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REGISTERED NUMBER: 02177268 (England and Wales)















STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 28 FEBRUARY 2023

FOR

READY RENT A CAR (GRIMSBY) LIMITED

READY RENT A CAR (GRIMSBY) LIMITED (REGISTERED NUMBER: 02177268)

CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2023










Page

Company Information 1

Strategic Report 2

Report of the Directors 3

Report of the Independent Auditors 4

Statement of Income and Retained Earnings 6

Balance Sheet 7

Cash Flow Statement 8

Notes to the Cash Flow Statement 9

Notes to the Financial Statements 11


READY RENT A CAR (GRIMSBY) LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 28 FEBRUARY 2023







DIRECTORS: Mr D A Chamley
Mrs E Chamley
Mr N D Chamley



REGISTERED OFFICE: 17 -19 Abbey Road
GRIMSBY
DN32 0ES



REGISTERED NUMBER: 02177268 (England and Wales)



AUDITORS: Smethurst & Co LLP
Statutory Auditors
12 Abbey Road
GRIMSBY
DN32 0HL



BANKERS: Handelsbanken
Appian Way
Unit 7
Europa Way
GRIMSBY
DN31 2UT

READY RENT A CAR (GRIMSBY) LIMITED (REGISTERED NUMBER: 02177268)

STRATEGIC REPORT
FOR THE YEAR ENDED 28 FEBRUARY 2023


The directors present their strategic report for the year ended 28 February 2023.

REVIEW OF BUSINESS
The company hires motor vehicles to businesses and private individuals from five depots located in the Lincolnshire and Humber region.

The directors regularly review the vehicle hire fleet to ensure that the quality of vehicles available to hire remain at a high standard. New vehicles are purchased based on customer demand, vehicle price and availability and older vehicles are sold based on age, market demand and running costs.

Business Environment
The onset of the Coronavirus pandemic and the resulting periods of lockdown and travel restrictions from March 2020 negatively impacted the short term vehicle hire industry but, as pandemic restrictions have been lifted, marked increases in hire levels have proved that the market is still buoyant.

Whilst there is competition from national hire firms, the company benefits from the directors local knowledge of its customers and the regions in which it operates.

Strategy
The company will continue to maintain and update its existing hire fleet and aims to gradually expand by extending the geographical area in which it operates.

The company opened a new depot in Doncaster at the end of 2020 and have been concentrating efforts to grow its share of the vehicle hire market in this area.

PRINCIPAL RISKS AND UNCERTAINTIES
The main risks and uncertainties associated with the Company are set out as follows:-

Financial Risks
The operations of the Company expose it to a variety of financial risks to include the effects of interest rate changes and credit risk.

The company undertakes assessments of its customers to limit exposure to payment default.

The global pandemic resulted in reduced availability of vehicles generally and of spare parts. Risks associated with this were well managed and, as the market for new and second hand vehicles improved in the financial year ended 28 February 2023, the company has seen a return to a more normalised cycle of hire fleet disposal and replacement.

Vehicle hire has increased beyond pre pandemic levels and growth in market share from the relatively new Doncaster depot continues to give confidence that the company is well placed to face future challenges.

KEY PERFORMANCE INDICATORS
Gross profit for the period was £4,940,847 (2022, £5,324,768) and hire fleet net book value was £24,272,269 (2022, £21,644,222).

ON BEHALF OF THE BOARD:





Mr D A Chamley - Director


22 November 2023

READY RENT A CAR (GRIMSBY) LIMITED (REGISTERED NUMBER: 02177268)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 28 FEBRUARY 2023


The directors present their report with the financial statements of the company for the year ended 28 February 2023.

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of motor vehicle hire.

DIVIDENDS
An interim dividend of £310 per share was paid on 29 November 2022.

The total distribution of dividends paid in the year ended 28 February 2023 was £310,000.

FUTURE DEVELOPMENTS
Based on current trading results, the business expects to maintain good profitability and stable cash flows from vehicle hire, boosted by returns from a robust second hand vehicle market.

The opening of a new depot in Doncaster in December 2020 has contributed to a growth in hire figures and further increases are anticipated as the depot continues to pick up new trade.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 March 2022 to the date of this report.

Mr D A Chamley
Mrs E Chamley
Mr N D Chamley

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-select suitable accounting policies and then apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he 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.

AUDITORS
The auditors, Smethurst & Co LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





Mr D A Chamley - Director


22 November 2023

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
READY RENT A CAR (GRIMSBY) LIMITED


Opinion
We have audited the financial statements of Ready Rent A Car (Grimsby) Limited (the 'company') for the year ended 28 February 2023 which comprise the Statement of Income and Retained Earnings, Balance Sheet, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
-give a true and fair view of the state of the company's affairs as at 28 February 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.

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.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
READY RENT A CAR (GRIMSBY) LIMITED


Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page three, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We obtained an understanding of the legal and regulatory framework surrounding the company and considered the risk of the company not complying with these laws and regulations.

We used a risk based approach to tailor audit procedures aimed at identifying instances of non-compliance, focusing on the laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to the Companies Act 2006.

In designing the procedures it was recognised that material misstatement arising due to fraud can be harder to detect than material misstatement arising due to error as it may involve deliberate concealment, collusion, omission or misrepresentation.

Audit procedures included making enquiries of management, assessing the risk of revenue recognition and management override by reviewing journals and correspondence and agreeing financial statement disclosures to underlying records involving, but not limited to, the use of commercial compliance software.

There are inherent limitations in the audit procedures described above and the further removed laws and regulations are from the financial transactions, the less likely we would become aware of non compliance.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.




Jennifer Mulholland (Senior Statutory Auditor)
for and on behalf of Smethurst & Co LLP
Statutory Auditors
12 Abbey Road
GRIMSBY
DN32 0HL

22 November 2023

READY RENT A CAR (GRIMSBY) LIMITED (REGISTERED NUMBER: 02177268)

STATEMENT OF INCOME AND
RETAINED EARNINGS
FOR THE YEAR ENDED 28 FEBRUARY 2023

28.2.23 28.2.22
Notes £    £   

TURNOVER 8,929,569 8,473,329

Cost of sales 3,988,722 3,148,561
GROSS PROFIT 4,940,847 5,324,768

Administrative expenses 2,366,977 1,753,075
2,573,870 3,571,693

Other operating income 38,665 232,460
OPERATING PROFIT 2,612,535 3,804,153

Interest receivable and similar income 5 94 -
2,612,629 3,804,153

Interest payable and similar expenses 6 633,367 628,634
PROFIT BEFORE TAXATION 7 1,979,262 3,175,519

Tax on profit 8 453,885 742,097
PROFIT FOR THE FINANCIAL YEAR 1,525,377 2,433,422

Profit and loss account at beginning of year 13,069,179 10,790,757

Dividends 9 (310,000 ) (155,000 )

PROFIT AND LOSS ACCOUNT AT END OF
YEAR

14,284,556

13,069,179

READY RENT A CAR (GRIMSBY) LIMITED (REGISTERED NUMBER: 02177268)

BALANCE SHEET
28 FEBRUARY 2023

28.2.23 28.2.22
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 11 26,216,803 23,652,686

CURRENT ASSETS
Stocks 12 15,000 15,000
Debtors 13 1,235,155 1,384,799
Cash at bank and in hand 13,536 36,119
1,263,691 1,435,918
CREDITORS
Amounts falling due within one year 14 7,142,192 7,202,864
NET CURRENT LIABILITIES (5,878,501 ) (5,766,946 )
TOTAL ASSETS LESS CURRENT
LIABILITIES

20,338,302

17,885,740

CREDITORS
Amounts falling due after more than one
year

15

(5,233,702

)

(4,280,967

)

PROVISIONS FOR LIABILITIES 20 (819,044 ) (534,594 )
NET ASSETS 14,285,556 13,070,179

CAPITAL AND RESERVES
Allotted, called up and
fully paid share capital 21 1,000 1,000
Profit and loss account 22 14,284,556 13,069,179
SHAREHOLDERS' FUNDS 14,285,556 13,070,179

The financial statements were approved by the Board of Directors and authorised for issue on 22 November 2023 and were signed on its behalf by:





Mr D A Chamley - Director


READY RENT A CAR (GRIMSBY) LIMITED (REGISTERED NUMBER: 02177268)

CASH FLOW STATEMENT
FOR THE YEAR ENDED 28 FEBRUARY 2023

28.2.23 28.2.22
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 4,169,295 5,626,878
Interest paid (68,484 ) (54,727 )
Interest element of hire purchase payments
paid

(564,883

)

(573,907

)
Tax paid (281,840 ) (20,773 )
Net cash from operating activities 3,254,088 4,977,471

Cash flows from investing activities
Purchase of tangible fixed assets (584,154 ) (665,616 )
Sale of tangible fixed assets 4,083,384 3,541,544
Interest received 94 -
Net cash from investing activities 3,499,324 2,875,928

Cash flows from financing activities
New loans in year 176,000 500,000
Loan repayments in year (353,259 ) (39,076 )
Capital repayments in year (6,642,146 ) (7,627,688 )
Amount introduced by directors 310,824 -
Amount withdrawn by directors (72,650 ) (515 )
Equity dividends paid (310,000 ) (155,000 )
Net cash from financing activities (6,891,231 ) (7,322,279 )

(Decrease)/increase in cash and cash equivalents (137,819 ) 531,120
Cash and cash equivalents at beginning
of year

2

(297,301

)

(828,421

)

Cash and cash equivalents at end of year 2 (435,120 ) (297,301 )

READY RENT A CAR (GRIMSBY) LIMITED (REGISTERED NUMBER: 02177268)

NOTES TO THE CASH FLOW STATEMENT
FOR THE YEAR ENDED 28 FEBRUARY 2023


1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS
28.2.23 28.2.22
£    £   
Profit before taxation 1,979,262 3,175,519
Depreciation charges 2,749,561 2,404,059
Profit on disposal of fixed assets (644,722 ) (958,318 )
Finance costs 633,367 628,634
Finance income (94 ) -
4,717,374 5,249,894
Decrease in stocks - 8,000
Decrease/(increase) in trade and other debtors 50,760 (155,653 )
(Decrease)/increase in trade and other creditors (598,839 ) 524,637
Cash generated from operations 4,169,295 5,626,878

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 28 February 2023
28.2.23 1.3.22
£    £   
Cash and cash equivalents 13,536 36,119
Bank overdrafts (448,656 ) (333,420 )
(435,120 ) (297,301 )
Year ended 28 February 2022
28.2.22 1.3.21
£    £   
Cash and cash equivalents 36,119 102,292
Bank overdrafts (333,420 ) (930,713 )
(297,301 ) (828,421 )


READY RENT A CAR (GRIMSBY) LIMITED (REGISTERED NUMBER: 02177268)

NOTES TO THE CASH FLOW STATEMENT
FOR THE YEAR ENDED 28 FEBRUARY 2023


3. ANALYSIS OF CHANGES IN NET DEBT

Other
non-cash
At 1.3.22 Cash flow changes At 28.2.23
£    £    £    £   
Net cash
Cash at bank
and in hand 36,119 (22,583 ) 13,536
Bank overdrafts (333,420 ) (115,236 ) (448,656 )
(297,301 ) (137,819 ) (435,120 )
Debt
Finance leases (9,102,766 ) 6,642,146 (8,168,186 ) (10,628,806 )
Debts falling due
within 1 year (336,759 ) 154,376 - (182,383 )
Debts falling due
after 1 year (577,665 ) 22,883 - (554,782 )
(10,017,190 ) 6,819,405 (8,168,186 ) (11,365,971 )
Total (10,314,491 ) 6,681,586 (8,168,186 ) (11,801,091 )

READY RENT A CAR (GRIMSBY) LIMITED (REGISTERED NUMBER: 02177268)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2023


1. STATUTORY INFORMATION

Ready Rent A Car (Grimsby) Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

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


2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Significant judgements and estimates
Key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date that have a significant risk of causing material adjustment to the carrying amounts of assets and liabilities within the next financial year are described below.

In selecting depreciation rates, directors consider estimated useful life of the asset together with projected residual value. The residual value of used vehicles are subject to short term market fluctuation beyond the control of the company. Estimation uncertainty is limited by consideration of historical and projected trends based on expected market conditions. Where movement in estimated residual value is considered to be longer term, adjustments to applicable depreciation rates will be made.

Turnover
Turnover represents the amount derived from short term hire of motor vehicles, and is stated net of trade discounts and value added tax.

Turnover from vehicle hire is recognised by reference to the stage of completion of the vehicle hire contract at the balance sheet date.Stage of completion is measured by reference to the length of contract completed.

Tangible fixed assets
Fixed assets are initially recorded at original cost.

Depreciation is provided at the following annual rates in order to write off the cost of each asset, as adjusted for estimated residual value, over the useful economic life of that asset.

Freehold property2% to 4% straight line
Long leasehold4% straight line
Fixtures & fittings15% reducing balance
Motor vehicles10% to 15% reducing balance
Computer equipment15% reducing balance


Freehold land, (included in freehold property), is not depreciated.

Financial instruments
Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, either as financial assets, financial liabilities or equity instruments.

Basic financial instruments are measured at cost or amortised cost.

Financial assets are assessed at the end of each accounting period for evidence of impairment.


READY RENT A CAR (GRIMSBY) LIMITED (REGISTERED NUMBER: 02177268)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 28 FEBRUARY 2023


2. ACCOUNTING POLICIES - continued
Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Income and Retained Earnings, 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.

Hire purchase and leasing commitments
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged against profits 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.

3. EMPLOYEES AND DIRECTORS

28.02.2328.02.2022
Wages and Salaries1,184,5241,092,028
Social Security Costs91,21279,550
Other Pension Costs 20,966 17,000
1,296,7021,188,578


The average number of employees during the year was as follows:
28.02.202328.02.2022

5757

4. DIRECTORS' EMOLUMENTS
28.2.23 28.2.22
£    £   
Directors' remuneration 63,679 64,512

5. INTEREST RECEIVABLE AND SIMILAR INCOME
28.2.23 28.2.22
£    £   
Interest received 94 -

READY RENT A CAR (GRIMSBY) LIMITED (REGISTERED NUMBER: 02177268)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 28 FEBRUARY 2023


6. INTEREST PAYABLE AND SIMILAR EXPENSES
28.2.23 28.2.22
£    £   
Bank interest 18,526 14,888
Bank loan interest 49,958 39,839
Hire purchase 564,883 573,907
633,367 628,634

7. PROFIT BEFORE TAXATION

The profit is stated after charging/(crediting):

28.2.23 28.2.22
£    £   
Depreciation - owned assets 1,003,172 412,658
Depreciation - assets on hire purchase contracts 1,746,389 1,991,401
Profit on disposal of fixed assets (644,722 ) (958,318 )
Auditors' remuneration 4,020 4,320
Operating Lease Costs 78,516 103,978

8. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
28.2.23 28.2.22
£    £   
Current tax:
UK corporation tax 169,435 281,840

Deferred tax 284,450 460,257
Tax on profit 453,885 742,097

UK corporation tax was charged at 19%) in 2022.

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

28.2.23 28.2.22
£    £   
Profit before tax 1,979,262 3,175,519
Profit multiplied by the standard rate of corporation tax in the UK of 19%
(2022 - 19%)

376,060

603,349

Effects of:
Capital allowances in excess of depreciation (223,260 ) (328,721 )
Vehicle sale proceeds in excess of cost 16,635 7,212
Deferred tax charge 284,450 460,257
Total tax charge 453,885 742,097

9. DIVIDENDS
28.2.23 28.2.22
£    £   
Ordinary shares of £1 each
Interim 310,000 155,000

READY RENT A CAR (GRIMSBY) LIMITED (REGISTERED NUMBER: 02177268)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 28 FEBRUARY 2023


10. GOVERNMENT GRANTS

Grants receivable during the year ended 28 February 2023 totalling £27,530 are shown within Other Operating Income and principally comprise government backed business interruption payments covering first year interest due on Coronavirus Business Interruption finance.

Grants receivable during the year ended 28 February 2022 totalling £218,470 principally comprised government backed business interruption payments covering first year interest due on Coronavirus Business Interruption finance.

11. TANGIBLE FIXED ASSETS
Fixtures
Freehold Long and
property leasehold fittings
£    £    £   
COST
At 1 March 2022 2,657,716 202,119 106,166
Additions - - -
Disposals - - -
At 28 February 2023 2,657,716 202,119 106,166
DEPRECIATION
At 1 March 2022 745,857 133,298 91,258
Charge for year 52,287 8,085 2,236
Eliminated on disposal - - -
At 28 February 2023 798,144 141,383 93,494
NET BOOK VALUE
At 28 February 2023 1,859,572 60,736 12,672
At 28 February 2022 1,911,859 68,821 14,908

Motor Computer
vehicles equipment Totals
£    £    £   
COST
At 1 March 2022 33,467,564 20,191 36,453,756
Additions 8,751,708 632 8,752,340
Disposals (6,369,365 ) - (6,369,365 )
At 28 February 2023 35,849,907 20,823 38,836,731
DEPRECIATION
At 1 March 2022 11,823,342 7,315 12,801,070
Charge for year 2,684,999 1,954 2,749,561
Eliminated on disposal (2,930,703 ) - (2,930,703 )
At 28 February 2023 11,577,638 9,269 12,619,928
NET BOOK VALUE
At 28 February 2023 24,272,269 11,554 26,216,803
At 28 February 2022 21,644,222 12,876 23,652,686

In recognition of a continuing strong second hand vehicle market, the depreciation rate applied to the motor vehicle hire fleet has been reduced in the year from 15% reducing balance to a range of rates between 10% and 15% reducing balance. In relation to assets on hand at both the start and at the end of the financial year, the effect of the change has been to reduce the depreciation charge in the financial period by £54,782 and to increase the carrying value of motor vehicles at 28 February 2023 by the same amount.

READY RENT A CAR (GRIMSBY) LIMITED (REGISTERED NUMBER: 02177268)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 28 FEBRUARY 2023


11. TANGIBLE FIXED ASSETS - continued

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:
Motor
vehicles
£   
COST
At 1 March 2022 19,340,102
Additions 8,721,500
Transfer to ownership (8,323,626 )
At 28 February 2023 19,737,976
DEPRECIATION
At 1 March 2022 4,968,931
Charge for year 1,746,389
Transfer to ownership (3,114,638 )
At 28 February 2023 3,600,682
NET BOOK VALUE
At 28 February 2023 16,137,294
At 28 February 2022 14,371,171

12. STOCKS
28.2.23 28.2.22
£    £   
Stocks 15,000 15,000

13. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
28.2.23 28.2.22
£    £   
Trade debtors 1,086,223 1,132,667
Other debtors 148,932 252,132
1,235,155 1,384,799

14. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
28.2.23 28.2.22
£    £   
Bank loans and overdrafts (see note 16) 631,039 670,179
Hire purchase contracts (see note 17) 5,949,886 5,399,464
Trade creditors 175,958 176,452
Social security and other taxes 163,754 692,080
Other creditors 221,555 264,689
7,142,192 7,202,864

15. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
28.2.23 28.2.22
£    £   
Bank loans (see note 16) 554,782 577,665
Hire purchase contracts (see note 17) 4,678,920 3,703,302
5,233,702 4,280,967

READY RENT A CAR (GRIMSBY) LIMITED (REGISTERED NUMBER: 02177268)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 28 FEBRUARY 2023


16. LOANS

An analysis of the maturity of loans is given below:

28.2.23 28.2.22
£    £   
Amounts falling due within one year or on demand:
Bank overdrafts 448,656 333,420
Bank loans 182,383 336,759
631,039 670,179

Amounts falling due between one and two years:
Bank loans - 1-2 years 187,981 160,383

Amounts falling due between two and five years:
Bank loans - 2-5 years 317,301 417,282

Amounts falling due in more than five years:

Repayable by instalments
Bank loans more 5 yr by instal 49,500 -

17. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts
28.2.23 28.2.22
£    £   
Net obligations repayable:
Within one year 5,949,886 5,399,464
Between one and five years 4,678,920 3,703,302
10,628,806 9,102,766

Non-cancellable operating leases
28.2.23 28.2.22
£    £   
Within one year 40,000 40,000
Between one and five years 71,781 111,781
111,781 151,781

READY RENT A CAR (GRIMSBY) LIMITED (REGISTERED NUMBER: 02177268)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 28 FEBRUARY 2023


18. SECURED DEBTS

The following secured debts are included within creditors:

28.2.23 28.2.22
£    £   
Bank overdrafts 448,656 333,420
Bank loans 737,165 914,424
Hire purchase contracts 10,628,806 9,102,766
11,814,627 10,350,610

The overdraft and bank loans are secured by legal charges on the company's properties and other assets. Directors DA Chamley and Mrs E Chamley have also given personal guarantees regarding the overdraft facility in the form of a legal charge over property which is held personally but used by the business.

The hire purchase contracts are secured by legal charges on assets subject to outstanding hire purchase liabilities.

The overdraft facility is repayable on demand. The remainder of the secured debts are repayable by instalments. Interest on secured debts is charged at normal commercial rates.

19. FINANCIAL INSTRUMENTS

The carrying amounts of financial instruments measured at amortised cost are as follows:-

28.2.23 28.2.22
£    £   
Financial Assets
Trade debtors Note 13 1,086,223 1,132,667
Other debtors Note 13 148,932 252,132
1,235,155 1,384,799

Cash at bank 13,536 36,119


Financial liabilities
Bank loans and overdrafts Note 16 1,185,821 1,247,844
Hire purchase contracts Note 17 10,628,806 9,102,766
Trade creditors Note 14 175,958 176,452
Other creditors Note 14 221,555 264,689
12,212,140 10,791,751

20. PROVISIONS FOR LIABILITIES
28.2.23 28.2.22
£    £   
Deferred tax 819,044 534,594

Deferred
tax
£   
Balance at 1 March 2022 534,594
Charge to Income Statement during year 284,450
Balance at 28 February 2023 819,044

READY RENT A CAR (GRIMSBY) LIMITED (REGISTERED NUMBER: 02177268)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 28 FEBRUARY 2023


21. ALLOTTED, CALLED UP AND
FULLY PAID SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 28.2.23 28.2.22
value: £    £   
1,000 Ordinary £1 1,000 1,000

22. RESERVES
Profit
and loss
account
£   

At 1 March 2022 13,069,179
Profit for the year 1,525,377
Dividends (310,000 )
At 28 February 2023 14,284,556

23. PENSION COMMITMENTS

The company provides a defined contribution pension scheme for employees. Premiums are paid to NEST and the assets of the scheme are therefore held separately from those of the company in an independently administered fund. The pension scheme charge represents contributions payable by the company to the fund and amounted to £20,966 for the year (2022: £17,000). At the Balance Sheet date £3,995 was owed to the pension scheme (2022: £3,108).

24. DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to directors subsisted during the years ended 28 February 2023 and 28 February 2022:

28.2.23 28.2.22
£    £   
Mr D A Chamley
Balance outstanding at start of year 48,567 49,067
Amounts repaid (48,567 ) (500 )
Amounts written off - -
Amounts waived - -
Balance outstanding at end of year - 48,567

Mrs E Chamley
Balance outstanding at start of year 48,567 49,067
Amounts repaid (48,567 ) (500 )
Amounts written off - -
Amounts waived - -
Balance outstanding at end of year - 48,567

Mr N D Chamley
Balance outstanding at start of year 2,830 1,315
Amounts advanced - 1,515
Amounts repaid (1,750 ) -
Amounts written off - -
Amounts waived - -
Balance outstanding at end of year 1,080 2,830

Directors loan accounts are interest free, unsecured and repayable on demand.

READY RENT A CAR (GRIMSBY) LIMITED (REGISTERED NUMBER: 02177268)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 28 FEBRUARY 2023


25. RELATED PARTY DISCLOSURES

An advance was made to a daughter of two of the directors during 2015 of £90,000. The loan was interest free, unsecured and repayable on demand and £44,591 remained outstanding at the year end, (£47,591 2022).