REGISTERED NUMBER: |
Kerr's Tyres Limited |
Strategic Report, |
Report of the Directors and |
Audited Financial Statements |
for the Year Ended 30 September 2023 |
REGISTERED NUMBER: |
Kerr's Tyres Limited |
Strategic Report, |
Report of the Directors and |
Audited Financial Statements |
for the Year Ended 30 September 2023 |
Kerr's Tyres Limited (Registered number: NI072567) |
Contents of the Financial Statements |
for the year ended 30 September 2023 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 5 |
Report of the Independent Auditors | 7 |
Income Statement | 10 |
Other Comprehensive Income | 11 |
Statement of Financial Position | 12 |
Statement of Changes in Equity | 13 |
Statement of Cash Flows | 14 |
Notes to the Statement of Cash Flows | 15 |
Notes to the Financial Statements | 17 |
Kerr's Tyres Limited |
Company Information |
for the year ended 30 September 2023 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
SENIOR STATUTORY AUDITOR: |
AUDITORS: |
22-30 Broadway Avenue |
Ballymena |
BT43 7AA |
Kerr's Tyres Limited (Registered number: NI072567) |
Strategic Report |
for the year ended 30 September 2023 |
The directors present their strategic report for the year ended 30 September 2023. |
REVIEW OF BUSINESS |
The Company results for the year and financial position of the Company are shown as annexed financial statements. |
The Company has traded exceptionally well over the last year and continues to do so. It is encouraging to see the fruition of strong strategic planning; the implementation of key initiatives and the drive and determination of the entire Kerr's Tyres staff being reflected in the strong figures presented. Further improvements are forecast as the Company looks to build upon its recent success. |
Taking a wider view of the industry, analysts suggest that the UK tyre market shrank by c. 1% in 2022 on the previous year, and was still c. 11.0% lower than 2019, the pre-Covid-19 year. The market was expected to recover somewhat in 2023 but not return to its pre pandemic levels for several years. The Company however has experienced significant growth in both turnover, margin and net profitability. This has been possible through the acquisition of additional centres and organic growth on existing sites. |
The UK car spares market has undergone a period of rapid change due to the impact of the pandemic on driving habits and on global supply chains impacting new car registrations. The picture is a mixed one, with risks and opportunities for companies operating in the industry. Average car mileage was reducing steadily before the pandemic, and it is expected that this trend will accelerate due to post-pandemic changes in working arrangements and approach to business travel. Offsetting this decline in activity there is an expectation that car ownership per household will increase, especially now that the supply of new vehicles is normalising. The expansion of home delivery services and electric vehicles also creates new opportunities for servicing and maintaining vehicles. In the short run, a growing and ageing car population provides a boost to those companies that are supplying into the replacement market that keeps vehicles operating effectively. |
At a time when we are experiencing increases in many of our operating costs, we will continue to focus on margin rather than unit or revenue growth and on providing the best possible value to our customers. The 2023 year end already shows significant improvements on previous years in that regard. The Company has entered a period of consolidation and improvement of its existing centres through a focused strategy of investment, training and marketing to build on the success of recent periods, without having to undertake an aggressive acquisition program. |
Kerr's Tyres Limited (Registered number: NI072567) |
Strategic Report |
for the year ended 30 September 2023 |
PRINCIPAL RISKS AND UNCERTAINTIES |
Inflation, Cost of Living & Russia-Ukraine Crisis and conflict in Gaza |
Alongside increased transportation costs we saw significant price rises from most of our tyre and parts suppliers, as strong demand for goods led to shortages in raw materials and labour throughout 2022 and to date. Prior to the outbreak of war in Ukraine we believed that inflationary pressures would be significant but relatively short-lived, however, for much of 2022 and into 2023 the Russia-Ukraine War has weighed heavily on a global economy that was just beginning to return to growth after the pandemic. Consequently a transitory period of inflation has transformed into a more sustained period of economic pressures, with knock-on effects for all UK businesses and consumers. For our business in 2023 we saw rising domestic fuel costs in addition to international transportation costs driving up operating costs. Both of these cost pressures had abated to a degree at the beginning of 2023 but have returned somewhat in recent weeks. As all market participants have faced the same challenges, these rising costs have largely been passed on directly to consumers, which has helped us to shelter operating margins from cost inflation. |
The company is indirectly affected by the Russia-Ukraine War, with the impact on the global and UK economies already mentioned as well as the effect on our tyre suppliers, many of whom have or had direct exposure to the Russian market through sales offices and production facilities. Russia is also a major exporter of key tyre product inputs, such as carbon black, adding to the complex range of difficulties that the tyre supply chain has already been facing. We are not currently experiencing any interruption to the flow of product to the UK as a result of the Russia-Ukraine War. |
It remains to be see how the recent conflict in Gaza will affect the Global economy, if at all, and it is likely that unless the war spreads and affects wider Middle-Eastern energy production, that the Company's business will be adversely affected. |
Brexit |
Post-Brexit, supply chain disruption in relation to GB-Northern Ireland trade has not been a significant issue for the business and management are encouraged by the expected normalisation of GB-Northern Ireland trade brought about by the "Windsor Framework" changes to the Northern Ireland Protocol and the business will benefit from simplification of trading arrangements envisaged by this new deal. |
Going concern |
The financial statements have been prepared on a going concern basis, which the directors consider to be appropriate for the following reasons: |
o Management have prepared cash flow forecasts out to the end of December 2025, which demonstrate that, taking account of plausible downside scenarios, the Company will have sufficient funds through a combination of strong trading and commercial finance facilities, to meet its liabilities as they fall due throughout that period. Our plausible downside scenario includes a reduction in sales, and a tightening of margins. |
o The business has built a strong relationship with its invoice discounting provider and facilities have been renewed recently. |
o Consequently, the directors are confident that the Company will have sufficient funds to continue to meet its liabilities as they fall due for at least 12 months from the date of approval of the financial statements, and for the foreseeable future, and therefore have prepared the financial statements on a going concern basis. |
Kerr's Tyres Limited (Registered number: NI072567) |
Strategic Report |
for the year ended 30 September 2023 |
RESULTS AND KEY PERFORMANCE INDICATORS |
The profit for the period before taxation amounted to £358,623, as shown on the Income Statement on page 7. After a positive movement in tax balances of £41,567, the balance of £400,190 has been transferred to reserves. |
The Company has experienced significant improvements in profitability in the year to 30 September 2023. The key performance indicators are |
2023 | 2022 |
(12 months - audited) | (18 months - unaudited) |
£ s | £ s |
Gross profit | 2,864 | 2,544 |
Gross margin | 19.4% | 13.2% |
Net profit before tax | 359 | (772) |
Net profit after tax | 400 | (610) |
ON BEHALF OF THE BOARD: |
Kerr's Tyres Limited (Registered number: NI072567) |
Report of the Directors |
for the year ended 30 September 2023 |
The directors present their report with the financial statements of the company for the year ended 30 September 2023. |
PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of sale of car and commercial tyres, together with vehicle servicing and maintenance. |
DIVIDENDS |
No dividends will be distributed for the year ended 30 September 2023. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 October 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 ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
Kerr's Tyres Limited (Registered number: NI072567) |
Report of the Directors |
for the year ended 30 September 2023 |
AUDITORS |
The auditors, Stevenson and Wilson, 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 |
Kerr's Tyres Limited |
Opinion |
We have audited the financial statements of Kerr's Tyres Limited (the 'company') for the year ended 30 September 2023 which comprise the Income Statement, Other Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and Notes to the Statement of Cash Flows, 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 30 September 2023 and of its profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Report of the Independent Auditors to the Members of |
Kerr's Tyres Limited |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page five, 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. |
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
o We identified the laws and regulations applicable to the company through discussions with directors and key personnel, and from our own knowledge and experience of the automotive parts and service industry. We focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006 and taxation legislation, while also giving consideration to data protection regulations, employment law and health and safety legislation. |
o The engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations and the team remained alert to the possibility of fraud and non-compliance throughout the audit. |
o We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur. We did so through discussions with management as to their assessment of areas where fraud or non-compliance might occur, as well as considering the internal controls in place to mitigate risks of fraud and non-compliance. |
o In order to ascertain the extent of compliance with the laws and regulations, we made enquiries of management as to whether there was any actual or potential litigation, we reviewed legal correspondence, we inspected tax correspondence and we performed analytical procedures to identify any unusual or unexpected activity. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
Report of the Independent Auditors to the Members of |
Kerr's Tyres Limited |
Other matter |
The year ended 30th September 2023 was the first period in which the company could no longer avail of audit exemption. The prior period figures were unaudited. We did not detect any misstatements in the opening balances which could materially affect the current periods financial statements. |
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 |
22-30 Broadway Avenue |
Ballymena |
BT43 7AA |
Kerr's Tyres Limited (Registered number: NI072567) |
Income Statement |
for the year ended 30 September 2023 |
period |
1/4/21 |
year ended | to |
30/9/23 | 30/9/22 |
(Unaudited) |
Notes | £ | £ |
TURNOVER |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
529,019 | (571,153 | ) |
Other operating income |
OPERATING PROFIT/(LOSS) | 4 | ( |
) |
Interest payable and similar expenses | 5 |
PROFIT/(LOSS) BEFORE TAXATION | ( |
) |
Tax on profit/(loss) | 6 | ( |
) | ( |
) |
PROFIT/(LOSS) FOR THE FINANCIAL YEAR |
( |
) |
Kerr's Tyres Limited (Registered number: NI072567) |
Other Comprehensive Income |
for the year ended 30 September 2023 |
period |
1/4/21 |
year ended | to |
30/9/23 | 30/9/22 |
(Unaudited) |
Notes | £ | £ |
PROFIT/(LOSS) FOR THE YEAR | ( |
) |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
( |
) |
Kerr's Tyres Limited (Registered number: NI072567) |
Statement of Financial Position |
30 September 2023 |
2023 | 2022 |
(Unaudited) |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 7 |
Tangible assets | 8 |
Investments | 9 |
Investment property | 10 |
CURRENT ASSETS |
Stocks | 11 |
Debtors | 12 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 13 |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
14 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 19 |
Share premium |
Retained earnings | ( |
) |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
Kerr's Tyres Limited (Registered number: NI072567) |
Statement of Changes in Equity |
for the year ended 30 September 2023 |
Called up |
share | Retained | Share | Total |
capital | earnings | premium | equity |
£ | £ | £ | £ |
Balance at 1 April 2021 |
Changes in equity |
Issue of share capital | - |
Total comprehensive income | - | ( |
) | - | ( |
) |
Balance at 30 September 2022 | ( |
) |
Changes in equity |
Total comprehensive income | - | - |
Balance at 30 September 2023 |
Kerr's Tyres Limited (Registered number: NI072567) |
Statement of Cash Flows |
for the year ended 30 September 2023 |
period |
1/4/21 |
year ended | to |
30/9/23 | 30/9/22 |
(Unaudited) |
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 intangible fixed assets | ( |
) |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Purchase of investment property | ( |
) |
Sale of tangible fixed assets |
Net cash from investing activities | ( |
) | ( |
) |
Cash flows from financing activities |
Loan repayments in year | ( |
) | ( |
) |
Capital repayments in year | ( |
) | ( |
) |
Amount introduced by directors | - | 572,966 |
Amount withdrawn by directors | (85,221 | ) | (600,257 | ) |
Share issue |
Share buyback |
Advanced to subsidiary company | ( |
) | ( |
) |
Advanced to connected company | ( |
) |
Net cash from financing activities | ( |
) |
Increase/(decrease) in cash and cash equivalents | ( |
) |
Cash and cash equivalents at beginning of year |
2 |
(1,415,742 |
) |
(739,378 |
) |
Cash and cash equivalents at end of year | 2 | ( |
) | ( |
) |
Kerr's Tyres Limited (Registered number: NI072567) |
Notes to the Statement of Cash Flows |
for the year ended 30 September 2023 |
1. | RECONCILIATION OF PROFIT/(LOSS) BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
period |
1/4/21 |
year ended | to |
30/9/23 | 30/9/22 |
(Unaudited) |
£ | £ |
Profit/(loss) before taxation | ( |
) |
Depreciation charges |
Profit on disposal of fixed assets | ( |
) | ( |
) |
Finance costs | 214,666 | 221,400 |
909,016 | (109,248 | ) |
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 Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts: |
Year ended 30 September 2023 |
30/9/23 | 1/10/22 |
£ | £ |
Cash and cash equivalents | 28,236 | 61,707 |
Bank overdrafts | ( |
) | ( |
) |
(1,183,391 | ) | (1,415,742 | ) |
Period ended 30 September 2022 |
30/9/22 | 1/4/21 |
(Unaudited) |
£ | £ |
Cash and cash equivalents | 61,707 | 119,940 |
Bank overdrafts | ( |
) | ( |
) |
(1,415,742 | ) | (739,378 | ) |
Kerr's Tyres Limited (Registered number: NI072567) |
Notes to the Statement of Cash Flows |
for the year ended 30 September 2023 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
At 1/10/22 | Cash flow | At 30/9/23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 61,707 | (33,471 | ) | 28,236 |
Bank overdrafts | (1,477,449 | ) | 265,822 | (1,211,627 | ) |
(1,415,742 | ) | (1,183,391 | ) |
Debt |
Finance leases | (618,180 | ) | 92,463 | (525,717 | ) |
Debts falling due within 1 year | (230,820 | ) | (19,180 | ) | (250,000 | ) |
Debts falling due after 1 year | (130,667 | ) | 100,000 | (30,667 | ) |
(979,667 | ) | 173,283 | (806,384 | ) |
Total | (2,395,409 | ) | 405,634 | (1,989,775 | ) |
4. | ACQUISITION OF BUSINESS |
During the period ended 30 September 2022 the company acquired 2 new retail sites, the total cost of goodwill being £236,500. £44,500 (paid in the year ended 31 March 2021 and £192,000 in the period ended 30 September 2022.. |
Kerr's Tyres Limited (Registered number: NI072567) |
Notes to the Financial Statements |
for the year ended 30 September 2023 |
1. | STATUTORY INFORMATION |
Kerr's Tyres Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Goodwill |
The goodwill component of businesses acquired by the Company is amortised on a straight line basis over its estimated useful life of 10 years. |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
Tangible fixed assets |
Improvements to property | - |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
Investments in subsidiaries |
Investments in subsidiary undertakings are recognised at cost. |
Investment property |
Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss. |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date. |
Kerr's Tyres Limited (Registered number: NI072567) |
Notes to the Financial Statements - continued |
for the year ended 30 September 2023 |
2. | ACCOUNTING POLICIES - continued |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position 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. |
Research and development |
Expenditure on research and development is written off in the year in which it is incurred. |
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the statement of financial position date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
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 paid under operating leases are charged to profit or loss 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. |
Going concern |
The Board has assessed its financing requirements for the 12 months from the date of signing the Financial Statements and believes that it has adequate resources to meet its financial obligations and growth plans throughout that period. |
3. | EMPLOYEES AND DIRECTORS |
period |
1/4/21 |
year ended | to |
30/9/23 | 30/9/22 |
(Unaudited) |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
Kerr's Tyres Limited (Registered number: NI072567) |
Notes to the Financial Statements - continued |
for the year ended 30 September 2023 |
3. | EMPLOYEES AND DIRECTORS - continued |
The average number of employees during the year was as follows: |
period |
1/4/21 |
year ended | to |
30/9/23 | 30/9/22 |
(Unaudited) |
Average no of employees |
period |
1/4/21 |
year ended | to |
30/9/23 | 30/9/22 |
(Unaudited) |
£ | £ |
Directors' remuneration |
4. | OPERATING PROFIT/(LOSS) |
During the year the Company received £3,000 of government grants from the Department of the Economy's New Apprenticeship Incentive Scheme. |
5. | INTEREST PAYABLE AND SIMILAR EXPENSES |
period |
1/4/21 |
year ended | to |
30/9/23 | 30/9/22 |
(Unaudited) |
£ | £ |
Bank loan interest |
Other finance interest |
Hire purchase |
Kerr's Tyres Limited (Registered number: NI072567) |
Notes to the Financial Statements - continued |
for the year ended 30 September 2023 |
6. | TAXATION |
Analysis of the tax credit |
The tax credit on the profit for the year was as follows: |
period |
1/4/21 |
year ended | to |
30/9/23 | 30/9/22 |
(Unaudited) |
£ | £ |
Current tax: |
UK corporation tax | ( |
) |
Deferred tax | ( |
) |
Tax on profit/(loss) | ( |
) | ( |
) |
7. | INTANGIBLE FIXED ASSETS |
Goodwill |
£ |
COST |
At 1 October 2022 |
and 30 September 2023 |
AMORTISATION |
At 1 October 2022 |
Amortisation for year |
At 30 September 2023 |
NET BOOK VALUE |
At 30 September 2023 |
At 30 September 2022 |
Kerr's Tyres Limited (Registered number: NI072567) |
Notes to the Financial Statements - continued |
for the year ended 30 September 2023 |
8. | TANGIBLE FIXED ASSETS |
Improvements |
Freehold | to | Plant and |
property | property | machinery |
£ | £ | £ |
COST |
At 1 October 2022 |
Additions |
Disposals |
At 30 September 2023 |
DEPRECIATION |
At 1 October 2022 |
Charge for year |
Eliminated on disposal |
At 30 September 2023 |
NET BOOK VALUE |
At 30 September 2023 |
At 30 September 2022 |
Fixtures |
and | Motor |
fittings | vehicles | Totals |
£ | £ | £ |
COST |
At 1 October 2022 |
Additions |
Disposals | ( |
) | ( |
) |
At 30 September 2023 |
DEPRECIATION |
At 1 October 2022 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
At 30 September 2023 |
NET BOOK VALUE |
At 30 September 2023 |
At 30 September 2022 |
Kerr's Tyres Limited (Registered number: NI072567) |
Notes to the Financial Statements - continued |
for the year ended 30 September 2023 |
9. | FIXED ASSET INVESTMENTS |
Shares in |
group |
undertakings |
£ |
COST |
At 1 October 2022 |
and 30 September 2023 |
NET BOOK VALUE |
At 30 September 2023 |
At 30 September 2022 |
10. | INVESTMENT PROPERTY |
Total |
£ |
FAIR VALUE |
At 1 October 2022 |
and 30 September 2023 |
NET BOOK VALUE |
At 30 September 2023 |
At 30 September 2022 |
11. | STOCKS |
2023 | 2022 |
(Unaudited) |
£ | £ |
Stocks |
12. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
(Unaudited) |
£ | £ |
Trade debtors |
Amounts owed by group undertakings |
Other debtors |
Loan to a connected party | 129,394 | 49,841 |
Directors' current accounts | 85,221 | - |
Deferred tax asset |
Accelerated capital allowances |
Prepayments |
Kerr's Tyres Limited (Registered number: NI072567) |
Notes to the Financial Statements - continued |
for the year ended 30 September 2023 |
13. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
(Unaudited) |
£ | £ |
Bank loans and overdrafts (see note 15) |
Other loans (see note 15) |
Hire purchase contracts (see note 16) |
Trade creditors |
Social security and other taxes |
VAT | 276,432 | 136,363 |
Other creditors |
Credit card | 39,164 | 24,316 |
VAT provision | - | 1,287 |
Deferred consideration |
Accrued expenses |
14. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2023 | 2022 |
(Unaudited) |
£ | £ |
Other loans (see note 15) |
Hire purchase contracts (see note 16) |
Accruals and deferred income |
15. | LOANS |
An analysis of the maturity of loans is given below: |
2023 | 2022 |
(Unaudited) |
£ | £ |
Amounts falling due within one year or on demand: |
Bank overdrafts |
Other loans |
Amounts falling due between one and two years: |
Other loans - 1-2 years | 30,667 |
Amounts falling due between two and five years: |
Other loans - 2-5 years |
Kerr's Tyres Limited (Registered number: NI072567) |
Notes to the Financial Statements - continued |
for the year ended 30 September 2023 |
16. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Hire purchase contracts |
2023 | 2022 |
(Unaudited |
£ | £ |
Net obligations repayable: |
Within one year |
Between one and five years |
Non-cancellable | operating leases |
2023 | 2022 |
(Unaudited) |
£ | £ |
Within one year |
Between one and five years |
In more than five years |
17. | SECURED DEBTS |
The following secured debts are included within creditors: |
2023 | 2022 |
(Unaudited) |
£ | £ |
Hire purchase contracts | 525,717 | 618,180 |
Close Brothers Limited | 1,214,252 | 1,473,575 |
Ulster Bank Limited | 130,667 | 230,667 |
In consideration for providing an invoice discounting facility, Close Brothers Limited have a debenture, ranking behind Ulster Bank, but with priority on trade debtor balances. In addition, there is an uncapped cross guarantee and indemnity between Kerr's Tyres Limited and Kerr's Tyres Ireland Limited, in respect of each Company's facility with Close Brothers Limited. A personal guarantee of £100,000 has also been provided by Mr Norman Kerr, Director, for these borrowings. |
Funds from Ulster Bank Limited are borrowed under the terms of the Coronavirus Business Interruption Loan Scheme (CBILS). The Scheme provides a government-backed, partial guarantee (80%) against the outstanding facility balance. Recoveries are capped at a maximum of 20% of the outstanding balance of the CBILS facility, after the proceeds of business assets have been applied. Security for this loan is a debenture over the Company's assets and undertakings, together with a guarantee from Mr Norman Kerr. |
Kerr's Tyres Limited (Registered number: NI072567) |
Notes to the Financial Statements - continued |
for the year ended 30 September 2023 |
18. | DEFERRED TAX |
£ |
Balance at 1 October 2022 | ( |
) |
Provided during year |
Balance at 30 September 2023 | ( |
) |
19. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary | £1 | 25 | 25 |
20. | OTHER FINANCIAL COMMITMENTS |
The Company has commitments to non-cancelling operating leases as set out in Note 12, being £2,732,079 at 30 September 2023 (2022: £2,941,559). |
Other financial commitments at 30 September 2023 include £312,000 relating to a guarantee to Close Brothers Limited for an invoice discounting facility for a subsidiary company (2022: £312,000). |
21. | RELATED PARTY DISCLOSURES |
The amount owing from a director at 30 September 2023 was £85,221 (2022: nil). |
The Company has advanced funds to a company under common ownership during the year. At 30 September 2023 the balance outstanding was £129,394 (2022: £49,841). The amount is repayable upon demand and there has been no interest charged. |