5,131 )
At 31 December 2022 2,531,362 615,927 362,343
DEPRECIATION
At 1 January 2022 695,396 334,281 343,876
Charge for year 46,655 37,752 11,345
Eliminated on disposal (364,200 ) (122,618 ) (1,793 )
At 31 December 2022 377,851 249,415 353,428
NET BOOK VALUE
At 31 December 2022 2,153,511 366,512 8,915
At 31 December 2021 5,139,475 873,381 16,665

Fixtures
and Computer
fittings equipment Totals
£    £    £   
COST OR VALUATION
At 1 January 2022 126,669 195,276 7,725,019
Additions - 721 24,305
Disposals - (20,525 ) (3,937,551 )
At 31 December 2022 126,669 175,472 3,811,773
DEPRECIATION
At 1 January 2022 120,745 194,365 1,688,663
Charge for year 1,968 800 98,520
Eliminated on disposal - (20,525 ) (509,136 )
At 31 December 2022 122,713 174,640 1,278,047
NET BOOK VALUE
At 31 December 2022 3,956 832 2,533,726
At 31 December 2021 5,924 911 6,036,356

ESSEX MOTOR COMPANY LIMITED (REGISTERED NUMBER: 05435498)

Notes to the Consolidated Financial Statements - continued
for the year ended 31 December 2022

11. TANGIBLE FIXED ASSETS - continued

Group

Included in cost or valuation of land and buildings is freehold land of £232,500 (2021 - £510,000) which is not depreciated.

A freehold property acquired for trading purposes by the company has been previously externally valued. The property was revalued on an open market value basis: by GH Chartered Surveyors RICS on 24 March 2013 for £1.1m.

Cost or valuation at 31 December 2022 is represented by:

Freehold Short Plant and
property leasehold machinery
£    £    £   
Valuation in 2012 195,681 - -
Cost 2,335,681 615,927 362,343
2,531,362 615,927 362,343

Fixtures
and Computer
fittings equipment Totals
£    £    £   
Valuation in 2012 - - 195,681
Cost 126,669 175,472 3,616,092
126,669 175,472 3,811,773

If freehold land and buildings had not been revalued they would have been included at the following historical cost:

2022 2021
£    £   
Cost 2,335,681 4,258,281
Aggregate depreciation 354,062 509,815

Value of land in freehold land and buildings 232,500 510,000

ESSEX MOTOR COMPANY LIMITED (REGISTERED NUMBER: 05435498)

Notes to the Consolidated Financial Statements - continued
for the year ended 31 December 2022

11. TANGIBLE FIXED ASSETS - continued

Company
Fixtures
Freehold Plant and and Computer
property machinery fittings equipment Totals
£    £    £    £    £   
COST OR VALUATION
At 1 January 2022 5,834,871 61,624 29,289 135,931 6,061,715
Additions 8,991 - - - 8,991
Disposals (3,911,895 ) - - - (3,911,895 )
Reclassification/transfer 599,395 105,909 10,682 - 715,986
At 31 December 2022 2,531,362 167,533 39,971 135,931 2,874,797
DEPRECIATION
At 1 January 2022 695,396 59,191 28,863 135,172 918,622
Charge for year 46,655 1,657 426 635 49,373
Eliminated on disposal (486,818 ) - - - (486,818 )
Reclassification/transfer 122,618 103,299 8,224 - 234,141
At 31 December 2022 377,851 164,147 37,513 135,807 715,318
NET BOOK VALUE
At 31 December 2022 2,153,511 3,386 2,458 124 2,159,479
At 31 December 2021 5,139,475 2,433 426 759 5,143,093

A freehold property acquired for trading purposes by the company has been previously externally valued. The property was revalued on an open market value basis: by GH Chartered Surveyors RICS on 24 March 2013 for £1.1m.

Cost or valuation at 31 December 2022 is represented by:

Fixtures
Freehold Plant and and Computer
property machinery fittings equipment Totals
£    £    £    £    £   
Valuation in 2012 195,681 - - - 195,681
Cost 2,335,681 167,533 39,971 135,931 2,679,116
2,531,362 167,533 39,971 135,931 2,874,797

ESSEX MOTOR COMPANY LIMITED (REGISTERED NUMBER: 05435498)

Notes to the Consolidated Financial Statements - continued
for the year ended 31 December 2022

11. TANGIBLE FIXED ASSETS - continued

Company

If freehold land and buildings had not been revalued they would have been included at the following historical cost:

2022 2021
£    £   
Cost 2,335,681 4,258,281
Aggregate depreciation 354,062 509,815

Value of land in freehold land and buildings 232,500 510,000

12. FIXED ASSET INVESTMENTS

Company
Shares in
group
undertakings
£   
COST
At 1 January 2022
and 31 December 2022 104
NET BOOK VALUE
At 31 December 2022 104
At 31 December 2021 104

The group or the company's investments at the Balance Sheet date in the share capital of companies include the following:

Subsidiaries

Essex Park Hyundai Limited
Registered office:
Nature of business: Motor Vehicle Retailer
%
Class of shares: holding
Ordinary £1 100.00
2022 2021
£    £   
Aggregate capital and reserves 1,153,544 557,729
Profit for the year 595,817 372,943

ESSEX MOTOR COMPANY LIMITED (REGISTERED NUMBER: 05435498)

Notes to the Consolidated Financial Statements - continued
for the year ended 31 December 2022

12. FIXED ASSET INVESTMENTS - continued

Basildon Hyundai Limited
Registered office:
Nature of business: Motor Vehicle Retailer
%
Class of shares: holding
Ordinary £1 100.00
2022 2021
£    £   
Aggregate capital and reserves 1,799,502 1,519,045
Profit for the year 280,457 209,961

East London Hyundai Limited
Registered office:
Nature of business: Motor Vehicle Retailer
%
Class of shares: holding
Ordinary £1 100.00
2022 2021
£    £   
Aggregate capital and reserves 197,264 1,306
Profit for the year 195,958 299,227

Prince Avenue Service Station Limited
Registered office:
Nature of business: Motor Vehicle Retailer
%
Class of shares: holding
Ordinary £1 100.00
2022 2021
£    £   
Aggregate capital and reserves 30,155 101,378
(Loss)/profit for the year (71,223 ) 19,002


ESSEX MOTOR COMPANY LIMITED (REGISTERED NUMBER: 05435498)

Notes to the Consolidated Financial Statements - continued
for the year ended 31 December 2022

13. STOCKS

Group Company
2022 2021 2022 2021
£    £    £    £   
Stock - new 2,984,633 2,048,671 1,734,871 642,194
Stock - used 974,054 753,020 302,260 123,205
Stock - Demos 1,131,420 932,623 712,644 236,857
Stock - parts 63,805 82,626 14,823 23,372
5,153,912 3,816,940 2,764,598 1,025,628

14. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group Company
2022 2021 2022 2021
£    £    £    £   
Trade debtors 52,996 (213,668 ) 67,863 (36,453 )
Amounts owed by group undertakings - - - 262,529
Other debtors (1,687 ) 2,851 26 1,371
Prepayments 77,260 143,497 18,331 106,202
128,569 (67,320 ) 86,220 333,649

15. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group Company
2022 2021 2022 2021
£    £    £    £   
Bank loans and overdrafts (see note 17) 100,000 100,000 100,000 100,000
Trade creditors 4,956,440 3,897,398 2,784,436 1,197,356
Amounts owed to group undertakings - - 2,349,033 1,238,285
Tax 764,032 270,983 542,922 50,859
Social security and other taxes 41,758 64,702 27,208 24,016
VAT 1,058,399 500,846 867,685 54,924
Other creditors 371,528 658,132 87,815 105,771
Directors' current accounts 1,550,000 100,000 1,550,000 100,000
Accrued expenses 51,885 61,199 11,965 18,960
Deferred income due within one
year 4,096 7,441 4,096 7,441
8,898,138 5,660,701 8,325,160 2,897,612

ESSEX MOTOR COMPANY LIMITED (REGISTERED NUMBER: 05435498)

Notes to the Consolidated Financial Statements - continued
for the year ended 31 December 2022

16. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

Group Company
2022 2021 2022 2021
£    £    £    £   
Bank loans (see note 17) 250,000 350,000 250,000 350,000
Deferred income due after five
years 141,998 146,094 141,998 146,094
Deferred income (2-5 years) 16,384 16,384 16,384 16,384
408,382 512,478 408,382 512,478

The bank loan bears an interest rate of 2.09% above the prevailing Bank of England base rate. The final loan repayment date is June 2026.

17. LOANS

An analysis of the maturity of loans is given below:

Group Company
2022 2021 2022 2021
£    £    £    £   
Amounts falling due within one year or on demand:
Bank loans 100,000 100,000 100,000 100,000
Amounts falling due between two and five years:
Bank loans - 2-5 years 250,000 350,000 250,000 350,000

18. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Group
Non-cancellable operating leases
2022 2021
£    £   
Within one year 64,850 47,850
Between one and five years 346,612 457,529
411,462 505,379

ESSEX MOTOR COMPANY LIMITED (REGISTERED NUMBER: 05435498)

Notes to the Consolidated Financial Statements - continued
for the year ended 31 December 2022

18. LEASING AGREEMENTS - continued

Company
Non-cancellable operating leases
2022 2021
£    £   
Within one year 47,850 -
Between one and five years 346,612 457,529
394,462 457,529

19. SECURED DEBTS

The following secured debts are included within creditors:

Group Company
2022 2021 2022 2021
£    £    £    £   
Bank loans 350,000 450,000 350,000 450,000
Trade creditors 4,694,500 3,264,843 2,682,210 994,081
5,044,500 3,714,843 3,032,210 1,444,081

Consignment stock is purchased under a New Vehicle Supply agreement with Hyundai Car Finance Limited and MG Motor UK. Included within trade creditors of the group at the year end is a liability under these agreements of £4,694,500 (2021: £3,264,843) which is secured by a charge over the relevant consignment stock and an indemnity given by the directors of the group.

The company has given an unlimited guarantee to its bankers in respect of bank indebtedness on behalf of itself and its subsidiary undertakings.

Within bank loans as at 31st December 2022 is a sum of £350,000 which is secured by the government under the Business Interruption Loan Scheme provisions.

20. PROVISIONS FOR LIABILITIES

Group Company
2022 2021 2022 2021
£    £    £    £   
Deferred tax 99,649 83,640 99,649 83,640

ESSEX MOTOR COMPANY LIMITED (REGISTERED NUMBER: 05435498)

Notes to the Consolidated Financial Statements - continued
for the year ended 31 December 2022

20. PROVISIONS FOR LIABILITIES - continued

Group
Deferred
tax
£   
Balance at 1 January 2022 83,640
Provided during year 16,009
Balance at 31 December 2022 99,649

Company
Deferred
tax
£   
Balance at 1 January 2022 83,640
Provided during year 16,009
Balance at 31 December 2022 99,649

21. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2022 2021
value: £    £   
72,100 Ordinary £1 72,100 112,500
(2021 - 112,500 )
40,500 Ordinary A £1 40,500 100
112,600 112,600

During the year, 40,400 Ordinary £1 shares were reclassified as £40,400 Ordinary £1 A shares.

ESSEX MOTOR COMPANY LIMITED (REGISTERED NUMBER: 05435498)

Notes to the Consolidated Financial Statements - continued
for the year ended 31 December 2022

22. RESERVES

Group
Own
property
revaluation
Retained reserve
earnings (Non-distrib) Totals
£    £    £   

At 1 January 2022 3,759,832 1,480,581 5,240,413
Profit for the year 3,021,271 3,021,271
Dividends (3,950,000 ) (3,950,000 )
Revaluation during the year - (4,268 ) (4,268 )
Annual revaluation transfer 4,268 (1,295,732 ) (1,291,464 )
Disposal during the year 1,295,732 - 1,295,732
At 31 December 2022 4,131,103 180,581 4,311,684

Company
Own
property
revaluation
Retained reserve
earnings (Non-distrib) Totals
£    £    £   

At 1 January 2022 1,580,480 1,480,581 3,061,061
Profit for the year 2,020,262 2,020,262
Dividends (3,950,000 ) (3,950,000 )
Revaluation during the year - (4,268 ) (4,268 )
Annual revaluation transfer 4,268 (1,295,732 ) (1,291,464 )
Disposal during the year 1,295,732 - 1,295,732
At 31 December 2022 950,742 180,581 1,131,323


23. ULTIMATE CONTROLLING PARTY

Mr W Cook, a company director, is the ultimate controlling party of the company.

24. RELATED PARTY DISCLOSURES

The company has taken advantage of the exemption available under the terms of Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" not to disclose transactions entered into between two or more members of a group on the basis that any subsidiary undertakings which is party to the transaction is a wholly owned subsidiary undertaking within the group.