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REGISTERED NUMBER: 03475588 (England and Wales)












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: P Denning
D Q Drayson





SECRETARY: H L Taylor





REGISTERED OFFICE: 23 Blackmoor Road
Ebblake Industrial Estate
VERWOOD
Dorset
BH31 6AX





REGISTERED NUMBER: 03475588 (England and Wales)





AUDITORS: Alan W. Simons Limited (Statutory Auditor)
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:





P Denning - Director


5 October 2023

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
P Denning has held office during the whole of the period from 1 January 2022 to the date of this report.

Other changes in directors holding office are as follows:

J F Denning - deceased 2 April 2022
D Q Drayson - appointed 13 October 2022

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:





P Denning - Director


5 October 2023

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.




Mr Alan Simons (Senior Statutory Auditor)
for and on behalf of Alan W. Simons Limited (Statutory Auditor)
Chartered Accountants
Hillview Business Centre
2 Leybourne Avenue
Bournemouth
Dorset
BH10 6HF

5 October 2023

CRESCENT MOTORCYCLE COMPANY LIMITED (REGISTERED NUMBER: 03475588)

INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2022

2022 2021
as restated
Notes £    £   

TURNOVER 3 18,583,879 12,676,033

Cost of sales 16,750,598 11,737,661
GROSS PROFIT 1,833,281 938,372

Administrative expenses 1,303,030 1,047,595
530,251 (109,223 )

Other operating income 4 - 269,661
OPERATING PROFIT 6 530,251 160,438

Interest receivable and similar income - 21
PROFIT BEFORE TAXATION 530,251 160,459

Tax on profit 8 102,415 (54,585 )
PROFIT FOR THE FINANCIAL YEAR 427,836 215,044

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 427,836 215,044


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

427,836

215,044

CRESCENT MOTORCYCLE COMPANY LIMITED (REGISTERED NUMBER: 03475588)

BALANCE SHEET
31 DECEMBER 2022

2022 2021
as restated
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 11 78,662 -
Tangible assets 12 2,054,300 2,117,163
Investments 13 11,759 10,409
2,144,721 2,127,572

CURRENT ASSETS
Stocks 14 4,591,490 3,985,901
Debtors 15 828,689 662,307
Cash at bank 1,228,703 772,795
6,648,882 5,421,003
CREDITORS
Amounts falling due within one year 16 3,439,412 2,621,151
NET CURRENT ASSETS 3,209,470 2,799,852
TOTAL ASSETS LESS CURRENT
LIABILITIES

5,354,191

4,927,424

CREDITORS
Amounts falling due after more than one
year

17

-

(25,679

)

PROVISIONS FOR LIABILITIES 20 (24,610 ) -
NET ASSETS 5,329,581 4,901,745

CAPITAL AND RESERVES
Called up share capital 21 100 100
Retained earnings 22 5,329,481 4,901,645
SHAREHOLDERS' FUNDS 5,329,581 4,901,745

The financial statements were approved by the Board of Directors and authorised for issue on 5 October 2023 and were signed on its behalf by:





P Denning - Director


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 100 4,872,601 4,872,701

Changes in equity
Dividends - (186,000 ) (186,000 )
Total comprehensive income - 215,044 215,044
Balance at 31 December 2021 100 4,901,645 4,901,745

Changes in equity
Total comprehensive income - 427,836 427,836
Balance at 31 December 2022 100 5,329,481 5,329,581

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 1 728,594 (636,885 )
Tax refunded - 102,350
Net cash from operating activities 728,594 (534,535 )

Cash flows from investing activities
Purchase of intangible fixed assets (86,600 ) -
Purchase of tangible fixed assets (69,404 ) (17,097 )
Purchase of fixed asset investments (1,350 ) (8,592 )
Sale of tangible fixed assets - 36,333
Interest received - 21
Net cash from investing activities (157,354 ) 10,665

Cash flows from financing activities
New loans in year - 10,363
Loan repayments in year (56,265 ) (56,265 )
Capital repayments in year (4,809 ) (25,646 )
Amount introduced by directors - 56,840
Amount withdrawn by directors (54,258 ) -
Government grants - 269,661
Equity dividends paid - (186,000 )
Net cash from financing activities (115,332 ) 68,953

Increase/(decrease) in cash and cash equivalents 455,908 (454,917 )
Cash and cash equivalents at beginning of
year

2

772,795

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 530,251 160,459
Depreciation charges 140,205 137,201
Profit on disposal of fixed assets - (10,246 )
Government grants - (269,661 )
Finance income - (21 )
670,456 17,732
Increase in stocks (605,589 ) (887,300 )
Increase in trade and other debtors (175,697 ) (314,305 )
Increase in trade and other creditors 839,424 546,988
Cash generated from operations 728,594 (636,885 )

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
772,795 455,908 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 private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).


2. 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.

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
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Freehold property - 2% on cost and not provided
Fixtures and fittings - 25% on cost
Motor vehicles - 25% on cost

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 16,939,579 11,531,569
Europe 1,585,847 1,142,981
United States of America 58,453 -
Africa - 1,483
18,583,879 12,676,033

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 - 269,661

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 1,519,174 1,264,913
Social security costs 155,322 124,809
Other pension costs 31,400 32,653
1,705,896 1,422,375

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
48 46

2022 2021
as restated
£    £   
Directors' remuneration 62,976 49,167
Directors' pension contributions to money purchase schemes 288 -

6. OPERATING PROFIT

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

2022 2021
as restated
£    £   
Depreciation - owned assets 132,267 137,201
Profit on disposal of fixed assets - (10,246 )
Goodwill amortisation 7,938 -
Foreign exchange differences (16,282 ) 23,613

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 68,490 -

Deferred tax 33,925 (54,585 )
Tax on profit 102,415 (54,585 )

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 530,251 160,459
Profit multiplied by the standard rate of corporation tax in the UK of 19%
(2021 - 19%)

100,748

30,487

Effects of:
Depreciation in excess of capital allowances 11,689 23,112
Utilisation of tax losses (45,432 ) (4 )
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 - 186,000

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 86,600
At 31 December 2022 86,600
AMORTISATION
Amortisation for year 7,938
At 31 December 2022 7,938
NET BOOK VALUE
At 31 December 2022 78,662

12. TANGIBLE FIXED ASSETS
Fixtures
Freehold and Motor
property fittings vehicles Totals
£    £    £    £   
COST
At 1 January 2022 1,914,303 843,401 623,885 3,381,589
Additions - 59,229 10,175 69,404
At 31 December 2022 1,914,303 902,630 634,060 3,450,993
DEPRECIATION
At 1 January 2022 - 688,805 575,621 1,264,426
Charge for year - 109,771 22,496 132,267
At 31 December 2022 - 798,576 598,117 1,396,693
NET BOOK VALUE
At 31 December 2022 1,914,303 104,054 35,943 2,054,300
At 31 December 2021 1,914,303 154,596 48,264 2,117,163

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 8,592 8,592
Other investments not loans 3,167 1,817
11,759 10,409

Additional information is as follows:
Shares in
group
undertakings
£   
COST
At 1 January 2022
and 31 December 2022 8,592
NET BOOK VALUE
At 31 December 2022 8,592
At 31 December 2021 8,592

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 930,148 742,658
Clothing stock 39,171 203,142
New and used bike stock 3,622,171 3,040,101
4,591,490 3,985,901

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 484,924 419,446
Other debtors 29,089 36,401
VAT - 29,710
Deferred tax asset - 9,315
Prepayments 42,689 16,607
Accrued income 271,987 150,828
828,689 662,307

Deferred tax asset
2021
as restated
£   
Tax losses carried forward 9,315

16. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2022 2021
as restated
£    £   
Other loans (see note 18) 24,878 56,265
Hire purchase contracts (see note 19) 801 4,809
Trade creditors 3,019,915 2,295,282
Amounts owed to group undertakings 24,072 17,028
Tax 68,490 -
Social security and other taxes 49,760 48,622
VAT 44,288 -
Other creditors 16,866 22,072
Directors' current accounts - 54,258
Accruals and deferred income 190,342 122,815
3,439,412 2,621,151

17. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
2022 2021
as restated
£    £   
Other loans (see note 18) - 24,878
Hire purchase contracts (see note 19) - 801
- 25,679

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 24,878 56,265

Amounts falling due between one and two years:
Other loans - 1-2 years - 24,878

19. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts
2022 2021
as restated
£    £   
Net obligations repayable:
Within one year 801 4,809
Between one and five years - 801
801 5,610

Non-cancellable operating leases
2022 2021
as restated
£    £   
Within one year 97,000 75,000
Between one and five years 367,833 300,000
In more than five years 218,750 293,750
683,583 668,750

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 (9,315 )
Provided during year 33,925
Balance at 31 December 2022 24,610

21. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2022 2021
value: as restated
£    £   
100 Ordinary £1 100 100

22. RESERVES
Retained
earnings
£   

At 1 January 2022 4,901,645
Profit for the year 427,836
At 31 December 2022 5,329,481

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 - -