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 |
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: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
SENIOR STATUTORY AUDITOR: | Mr Christopher James Whale ACA |
AUDITORS: |
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: |
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. |
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: |
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. |
for and on behalf of |
Statutory Auditor |
Springfield House |
99/101 Crossbrook Street |
Cheshunt |
Waltham Cross |
Hertfordshire |
EN8 8JR |
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 |
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 |
Investments | 12 |
CURRENT ASSETS |
Stocks | 13 |
Debtors | 14 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 15 |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year | 16 | ( |
) | ( |
) |
PROVISIONS FOR LIABILITIES | 20 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 21 |
Own property revaluation |
reserve (Non-distrib) | 22 |
Retained earnings | 22 |
SHAREHOLDERS' FUNDS |
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 were approved by the Board of Directors and authorised for issue on |
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 |
Changes in equity |
Total comprehensive income | - | ( |
) |
Balance at 31 December 2021 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - | ( |
) |
Balance at 31 December 2022 |
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 |
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 |
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 |
Additions |
Disposals | ( |
) | ( |
) |
Reclassification/transfer |
At 31 December 2022 |
DEPRECIATION |
At 1 January 2022 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
Reclassification/transfer |
At 31 December 2022 |
NET BOOK VALUE |
At 31 December 2022 |
At 31 December 2021 |
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 |
NET BOOK VALUE |
At 31 December 2022 |
At 31 December 2021 |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
Registered office: |
Nature of business: |
% |
Class of shares: | holding |
2022 | 2021 |
£ | £ |
Aggregate capital and reserves |
Profit for the year |
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 |
Registered office: |
Nature of business: |
% |
Class of shares: | holding |
2022 | 2021 |
£ | £ |
Aggregate capital and reserves |
Profit for the year |
Registered office: |
Nature of business: |
% |
Class of shares: | holding |
2022 | 2021 |
£ | £ |
Aggregate capital and reserves |
Profit for the year |
Registered office: |
Nature of business: |
% |
Class of shares: | holding |
2022 | 2021 |
£ | £ |
Aggregate capital and reserves |
(Loss)/profit for the year | ( |
) |
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 |
Stock - Demos | 1,131,420 | 932,623 |
Stock - parts | 63,805 | 82,626 | 14,823 | 23,372 |
5,153,912 | 3,816,940 |
14. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2022 | 2021 | 2022 | 2021 |
£ | £ | £ | £ |
Trade debtors | 52,996 | (213,668 | ) | ( |
) |
Amounts owed by group undertakings | - | - |
Other debtors | (1,687 | ) | 2,851 |
Prepayments | 77,260 | 143,497 |
128,569 | (67,320 | ) |
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 |
Trade creditors | 4,956,440 | 3,897,398 |
Amounts owed to group undertakings | - | - |
Tax | 764,032 | 270,983 |
Social security and other taxes | 41,758 | 64,702 |
VAT | 1,058,399 | 500,846 | 867,685 | 54,924 |
Other creditors | 371,528 | 658,132 |
Directors' current accounts | 1,550,000 | 100,000 | 1,550,000 | 100,000 |
Accrued expenses | 51,885 | 61,199 |
Deferred income due within one |
year | 4,096 | 7,441 | 4,096 | 7,441 |
8,898,138 | 5,660,701 |
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 |
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 |
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 |
Amounts falling due between two and five years: |
Bank loans - 2-5 years | 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 |
Between one and five years |
19. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group | Company |
2022 | 2021 | 2022 | 2021 |
£ | £ | £ | £ |
Bank loans | 350,000 | 450,000 |
Trade creditors | 4,694,500 | 3,264,843 | 2,682,210 | 994,081 |
5,044,500 | 3,714,843 |
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 |
Provided during year |
Balance at 31 December 2022 |
21. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2022 | 2021 |
value: | £ | £ |
Ordinary | £1 | 72,100 | 112,500 |
(2021 - 112,500 ) |
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 | 3,061,061 |
Profit for the year |
Dividends | ( |
) | ( |
) |
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 | 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. |