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Registration number: 03966468

A M Cars Limited

Annual Report and Unaudited Financial Statements

for the Year Ended 31 July 2023

 

A M Cars Limited

Contents

Balance Sheet

1 to 2

Notes to the Unaudited Financial Statements

3 to 9

 

A M Cars Limited

(Registration number: 03966468)
Balance Sheet as at 31 July 2023

Note

2023
£

2022
£

Fixed assets

 

Tangible assets

5

33,360

37,311

Current assets

 

Stocks

6

232,298

245,444

Debtors

7

17,483

33,311

Cash at bank and in hand

 

138

477

 

249,919

279,232

Creditors: Amounts falling due within one year

8

(218,508)

(249,248)

Net current assets

 

31,411

29,984

Total assets less current liabilities

 

64,771

67,295

Creditors: Amounts falling due after more than one year

8

(25,928)

(38,181)

Provisions for liabilities

(6,525)

(7,745)

Net assets

 

32,318

21,369

Capital and reserves

 

Called up share capital

300

300

Retained earnings

32,018

21,069

Shareholders' funds

 

32,318

21,369

 

A M Cars Limited

(Registration number: 03966468)
Balance Sheet as at 31 July 2023

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

Director's responsibilities:

The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and

The director acknowledges his responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime. As permitted by section 444 (5A) of the Companies Act 2006, the director has not delivered to the registrar a copy of the Profit and Loss Account.

Approved and authorised by the director on 23 April 2024
 

Mr A J Marsden
Director

   
     
 

A M Cars Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 July 2023

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Unit 4
Shape Industrial Estate
Station Road
Ilminster
Somerset
TA19 9BL
England

These financial statements were authorised for issue by the director on 23 April 2024.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

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

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

Government grants

Government grants are recognised using the accrual model. Where the costs have already been incurred then the grant is credited to the profit and loss account.

Tax

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

 

A M Cars Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 July 2023

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

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

Tangible assets

Tangible assets are stated in the Balance Sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Property improvements

5% straight line

Website

33% reducing balance

Fixtures, fittings and equipment

25% reducing balance

Plant and machinery

25% reducing balance

Motor vehicles

20% reducing balance

Goodwill

Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the company’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date. Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class

Amortisation method and rate

Goodwill

10 years

 

A M Cars Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 July 2023

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

Debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

 

A M Cars Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 July 2023

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

3

Staff numbers

The average number of persons employed by the company (including the director) during the year was 9 (2022 - 9).

4

Intangible assets

Goodwill
 £

Total
£

Cost

At 1 August 2022

50,000

50,000

At 31 July 2023

50,000

50,000

Amortisation

At 1 August 2022

50,000

50,000

At 31 July 2023

50,000

50,000

Carrying amount

At 31 July 2023

-

-

 

A M Cars Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 July 2023

5

Tangible assets

Property improvements
£

Website
 £

Fixtures, fittings and equipment
£

Plant and machinery
£

Motor vehicles
 £

Total
£

Cost or valuation

At 1 August 2022

28,388

1,500

10,305

54,536

41,952

136,681

Additions

1,403

-

2,000

-

-

3,403

At 31 July 2023

29,791

1,500

12,305

54,536

41,952

140,084

Depreciation

At 1 August 2022

16,632

1,421

10,014

50,012

21,291

99,370

Charge for the year

1,492

26

573

1,131

4,132

7,354

At 31 July 2023

18,124

1,447

10,587

51,143

25,423

106,724

Carrying amount

At 31 July 2023

11,667

53

1,718

3,393

16,529

33,360

At 31 July 2022

11,756

79

291

4,524

20,661

37,311

6

Stocks

2023
£

2022
£

Raw materials and consumables

85,674

85,750

Work in progress

9,392

14,113

Finished goods and goods for resale

137,232

145,581

232,298

245,444

7

Debtors

Note

2023
£

2022
£

Trade debtors

 

4,137

7,758

Amounts owed by related parties

11

-

15,928

Prepayments

 

13,346

9,625

 

17,483

33,311

 

A M Cars Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 July 2023

8

Creditors

Due within one year

Note

2023
£

2022
£

 

Loans and borrowings

9

56,389

20,939

Trade creditors

 

77,412

142,690

Social security and other taxes

 

56,709

52,574

Other creditors

 

22,255

25,895

Accruals

 

5,743

7,150

 

218,508

249,248

Due after one year

 

Loans and borrowings

9

25,928

38,181

Included within loans and borrowings are bank overdrafts of £44,137 (2022 - £9,861) secured by a fixed and floating charge over all of the assets of the company.

9

Loans and borrowings

Non-current loans and borrowings

2023
£

2022
£

Bank borrowings

25,928

38,181

Current loans and borrowings

2023
£

2022
£

Bank borrowings

12,252

11,078

Bank overdrafts

44,137

9,861

56,389

20,939

10

Financial commitments, guarantees and contingencies

Amounts not provided for in the balance sheet

The total amount of financial commitments not included in the balance sheet is £2,870 (2022 - £3,874).

 

A M Cars Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 July 2023

11

Related party transactions

Transactions with the director

2023

At 1 August 2022
£

Advances to director
£

Repayments by director
£

At 31 July 2023
£

Director's loan account

15,928

319,561

(335,489)

-

 

2022

At 1 August 2021
£

Advances to director
£

Repayments by director
£

At 31 July 2022
£

Director's loan account

22,593

524,400

(531,065)

15,928

 

During the year the company continued to provide a loan to the director. The loan is interest free and repayable on demand.