REGISTERED NUMBER: |
CRESCENT MOTORCYCLE COMPANY LIMITED |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
REGISTERED NUMBER: |
CRESCENT MOTORCYCLE COMPANY LIMITED |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
CRESCENT MOTORCYCLE COMPANY LIMITED (REGISTERED NUMBER: 03475588) |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 3 |
Report of the Independent Auditors | 4 |
Income Statement | 6 |
Other Comprehensive Income | 7 |
Balance Sheet | 8 |
Statement of Changes in Equity | 9 |
Cash Flow Statement | 10 |
Notes to the Cash Flow Statement | 11 |
Notes to the Financial Statements | 12 |
CRESCENT MOTORCYCLE COMPANY LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants |
Hillview Business Centre |
2 Leybourne Avenue |
Bournemouth |
Dorset |
BH10 6HF |
CRESCENT MOTORCYCLE COMPANY LIMITED (REGISTERED NUMBER: 03475588) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
The directors present their strategic report for the year ended 31 December 2022. |
REVIEW OF BUSINESS |
The following information is given in accordance with S417 of the Companies Act 2006. |
PRINCIPAL ACTIVITIES |
The principal activities of the company in the year under review were those of motorcycle, clothing, accessory and after sales retailing from three showroom locations and the operation & management of an official FIM World Superbike motorcycle racing team. In February 2022, the Company acquired a used motorcycle business at a separate location to facilitate additional revenue opportunities. |
BACKGROUND / MARKET SECTOR |
The Company operates franchised motorcycle dealerships from dedicated showroom sites in both Bournemouth and Verwood in Dorset, and Southampton in Hampshire as well as a dedicated used motorcycle showroom in Bournemouth. During 2022 the Company operated the Official Yamaha World Superbike motorcycle racing team in the FIM World Superbike Championship from a dedicated facility in Verwood. |
RISKS |
With its principle business in the motorcycle retailing sector, it is at risk to any changes in customer demand, product supply or legislation influences within this market sector. The ongoing management of World Superbike racing operations is dependent on the ongoing agreement with Yamaha Motor Europe NV, together with the support of commercial sponsors and business partners. |
DEVELOPMENT AND PERFORMANCE |
i) Total Company turnover in 2022 increased by £5,907,846 (46.6%) to £18,583,879 following increased retail sales across all franchises and locations. |
ii) Total Company gross profit in 2022 increased by £894,909 (95.4%) to £1,833,281 reflecting the level of increased turnover and activity as operations and retail business continued to develop with improved model availability. |
iii) Operating profit of £530,251 in 2022 was a result of the factors mentioned above. |
iv) Net assets in 2022 increased to just over £5.3 million due to operating performance and capital expenditure. |
FUTURE PROSPECTS AND DEVELOPMENTS |
The Directors report that the UK motorcycle market remains competitive and that its retail operation will continue to identify incremental areas for further sales growth and improved profitability given supply and model availability challenges from its key franchises - Honda, Suzuki and Yamaha. The Company continues to review all franchise representations and locations as an integral part of its retail strategic development and growth. |
During 2022 the Company completed its seventh year of its partnership with Yamaha Motor Europe NV to operate the Official Yamaha World Superbike team. The Company manages team operational aspects on behalf of Yamaha Motor Europe NV including sponsorship acquisition for the achievement and support of planned budget objectives. |
SUMMARY |
Crescent Motorcycle Company Limited has completed a year of strategic development and investment in its retail operations and the progression of its motorcycle racing activities. The Directors are planning for continued focus and improvement across all business areas in 2023. |
ON BEHALF OF THE BOARD: |
CRESCENT MOTORCYCLE COMPANY LIMITED (REGISTERED NUMBER: 03475588) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
The directors present their report with the financial statements of the company for the year ended 31 December 2022. |
DIVIDENDS |
No dividends will be distributed for the year ended 31 December 2022. |
DIRECTORS |
Other changes in directors holding office are as follows: |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the 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 of the profit or loss of the company 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. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company 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 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 company'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 company's auditors are aware of that information. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
CRESCENT MOTORCYCLE COMPANY LIMITED |
Opinion |
We have audited the financial statements of Crescent Motorcycle Company Limited (the 'company') for the year ended 31 December 2022 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the 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 company's affairs as at 31 December 2022 and of its 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 company 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 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. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the 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 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 Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
CRESCENT MOTORCYCLE COMPANY LIMITED |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the 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, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the 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 page three, 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 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 company or to cease operations, or have no realistic alternative but to do so. |
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. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
We are reasonably capable of detecting fraud and error and we consider the testing performed to be sufficient for the size, nature and risk profile of the business. |
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 |
Chartered Accountants |
Hillview Business Centre |
2 Leybourne Avenue |
Bournemouth |
Dorset |
BH10 6HF |
CRESCENT MOTORCYCLE COMPANY LIMITED (REGISTERED NUMBER: 03475588) |
INCOME STATEMENT |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
2022 | 2021 |
as restated |
Notes | £ | £ |
TURNOVER | 3 |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
530,251 | (109,223 | ) |
Other operating income | 4 |
OPERATING PROFIT | 6 |
Interest receivable and similar income |
PROFIT BEFORE TAXATION |
Tax on profit | 8 | ( |
) |
PROFIT FOR THE FINANCIAL YEAR |
CRESCENT MOTORCYCLE COMPANY LIMITED (REGISTERED NUMBER: 03475588) |
OTHER COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
2022 | 2021 |
as restated |
Notes | £ | £ |
PROFIT FOR THE YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
CRESCENT MOTORCYCLE COMPANY LIMITED (REGISTERED NUMBER: 03475588) |
BALANCE SHEET |
31 DECEMBER 2022 |
2022 | 2021 |
as restated |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 11 |
Tangible assets | 12 |
Investments | 13 |
CURRENT ASSETS |
Stocks | 14 |
Debtors | 15 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 16 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
17 |
( |
) |
PROVISIONS FOR LIABILITIES | 20 | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 21 |
Retained earnings | 22 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
CRESCENT MOTORCYCLE COMPANY LIMITED (REGISTERED NUMBER: 03475588) |
STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 January 2021 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 December 2021 |
Changes in equity |
Total comprehensive income | - |
Balance at 31 December 2022 |
CRESCENT MOTORCYCLE COMPANY LIMITED (REGISTERED NUMBER: 03475588) |
CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
2022 | 2021 |
as restated |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | ( |
) |
Tax refunded |
Net cash from operating activities | ( |
) |
Cash flows from investing activities |
Purchase of intangible fixed assets | ( |
) |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Purchase of fixed asset investments | (1,350 | ) | (8,592 | ) |
Sale of tangible fixed assets |
Interest received |
Net cash from investing activities | ( |
) |
Cash flows from financing activities |
New loans in year |
Loan repayments in year | ( |
) | ( |
) |
Capital repayments in year | ( |
) | ( |
) |
Amount introduced by directors | - | 56,840 |
Amount withdrawn by directors | (54,258 | ) | - |
Government grants |
Equity dividends paid | ( |
) |
Net cash from financing activities | ( |
) |
Increase/(decrease) in cash and cash equivalents | ( |
) |
Cash and cash equivalents at beginning of year |
2 |
1,227,712 |
Cash and cash equivalents at end of year | 2 | 1,228,703 | 772,795 |
CRESCENT MOTORCYCLE COMPANY LIMITED (REGISTERED NUMBER: 03475588) |
NOTES TO THE CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2022 | 2021 |
as restated |
£ | £ |
Profit before taxation |
Depreciation charges |
Profit on disposal of fixed assets | ( |
) |
Government grants | ( |
) |
Finance income | - | (21 | ) |
670,456 | 17,732 |
Increase in stocks | ( |
) | ( |
) |
Increase in trade and other debtors | ( |
) | ( |
) |
Increase in trade and other creditors |
Cash generated from operations | ( |
) |
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 | 1,228,703 | 772,795 |
Year ended 31 December 2021 |
31.12.21 | 1.1.21 |
as restated |
£ | £ |
Cash and cash equivalents | 772,795 | 1,227,712 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.1.22 | Cash flow | At 31.12.22 |
£ | £ | £ |
Net cash |
Cash at bank | 772,795 | 455,908 | 1,228,703 |
772,795 | 1,228,703 |
Debt |
Finance leases | (5,610 | ) | 4,809 | (801 | ) |
Debts falling due within 1 year | (56,265 | ) | 31,387 | (24,878 | ) |
Debts falling due after 1 year | (24,878 | ) | 24,878 | - |
(86,753 | ) | 61,074 | (25,679 | ) |
Total | 686,042 | 516,982 | 1,203,024 |
CRESCENT MOTORCYCLE COMPANY LIMITED (REGISTERED NUMBER: 03475588) |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
1. | STATUTORY INFORMATION |
Crescent Motorcycle Company Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
Tangible fixed assets |
Freehold property | - |
Fixtures and fittings | - |
Motor vehicles | - |
It is the company's policy to maintain the freehold properties to a high standard, so that the estimated residual value will not be impaired over time. The costs of this maintenance are charged to the profit and loss account as incurred. The directors are of the opinion that any depreciation in respect of the company's freehold property would be immaterial and consequently no provision is made in the accounts for such depreciation. |
Investments in subsidiaries |
Investments in subsidiary undertakings are recognised at cost. |
Stocks |
Stocks and work in progress are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
CRESCENT MOTORCYCLE COMPANY LIMITED (REGISTERED NUMBER: 03475588) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
2. | ACCOUNTING POLICIES - continued |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
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. |
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
Financial instruments |
Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as either financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. |
Turnover |
Turnover represents net invoiced sales of goods, services and sponsorship, excluding Value Added Tax. |
Turnover is recognised in respect of retail sales at the point the sale occurs or services are provided. Sponsorship revenue is recognised in the period in which the events occur. |
3. | TURNOVER |
The turnover and profit before taxation are attributable to the principal activities of the company. |
An analysis of turnover by geographical market is given below: |
2022 | 2021 |
as restated |
£ | £ |
United Kingdom |
Europe |
United States of America |
Africa | - | 1,483 |
CRESCENT MOTORCYCLE COMPANY LIMITED (REGISTERED NUMBER: 03475588) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
4. | OTHER OPERATING INCOME |
2022 | 2021 |
as restated |
£ | £ |
Government grants |
Other operating income for the year of £nil (2021 - £269,661) relates to Government grants. Comprising £nil (2021 - £108,872) for retail, hospitality and leisure grants and £nil (2021 - £160,789) from the Coronavirus Job Retention Scheme. |
5. | EMPLOYEES AND DIRECTORS |
2022 | 2021 |
as restated |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
2022 | 2021 |
as restated |
Sales | 20 | 21 |
Mechanics | 11 | 9 |
Administration | 9 | 8 |
Technicians | 2 | 2 |
Managers | 3 | 3 |
Drivers | 1 | 1 |
Directors | 2 | 2 |
2022 | 2021 |
as restated |
£ | £ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
6. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2022 | 2021 |
as restated |
£ | £ |
Depreciation - owned assets |
Profit on disposal of fixed assets | ( |
) |
Goodwill amortisation |
Foreign exchange differences | ( |
) |
CRESCENT MOTORCYCLE COMPANY LIMITED (REGISTERED NUMBER: 03475588) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
7. | AUDITORS' REMUNERATION |
Fees payable to the company's auditor for the audit of the company's financial statements were £25,195 (2021 - £15,350) |
In addition to the items above, £12,700 (2021 - £11,982) was paid to the auditor in respect of non audit work in the period. |
8. | TAXATION |
Analysis of the tax charge/(credit) |
The tax charge/(credit) on the profit for the year was as follows: |
2022 | 2021 |
as restated |
£ | £ |
Current tax: |
UK corporation tax |
Deferred tax | ( |
) |
Tax on profit | ( |
) |
Reconciliation of total tax charge/(credit) 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 |
as restated |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of (2021 - |
Effects of: |
Depreciation in excess of capital allowances |
Utilisation of tax losses | ( |
) | ( |
) |
Research & development claim | - | (84,102 | ) |
Deferred tax in respect of accelerated capital allowances | 33,925 | 24,133 |
Deferred tax in respect of tax losses carried forwards | - | (48,211 | ) |
Pension contributions unpaid | 1,485 | - |
Total tax charge/(credit) | 102,415 | (54,585 | ) |
The company has trading losses of £nil (2021 - £239,115) to carry forwards against future trading profits. |
9. | DIVIDENDS |
2022 | 2021 |
as restated |
£ | £ |
Ordinary shares of £1 each |
Interim |
CRESCENT MOTORCYCLE COMPANY LIMITED (REGISTERED NUMBER: 03475588) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
10. | PRIOR YEAR ADJUSTMENT |
The accounts have been adjusted due to the impact of a stock reconciliation arising from the implementation of a new IT system in 2020. The change has resulted in profits available for distribution at 31 December 2021 reducing after tax by £183,512: |
Summary of the prior year accounting impact: |
2021 |
£ |
Reduction in Stock (226,553) |
Increase in Deferred Tax Asset 9,315 |
Reduction in Deferred Tax Liability 33,726 |
________ |
(183,512) |
======== |
11. | INTANGIBLE FIXED ASSETS |
Goodwill |
£ |
COST |
Additions |
At 31 December 2022 |
AMORTISATION |
Amortisation for year |
At 31 December 2022 |
NET BOOK VALUE |
At 31 December 2022 |
12. | TANGIBLE FIXED ASSETS |
Fixtures |
Freehold | and | Motor |
property | fittings | vehicles | Totals |
£ | £ | £ | £ |
COST |
At 1 January 2022 |
Additions |
At 31 December 2022 |
DEPRECIATION |
At 1 January 2022 |
Charge for year |
At 31 December 2022 |
NET BOOK VALUE |
At 31 December 2022 |
At 31 December 2021 |
CRESCENT MOTORCYCLE COMPANY LIMITED (REGISTERED NUMBER: 03475588) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
12. | TANGIBLE FIXED ASSETS - continued |
Finance lease agreements |
Included within the net book value of £2,054,300 is £nil (2021 - £6,115) relating to assets held under finance lease agreements. |
13. | FIXED ASSET INVESTMENTS |
2022 | 2021 |
as restated |
£ | £ |
Shares in group undertakings |
Other investments not loans |
Additional information is as follows: |
Shares in |
group |
undertakings |
£ |
COST |
At 1 January 2022 |
and 31 December 2022 |
NET BOOK VALUE |
At 31 December 2022 |
At 31 December 2021 |
Investments (neither listed nor unlisted) were as follows: |
2022 | 2021 |
as restated |
£ | £ |
Investments | 3,167 | 1,817 |
14. | STOCKS |
2022 | 2021 |
as restated |
£ | £ |
Parts stock |
Clothing stock | 39,171 | 203,142 |
New and used bike stock |
CRESCENT MOTORCYCLE COMPANY LIMITED (REGISTERED NUMBER: 03475588) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
15. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2022 | 2021 |
as restated |
£ | £ |
Trade debtors |
Other debtors |
VAT |
Deferred tax asset |
Prepayments |
Accrued income |
Deferred tax asset |
2021 |
as restated |
£ |
Tax losses carried forward |
16. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2022 | 2021 |
as restated |
£ | £ |
Other loans (see note 18) |
Hire purchase contracts (see note 19) |
Trade creditors |
Amounts owed to group undertakings |
Tax |
Social security and other taxes |
VAT | 44,288 | - |
Other creditors |
Directors' current accounts | - | 54,258 |
Accruals and deferred income |
17. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2022 | 2021 |
as restated |
£ | £ |
Other loans (see note 18) |
Hire purchase contracts (see note 19) |
CRESCENT MOTORCYCLE COMPANY LIMITED (REGISTERED NUMBER: 03475588) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
18. | LOANS |
An analysis of the maturity of loans is given below: |
2022 | 2021 |
as restated |
£ | £ |
Amounts falling due within one year or on demand: |
Other loans |
Amounts falling due between one and two years: |
Other loans - 1-2 years | - |
19. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Hire purchase contracts |
2022 | 2021 |
as restated |
£ | £ |
Net obligations repayable: |
Within one year |
Between one and five years |
Non-cancellable operating | leases |
2022 | 2021 |
as restated |
£ | £ |
Within one year |
Between one and five years |
In more than five years |
The total lease payments recognised as an expense in the year to 31 December 2022 is £94,990 (2021 - £72,500) |
20. | PROVISIONS FOR LIABILITIES |
2022 |
£ |
Deferred tax |
Deferred tax | 24,610 |
CRESCENT MOTORCYCLE COMPANY LIMITED (REGISTERED NUMBER: 03475588) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
20. | PROVISIONS FOR LIABILITIES - continued |
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: | as restated |
£ | £ |
Ordinary | £1 | 100 | 100 |
22. | RESERVES |
Retained |
earnings |
£ |
At 1 January 2022 |
Profit for the year |
At 31 December 2022 |
CRESCENT MOTORCYCLE COMPANY LIMITED (REGISTERED NUMBER: 03475588) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
23. | RELATED PARTY DISCLOSURES |
The controlling party is Mr P Denning by virtue of his beneficial ownership of 90% (2021 - 84%) of the issued ordinary share capital of the Company. |
The Company occupies a premises owned by a pension scheme for the benefit of the Director Mr P Denning. A normal commercial rent of £75,000 (2021 - £75,000) per annum is payable. At the balance sheet date no amount was outstanding (2021 - nil). |
The Company also occupies a premises owned by Director Mr J Denning. A normal commercial rent of £2,000 (2021 - £6,000) per annum was payable for this premises. |
The amounts owing (to)/from the Directors at the end of the year were as follows: |
2022 2021 |
£ £ |
Mr P Denning - (36,358) |
Mr J Denning - (17,900) |
_________ _________ |
- (54,258) |
_________ _________ |
The maximum amounts owing from the Directors to the Company during the year were as follows: |
2022 2021 |
£ £ |
Mr P. Denning - 125,385 |
Mr J. Denning 8,975 17,089 |
Mr D Drayson - - |