Registered number:
FOR THE YEAR ENDED 31 DECEMBER 2022
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STEVEN EAGELL HOLDINGS LIMITED
COMPANY INFORMATION
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STEVEN EAGELL HOLDINGS LIMITED
CONTENTS
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STEVEN EAGELL HOLDINGS LIMITED
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022
The directors present their report for Steven Eagell Holdings Limited ("the Company") and its subsidiaries ("the Group") for the year ended 31 December 2021.
The Group's primary business activities for 2022 were the sale of new, used and commercial vehicles as well as the servicing and repairs of those vehicles and the supply of spare parts.
2022 saw record turnover, gross profit and pre-tax net profit being achieved. Turnover for 2022 was £841m, up from £703m in 2021 which represents an increase of 20%, whilst the gross profit for 2022 was £124m, up from £104m in 2021, an increase of 18%. Operating profit was at a record level of £30.1m which represents a 12% increase from 2021. The Board are extremely pleased with this performance. The board feels that the Group has achieved a resilient performance with only one third of profits attributed to the sale of new cars and the rest to used car sales and aftersales. In July 2022, the Group purchased Toyota Oxford from Inchcape Retail Limited, this site is performing in line with expectations. In June 2023, 12 dealerships were acquired from Marshall Motor Group comprising of two territories; West Midlands (4 Toyota sites; Hereford, Worcester, Bromsgrove and Stourbridge) & Kent and Sussex (5 Toyota sites; Horsham, Ashford, Gatwick, Tunbridge Wells, Canterbury. 3 Lexus sites; Lexus Canterbury, Lexus Gatwick and Lexus Tunbridge Wells). These established businesses have been successfully integrated into the Group’s portfolio with very promising early signs. Toyota's Retail Transformation Programme continues, with investment in new showroom upgrades which includes more digital content and new external signage deployment.
Product cycle risk
As all vehicles move through their natural life cycle, the group's ability to maintain adequate margins can be impaired. In order to minimise any impact, the Group is looking into the development of a broad base of income sources from used vehicle sales, accident repair, service repair and parts sales.
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STEVEN EAGELL HOLDINGS LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
The markets in which the Group operates are highly competitive and there is a risk that customers may seek alternative sources for the products and services offered by the Group. The Group is mitigating this risk by continually seeking to build a strong reputation for extremely high levels of customer service. The Group continues to monitor competitor activity, customer satisfaction and customer feedback.
The Group invests heavily in staff training and skills development, including apprenticeships, management development programmes and continuous training and coaching. Manufacturing supply of new vehicles The Group is reliant on new vehicle products from its manufacturer partners. This may expose the Group to risks in several areas in respect of: - Availability of new vehicle products - Quality of new vehicle products - Pricing of new vehicle products. The Board are confident that future new products will continue to be competitively priced and of high quality. Therefore, this potential "risk" is minimal. It is also mitigated by other core business areas of the Group, including used vehicle sales, service work and parts sales. Stock value risk The Group is exposed, as are all businesses in this industry, to the risk of its value of stock falling, due to general economic or industry specific factors. The Group mitigates this risk through ensuring it only carries stock of a suitable profile and operates an aged stock policy. The Group also makes a monthly provision in the Profit & Loss account for all stock over 90 days.
2022 saw record turnover, gross profit and pre-tax net profit being achieved.
Turnover for 2022 was £841m, up from £703m in 2021 which represents an increase of 20%, whilst the gross profit for 2022 was £124m, up from £104m in 2021, an increase of 18%.
The business produces internal management information on a monthly basis which includes key performance indicators.
Some of these measures are profit per unit sold, customer satisfaction score and profit per branch. These are benchmarked against upper quartile and similar businesses within the same sector. These are reviewed monthly by the Board, along with local management, and any necessary performance improvement changes are swiftly introduced. Staff retention and employee feedback is monitored closely as they are considered a major asset of the Group.
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STEVEN EAGELL HOLDINGS LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
When making decisions, the directors consider what is likely to lead to the success of the Group and to be of benefit to the members as a whole over the long term. When making such decisions, the directors also consider the interests of other key stakeholder groups and seek to arrive at conclusions which do not adversely impact those groups as a whole. For the purposes of decision making, the directors have identified key stakeholder groups, have evaluated their interests, and describe in the Directors' Report how they have engaged with and responded to the interests of those stakeholders during the year. The areas in the Directors' Report demonstrate the Board's commitment to maintaining high standards of business conduct and professionalism.
This report was approved by the board and signed on its behalf.
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STEVEN EAGELL HOLDINGS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022
The directors present their report and the financial statements for the year ended 31 December 2022.
The directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 the Group and of the profit or loss of the Group for that period.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Group's financial statements and then apply them consistently;
∙make judgments and accounting estimates that are reasonable and prudent;
∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group 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 the Group and to 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 the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The profit for the year, after taxation, amounted to £23,498,000 (2021 - £20,676,000.
Dividends of £12,774,000 (2021: £8,694,000) were paid in the year. The directors do not recommend a final dividend.
The directors who served during the year were:
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STEVEN EAGELL HOLDINGS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
The Group places significant emphasis on its employees' involvement in the business at all levels. Managers are remunerated according to results wherever possible and all employees are kept informed of issues affecting the Group through formal and informal meetings. Members of the management team regularly visit all Group locations and discuss matters of current interest and concem with employees.
The key aims of engagement with employees are to: • Provide a safe working environment. • Encourage them to be part of a successful and secure organisation, which is achieved by a) promoting diversity within the workplace and b) maintaining a friendly working environment, with organisation values and working policies. • Provide adequate training to staff to ensure they are well equipped to fulfil their roles.
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STEVEN EAGELL HOLDINGS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
Customers
• Dealing with a trusted organisation and maintaining a relationship over the longer term. • Dealing with knowledgeable staff and receiving balanced advice when purchasing a vehicle or for after sales care. • Obtaining good value for money. • Having clarity over the pricing of vehicles and additional products and services. This is achieved by: a). Obtaining frequent customer satisfaction surveys. b). Monitoring customer complaints and addressing any common themes that may arise. c). Maintaining strong manufacturer relationships to deliver the best value for money to customers. Suppliers • Prompt, clear and regular communication with manufacturers. • Developing an open and collaborative relationship. This is achieved by: a). Maintaining strong manufacturer relationships through regular meetings with senior management. b). Long term partnerships with manufacturers whose principles are aligned with our own. Communities • Delivery of employment opportunities. This is achieved by providing direct employment to over 1,000 employees. Funders • Maintaining open, longstanding and strong relationships with funders. This is achieved by: a). Maintaining strong relationships through regular meetings with senior management. b). Strong day-to-day working relationships with the operational staff.
Shareholders
• Strong return on investment and continued growth • Financial discipline and strong internal controls. This is achieved by: a). Regular board meetings where periodic financials are presented. b). Clear and transparent annual reporting.
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STEVEN EAGELL HOLDINGS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
This section includes our mandatory reporting of energy and greenhouse gas emissions for the period 1
January 2022 to 31 December 2022, pursuant to the Companies (Directors’ Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018, implementing the government’s Streamlined Energy and Carbon Reporting (SECR) policy. Our methodology to calculate our greenhouse gas emissions is based on the 'Environmental Reporting Guidelines: Including streamlined energy and carbon reporting guidance (March 2019)’ issued by DEFRA, using DEFRA's 2021 and 2022 conversion factors as appropriate. In some cases, consumption has been extrapolated from available data or direct comparison made to a comparable period. We report using a financial control approach to define our organisational boundary. We have reported all material emission sources required by the regulations for which we deem ourselves to be responsible and have maintained records of all source data and calculations. During the reporting period we’ve continued to monitor and regularly review gas and electricity consumption across the group, with the majority of sites receiving targeted consumption reports on a daily basis. The table below includes total energy consumption (reported as kWh) and greenhouse gas emissions for the sources required by the regulations, along with our intensity ratio.
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STEVEN EAGELL HOLDINGS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
In June 2023 the Group acquired 12 dealerships from Marshall Motor Group, with revenue anticipated to rise to over £1bn in 2023 with the new dealerships included for the final 6 months of the year.
The auditors, Haysmacintyre LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
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STEVEN EAGELL HOLDINGS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF STEVEN EAGELL HOLDINGS LIMITED
We have audited the financial statements of Steven Eagell Holdings Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 2022, which comprise the Consolidated Statement of Comprehensive Income, the Consolidated Statement of Financial Position, the Company Statement of Financial Position, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity and the related notes, 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).
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 Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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.
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 Group's or the parent 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.
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STEVEN EAGELL HOLDINGS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF STEVEN EAGELL HOLDINGS LIMITED (CONTINUED)
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' 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.
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Group Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Group Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Directors' Report.
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STEVEN EAGELL HOLDINGS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF STEVEN EAGELL HOLDINGS LIMITED (CONTINUED)
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 Auditors' 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 Group 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:
We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries to revenue and management bias in accounting estimates. Audit procedures performed by the engagement team included: - Discussions with management including consideration of known or suspected instances of non-compliance with laws and regulation and fraud; - Identifying and testing journals, in particular journal entries posted by management that were inconsistent with unusual account combinations and those around the year end; - Evaluating management's controls designed to prevent and detect irregularities; - Challenging assumptions and judgements made by management in their critical accounting estimates.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
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 Auditors' Report.
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STEVEN EAGELL HOLDINGS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF STEVEN EAGELL HOLDINGS LIMITED (CONTINUED)
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 Auditors' 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.
for and on behalf of
Statutory Auditors
10 Queen Street Place
EC4R 1AG
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STEVEN EAGELL HOLDINGS LIMITED
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2022
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STEVEN EAGELL HOLDINGS LIMITED
REGISTERED NUMBER: 11921237
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2022
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 20 to 40 form part of these financial statements.
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STEVEN EAGELL HOLDINGS LIMITED
REGISTERED NUMBER: 11921237
COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2022
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The parent Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements. The profit after tax of the parent Company for the period was £12,774,457 (2021: £14,700,000).
The notes on pages 20 to 40 form part of these financial statements.
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STEVEN EAGELL HOLDINGS LIMITED
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022
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STEVEN EAGELL HOLDINGS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022
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STEVEN EAGELL HOLDINGS LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2022
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STEVEN EAGELL HOLDINGS LIMITED
CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 DECEMBER 2022
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STEVEN EAGELL HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
Steven Eagell Holdings Limited is a company limited by share capital and registered in England and Wales. The Company's registered office is 10 Queen Street Place, London, EC4R 1AG. The Company's principal place of business is Power House, Harrison Close, Knowlhill, Milton Keynes, Buckinghamshire, MK5 8PA.
2.Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgment in applying the Group's accounting policies (see note 3).
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements.
The following principal accounting policies have been applied:
The consolidated financial statements include the results of Steven Eagell Holdings Limited and all its subsidiary undertakings made up to the same accounting date. All intra-Group balances, transactions, income and expenses are eliminated in full on consolidation. The results of subsidiary undertakings acquired or disposed of during the period are included or excluded from the Income Statement from the effective date of acquisition or disposal.
The directors assess whether the use of the going concern basis is appropriate for the preparation of the financial statements.
It has been ensured that the Group is in a strong cash position and given the expectation of improved profits in 2023 over 2022 and, having reviewed cash flow forecasts for twelve months from the date of these financial statements, the directors have concluded that the Group has sufficient resources available to meet its liabilities as they fall due. These financial statements have, therefore, been prepared on a going concern basis.
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STEVEN EAGELL HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
2.Accounting policies (continued)
Commissions receivable for arranging vehicle financing and related insurance products are included in revenue. Manufacturer bonuses are considered a reduction in the cost of vehicles sold, and hence are credited against cost of sales in the Consolidated Statement of Comprehensive Income. During the year the Group received grants of £Nil (2021: £1,548,000) in relation to the Coronavirus Job Retention Scheme. These grants were recognised in the Income Statement, within Other Operating Income, in the same period as the related staff costs expenditure. There are no unfulfilled conditions in relation to these grants.
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STEVEN EAGELL HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
2.Accounting policies (continued)
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STEVEN EAGELL HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
2.Accounting policies (continued)
Goodwill
Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight line basis to the Statement of Comprehensive Income over its useful economic life. Other intangible assets Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.
The estimated useful lives range as follows:
Intangible assets are being amortised over 10 years as this reflects their expected estimated useful life.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
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STEVEN EAGELL HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
2.Accounting policies (continued)
Provisions are charged as an expense to profit or loss in the year that the Group becomes aware of the obligation, and are measured at the best estimate at the reporting date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties. When payments are eventually made, they are charged to the provision carried in the Statement of Financial Position.
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STEVEN EAGELL HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
2.Accounting policies (continued)
The Group 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 Group's Statement of Financial Position when the Group 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 trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.
Discounting is omitted where the effect of discounting is immaterial. The Group's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.
Other financial assets
Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.
Impairment of financial assets
Financial assets are assessed for indicators of impairment at each reporting date.
Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.
If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.
Financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instruments any contract that evidences a residual interest in the assets of the Group after the deduction of all its liabilities.
Basic financial liabilities, which include trade and other payables, bank loans, other loans and loans
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STEVEN EAGELL HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
2.Accounting policies (continued)
due to fellow group companies are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.
Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.
Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.
Derecognition of financial assets
Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Group transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Group will continue to recognise the value of the portion of the risks and rewards retained.
Derecognition of financial liabilities
Financial liabilities are derecognised when the Group's contractual obligations expire or are discharged or cancelled.
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STEVEN EAGELL HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
Stock The directors consider the valuation of stock to be a critical estimate and judgement applicable to the financial statements. Valuation of intangible assets When a business combination takes place, the Group is required to assess whether there are any additional intangible assets arising separately from goodwill. Management judgement is required to determine whether an intangible asset can be separately identified, what fair value should be ascribed to the asset and its attributable useful life. Estimated useful life of intangibles, property, plant and equipment and impairment testing The Group estimates the useful life and residual values of intangible assets, property, plant and equipment and reviews these estimates at each financial year end. The Group also tests for impairment when a trigger event occurs, or annually, as appropriate.
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STEVEN EAGELL HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
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STEVEN EAGELL HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
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STEVEN EAGELL HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
11.Taxation (continued)
The main rate of corporation tax in the UK increased from 19% to 25% from 1 April 2023.
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STEVEN EAGELL HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
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STEVEN EAGELL HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
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STEVEN EAGELL HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
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STEVEN EAGELL HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
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STEVEN EAGELL HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
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STEVEN EAGELL HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
23.Share capital (continued)
Profit and loss account
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STEVEN EAGELL HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
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STEVEN EAGELL HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
25.Business combinations (continued)
The Group operates a defined contribution pension scheme. Contributions are paid to life companies, the assets of which are held separately from those of the Group in an independently administered fund. The pension cost charge represents contributions payable by the Group to the funds and amounted to £1,236,700 (2021: £1,120,000). An amount of £196,469 was outstanding as at the date of the Statement of Financial Position (2021: £NIL).
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STEVEN EAGELL HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
S.M. Eagell is considered to be the ultimate controlling party.
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