Caseware UK (AP4) 2022.0.179 2022.0.179 2022-12-312022-12-31truetruetruetruetrue2022-01-01falseNo description of principal activity11811077truefalse 04370971 2022-01-01 2022-12-31 04370971 2021-01-01 2021-12-31 04370971 2022-12-31 04370971 2021-12-31 04370971 2021-01-01 04370971 1 2022-01-01 2022-12-31 04370971 d:CompanySecretary1 2022-01-01 2022-12-31 04370971 d:Director1 2022-01-01 2022-12-31 04370971 d:Director2 2022-01-01 2022-12-31 04370971 d:Director3 2022-01-01 2022-12-31 04370971 d:Director4 2022-01-01 2022-12-31 04370971 d:Director5 2022-01-01 2022-12-31 04370971 d:Director5 2022-12-31 04370971 d:Director6 2022-01-01 2022-12-31 04370971 d:Director6 2022-12-31 04370971 d:Director7 2022-01-01 2022-12-31 04370971 d:Director7 2022-12-31 04370971 d:Director8 2022-01-01 2022-12-31 04370971 d:Director8 2022-12-31 04370971 d:RegisteredOffice 2022-01-01 2022-12-31 04370971 c:Buildings c:ShortLeaseholdAssets 2022-01-01 2022-12-31 04370971 c:Buildings c:ShortLeaseholdAssets 2022-12-31 04370971 c:Buildings c:ShortLeaseholdAssets 2021-12-31 04370971 c:PlantMachinery 2022-01-01 2022-12-31 04370971 c:PlantMachinery 2022-12-31 04370971 c:PlantMachinery 2021-12-31 04370971 c:PlantMachinery c:OwnedOrFreeholdAssets 2022-01-01 2022-12-31 04370971 c:FurnitureFittings 2022-01-01 2022-12-31 04370971 c:FurnitureFittings 2022-12-31 04370971 c:FurnitureFittings 2021-12-31 04370971 c:FurnitureFittings c:OwnedOrFreeholdAssets 2022-01-01 2022-12-31 04370971 c:OfficeEquipment 2022-01-01 2022-12-31 04370971 c:OfficeEquipment 2022-12-31 04370971 c:OfficeEquipment 2021-12-31 04370971 c:OfficeEquipment c:OwnedOrFreeholdAssets 2022-01-01 2022-12-31 04370971 c:OwnedOrFreeholdAssets 2022-01-01 2022-12-31 04370971 c:Goodwill 2022-01-01 2022-12-31 04370971 c:Goodwill 2022-12-31 04370971 c:Goodwill 2021-12-31 04370971 c:CopyrightsPatentsTrademarksServiceOperatingRights 2022-12-31 04370971 c:CopyrightsPatentsTrademarksServiceOperatingRights 2021-12-31 04370971 c:OtherResidualIntangibleAssets 2022-01-01 2022-12-31 04370971 c:CurrentFinancialInstruments 2022-12-31 04370971 c:CurrentFinancialInstruments 2021-12-31 04370971 c:Non-currentFinancialInstruments 2022-12-31 04370971 c:Non-currentFinancialInstruments 2021-12-31 04370971 c:CurrentFinancialInstruments c:WithinOneYear 2022-12-31 04370971 c:CurrentFinancialInstruments c:WithinOneYear 2021-12-31 04370971 c:Non-currentFinancialInstruments c:AfterOneYear 2022-12-31 04370971 c:Non-currentFinancialInstruments c:AfterOneYear 2021-12-31 04370971 c:ReportableOperatingSegment1 2022-01-01 2022-12-31 04370971 c:ReportableOperatingSegment1 2021-01-01 2021-12-31 04370971 c:ReportableOperatingSegment2 2022-01-01 2022-12-31 04370971 c:ReportableOperatingSegment2 2021-01-01 2021-12-31 04370971 c:ReportableOperatingSegment3 2022-01-01 2022-12-31 04370971 c:ReportableOperatingSegment3 2021-01-01 2021-12-31 04370971 c:UKTax 2022-01-01 2022-12-31 04370971 c:UKTax 2021-01-01 2021-12-31 04370971 c:ShareCapital 2022-12-31 04370971 c:ShareCapital 2021-12-31 04370971 c:ShareCapital 2021-01-01 04370971 c:RetainedEarningsAccumulatedLosses 2022-01-01 2022-12-31 04370971 c:RetainedEarningsAccumulatedLosses 2022-12-31 04370971 c:RetainedEarningsAccumulatedLosses 2021-01-01 2021-12-31 04370971 c:RetainedEarningsAccumulatedLosses 2021-12-31 04370971 c:RetainedEarningsAccumulatedLosses 2021-01-01 04370971 d:OrdinaryShareClass1 2022-01-01 2022-12-31 04370971 d:OrdinaryShareClass1 2022-12-31 04370971 d:OrdinaryShareClass1 2021-12-31 04370971 d:FRS102 2022-01-01 2022-12-31 04370971 d:Audited 2022-01-01 2022-12-31 04370971 d:FullAccounts 2022-01-01 2022-12-31 04370971 d:PrivateLimitedCompanyLtd 2022-01-01 2022-12-31 04370971 c:WithinOneYear 2022-12-31 04370971 c:WithinOneYear 2021-12-31 04370971 c:BetweenOneFiveYears 2022-12-31 04370971 c:BetweenOneFiveYears 2021-12-31 04370971 c:MoreThanFiveYears 2022-12-31 04370971 c:MoreThanFiveYears 2021-12-31 04370971 c:HirePurchaseContracts c:WithinOneYear 2022-12-31 04370971 c:HirePurchaseContracts c:WithinOneYear 2021-12-31 04370971 c:HirePurchaseContracts c:BetweenOneFiveYears 2022-12-31 04370971 c:HirePurchaseContracts c:BetweenOneFiveYears 2021-12-31 04370971 c:Goodwill c:ExternallyAcquiredIntangibleAssets 2022-01-01 2022-12-31 04370971 c:CopyrightsPatentsTrademarksServiceOperatingRights c:ExternallyAcquiredIntangibleAssets 2022-01-01 2022-12-31 04370971 c:ExternallyAcquiredIntangibleAssets 2022-01-01 2022-12-31 04370971 c:AcceleratedTaxDepreciationDeferredTax 2022-12-31 04370971 c:AcceleratedTaxDepreciationDeferredTax 2021-12-31 04370971 c:TaxLossesCarry-forwardsDeferredTax 2022-12-31 04370971 c:TaxLossesCarry-forwardsDeferredTax 2021-12-31 04370971 c:RetirementBenefitObligationsDeferredTax 2022-12-31 04370971 c:RetirementBenefitObligationsDeferredTax 2021-12-31 04370971 c:Goodwill c:OwnedIntangibleAssets 2022-01-01 2022-12-31 04370971 c:CopyrightsPatentsTrademarksServiceOperatingRights c:OwnedIntangibleAssets 2022-01-01 2022-12-31 04370971 c:SpecificBusinessCombination1 2022-01-01 2022-12-31 04370971 c:SpecificBusinessCombination1 2022-12-31 04370971 c:SpecificBusinessCombination1 c:CurrentFinancialInstruments 2022-12-31 xbrli:shares iso4217:GBP xbrli:pure

Registered number: 04370971










STEVEN EAGELL LIMITED










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2022

 
STEVEN EAGELL LIMITED
 
 
COMPANY INFORMATION


Directors
S M Eagell 
G M Smith 
D A Sherriff 
B S J Portsmouth 
I Munir (appointed 1 January 2023)
P D Parsons (appointed 1 January 2023)
S Rashid (appointed 1 January 2023)
C Rodriguez (appointed 1 January 2023)




Company secretary
Denise Eagell



Registered number
04370971



Registered office
10 Queen Street Place

London

EC4R 1AG




Independent auditors
Haysmacintyre LLP

10 Queen Street Place

London

EC4R 1AG





 
STEVEN EAGELL LIMITED
 

CONTENTS



Page
Strategic Report
1 - 3
Directors' Report
4 - 8
Independent Auditors' Report
9 - 12
Statement of Comprehensive Income
13
Statement of Financial Position
14
Statement of Changes in Equity
15
Notes to the Financial Statements
16 - 35


 
STEVEN EAGELL LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022

Business review and future developments
 
The company'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 Company 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 company 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 company’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. All 32 locations will be transformed by September 2025. This is a significant investment for the Company.

 
Product cycle risk
As all vehicles move through their natural life cycle, the company's ability to maintain adequate margins can be impaired. In order to minimise any impact, the company is looking into the development of a broad base of income sources from used vehicle sales, accident repair, service repair and parts sales.

Page 1

 
STEVEN EAGELL LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022

Competition risk

The markets in which the company operates are highly competitive and there is a risk that customers may seek alternative sources for the products and services offered. The company is mitigating this risk by continually seeking to build a strong reputation for extremely high levels of customer service. The company continues to monitor competitor activity, customer satisfaction and customer feedback.
The company invests heavily in staff training and skills development, including apprenticeships, management development programmes and continuous training and coaching.
Manufacturing supply of new vehicles
The Company is reliant on new vehicle products from its manufacturer partners. This may expose the Company 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 company, including used vehicle sales, service work and parts sales.
Stock value risk
The company 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 company mitigates this risk through ensuring it only carries stock of a suitable profile and operates an aged stock policy. The company also makes a monthly provision in the Profit & Loss account for all stock over 90 days.

Financial key performance indicators
 
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%.

Other key performance indicators
 
The business produces internal management information on a monthly basis which includes key performance indicators.
Some of these measures are profit per sold unit, 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 company.

Page 2

 
STEVEN EAGELL LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022

Directors' statement of compliance with duty to promote the success of the Company
 
When making decisions, the directors consider what is likely to lead to the success of the company and to be of benefit to the members 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.





D A Sherriff
Director

Date: 27 November 2023

Page 3

 
STEVEN EAGELL 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.

Directors' responsibilities statement

The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.
 
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with 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 of the profit or loss of the Company for that period.

 In preparing these financial statements, the directors are required to:


select suitable accounting policies for the Company'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 Company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Results and dividends

The profit for the year, after taxation, amounted to £23,509,000 (2021 - £20,684,000).

Dividends of £12,774,000 (2021: £14,700,000) were paid in the year. The directors do not recommend a final dividend.

Directors

The directors who served during the year were:

S M Eagell 
G M Smith 
D A Sherriff 
B S J Portsmouth 
I Munir (appointed 1 January 2023)
P D Parsons (appointed 1 January 2023)
S Rashid (appointed 1 January 2023)
C Rodriguez (appointed 1 January 2023)

Page 4

 
STEVEN EAGELL LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022

Engagement with employees

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 concern 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.

Page 5

 
STEVEN EAGELL LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022


Engagement with suppliers, customers and others

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.

Disabled employees

Full and fair consideration is given to the employment of disabled persons, having regard to their particular aptitude and abilities. Wherever possible, continuous employment is provided for employees, who become disabled, with appropriate arrangements for re training being made where necessary.

Page 6

 
STEVEN EAGELL LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022

Greenhouse gas emissions, energy consumption and energy efficiency action

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.

ole036a.png

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 

Page 7

 
STEVEN EAGELL LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022

Post balance sheet events

In June 2023 the Company 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.

Auditors

The auditorsHaysmacintyre LLPwill 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.
 





D A Sherriff
Director

Date: 27 November 2023

Page 8

 
STEVEN EAGELL LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF STEVEN EAGELL LIMITED
 

Opinion


We have audited the financial statements of Steven Eagell Limited (the 'Company') for the year ended 31 December 2022, which comprise the Statement of Comprehensive Income, the Statement of Financial Position, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the Company's affairs as at 31 December 2022 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the 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.


Conclusions relating to going concern


In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.


Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.


Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.


Page 9

 
STEVEN EAGELL LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF STEVEN EAGELL LIMITED (CONTINUED)


Other information


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 ReportOur 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.


Opinion on other matters prescribed by the Companies Act 2006
 

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


the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.


We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:


adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

As explained more fully in the Directors' Responsibilities Statement set out on page 4, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


In preparing the financial statements, the directors are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.


Page 10

 
STEVEN EAGELL LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF STEVEN EAGELL LIMITED (CONTINUED)


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 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 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;


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.


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 2006Our 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.


Page 11

 
STEVEN EAGELL LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF STEVEN EAGELL LIMITED (CONTINUED)





David Cox (Senior Statutory Auditor)
for and on behalf of
Haysmacintyre LLP
Statutory Auditors
10 Queen Street Place
London
EC4R 1AG

27 November 2023
Page 12

 
STEVEN EAGELL LIMITED
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2022

2022
2021
Note
£000
£000

  

Turnover
 4 
840,675
702,721

Cost of sales
  
(717,087)
(598,890)

Gross profit
  
123,588
103,831

Administrative expenses
  
(93,450)
(78,548)

Other operating income
 5 
-
1,548

Operating profit
 6 
30,138
26,831

Interest payable and similar expenses
 10 
(959)
(1,020)

Profit before tax
  
29,179
25,811

Tax on profit
 11 
(5,670)
(5,127)

Profit for the financial year
  
23,509
20,684

There was no other comprehensive income for 2022 (2021:£NIL).

The notes on pages 16 to 35 form part of these financial statements.

Page 13

 
STEVEN EAGELL LIMITED
REGISTERED NUMBER: 04370971

STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2022

2022
2021
Note
£000
£000

Fixed assets
  

Intangible assets
 13 
5,113
2,962

Tangible assets
 14 
7,590
5,163

  
12,703
8,125

Current assets
  

Stocks
 16 
87,636
58,284

Debtors: amounts falling due within one year
 17 
72,587
50,156

Cash at bank and in hand
 18 
1,572
4,327

  
161,795
112,767

Creditors: amounts falling due within one year
 19 
(131,241)
(89,610)

Net current assets
  
 
 
30,554
 
 
23,157

Total assets less current liabilities
  
43,257
31,282

Creditors: amounts falling due after more than one year
 20 
(642)
-

Provisions for liabilities
  

Deferred tax
 23 
(2,031)
(1,433)

  
 
 
(2,031)
 
 
(1,433)

Net assets
  
40,584
29,849


Capital and reserves
  

Called up share capital 
 24 
100
100

Profit and loss account
 25 
40,484
29,749

  
40,584
29,849


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




D A Sherriff
Director

Date: 27 November 2023

The notes on pages 16 to 35 form part of these financial statements.

Page 14

 
STEVEN EAGELL LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022


Called up share capital
Profit and loss account
Total equity

£000
£000
£000


At 1 January 2021
100
23,765
23,865



Profit for the year
-
20,684
20,684

Dividends: Equity capital
-
(14,700)
(14,700)



At 1 January 2022
100
29,749
29,849



Profit for the year
-
23,509
23,509


Contributions by and distributions to owners

Dividends: Equity capital
-
(12,774)
(12,774)


At 31 December 2022
100
40,484
40,584


The notes on pages 16 to 35 form part of these financial statements.

Page 15

 
STEVEN EAGELL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

1.


General information

Steven Eagell 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

 
2.1

Basis of preparation of financial statements

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 management to exercise judgment in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Financial Reporting Standard 102 - reduced disclosure exemptions

The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
the requirements of Section 7 Statement of Cash Flows;
the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
the requirements of Section 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements of Steven Eagell Holdings Limited as at 31 December 2022 and these financial statements may be obtained from Power House, Harrison Close, Knowlhill, Milton Keynes, Buckinghamshire, MK5 8PA..

 
2.3

Going concern

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 Company 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 Company has sufficient resources available to meet its liabilities as they fall due. These financial statements have, therefore, been prepared on a going concern basis.

Page 16

 
STEVEN EAGELL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

2.Accounting policies (continued)

 
2.4

Exemption from preparing consolidated financial statements

The Company is a parent company that is also a subsidiary included in the consolidated financial statements of a larger group by a parent undertaking established under the law of any part of the United Kingdom and is therefore exempt from the requirement to prepare consolidated financial statements under section 400 of the Companies Act 2006.

 
2.5

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods 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.

Commission income and manufacturer bonuses
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 Statement of Comprehensive Income.

Page 17

 
STEVEN EAGELL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

2.Accounting policies (continued)

 
2.6

Intangible assets

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:

Goodwill
-
10
years
Franchise agreements
-
10
years

Intangible assets are being amortised over 10 years as this reflects their expected estimated useful life.

 
2.7

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is provided on the following basis:

Leasehold improvements
-
Over the term of the lease
Plant and machinery
-
5 years
Fixtures and fittings
-
3-10 years
Office equipment
-
5 years



Page 18

 
STEVEN EAGELL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

2.Accounting policies (continued)

 
2.8

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

The Company holds consignment stock from its major supplier. The Company recognises consignment stock in its Statement of Financial Position when there has been a substantial transfer of the risks and rewards of ownership.

 
2.9

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.10

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

 
2.11

Financial instruments

The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

The Company has elected to apply the recognition and measurement provisions of IFRS 9 Financial Instruments (as adopted by the UK Endorsement Board) with the disclosure requirements of Sections 11 and 12 and the other presentation requirements of FRS 102.

Financial instruments are recognised in the Company's Statement of Financial Position when the Company becomes party to the contractual provisions of the instrument.

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

Basic financial assets

Basic financial assets, which include 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 Company's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.
Page 19

 
STEVEN EAGELL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

2.Accounting policies (continued)


2.11
Financial instruments (continued)


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 Company after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other payables, bank loans and other loans 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.

Other financial instruments

Derivatives, including forward exchange contracts, futures contracts and interest rate swaps, are not classified as basic financial instruments. These are initially recognised at fair value on the date the derivative contract is entered into, with costs being charged to the profit or loss. They are subsequently measured at fair value with changes in the profit or loss.

Page 20

 
STEVEN EAGELL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

2.Accounting policies (continued)


2.11
Financial instruments (continued)

Debt instruments that do not meet the conditions as set out in FRS 102 paragraph 11.9 are subsequently measured at fair value through the profit or loss. This recognition and measurement would also apply to financial instruments where the performance is evaluated on a fair value basis as with a documented risk management or investment strategy.

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company 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 Company 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 Company's contractual obligations expire or are discharged or cancelled.

 
2.12

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.13

Government grants

Grants are accounted under the accruals model as permitted by FRS 102.
During the year the Company received grants of £Nil (2021: £1,548,000) in relation to the Coronavirus Job Retention Scheme. These grants are 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.

 
2.14

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.15

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

Page 21

 
STEVEN EAGELL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

2.Accounting policies (continued)

 
2.16

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

 
2.17

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Company in independently administered funds.

 
2.18

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

Page 22

 
STEVEN EAGELL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

3.


Judgments in applying accounting policies and key sources of estimation uncertainty

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Although these estimates are based on management's best knowledge of the amount, events or actions, actual results ultimately may differ from those estimates.
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 Company 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 Company estimates the useful life and residual values of intangible assets, property, plant and equipment and reviews these estimates at each financial year end. The Company also tests for impairment when a trigger event occurs, or annually, as appropriate.


4.


Turnover

An analysis of turnover by class of business is as follows:


2022
2021
£000
£000

Sale of goods
795,398
662,098

Rendering of services
43,353
39,348

Commissions
1,924
1,276

840,675
702,722


All turnover arose within the United Kingdom.


5.


Other operating income

2022
2021
£000
£000

Government grants receivable
-
1,548

-
1,548


Page 23

 
STEVEN EAGELL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

6.


Operating profit

The operating profit is stated after charging:

2022
2021
£000
£000

Depreciation of tangible fixed assets
1,947
1,561

Amortisation of intangible assets, including goodwill
800
787

Other operating lease rentals
6,719
6,406

Defined contribution pension costs
1,237
1,121


7.


Auditors' remuneration

During the year, the Company obtained the following services from the Company's auditors and their associates:


2022
2021
£000
£000

Fees payable to the Company's auditor for the audit of the Company's annual financial statements
98
84

The Company has taken advantage of the exemption not to disclose amounts paid for non-audit services as these are disclosed in the consolidated accounts of the parent Company.


8.


Employees

Staff costs, including directors' remuneration, were as follows:


2022
2021
£000
£000

Wages and salaries
42,274
37,113

Social security costs
4,872
4,331

Cost of defined contribution scheme
1,237
1,121

48,383
42,565


The average monthly number of employees, including the directors, during the year was as follows:


        2022
        2021
            No.
            No.







1,181
1,077

Page 24

 
STEVEN EAGELL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

9.


Directors' remuneration

2022
2021
£000
£000

Directors' emoluments
709
645

709
645


The highest paid director received remuneration of £248,000 (2021 - £232,000).


10.


Interest payable and similar expenses

2022
2021
£000
£000


Bank interest payable
-
10

Other loan interest payable
945
1,010

Finance leases
14
-

959
1,020


11.


Taxation


2022
2021
£000
£000

Corporation tax


Current tax on profits for the year
5,481
4,890

Adjustments in respect of previous periods
41
(12)

5,522
4,878


Deferred tax


Origination and reversal of timing differences
148
249

Total deferred tax
148
249


Taxation on profit on ordinary activities
5,670
5,127
Page 25

 
STEVEN EAGELL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
 
11.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is higher than (2021 - higher than) the standard rate of corporation tax in the UK of 19% (2021 - 19%). The differences are explained below:

2022
2021
£000
£000


Profit on ordinary activities before tax
29,179
25,811


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2021 - 19%)
5,544
4,904

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
172
26

Capital allowances for year in excess of depreciation
-
159

Adjustments to tax charge in respect of prior periods
41
(12)

Effect on deferred tax of change in tax rates
-
344

Other differences
(87)
(294)

Total tax charge for the year
5,670
5,127


Factors that may affect future tax charges

The main rate of corporation tax in the UK increased from 19% to 25% from 1 April 2023.


12.


Dividends

2022
2021
£000
£000


Dividends
12,774
14,700

12,774
14,700

Page 26

 
STEVEN EAGELL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

13.


Intangible assets




Franchise
Goodwill
Total

£000
£000
£000



Cost


At 1 January 2022
5,075
2,876
7,951


Additions
1,801
1,149
2,950



At 31 December 2022

6,876
4,025
10,901



Amortisation


At 1 January 2022
2,710
2,279
4,989


Charge for the year on owned assets
619
180
799



At 31 December 2022

3,329
2,459
5,788



Net book value



At 31 December 2022
3,547
1,566
5,113



At 31 December 2021
2,365
597
2,962

The amortisation charge of £799,000 has been recognised within administrative expenses in the Statement of Comprehensive Income.
The addition in the year recognised within Franchise relates to the intangibles assets recognised in the purchase of a new site in the year at Toyota Oxford.



Page 27

 


 
STEVEN EAGELL LIMITED


 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022


14.


Tangible fixed assets






Leasehold improvements
Plant and machinery
Fixtures and fittings
Office equipment
Total

£000
£000
£000
£000
£000



Cost or valuation


At 1 January 2022
1,486
2,047
3,617
2,471
9,621


Additions
699
1,471
1,734
530
4,434


Disposals
(6)
(107)
(227)
(207)
(547)



At 31 December 2022

2,179
3,411
5,124
2,794
13,508



Depreciation


At 1 January 2022
460
1,197
1,447
1,354
4,458


Charge for the year on owned assets
212
491
714
587
2,004


Disposals
(6)
(106)
(225)
(207)
(544)



At 31 December 2022

666
1,582
1,936
1,734
5,918



Net book value



At 31 December 2022
1,513
1,829
3,188
1,060
7,590



At 31 December 2021
1,026
850
2,170
1,117
5,163

Page 28

 
STEVEN EAGELL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

15.


Subsidiary undertakings

The following were subsidiary undertakings of the Company, in which it holds 100% of the ordinary share capital:
- Steven Eagell South Herts Limited (a property rental company) 
- Steven Eagell (Letchworth) Limited (a dormant company)
The registered office address of both subsidiary undertakings is 10 Queen Street Place, London, EC4R 1AG
The results of the Company and its subsidiaries are included within the consolidated financial statements of Steven Eagell Holdings Limited, the ultimate parent company.


16.


Stocks

2022
2021
£000
£000

Finished goods and goods for resale
87,636
58,284

87,636
58,284


The carrying value of stocks are stated net of impairment losses totalling £3,510,000 (2021: £1,920,000). stock impairment losses totalling £3,510,000 (2021: £2,083,000) were recognised in profit and loss.
At 31 December 2022 the Company held £10,841,000 (2021: £17,704,000) of new vehicles on consignment from the supplier. The nature of these stocks means they have not been included in the Company's Statement of Financial Position as the risks and rewards of ownership have not transferred to the Company.


17.


Debtors

2022
2021
£000
£000


Trade debtors
3,869
3,449

Other debtors
54,415
36,020

Prepayments and accrued income
14,303
10,687

72,587
50,156


Included within other debtors is an amount of £33,588,586 (2021: £28,840,000) owed by Steven Eagell Properties Limited, a company under common control.

Page 29

 
STEVEN EAGELL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

18.


Cash and cash equivalents

2022
2021
£000
£000

Cash at bank and in hand
1,572
4,327



19.


Creditors: Amounts falling due within one year

2022
2021
£000
£000

Other loans
-
47

Trade creditors
27,683
17,367

Amounts owed to group undertakings
9,831
9,831

Corporation tax
5,522
4,879

Other taxation and social security
1,374
2,213

Obligations under finance leases
156
-

Other creditors
75,626
43,070

Accruals and deferred income
11,049
12,203

131,241
89,610



20.


Creditors: Amounts falling due after more than one year

2022
2021
£000
£000

Net obligations under finance leases and hire purchase contracts
642
-

642
-



21.


Loans


Analysis of the maturity of loans is given below:


2022
2021
£000
£000

Amounts falling due within one year

Other loans
-
47




-
47


The Group had one loan with Toyota Financial Services (UK) plc totalling £Nil (2021: £47,000). This loan was repaid in the year.

Page 30

 
STEVEN EAGELL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

22.


Hire purchase and finance leases


Minimum lease payments under hire purchase fall due as follows:

2022
2021
£000
£000


Within one year
156
-

Between 1-5 years
641
-

797
-

Page 31

 
STEVEN EAGELL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

23.


Deferred taxation




2022


£000






At beginning of year
(1,433)


Charged to profit or loss
(148)


Arising on business combinations
(450)



At end of year
(2,031)

The provision for deferred taxation is made up as follows:

2022
2021
£000
£000


Accelerated capital allowances
(1,193)
(842)

Other timing differences
49
-

Intangible assets
(887)
(591)

(2,031)
(1,433)


24.


Share capital

2022
2021
£000
£000
Allotted, called up and fully paid



100,000 (2021 - 100,000) Ordinary Shares shares of £1.00 each
100
100

Ordinary shares confer upon the holders rights to any dividends and the right to attend or vote at general meetings of the Company.



25.


Reserves

Profit and loss account

The profit and loss accounts represents accumulated comprehensive income of the year and prior periods less any dividends paid.

Page 32

 
STEVEN EAGELL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

26.
 

Business combinations

During the year the Group acquired a new dealership as part of a separate business combination.

Acquisition of Toyota Oxford

Recognised amounts of identifiable assets acquired and liabilities assumed

Book value
Fair value adjustments
Fair value
£000
£000
£000

Fixed Assets

Tangible
54
-
54

Intangible
-
1,801
1,801

54
1,801
1,855

Current Assets

Stocks
1,197
-
1,197

Debtors
12
-
12

Total Assets
1,263
1,801
3,064

Creditors

Due within one year
(472)
-
(472)

Deferred taxation
-
(450)
(450)

Total Identifiable net assets
791
1,351
2,142


Goodwill
1,149

Total purchase consideration
3,291

Consideration

£000


Cash
3,291

Cash outflow on acquisition

£000


Purchase consideration settled in cash, as above
3,291

Directly attributable costs
214

Net cash outflow on acquisition
3,505

Page 33

 
STEVEN EAGELL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

26.Business combinations (continued)

The results of the Toyota Oxford site since acquisition are as follows:

Current period since acquisition
£000

Turnover
10,956

(Loss) for the period since acquisition
(351)


27.


Pension commitments

The Company operates a defined contribution pension scheme. Contributions are paid to life companies, the assets of which are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the funds and amounted to £1,236,700 (2021: £1,121,000). An amount of £196,469 was outstanding as at the date of the Statement of Financial Position (2021: £NIL).


28.


Commitments under operating leases

At 31 December 2022 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2022
2021
£000
£000


Not later than 1 year
6,398
6,921

Later than 1 year and not later than 5 years
23,786
24,345

Later than 5 years
56,836
30,884

87,020
62,150

Page 34

 
STEVEN EAGELL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

29.


Related party transactions

At the year end the Company owed to its director, S.M. Eagell, £112,950 (2021: £NIL). During the year payments made to or on behalf of S.M. Eagell totalled £9,887,050 (2021: £8,628,658), with repayments totalling £10,000,000 (2021: £7,872,014).
At the year end the Company was owed by its director, D.A. Sherriff, £399,219 (2021: £485,191). 
At the year end the Company was owed by its director, G.M. Smith, £Nil
 (2021: £NIL). 
At the year end the Company was owed by its director, B.S.J. Portsmouth, £847,146 (2021: £256,758). 
Only the directors are considered to be key management personnel. Total remuneration in respect of these individuals is £709,000
 (2021: £662,000).
The Company leased properties at 21 of its sites during the year from Steven Eagell Properties Limited, a company under common control. The total operating lease expense incurred by the Company in respect of these properties totalled £4,321,262 during the year ended 31 December 2022 (2021: £2,218,349).


30.


Post balance sheet events

In June 2023 the Company 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.


31.


Controlling party

The parent undertaking is Steven Eagell Holdings Limited, a company incorporated in England and Wales. The parent undertaking's principal place of business is Power House, Harrison Close, Knowlhill, Milton Keynes, Buckinghamshire, MK5 8PA. These financial statements are consolidated into the parent company's financial statements.
S.M Eagell is considered to be the ultimate controlling party.

Page 35