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REGISTERED NUMBER: NI072567 (Northern Ireland)












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: Mr N Kerr
Mr S Warnock
Mr W S M Cairns



SECRETARY: Mr N Kerr



REGISTERED OFFICE: 1 Massereene Business Park
Antrim
Co. Antrim
BT41 4FS



REGISTERED NUMBER: NI072567 (Northern Ireland)



SENIOR STATUTORY AUDITOR: Peter Stevenson



AUDITORS: Stevenson and Wilson
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:





Mr N Kerr - Director


22 November 2023

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.

Mr N Kerr
Mr S Warnock
Mr W S M Cairns

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:




Mr N Kerr - Director


22 November 2023

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.




Peter Stevenson (Senior Statutory Auditor)
for and on behalf of Stevenson and Wilson
22-30 Broadway Avenue
Ballymena
BT43 7AA

22 November 2023

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 14,775,119 19,335,500

Cost of sales 11,910,937 16,791,843
GROSS PROFIT 2,864,182 2,543,657

Administrative expenses 2,335,163 3,114,810
529,019 (571,153 )

Other operating income 44,270 21,075
OPERATING PROFIT/(LOSS) 4 573,289 (550,078 )


Interest payable and similar expenses 5 214,666 221,400
PROFIT/(LOSS) BEFORE TAXATION 358,623 (771,478 )

Tax on profit/(loss) 6 (41,567 ) (161,914 )
PROFIT/(LOSS) FOR THE FINANCIAL
YEAR

400,190

(609,564

)

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 400,190 (609,564 )


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

400,190

(609,564

)

Kerr's Tyres Limited (Registered number: NI072567)

Statement of Financial Position
30 September 2023

2023 2022
(Unaudited)
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 7 177,375 201,025
Tangible assets 8 1,126,908 1,216,041
Investments 9 85 85
Investment property 10 523,125 523,125
1,827,493 1,940,276

CURRENT ASSETS
Stocks 11 1,007,095 1,058,237
Debtors 12 2,845,832 3,087,777
Cash at bank and in hand 28,236 61,707
3,881,163 4,207,721
CREDITORS
Amounts falling due within one year 13 4,911,000 5,524,557
NET CURRENT LIABILITIES (1,029,837 ) (1,316,836 )
TOTAL ASSETS LESS CURRENT
LIABILITIES

797,656

623,440

CREDITORS
Amounts falling due after more than one
year

14

370,715

596,689
NET ASSETS 426,941 26,751

CAPITAL AND RESERVES
Called up share capital 19 25 25
Share premium 399,995 399,995
Retained earnings 26,921 (373,269 )
SHAREHOLDERS' FUNDS 426,941 26,751

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





Mr N Kerr - Director


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 5 236,295 - 236,300

Changes in equity
Issue of share capital 20 - 399,995 400,015
Total comprehensive income - (609,564 ) - (609,564 )
Balance at 30 September 2022 25 (373,269 ) 399,995 26,751

Changes in equity
Total comprehensive income - 400,190 - 400,190
Balance at 30 September 2023 25 26,921 399,995 426,941

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 1 960,067 625,784
Interest paid (172,848 ) (146,455 )
Interest element of hire purchase payments
paid

(41,818

)

(74,945

)
Tax paid 86,826 5,991
Net cash from operating activities 832,227 410,375

Cash flows from investing activities
Purchase of intangible fixed assets - (192,000 )
Purchase of tangible fixed assets (223,920 ) (819,311 )
Purchase of investment property - (523,125 )
Sale of tangible fixed assets 976 199,714
Net cash from investing activities (222,944 ) (1,334,722 )

Cash flows from financing activities
Loan repayments in year (80,820 ) (281,834 )
Capital repayments in year (92,463 ) (29,133 )
Amount introduced by directors - 572,966
Amount withdrawn by directors (85,221 ) (600,257 )
Share issue - 40
Share buyback - 399,995
Advanced to subsidiary company (38,875 ) (184,474 )
Advanced to connected company (79,553 ) 370,680
Net cash from financing activities (376,932 ) 247,983

Increase/(decrease) in cash and cash equivalents 232,351 (676,364 )
Cash and cash equivalents at beginning of
year

2

(1,415,742

)

(739,378

)

Cash and cash equivalents at end of year 2 (1,183,391 ) (1,415,742 )

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 358,623 (771,478 )
Depreciation charges 336,703 505,909
Profit on disposal of fixed assets (976 ) (65,079 )
Finance costs 214,666 221,400
909,016 (109,248 )
Decrease in stocks 51,142 525,301
Decrease/(increase) in trade and other debtors 400,335 (954,726 )
(Decrease)/increase in trade and other creditors (400,426 ) 1,164,457
Cash generated from operations 960,067 625,784

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 (1,211,627 ) (1,477,449 )
(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 (1,477,449 ) (859,318 )
(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 ) 232,351 (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 private company, limited by shares , registered in Northern Ireland. The company's registered number and registered office address can be found on the Company Information page.

2. ACCOUNTING POLICIES

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

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
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Improvements to property - 10% on cost
Plant and machinery - 10% on cost
Fixtures and fittings - 10% on cost
Motor vehicles - 20% on cost

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 2,848,808 3,756,199
Social security costs 262,667 355,970
Other pension costs 46,110 56,917
3,157,585 4,169,086

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 93 89

period
1/4/21
year ended to
30/9/23 30/9/22
(Unaudited)
£    £   
Directors' remuneration 100,608 256,032

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 11,925 27,174
Other finance interest 160,923 119,281
Hire purchase 41,818 74,945
214,666 221,400

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 (86,826 ) -

Deferred tax 45,259 (161,914 )
Tax on profit/(loss) (41,567 ) (161,914 )

7. INTANGIBLE FIXED ASSETS
Goodwill
£   
COST
At 1 October 2022
and 30 September 2023 1,046,501
AMORTISATION
At 1 October 2022 845,476
Amortisation for year 23,650
At 30 September 2023 869,126
NET BOOK VALUE
At 30 September 2023 177,375
At 30 September 2022 201,025

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 19,913 233,547 1,118,358
Additions 16,410 5,692 12,963
Disposals - - -
At 30 September 2023 36,323 239,239 1,131,321
DEPRECIATION
At 1 October 2022 1,357 105,943 596,318
Charge for year 3,632 19,584 85,201
Eliminated on disposal - - -
At 30 September 2023 4,989 125,527 681,519
NET BOOK VALUE
At 30 September 2023 31,334 113,712 449,802
At 30 September 2022 18,556 127,604 522,040

Fixtures
and Motor
fittings vehicles Totals
£    £    £   
COST
At 1 October 2022 298,593 1,009,033 2,679,444
Additions 31,044 157,811 223,920
Disposals - (159,885 ) (159,885 )
At 30 September 2023 329,637 1,006,959 2,743,479
DEPRECIATION
At 1 October 2022 122,898 636,887 1,463,403
Charge for year 28,649 175,987 313,053
Eliminated on disposal - (159,885 ) (159,885 )
At 30 September 2023 151,547 652,989 1,616,571
NET BOOK VALUE
At 30 September 2023 178,090 353,970 1,126,908
At 30 September 2022 175,695 372,146 1,216,041

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 85
NET BOOK VALUE
At 30 September 2023 85
At 30 September 2022 85

10. INVESTMENT PROPERTY
Total
£   
FAIR VALUE
At 1 October 2022
and 30 September 2023 523,125
NET BOOK VALUE
At 30 September 2023 523,125
At 30 September 2022 523,125

11. STOCKS
2023 2022
(Unaudited)
£    £   
Stocks 1,007,095 1,058,237

12. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
(Unaudited)
£    £   
Trade debtors 2,010,442 2,426,002
Amounts owed by group undertakings 342,188 303,313
Other debtors 176,783 182,336
Loan to a connected party 129,394 49,841
Directors' current accounts 85,221 -
Deferred tax asset
Accelerated capital allowances 37,460 82,719
Prepayments 64,344 43,566
2,845,832 3,087,777

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) 1,211,627 1,477,449
Other loans (see note 15) 250,000 230,820
Hire purchase contracts (see note 16) 247,169 222,658
Trade creditors 2,629,642 3,279,745
Social security and other taxes 154,876 62,485
VAT 276,432 136,363
Other creditors 71,265 33,532
Credit card 39,164 24,316
VAT provision - 1,287
Deferred consideration 9,000 9,000
Accrued expenses 21,825 46,902
4,911,000 5,524,557

14. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
2023 2022
(Unaudited)
£    £   
Other loans (see note 15) 30,667 130,667
Hire purchase contracts (see note 16) 278,548 395,522
Accruals and deferred income 61,500 70,500
370,715 596,689

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 1,211,627 1,477,449
Other loans 250,000 230,820
1,461,627 1,708,269

Amounts falling due between one and two years:
Other loans - 1-2 years 30,667 100,000

Amounts falling due between two and five years:
Other loans - 2-5 years - 30,667

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 247,169 222,658
Between one and five years 278,548 395,522
525,717 618,180

Non-cancellable operating leases
2023 2022
(Unaudited)
£    £   
Within one year 393,984 379,907
Between one and five years 1,496,926 2,261,981
In more than five years 841,169 299,671
2,732,079 2,941,559

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
1,870,636 2,322,422

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 (82,719 )
Provided during year 45,259
Balance at 30 September 2023 (37,460 )

19. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
25 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.