REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 28 FEBRUARY 2023 |
FOR |
READY RENT A CAR (GRIMSBY) LIMITED |
REGISTERED NUMBER: |
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: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Statutory Auditors |
12 Abbey Road |
GRIMSBY |
DN32 0HL |
BANKERS: |
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: |
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. |
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: |
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. |
for and on behalf of |
Statutory Auditors |
12 Abbey Road |
GRIMSBY |
DN32 0HL |
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 |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
2,573,870 | 3,571,693 |
Other operating income |
OPERATING PROFIT |
Interest receivable and similar income | 5 |
2,612,629 | 3,804,153 |
Interest payable and similar expenses | 6 |
PROFIT BEFORE TAXATION | 7 |
Tax on profit | 8 |
PROFIT FOR THE FINANCIAL YEAR |
Profit and loss account at beginning of year |
Dividends | 9 | ( |
) | ( |
) |
PROFIT AND LOSS ACCOUNT AT END OF YEAR |
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 |
CURRENT ASSETS |
Stocks | 12 |
Debtors | 13 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 14 |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
15 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 20 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Allotted, called up and |
fully paid share capital | 21 |
Profit and loss account | 22 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
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 |
Interest paid | ( |
) | ( |
) |
Interest element of hire purchase payments paid |
( |
) |
( |
) |
Tax paid | ( |
) | ( |
) |
Net cash from operating activities |
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Sale of tangible fixed assets |
Interest received |
Net cash from investing activities |
Cash flows from financing activities |
New loans in year |
Loan repayments in year | ( |
) | ( |
) |
Capital repayments in year | ( |
) | ( |
) |
Amount introduced by directors | 310,824 | - |
Amount withdrawn by directors | (72,650 | ) | (515 | ) |
Equity dividends paid | ( |
) | ( |
) |
Net cash from financing activities | ( |
) | ( |
) |
(Decrease)/increase in cash and cash equivalents | ( |
) |
Cash and cash equivalents at beginning of year |
2 |
(297,301 |
) |
(828,421 |
) |
Cash and cash equivalents at end of year | 2 | ( |
) | ( |
) |
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 |
Depreciation charges |
Profit on disposal of fixed assets | ( |
) | ( |
) |
Finance costs | 633,367 | 628,634 |
Finance income | (94 | ) | - |
4,717,374 | 5,249,894 |
Decrease in stocks |
Decrease/(increase) in trade and other debtors | ( |
) |
(Decrease)/increase in trade and other creditors | ( |
) |
Cash generated from operations |
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 | ( |
) | ( |
) |
(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 | ( |
) | ( |
) |
(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 | ) | ( |
) | (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 |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
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 property | 2% to 4% straight line |
Long leasehold | 4% straight line |
Fixtures & fittings | 15% reducing balance |
Motor vehicles | 10% to 15% reducing balance |
Computer equipment | 15% 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 |
28.02.23 | 28.02.2022 |
Wages and Salaries | 1,184,524 | 1,092,028 |
Social Security Costs | 91,212 | 79,550 |
Other Pension Costs | 20,966 | 17,000 |
1,296,702 | 1,188,578 |
The average number of employees during the year was as follows: |
28.02.2023 | 28.02.2022 |
57 | 57 |
4. | DIRECTORS' EMOLUMENTS |
28.2.23 | 28.2.22 |
£ | £ |
Directors' remuneration |
5. | INTEREST RECEIVABLE AND SIMILAR INCOME |
28.2.23 | 28.2.22 |
£ | £ |
Interest received |
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 |
Bank loan interest |
Hire purchase |
7. | PROFIT BEFORE TAXATION |
The profit is stated after charging/(crediting): |
28.2.23 | 28.2.22 |
£ | £ |
Depreciation - owned assets |
Depreciation - assets on hire purchase contracts |
Profit on disposal of fixed assets | ( |
) | ( |
) |
Auditors' remuneration |
Operating Lease Costs |
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 |
Deferred tax |
Tax on profit |
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 |
Profit multiplied by the standard rate of corporation tax in the UK of (2022 - |
Effects of: |
Capital allowances in excess of depreciation | ( |
) | ( |
) |
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 |
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 |
Additions |
Disposals |
At 28 February 2023 |
DEPRECIATION |
At 1 March 2022 |
Charge for year |
Eliminated on disposal |
At 28 February 2023 |
NET BOOK VALUE |
At 28 February 2023 |
At 28 February 2022 |
Motor | Computer |
vehicles | equipment | Totals |
£ | £ | £ |
COST |
At 1 March 2022 |
Additions |
Disposals | ( |
) | ( |
) |
At 28 February 2023 |
DEPRECIATION |
At 1 March 2022 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
At 28 February 2023 |
NET BOOK VALUE |
At 28 February 2023 |
At 28 February 2022 |
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 |
Additions |
Transfer to ownership | (8,323,626 | ) |
At 28 February 2023 |
DEPRECIATION |
At 1 March 2022 |
Charge for year |
Transfer to ownership | (3,114,638 | ) |
At 28 February 2023 |
NET BOOK VALUE |
At 28 February 2023 |
At 28 February 2022 |
12. | STOCKS |
28.2.23 | 28.2.22 |
£ | £ |
Stocks |
13. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
28.2.23 | 28.2.22 |
£ | £ |
Trade debtors |
Other debtors |
14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
28.2.23 | 28.2.22 |
£ | £ |
Bank loans and overdrafts (see note 16) |
Hire purchase contracts (see note 17) |
Trade creditors |
Social security and other taxes |
Other creditors |
15. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
28.2.23 | 28.2.22 |
£ | £ |
Bank loans (see note 16) |
Hire purchase contracts (see note 17) |
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 |
Bank loans |
Amounts falling due between one and two years: |
Bank loans - 1-2 years |
Amounts falling due between two and five years: |
Bank loans - 2-5 years |
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 |
Between one and five years |
Non-cancellable operating | leases |
28.2.23 | 28.2.22 |
£ | £ |
Within one year |
Between one and five years |
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 |
Bank loans |
Hire purchase contracts | 10,628,806 | 9,102,766 |
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 |
Charge to Income Statement during year |
Balance at 28 February 2023 |
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: | £ | £ |
Ordinary | £1 | 1,000 | 1,000 |
22. | RESERVES |
Profit |
and loss |
account |
£ |
At 1 March 2022 |
Profit for the year |
Dividends | ( |
) |
At 28 February 2023 |
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 |
£ | £ |
Balance outstanding at start of year |
Amounts repaid | ( |
) | ( |
) |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year |
Balance outstanding at start of year |
Amounts repaid | ( |
) | ( |
) |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year |
Balance outstanding at start of year |
Amounts advanced |
Amounts repaid | ( |
) |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year |
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). |