Company registration number 10641482 (England and Wales)
Van National Limited
Annual report and financial statements
For the year ended 28 February 2023
Van National Limited
Company information
Directors
Mr G P Williams
Mr R S Allchin
Mr P Matthews
(Appointed 6 April 2023)
Company number
10641482
Registered office
The Glades
Festival Way
Festival Park
Stoke-on-Trent
Staffordshire
ST1 5SQ
Auditor
DJH Mitten Clarke Audit Limited
The Glades
Festival Way
Festival Park
Stoke-on-Trent
Staffordshire
ST1 5SQ
Van National Limited
Contents
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Statement of cash flows
12
Notes to the financial statements
13 - 25
Van National Limited
Strategic report
For the year ended 28 February 2023
- 1 -

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

Principal activities

The principal activity of the company continued to be that of sale of used Light Commercial Vehicles. We operate a car supermarket style business within the LCV market offering all Brands from nearly new to 70,000 miles.

Review of the business

The company still managed slight growth even during such a challenging year, turnover up by 13.6% to £23,305,333 (2022: £20,521,117).

The gross profit margin has decreased by 0.97% to £1,513,639 (2022: £1,530,784).

The decrease in net profit was incredible, most of this can be attributed to multiple market stresses:

Vehicle Prices began to return to pre covid 19 pandemic depreciation curves during the start of our financial year, vehicles having to be re-aligned and disposed of at considerable expense to our overall margin in order to make them competitive in the market place.

The supply and distribution problems in the economy saw inflation start to rise and the cost of day-to-day business and overheads rise.

The Ukraine War caused significant cost increases particularly in fuel and parts making vehicle movements and SIV costs too rise.

Interest rates rose from 0.5% to 4.0% during this financial year, increasing our stocking charges pretty much every month in 2022/2023.

The effect of Brexit and Covid 19 retirees have pushed inflationary costs on to wages and in many cases caused the inability to employ key employees at all during 2022/23.

Quarter 3 caused a quite considerable lack of consumer confidence in the market particularly after the mini budget, even causing cancelations of ordered vehicles, this then running into the World Cup in Qatar saw quite a decline in Sales from September to December.

January and February saw stock turn and profitability returning to the business and a great start to the New Year.

The company acquired a new site during the year to help with future growth plans. There was a significant investment to improve the building that was funded from cash which has affected the net asset position this year. Management expect this net asset position to improve as no further investment is needed.

Van National Limited
Strategic report (continued)
For the year ended 28 February 2023
- 2 -
Principal risks and uncertainties

The Directors consider that the principal risks and uncertainties faced by the company are the following:

Interest Rates

The company uses several Stocking Facilities to manage its working capital. We continue to monitor this and ensure we keep this as low as possible.

Economic Risk

The risk of inflation having an impact on the LCV market. The risk of unrealistic increases in stock and other costs impacting adversely on the competitiveness of the company and its principle customers. The risks are monitored by experienced managers, cost control in different departments and our IT facilities.

Finance

Lack of growth caused by the unavailability of capital or loans.

Brand and Reputation

To maintain our position as one of the leading Omni Channel LCV retailers in the UK we must continue to invest in digital marketing and Brand awareness across the UK innovating in our website experience, ensuring our current customers and new ones choose Van National when starting their purchase journey. Understanding what our customers are going to require as the future of digital continues and the consumers buying habits alter.

We recognise that the digital world can destroy a reputation very quickly in the new world of Customers reviews and Social Media impact.

Staff

The inability to employ skilled employees to prepare vehicles for sale to the consumer. The Directors have and continue to train apprentices to fulfil these roles as the work force ages.

Health Safety and Welfare

The risk that accidents, hazards or incidents are caused by unsafe work practices that may cause injury death to our customers or employees.

On behalf of the board

Mr R S Allchin
Director
22 November 2023
Van National Limited
Directors' report
For the year ended 28 February 2023
- 3 -

The directors present their annual report and financial statements for the year ended 28 February 2023.

Results and dividends

The results for the year are set out on page 9.

Ordinary dividends were paid amounting to £107,000 (2022 - £165,245). The directors do not recommend payment of a final dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr G P Williams
Mr R S Allchin
Mr P Matthews
(Appointed 6 April 2023)
Statement of directors' responsibilities

The directors are responsible for preparing the annual 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 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:

 

 

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.

Strategic report

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

Van National Limited
Directors' report (continued)
For the year ended 28 February 2023
- 4 -
On behalf of the board
Mr R S Allchin
Director
22 November 2023
Van National Limited
Independent auditor's report
To the members of Van National Limited
- 5 -
Opinion

We have audited the financial statements of Van National Limited (the 'company') for the year ended 28 February 2023 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including 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:

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 Auditor's 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 other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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.

Van National Limited
Independent auditor's report (continued)
To the members of Van National Limited
- 6 -

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

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:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, 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.

Auditor's 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 auditor's 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.

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

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities,

including fraud and non-compliance with laws and regulations, was as follows:

Van National Limited
Independent auditor's report (continued)
To the members of Van National Limited
- 7 -

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

To address the risk of fraud through management bias and override of controls, we:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed

procedures which included, but were not limited to:

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

 

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Other matters which we are required to address

The prior period financial statements are not audited, therefore the corresponding figures are unaudited.

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 an auditor's 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.

Van National Limited
Independent auditor's report (continued)
To the members of Van National Limited
- 8 -
Stacey Parr FCCA
Senior Statutory Auditor
For and on behalf of DJH Mitten Clarke Audit Limited
23 November 2023
Accountants
Statutory Auditor
The Glades
Festival Way
Festival Park
Stoke-on-Trent
Staffordshire
ST1 5SQ
Van National Limited
Statement of comprehensive income
For the year ended 28 February 2023
- 9 -
2023
2022
as restated
Notes
£
£
Turnover
3
23,305,333
20,521,116
Cost of sales
(21,791,694)
(18,990,332)
Gross profit
1,513,639
1,530,784
Administrative expenses
(1,135,043)
(952,616)
Other operating income
-
0
12,954
Operating profit
4
378,596
591,122
Interest receivable and similar income
7
53
173
Interest payable and similar expenses
8
(355,982)
(262,203)
Profit before taxation
22,667
329,092
Tax on profit
9
11,920
(78,605)
Profit for the financial year
34,587
250,487
Van National Limited
Balance sheet
As at 28 February 2023
28 February 2023
- 10 -
2023
2022
as restated
Notes
£
£
£
£
Fixed assets
Tangible assets
11
254,861
127,008
Current assets
Stocks
12
4,908,808
5,303,124
Debtors
13
796,980
218,909
Cash at bank and in hand
328,050
521,779
6,033,838
6,043,812
Creditors: amounts falling due within one year
14
(5,215,315)
(4,914,153)
Net current assets
818,523
1,129,659
Total assets less current liabilities
1,073,384
1,256,667
Creditors: amounts falling due after more than one year
15
(397,500)
(502,500)
Provisions for liabilities
Deferred tax liability
17
18,540
24,410
(18,540)
(24,410)
Net assets
657,344
729,757
Capital and reserves
Called up share capital
19
100
100
Profit and loss reserves
20
657,244
729,657
Total equity
657,344
729,757
The financial statements were approved by the board of directors and authorised for issue on 22 November 2023 and are signed on its behalf by:
Mr G P Williams
Mr R S Allchin
Director
Director
Company Registration No. 10641482
Van National Limited
Statement of changes in equity
For the year ended 28 February 2023
- 11 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
As restated for the period ended 28 February 2022:
Balance at 1 March 2021
100
644,415
644,515
Year ended 28 February 2022:
Profit and total comprehensive income for the year
-
250,487
250,487
Dividends
10
-
(165,245)
(165,245)
Balance at 28 February 2022
100
729,657
729,757
Year ended 28 February 2023:
Profit and total comprehensive income for the year
-
34,587
34,587
Dividends
10
-
(107,000)
(107,000)
Balance at 28 February 2023
100
657,244
657,344
Van National Limited
Statement of cash flows
For the year ended 28 February 2023
- 12 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
25
574,466
(1,401,557)
Interest paid
(355,982)
(262,203)
Income taxes paid
(61,095)
(138,208)
Net cash inflow/(outflow) from operating activities
157,389
(1,801,968)
Investing activities
Purchase of tangible fixed assets
(175,674)
(35,626)
Repayment of loans
-
0
72,751
Interest received
53
173
Net cash (used in)/generated from investing activities
(175,621)
37,298
Financing activities
Proceeds from borrowings
-
0
100,000
Movement in stocking facility balances
36,503
1,715,186
Repayment of bank loans
(105,000)
(17,500)
Dividends paid
(107,000)
(165,245)
Net cash (used in)/generated from financing activities
(175,497)
1,632,441
Net decrease in cash and cash equivalents
(193,729)
(132,229)
Cash and cash equivalents at beginning of year
521,779
654,008
Cash and cash equivalents at end of year
328,050
521,779
Van National Limited
Notes to the financial statements
For the year ended 28 February 2023
- 13 -
1
Accounting policies
Company information

Van National Limited is a private company limited by shares incorporated in England and Wales. The registered office is The Glades, Festival Way, Festival Park, Stoke-on-Trent, Staffordshire, ST1 5SQ.

 

The principal place of business is Clarence House, Clarence Road, Stoke-on-Trent, Staffordshire, ST3 1AZ.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Turnover is measured at the fair value of the consideration received or receivable, after discounts, returns and rebates, excluding value added tax and other sales taxes.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on despatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.4
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:

Leasehold improvements
2% on cost
Plant and equipment
25% on cost
Fixtures and fittings
25% on cost
Computer equipment
25% on cost
Motor vehicles
24% on cost

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

Van National Limited
Notes to the financial statements (continued)
For the year ended 28 February 2023
1
Accounting policies
(Continued)
- 14 -
1.5
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

Recoverable amount is the higher of fair value less costs to sell and value in use.

 

If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately in profit or loss.

1.6
Stocks

Stocks are stated at the lower of cost and net realisable value (estimated selling price less costs to complete and sell). Cost includes all costs of purchase and other costs incurred in bringing stock to its present location and condition. Cost is calculated using the first-in, first-out formula. Provision is made for damaged, obsolete and slow-moving stock where appropriate.

1.7
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand.

1.8
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments' of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Van National Limited
Notes to the financial statements (continued)
For the year ended 28 February 2023
1
Accounting policies
(Continued)
- 15 -
Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.9
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.10
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Van National Limited
Notes to the financial statements (continued)
For the year ended 28 February 2023
1
Accounting policies
(Continued)
- 16 -
Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

1.11
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.12
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.13
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

1.14
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

Government grants relating to turnover are recognised as income over the periods when the related costs are incurred. Grants relating to an asset are recognised in income systematically over the asset's expected useful life. If part of such a grant is deferred it is recognised as deferred income rather than being deducted from the asset's carrying amount.

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Van National Limited
Notes to the financial statements (continued)
For the year ended 28 February 2023
2
Judgements and key sources of estimation uncertainty
(Continued)
- 17 -

In the directors' opinion there are no critical judgements or estimates that they have been made aware of in applying company's accounting policies and that have had a significant effect on the amounts recognised in the financial statements.

3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Van sales
22,568,206
19,927,023
Warranty & commission sales
737,127
594,093
23,305,333
20,521,116
2023
2022
£
£
Other revenue
Interest income
53
173
Grants received
-
12,954
4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Government grants
-
(12,954)
Fees payable to the company's auditor for the audit of the company's financial statements
18,500
-
0
Depreciation of owned tangible fixed assets
47,821
21,756
Operating lease charges
164,216
102,500
5
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2023
2022
Number
Number
Workshop, mechanics and other direct staff
19
18
Sales
13
9
Accounts and admin
9
9
Directors
1
1
Total
42
37
Van National Limited
Notes to the financial statements (continued)
For the year ended 28 February 2023
5
Employees
(Continued)
- 18 -

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
1,369,347
1,246,361
Social security costs
147,468
123,824
Pension costs
26,384
22,396
1,543,199
1,392,581
6
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
8,783
16,632
7
Interest receivable and similar income
2023
2022
£
£
Interest income
Other interest income
53
173
8
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
69,978
74,653
Other interest on financial liabilities
143,067
187,550
213,045
262,203
Other finance costs:
Stocking loan fees
142,937
-
0
355,982
262,203
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
-
0
61,095
Adjustments in respect of prior periods
(6,050)
-
0
Total current tax
(6,050)
61,095
Van National Limited
Notes to the financial statements (continued)
For the year ended 28 February 2023
9
Taxation
2023
2022
£
£
(Continued)
- 19 -
Deferred tax
Origination and reversal of timing differences
(5,870)
17,510
Total tax (credit)/charge
(11,920)
78,605

The actual (credit)/charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Profit before taxation
22,667
329,092
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
4,307
62,527
Tax effect of expenses that are not deductible in determining taxable profit
2,775
3,621
Adjustments in respect of prior years
(6,050)
-
0
Effect of change in corporation tax rate
2,539
-
0
Depreciation on assets not qualifying for tax allowances
22
324
Deferred tax adjustments in respect of prior years
-
0
14,550
Superdeduction
(1,034)
(1,951)
Stuctural Buildings Allowance
-
0
(466)
Deferred tax not recognised
(14,479)
-
0
Taxation (credit)/charge for the year
(11,920)
78,605

Factors affecting future tax charges

 

The main corporation tax rate was legislated to increase from 19% to 25% with effect from 1 April 2023, significantly increasing the tax payable on profits earned.

 

Given the change to the main corporation tax rate, deferred tax has been provided for at 25% where appropriate.

10
Dividends
2023
2022
£
£
Interim paid
107,000
165,245
Van National Limited
Notes to the financial statements (continued)
For the year ended 28 February 2023
- 20 -
11
Tangible fixed assets
Leasehold improvements
Plant and equipment
Fixtures and fittings
Computer equipment
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 March 2022
85,933
47,125
16,142
39,145
-
0
188,345
Additions
100,282
2,391
9,393
6,658
56,950
175,674
At 28 February 2023
186,215
49,516
25,535
45,803
56,950
364,019
Depreciation and impairment
At 1 March 2022
6,875
19,409
12,418
22,635
-
0
61,337
Depreciation charged in the year
3,753
11,605
4,418
8,682
19,363
47,821
At 28 February 2023
10,628
31,014
16,836
31,317
19,363
109,158
Carrying amount
At 28 February 2023
175,587
18,502
8,699
14,486
37,587
254,861
At 28 February 2022
79,058
27,716
3,724
16,510
-
0
127,008
12
Stocks
2023
2022
£
£
Finished goods and goods for resale
4,908,808
5,303,124
13
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
223,652
11,049
Unpaid share capital
20
20
Corporation tax recoverable
6,050
-
0
Other debtors
545,617
175,150
Prepayments and accrued income
21,641
32,690
796,980
218,909
Van National Limited
Notes to the financial statements (continued)
For the year ended 28 February 2023
- 21 -
14
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Bank loans
16
105,000
105,000
Other borrowings
16
3,438,639
3,402,136
Trade creditors
621,937
275,671
Corporation tax
-
0
61,095
Other taxation and social security
72,907
99,880
Other creditors
880,921
902,754
Accruals and deferred income
95,911
67,617
5,215,315
4,914,153

Included in others loans are stocking loans of £3,343,777 (2022 - £3,307,274) which are secured against the assets financed. Bank loans of £105,000 (2022 - £105,000) are secured by way of a fixed charge and a floating charge on the assets of the company.

 

Included within other creditors falling due within one year is a directors loan account balance totalling £870,842 (2022 - £907,161) that is secured by a debenture containing fixed and floating charges.

 

15
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Bank loans and overdrafts
16
297,500
402,500
Other borrowings
16
100,000
100,000
397,500
502,500

Bank loans of £297,500 (2022 - £402,500) are secured by way of a fixed charge and a floating charge on the assets of the company.

16
Loans and overdrafts
2023
2022
£
£
Bank loans
402,500
507,500
Other loans
3,538,639
3,502,136
3,941,139
4,009,636
Payable within one year
3,543,639
3,507,136
Payable after one year
397,500
502,500
Van National Limited
Notes to the financial statements (continued)
For the year ended 28 February 2023
- 22 -
17
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
18,540
24,410
2023
Movements in the year:
£
Liability at 1 March 2022
24,410
Credit to profit or loss
(5,870)
Liability at 28 February 2023
18,540
18
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
26,384
22,396

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

Contributions totalling £5,927 (2022 - £5,055) were payable to the fund at the balance sheet date and are included in creditors.

19
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and not fully paid
of £1 each
100
100
100
100

The ordinary shares are eligible to receive dividends when declared and have full voting rights and full entitlement to return of capital upon winding up or other distribution.

20 ordinary shares of £1 per share were issued but are not fully paid.

20
Profit and loss reserves

The profit and loss account reserves relate to accumulated results of the business, less dividends declared and adjusted for transfers to/from other reserves.

Van National Limited
Notes to the financial statements (continued)
For the year ended 28 February 2023
- 23 -
21
Financial commitments, guarantees and contingent liabilities

At the balance sheet date, the company had guaranteed borrowings of related party companies. At 28 February 2023 these borrowings amounted to £379,573 (2022 - £430,110). As at the date of approval of these financial statements, the directors do not anticipate that the guarantees will be called upon.

22
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2023
2022
£
£
Within one year
15,432
42,500
Between two and five years
26,728
127,500
In over five years
11,154
-
0
53,314
170,000
23
Related party transactions

During the year, rent of £80,000 (2022: nil) was paid to a company with a common shareholder and director.

At the year end, a balance of £94,862 (2022: £94,862) was due to this company. Interest of £1,830 (2022: nil) was charged during the year on this balance.

 

At the year end there is a balance of £100,471 (2022: £100,471) due to a related individual. Interest of £5,000 (2022: £5,000) was incurred in relation to the balance.

 

At the year end there is a balance of £870,842 (2022: £907,161) due to a Director. Interest of £46,195 (2022: £43,123) was charged in relation to the balance.

24
Directors' transactions
Description
% Rate
Opening balance
Amounts advanced
Interest charged
Amounts repaid
Closing balance
£
£
£
£
£
Mr R S Allchin - Director Loan Accounts
2.25
11,715
77,800
53
(85,000)
4,568
11,715
77,800
53
(85,000)
4,568
Van National Limited
Notes to the financial statements (continued)
For the year ended 28 February 2023
- 24 -
25
Cash generated from/(absorbed by) operations
2023
2022
£
£
Profit for the year after tax
34,587
250,487
Adjustments for:
Taxation (credited)/charged
(11,920)
78,605
Finance costs
355,982
262,203
Investment income
(53)
(173)
Depreciation and impairment of tangible fixed assets
47,821
21,756
Movements in working capital:
Decrease/(increase) in stocks
394,316
(2,031,067)
(Increase)/decrease in debtors
(572,021)
295,225
Increase/(decrease) in creditors
325,754
(278,593)
Cash generated from/(absorbed by) operations
574,466
(1,401,557)
26
Analysis of changes in net debt
1 March 2022
Cash flows
28 February 2023
£
£
£
Cash at bank and in hand
521,779
(193,729)
328,050
Borrowings excluding overdrafts
(4,009,636)
68,497
(3,941,139)
(3,487,857)
(125,232)
(3,613,089)
27
Prior period adjustment
Adjustments to equity
The prior period adjustments do not give rise to any effect upon equity.
Adjustments to profit for the previous financial period
2022
£
Total adjustments
-
Notes to adjustments
Van National Limited
Notes to the financial statements (continued)
For the year ended 28 February 2023
27
Prior period adjustment
(Continued)
- 25 -

The directors have identified a number of prior period adjustments. These adjustments impact on the classification of certain items in the Statement of Comprehensive Income and Balance Sheet only and do not have any impact on Profit after tax or Net Assets in the prior period.

 

The impact of these adjustments is to the Balance Sheet is to increase stock by £64,745, reduce trade debtors by £239,895, increase other debtors by £175,150, reduce trade creditors by £1,266,365, reduce other creditors by £94,862, reduce bank loans by £2,040,909, increase other loans by £3,402,136. The changes do not impact net assets.

 

The impact of the adjustments on the Statement of Comprehensive Income is to increase cost of sales by £660,443, and to reduce administrative expenses by the same amount. There is no impact on the profit after tax in the prior period.

2023-02-282022-03-01falseCCH SoftwareCCH Accounts Production 2023.300Mr G P WilliamsMr R S AllchinMr P Matthewsfalse2023-11-23106414822022-03-012023-02-2810641482bus:Director12022-03-012023-02-2810641482bus:Director22022-03-012023-02-2810641482bus:Director32022-03-012023-02-2810641482bus:RegisteredOffice2022-03-012023-02-28106414822023-02-28106414822021-03-012022-02-2810641482core:RetainedEarningsAccumulatedLosses2021-03-012022-02-2810641482core:RetainedEarningsAccumulatedLosses2022-03-012023-02-28106414822022-02-2810641482core:LeaseholdImprovements2023-02-2810641482core:PlantMachinery2023-02-2810641482core:FurnitureFittings2023-02-2810641482core:ComputerEquipment2023-02-2810641482core:MotorVehicles2023-02-2810641482core:LeaseholdImprovements2022-02-2810641482core:PlantMachinery2022-02-2810641482core:FurnitureFittings2022-02-2810641482core:ComputerEquipment2022-02-2810641482core:MotorVehicles2022-02-2810641482core:CurrentFinancialInstrumentscore:WithinOneYear2023-02-2810641482core:CurrentFinancialInstrumentscore:WithinOneYear2022-02-2810641482core:Non-currentFinancialInstrumentscore:AfterOneYear2023-02-2810641482core:Non-currentFinancialInstrumentscore:AfterOneYear2022-02-2810641482core:CurrentFinancialInstruments2023-02-2810641482core:CurrentFinancialInstruments2022-02-2810641482core:Non-currentFinancialInstruments2023-02-2810641482core:Non-currentFinancialInstruments2022-02-2810641482core:ShareCapital2023-02-2810641482core:ShareCapital2022-02-2810641482core:RetainedEarningsAccumulatedLosses2023-02-2810641482core:RetainedEarningsAccumulatedLosses2022-02-2810641482core:ShareCapital2021-02-2810641482core:RetainedEarningsAccumulatedLosses2021-02-281064148212022-03-012023-02-28106414822022-02-28106414822021-02-2810641482core:LeaseholdImprovements2022-03-012023-02-2810641482core:PlantMachinery2022-03-012023-02-2810641482core:FurnitureFittings2022-03-012023-02-2810641482core:ComputerEquipment2022-03-012023-02-2810641482core:MotorVehicles2022-03-012023-02-2810641482core:UKTax2022-03-012023-02-2810641482core:UKTax2021-03-012022-02-281064148212021-03-012022-02-281064148222022-03-012023-02-281064148222021-03-012022-02-281064148232022-03-012023-02-281064148232021-03-012022-02-281064148242022-03-012023-02-281064148242021-03-012022-02-2810641482core:LeaseholdImprovements2022-02-2810641482core:PlantMachinery2022-02-2810641482core:FurnitureFittings2022-02-2810641482core:ComputerEquipment2022-02-2810641482core:MotorVehicles2022-02-2810641482core:WithinOneYear2023-02-2810641482core:WithinOneYear2022-02-2810641482core:BetweenTwoFiveYears2023-02-2810641482core:BetweenTwoFiveYears2022-02-2810641482core:MoreThanFiveYears2023-02-2810641482core:MoreThanFiveYears2022-02-2810641482bus:PrivateLimitedCompanyLtd2022-03-012023-02-2810641482bus:FRS1022022-03-012023-02-2810641482bus:Audited2022-03-012023-02-2810641482bus:FullAccounts2022-03-012023-02-28xbrli:purexbrli:sharesiso4217:GBP