REGISTERED NUMBER: |
STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 JANUARY 2023 |
FOR |
S AND M TYRES LIMITED |
REGISTERED NUMBER: |
STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 JANUARY 2023 |
FOR |
S AND M TYRES LIMITED |
S AND M TYRES LIMITED (REGISTERED NUMBER: 01207887) |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 JANUARY 2023 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 9 |
Income Statement | 13 |
Other Comprehensive Income | 14 |
Balance Sheet | 15 |
Statement of Changes in Equity | 16 |
Notes to the Financial Statements | 17 |
S AND M TYRES LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31 JANUARY 2023 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Statutory Auditor |
Sterling House |
27 Hatchlands Road |
Redhill |
Surrey |
RH1 6RW |
SOLICITORS: |
36-48 Queen Street |
Horsham |
West Sussex |
RH13 5AD |
S AND M TYRES LIMITED (REGISTERED NUMBER: 01207887) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31 JANUARY 2023 |
The directors present their strategic report for the year ended 31 January 2023. |
PRINCIPAL ACTIVITY |
The company's principle activity is selling tyres; we sell to the public and local businesses through sixteen fast-fit centres that trade as Elite Garages. We wholesale tyres to the motor trade across southern England as EG Wholesale. In addition we operate nine petrol stations in West Sussex, Surrey, Hampshire and Cornwall and a supermarket which trades as Morrisons Local in Shaftesbury |
FAIR REVIEW OF THE BUSINESS |
We consider the key financial performance indicators are those that communicate the financial performance and strength of the company as a whole being turnover and gross margin. |
The products that we deal in are closely related to the price of oil and the exchange rate of the dollar, these factors along with interest rates and the effect of our competitors are the major risks and uncertainties we face. |
The volume of fuel that we sold this year was slightly more than the year before however the increase in energy prices generally meant that the sales value increased by 27%. The sales value of the goods sold through our forecourt shops also increased significantly due to inflation but there was also volume growth in part due to the full year figures from our new supermarket The gross margin from our forecourt operation increased by 35% on the previous year. |
Our tyre business turnover increased by some 18% in the year and this was mirrored by the margin however the increase in labour charges meant that overall gross margin increased by 9%. This was inclusive of the additional sales generated by our recent branch additions. |
Our total turnover for the year increased to £71.0m (2022 - £57.2m) an increase of 24% and our gross profit increased to £8.1m (2022 - £6.6m) a rise of 22%. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The risks and uncertainties in our business are affected by international exchange rates, commodity prices and general business confidence. Changes in the level of competition from other tyre sellers and petrol retailers will also have a bearing. |
OBJECTIVES AND POLICIES |
The company does not actively use financial instruments as part of its financial risk management. The company's policy is to finance working capital through the use of loan advances. The company is exposed to the usual credit and cash flow risk associated with selling on credit. The Directors do not consider any other risks attaching to the use of financial instruments to be material to an assessment of the company's financial position or results for the year |
S AND M TYRES LIMITED (REGISTERED NUMBER: 01207887) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31 JANUARY 2023 |
PRICE RISK, CREDIT RISK, LIQUIDITY RISK AND CASH FLOW RISK |
The business' principal financial instruments comprise bank balances, trade debtors, trade creditors and loans to the business. The main purpose of the instruments is to finance the business' operations. |
In respect of bank balances, the liquidity risk is managed by maintaining a balance between the continuity of funding and flexibility by management of credit facilities. |
Trade debtors are managed in respect of credit and cash flow risk by the regular monitoring of amounts outstanding for both time and credit limits. The amounts presented in the balance sheet are net of allowances for doubtful debtors. |
It is the company's policy to ensure settlement of supplier invoices in accordance with the stated terms. The business manages the liquidity risk by ensuring that there are sufficient funds available for operations. |
ON BEHALF OF THE BOARD: |
S AND M TYRES LIMITED (REGISTERED NUMBER: 01207887) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 JANUARY 2023 |
The directors present their report with the financial statements of the company for the year ended 31 January 2023. |
DIVIDENDS |
No interim dividend was paid during the year. The directors recommend a final dividend of |
The total distribution of dividends for the year ended 31 January 2023 will be £ |
S AND M TYRES LIMITED (REGISTERED NUMBER: 01207887) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 JANUARY 2023 |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 February 2022 to the date of this report. |
STREAMLINED ENERGY AND CARBON REPORTING |
Environmental Matters and Streamlined Energy and Carbon Reporting (SECR) |
The company takes environmental matters seriously and continues to improve its impact on the local and wider environment. |
From 1 August 2019 we are required to report under new SECVR regulations which provides increased transparency on our energy efficiency and emissions as a business. |
Reporting methodology |
The information has been provided using the GHG Protocol Corporate Accounting and Reporting Standard and the 2019 UK Government Environmental Reporting Guidelines. |
This report (including the Scope 1 and 2 consumption and CO2e emissions data) has been developed and calculated using the GHG Protocol - A Corporate Accounting and Reporting Standard (World Business Council for Sustainable Development and World Resources Institute, 2004);Greenhouse Gas Protocol - Scope 2 Guidance (World Resources Institute, 2015);ISO 14064-1 and ISO 14064-2 (ISO, 2018; ISO 2019); Environmental Reporting Guidelines Including Streamlined Energy and Carbon Reporting Guidance (HM Government, 2019). |
Government Emissions Factor Database 2022 version 2 has been used, utilising the published kWh gross calorific value (CV) and kgCO2e emission factors relevant for the above reporting period. |
Estimations were undertaken to cover missing periods for properties directly invoiced to the company. These were calculated on a kWh/day pro-rata basis at the meter level. For properties where the company is indirectly responsible for utilities (ie, via a landlord or service charge), the median consumption for properties, with similar operations was calculated at meter level and applied to the properties with no available data. |
These full-year estimations were applied to one electricity supply. All estimations equated to 4.14% of reported consumption. An intensity metric has been calculated using total tCO2e figures and the selected performance indicator agreed with the company for the relevant report period: Total turnover: £71.04m. |
SECR Highlights: |
Total Carbon Emissions: 882.40 tCO2e |
Overall Carbon Intensity: Intensity Metric: 12.42 tCO2e per £m turnover |
Natural Gas | Electricity | Transport |
Carbon & Energy Consumption |
kWh | 25,277 | 1,554,076 | 2,501,932 |
tCO2e | 4.63 | 300.53 | 577.25 |
Carbon Intensity Metric |
tCO2e per Turnover (£m) |
0.07 |
4.23 |
8.13 |
Energy Saving Projects: |
- Solar Feasibility Surveys |
- Refrigeration Upgrades |
- Electrical Upgrades |
Executive Summary |
S AND M TYRES LIMITED (REGISTERED NUMBER: 01207887) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 JANUARY 2023 |
This report summarises the company's energy usage, associated emission, energy efficiency actions and energy performance under the government policy Streamlined Energy & Carbon Reporting (SECR). This is implemented by the Companies (Directors' Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018. |
An operational boundary has been applied for the purposes of the reporting. A total of 4.14% of consumption data used for SECR has been estimated to achieve 100% data coverage. |
Year 1 |
S&M Tyres Limited Scope 1 and 3 direct emission (combustion of natural gas and transportation fuels) for this year of reporting are 581.88 tCO2e, resulting from the direct combustion of 2,527,209 kWh of fuel. |
Scope 2 indirect emissions (purchased electricity) for this year of reporting are 300.53 tCO2e, resulting from the consumption of 1,554,076 kWh of electricity purchased and consumed in day-to-day business operations. |
S&M Tyres Limited operations have an intensity metric of 12.42 tCO2e per £m Turnover for this reporting year. |
Annual Reporting Figures |
The following figures show the consumption and associated emission for this reporting year for S&M Tyres Limited's operations throughout the UK. Scope 1consumption and emission include direct combustion of natural gas, and fuels utilised for transportation operations, for example, company vehicle fleets. Scope 2 consumption and emission refer to indirect emission related to the consumption of purchased electricity in day-to-day business operations. Scope 3 consumption and emissions cover emissions resulting from sources not directly owner by S&M Tyres Limited. This relates to grey fleet (business travel undertaken in employee-owned vehicles) only. |
Table 2: S&M Tyres Limited UK Emissions intensity Metric. |
Intensity Metrics | Location-based tCO2e 2022/23 |
All Sc opes tCO2e per £m Turnover | 12.42 |
Table 3: S&M Tyres Limited UK Total Energy Consumption (kWh). |
Utility and Scope | 2022/23 Consumption (kWh) |
Scope 1 Total | 2,460,528 |
Gaseous and Other Fuels (Scope 1) | 25,277 |
Transportation (Scope 1) | 2,435,251 |
Scope 2 Total | 1,554,076 |
Grid-Supplied Electricity (Scope 2) | 1,554,076 |
Scope 3 Total | 66,682 |
Transportation (Scope 3) | 66,682 |
Total | 4,081,285 |
Table 4: S&M Tyres Limited UK Total Location-based Emission (tCO2e) |
Utility and Scope | 2022/23 Consumption (tCO2e) Location-based |
Scope 1 Total | 566.50 |
Gaseous and OTher Fuels (Scope 1) | 4.63 |
Transportation (Scope 1) | 561.87 |
Scope 2 Total | 300.53 |
Grid-Supplied Electricity (Scope 2) | 300.53 |
Scope 3 Total | 15.38 |
Transportation (Scope 3) | 15.38 |
Total | 882.40 |
S AND M TYRES LIMITED (REGISTERED NUMBER: 01207887) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 JANUARY 2023 |
Energy Efficiency Improvements |
S&M Tyres Limited is committed to year-on-year improvements in its operational energy efficiency. A register of energy efficiency measures has been compiled, with a view to implementing these measures in the next five years. |
Measures ongoing and undertaken through FY 2022/23: |
- Solar Feasibility Surveys. Surveys have been undertaken across the portfolio to establish which may be suitable for solar panel installation. The aim of this is to find the best sites for solar photovoltaic installations which can reduce S&M Tyres' energy purchased from the gris and lower emission. |
- Refrigeration Upgrades. Whenever refrigeration units are due to be replaced in any location, efforts are made to find the most energy-efficient models available to replace them. |
- Electrical Upgrade. When lighting or other electrical equipment is undergoing repair or replacement, energy-efficient products and practices are employed in order to reduce energy wastage as much as possible. |
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; |
- | state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; |
- | 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 or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
S AND M TYRES LIMITED (REGISTERED NUMBER: 01207887) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 JANUARY 2023 |
AUDITORS |
The auditors, GBJ LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
S AND M TYRES LIMITED |
Opinion |
We have audited the financial statements of S and M Tyres Limited (the 'company') for the year ended 31 January 2023 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity and 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 January 2023 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 |
S AND M TYRES 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 seven, 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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
S AND M TYRES 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. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
We enquired of management concerning the Company's policies and procedures relating to: |
- the identification, evaluation and compliance with laws and regulations; |
- the detection and response to the risks of fraud; and |
- the establishment of internal controls to mitigate risks related to fraud or non-compliance with laws and |
regulations. |
The Company is subject to many laws and regulations where the consequences of non-compliance could have a material effect on amounts or disclosures in the financial statements. We identified the following laws and regulations as the most likely to have a material effect if non-compliance were to occur; United Kingdom Generally Accepted Accounting Practice, the Companies Act 2006, tax legislation, anti-bribery legislation, GDPR and employment law. |
We assessed the susceptibility of the company's financial statements to material misstatement, including how fraud might occur, by evaluating management's incentives and opportunities for manipulation of the financial statements. This included the evaluation of the risk of management override of controls. We determined that the principal risks were in relation to: |
- journal entries that increased revenues or that reclassified costs from the income statement to the balance |
sheet |
- stock existence, completeness and valuation |
- potential management bias in determining accounting estimates |
- transactions with related parties. |
It is the audit partner's assessment that the audit team collectively had the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations. |
We obtained an understanding of the Company's operations, including the nature of its revenue sources, products and services and of its objectives and strategies to understand the classes of transactions, account balances, expected financial statement disclosures and business risks that may result in risks of material misstatement. We also considered the effectiveness of the Company's control environment to identify and prevent any irregularities and fraud. |
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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
S AND M TYRES LIMITED |
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 |
Sterling House |
27 Hatchlands Road |
Redhill |
Surrey |
RH1 6RW |
S AND M TYRES LIMITED (REGISTERED NUMBER: 01207887) |
INCOME STATEMENT |
FOR THE YEAR ENDED 31 JANUARY 2023 |
2023 | 2022 |
Notes | £ | £ |
TURNOVER | 3 |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
1,457,983 | 1,531,354 |
Other operating income |
OPERATING PROFIT | 5 |
Interest receivable and similar income |
1,955,001 | 2,095,768 |
Interest payable and similar expenses | 6 |
PROFIT BEFORE TAXATION |
Tax on profit | 7 |
PROFIT FOR THE FINANCIAL YEAR |
S AND M TYRES LIMITED (REGISTERED NUMBER: 01207887) |
OTHER COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 31 JANUARY 2023 |
2023 | 2022 |
Notes | £ | £ |
PROFIT FOR THE YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
S AND M TYRES LIMITED (REGISTERED NUMBER: 01207887) |
BALANCE SHEET |
31 JANUARY 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 9 |
Tangible assets | 10 |
Investments | 11 |
CURRENT ASSETS |
Stocks | 12 |
Debtors | 13 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 14 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
15 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 18 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 19 |
Retained earnings |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
S AND M TYRES LIMITED (REGISTERED NUMBER: 01207887) |
STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 JANUARY 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 February 2021 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 January 2022 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 January 2023 |
S AND M TYRES LIMITED (REGISTERED NUMBER: 01207887) |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 JANUARY 2023 |
1. | STATUTORY INFORMATION |
S and M Tyres Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Financial Reporting Standard 102 - reduced disclosure exemptions |
The company has taken advantage of the following disclosure exemption in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland": |
• | the requirements of Section 7 Statement of Cash Flows. |
Related party exemption |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
Significant judgements and estimates |
Preparation of the financial statements requires management to make significant judgements and estimates. The only items in the financial statements where these judgements and estimates have been made is in the depreciation rate of tangible fixed assets and bad debt provision in connection with trade debtors. |
Turnover and revenue recognition |
Turnover represents amounts receivable for the sale of motor vehicle parts, accessories, forecourt goods and the repair of motor vehicles, excluding discounts, rebates, value added tax and other sales taxes. |
Revenue is recognised as and when the entity satisfies a performance obligation and the significant risks and rewards of ownership have been transferred to the customer. |
Goodwill |
Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the company's interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made. |
Amortisation |
Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows: |
Amortisation method and rate - 100% in year of acquisition |
S AND M TYRES LIMITED (REGISTERED NUMBER: 01207887) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JANUARY 2023 |
2. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
Short leasehold | - |
Plant and machinery | - |
Motor vehicles | - |
Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation. |
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation. |
Stocks |
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method for fuel stock. Tyre stock is valued using the average cost method. |
At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its recoverable amount being the higher of value in use and fair value less costs to sell, the impairment loss is recognised immediately in profit or loss. |
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. |
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. |
Leases |
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease. |
The company receives income from operating leases. Receipts are credited to the profit and loss account on a straight line basis over the period of the lease. |
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. |
S AND M TYRES LIMITED (REGISTERED NUMBER: 01207887) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JANUARY 2023 |
2. | ACCOUNTING POLICIES - continued |
Going concern |
In preparing the financial statements the directors are required to assess the company's ability to continue to trade as a going concern for the foreseeable future. |
The directors have reviewed the cash flow forecasts and based their assessment therefore believe that the company will have sufficient financing in place to ensure cash flow requirements are satisfied and that there are no material uncertainties. As such, the directors continue to adopt the going concern basis of accounting in preparing the annual financial statements. |
Borrowings |
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Profit and Loss Account over the period of the relevant borrowing. |
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges. |
Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date. |
3. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the company. |
An analysis of turnover by class of business is given below: |
2023 | 2022 |
£ | £ |
4. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
2023 | 2022 |
Retail and workshops | 276 | 234 |
Administration and support | 10 | 10 |
Other departments | 2 | 2 |
S AND M TYRES LIMITED (REGISTERED NUMBER: 01207887) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JANUARY 2023 |
4. | EMPLOYEES AND DIRECTORS - continued |
2023 | 2022 |
£ | £ |
Directors' remuneration |
Information regarding the highest paid director is as follows: |
2023 | 2022 |
£ | £ |
Emoluments etc |
5. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2023 | 2022 |
£ | £ |
Other operating leases |
Depreciation - owned assets |
Profit on disposal of fixed assets | ( |
) | ( |
) |
Auditors' remuneration |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
£ | £ |
Bank interest |
Loan interest |
Other interest payable |
7. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2023 | 2022 |
£ | £ |
Current tax: |
UK corporation tax |
Deferred tax |
Tax on profit |
8. | DIVIDENDS |
2023 | 2022 |
£ | £ |
Ordinary A shares of 1 each |
Final |
S AND M TYRES LIMITED (REGISTERED NUMBER: 01207887) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JANUARY 2023 |
9. | INTANGIBLE FIXED ASSETS |
Goodwill |
£ |
COST |
At 1 February 2022 |
and 31 January 2023 |
AMORTISATION |
At 1 February 2022 |
and 31 January 2023 |
NET BOOK VALUE |
At 31 January 2023 |
At 31 January 2022 |
10. | TANGIBLE FIXED ASSETS |
Short | Plant and | Motor |
leasehold | machinery | vehicles | Totals |
£ | £ | £ | £ |
COST |
At 1 February 2022 |
Additions |
Disposals | ( |
) | ( |
) |
At 31 January 2023 |
DEPRECIATION |
At 1 February 2022 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
At 31 January 2023 |
NET BOOK VALUE |
At 31 January 2023 |
At 31 January 2022 |
11. | FIXED ASSET INVESTMENTS |
Investments (neither listed nor unlisted) were as follows: |
2023 | 2022 |
£ | £ |
Group Tyre (UK) Limited | 8,239 | 8,239 |
S AND M TYRES LIMITED (REGISTERED NUMBER: 01207887) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JANUARY 2023 |
12. | STOCKS |
2023 | 2022 |
£ | £ |
Stocks |
Included in stock is an amount of £406,632 (2022 - £387,777) in respect of consignment stock in the hands of third parties. |
13. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Trade debtors |
Amounts owed by group undertakings |
Other debtors |
Directors' loan accounts | 23,092 | 126,768 |
Prepayments |
14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Bank loans and overdrafts (see note 16) |
Trade creditors |
Corporation tax |
Social security and other taxes |
VAT | 827,924 | 395,391 |
Other creditors |
Defined contributions pension | 53,831 | 40,000 |
Directors' loan accounts | - | 27,428 |
Accrued expenses |
15. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2023 | 2022 |
£ | £ |
Bank loans (see note 16) |
S AND M TYRES LIMITED (REGISTERED NUMBER: 01207887) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JANUARY 2023 |
16. | LOANS |
Bank borrowings |
Barclays loan is denominated in sterling with a nominal interest rate of 1.75%, and the final instalment is due to be paid on 1 December 2026. The carrying amount at year end is £573,196 (2022: £627,230). |
Barclays loan is denominated in sterling with a nominal interest rate of 1.75%, and the final instalment is due to be paid on 11 July 2023. The carrying amount at year end is £797,740 (2022: £858,940). |
Barclays loan is denominated in sterling with a nominal interest rate of 1.75%. £502,500 was advanced in July 2020 and the final instalment is due to be paid on 23 July 2025. The carrying amount at year end is £429,871 (2022: £457,996). |
Barclays loan is denominated in sterling with a nominal interest rate of 2.55%, and the final instalment is due to be paid on 5 March 2026. The carrying amount at year end is £596,460 (2022: £630,765). |
Bank loans are secured by fixed and floating charges via inter-company cross guarantees. |
17. | LEASING AGREEMENTS |
Minimum lease payments under non-cancellable operating leases fall due as follows: |
2023 | 2022 |
£ | £ |
Within one year |
Between one and five years |
In more than five years |
The amount of non-cancellable operating lease payments recognised as an expense during the year was £112,195 (2022 - £112,195). |
18. | PROVISIONS FOR LIABILITIES |
2023 | 2022 |
£ | £ |
Deferred tax | 451,736 | 253,945 |
Deferred tax |
£ |
Balance at 1 February 2022 |
Provided during year |
Balance at 31 January 2023 |
19. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary A | 1 | 100 | 100 |
S AND M TYRES LIMITED (REGISTERED NUMBER: 01207887) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JANUARY 2023 |
20. | PENSION COMMITMENTS |
The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £235,746 (2022- £121,552). |
Contributions totalling £58,831 (2022 - £40,000) were payable to the scheme at the end of the year and are included in creditors. |
21. | TRANSACTIONS WITH DIRECTORS |
R J Whittemore |
At the balance sheet date the amount owed by R J Whittemore to the company was £4,910 (2022: -£27,408 owed to). |
S D Whittemore |
At the balance sheet date S D Whittemore owed the company £18,183 (2022: £126,768). |
22. | RELATED PARTY DISCLOSURES |
Entities with control, joint control or significant influence over the entity |
Group Tyre (UK) Limited |
(Associate) |
S and M Tyres Limited has a 10% interest in Group Tyre (UK) Limited. During the year purchases of £129,479 (2022: £123,662) were made from Group Tyre (UK) Limited. At the balance sheet date the amount due to Group Tyre (UK) Limited was £5,391 (2022: £2,378). At the balance sheet date, the amount due from Group Tyre (UK) Limited was £Nil (2022: £2,159). |
Group Tyre Wholesale Limited |
(Joint venture) |
S and M Tyres Holdings Limited has a 50% interest in Group Tyre Wholesale Limited. During the year sales totalling £363,931 (2022: £205,797) and purchases totalling £1,061,986. (2022: £682,557) were made between the two companies. At the balance sheet date the amount due from Group Tyre Wholesale Limited was £36,974 (2022: £69,963). At the balance sheet date the amount due to Group Tyre Wholesale Limited was £186,471 (2022: £457,514). |
S and M Tyres Holdings Limited |
(Parent company) |
At the balance sheet date, S and M Tyres Holdings Limited owed the company £3,219,147 (2022: £4,656,907). This loan is interest free and repayable on demand. |
S and M Tyres Holdings Limited is regarded by the directors as being the company's ultimate parent company. |
23. | ULTIMATE CONTROLLING PARTY |
The controlling party is S and M Tyres Holdings Limited. |
The ultimate controlling party is |