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COMPANY REGISTRATION NUMBER: 10267434
Anchor Cars Limited
Filleted Unaudited Financial Statements
30 June 2023
Anchor Cars Limited
Statement of Financial Position
30 June 2023
2023
2022
Note
£
£
Fixed assets
Tangible assets
6
9,679
8,594
Current assets
Stocks
7
2,474,536
1,962,241
Debtors
8
60,955
60,098
Cash at bank and in hand
399,838
480,034
------------
------------
2,935,329
2,502,373
Creditors: amounts falling due within one year
9
1,418,056
1,307,532
------------
------------
Net current assets
1,517,273
1,194,841
------------
------------
Total assets less current liabilities
1,526,952
1,203,435
Creditors: amounts falling due after more than one year
10
288,508
389,167
Provisions
Taxation including deferred tax
11
2,420
1,633
Other provisions
11
36,411
23,200
--------
--------
38,831
24,833
------------
------------
Net assets
1,199,613
789,435
------------
------------
Capital and reserves
Called up share capital
13
100
100
Profit and loss account
1,199,513
789,335
------------
---------
Shareholders funds
1,199,613
789,435
------------
---------
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with Section 1A of FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
In accordance with section 444 of the Companies Act 2006, the statement of income and retained earnings has not been delivered.
For the year ending 30 June 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Directors' responsibilities:
- The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476 ;
- The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements .
Anchor Cars Limited
Statement of Financial Position (continued)
30 June 2023
These financial statements were approved by the board of directors and authorised for issue on 24 February 2024 , and are signed on behalf of the board by:
Mr G Joyce
Director
Company registration number: 10267434
Anchor Cars Limited
Notes to the Financial Statements
Year ended 30 June 2023
1. General information
The company is a private company limited by shares, registered in England. The address of the registered office is Anchor House, Bath Road, Padworth, Reading, RG7 5JF, England.
2. Statement of compliance
These financial statements have been prepared in compliance with Section 1A of FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.
The financial statements are prepared in sterling, which is the functional currency of the entity.
Disclosure exemptions
The entity satisfies the criteria of being a qualifying entity as defined in FRS 102.
Revenue recognition
Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax. Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably. 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 it is probable the expenses recognised will be recovered.
Operating leases
Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.
Tangible assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.
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:
Plant and machinery
-
20% straight line
Equipment
-
33% straight line
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 of 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 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.
Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.
Provisions
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.
Financial instruments
A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost. Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately. For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics. Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
4. Staff costs
The average number of persons employed by the company during the year, including the directors, amounted to:
2023
2022
No.
No.
Distribution staff
7
5
Management staff
4
2
----
----
11
7
----
----
The aggregate payroll costs incurred during the year, relating to the above, were:
2023
2022
£
£
Wages and salaries
459,162
272,239
Social security costs
43,912
27,493
Other pension costs
5,459
231,021
---------
---------
508,533
530,753
---------
---------
5. Tax on profit
Major components of tax expense
2023
2022
£
£
Current tax:
UK current tax expense
107,857
78,015
Deferred tax:
Origination and reversal of timing differences
787
( 594)
---------
--------
Tax on profit
108,644
77,421
---------
--------
Reconciliation of tax expense
The tax assessed on the profit on ordinary activities for the year is higher than (2022: the same as) the standard rate of corporation tax in the UK of 20.50 % (2022: 19 %).
2023
2022
£
£
Profit on ordinary activities before taxation
518,822
407,483
---------
---------
Profit on ordinary activities by rate of tax
106,559
77,421
Effect of expenses not deductible for tax purposes
1,743
Effect of capital allowances and depreciation
( 222)
Effect of different UK tax rates on some earnings
564
---------
---------
Tax on profit
108,644
77,421
---------
---------
6. Tangible assets
Plant and machinery
Equipment
Total
£
£
£
Cost
At 1 July 2022
12,500
12,500
Additions
4,458
4,458
--------
-------
--------
At 30 June 2023
12,500
4,458
16,958
--------
-------
--------
Depreciation
At 1 July 2022
3,906
3,906
Charge for the year
3,125
248
3,373
--------
-------
--------
At 30 June 2023
7,031
248
7,279
--------
-------
--------
Carrying amount
At 30 June 2023
5,469
4,210
9,679
--------
-------
--------
At 30 June 2022
8,594
8,594
--------
-------
--------
7. Stocks
2023
2022
£
£
Used Cars stock
2,474,536
1,962,241
------------
------------
8. Debtors
2023
2022
£
£
Trade debtors
60,955
60,098
--------
--------
Trade debtors include amount due from related party of £42,553(2022 £25,000)
9. Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans and overdrafts
755,873
107,033
Trade creditors
307,063
235,444
Corporation tax
107,857
78,015
Social security and other taxes
128,467
82,913
Amount owed to related parties - Trade Vans UK
700,000
Amount owed to related party - Anchor Pension Plan
90,000
90,000
Other creditors
28,796
14,127
------------
------------
1,418,056
1,307,532
------------
------------
Secured Creditors included above comprise:
2023 2022
£ £
Bank loans 745,214 97,033
Amount owed to related party 90,000 90,000
--------- ---------
835,214 187,033
--------- ---------
10. Creditors: amounts falling due after more than one year
2023
2022
£
£
Bank loans and overdrafts
18,508
29,167
Amount owed to related party - Anchor Pension Scheme
270,000
360,000
---------
---------
288,508
389,167
---------
---------
Secured Creditors included above comprise:
2023 2022
£ £
Amount owed to related party 270,000 360,000
--------- ---------
11. Provisions
Warranties
Deferred tax (note 12)
General
Chargeback
Total
£
£
£
£
£
At 1 July 2022
23,200
1,633
24,833
Additions
211
787
10,000
3,000
13,998
--------
-------
--------
-------
--------
At 30 June 2023
23,411
2,420
10,000
3,000
38,831
--------
-------
--------
-------
--------
General Provision relate to after sales customer goodwill allowances. Chargeback provision relate to clawback of finance commissions on lapsed finance agreements within the indemnity period.
12. Deferred tax
The deferred tax included in the statement of financial position is as follows:
2023
2022
£
£
Included in provisions (note 11)
2,420
1,633
-------
-------
The deferred tax account consists of the tax effect of timing differences in respect of:
2023
2022
£
£
Accelerated capital allowances
2,420
1,633
-------
-------
13. Called up share capital
Issued, called up and fully paid
2023
2022
No.
£
No.
£
Ordinary shares of £ 1 each
100
100
100
100
----
----
----
----
14. Operating leases
The total future minimum lease payments under non-cancellable operating leases are as follows:
2023
2022
£
£
Not later than 1 year
85,000
62,724
Later than 1 year and not later than 5 years
170,000
139,895
---------
---------
255,000
202,619
---------
---------
15. Related party transactions
During the year the company entered into the following transactions with related parties:
Transaction value
Balance owed by/(owed to)
2023
2022
2023
2022
£
£
£
£
Anchor Vans Limited- Purchases
909,190
795,682
( 3,627)
( 77,088)
Anchor Vans Limited- Sales
( 104,218)
( 226,084)
20,553
Trade Vans UK Limited- Advance
(706,675)
Trade Vans UK Limited - Sales
(43,140)
(29,880)
22,000
Trade Vans UK Limited - Purchases
252,684
(12,460)
---------
---------
--------
---------
The directors of Anchors Cars Limited are also directors of Anchor Vans Limited and Trade Vans UK Limited. All transactions between the companies are at arm's length. Interest of £13,945 (2022-£32,192) was paid to Trade Vans Limited and computed at 3% above bank rate to the date of repayment. Anchor Pension Scheme The company borrowed a secured loan of £450,000 from Anchor Pension Scheme for a term of 5 years from 4th April 2022 at a fixed rate of 3.00% above the bank base rate per annum. The loan is repayable by five equal instalments. The interest payable on the loan during the year was £34,720 (2022- 4,500). The amount due to Anchor Pension Plan at the year end was £360,000 (2022- £450,000)