Company registration number 01687128 (England and Wales)
FINE CARS (LEE-ON-SOLENT) LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
PAGES FOR FILING WITH REGISTRAR
FINE CARS (LEE-ON-SOLENT) LIMITED
CONTENTS
Page
Accountants' report
1
Statement of financial position
2 - 3
Notes to the financial statements
4 - 10
FINE CARS (LEE-ON-SOLENT) LIMITED
CHARTERED ACCOUNTANTS' REPORT TO THE BOARD OF DIRECTORS ON THE PREPARATION OF THE UNAUDITED STATUTORY FINANCIAL STATEMENTS OF FINE CARS (LEE-ON-SOLENT) LIMITED FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Fine Cars (Lee-on-Solent) Limited for the year ended 31 December 2023 which comprise the statement of income and retained earnings, the statement of financial position and the related notes from the company’s accounting records and from information and explanations you have given us.

 

As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed at http://www.icaew.com/en/members/regulations-standards-and-guidance.

This report is made solely to the board of directors of Fine Cars (Lee-on-Solent) Limited, as a body, in accordance with the terms of our engagement letter dated 11 July 2023. Our work has been undertaken solely to prepare for your approval the financial statements of Fine Cars (Lee-on-Solent) Limited and state those matters that we have agreed to state to the board of directors of Fine Cars (Lee-on-Solent) Limited, as a body, in this report in accordance with ICAEW Technical Release 07/16 AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Fine Cars (Lee-on-Solent) Limited and its board of directors as a body, for our work or for this report.

It is your duty to ensure that Fine Cars (Lee-on-Solent) Limited has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and profit of Fine Cars (Lee-on-Solent) Limited. You consider that Fine Cars (Lee-on-Solent) Limited is exempt from the statutory audit requirement for the year.

We have not been instructed to carry out an audit or a review of the financial statements of Fine Cars (Lee-on-Solent) Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.

Carpenter Box
2 April 2024
Chartered Accountants
Amelia House
Crescent Road
Worthing
West Sussex
BN11 1RL
FINE CARS (LEE-ON-SOLENT) LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2023
31 December 2023
- 2 -
2023
2022
Notes
£
£
£
£
Non-current assets
Property, plant and equipment
4
1,144,447
948,375
Investment property
5
695,000
945,000
1,839,447
1,893,375
Current assets
Inventories
6
2,243,982
2,135,836
Trade and other receivables
7
90,680
151,914
Cash and cash equivalents
493,446
632,804
2,828,108
2,920,554
Current liabilities
8
(738,577)
(1,067,595)
Net current assets
2,089,531
1,852,959
Total assets less current liabilities
3,928,978
3,746,334
Provisions for liabilities
9
(43,100)
(52,900)
Net assets
3,885,878
3,693,434
Equity
Called up share capital
11
97
97
Revaluation reserve
12,803
12,803
Capital redemption reserve
1
1
Retained earnings
12
3,872,977
3,680,533
Total equity
3,885,878
3,693,434

The directors of the company have elected not to include a copy of the income statement within the financial statements.true

For the financial year ended 31 December 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

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.

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

FINE CARS (LEE-ON-SOLENT) LIMITED
STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT
31 DECEMBER 2023
31 December 2023
- 3 -
The financial statements were approved by the board of directors and authorised for issue on 2 April 2024 and are signed on its behalf by:
Mr B C Duke
Director
Company registration number 01687128 (England and Wales)
FINE CARS (LEE-ON-SOLENT) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
1
Accounting policies
Company information

Fine Cars (Lee-on-Solent) Limited is a private company limited by shares incorporated in England and Wales. The registered office is 178 Portsmouth Road, Lee-on-Solent, Hampshire, PO13 9AB.

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 £1.

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

1.2
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. During 2023, following discussions with one of the franchises held, there was a restructuring of the company with the departure of this particular franchise at year end. This action was taken in preference to relocating the premises within the current economic climate, also in conjunction with the uncertainty that the ZEV mandate could have on the business in terms of manufacturer-set targets for EVs (alongside a costly relocation). The directors have considered relevant information, including the company’s principal risks and uncertainties, the annual budget, forecast future cash flows and the impact of subsequent events in making their assessment.  Based on these assessments and having regard to the resources available to the entity, the directors have concluded that there is no material uncertainty and that they can continue to adopt the going concern basis in preparing the annual report and financial statements.

1.3
Revenue

Revenue 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.

1.4
Property, plant and equipment

Property, plant and equipment are initially measured at cost and subsequently measured at cost, 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 land and buildings
Nil
Leasehold land and buildings
20% straight line
Plant and equipment
20% diminishing value
Fixtures and fittings
20% diminishing value
Motor vehicles
25% diminishing value

Property improvements are maintained to such a standard that their estimated residual value is not materially less than their cost, therefore no depreciation is charged on freehold buildings as it is not material.

 

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.

FINE CARS (LEE-ON-SOLENT) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 5 -
1.5
Investment properties

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. The surplus or deficit on revaluation is recognised in profit or loss.

1.6
Impairment of non-current assets

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible 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.

1.7
Inventories

Inventories are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, those overheads that have been incurred in bringing the inventories to their present location and condition.

 

Vehicles on consignment are not recognised in the financial statements until title to the property has passed to the company, either at sale or after a period agreed with the supplier.

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

1.8
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and includes deposits held at call with banks and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.9
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.

Basic financial assets

Basic financial assets, which include trade and other receivables and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost.

Basic financial liabilities

Basic financial liabilities, including trade and other payables, 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 payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

1.10
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.11
Taxation

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

Current tax

The tax currently payable is based on taxable profit for the year.

FINE CARS (LEE-ON-SOLENT) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 6 -
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.

1.12
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense.

1.13
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.14
Leases

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

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.

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.

Revaluation of investment properties

Investment properties are reviewed annually using the fair value method. The fair value is determined by reference to market evidence of transaction prices for similar properties in the directors opinion.

3
Employees

The average monthly number of persons (including directors) employed by the company during the year was 24 (2022 - 26).

FINE CARS (LEE-ON-SOLENT) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
4
Property, plant and equipment
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost or valuation
At 1 January 2023
1,468,770
180,981
1,649,751
Additions
202,100
458
202,558
At 31 December 2023
1,670,870
181,439
1,852,309
Depreciation and impairment
At 1 January 2023
547,997
153,379
701,376
Depreciation charged in the year
953
5,533
6,486
At 31 December 2023
548,950
158,912
707,862
Carrying amount
At 31 December 2023
1,121,920
22,527
1,144,447
At 31 December 2022
920,773
27,602
948,375

The company applied the transitional arrangements of Section 35 of FRS 102 in a previous year and used a relevant valuation as the deemed cost for certain freehold land and buildings. As the assets are sold an appropriate transfer is made from the revaluation reserve to retained earnings.

If revalued land and buildings were stated on an historical cost basis rather than a fair value basis, the total amounts included would have been as follows:

2023
2022
£
£
Cost
1,072,671
1,072,671
Accumulated depreciation and impairment
(165,654)
(165,654)
Carrying value
907,017
907,017
5
Investment property
2023
£
Fair value
At 1 January 2023
945,000
Disposals
(250,000)
At 31 December 2023
695,000

The investment properties were valued by the directors at the period end date and it was deemed that there was no valuation change from the previous period end date. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties.

FINE CARS (LEE-ON-SOLENT) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
6
Inventories
2023
2022
£
£
Inventories
2,243,982
2,135,836

At the period end date, the company held motor vehicles on consignment valued at £nil (2022 - £nil); these are not included within the inventory figures in the statement of financial position.

7
Trade and other receivables
2023
2022
Amounts falling due within one year:
£
£
Trade receivables
65,884
84,098
Other receivables
24,796
67,816
90,680
151,914
8
Current liabilities
2023
2022
£
£
Trade payables
475,746
749,852
Taxation and social security
190,049
157,505
Other payables
72,782
160,238
738,577
1,067,595

Included within trade payables is an amount of £401,399 (2022 - £639,916) which is secured by the inventory to which it relates.

9
Provisions for liabilities
2023
2022
£
£
Deferred tax liabilities
10
43,100
52,900
FINE CARS (LEE-ON-SOLENT) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
10
Deferred taxation

Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
5,300
6,300
Revaluations
37,800
46,600
43,100
52,900
2023
Movements in the year:
£
Liability at 1 January 2023
52,900
Credit to profit or loss
(1,000)
Transfer on disposal
(8,800)
Liability at 31 December 2023
43,100

The directors have considered the deferred tax assets and liabilities notes above and concluded that it is not possible to state the estimated assets and liabilities which will reverse within the next 12 months. This is due to the level of reversal being dependent on events which are not yet known.

FINE CARS (LEE-ON-SOLENT) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
11
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 0.1p each
96,517
96,517
97
97
12
Retained earnings

Included within retained earnings are non-distributable reserves of £257,025 (2022 - £358,225) which relate to the revaluation of investment properties.

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