Caseware UK (AP4) 2022.0.179 2022.0.179 2023-03-312023-03-31falsefalsefalse332022-04-0138 SC395508 2022-04-01 2023-03-31 SC395508 2021-04-01 2022-03-31 SC395508 2023-03-31 SC395508 2022-03-31 SC395508 2021-04-01 SC395508 1 2022-04-01 2023-03-31 SC395508 1 2021-04-01 2022-03-31 SC395508 5 2022-04-01 2023-03-31 SC395508 5 2021-04-01 2022-03-31 SC395508 6 2022-04-01 2023-03-31 SC395508 6 2021-04-01 2022-03-31 SC395508 d:Director1 2022-04-01 2023-03-31 SC395508 d:Director2 2022-04-01 2023-03-31 SC395508 d:Director3 2022-04-01 2023-03-31 SC395508 d:Director4 2022-04-01 2023-03-31 SC395508 d:Director5 2022-04-01 2023-03-31 SC395508 d:RegisteredOffice 2022-04-01 2023-03-31 SC395508 d:Agent1 2022-04-01 2023-03-31 SC395508 e:Buildings 2022-04-01 2023-03-31 SC395508 e:Buildings 2023-03-31 SC395508 e:Buildings 2022-03-31 SC395508 e:Buildings e:OwnedOrFreeholdAssets 2022-04-01 2023-03-31 SC395508 e:PlantMachinery 2022-04-01 2023-03-31 SC395508 e:PlantMachinery 2023-03-31 SC395508 e:PlantMachinery 2022-03-31 SC395508 e:PlantMachinery e:OwnedOrFreeholdAssets 2022-04-01 2023-03-31 SC395508 e:OfficeEquipment 2022-04-01 2023-03-31 SC395508 e:OfficeEquipment 2023-03-31 SC395508 e:OfficeEquipment 2022-03-31 SC395508 e:OfficeEquipment e:OwnedOrFreeholdAssets 2022-04-01 2023-03-31 SC395508 e:OwnedOrFreeholdAssets 2022-04-01 2023-03-31 SC395508 e:CurrentFinancialInstruments 2023-03-31 SC395508 e:CurrentFinancialInstruments 2022-03-31 SC395508 e:CurrentFinancialInstruments e:WithinOneYear 2023-03-31 SC395508 e:CurrentFinancialInstruments e:WithinOneYear 2022-03-31 SC395508 e:ReportableOperatingSegment1 2022-04-01 2023-03-31 SC395508 e:ReportableOperatingSegment1 2021-04-01 2022-03-31 SC395508 e:ReportableOperatingSegment4 2022-04-01 2023-03-31 SC395508 e:ReportableOperatingSegment4 2021-04-01 2022-03-31 SC395508 e:UKTax 2022-04-01 2023-03-31 SC395508 e:UKTax 2021-04-01 2022-03-31 SC395508 e:ShareCapital 2023-03-31 SC395508 e:ShareCapital 2022-03-31 SC395508 e:RetainedEarningsAccumulatedLosses 2022-04-01 2023-03-31 SC395508 e:RetainedEarningsAccumulatedLosses 2023-03-31 SC395508 e:RetainedEarningsAccumulatedLosses 2021-04-01 2022-03-31 SC395508 e:RetainedEarningsAccumulatedLosses 2022-03-31 SC395508 e:RetainedEarningsAccumulatedLosses 2021-04-01 SC395508 e:FinancialAssetsDesignatedFairValueThroughProfitOrLoss 2023-03-31 SC395508 e:FinancialAssetsDesignatedFairValueThroughProfitOrLoss 2022-03-31 SC395508 e:FinancialAssetsAmortisedCost 2023-03-31 SC395508 e:FinancialAssetsAmortisedCost 2022-03-31 SC395508 e:FinancialLiabilitiesAmortisedCost 2023-03-31 SC395508 e:FinancialLiabilitiesAmortisedCost 2022-03-31 SC395508 d:OrdinaryShareClass1 2022-04-01 2023-03-31 SC395508 d:OrdinaryShareClass1 2023-03-31 SC395508 d:OrdinaryShareClass1 2022-03-31 SC395508 d:OrdinaryShareClass2 2022-04-01 2023-03-31 SC395508 d:OrdinaryShareClass2 2023-03-31 SC395508 d:OrdinaryShareClass2 2022-03-31 SC395508 d:OrdinaryShareClass3 2022-04-01 2023-03-31 SC395508 d:OrdinaryShareClass3 2023-03-31 SC395508 d:OrdinaryShareClass3 2022-03-31 SC395508 d:OrdinaryShareClass4 2022-04-01 2023-03-31 SC395508 d:OrdinaryShareClass4 2023-03-31 SC395508 d:OrdinaryShareClass4 2022-03-31 SC395508 d:OrdinaryShareClass5 2022-04-01 2023-03-31 SC395508 d:OrdinaryShareClass5 2023-03-31 SC395508 d:OrdinaryShareClass5 2022-03-31 SC395508 d:FRS102 2022-04-01 2023-03-31 SC395508 d:Audited 2022-04-01 2023-03-31 SC395508 d:FullAccounts 2022-04-01 2023-03-31 SC395508 d:PrivateLimitedCompanyLtd 2022-04-01 2023-03-31 SC395508 e:WithinOneYear 2023-03-31 SC395508 e:WithinOneYear 2022-03-31 SC395508 2 2022-04-01 2023-03-31 SC395508 e:AcceleratedTaxDepreciationDeferredTax 2023-03-31 SC395508 e:AcceleratedTaxDepreciationDeferredTax 2022-03-31 SC395508 e:TaxLossesCarry-forwardsDeferredTax 2023-03-31 SC395508 e:TaxLossesCarry-forwardsDeferredTax 2022-03-31 xbrli:shares iso4217:GBP xbrli:pure
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WALKER MOTORS LIMITED
DIRECTORS' REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

 
WALKER MOTORS LIMITED
 

COMPANY INFORMATION


Directors
Mr W Walker 
Mrs P Walker 
Mr W G Walker 
Mr A K Ferguson Walker 
Mrs J P Gage 




Registered number
SC395508



Registered office
Fife Mitsubishi
Cupar Trading Estate

Cupar

Fife

KY15 4SX




Independent auditors
EQ Audit Services LLP - Statutory auditor
Chartered Accountants

Pentland House

Saltire Centre

Glenrothes

Fife

KY6 2AH




Bankers
The Royal Bank of Scotland
18 Crossgate

Cupar

Fife

KY15 4SX





 
WALKER MOTORS LIMITED
 

CONTENTS



Page
Strategic Report
 
 
1 - 2
Directors' Report
 
 
3 - 4
Independent Auditors' Report
 
 
5 - 8
Statement of Income and Retained Earnings
 
 
9
Statement of Financial Position
 
 
10
Statement of Cash Flows
 
 
11
Analysis of Net Debt
 
 
12
Notes to the Financial Statements
 
 
13 - 24


 
WALKER MOTORS LIMITED
 

STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2023

Introduction
 
The directors have pleasure in presenting their strategic report for the year ended 31 March 2023.

Business review and future developments
 
The motor car industry has continued to be impacted upon by government imposed legislation including amended timescales for the phasing out of petrol and diesel cars.  Despite this and the impact of economic factors including increasing inflation, cost of living pressures, the ongoing war in Ukraine and global supply chain issues, the results for the year under review remain positive in terms of operating profit and overall financial position.
The directors are confident that the Company will continue to trade profitably in the forthcoming accounting period despite ongoing external factors.

Principal risks and uncertainties
 
The Company's performance is influenced by general economic conditions including: levels of new and used vehicle sales, availability of consumer credit, consumer confidence levels, changes in consumer demand, fuel prices, interest rates and personal discretionary spending levels. Significant changes in any of these factors may impact the number and type of vehicles that will be sold in the year end therefore the turnover generated by the company and its profitability.
Competition risk is managed by ensuring that excellent customer service is paramount at all times. Other specific risks affecting the company including external factors are managed by the board of directors.
The Company's principal financial instruments comprise bank balances, loans to the company and extended credit terms from vehicle manufacturers. The main purpose of these instruments is to finance company operations.
Due to the nature of the financial instruments used by the Company there is no exposure to price risk. The Company's approach to managing other risks applicable to the financial instruments concerned is detailed below.
In respect of loans these comprise loans from the directors. The directors are aware of the Company's required finance and have determined that these will only be repaid, in whole or in part, when finance is available.
In respect of assets purchased under extended credit terms, the liquidity risk in respect of these is managed to ensure sufficient funds are available to meet repayments.

Page 1

 
WALKER MOTORS LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023

Financial key performance indicators
 
Key performance indicators are monitored over key areas including tight control and monitoring over all aspects of working capital, strict monitoring of all aspects of cash flow and the monitoring of actual results against sales targets imposed by manufacturers. The Company's key performance indicators include turnover which decreased by 36.6% to £14.80m for the year and gross margin which increased from 11.9% to 14.5%. 


This report was approved by the board on 2 November 2023 and signed on its behalf.





................................................
Mr W G Walker
Director

Page 2

 
WALKER MOTORS LIMITED
 

 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2023

The directors present their report and the financial statements for the year ended 31 March 2023.

Directors' responsibilities statement

The directors are responsible for preparing the Strategic Report, the Directors' Report 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 for the Company's financial statements and then apply them consistently;

make judgments 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 to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

Principal activity

The Company's principal activity is that of the sale of cars as well as servicing, MOT and vehicle hire.

Results and dividends

The profit for the year, after taxation, amounted to £1,209,192 (2022 - £1,780,095).

The total distribution of dividends for the year ended 31 March 2023 is £75,400 (2022 - £96,000)

Directors

The directors who served during the year were:

Mr W Walker 
Mrs P Walker 
Mr W G Walker 
Mr A K Ferguson Walker 
Mrs J P Gage 

Page 3

 
WALKER MOTORS LIMITED
 

 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023


Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Auditors

The auditorsEQ Audit Services LLP - Statutory auditorwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 2 November 2023 and signed on its behalf.
 





................................................
Mr W G Walker
Director

Page 4

 
WALKER MOTORS LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF WALKER MOTORS LIMITED
 

Opinion


We have audited the financial statements of Walker Motors Limited (the 'Company') for the year ended 31 March 2023, which comprise the Statement of Income and Retained Earnings, the Statement of Financial Position, the Statement of Cash Flows and the related notes, including a summary of significant accounting policiesThe 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 March 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 United Kingdom, including the Financial Reporting Council'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.


Page 5

 
WALKER MOTORS LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF WALKER MOTORS LIMITED (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual ReportOur 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. 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 course of 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.


Opinion 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.


We have nothing to report in respect of the following matters in relation to which 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.


Page 6

 
WALKER MOTORS LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF WALKER MOTORS LIMITED (CONTINUED)


Responsibilities of directors
 

As explained more fully in the Directors' Responsibilities Statement set out on page 3, 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 is 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 an Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates, and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
We focused on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006 and UK tax legislation. Our tests included agreeing the financial statement disclosures to underlying supporting documentation and enquiries with management. There are inherent limitations in the audit procedures described above and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. We did not identify any key audit matters relating to irregularities, including fraud. As in all our audits, we also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to 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 Auditors' Report.


Page 7

 
WALKER MOTORS LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF WALKER MOTORS LIMITED (CONTINUED)


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 2006Our 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 an Auditors' Report 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.






Mark Gibson (Senior Statutory Auditor)
for and on behalf of
EQ Audit Services LLP - Statutory auditor
Chartered Accountants
Pentland House
Saltire Centre
Glenrothes
Fife
KY6 2AH

2 November 2023
Page 8

 
WALKER MOTORS LIMITED
 

STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 MARCH 2023

2023
2022
£
£

  

Turnover
 4 
14,784,543
23,319,733

Cost of sales
  
(12,644,618)
(20,554,977)

Gross profit
  
2,139,925
2,764,756

Administrative expenses
  
(616,511)
(541,879)

Other operating income
 5 
-
2,016

Operating profit
 6 
1,523,414
2,224,893

Interest receivable and similar income
 9 
507
-

Interest payable and similar expenses
 10 
(28,710)
(28,500)

Profit before tax
  
1,495,211
2,196,393

Tax on profit
 11 
(286,019)
(416,298)

Profit after tax
  
1,209,192
1,780,095

  

  

Retained earnings at the beginning of the year
  
5,437,982
3,753,887

Profit for the year
  
1,209,192
1,780,095

Dividends declared and paid
  
(75,400)
(96,000)

Retained earnings at the end of the year
  
6,571,774
5,437,982

The notes on pages 13 to 24 form part of these financial statements.

Page 9

 
WALKER MOTORS LIMITED
REGISTERED NUMBER: SC395508

STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2023

2023
2022
£
£

Fixed assets
  

Tangible assets
 13 
50,029
36,663

  
50,029
36,663

Current assets
  

Stocks
 14 
3,494,120
3,642,946

Debtors: amounts falling due within one year
 15 
331,638
202,170

Cash at bank and in hand
  
5,963,178
4,991,350

  
9,788,936
8,836,466

Creditors: amounts falling due within one year
 16 
(3,245,863)
(3,418,751)

Net current assets
  
 
 
6,543,073
 
 
5,417,715

Total assets less current liabilities
  
6,593,102
5,454,378

Provisions for liabilities
  

Deferred tax
 18 
(11,328)
(6,396)

  
 
 
(11,328)
 
 
(6,396)

Net assets
  
6,581,774
5,447,982


Capital and reserves
  

Called up share capital 
 19 
10,000
10,000

Profit and loss account
 20 
6,571,774
5,437,982

  
6,581,774
5,447,982


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 2 November 2023.




................................................
Mr W G Walker
Director

The notes on pages 13 to 24 form part of these financial statements.

Page 10

 
WALKER MOTORS LIMITED
 

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2023

2023
2022
£
£

Cash flows from operating activities

Profit for the financial year
1,209,192
1,780,095

Adjustments for:

Depreciation of tangible assets
9,178
7,143

Loss on disposal of tangible assets
-
(8,142)

Government grants
-
(2,016)

Interest paid
28,710
28,500

Interest received
(507)
-

Taxation charge
286,019
416,298

Decrease/(increase) in stocks
148,826
(87,309)

(Increase)/decrease in debtors
(129,468)
231,562

(Decrease) in creditors
(46,267)
(1,479,347)

Corporation tax (paid)
(281,087)
(232,512)

Net cash generated from operating activities

1,224,596
654,272


Cash flows from investing activities

Purchase of tangible fixed assets
(22,544)
(20,382)

Sale of tangible fixed assets
-
13,399

Government grants received
-
2,016

Interest received
507
-

Net cash from investing activities

(22,037)
(4,967)

Cash flows from financing activities

Loans repaid to directors
(126,621)
(48,678)

Dividends paid
(75,400)
(96,000)

Interest paid
(28,710)
(28,500)

Net cash used in financing activities
(230,731)
(173,178)

Net increase in cash and cash equivalents
971,828
476,127

Cash and cash equivalents at beginning of year
4,991,350
4,515,223

Cash and cash equivalents at the end of year
5,963,178
4,991,350


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
5,963,178
4,991,350


The notes on pages 13 to 24 form part of these financial statements.

Page 11

 
WALKER MOTORS LIMITED
 

ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 MARCH 2023




At 1 April 2022
Cash flows
At 31 March 2023
£

£

£

Cash at bank and in hand

4,991,350

971,828

5,963,178

Debt due within 1 year

(2,265,918)

126,621

(2,139,297)


2,725,432
1,098,449
3,823,881

The notes on pages 13 to 24 form part of these financial statements.

Page 12

 
WALKER MOTORS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

1.


General information

Walker Motors Limited is a private company limited by shares and incorporated in Scotland, registration number SC395508. The registered office is Fife Mitsubishi, Cupar Trading Estate, Cupar, Fife, KY15 4SX.
The financial statements are presented in Sterling, which is the functional currency of the Company, and rounded to the nearest £.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Turnover recognition

Turnover is recognised to the extent that it is probable that the economic benefits will flow to the Company and the turnover can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before turnover is recognised:

Sale of goods

Turnover from the sale of goods is recognised when all of the following conditions are satisfied:
the Company has transferred the significant risks and rewards of ownership to the buyer;
the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of turnover can be measured reliably;
it is probable that the Company will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Rendering of services

Turnover from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of turnover can be measured reliably;
it is probable that the Company will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

Page 13

 
WALKER MOTORS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

2.Accounting policies (continued)

 
2.3

Operating leases: the Company as lessor

Rental income from operating leases is credited to profit or loss on a straight-line basis over the lease term.

 
2.4

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

 
2.5

Government grants

Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the Statement of Income and Retained Earnings in the same period as the related expenditure.

 
2.6

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.7

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Company in independently administered funds.

Page 14

 
WALKER MOTORS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

2.Accounting policies (continued)

 
2.8

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

 
2.9

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Leasehold property improvements
-
10%
straight line
Plant and machinery
-
15%
straight line
Office equipment
-
33%
straight line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

Page 15

 
WALKER MOTORS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

2.Accounting policies (continued)

 
2.10

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

 
2.11

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.12

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Company's cash management.

 
2.13

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.14

Financial instruments

The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan.

 
2.15

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

Page 16

 
WALKER MOTORS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

3.


Judgments in applying accounting policies and key sources of estimation uncertainty

The most significant estimation within the company's financial statements relates to the valuation of stock, particularly second hand vehicles. The directors review the stock valuation which is valued using an industry standard to ensure that those values included in the accounts represent the fair value of stock whilst complying with accounting standards.


4.


Turnover

An analysis of turnover by class of business is as follows:


2023
2022
£
£

Sales - vehicles
12,692,816
20,949,505

Sales - servicing, parts and other
2,091,727
2,370,228

14,784,543
23,319,733


All turnover arose within the United Kingdom.


5.


Other operating income

2023
2022
£
£

Government grants receivable
-
2,016



6.


Operating profit

The operating profit is stated after charging:

2023
2022
£
£

Depreciation of tangible fixed assets
9,178
7,143

Profit on disposal of tangible assets
-
8,142

Other operating lease rentals
157,500
157,500

Auditors' remuneration
7,600
7,250

Page 17

 
WALKER MOTORS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

7.


Employees

Staff costs, including directors' remuneration, were as follows:


2023
2022
£
£

Wages and salaries
879,712
923,286

Social security costs
86,185
83,974

Cost of defined contribution scheme
18,314
18,824

984,211
1,026,084


The average monthly number of employees, including the directors, during the year was as follows:


        2023
        2022
            No.
            No.







Senior Management
3
3



Sales
6
7



Administrative
2
3



Servicing, Parts and Other Staff
22
25

33
38


8.


Directors' remuneration

2023
2022
£
£

Directors' emoluments
27,000
27,000

Company contributions to defined contribution pension schemes
166
166

27,166
27,166


During the year retirement benefits were accruing to 2 directors (2022 - 2) in respect of defined contribution pension schemes.


9.


Interest receivable

2023
2022
£
£


Other interest receivable
507
-

Page 18

 
WALKER MOTORS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

10.


Interest payable and similar expenses

2023
2022
£
£


Other loan interest payable
28,710
28,500


11.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
281,051
412,564

Adjustments in respect of previous periods
36
(17)


Total current tax
281,087
412,547

Deferred tax


Origination and reversal of timing differences
5,024
3,814

Short term timing differences
(92)
(63)

Total deferred tax
4,932
3,751


Taxation on profit on ordinary activities
286,019
416,298
Page 19

 
WALKER MOTORS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
 
11.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is the same as (2022 - the same as) the standard rate of corporation tax in the UK of 19% (2022 - 19%) as set out below:

2023
2022
£
£


Profit on ordinary activities before tax
1,495,211
2,196,393


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2022 - 19%)
284,090
417,315

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
64
64

Capital allowances for year in excess of depreciation
-
162

Additional super-deduction capital allowances
(988)
(1,163)

Adjustments to tax charge in respect of prior periods
36
(17)

Short term timing difference leading to an increase (decrease) in taxation
-
(63)

Depreciation on non-qualifying assets
98
-

Adjustments to tax charge in respect of prior periods
2,020
-

Changes in tax rates leading to an increase/(decrease) in the tax charge
699
-

Total tax charge for the year
286,019
416,298


Factors that may affect future tax charges

In the Spring Budget 2021, the UK government announced an increase in the main corporation tax rate from 19% to 25% for profits above £250,000 with effect from 1 April 2023. 


12.


Dividends

2023
2022
£
£


Ordinary shares - Dividends paid on equity capital
75,400
96,000

Page 20

 
WALKER MOTORS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

13.


Tangible fixed assets





Leasehold property improve- ments
Plant and machinery
Office equipment
Total

£
£
£
£



Cost or valuation


At 1 April 2022
286,580
271,011
2,409
560,000


Additions
-
15,160
7,384
22,544


Disposals
(7,002)
(15,621)
(1,004)
(23,627)



At 31 March 2023

279,578
270,550
8,789
558,917



Depreciation


At 1 April 2022
285,393
236,086
1,858
523,337


Charge for the year on owned assets
356
8,166
656
9,178


Disposals
(7,002)
(15,621)
(1,004)
(23,627)



At 31 March 2023

278,747
228,631
1,510
508,888



Net book value



At 31 March 2023
831
41,919
7,279
50,029



At 31 March 2022
1,187
34,925
551
36,663


14.


Stocks

2023
2022
£
£

Vehicles
3,226,907
3,413,300

Parts
215,864
190,869

Work in progress
51,349
38,777

3,494,120
3,642,946


Page 21

 
WALKER MOTORS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

15.


Debtors

2023
2022
£
£


Trade debtors
309,490
154,028

Prepayments and accrued income
22,148
48,142

331,638
202,170



16.


Creditors: Amounts falling due within one year

2023
2022
£
£

Trade creditors
474,475
303,373

Other taxation and social security
467,340
597,439

Other creditors
2,143,360
2,270,066

Accruals and deferred income
160,688
247,873

3,245,863
3,418,751



17.


Financial instruments

2023
2022
£
£

Financial assets


Financial assets measured at fair value through profit or loss
5,963,178
4,991,350

Financial assets that are debt instruments measured at amortised cost
309,490
154,028

6,272,668
5,145,378


Financial liabilities


Financial liabilities measured at amortised cost
2,931,917
2,969,677


Financial assets measured at fair value through profit or loss comprise cash at bank and in hand.
Financial assets measured at amortised cost comprise trade debtors.


Financial liabilities measured at amortised cost comprise trade creditors, accruals, other creditors and VAT.

Page 22

 
WALKER MOTORS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

18.


Deferred taxation




2023


£






At beginning of year
6,396


Charged to profit or loss
4,932



At end of year
11,328

The provision for deferred taxation is made up as follows:

2023
2022
£
£


Accelerated capital allowances
11,763
6,740

Short term timing difference
(435)
(344)

11,328
6,396


19.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



2,500 (2022 - 2,500) Ordinary A shares of £1.00 each
2,500
2,500
2,500 (2022 - 2,500) Ordinary B shares of £1.00 each
2,500
2,500
2,000 (2022 - 2,000) Ordinary C shares of £1.00 each
2,000
2,000
2,000 (2022 - 2,000) Ordinary D shares of £1.00 each
2,000
2,000
1,000 (2022 - 1,000) Ordinary E shares of £1.00 each
1,000
1,000

10,000

10,000



20.


Reserves

Profit and loss account

The profit and loss account includes all current and prior period retained profits and losses.


21.


Securities and guarantees

The company has granted security over its assets by way of a floating charge






Page 23

 
WALKER MOTORS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

22.


Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £18,314 (2022 - £18,824). Contributions totaling £4,063 (2022 - £4,218) were payable to the fund at the balance sheet date


23.


Commitments under operating leases

At 31 March 2023 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2023
2022
£
£


Not later than 1 year
157,500
157,500

Where no formal lease commitment exists, the above represents current annual lease payments.


24.


Related party transactions


2023
2022
£
£

Loans due to directors
2,139,297
2,265,918
Interest charged on directors' loans
28,710
28,500
Dividends paid to directors
75,400
96,000

The directors' are trustees of pension plans that the Company rents premises from. The rental charge paid to these pension plans for the year was £157,500 (2022- £157,500).


Page 24