REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
FOR |
DRIVALIA UK LTD |
REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
FOR |
DRIVALIA UK LTD |
DRIVALIA UK LTD (REGISTERED NUMBER: 08272510) |
CONTENTS OF THE FINANCIAL STATEMENTS |
for the Year Ended 31 December 2023 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 4 |
Directors' Responsibilities Statement | 6 |
Report of the Independent Auditors | 7 |
Statement of Comprehensive Income | 11 |
Statement of Financial Position | 12 |
Statement of Changes in Equity | 13 |
Notes to the Financial Statements | 14 |
DRIVALIA UK LTD |
COMPANY INFORMATION |
for the Year Ended 31 December 2023 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Statutory Auditor |
Chartered Accountants |
Douglas Bank House |
Wigan Lane |
Wigan |
Lancashire |
WN1 2TB |
DRIVALIA UK LTD (REGISTERED NUMBER: 08272510) |
STRATEGIC REPORT |
for the Year Ended 31 December 2023 |
The directors present their strategic report for the year ended 31 December 2023. |
The Company's principal activity is short-term rental of passenger cars and commercial vehicles through various rental locations across the UK. |
The Company's shareholder is Drivalia SpA, which is a subsidiary of CA Auto Bank SpA (formerly FCA Bank SpA). CA Auto Bank is a 100% subsidiary of Crédit Agricole Consumer Finance ("CACF"). |
REVIEW OF BUSINESS |
2023 was a successful year for the Company with further fleet and revenue growth as well as significant improvements in the brand recognition and customer satisfaction scores. |
Despite unfavourable weather conditions during the summer months impacting the seasonal demand, coupled with large competitor fleets entering the market, the Company managed to secure strong revenues and establish itself as a new and competitive player. |
The supply issues the Company faced in 2022 improved significantly during the year and the Company increased its fleet by further 30%. |
As at the end of December 2023, the Company had a fleet of over 3,977 (3,074 in 2022) vehicles and achieved a result of 4.05M (2.68M in 2022). |
During the year, the Company opened 10 new franchise locations increasing it overall presence in the UK to 34 depots. |
The Company continued improving its process, branding, website, and mobile app in order to improve the customer journey and brand reputation. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The Company's main risk arises from economic factors which impact consumer confidence and spending in the leisure / holiday market as well as increase in pricing for goods and services. The Company has proved itself to be agile in adapting to fluctuations in demand by adapting its fleet and practices to respond to these external changes. |
The Company also operates in a highly competitive market. It has procedures in place to enable it to act tactically when required and remain flexible in its pricing position to ensure the most efficient utilisation of its available fleet. |
The Company is able to meet its liquidity requirements very well and utilises funding support offered by its group / affiliated companies. |
OTHER PERFORMANCE INDICATORS |
The Company managed a fleet of just under 4,000 vehicles as at the end of the year (previous year - 3,074). The average fleet utilisation during the year was 62% (69% in 2022). |
FUTURE BUSINESS DEVELOPMENTS |
In April 2023, Crédit Agricole Consumer Finance SA took over 100% of the capital of CA Auto Bank SpA with the ambition of making it a pan-European player in car financing, rental and mobility. |
This is a strategic axis for Crédit Agricole Group and CA Consumer Finance whereby the newly created pan-European car financing, rental and mobility company will be able to infiltrate the European market to reach: |
- Manufacturers with no pan-European captive companies or ones that requires modernisation |
- New entrants with needs in terms of EV products |
- Independent distributors and white-label dealers |
- Pan-European online platforms, especially in the used car market. |
The potential size of these combined target markets amounts to nearly €120 billion. The Crédit Agricole Group is very proud to rely on the expertise and know-how of CA Auto Bank's teams for its development in the automotive and mobility market and is highly confident in the success of these plans. |
The Company will be a key part of the group's strategy for growth in the rental and mobility market in the UK. |
DRIVALIA UK LTD (REGISTERED NUMBER: 08272510) |
STRATEGIC REPORT |
for the Year Ended 31 December 2023 |
SECTION 172 (1) STATEMENT - DIRECTORS DUTY TO PROMOTE SUCCESS OF THE COMPANY |
During 2023 market trends and conditions, in particular those impacting consumer behaviours, have been relevant in shaping the decisions of the Board. As such, attention has been paid to the various stakeholders in the business, more specifically: customers, intermediaries, suppliers, shareholders and employees. |
Despite more fierce competition and lower demand during the year, the Company increased its year-on-year revenues, increased its fleet and further improved its operational processes, laying foundations for future growth. Directors are confident that the Company has the necessary resources, knowhow, and group support to take advantage of the expansion of the Drivalia brand in terms of product offering as well as increased presence in various locations across the UK and Europe. |
The directors have not recommended the payment of a dividend during the year. The directors have confidence that the parent company / group will continue to support its growth in the coming years. |
The directors monitor the KPIs of the business in line with the group standards. The Company is continuously reviewing the key processes and risks, always striving for further improvements in its brand presence as well as process automation and internal controls. |
The directors are aware of the strategic nature of the Company's support to the Crédit Agricole Group's ambitions in the rental and mobility market. All decisions are taken keeping in mind the long-term, sustainable and strategic interests of the shareholder. The Company's focus is on capturing new opportunities in the era of mobility with a strong commitment to meet customers' needs in terms of electrification, connectivity, autonomous driving and shared ownership by offering a range of innovative solutions. |
ENGAGEMENT WITH SUPPLIERS, CUSTOMERS AND OTHERS |
The Company measures customer satisfaction through external metrics such as Google reviews and intends to put in place more tools to collect, measure and monitor customer feedback. The Company is continuously reviewing its key processes in order to maintain a good control and governance structure, always delivering fair outcomes to all stakeholders. |
EMPLOYEE INVOLVEMENT |
Over the next few quarters, the Company is intending on further aligning its policies and procedures with CA Auto Bank's Group Code of Conduct. The Company continued the engagement with its employees during 2023. |
DISABLED EMPLOYEES |
The group gives full consideration to applications for employment from disabled persons where the candidates' particular aptitudes and abilities are consistent with adequately meeting the requirements of the role. Opportunities are available to disabled employees for training, career development and promotion. |
Where existing employees become disabled, it is the group's policy to provide continuing employment wherever practicable in the same or an alternative position and to provide appropriate training to achieve this aim. |
ON BEHALF OF THE BOARD: |
DRIVALIA UK LTD (REGISTERED NUMBER: 08272510) |
REPORT OF THE DIRECTORS |
for the Year Ended 31 December 2023 |
The directors present their report with the financial statements of the company for the year ended 31 December 2023. |
DIVIDENDS |
No dividends will be distributed for the year ended 31 December 2023. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 January 2023 to the date of this report. |
GOING CONCERN |
In accordance with the best principles of corporate governance it is incumbent on the Board to review the status of Drivalia UK Limited (the Company) as a "going concern" and to make a statement to that effect in the Director's Report that is published in the Company's financial statements. |
The Board recommends the adoption of the financial statements of the Company for the year ended 31st December 2023 on a going concern basis in light of the following factors: |
SHAREHOLDING STRUCTURE |
The Company's parent company is Drivalia SpA, which in turn is the wholly owned subsidiary of CA Auto Bank SpA, a company registered in Italy. CA Auto Bank SpA (formerly FCA Bank SpA) is wholly owned by Crédit Agricole Consumer Finance SA, the wholly owned consumer credit subsidiary of Crédit Agricole SA. |
CA Auto Bank's goal is to become a leading independent, multi-brand player in vehicle financing and leasing and in the mobility sector. The Bank, which will retain its European headquarters in Turin, has a strong international presence and a target of at least €10 billion in lending portfolio by 2026 and the ambition to achieve, by 2030, 80% of the portfolio of new vehicles being "green" (either full electric or hybrid). CA Auto Bank, which positions itself as the new "mobility bank for a better planet," intends to lead the industry's energy transition, making access to zero and low-emission vehicles increasingly available and affordable for all. |
The diversity of funding resources available to the Company's parent as a result of its Bank status enable it to offer innovative products and services to its customers. |
The directors believe that the parent company is committed to the continued future success of the business. |
On the basis of their assessment of the Company's financial position and of reasonable expectation of continuous support from the group, the Company's directors are confident that the Company will be able to continue to trade for the foreseeable future, being no less than twelve months from the date that the financial statements were approved. |
BUSINESS PROSPECTS |
Beyond 2023, the Company will remain part of Crédit Agricole Group's ambition to create a pan-European car financing, rental and mobility company. This ambition gives the Company the possibility to target a wide market opportunity. The in-house expertise and resources combined with the funding diversity offered to the Company's parent, will enable it to offer innovative and competitive mobility solutions to this enlarged market. |
DRIVALIA UK LTD (REGISTERED NUMBER: 08272510) |
REPORT OF THE DIRECTORS |
for the Year Ended 31 December 2023 |
FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES |
The Company's liquidity needs are met with funding facility from group companies. Over the course of the year, the Company formalised its strategy and decided on leasing the future fleet from its sister company, Drivalia Lease UK, with the aim of minimising the risk and optimising its holding costs. Most of its debtors are from its broker network and are current in nature. |
STRATEGIC NATURE OF BUSINESS |
The UK is an important strategic market for the CA Auto Bank Group. The Company's operations in turn are important to offer mobility solutions to the customers and a part of the CA Auto Bank and Crédit Agricole strategy of being a leading independent player in the consumer finance and mobility sector. |
RESOURCES |
The Company anticipates receiving continued support from the parent company and its group companies in relation to the funding needs and other support / services. |
FINANCIAL RESULTS |
The Company has continued to perform positively, and the financial results exceeded prior year results. The directors further expect that the Company will maintain reasonable levels of profitability, Return on Assets (ROA) and Return on Equity (ROE) in 2024 and beyond. |
In light of the above factors, the Company continues to adopt the going concern basis in preparing the annual report and accounts. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
AUDITORS |
The auditors, Fairhurst, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
DRIVALIA UK LTD (REGISTERED NUMBER: 08272510) |
DIRECTORS' RESPONSIBILITIES STATEMENT |
for the Year Ended 31 December 2023 |
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and 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 and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | state whether applicable 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 enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
DRIVALIA UK LTD |
Opinion |
We have audited the financial statements of Drivalia UK Ltd (the 'company') for the year ended 31 December 2023 which comprise the Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the company's affairs as at 31 December 2023 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 UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Strategic Report, the Report of the Directors and the Directors' Responsibilities Statement, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
DRIVALIA UK LTD |
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 Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept, 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 six, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the 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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
DRIVALIA UK LTD |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
Extent to which the audit was considered capable of detecting irregularities including fraud |
We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion. |
However, it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud. |
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows: |
- | the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; |
- | we identified the laws and regulations that are applicable to the company through discussions with directors and other management and focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, United Kingdom direct and indirect tax regulations, employment, environmental and health and safety regulations; |
- | we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and |
- | identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. |
We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining and understanding of how fraud might occur, by: |
- | making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and |
- | considered the internal control in place to mitigate risks of fraud and non-compliance with laws and regulations. |
To address the risk of fraud through management bias and override of controls, we: |
- | performed analytical procedures to identify any unusual or unexpected relationships; |
- | tested journal entries to identify unusual transactions; and |
- | assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias. |
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: |
- | agreeing financial statement disclosures to underlying supporting documentation; |
- | enquiring of management as to actual and potential litigation and claims; and |
- | reviewing correspondence with HMRC, relevant regulators and the company's legal advisors. |
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspections of regulatory and legal correspondence, if any. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
DRIVALIA UK LTD |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Statutory Auditor |
Chartered Accountants |
Douglas Bank House |
Wigan Lane |
Wigan |
Lancashire |
WN1 2TB |
DRIVALIA UK LTD (REGISTERED NUMBER: 08272510) |
STATEMENT OF COMPREHENSIVE |
INCOME |
for the Year Ended 31 December 2023 |
2023 | 2022 |
Notes | £ | £ |
TURNOVER |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
5,319,631 | 5,161,004 |
Impairment of fixed assets | 4 | ( |
) |
OPERATING PROFIT | 7 |
Interest receivable and similar income |
6,079,657 | 4,345,609 |
Interest payable and similar expenses | 8 |
PROFIT BEFORE TAXATION |
Tax on profit | 9 |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME |
Revaluation of tangible assets | ( |
) |
Income tax relating to other comprehensive income |
OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX |
( |
) |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
DRIVALIA UK LTD (REGISTERED NUMBER: 08272510) |
STATEMENT OF FINANCIAL POSITION |
31 December 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 10 |
Tangible assets | 11 |
CURRENT ASSETS |
Stocks | 12 |
Debtors | 13 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 14 |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
15 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 19 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 20 |
Retained earnings | 21 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
DRIVALIA UK LTD (REGISTERED NUMBER: 08272510) |
STATEMENT OF CHANGES IN EQUITY |
for the Year Ended 31 December 2023 |
Called up |
share | Retained | Revaluation | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1 January 2022 | ( |
) | ( |
) |
Changes in equity |
Total comprehensive income | - | ( |
) |
Balance at 31 December 2022 |
Changes in equity |
Total comprehensive income | - |
Balance at 31 December 2023 |
DRIVALIA UK LTD (REGISTERED NUMBER: 08272510) |
NOTES TO THE FINANCIAL STATEMENTS |
for the Year Ended 31 December 2023 |
1. | STATUTORY INFORMATION |
Drivalia UK Ltd is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention. |
As the company meets the requirements for a qualifying entity under FRS 102, it has taken advantage of the following exemptions as allowed under the reduced disclosures for subsidiaries: |
- The requirement of Section 7 Statement of Cash Flows 3.17(d); |
- The requirement of Section 33 Related Party Disclosures paragraph 33.7: |
- The Reduced Disclosures for Subsidiaries under FRS 102. |
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 and settlement discounts, where applicable. |
Where a non-refundable deposit has been received in advance the revenue is recognised. Any refundable amounts received in advance of bookings are held as deferred income and recognised when the rental occurs. |
Goodwill |
Computer software |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
Computer software is being amortised evenly over its estimated useful life of three or five years. |
Tangible fixed assets |
Fixtures and fittings | - |
Motor vehicles | - |
Computer equipment | - |
In accordance with the provisions of FRS102 Section 17, the company adopts the revaluation model to measure property, plant and equipment whereby revaluations will be made with sufficient regularity to ensure that the carrying amount does not differ materially from that which would be determined using fair value at the end of the reporting period. |
DRIVALIA UK LTD (REGISTERED NUMBER: 08272510) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31 December 2023 |
2. | ACCOUNTING POLICIES - continued |
Financial instruments |
Financial assets |
The Company considers that its financial assets comprise of receivables only. These assets are non-derivative financial assets with fixed or determinable payments. They arise principally through the provision of goods and services to customers (trade receivables). They are carried at cost less provision for impairment. |
Impairment provisions are recognised when there is objective evidence (such as significant financial difficulties on the part of the counterparty or default or significant delay in payment) that the Company will be unable to collect all the amounts due. For trade receivables, which are recorded net, such provisions are recognised within administrative expenses in the income statement. |
Financial liabilities |
The Company's financial liabilities include bank overdrafts and loans, other loans, trade and other payables and finance leasing liabilities. |
Financial liabilities are recognised when the Company becomes a party to the contractual agreements of the instrument. All interest related charges are recognised as an expense in 'finance costs' in the statement of profit or loss. |
Loans, which are raised for the support of the Company's operations are recognised at fair value. Finance charges are charged to the statement of profit or loss using the effective interest method and are added to the carrying amount of the instrument to the extent that they are not settled in the period in which they arise. |
Trade payables are recognised initially at their fair value and, if appropriate, remeasured at amortised cost less settlement payments. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
DRIVALIA UK LTD (REGISTERED NUMBER: 08272510) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31 December 2023 |
2. | ACCOUNTING POLICIES - continued |
Foreign currencies transactions and balances |
Functional and presentation currency |
The functional currency of the company is measured using the currency of the primary economic environment in which that entity operates. The financial statements are presented in Pound Sterling which is the company's functional and presentation currency. |
Transaction and balances |
Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the date of the transaction. Foreign currency monetary items are translated at the year-end exchange rate. |
Exchange differences arising on the translation of monetary items are recognised in the statement of comprehensive income. |
Leased assets |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
Impairment of fixed assets |
At each reporting period end date, the company reviews the carrying value of assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such impairment 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. |
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in the profit or loss, unless the relevant asset (or cash-generating unit) is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease. |
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in the profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase. |
DRIVALIA UK LTD (REGISTERED NUMBER: 08272510) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31 December 2023 |
3. | 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 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 affect only that period, or in the period of the revision and future periods where the revision affect both current and future periods. |
Key sources of estimation uncertainty |
Motor vehicles owned by the company and available for short term hire are held as fixed assets and depreciated accordingly in line with the appropriate accounting policies. However, the market value of motor vehicles varies constantly and therefore the company attempts to mitigate any risk by frequently reviewing the carrying values of its fleet vehicles using historical experience and independent industry valuation tools. An impairment loss can then be recognised, or a revaluation provision provided for where necessary. Calculation of these provisions requires judgements to be made, which includes the forecast of consumer demand and the evaluation of the current economic environment. |
4. | IMPAIRMENT OF FIXED ASSETS |
2023 | 2022 |
£ | £ |
Reversal of impairment losses/ |
(impairment losses) for |
tangible fixed assets | ( |
) |
At the year end the directors have undertaken an impairment review of the tangible fixed assets resulting in a £750,771 reversal of previously recognised impairment losses (2022 - £815,395 impairment loss). |
5. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
2023 | 2022 |
Administration |
6. | DIRECTORS' EMOLUMENTS |
2023 | 2022 |
£ | £ |
Directors' remuneration |
DRIVALIA UK LTD (REGISTERED NUMBER: 08272510) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31 December 2023 |
7. | OPERATING PROFIT |
The operating profit is stated after charging: |
2023 | 2022 |
£ | £ |
Other operating leases |
Depreciation - owned assets |
Loss on disposal of fixed assets |
Goodwill amortisation |
Computer software amortisation |
Auditors' remuneration |
Foreign exchange differences |
VAT partial exemption | 492,356 | 261,204 |
8. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
£ | £ |
Loan interest |
Interest on overdue taxation |
Bank interest paid |
Interest Expense - Shadow |
9. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2023 | 2022 |
£ | £ |
Current tax: |
UK corporation tax |
Prior year under provision | 197,675 | (90 | ) |
Total current tax |
Deferred tax | ( |
) |
Tax on profit |
Tax effects relating to effects of other comprehensive income |
There were no tax effects for the year ended 31 December 2023. |
2022 |
Gross | Tax | Net |
£ | £ | £ |
Revaluation of tangible assets | ( |
) | - | (345,068 | ) |
DRIVALIA UK LTD (REGISTERED NUMBER: 08272510) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31 December 2023 |
10. | INTANGIBLE FIXED ASSETS |
Computer |
Goodwill | software | Totals |
£ | £ | £ |
COST OR VALUATION |
At 1 January 2023 |
Additions |
Reclassification/transfer |
At 31 December 2023 |
AMORTISATION |
At 1 January 2023 |
Amortisation for year |
Reclassification/transfer |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
Cost or valuation at 31 December 2023 is represented by: |
Computer |
Goodwill | software | Totals |
£ | £ | £ |
Valuation in 2020 | 2,368,445 | - | 2,368,445 |
Valuation in 2021 | (252,535 | ) | - | (252,535 | ) |
Cost | - | 364,120 | 364,120 |
2,115,910 | 364,120 | 2,480,030 |
DRIVALIA UK LTD (REGISTERED NUMBER: 08272510) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31 December 2023 |
11. | TANGIBLE FIXED ASSETS |
Fixtures |
and | Motor | Computer |
fittings | vehicles | equipment | Totals |
£ | £ | £ | £ |
COST OR VALUATION |
At 1 January 2023 |
Additions |
Disposals | ( |
) | ( |
) |
Reclassification/transfer | ( |
) | ( |
) |
At 31 December 2023 |
DEPRECIATION |
At 1 January 2023 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
Reversal of impairments | ( |
) | ( |
) |
Reclassification/transfer | ( |
) | ( |
) |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
At the year end the directors have undertaken an impairment review of the tangible fixed assets resulting in a £750,771 reversal of previously recognised impairment losses (2022 - £815,395 impairment loss). |
Cost or valuation at 31 December 2023 is represented by: |
Fixtures |
and | Motor | Computer |
fittings | vehicles | equipment | Totals |
£ | £ | £ | £ |
Valuation in 2021 | - | 769,112 | - | 769,112 |
Valuation in 2022 | - | (769,112 | ) | - | (769,112 | ) |
Cost | 848,534 | 14,026,393 | 306,643 | 15,181,570 |
848,534 | 14,026,393 | 306,643 | 15,181,570 |
12. | STOCKS |
2023 | 2022 |
£ | £ |
Stocks |
DRIVALIA UK LTD (REGISTERED NUMBER: 08272510) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31 December 2023 |
13. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Trade debtors |
Amounts owed by group undertakings |
Other debtors |
Tax |
VAT |
Prepayments and accrued income |
14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Bank loans and overdrafts (see note 16) |
Loan from Ultimate Controlling Party (see note 16) |
Hire purchase contracts (see note 17) |
Trade creditors |
Amounts owed to associates | - | 52,445 |
Social security and other taxes |
Other creditors | 14,520 | (1,097 | ) |
Accrued expenses |
15. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2023 | 2022 |
£ | £ |
Bank loans (see note 16) |
Hire purchase contracts (see note 17) |
16. | LOANS |
An analysis of the maturity of loans is given below: |
2023 | 2022 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank loans |
Loan from Ultimate Controlling Party |
Amounts falling due between one and two years: |
Bank loans - 1-2 years |
Amounts falling due between two and five years: |
Bank loans - 2-5 years |
DRIVALIA UK LTD (REGISTERED NUMBER: 08272510) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31 December 2023 |
17. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Hire purchase contracts |
2023 | 2022 |
£ | £ |
Gross obligations repayable: |
Within one year |
Between one and five years |
Finance charges repayable: |
Within one year |
Between one and five years |
Net obligations repayable: |
Within one year |
Between one and five years |
Non-cancellable operating | leases |
2023 | 2022 |
£ | £ |
Within one year |
Between one and five years |
18. | SECURED DEBTS |
HP liabilities and vehicle finance are secured by the underlying assets. |
19. | PROVISIONS FOR LIABILITIES |
2023 | 2022 |
£ | £ |
Deferred tax | 67,120 | 430,366 |
Other provisions | - | 1,971,872 |
Deferred | Other |
tax | provisions |
£ | £ |
Balance at 1 January 2023 |
Credit to Statement of Comprehensive Income during year | ( |
) | ( |
) |
Balance at 31 December 2023 |
DRIVALIA UK LTD (REGISTERED NUMBER: 08272510) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31 December 2023 |
19. | PROVISIONS FOR LIABILITIES - continued |
Other provisions related to the costs which the company anticipated be would incurred in relation to the damages to hired vehicles when they are returned to the contract hire companies. However, the company has changed the way it operates in this year so that the fleet is maintained to a higher standard and therefore no defleet costs are anticipated. |
20. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary | £1 | 100 | 100 |
21. | RESERVES |
Retained |
earnings |
£ |
At 1 January 2023 |
Profit for the year |
At 31 December 2023 |
22. | RELATED PARTY DISCLOSURES |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
23. | ULTIMATE CONTROLLING PARTY |
Drivalia SpA, a company registered in Italy, is the immediate holding company. Drivalia SpA is owned 100% by CA Auto Bank SpA. CA Auto Bank SpA is owned 100% by Crédit Agricole Consumer Finance SA (CACF), the 100% owned consumer credit subsidiary of Crédit Agricole S.A and the ultimate controlling party. |
Consolidated accounts of CA Auto Bank SpA Group may be obtained from the company secretary, CA Auto Bank SpA, Corso Orbassano 367, Turin, Italy. |