REGISTERED NUMBER: 05036315 (England and Wales) |
Group Strategic Report, Report of the Directors and |
Consolidated Financial Statements |
for the Year Ended 31 March 2023 |
for |
Sema Lease UK Limited |
REGISTERED NUMBER: 05036315 (England and Wales) |
Group Strategic Report, Report of the Directors and |
Consolidated Financial Statements |
for the Year Ended 31 March 2023 |
for |
Sema Lease UK Limited |
Sema Lease UK Limited (Registered number: 05036315) |
Contents of the Consolidated Financial Statements |
for the Year Ended 31 March 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 6 |
Consolidated Income Statement | 10 |
Consolidated Other Comprehensive Income | 11 |
Consolidated Balance Sheet | 12 |
Company Balance Sheet | 13 |
Consolidated Statement of Changes in Equity | 14 |
Company Statement of Changes in Equity | 15 |
Consolidated Cash Flow Statement | 16 |
Notes to the Consolidated Cash Flow Statement | 17 |
Notes to the Consolidated Financial Statements | 19 |
Sema Lease UK Limited |
Company Information |
for the Year Ended 31 March 2023 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Eldo House |
Kempson Way |
Suffolk Business Park |
Bury St Edmunds |
Suffolk |
IP32 7AR |
Sema Lease UK Limited (Registered number: 05036315) |
Group Strategic Report |
for the Year Ended 31 March 2023 |
The directors present their strategic report of the company and the group for the year ended 31 March 2023. |
REVIEW OF BUSINESS |
The company has continued with the replacement of the fleet and now looking to increase this as supply constraints ease. It has also been successful in securing the renewal of existing funding lines and raising additional new funding which will hopefully be reflected in an increase in the number of vehicles available to the company for leasing. |
The company has maintained strong relationships with a number of the smaller rental companies that are now termed as long term partners and in addition increased its focus on corporate and individual clients. |
KEY PERFORMANCE INDICATORS |
The directors consider that the key financial performance indicators for the business are turnover, gross profit and pre-tax profit, as outlined below: |
2023 | 2022 |
£ | £ |
Turnover | 22,470,476 | 21,557,768 |
Gross Profit | 4,692,211 | 3,845,065 |
Net profit/(loss) before tax | 2,190,827 | 1,491,042 |
Turnover increased by 4.2% (2022 - decreased by 6.2%) and gross profit increased by 22% (2022 - increased by 411.8%), with an increase in the gross profit margin from 17.8% to 20.9%. |
Following on from the difficulties all leasing companies faced with the pandemic, Brexit and microchip issues the business is now on a firm footing and despite increasing interest rates it is now looking forward to increasing the size of the fleet whilst building relationships with new and existing funding partners. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The directors have assessed the major risks facing the company. They are considered to be the normal commercial and operational risks associated with a vehicle leasing business including the funding of future vehicle leases and residual value predictions. |
Funding for the business is provided from a variety of sources and these are all reviewed as they fall due. Additional funding is also being secured and these facilities will provide sufficient funding to enable the company to grow its vehicle fleet size. |
Disposal proceeds continue to be in excess of residual values, which are always under constant review with each and every batch of vehicles funded. The business relies very much on its own disposal experience as well as industry standard data to predict future values. |
Interest Rate Risk |
The business considers the level of risk exposure on all debt transactions and takes necessary steps to reduce risk to an acceptable level. For significant obligations the company seeks to arrange fixed rate finance where possible in order to mitigate interest rate risk. |
Credit Rate and Liquidity Risk |
The company has policies in place to ensure transactions are entered into only with parties that are of acceptable credit quality. The company ensures that there are adequate funds available through credit facilities to meet operational requirements of the business. |
Sema Lease UK Limited (Registered number: 05036315) |
Group Strategic Report |
for the Year Ended 31 March 2023 |
FINANCIAL INSTRUMENTS |
The financial instruments used by the company arise wholly and directly from its activities. The financial instruments comprise trade debtors, cash at bank, trade creditors and a loan note programme for financing the vehicle fleet. The company has put in place the following measures in order to manage financial risks arising from these financial instruments: |
1. The company regularly monitors the level of debtors to ensure that they are kept at reasonable levels and within a predetermined strict credit limit. |
2. The company carefully manages its cash position by regularly monitoring its cash flow and with the use of deposit accounts. |
3. The company regularly monitors the trade balance and credit terms for all suppliers. |
FUTURE DEVELOPMENTS |
The directors' plan for the forthcoming year are to continue to source additional funding lines in order to increase the fleet size and continue improving the quality of customer and the retained margins of each unit on lease. |
ON BEHALF OF THE BOARD: |
Sema Lease UK Limited (Registered number: 05036315) |
Report of the Directors |
for the Year Ended 31 March 2023 |
The directors present their report with the financial statements of the company and the group for the year ended 31 March 2023. |
PRINCIPAL ACTIVITY |
The principal activity of the group in the year under review was that of short to medium leasing of cars and light vans. This also encompasses the disposal of vehicles at the end of their lease term. The principal activity of the subsidiary continued to be the sale of new and used motor vehicles, servicing and maintenance of vehicles and the supply of parts and accessories. |
DIVIDENDS |
The total distribution of interim dividends for the year ended 31 March 2023 will be £850,000. No final dividend has been declared. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 April 2022 to the date of this report. |
POLITICAL DONATIONS AND EXPENDITURE |
Donations for the year amounted to £3,333 (2022: £2,479). These relate to donations to local and national charities. There were no political donations. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group 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 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 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group 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 group'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 group's auditors are aware of that information. |
Sema Lease UK Limited (Registered number: 05036315) |
Report of the Directors |
for the Year Ended 31 March 2023 |
AUDITORS |
The auditors, Knights Lowe Limited, 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 |
Sema Lease UK Limited |
Opinion |
We have audited the financial statements of Sema Lease UK Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2023 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the group's and of the parent company affairs as at 31 March 2023 and of the group's 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 group 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 group's and 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. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Group 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 Group 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 Group 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 |
Sema Lease UK Limited |
Matters on which we are required to report by exception |
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 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company 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 four, 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 group's and the parent 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 group or the parent company or to cease operations, or have no realistic alternative but to do so. |
Report of the Independent Auditors to the Members of |
Sema Lease UK Limited |
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 misstatement in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities including fraud is detailed below: |
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows: |
- 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; |
- we identified the laws and regulations applicable to the company through discussions with the director and other management, and from our commercial knowledge and experience of the companies operating sector; |
- 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, taxation legislation, data protection, anti-bribery, employment, environmental and health and safety legislation; |
- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and |
- identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. |
We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: |
- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; |
- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. |
To address the risk of fraud through management bias and override of controls, we: |
- performed analytical procedures to identify any unusual or unexpected relationships; |
- tested journal entries to identify unusual transactions; |
- assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; |
- investigated the rationale behind significant or unusual transactions; and |
- investigated the company's valuation of stock and in particular that of used car stock for sale which does make up a majority of the company's stock value and is subject to a level of judgement; |
- ensured that bad debts were adequately provided for in the financial statements. There are a number of potential doubtful debts. |
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: |
- agreeing financial statement disclosures to underlying supporting documentation; |
- reading the minutes of meetings of those charged with governance; |
- enquiring of management as to actual and potential litigation and claims; |
- reviewing correspondence with HMRC and the company's legal advisors. |
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. |
Report of the Independent Auditors to the Members of |
Sema Lease UK Limited |
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Eldo House |
Kempson Way |
Suffolk Business Park |
Bury St Edmunds |
Suffolk |
IP32 7AR |
Sema Lease UK Limited (Registered number: 05036315) |
Consolidated |
Income Statement |
for the Year Ended 31 March 2023 |
2023 | 2022 |
as restated |
Notes | £ | £ |
TURNOVER | 4 | 22,470,476 | 21,557,768 |
Cost of sales | 17,778,265 | 17,712,703 |
GROSS PROFIT | 4,692,211 | 3,845,065 |
Administrative expenses | 1,252,450 | 1,730,186 |
3,439,761 | 2,114,879 |
Other operating income | 3,110 | 284,647 |
OPERATING PROFIT | 6 | 3,442,871 | 2,399,526 |
Interest receivable and similar income | 8 | 40,128 | 31,360 |
3,482,999 | 2,430,886 |
Interest payable and similar expenses | 9 | 1,292,172 | 939,844 |
PROFIT BEFORE TAXATION | 2,190,827 | 1,491,042 |
Tax on profit | 10 | 347,642 | 523,964 |
PROFIT FOR THE FINANCIAL YEAR |
Profit attributable to: |
Owners of the parent | 1,843,185 | 967,078 |
Sema Lease UK Limited (Registered number: 05036315) |
Consolidated |
Other Comprehensive Income |
for the Year Ended 31 March 2023 |
2023 | 2022 |
as restated |
Notes | £ | £ |
PROFIT FOR THE YEAR | 1,843,185 | 967,078 |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
1,843,185 |
967,078 |
Note |
Prior year adjustment | 13 | (702,567 | ) |
TOTAL COMPREHENSIVE INCOME SINCE LAST ANNUAL REPORT |
1,140,618 |
Total comprehensive income attributable to: |
Owners of the parent | 1,140,618 | 967,078 |
Sema Lease UK Limited (Registered number: 05036315) |
Consolidated Balance Sheet |
31 March 2023 |
2023 | 2022 | 2021 |
as restated |
Notes | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 14 | - | - | 12,232 |
Tangible assets | 15 | 18,341,531 | 22,017,539 | 17,295,026 |
Investments | 16 | - | - | - |
18,341,531 | 22,017,539 | 17,307,258 |
CURRENT ASSETS |
Stocks | 17 | 473,631 | 706,301 | 802,268 |
Debtors | 18 | 6,076,008 | 7,282,258 | 9,736,860 |
Cash at bank and in hand | 2,642,103 | 1,835,241 | 1,328,058 |
9,191,742 | 9,823,800 | 11,867,186 |
CREDITORS |
Amounts falling due within one year | 19 | (12,948,495 | ) | (18,075,710 | ) | (16,421,094 | ) |
NET CURRENT LIABILITIES | (3,756,753 | ) | (8,251,910 | ) | (4,553,908 | ) |
TOTAL ASSETS LESS CURRENT LIABILITIES | 14,584,778 | 13,765,629 | 12,753,350 |
CREDITORS |
Amounts falling due after more than one year |
20 |
(6,453,803 |
) |
(6,536,284 |
) |
(6,792,825 |
) |
PROVISIONS FOR LIABILITIES | 24 | (818,770 | ) | (910,325 | ) | (386,361 | ) |
NET ASSETS | 7,312,205 | 6,319,020 | 5,574,164 |
CAPITAL AND RESERVES |
Called up share capital | 25 | 1,000 | 1,000 | 1,000 |
Retained earnings | 7,311,205 | 6,318,020 | 5,573,164 |
SHAREHOLDERS' FUNDS | 7,312,205 | 6,319,020 | 5,574,164 |
The financial statements were approved by the Board of Directors and authorised for issue on 31 October 2023 and were signed on its behalf by: |
G J Balaam - Director |
Sema Lease UK Limited (Registered number: 05036315) |
Company Balance Sheet |
31 March 2023 |
2023 | 2022 | 2021 |
as restated |
Notes | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 14 |
Tangible assets | 15 |
Investments | 16 |
CURRENT ASSETS |
Stocks | 17 |
Debtors | 18 | 10,613,577 |
Cash at bank and in hand |
12,453,893 |
CREDITORS |
Amounts falling due within one year | 19 | ( |
) | ( |
) | ( |
) |
NET CURRENT LIABILITIES | ( |
) | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
20 |
( |
) |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 24 | ( |
) | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 25 | 1,000 | 1,000 | 1,000 |
Retained earnings | 8,258,103 | 7,298,280 | 6,531,676 |
SHAREHOLDERS' FUNDS | 8,259,103 | 7,299,280 | 6,532,676 |
Company's profit for the financial year | 1,809,823 | 988,826 |
The financial statements were approved by the Board of Directors and authorised for issue on |
Sema Lease UK Limited (Registered number: 05036315) |
Consolidated Statement of Changes in Equity |
for the Year Ended 31 March 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 April 2021 | 1,000 | 5,573,164 | 5,574,164 |
Changes in equity |
Dividends | - | (222,222 | ) | (222,222 | ) |
Total comprehensive income | - | 1,669,645 | 1,669,645 |
Balance at 31 March 2022 | 1,000 | 7,020,587 | 7,021,587 |
Prior year adjustment | - | (702,567 | ) | (702,567 | ) |
As restated | 1,000 | 6,318,020 | 6,319,020 |
Changes in equity |
Dividends | - | (850,000 | ) | (850,000 | ) |
Total comprehensive income | - | 1,843,185 | 1,843,185 |
Balance at 31 March 2023 | 1,000 | 7,311,205 | 7,312,205 |
Sema Lease UK Limited (Registered number: 05036315) |
Company Statement of Changes in Equity |
for the Year Ended 31 March 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 April 2021 | 1,000 | 6,531,676 | 6,532,676 |
Changes in equity |
Dividends | - | (222,222 | ) | (222,222 | ) |
Total comprehensive income | - | 1,691,393 | 1,691,393 |
Balance at 31 March 2022 | 1,000 | 8,000,847 | 8,001,847 |
Prior year adjustment | - | (702,567 | ) | (702,567 | ) |
As restated | 1,000 | 7,298,280 | 7,299,280 |
Changes in equity |
Dividends | - | (850,000 | ) | (850,000 | ) |
Total comprehensive income | - | 1,809,823 | 1,809,823 |
Balance at 31 March 2023 | 1,000 | 8,258,103 | 8,259,103 |
Sema Lease UK Limited (Registered number: 05036315) |
Consolidated Cash Flow Statement |
for the Year Ended 31 March 2023 |
2023 | 2022 |
as restated |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 6,807,808 | 8,333,821 |
Interest paid | (809,654 | ) | (728,588 | ) |
Interest element of hire purchase payments paid |
(482,518 |
) |
(211,256 |
) |
Tax paid | (336,936 | ) | (5,784 | ) |
Net cash from operating activities | 5,178,700 | 7,388,193 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (12,393,826 | ) | (23,205,403 | ) |
Sale of tangible fixed assets | 13,493,373 | 15,845,901 |
Interest received | 40,128 | 31,360 |
Net cash from investing activities | 1,139,675 | (7,328,142 | ) |
Cash flows from financing activities |
New loans in year | 1,570,000 | 18,430,150 |
Loan repayments in year | (3,671,658 | ) | (1,618,029 | ) |
Leases re-financed | 10,455,571 | 4,404,625 |
Capital repayments in year | (13,727,604 | ) | (20,005,372 | ) |
Amount introduced by directors | 712,178 | (296,001 | ) |
Government Grants | - | 27,064 |
Equity dividends paid | (850,000 | ) | (222,222 | ) |
Net cash from financing activities | (5,511,513 | ) | 720,215 |
Increase in cash and cash equivalents | 806,862 | 780,266 |
Cash and cash equivalents at beginning of year |
2 |
1,835,241 |
1,054,975 |
Cash and cash equivalents at end of year | 2 | 2,642,103 | 1,835,241 |
Sema Lease UK Limited (Registered number: 05036315) |
Notes to the Consolidated Cash Flow Statement |
for the Year Ended 31 March 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2023 | 2022 |
as restated |
£ | £ |
Profit before taxation | 2,190,827 | 1,491,042 |
Depreciation charges | 2,567,498 | 2,706,391 |
Loss/(profit) on disposal of fixed assets | 8,964 | (57,170 | ) |
Government grants | - | (27,064 | ) |
Finance costs | 1,292,172 | 939,844 |
Finance income | (40,128 | ) | (31,360 | ) |
6,019,333 | 5,021,683 |
Decrease in stocks | 232,670 | 95,967 |
Decrease in trade and other debtors | 33,946 | 2,750,603 |
Increase in trade and other creditors | 521,859 | 465,568 |
Cash generated from operations | 6,807,808 | 8,333,821 |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31 March 2023 |
31.3.23 | 1.4.22 |
£ | £ |
Cash and cash equivalents | 2,642,103 | 1,835,241 |
Year ended 31 March 2022 |
31.3.22 | 1.4.21 |
as restated |
£ | £ |
Cash and cash equivalents | 1,835,241 | 1,328,058 |
Bank overdrafts | - | (273,083 | ) |
1,835,241 | 1,054,975 |
Sema Lease UK Limited (Registered number: 05036315) |
Notes to the Consolidated Cash Flow Statement |
for the Year Ended 31 March 2023 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
At 1.4.22 | Cash flow | At 31.3.23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 1,835,241 | 806,862 | 2,642,103 |
1,835,241 | 806,862 | 2,642,103 |
Debt |
Finance leases | (12,770,891 | ) | 3,272,033 | (9,498,858 | ) |
Debts falling due within 1 year | (4,186,666 | ) | 1,116,666 | (3,070,000 | ) |
Debts falling due after 1 year | (6,325,006 | ) | 984,992 | (5,340,014 | ) |
(23,282,563 | ) | 5,373,691 | (17,908,872 | ) |
Total | (21,447,322 | ) | 6,180,553 | (15,266,769 | ) |
Sema Lease UK Limited (Registered number: 05036315) |
Notes to the Consolidated Financial Statements |
for the Year Ended 31 March 2023 |
1. | STATUTORY INFORMATION |
Sema Lease UK Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Basis of consolidation |
The financial statements consolidate the financial statements of the Group and all of its subsidiary undertakings. |
The parent company has applied the exemption contained in section 408 of the Companies Act 2006 and has not included its individual statement of comprehensive income. |
Sema Lease UK Limited (Registered number: 05036315) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2023 |
2. | ACCOUNTING POLICIES - continued |
Turnover |
Turnover represents sales of vehicles during the year, including ex-rental vehicles where the operating leases have expired during the year and the provision of servicing and repair work done during the year, excluding value added tax. Rentals receivable under operating leases are also included in turnover on a straight line basis over the lease term. |
Revenue from the rendering of services is measured by reference to the stage of completion of the service transaction at the end of the reporting period provided that the outcome can be reliably estimated. When the outcome cannot be reliably estimated, revenue is recognised only to the extent that expenses recognised are recoverable. |
Contract Hire Rentals |
Turnover represents sales of ex-rental vehicles where the operating leases have expired during the year, |
excluding value added tax, and rentals receivable under operating leases recognised on a straight line basis over the lease term. |
Sale of Used and New Motor Vehicles |
Revenue from the sale of vehicles is recognised when all of the following conditions are satisfied |
- the Company has transferred the significant risks and rewards of ownership to the buyer; |
- the Company retains neither continuing managerial involvement to the degree usually |
associated with ownership nor effective control over the goods sold; |
- the amount of revenue can be measured reliably; |
- it is probable that the Company will receive the consideration due under the transaction; and |
- the costs incurred or to be incurred in respect of the transaction can be measured reliably |
- The sale of the motor vehicle is recognised on delivery |
New car sales are predominantly made up of sales to Sema Lease Ireland Limited, these are purchased and sold at breakeven. |
Goodwill |
Goodwill related to the purchase of Ames Nissan Limited into the Group. This is been written-off over its estimated useful life of five years. |
Goodwill arises on business acquisitions and represents the excess of the cost of the acquisition over the company's interest in the net amount of the identifiable assets, liabilities and contingent liabilities of the acquired business. |
Goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. It is amortised on a straight-line basis over its useful life which is considered to be five 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. |
Sema Lease UK Limited (Registered number: 05036315) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2023 |
2. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
Tangible fixed assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation. |
Depreciation |
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows: |
Property Improvements | 5% reducing balance |
Plant & Machinery | 5% - 25% on reducing balance, straight line for rental assets |
Motor Vehicles | 25% on reducing balance, straight line for finance lease vehicles |
Fixtures & Fittings | 5% reducing balance |
Computer Equipment | 10% straight line |
Other assets were not depreciated in previous accounting periods on the basis that they have a high residual value and any depreciation charged would be immaterial. However this year the depreciation estimate has been changed as the Directors view these other assets are now approaching the end of their useful life. |
Motor vehicles include cherished number plates which are also not depreciated. |
Stocks |
Stocks are valued at the lower of cost, plus repair or improvement costs and net realisable value, after making due allowance for obsolete and slow moving items. Stock cost is based on purchase price, or in the case of rental vehicles the purchase cost of the vehicles when they reach the end of the finance lease term. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated 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 balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
Sema Lease UK Limited (Registered number: 05036315) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2023 |
2. | ACCOUNTING POLICIES - continued |
Investments |
Fixed asset investments are initially recorded at cost, and subsequently stated at cost less any accumulated impairment losses. |
Impairment of fixed assets |
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. |
For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made on the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets. |
For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units. |
Finance leases and hire purchase contracts |
Assets held under finance leases and hire purchase contracts are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. |
Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest of the remaining balance of the liability. |
Going concern |
The company funds vehicles purchased for the company's hire fleet using finance lease contracts from a number of providers and a loan note programme. The vehicles are accounted for as fixed assets and a corresponding liability is recognised, an element of which will be classified as a current liability. This gives rise to the company's net current liabilities position at the year end. The directors have reviewed the company's forecasted cash flows and these are sufficient to meet the liabilities as they fall due. In addition to this, some of the short-term finance lease and hire purchase creditor balances at the year end are funded from the sale of the vehicles at the end of the lease or hire purchase agreement, which are included in fixed assets. |
Taking into account the above and after making enquiries, the directors believe the Group has adequate resources to meet its liabilities as they fall due for the foreseeable future. Accordingly, they continue to adopt the going concern basis for preparing the financial statements. |
Financial Instruments |
Financial assets and financial liabilities are recognised in accordance with FRS 102 when the company becomes a party to the contractual provisions of the instrument. |
Currently all financial liabilities are basic financial instruments as defined by section 11 of FRS 102 which are recognised at amortised cost. |
Where relevant, derivative financial instruments are initially recorded at cost and thereafter at fair value with changes recognised in the profit or loss account. |
Sema Lease UK Limited (Registered number: 05036315) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2023 |
3. | CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY |
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. |
Significant judgements |
There are no judgements (apart from those involving estimations) that management has made in the process of applying the entity's accounting policies and that have the most significant effect on the amounts recognised in the financial statements. |
Key sources of estimation uncertainty |
Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. The key assumptions and other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are as follows: |
Tangible fixed assets are recognised at cost less accumulated depreciation. Depreciation is charged over the estimated useful life of the asset to it's estimated residual value. |
The recoverability of trade debtors and other debtors are considered on a regular basis. When calculating the debtor provision, the directors consider the age of the debts and the financial position of its customer. |
4. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the group. |
An analysis of turnover by class of business is given below: |
2023 | 2022 |
as restated |
£ | £ |
Sales of vehicles | 14,829,532 | 14,795,036 |
Hire of vehicles | 7,640,944 | 6,762,732 |
22,470,476 | 21,557,768 |
An analysis of turnover by geographical market is given below: |
2023 | 2022 |
as restated |
£ | £ |
United Kingdom | 20,365,248 | 19,669,783 |
Europe | 2,105,228 | 1,887,985 |
22,470,476 | 21,557,768 |
Sema Lease UK Limited (Registered number: 05036315) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2023 |
5. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
as restated |
£ | £ |
Wages and salaries | 1,054,319 | 977,060 |
Social security costs | 110,225 | 95,675 |
Other pension costs | 20,351 | 24,227 |
1,184,895 | 1,096,962 |
The average number of employees during the year was as follows: |
2023 | 2022 |
as restated |
Sales Administration | 33 | 35 |
Accounts | 3 | 3 |
The average number of employees by undertakings that were proportionately consolidated during the year was 19 (2022 - 22 ) . |
2023 | 2022 |
as restated |
£ | £ |
Directors' remuneration | 101,536 | 108,100 |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes | 1 | 1 |
The value of the Group’s contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £9.3k (2022: £3.2k). |
6. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2023 | 2022 |
as restated |
£ | £ |
Depreciation - owned assets | 2,567,497 | 2,694,159 |
Loss/(profit) on disposal of fixed assets | 8,964 | (57,170 | ) |
Goodwill amortisation | - | 12,232 |
Foreign exchange differences | - | 34,124 |
Sema Lease UK Limited (Registered number: 05036315) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2023 |
7. | AUDITORS' REMUNERATION |
2023 | 2022 |
as restated |
£ | £ |
Fees payable to the company's auditors for the audit of the company's financial statements |
36,500 |
37,000 |
Auditors' remuneration for non audit work | 8,132 | 5,850 |
8. | INTEREST RECEIVABLE AND SIMILAR INCOME |
2023 | 2022 |
as restated |
£ | £ |
Other interest | 40,128 | 31,360 |
9. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
as restated |
£ | £ |
Bank loan interest | 87,901 | 67,247 |
Interest on overdue tax | 3,052 | 960 |
Bank & credit card charges | 27,779 | 23,345 |
Loan | 60,000 | 60,000 |
Interest on debenture loans | 630,922 | 577,036 |
Hire purchase interest | 482,518 | 211,256 |
1,292,172 | 939,844 |
10. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2023 | 2022 |
as restated |
£ | £ |
Current tax: |
UK corporation tax | 333,423 | - |
Over/under provision in prior | 105,774 | - |
Total current tax | 439,197 | - |
Deferred tax: |
Deferred tax | (91,555 | ) | 305,486 |
Change in Rate of Deferred Tax | - | 218,478 |
Total deferred tax | (91,555 | ) | 523,964 |
Tax on profit | 347,642 | 523,964 |
UK corporation tax has been charged at 19 % (2022 - 19 %). |
Sema Lease UK Limited (Registered number: 05036315) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2023 |
10. | TAXATION - continued |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
2023 | 2022 |
as restated |
£ | £ |
Profit before tax | 2,190,827 | 1,491,042 |
Profit multiplied by the standard rate of corporation tax in the UK of 19 % (2022 - 19 %) |
416,257 |
283,298 |
Effects of: |
Expenses not deductible for tax purposes | 10,829 | 459 |
Capital allowances in excess of depreciation | - | (360,266 | ) |
Depreciation in excess of capital allowances | 63,365 | - |
Deferred tax | (91,555 | ) | 523,964 |
Impairment of investment in Ames Nissan | (19,067 | ) | (19,000 | ) |
Inclusion of goodwill | - | 2,324 |
Factors affecting future years tax charges | 3,055 | 3,310 |
Tax losses | (141,016 | ) | 62,617 |
Prior year adjustments | (133,488 | ) | 27,258 |
Prior year tax charge | 239,262 | - |
Total tax charge | 347,642 | 523,964 |
Factors that may affect future tax charges |
In the spring Budget 2021 due to the enhanced amount of public borrowing as a result of the COVID 19 pandemic the Government announced that the rate of corporation tax would increase from 19% to 25% with effect from April 2023. |
11. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
12. | DIVIDENDS |
2023 | 2022 |
as restated |
£ | £ |
Interim | 850,000 | 222,222 |
13. | PRIOR YEAR ADJUSTMENT |
Prior year adjustments affecting the profit and loss account reserve amounting £559,103 relate to the correction of VRT and finance leases. An adjustment was also posted to correct 2022 trade debtors where this included a bad debt amounting £143,464. |
A prior year balance sheet adjustment was also posted to gross up £5.2m of motor vehicle cost and depreciation which had already been fully written down to correctly reflect the cost and depreciation of fixed assets held. There is no impact on the carrying value. |
Sema Lease UK Limited (Registered number: 05036315) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2023 |
14. | INTANGIBLE FIXED ASSETS |
Group |
Goodwill |
£ |
COST |
At 1 April 2022 |
and 31 March 2023 | 625,162 |
AMORTISATION |
At 1 April 2022 |
and 31 March 2023 | 625,162 |
NET BOOK VALUE |
At 31 March 2023 | - |
At 31 March 2022 | - |
Company |
Goodwill |
£ |
COST |
At 1 April 2022 |
and 31 March 2023 |
AMORTISATION |
At 1 April 2022 |
and 31 March 2023 |
NET BOOK VALUE |
At 31 March 2023 |
At 31 March 2022 |
Goodwill relates to a historic investment in Ames Car Sales. |
Sema Lease UK Limited (Registered number: 05036315) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2023 |
15. | TANGIBLE FIXED ASSETS |
Group |
Fixtures |
Property | Other | and |
improvements | assets | fittings |
£ | £ | £ |
COST |
At 1 April 2022 | 294,867 | 65,000 | 154,811 |
Additions | - | - | - |
Disposals | (48,852 | ) | (65,000 | ) | (22,173 | ) |
At 31 March 2023 | 246,015 | - | 132,638 |
DEPRECIATION |
At 1 April 2022 | 173,125 | 65,000 | 101,790 |
Charge for year | 6,111 | - | 2,705 |
Eliminated on disposal | (44,095 | ) | (65,000 | ) | (17,969 | ) |
At 31 March 2023 | 135,141 | - | 86,526 |
NET BOOK VALUE |
At 31 March 2023 | 110,874 | - | 46,112 |
At 31 March 2022 | 121,742 | - | 53,021 |
Motor | Plant and |
vehicles | machinery | Totals |
£ | £ | £ |
COST |
At 1 April 2022 | 23,212,860 | 294,896 | 24,022,434 |
Additions | 12,293,648 | 100,178 | 12,393,826 |
Disposals | (15,156,478 | ) | - | (15,292,503 | ) |
At 31 March 2023 | 20,350,030 | 395,074 | 21,123,757 |
DEPRECIATION |
At 1 April 2022 | 1,442,262 | 222,718 | 2,004,895 |
Charge for year | 2,541,927 | 16,754 | 2,567,497 |
Eliminated on disposal | (1,663,102 | ) | - | (1,790,166 | ) |
At 31 March 2023 | 2,321,087 | 239,472 | 2,782,226 |
NET BOOK VALUE |
At 31 March 2023 | 18,028,943 | 155,602 | 18,341,531 |
At 31 March 2022 | 21,770,598 | 72,178 | 22,017,539 |
Sema Lease UK Limited (Registered number: 05036315) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2023 |
15. | TANGIBLE FIXED ASSETS - continued |
Company |
Other | Motor | Plant and |
assets | vehicles | machinery | Totals |
£ | £ | £ | £ |
COST |
At 1 April 2022 |
Additions |
Disposals | ( |
) | ( |
) | ( |
) |
At 31 March 2023 |
DEPRECIATION |
At 1 April 2022 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) | ( |
) |
At 31 March 2023 |
NET BOOK VALUE |
At 31 March 2023 |
At 31 March 2022 |
Assets Held Under Finance |
Included in tangible fixed assets are assets under hire purchase and finance leases. The net book value of these assets at year end is £9,329,746 (2022: £12,792,309) and depreciation in relation to these assets charged in the financial year totalled £1,401,242 (2022: £1,787,308) . |
Assets Held For Contract Hire Sales |
Included in tangible fixed assets are assets held for use in contract hire sales. The net book value of these items held at year end is £21,544,394 (2022: £17,778,012) and depreciation in respect of these assets charged in the financial year amounted to £2,509,375 (2022: £2,634,537). |
16. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 April 2022 |
Impairments | ( |
) |
At 31 March 2023 |
NET BOOK VALUE |
At 31 March 2023 |
At 31 March 2022 |
Sema Lease UK Limited (Registered number: 05036315) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2023 |
16. | FIXED ASSET INVESTMENTS - continued |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiary |
Registered office: 2 Fison Way, Thetford, Norfolk, IP241HT |
Nature of business: |
% |
Class of shares: | holding |
2023 | 2022 |
£ | £ |
Aggregate capital and reserves | ( |
) | ( |
) |
Loss for the year | ( |
) | ( |
) |
The remaining investment value relates to the investment in the company's subsidiary company Ames Nissan Limited. Due to this company being loss making for a number of years the Directors have seen it prudent to write down the value of the investment this year and recognise an impairment. |
During an earlier year the company had invested £144,000 in a Limited Liability Partnership Oxygen Productions LLP. As at the balance sheet date the directors have considered the investment for impairment in accordance with UK GAAP. The nature of the investment makes predicting future returns difficult and based on all of the available evidence as at the balance sheet date the directors have concluded that the value of the investment may not be recoverable. For this reason the investment has been fully impaired. |
17. | STOCKS |
Group | Company |
2023 | 2022 | 2023 | 2022 |
as restated | as restated |
£ | £ | £ | £ |
Stocks | 281,546 | 552,900 |
Finished goods | 192,085 | 153,401 |
473,631 | 706,301 |
Sema Lease UK Limited (Registered number: 05036315) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2023 |
18. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
as restated | as restated |
£ | £ | £ | £ |
Trade debtors | 1,186,718 | 719,695 |
Amounts owed by group undertakings | - | - |
Amounts owed by connected companies | 3,701,613 | 4,258,699 | 3,701,613 | 4,244,224 |
Other debtors | 12,517 | 117,663 |
Directors' current accounts | 669,274 | 1,353,665 | 637,905 | 1,323,061 |
VAT | - | 287,516 |
Prepayments and accrued income | 90,547 | 129,681 |
S455 tax repayable | 415,339 | 415,339 | 404,310 | 404,310 |
6,076,008 | 7,282,258 |
19. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
as restated | as restated |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 21) | 2,055,000 | 3,171,666 |
Other loans (see note 21) | 1,015,000 | 1,015,000 |
Hire purchase contracts (see note 22) | 8,385,069 | 12,559,613 |
Trade creditors | 769,766 | 851,614 |
Corporation tax | 199,935 | 97,674 |
Social security and other taxes | 45,475 | 23,677 |
VAT | 212,733 | - | 184,601 | - |
Other creditors | 30,626 | 45,218 |
Directors' current accounts | 27,787 | - | 27,787 | - |
Accruals and deferred income | 207,104 | 311,248 |
12,948,495 | 18,075,710 |
20. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
as restated | as restated |
£ | £ | £ | £ |
Bank loans (see note 21) | 5,340,014 | 6,325,006 |
Hire purchase contracts (see note 22) | 1,113,789 | 211,278 |
6,453,803 | 6,536,284 |
Sema Lease UK Limited (Registered number: 05036315) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2023 |
21. | LOANS |
An analysis of the maturity of loans is given below: |
Group | Company |
2023 | 2022 | 2023 | 2022 |
as restated | as restated |
£ | £ | £ | £ |
Amounts falling due within one year or on | demand: |
Bank loans | 500,000 | 500,000 |
Debenture loans | 1,555,000 | 2,671,666 | 1,555,000 | 2,671,666 |
Other loans | 1,015,000 | 1,015,000 |
3,070,000 | 4,186,666 |
Amounts falling due between one and two | years: |
Debentures due after one year | 4,715,000 | 4,700,000 | 4,715,000 | 4,700,000 |
Amounts falling due between two and five | years: |
Bank loans - 2-5 years | 625,014 | 1,625,006 |
22. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Hire purchase contracts |
2023 | 2022 |
as restated |
£ | £ |
Net obligations repayable: |
Within one year | 8,385,069 | 12,559,613 |
Between one and five years | 1,113,789 | 211,278 |
9,498,858 | 12,770,891 |
Company |
Hire purchase contracts |
2023 | 2022 |
as restated |
£ | £ |
Net obligations repayable: |
Within one year |
Between one and five years |
Sema Lease UK Limited (Registered number: 05036315) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2023 |
22. | LEASING AGREEMENTS - continued |
Group |
Non-cancellable operating | leases |
2023 | 2022 |
as restated |
£ | £ |
Within one year | 1,509 | 2,134 |
Between one and five years | 1,509 | 2,392 |
3,018 | 4,526 |
Company |
Non-cancellable operating | leases |
2023 | 2022 |
as restated |
£ | £ |
Within one year |
Between one and five years |
23. | SECURED DEBTS |
The loan notes are secured against the motor vehicles financed by the loan note programme and also by a fixed and floating charge over all of the company’s assets. |
Obligations under hire purchase contracts are secured against the related assets and trade in relation to those assets. |
Obligations under finance leases are secured against the related assets and a floating over over all the other |
assets and trade of the company. |
24. | PROVISIONS FOR LIABILITIES |
Group | Company |
2023 | 2022 | 2023 | 2022 |
as restated | as restated |
£ | £ | £ | £ |
Deferred tax |
Tax losses carried forward | - | (34,953 | ) | ( |
) |
Capital allowances in excess of depreciation |
818,770 |
945,278 |
818,770 |
945,278 |
818,770 | 910,325 | 818,770 | 910,325 |
Sema Lease UK Limited (Registered number: 05036315) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2023 |
24. | PROVISIONS FOR LIABILITIES - continued |
Group |
Deferred |
tax |
£ |
Balance at 1 April 2022 | 910,325 |
Provided during year | (91,555 | ) |
Balance at 31 March 2023 | 818,770 |
Company |
Deferred |
tax |
£ |
Balance at 1 April 2022 |
Provided during year | ( |
) |
Balance at 31 March 2023 |
25. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | as restated |
£ | £ |
Ordinary | £1 | 1,000 | 1,000 |
26. | PENSION COMMITMENTS |
The amount recognised in profit and loss as an expense in relation to defined contribution plans was £29,743 (2022: £27,471). The unpaid pension liability at the end of the year is £11,595 (2022 - £1,226). |
27. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
During the year the group operated current accounts with the directors. At the balance sheet date the directors owed the group £669,274 (2022 - £1,353,665). The maximum amount outstanding during the year was £669,274 (2022 - £1,353,665). Interest has been charged at the HMRC official rate. |
28. | RELATED PARTY DISCLOSURES |
Key management personnel of the entity or its parent (in the aggregate) |
2023 | 2022 |
as restated |
£ | £ |
Amount due from related party | 641,487 | 1,353,665 |
Sema Lease UK Limited (Registered number: 05036315) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2023 |
28. | RELATED PARTY DISCLOSURES - continued |
Other related parties |
2023 | 2022 |
as restated |
£ | £ |
Sales | 2,125,653 | 1,932,984 |
Purchases | 760 | - |
Loans to | 563,616 | 276,353 |
Repayments from | 21,005 | 173,739 |
Amount due from related party | 3,713,245 | 4,262,224 |
In addition to the above related party transactions the company also held tangible assets acquired for the sole purpose of making available to other related parties free of charge in relation to sponsorship arrangements. |
Other related parties and companies/unincorporated businesses which the Directors own and control. |
R C Ames has given personal guarantee in respect of the group's bank borrowing facility and also specific personal guarantees to group companies in respect of related party loan balances owed by other group companies. |
29. | ULTIMATE CONTROLLING PARTY |
The ultimate controlling party is R C Ames. |
30. | OPERATING LEASES - LESSOR |
One of the group's main activities is providing vehicles under operating leases, specialising in leases with a twelve month duration. The amount estimated to be due in lease payments receivable under non-cancellable operating leases within one year is £2,878,413 (2022: £2,838,214). There are no amounts due in more than one year. |
An estimated amount is used due to the large volume of leases. The estimate is worked out as 50% of total vehicle rental income if the year and is considered by the Directors as accurate. |