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REGISTERED NUMBER: 01437311 (England and Wales)













STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2023

FOR

FORMULA ONE AUTO CENTRES LIMITED

FORMULA ONE AUTO CENTRES LIMITED (REGISTERED NUMBER: 01437311)






CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023




Page

Company Information 1

Strategic Report 2

Report of the Directors 7

Report of the Independent Auditors 10

Statement of Comprehensive Income 14

Balance Sheet 15

Statement of Changes in Equity 16

Cash Flow Statement 17

Notes to the Cash Flow Statement 18

Notes to the Financial Statements 19


FORMULA ONE AUTO CENTRES LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31 JULY 2023







DIRECTORS: P S Glencross
J Glencross
L Glencross
J Butcher
S L Hughes
K W Lee
S A Jennings
I Keeley





REGISTERED OFFICE: Aston House
Boulton Road
Stevenage
Hertfordshire
SG1 4QX





REGISTERED NUMBER: 01437311 (England and Wales)





AUDITORS: Watson Associates (Audit Services) Ltd
Statutory Auditor
30 - 34 North Street
Hailsham
East Sussex
BN27 1DW

FORMULA ONE AUTO CENTRES LIMITED (REGISTERED NUMBER: 01437311)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 JULY 2023

The directors present their strategic report for the year ended 31 July 2023.

BUSINESS REVIEW
The statement of comprehensive income is set out on page 13 and shows a profit before tax of £3,185,571 for the period. Turnover for the period amounted to £86,333,190.

The company continues to increase its sales, with 7.5% growth on the previous year, although cost inflation caused profits to reduce in the year, but EBITDA remained in line with prior year reflecting the impact of interest rate increases and investment in the estate.
The company's core strategy delivers growth through increased sales and performance, plus expansion of
outlets. The company operates a mix of freehold and leasehold properties, providing a strong framework for
expansion.

During the period, the company opened three sites in Tonbridge, Sheffield and Wellingborough, and closed one site in Oxford, taking the total number of sites to 132. The company expects to continue to expand in the next financial year.


FORMULA ONE AUTO CENTRES LIMITED (REGISTERED NUMBER: 01437311)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 JULY 2023

PRINCIPAL RISKS AND UNCERTAINTIES
The management of the business and execution of the company's strategy are subject to a number of risks. The principal risks and uncertainties affecting the company are considered to relate to competition from both national and independent retailers, employee retention, product availability and cost inflation.

Competition remains fierce, which ultimately benefits the customer through lower pricing and reduced margins. Increasing the company's market share through expansion and customer retention enables the company to continue to grow.

Recruiting and retaining the best staff continues to be a key focus of the company. This year has been a challenge, albeit not unique to this industry, but the company does believe the challenge is starting to ease a little. The company is investing in its staff through wage increases and the introduction of enhanced employee benefits.
The company views open discussion with employees as vital to understanding how it can continually improve, with such communication taking place via site visits, face to face meetings and written notices.
Recognition of skills continues, with assistance towards further education and qualifications being offered.
Since having obtained industry standard training recognition, the company has continued to sponsor many applicants to the government-controlled MOT authorised examiner status. This qualification brings with it career growth, employee financial reward and greater skills knowledge. The company continues to pro-actively increase the number of people gaining the MOT qualification.
The company has recently increased the number of apprentices after two successful cohorts and views this as a future growth opportunity to recruit, train and promote high quality personnel.

To mitigate the risk of product availability, the company continues to have available a large number of authorised suppliers to enable a wider range of products to be made available to the company's customers. This has resulted in multiple suppliers for similar products, to ensure that the mix of products meet the company's customer demands. Each supplier is important to the company for providing effective, timely and accurate product supply to the local centre.
The company works hard to ensure timely delivery to our sites to meet customer demand and offers customers same day options for both walk-in and online customers.

Cost inflation has had a large impact on profit during the year, including wages, business rates, direct product costs and interest rates. While the labour market may not be as challenging as previous years, the wages being offered by competitors are increasing although the company has seen a number of staff return as they realise the dream they were sold was not completely accurate.
The company has been impacted during the year by a material increase in business rates and continues to challenge these as it believes the increases applied are unreasonable.
The company is in the middle of a three-year energy contract which has helped to avoid further cost increases, and has recently committed to an additional twelve-month supply contract, guaranteeing the purchase price until October 2025.


FORMULA ONE AUTO CENTRES LIMITED (REGISTERED NUMBER: 01437311)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 JULY 2023

SECTION 172(1) STATEMENT
Section 172 of the Companies Act 2006 requires a director of a Company to act in the way he or she considers, in good faith, would most likely promote the success of the company for the benefit of its members as a whole. In this respect the Directors have had regard, amongst other matters, to the:

- Likely consequences of any decisions in the long-term;
- Interests of the Company's employees;
- Need to foster the Company's business relationships with suppliers, customers and others;
- Impact of the Company's operations on the community and environment;
- Desirability of the Company maintaining a reputation for high standards of business conduct;
and
- Need to act fairly as between members of the Company.

The Directors seek to ensure that their decision making process not only takes into account the Company's purpose, vision and values, together with its strategic priorities, but also reflects, as far as practical and possible, the interests of all stakeholders.

KEY PERFORMANCE INDICATORS
The company manages the business by reference to key performance indicators. Each trading outlet is recognised as a profit centre and is measured accordingly. Due to the varied nature of the business, the performance indicators will differ greatly from outlet to outlet, therefore individual monitoring is paramount and is measured daily.

Competent management reporting tools are in place to provide essential current, timely reporting in a clear
and precise manner. The principal indicators used by the company include, but are not limited to;
1. Turnover - total turnover and like-for-like turnover
2. Gross Margin - cash and percentage of sales
3. EBITDA
4. Wages and Employees - wages as a percentage of sales and number of employees
The company is in the process of introducing more operational KPIs and expect to use these more during the coming year.

2022/23 vs Prior Year
Turnover £86,333,190 7.5%
Gross Margin £54,145,835 9.4%
EBITDA £6,646,121 10.0%
Wages £28,853,301 10.2%
Employee Numbers 843 7.4%


FORMULA ONE AUTO CENTRES LIMITED (REGISTERED NUMBER: 01437311)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 JULY 2023

FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
The company's operations expose it to a variety of financial risks that include the effects of price risk, credit risk,
liquidity risk and interest rate cash flow risk. The company has in place policies and procedures that seek to limit
the potentially adverse effects on the financial performance of the company of such risks. These policies are set
by the directors.

The company does not currently use derivative financial instruments to manage interest rate risks, but it has been reviewing this since the period end due to the increases seen in interest rates.

Price risk

Due to the market the company operates in, the company is exposed to price risk from its suppliers and competitors.
However, given the size of the company's operations and in addition to the actions identified above, the company is able to manage the potential exposure through supplier agreements and rebate mechanisms.

Credit risk
The majority of the company's sales are not made on credit. However, for those sales made on credit, appropriate credit checks on customers who apply for credit accounts are made prior to the sale. The amount of any individual customer is subject to a limit and the exposure of the group as a whole is mitigated by multiple credit control procedures and the diverse nature of the customer base.

Liquidity risk
Liquidity risk is the risk that the company will encounter difficulty in meeting obligations associated with its financial liabilities. The risk is mitigated as the company has sufficient cash resources available to it through either its own funds or access to further bank facilities.

Brexit
The company continues to monitor the impact of Brexit and as shown in note 4 the company derives all of its income
from within the UK, and primarily purchases from UK suppliers. Where suppliers bring goods into the UK, the
company have discussed with their supplier their stockholding levels and continuity of supply such that the company
anticipates that there will be no significant disruption to the supply chain. Additionally, the company is able to
source products from different suppliers and is also not dependent on any one brand of product.

Covid-19
The company remained open and traded throughout the COVID-19 pandemic and was classed as an
"essential service" by the UK Government. Following the government's decision to extend MOT expiry dates during the first lockdown, the shape of the company's turnover shifted somewhat from April, May and June into August, September and October. The company has seen the shape of its turnover continue to return to pre-pandemic phasing over the last couple of years and expects to see one or perhaps two more years of realignment.

Interest rate cash flow risk
The company has interest-bearing liabilities in the form of a Revolving Credit Facility and a Term Loan from the company's bankers which accrue interest at floating rates of interest.
At the end of the period, the company was not fully drawn on its revolving credit facility and expects the Term Loan to be fully repaid during the next financial year.


FORMULA ONE AUTO CENTRES LIMITED (REGISTERED NUMBER: 01437311)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 JULY 2023


Engagement with Employees
Our employees are a key part of our operations. We share with them our strategy and actively engage with
employees on significant decisions that may impact them. This is achieved through activities such as regular site visits, management and supervisor meetings, and company notices.

Engagement with Suppliers, Customers and Others
Our customers and suppliers are central to our business. We engage and build relationships via face to face
interactions, events, promotional activity and visits to our sites. We constantly strive to improve working
relationships with both suppliers and customers to ensure our continued strength and growth. We feel it is very important to have a good relationship with all our partners, including our suppliers, landlords, tenants and neighbours.

Future developments
The company continues to achieve growth by seeking and acquiring more sites. Post year end there are more sites in the pipeline to facilitate this growth and the group are always interested in new sites in prime locations.

Employee involvement
The company's policy is to consult and discuss the interests of employees through site visits, staff meetings and
discussions.

Information of matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the 's company's performance.

Disabled persons
The company's policy is to recruit disabled workers for those vacancies that they are able to fill. All necessary assistance with initial training courses is given. Once employed, a career plan is developed so as to ensure suitable opportunities for each disabled person. Arrangements are made, wherever possible, for retraining employees who have become disabled, to enable them to perform work identified as appropriate to their aptitudes and abilities.

ON BEHALF OF THE BOARD:





S L Hughes - Director


27 November 2023

FORMULA ONE AUTO CENTRES LIMITED (REGISTERED NUMBER: 01437311)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 JULY 2023

The directors present their report with the financial statements of the company for the year ended 31 July 2023.

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of an autocentre.

DIVIDENDS
Dividends distributed for the year ended 31 July 2023 amounted to £3,050,000 (2022: £2,495,000). The directors do not recommend the payment of a final dividend.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 August 2022 to the date of this report.

P S Glencross
J Glencross
L Glencross
J Butcher
S L Hughes
K W Lee
S A Jennings
I Keeley


FORMULA ONE AUTO CENTRES LIMITED (REGISTERED NUMBER: 01437311)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 JULY 2023

STREAMLINED ENERGY AND CARBON REPORTING
2023 2022
UK energy use kWh KWh's KWh's
Gas 404,053 553,175
Electricity 4,252,216 4,228,612
Transport Fuel 918,919 1,005,120
Expensed Mileage Fuel 215,168 267,874
5,790,356 6,054,781

Associated Greenhouse gas emissions tC02e tCO2e tC02e
Emissions from combustion of gas 74.47 101.36
Emissions from purchased electricity 880.52 817.73
Emissions from combustion of transport fuel 229.97 242.44
Emissions from combustion of expensed mileage fuel 52.17 65.70
1,237.14 1,227.23

Intensity ratio
Sales revenue £1k 86,333.19 80,289.76
Tonnes CO2 Equivalent 1,237.14 1,227.23
Tonnes of CO2 per total £1k sales revenue 1.43% 1.53%

Methodology
All operations are UK Based, none are offshore or global.

Consumption has been calculated using the following assumptions and data:
Gas - Meter readings at start and end of period to generate kWh usage.

Electricity
- Summation of smart meter and meter readings at start and end of reporting period to
generate kWh usage
Fuel used for
transport
- Company car mileage data was categorised by car size and fuel type. DEFRA
conversion factors were then applied to calculate both energy use and emissions on a
per mile basis.

Gas usage has reduced for the third consecutive year. Electricity consumption increased by less than 0.5% but emissions increased by 7% as a result of a change to the DEFRA emissions factor. Fuel used in company vehicles and expenses mileage have both reduced for the third consecutive year.

Energy Efficiency Action
The company is in a period of reviewing the rollout of new heating and lighting solutions. Should this continue to demonstrate a reduction in energy consumption then the group expects to commit to further investment in this area.
The company continues to monitor overnight energy consumption with daily alerts sent to its centres to make them aware of high consumption so action can be taken.
As mentioned already in this report, the company is in the middle of a 3-year energy contract and has recently committed to an additional 12 months, guaranteeing the purchase price until October 2025.


FORMULA ONE AUTO CENTRES LIMITED (REGISTERED NUMBER: 01437311)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 JULY 2023

STATEMENT OF DIRECTORS' RESPONSIBILITIES
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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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.

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 or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS
The auditors, Watson Associates (Audit Services) Ltd, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





S L Hughes - Director


27 November 2023

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
FORMULA ONE AUTO CENTRES LIMITED

Opinion
We have audited the financial statements of Formula One Auto Centres Limited (the 'company') for the year ended 31 July 2023 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, 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 July 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 and the Report of the Directors, 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.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
FORMULA ONE AUTO CENTRES LIMITED


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.

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 Statement of Directors' Responsibilities set out on page nine, 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
FORMULA ONE AUTO CENTRES LIMITED


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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Based on our understanding of the Company and industry, we identified that the principal risks of non-compliance with laws and regulations related to employment laws and we considered the extent to which non-compliance might have a material effect on the financial statements.

We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries to achieve desired financial results and the manipulation of exceptional items and management bias in accounting estimates.

Audit procedures performed by the engagement team included:

- enquiries with management, including consideration of known or suspected instances of fraud and non-compliance with laws and regulations and examining supporting calculations where a provision has been made in respect of these;
- reading key correspondence with regulatory authorities in relation to compliance with certain employment laws;
- understanding and evaluating the design and implementation of management's controls designed to prevent and detect irregularities;
- challenging assumptions and judgements made by management in their significant accounting estimates, in particular in relation to valuation of investment property, impairment of investments in subsidiaries and the measurement and classification of exceptional items;
- identifying and testing journal entries, in particular any journal entries posted with unusual account combinations and postings by unusual users.

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

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
FORMULA ONE AUTO CENTRES LIMITED


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.




Stephen James Moore (Senior Statutory Auditor)
for and on behalf of Watson Associates (Audit Services) Ltd
Statutory Auditor
30 - 34 North Street
Hailsham
East Sussex
BN27 1DW

27 November 2023

FORMULA ONE AUTO CENTRES LIMITED (REGISTERED NUMBER: 01437311)

STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 JULY 2023

2023 2022
Notes £    £   

TURNOVER 4 86,333,190 80,289,763

Cost of sales (32,187,355 ) (30,781,090 )
GROSS PROFIT 54,145,835 49,508,673

Administrative expenses (50,774,085 ) (45,892,502 )
3,371,750 3,616,171

Other operating income 667,337 663,024
OPERATING PROFIT 6 4,039,087 4,279,195

Interest receivable and similar income 111 2,695
4,039,198 4,281,890

Interest payable and similar expenses 8 (853,627 ) (487,921 )
PROFIT BEFORE TAXATION 3,185,571 3,793,969

Tax on profit 9 (471,030 ) (723,680 )
PROFIT FOR THE FINANCIAL YEAR 2,714,541 3,070,289

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR
THE YEAR

2,714,541

3,070,289

FORMULA ONE AUTO CENTRES LIMITED (REGISTERED NUMBER: 01437311)

BALANCE SHEET
31 JULY 2023

2023 2022
Notes £    £   
FIXED ASSETS
Intangible assets 11 2,404,573 2,863,729
Tangible assets 12 19,747,625 19,735,122
Investments 13 1,002 1,002
Investment property 14 871,945 871,945
23,025,145 23,471,798

CURRENT ASSETS
Stocks 15 2,130,134 2,483,071
Debtors 16 11,813,508 8,904,970
Cash at bank and in hand 2,846,549 3,647,175
16,790,191 15,035,216
CREDITORS
Amounts falling due within one year 17 (21,531,545 ) (20,417,663 )
NET CURRENT LIABILITIES (4,741,354 ) (5,382,447 )
TOTAL ASSETS LESS CURRENT
LIABILITIES

18,283,791

18,089,351

CREDITORS
Amounts falling due after more than one
year

18

(12,279,963

)

(11,802,299

)

PROVISIONS FOR LIABILITIES 22 (677,411 ) (625,176 )
NET ASSETS 5,326,417 5,661,876

CAPITAL AND RESERVES
Called up share capital 23 10,002 10,002
Revaluation reserve 24 1,088,143 1,088,143
Retained earnings 24 4,228,272 4,563,731
SHAREHOLDERS' FUNDS 5,326,417 5,661,876

The financial statements were approved by the Board of Directors and authorised for issue on 27 November 2023 and were signed on its behalf by:




S L Hughes - Director


FORMULA ONE AUTO CENTRES LIMITED (REGISTERED NUMBER: 01437311)

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JULY 2023

Called up
share Retained Revaluation Total
capital earnings reserve equity
£    £    £    £   

Balance at 1 August 2021 10,002 3,988,442 1,088,143 5,086,587

Changes in equity
Dividends - (2,495,000 ) - (2,495,000 )
Total comprehensive income - 3,070,289 - 3,070,289
Balance at 31 July 2022 10,002 4,563,731 1,088,143 5,661,876

Changes in equity
Dividends - (3,050,000 ) - (3,050,000 )
Total comprehensive income - 2,714,541 - 2,714,541
Balance at 31 July 2023 10,002 4,228,272 1,088,143 5,326,417

FORMULA ONE AUTO CENTRES LIMITED (REGISTERED NUMBER: 01437311)

CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 JULY 2023

2023 2022
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 7,221,383 5,133,143
Interest paid (781,092 ) (427,949 )
Interest element of hire purchase
payments paid

(75,615

)

(55,604

)
Finance costs paid - (4,368 )
Tax paid (554,353 ) (1,251,785 )
Interest received on overpaid tax 3,080 -
Net cash from operating activities 5,813,403 3,393,437

Cash flows from investing activities
Purchase of tangible fixed assets (2,296,586 ) (5,253,795 )
Sale of tangible fixed assets 135,758 2,121,204
Interest received 111 2,695
Net cash from investing activities (2,160,717 ) (3,129,896 )

Cash flows from financing activities
New loans in year 250,000 1,000,000
New Hire Purchases loans in year 389,038 1,243,853
Capital repayments in year (94,115 ) (674,917 )
Paid to intercompany (1,948,235 ) (5,453,334 )
Equity dividends paid (3,050,000 ) (2,495,000 )
Net cash from financing activities (4,453,312 ) (6,379,398 )

Decrease in cash and cash equivalents (800,626 ) (6,115,857 )
Cash and cash equivalents at
beginning of year

2

3,647,175

9,763,032

Cash and cash equivalents at end of
year

2

2,846,549

3,647,175

FORMULA ONE AUTO CENTRES LIMITED (REGISTERED NUMBER: 01437311)

NOTES TO THE CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 JULY 2023

1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS
2023 2022
£    £   
Profit before taxation 3,185,571 3,793,969
Depreciation charges 2,688,161 2,453,538
Profit on disposal of fixed assets (80,680 ) (674,773 )
Finance costs 853,627 487,921
Finance income (111 ) (2,695 )
6,646,568 6,057,960
Decrease/(increase) in stocks 352,937 (184,884 )
Increase in trade and other debtors (960,303 ) (324,821 )
Increase/(decrease) in trade and other creditors 1,182,181 (415,112 )
Cash generated from operations 7,221,383 5,133,143

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 July 2023
31.7.23 1.8.22
£    £   
Cash and cash equivalents 2,846,549 3,647,175
Year ended 31 July 2022
31.7.22 1.8.21
£    £   
Cash and cash equivalents 3,647,175 9,763,032


3. ANALYSIS OF CHANGES IN NET DEBT

At 1.8.22 Cash flow At 31.7.23
£    £    £   
Net cash
Cash at bank and in hand 3,647,175 (800,626 ) 2,846,549
3,647,175 (800,626 ) 2,846,549
Debt
Finance leases (1,449,036 ) (294,923 ) (1,743,959 )
Debts falling due after 1 year (11,000,000 ) (250,000 ) (11,250,000 )
(12,449,036 ) (544,923 ) (12,993,959 )
Total (8,801,861 ) (1,345,549 ) (10,147,410 )

FORMULA ONE AUTO CENTRES LIMITED (REGISTERED NUMBER: 01437311)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023

1. STATUTORY INFORMATION

Formula One Auto Centres Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

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 modified by the revaluation of certain assets.

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 £.

Turnover
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Intangible assets
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.

Goodwill, being the amounts paid in connection with the acquisition of a couple of businesses, is being
amortised evenly over their individual estimated useful life of 10 years.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its
estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.
Freehold Property - Held at cost from 01/08/19 (Previously 2% on cost)
Long Leasehold - in accordance with the property
Plant and Machinery - straight line over 6 years
Motor Vehicles - 25% on cost

Revaluation of tangible fixed assets
Individual freehold and leasehold properties were carried at fair value on transition to FRS 102 less any subsequent accumulated depreciation and subsequent accumulated losses. Revaluations were undertaken with sufficient regularity to ensure the carrying amount does not differ materially from that which would be determined using fair value at the balance sheet date.

Fair values were determined from market-based evidence normally undertaken by professionally qualified valuers.

Revaluation gains and losses are recognised in the Statement of comprehensive income unless losses exceed the previously recognised gains or reflect a clear consumption of economic benefits, in which case the excess losses are recognised in profit or loss.

Investments in subsidiaries
Investments in subsidiaries are accounted for at cost less impairment in the individual financial statements.

FORMULA ONE AUTO CENTRES LIMITED (REGISTERED NUMBER: 01437311)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JULY 2023

2. ACCOUNTING POLICIES - continued

Investment property
Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss.

Investment properties are properties held to earn rentals and/or capital appreciation. Investment properties are initially measured at cost including transaction costs. Subsequently, investment properties whose fair value can be measured reliably without undue cost or effort on an on-going basis are measured at fair value. Gains and losses arising from changes in the fair value of investment properties are included in profit or loss in the period in which they arise.

Investment properties whose fair value cannot be measured reliably without undue cost or effort on an on-going basis are included in plant, property and equipment at cost less accumulated depreciation and accumulated impairment losses.

Stocks
Stocks are valued at the lower of cost and net realisable value, being the estimated selling price less costs to disposal, after making due allowance for obsolete and slow moving items. Last cost is used to approximate cost.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to disposal. The impairment loss is recognised immediately in profit or loss, in the Statement of comprehensive income.

Financial instruments
The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, loans from banks and other third parties, and loans to related parties.

Debt instruments that are payable or receivable within one year, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received; other debt instruments are initially measured at present value of the future payments and subsequently at amortised cost using the effective interest method.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in profit or loss.

Financial assets and liabilities are offset and the net amount reported in the balance sheet only when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

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 balance sheet date.


FORMULA ONE AUTO CENTRES LIMITED (REGISTERED NUMBER: 01437311)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JULY 2023

2. ACCOUNTING POLICIES - continued
Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet 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.

Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

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.

3. CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

No significant judgements have had to be made by management in preparing these financial statements.

There were no key assumptions made concerning the future, and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

4. TURNOVER

Turnover comprises revenue recognised by the company in respect of goods and services supplied during the year, excluding VAT and trade discounts. Revenue is recognised when the risks and rewards of ownership transfer which is typically when the service is completed, or the goods provided.

Property rental income is recognised by the company on an accrual basis, spread over the life of the lease arrangement.

FORMULA ONE AUTO CENTRES LIMITED (REGISTERED NUMBER: 01437311)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JULY 2023

5. EMPLOYEES AND DIRECTORS
2023 2022
£    £   
Wages and salaries 26,151,355 23,612,851
Social security costs 2,305,866 2,193,683
Other pension costs 396,080 373,001
28,853,301 26,179,535

The average number of employees during the year was as follows:
2023 2022

Directors 8 8
Administrative 70 70
Selling and distribution 765 707
843 785

2023 2022
£ £
Directors' remuneration 1,973,683 2,161,892

The number of directors to whom retirement benefits were accruing was as follows:

Defined benefit schemes 2 2

Information regarding the highest paid director is as follows:
2023 2022
£ £
Emoluments etc 450,170 532,327

6. OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2023 2022
£    £   
Other operating leases 7,255,551 6,938,755
Depreciation - owned assets 1,822,669 1,691,811
Depreciation - assets on hire purchase contracts 406,336 302,572
Profit on disposal of fixed assets (80,680 ) (674,773 )
Goodwill amortisation 459,156 459,156

FORMULA ONE AUTO CENTRES LIMITED (REGISTERED NUMBER: 01437311)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JULY 2023

7. AUDITORS' REMUNERATION

2023 2022
£ £
Fee payable to the company's auditor in respect of
Audit of the company 26,000 26,933

Audit of the financial statements of the group and subsidiary undertakings

6,000


6,300
33,000 33,233
Non audit Services
Taxation Compliance and Advisory Services 9,500 8,820
Other Services 9,000 9,660
18,500 18,480

8. INTEREST PAYABLE AND SIMILAR EXPENSES
2023 2022
£    £   
Bank loan interest 780,534 427,949
Other interest 558 -
Hire purchase 75,615 55,604
Interest on overdue tax (3,080 ) 4,368
853,627 487,921

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 670,871 658,000
Prior year taxation under / (over) provision (252,076 ) 102,546
Total current tax 418,795 760,546

Deferred tax 52,235 (36,866 )
Tax on profit 471,030 723,680

FORMULA ONE AUTO CENTRES LIMITED (REGISTERED NUMBER: 01437311)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JULY 2023

9. TAXATION - continued

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

2023 2022
£    £   
Profit before tax 3,185,571 3,793,969
Profit multiplied by the standard rate of corporation tax in the UK of
21.005% (2022 - 19%)

669,129

720,854

Effects of:
Expenses not deductible for tax purposes 45,159 37,975
Capital allowances in excess of depreciation - (32,640 )
Depreciation in excess of capital allowances 7,200 -
deduction

Profit on disposal of assets (16,947 ) (128,207 )
Deferred Tax Movement 52,235 (36,866 )
Chargeable gains - 87,394
Prior year taxation Under / (Over) Provision (252,076 ) 102,546
Group Relief (33,670 ) (27,376 )
Total tax charge 471,030 723,680

10. DIVIDENDS
2023 2022
£    £   
Ordinary shares shares of £1 each
Interim 3,050,000 2,495,000

11. INTANGIBLE FIXED ASSETS
Goodwill
£   
COST
At 1 August 2022
and 31 July 2023 4,591,479
AMORTISATION
At 1 August 2022 1,727,750
Amortisation for year 459,156
At 31 July 2023 2,186,906
NET BOOK VALUE
At 31 July 2023 2,404,573
At 31 July 2022 2,863,729

FORMULA ONE AUTO CENTRES LIMITED (REGISTERED NUMBER: 01437311)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JULY 2023

12. TANGIBLE FIXED ASSETS
Freehold Long Plant and Motor
property leasehold machinery vehicles Totals
£    £    £    £    £   
COST OR VALUATION
At 1 August 2022 9,357,672 15,211,946 17,333,516 1,847,522 43,750,656
Additions 22,528 696,346 1,188,674 389,038 2,296,586
Disposals - (5,750 ) - (294,991 ) (300,741 )
At 31 July 2023 9,380,200 15,902,542 18,522,190 1,941,569 45,746,501
DEPRECIATION
At 1 August 2022 626,618 8,083,570 14,431,503 873,843 24,015,534
Charge for year - 949,931 871,693 407,381 2,229,005
Eliminated on disposal - - - (245,663 ) (245,663 )
At 31 July 2023 626,618 9,033,501 15,303,196 1,035,561 25,998,876
NET BOOK VALUE
At 31 July 2023 8,753,582 6,869,041 3,218,994 906,008 19,747,625
At 31 July 2022 8,731,054 7,128,376 2,902,013 973,679 19,735,122

Cost or valuation at 31 July 2023 is represented by:

Freehold Long Plant and Motor
property leasehold machinery vehicles Totals
£    £    £    £    £   
Valuation in 2013 1,088,143 - - - 1,088,143
Cost 8,292,057 15,902,542 18,522,190 1,941,569 44,658,358
9,380,200 15,902,542 18,522,190 1,941,569 45,746,501

FORMULA ONE AUTO CENTRES LIMITED (REGISTERED NUMBER: 01437311)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JULY 2023

12. TANGIBLE FIXED ASSETS - continued

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:
Motor
vehicles
£   
COST OR VALUATION
At 1 August 2022 1,363,983
Additions 389,038
Disposals (294,921 )
Transfer to ownership (62,761 )
Reclassification/transfer 367,156
At 31 July 2023 1,762,495
DEPRECIATION
At 1 August 2022 419,825
Charge for year 406,336
Eliminated on disposal (245,593 )
Transfer to ownership (45,763 )
Reclassification/transfer 339,898
At 31 July 2023 874,703
NET BOOK VALUE
At 31 July 2023 887,792
At 31 July 2022 944,158

13. FIXED ASSET INVESTMENTS
Shares in
group
undertaking
£   
COST
At 1 August 2022
and 31 July 2023 1,002
NET BOOK VALUE
At 31 July 2023 1,002
At 31 July 2022 1,002

FORMULA ONE AUTO CENTRES LIMITED (REGISTERED NUMBER: 01437311)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JULY 2023

13. FIXED ASSET INVESTMENTS - continued

At 31 July 2023 the company held 100% of the allotted ordinary share capital of the following dormant entities:

Formula Plus Autocentres Limited
Formula Autocentres Limited
Protium Holdings Limited
PJS Automotive Limited
Autowise Tyre and Autocentres Limited*

*Investment held indirectly through the company's investment in PJS Automotive Limited.

All subsidiaries were incorporated in England and Wales.

The registered office for all of the subsidiaries is Aston House, Boulton Road, Stevenage, Hertfordshire SG1 4QX.

14. INVESTMENT PROPERTY
Total
£   
FAIR VALUE
At 1 August 2022
and 31 July 2023 871,945
NET BOOK VALUE
At 31 July 2023 871,945
At 31 July 2022 871,945

Investment property has been reclassified from Freehold property in 2022 where this relates to property held to receive rental income or capital appreciation.

The value held within these accounts is the cost less accumulated depreciation. The valuation of this property was in line with this and therefore no revaluation has taken place as of the year end.

15. STOCKS
2023 2022
£    £   
Stocks 2,130,134 2,483,071

Stock is measured at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items as well as sale or return stock.

Cost is calculated on a last cost basis to approximate costs for each individual centre, this includes all costs of purchase, cost of conversion and other costs incurred in bringing the inventories to their present location and condition.

Net realisable value is based on estimated selling price less costs to complete and sell.

FORMULA ONE AUTO CENTRES LIMITED (REGISTERED NUMBER: 01437311)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JULY 2023

16. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade debtors 604,917 599,845
Amounts owed by group undertakings 5,545,219 3,596,984
Other debtors 418,992 223,044
Prepayments and accrued income 5,244,380 4,485,097
11,813,508 8,904,970

17. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Hire purchase contracts (see note 20) 713,996 646,737
Trade creditors 13,239,737 12,631,462
Amounts owed to group undertakings 1,000 1,000
Tax 245,186 380,744
Social security and other taxes 615,093 548,394
VAT 1,313,562 1,023,695
Other creditors 140,620 156,800
Accruals and deferred income 5,262,351 5,028,831
21,531,545 20,417,663

18. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
2023 2022
£    £   
Bank loans (see note 19) 11,250,000 11,000,000
Hire purchase contracts (see note 20) 1,029,963 802,299
12,279,963 11,802,299

19. LOANS

An analysis of the maturity of loans is given below:

2023 2022
£    £   
Amounts falling due between two and five years:
Bank loans - 2-5 years 11,250,000 11,000,000

FORMULA ONE AUTO CENTRES LIMITED (REGISTERED NUMBER: 01437311)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JULY 2023

20. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts
2023 2022
£    £   
Net obligations repayable:
Within one year 713,996 646,737
Between one and five years 1,029,963 802,299
1,743,959 1,449,036

Non-cancellable operating leases
2023 2022
£    £   
Within one year 7,202,377 7,063,183
Between one and five years 23,947,497 24,751,350
In more than five years 28,131,709 30,961,462
59,281,583 62,775,995

FORMULA ONE AUTO CENTRES LIMITED (REGISTERED NUMBER: 01437311)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JULY 2023

21. SECURED DEBTS

The following security is held by the company's bank;
First Legal Charge dated 29 March 2019 over Freehold Property known as Aston House,
Boulton Road, Stevenage, SG1 4QX
First Legal Charge dated 29 March 2019 over Freehold Property known as Bilton Road,
Bletchley, Milton Keynes, MK1 1HW
First Legal Charge dated 29 March 2019 over Freehold Property known as 16 Gambrel Road,
Northampton, Northamptonshire, NN5 5BB
First Legal Charge dated 29 March 2019 over Freehold Property known as Abtec House, 18B
Boulton Road, Stevenage, SG1 4QX
First Legal Charge dated 29 March 2019 over Freehold Property known as 451A Tamworth
Road, Long Eaton, Derbyshire, NG10 3GL
First Legal Charge dated 29 March 2019 over Freehold Property known as 14 Grafton Street,
Northampton, Northamptonshire, NN1 2NW
First Legal Charge dated 29 March 2019 over Freehold Property known as Arlington Way,
Shrewsbury, Shropshire, SY1 4YA
First Legal Charge dated 29 March 2019 over Freehold Property known as 217/219 Liverpool
Road, Newcastle Under Lyme, Staffordshire, ST5 9HW
First Legal Charge dated 29 March 2019 over Freehold Property known as Rocky Hill,
London Road, Maidstone, ME16 8PY
First Legal Charge dated 29 March 2019 over Freehold Property known as 202 Chesterfield
Road North, Mansfield, Nottinghamshire, NG19 7JG
First Legal Charge dated 29 March 2019 over Freehold Property known as 102 Hillmorton
Road, Rugby, Warwickshire, CV22 5DQ
First Legal Charge dated 29 March 2019 over Freehold Property known as Unit 1, Challenger
Court, Tritton Road, Lincoln, LN6 7QY
Composite Company Unlimited Multilateral Guarantee dated 15 February 2019 given by
Formula One Auto Centres Limited, Aston Group Holdings Limited,
Protium Holdings Limited, Autowise Tyre and Autocentres Limited,
PJS Automotive Limited
Debenture including Fixed Charge over all present freehold and leasehold property; First
Fixed Charge over book and other debts, chattels, goodwill and uncalled capital, both present
and future; and First Floating Charge over all assets and undertaking both present and future
dated 15 February 2019

22. PROVISIONS FOR LIABILITIES
2023 2022
£    £   
Deferred tax 677,411 625,176

Deferred
tax
£   
Balance at 1 August 2022 625,176
Provided during year 52,235
Balance at 31 July 2023 677,411

FORMULA ONE AUTO CENTRES LIMITED (REGISTERED NUMBER: 01437311)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JULY 2023

23. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
10,000 Ordinary shares £1 10,000 10,000
2 Series A Preference shares £1 2 2
10,002 10,002

24. RESERVES
Retained Revaluation
earnings reserve Totals
£    £    £   

At 1 August 2022 4,563,731 1,088,143 5,651,874
Profit for the year 2,714,541 2,714,541
Dividends (3,050,000 ) (3,050,000 )
At 31 July 2023 4,228,272 1,088,143 5,316,415

25. CAPITAL COMMITMENTS

Amounts contracted for but not provided in the consolidated financial statements in respect of the company amounted to £924,000 (2022: £5,010,840) in relation to a new site opening in the new financial year. The previous year also related to leases on new sites committed to opening at the start of the 2023 year.

26. RELATED PARTY DISCLOSURES

All of the directors have authority and responsibility for planning, directing and controlling the activities of the parent company and are considered to be key management personnel as defined in FRS 102. Total remuneration in respect of these individuals is £1,925,054 (2022: £2,131,260).

During the year the parent company paid dividends amounting to £2,850,000 (2022: £2,495,000) in respect of shares held by the directors and the company paid dividends to the immediate parent amounting to £3,050,000 (2022: £2,495,000).

During the year the company loaned £149,866 to GP Care Now Limited who have ultimate owners in common.

27. GOVERNMENT GRANTS

Other income includes amounts received from the rates relief scheme.