Company Registration No. 05659945 (England and Wales)
AUTO ELECTRICS (REDDITCH) LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
PAGES FOR FILING WITH REGISTRAR
AUTO ELECTRICS (REDDITCH) LIMITED
COMPANY INFORMATION
Directors
Mr J H Garey
Mr S Garey
Secretary
Mrs M A Garey
Company number
05659945
Registered office
241 Birmingham Road
Redditch
Worcestershire
B97 6EH
Accountants
Ormerod Rutter Limited
The Oakley
Kidderminster Road
Droitwich
Worcestershire
WR9 9AY
Bankers
The Co-operative Bank Plc
PO Box 101
1 Balloon Street
Manchester
M60 4EP
AUTO ELECTRICS (REDDITCH) LIMITED
CONTENTS
Page
Accountants' report
1
Balance sheet
2 - 3
Notes to the financial statements
4 - 8
AUTO ELECTRICS (REDDITCH) LIMITED
ACCOUNTANTS' REPORT TO THE BOARD OF DIRECTORS ON THE PREPARATION OF THE UNAUDITED STATUTORY FINANCIAL STATEMENTS OF AUTO ELECTRICS (REDDITCH) LIMITED FOR THE YEAR ENDED 31 MARCH 2023
- 1 -
In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Auto Electrics (Redditch) Limited for the year ended 31 March 2023 which comprise, the balance sheet and the related notes from the company’s accounting records and from information and explanations you have given us.
As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed at http://www.icaew.com/en/members/regulations-standards-and-guidance.
This report is made solely to the Board of Directors of Auto Electrics (Redditch) Limited, as a body, in accordance with our terms of engagement. Our work has been undertaken solely to prepare for your approval the financial statements of Auto Electrics (Redditch) Limited and state those matters that we have agreed to state to the Board of Directors of Auto Electrics (Redditch) Limited, as a body, in this report in accordance with ICAEW Technical Release 07/16 AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Auto Electrics (Redditch) Limited and its Board of Directors as a body, for our work or for this report.
It is your duty to ensure that Auto Electrics (Redditch) Limited has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and profit of Auto Electrics (Redditch) Limited. You consider that Auto Electrics (Redditch) Limited is exempt from the statutory audit requirement for the year.
We have not been instructed to carry out an audit or a review of the financial statements of Auto Electrics (Redditch) Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.
Ormerod Rutter Limited
20 September 2023
Chartered Accountants
The Oakley
Kidderminster Road
Droitwich
Worcestershire
WR9 9AY
AUTO ELECTRICS (REDDITCH) LIMITED
BALANCE SHEET
AS AT 31 MARCH 2023
31 March 2023
- 2 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
3
14,400
19,200
Tangible assets
4
24,694
22,374
39,094
41,574
Current assets
Stocks
8,215
7,824
Debtors
5
37,868
39,173
Cash at bank and in hand
195,789
143,416
241,872
190,413
Creditors: amounts falling due within one year
6
(154,690)
(106,106)
Net current assets
87,182
84,307
Total assets less current liabilities
126,276
125,881
Provisions for liabilities
7
(1,417)
(1,702)
Net assets
124,859
124,179
Capital and reserves
Called up share capital
8
100
100
Profit and loss reserves
124,759
124,079
Total equity
124,859
124,179
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
For the financial year ended 31 March 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
AUTO ELECTRICS (REDDITCH) LIMITED
BALANCE SHEET (CONTINUED)
AS AT 31 MARCH 2023
31 March 2023
- 3 -
The financial statements were approved by the board of directors and authorised for issue on 20 September 2023 and are signed on its behalf by:
Mr J H Garey
Director
Company Registration No. 05659945
AUTO ELECTRICS (REDDITCH) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
- 4 -
1
Accounting policies
Company information
Auto Electrics (Redditch) Limited is a private company limited by shares incorporated in England and Wales. The registered office is 241 Birmingham Road, Redditch, Worcestershire, B97 6EH.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Revenue from the provision of services is recognised by reference to the stage of completion, when the costs incurred and costs to complete can be estimated reliably.
1.3
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Improvements to property
10% on reducing balance
Plant and machinery
25% on reducing balance
Fixtures and fittings
15% on reducing balance
Computer equipment
25% on cost
Motor vehicles
25% on reducing balance
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
AUTO ELECTRICS (REDDITCH) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 5 -
1.5
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at the lower of replacement cost and cost, adjusted where applicable for any loss of service potential.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.6
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.7
Employee benefits
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
1.8
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.9
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease asset are consumed.
AUTO ELECTRICS (REDDITCH) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 6 -
1.10
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was 9 (2022 - 9).
3
Intangible fixed assets
Goodwill
£
Cost
At 1 April 2022 and 31 March 2023
96,000
Amortisation and impairment
At 1 April 2022
76,800
Amortisation charged for the year
4,800
At 31 March 2023
81,600
Carrying amount
At 31 March 2023
14,400
At 31 March 2022
19,200
AUTO ELECTRICS (REDDITCH) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 7 -
4
Tangible fixed assets
Improvements to property
Plant and machinery
Fixtures and fittings
Computer equipment
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 April 2022
11,651
88,313
1,876
10,332
5,500
117,672
Additions
5,350
161
1,873
7,384
At 31 March 2023
17,001
88,474
1,876
12,205
5,500
125,056
Depreciation and impairment
At 1 April 2022
3,353
78,143
1,339
9,187
3,276
95,298
Depreciation charged in the year
1,097
2,587
80
743
557
5,064
At 31 March 2023
4,450
80,730
1,419
9,930
3,833
100,362
Carrying amount
At 31 March 2023
12,551
7,744
457
2,275
1,667
24,694
At 31 March 2022
8,298
10,170
537
1,145
2,224
22,374
AUTO ELECTRICS (REDDITCH) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 8 -
5
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
33,976
34,904
Other debtors
3,892
4,269
37,868
39,173
6
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
54,523
57,492
Amounts owed to group undertakings
39,287
964
Taxation and social security
57,655
44,351
Other creditors
3,225
3,299
154,690
106,106
7
Provisions for liabilities
2023
2022
£
£
Deferred tax liabilities
1,417
1,702
8
Called up share capital
2023
2022
£
£
Ordinary share capital
Issued and fully paid
30 Ordinary of £1 each
30
30
35 Ordinary Preferred of £1 each
35
35
30 Ordinary Deferred of £1 each
30
30
5 Ordinary A of £1 each
5
5
100
100
9
Control
Ultimate parent company
The ultimate parent company is Auto Electrics (Redditch) Holdings Limited, a company registered in England and Wales.
Ultimate controlling party
There is no ultimate controlling party, by virtue of no controlling interest in the ultimate parent company.