Company Registration No. 01013843 (England and Wales)
THE DEARNSIDE MOTOR COMPANY LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2023
PAGES FOR FILING WITH REGISTRAR
THE DEARNSIDE MOTOR COMPANY LIMITED
CONTENTS
Page
Balance sheet
1
Statement of changes in equity
2
Notes to the financial statements
3 - 8
THE DEARNSIDE MOTOR COMPANY LIMITED
BALANCE SHEET
AS AT
30 APRIL 2023
30 April 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
4
6,814,759
6,953,127
Current assets
Stocks
5
85,607
123,984
Debtors
6
409,977
828,962
Cash at bank and in hand
194,029
62,423
689,613
1,015,369
Creditors: amounts falling due within one year
7
(1,003,453)
(853,516)
Net current (liabilities)/assets
(313,840)
161,853
Total assets less current liabilities
6,500,919
7,114,980
Creditors: amounts falling due after more than one year
8
-
0
(1,074,378)
Provisions for liabilities
9
(880,450)
(880,453)
Net assets
5,620,469
5,160,149
Capital and reserves
Called up share capital
5,000
5,000
Revaluation reserve
3,846,135
3,942,490
Profit and loss reserves
1,769,334
1,212,659
Total equity
5,620,469
5,160,149

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the board of directors and authorised for issue on 31 January 2024 and are signed on its behalf by:
S R Sejpal
Director
Company Registration No. 01013843
THE DEARNSIDE MOTOR COMPANY LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2023
- 2 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
£
£
£
£
Balance at 1 May 2021
5,000
2,850,789
739,512
3,595,301
Year ended 30 April 2022:
Profit for the year
-
-
425,196
425,196
Other comprehensive income:
Revaluation of tangible fixed assets
-
1,648,785
-
1,648,785
Tax relating to other comprehensive income
-
(509,133)
-
0
(509,133)
Total comprehensive income for the year
-
0
1,139,652
425,196
1,564,848
Transfers
-
(47,951)
47,951
-
Balance at 30 April 2022
5,000
3,942,490
1,212,659
5,160,149
Year ended 30 April 2023:
Profit and total comprehensive income for the year
-
-
460,320
460,320
Transfers
-
(96,355)
96,355
-
Balance at 30 April 2023
5,000
3,846,135
1,769,334
5,620,469
THE DEARNSIDE MOTOR COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2023
- 3 -
1
Accounting policies
Company information

The Dearnside Motor Company Limited is a private company limited by shares incorporated in England and Wales. The registered office is The Hollies, Chorleywood Road, Rickmansworth, Hertfordshire, WD3 4ER.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties. The principal accounting policies adopted are set out below.

1.2
Going concern

The company has net truecurrent liabilities of £313,840 after taking into account amounts owed to group undertakings of £364,115, owed to the immediate and ultimate parent companies. The parent company have confirmed that they will continue to provide financial support to the company for as long as this is necessary.

 

Accordingly, at the time of approving the financial statements, the director has a reasonable expectation that the company has adequate resources to continue in operation for the foreseeable future due to the continued support of the group. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.

 

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer, the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.4
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold building
2% Straight line
Plant and equipment
20% and 25% reducing balance

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

Freehold land is not depreciated.

 

An annual transfer is made between the revaluation reserve and profit and loss reserve representing the excess depreciation arriving on revalued assets.

THE DEARNSIDE MOTOR COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
1
Accounting policies
(Continued)
- 4 -
1.5
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

1.6
Stocks

The stock figure per the accounts is comprised of wet stock, i.e. fuel.


Wet stock is valued at the most recent purchase cost, based on prevailing fuel prices at the year end.


At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.7
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet 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 debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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. Financial assets classified as receivable within one year are not amortised.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

1.8
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

THE DEARNSIDE MOTOR COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
1
Accounting policies
(Continued)
- 5 -
Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.9
Leases

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease.

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

THE DEARNSIDE MOTOR COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
2
Judgements and key sources of estimation uncertainty
(Continued)
- 6 -
Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Valuation of property

The properties held within tangible fixed assets did not have any external valuation in the year and were valued using the directors' valuation at year-end, on the same basis as the independent valuation completed on group properties in previous years. The director's valuation is based upon a EBITDA multiple method, supplemented by the director's industry experience and economic factors.

Depreciation on freehold building

The company recognises depreciation at 2% straight line on its freehold buildings used in the business. The land value attributed to the company's properties has been estimated at 10%, therefore depreciation is only charged on the remaining 90% which is the estimated cost of the building. This estimate is based on the expected value of the land element of the property based on the remedial work required and restrictions on development meaning the inherent value is significantly less than that of the building

Deferred tax

Deferred tax is calculated at the expected future tax rate. Tax rates are subject to change and thus this estimate is subject to change in future periods.

3
Employees

There were no employees during the current or previous year.

4
Tangible fixed assets
Freehold building
Plant and equipment
Total
£
£
£
Cost or valuation
At 1 May 2022 and 30 April 2023
6,947,300
545,433
7,492,733
Depreciation and impairment
At 1 May 2022
-
0
539,606
539,606
Depreciation charged in the year
137,164
1,204
138,368
At 30 April 2023
137,164
540,810
677,974
Carrying amount
At 30 April 2023
6,810,136
4,623
6,814,759
At 30 April 2022
6,947,300
5,827
6,953,127

The freehold properties were valued by the directors at 30 April 2023 on the same basis as historic, independent valuations using the EBITDA multiple method, supplemented by the directors industry experience and economic factors. The directors believe that there is no amendment to the value of the properties this year.

Freehold property is carried at valuation. If freehold property was measured using the cost model, the carrying amounts would have been approximately £2,089,623 (2022: £2,130,432), being cost £2,309,550 (2022: £2,309,550) and depreciation £219,927 (2022: £179,118).

THE DEARNSIDE MOTOR COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
- 7 -
5
Stocks
2023
2022
£
£
Stocks
85,607
123,984
6
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
275,180
315,648
Amounts owed by group undertakings
-
0
450,388
Other debtors
60,000
-
0
Prepayments and accrued income
74,797
62,926
409,977
828,962
7
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans
-
0
65,790
Trade creditors
456,255
583,470
Amounts owed to group undertakings
364,115
-
0
Corporation tax
88,677
118,427
Other taxation and social security
57,439
43,802
Accruals and deferred income
36,967
42,027
1,003,453
853,516

Included in trade creditors is a balance of £nil (2022: £354,395) which is secured by a fixed and floating charge over the company's assets.

8
Creditors: amounts falling due after more than one year
2023
2022
£
£
Bank loans and overdrafts
-
0
1,074,378

The bank loan bears interest at Base Rate Plus 2.71% per annum and has a repayment term of 15 years. The loan is repayable in 180 consecutive monthly instalments representing the principal and interest, commencing one month after draw-down. The loan is secured by a first legal charge over one the company's freehold properties and a fixed and floating charge over the assets of the company.

 

The bank loan was repaid early during the current year on 22 December 2022.

 

THE DEARNSIDE MOTOR COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
8
Creditors: amounts falling due after more than one year
(Continued)
- 8 -
Creditors which fall due after five years are as follows:
2023
2022
£
£
Payable by instalments
-
799,200
9
Provisions for liabilities
2023
2022
£
£
Deferred tax liabilities
880,450
880,453
10
Audit report information

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:

The auditor's report was unqualified.

The senior statutory auditor was Darshna Choudhury.
The auditor was HW Fisher LLP.
11
Financial commitments, guarantees and contingent liabilities

The bank loans held by the parent company are secured over one of the properties of the company and other properties of the parent company, as well as by a cross-guarantee given by the company and the parent company for these bank loans. At 30 April 2023 the loan in Platinum Retail Limited accounts for which The Dearnside Motor Company Limited are providing a cross-guarantee is £22,316,400.

12
Parent company

The ultimate parent undertaking is Platinum Retail Limited, a company incorporated in the United Kingdom, whose registered address is The Hollies, Chorleywood Road, Rickmansworth, Hertfordshire, WD3 4ER.

The ultimate controlling party is S R Sejpal

 

The results of the company are included in the consolidated accounts of Platinum Retail Limited, which are publicly available from Companies House.

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