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Registered number: 01237098










AEW PADDOCK MOTORS LIMITED










Annual report and financial statements

for the year ended 31 December 2022

 
AEW PADDOCK MOTORS LIMITED
 

Company Information


Directors
A E Wright 
G P Wright 
R A Wright 




Company secretary
G P Wright



Registered number
01237098



Registered office
The Showground
The Cliff

Matlock

Derbyshire

DE4 5EW




Independent auditors
PKF Smith Cooper Audit Limited
Statutory Auditors

2 Lace Market Square

Nottingham

NG1 1PB





 
AEW PADDOCK MOTORS LIMITED
 

Contents



Page
Group strategic report
1 - 2
Directors' report
3 - 4
Independent auditors' report
5 - 8
Consolidated statement of comprehensive income
9
Consolidated balance sheet
10
Company balance sheet
11
Consolidated statement of changes in equity
12
Company statement of changes in equity
13
Consolidated statement of cash flows
14
Consolidated analysis of net debt
15
Notes to the financial statements
16 - 34


 
AEW PADDOCK MOTORS LIMITED
 

Group strategic report
for the year ended 31 December 2022

Introduction
 
We aim to present a balanced and comprehensive review of the performance and development of the business during and at the end of the year, consistent with its size and complexity; and in the context of risks and uncertainties that we face.

Business review
 
Despite the increase in competition, the Group is reporting a strong profit margin. Market conditions including the impact of Brexit and Covid-19 have resulted in a decrease in turnover.
We continue to maintain and improve our web presence in order to better service our extensive customer base.
The Group continues to have a strong financial footing which we look forward to maintaining long into the future.

Principal risks and uncertainties
 
The key risk areas of the Group are:
Economic
Maintaining profitability despite changes in disposable income due to the economic cycle and also managing the impact of foreign exchange fluctuations.
Operational
Ensuring that suppliers are able to supply the quality and levels of products that the Group requires in a timely fashion.
Finance
Maintaining and improving the assets of the Group, whilst not having a detrimental effect on cash flows and profitability.
Competition
New competitors entering the industry or existing competitors changing their objectives.
The Group seeks to manage as far as possible the key risks it faces by continually investing in the assets of the group while improving the products it offers.
Having considered the above risks and uncertainties, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. The company has invested a substantial amount of cash resources to support a subsidiary company’s business developments. As a result, the cash position for the company and the Group has reduced significantly in recent years. Post-year end trading continues to be profitable with consistent levels of turnover, however, the current cash position creates uncertainty surrounding the Group’s ability to settle potential future liabilities as they fall due. Therefore, a material uncertainty exists in relation to going concern.

Financial key performance indicators
 
We consider that our key financial performance indicators are those that communicate the financial performance and position of the Group as a whole, these being pre-tax profit and return on capital employed.
Pre-tax profit for the period was £122,348 (2021: £558,197 profit).
Return on capital employed, defined as earnings before interest and tax divided by total assets less current liabilities, is 0% (2021: 4%).

Page 1

 
AEW PADDOCK MOTORS LIMITED
 

Group strategic report (continued)
for the year ended 31 December 2022


This report was approved by the board on 7 March 2024 and signed on its behalf.



G P Wright
Director

Page 2

 
AEW PADDOCK MOTORS LIMITED
 

 
Directors' report
for the year ended 31 December 2022

The directors present their report and the financial statements for the year ended 31 December 2022.

Directors' responsibilities statement

The directors are responsible for preparing the Group strategic report, the Directors' report and the consolidated 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), 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 the Group and of the profit or loss of the Group for that period.

 In preparing these financial statements, the directors are required to:


select suitable accounting policies for the Group's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group 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 the Group and to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Principal activity

The principal activity of the Group in the year under review was that of the retailing of vehicle spares.

Results and dividends

The profit for the year, after taxation and minority interests, amounted to £93,545 (2021 - £440,440).

No dividends will be distributed for the year ended 31 December 2022.

Directors

The directors who served during the year were:

A E Wright 
G P Wright 
R A Wright 

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company and the Group's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company and the Group's auditors are aware of that information.

Page 3

 
AEW PADDOCK MOTORS LIMITED
 

 
Directors' report (continued)
for the year ended 31 December 2022

Post balance sheet events

There have been no significant events affecting the Group since the year end.

Auditors

The auditorsPKF Smith Cooper Audit Limitedwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 7 March 2024 and signed on its behalf.
 





G P Wright
Director

Page 4

 
AEW PADDOCK MOTORS LIMITED
 

 
Independent auditors' report to the members of AEW Paddock Motors Limited
 

Qualified Opinion


We have audited the financial statements of AEW Paddock Motors Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 2022, which comprise the Consolidated statement of comprehensive income, the Consolidated balance sheet, the Company balance sheet, the Consolidated statement of cash flows, the Consolidated statement of changes in equity, the Company statement of changes in equity and the related notes, including a summary of significant accounting policiesThe 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).


Except for the effects of the matter described in the basis for qualified opinion section, in our opinion the financial statements:


give a true and fair view of the state of the Group's and of the parent Company's affairs as at 31 December 2022 and of the Group's 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 qualified opinion


We have been unable to obtain sufficient appropriate audit evidence to provide adequate assurance in respect of physical stock quantities and stock valuations within the Group, which are included in the balance sheet at £1,768k. Consequently, we were unable to determine whether any adjustment to this amount was necessary. In addition, were any adjustment to this balance to be required, the strategic report would also need to be amended.


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 Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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 qualified opinion.


Material uncertainty related to going concern


We draw attention to note 2.3 in the financial statements, which indicates that the Group continues to have reduced cash resources post year-end. As stated in note 2.3, these events or conditions indicate that a material uncertainty exists that may cast significant doubt on the Group's and the parent Company's ability to continue as a going concern. Our opinion is not modified in respect of this matter.


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. 


Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Page 5

 
AEW PADDOCK MOTORS LIMITED
 

 
Independent auditors' report to the members of AEW Paddock Motors Limited (continued)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' report thereon. The directors are responsible for the other information contained within the Annual ReportOur 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. 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 course of 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.


As described in the basis for qualifed opinion section of our report, we were unable to satisfy ourselves concerning the stock of £1,768k held at 31 December 2022. We have concluded that where the other information refers to this balance or related balances such as cost of sales, it may be materially misstated for the same reason. 


Opinion on other matters prescribed by the Companies Act 2006
 

Except for the possible effects of the matter described in the basis for qualified opinion section of our report, in our opinion, based on the work undertaken in the course of the audit:


the information given in the Group strategic report and the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Group strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

Except for the possible effects of the matter described in the basis for qualified opinion section of our report, in the light of the knowledge and understanding of the Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group strategic report or the Directors' report.
Arising solely from the limitation on the scope of our work relating to stock, referred to above:
• we have not obtained all the information and explanations that we considered necessary for the purpose    of our audit; and 
• we were unable to determine whether adequate accounting records have been kept.


We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:


returns adequate for our audit have not been received from branches not visited by us; or
the parent Company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made



Responsibilities of directors
 

As explained more fully in the Directors' responsibilities statement set out on page 3, 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 is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


Page 6

 
AEW PADDOCK MOTORS LIMITED
 

 
Independent auditors' report to the members of AEW Paddock Motors Limited (continued)


In preparing the financial statements, the directors are responsible for assessing the Group's and the parent 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 Group or the parent Company or to cease operations, or have no realistic alternative but to do so.


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 an Auditors' report 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 Group financial statements.


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Based on our understanding of the Group and industry, we identify the key laws and regulations affecting the Group. We identified that the principal risk of fraud or non-compliance with laws and regulations related to:
• management bias in respect of accounting estimates and judgements made;
•  management override of control;
•  posting of unusual journals or transactions.
We focussed on those areas that could give rise to a material misstatement in the Group financial statements.
Our procedures included, but were not limited to:
•  Enquiry of management and those charged with governance around actual and potential litigation and    claims, including instances of non-compliance with laws and regulations and fraud;
•  Reviewing legal expenditure in the year to identify instances of non-compliance with laws and regulations   and fraud;
•  Reviewing financial statement disclosures and testing to supporting documentation to assess compliance   with applicable laws and regulations;
•  Performing audit work over the risk of management override of controls, including testing of journal    entries and other adjustments for appropriateness, evaluating the business rationale of significant     transactions  outside the normal course of business and reviewing accounting estimates for bias.
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.


Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.


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 Auditors' report.


Page 7

 
AEW PADDOCK MOTORS LIMITED
 

 
Independent auditors' report to the members of AEW Paddock Motors Limited (continued)


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 2006Our 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 an Auditors' report 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.





James Bagley (Senior statutory auditor)
for and on behalf of
PKF Smith Cooper Audit Limited
Statutory Auditors
2 Lace Market Square
Nottingham
NG1 1PB

7 March 2024
Page 8

 
AEW PADDOCK MOTORS LIMITED
 

Consolidated statement of comprehensive income
for the year ended 31 December 2022

2022
2021
Note
£
£

  

Turnover
 4 
10,418,656
10,677,471

Cost of sales
  
(8,679,792)
(8,639,182)

Gross profit
  
1,738,864
2,038,289

Administrative expenses
  
(1,732,586)
(1,816,560)

Other operating income
 5 
20,340
86,522

Fair value movements
  
186,796
250,000

Operating profit
 6 
213,414
558,251

Amounts written off investments
  
(75)
-

Interest receivable and similar income
 10 
62
526

Interest payable and similar expenses
 11 
(91,053)
(580)

Profit before taxation
  
122,348
558,197

Tax on profit
 12 
(28,756)
(117,514)

Profit for the financial year
  
93,592
440,683

Profit for the year attributable to:
  

Non-controlling interests
  
47
243

Owners of the parent Company
  
93,545
440,440

  
93,592
440,683

Total comprehensive income for the year attributable to:
  

Non-controlling interest
  
47
243

Owners of the parent Company
  
93,545
440,440

  
93,592
440,683

There were no recognised gains and losses for 2022 or 2021 other than those included in the consolidated statement of comprehensive income.

There was no other comprehensive income for 2022 (2021:£NIL).

The notes on pages 16 to 34 form part of these financial statements.

Page 9

 
AEW PADDOCK MOTORS LIMITED
Registered number: 01237098

Consolidated balance sheet
as at 31 December 2022

As restated
2022
2021
Note
£
£

Fixed assets
  

Intangible assets
 13 
44,475
49,417

Tangible assets
 14 
43,484
51,641

Investment property
 16 
1,700,000
1,513,204

  
1,787,959
1,614,262

Current assets
  

Stocks
 17 
16,456,107
14,537,104

Debtors: amounts falling due within one year
 18 
3,807,190
285,244

Cash at bank and in hand
 19 
92,091
977,500

  
20,355,388
15,799,848

Creditors: amounts falling due within one year
 20 
(4,140,646)
(3,261,758)

Net current assets
  
 
 
16,214,742
 
 
12,538,090

Total assets less current liabilities
  
18,002,701
14,152,352

Creditors: amounts falling due after more than one year
 21 
(3,708,111)
-

Provisions for liabilities
  

Deferred taxation
 23 
(81,152)
(37,381)

Net assets
  
14,213,438
14,114,971


Capital and reserves
  

Called up share capital 
 24 
100
100

Share premium account
 25 
1,599,980
1,599,980

Investment property revaluation reserve
 25 
240,096
133,333

Profit and loss account
 25 
12,311,796
12,320,139

Equity attributable to owners of the parent Company
  
14,151,972
14,053,552

Non-controlling interests
  
61,466
61,419

  
14,213,438
14,114,971


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 7 March 2024.


G P Wright
Director

The notes on pages 16 to 34 form part of these financial statements.

Page 10

 
AEW PADDOCK MOTORS LIMITED
Registered number: 01237098

Company balance sheet
as at 31 December 2022

As restated
2022
2021
Note
£
£

Fixed assets
  

Intangible assets
 13 
44,475
49,417

Tangible assets
 14 
39,687
46,895

Investments
 15 
188,320
1,788,395

Investment property
 16 
1,700,000
1,513,204

  
1,972,482
3,397,911

Current assets
  

Stocks
 17 
1,768,256
1,598,067

Debtors: amounts falling due within one year
 18 
13,284,987
11,995,438

Cash at bank and in hand
 19 
85,766
972,810

  
15,139,009
14,566,315

Creditors: amounts falling due within one year
 20 
(2,381,330)
(1,864,994)

Net current assets
  
 
 
12,757,679
 
 
12,701,321

Total assets less current liabilities
  
14,730,161
16,099,232

  

Provisions for liabilities
  

Deferred taxation
 23 
(81,152)
(37,381)

Net assets
  
14,649,009
16,061,851


Capital and reserves
  

Called up share capital 
 24 
100
100

Share premium account
 25 
1,599,980
1,599,980

Investment property revaluation reserve
 25 
240,096
133,333

Profit and loss account
 25 
12,808,833
14,328,438

  
14,649,009
16,061,851


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 7 March 2024.


G P Wright
Director

The notes on pages 16 to 34 form part of these financial statements.

Page 11

 
AEW PADDOCK MOTORS LIMITED
 

Consolidated statement of changes in equity
for the year ended 31 December 2022


Called up share capital
Share premium account
Investment property revaluation reserve
Profit and loss account
Equity attributable to owners of parent Company
Non-controlling interests
Total equity

£
£
£
£
£
£
£


As restated at 1 January 2021
100
1,599,980
-
12,013,032
13,613,112
61,176
13,674,288



Profit for the year
-
-
-
440,440
440,440
243
440,683

Transfer to/from investment property revaluation reserve
-
-
-
(133,333)
(133,333)
-
(133,333)

Transfer to/from profit and loss account
-
-
133,333
-
133,333
-
133,333



As restated at 1 January 2022
100
1,599,980
133,333
12,320,139
14,053,552
61,419
14,114,971



Profit for the year
-
-
-
93,545
93,545
47
93,592

Deconsolidation of subsidiary - reserves removed from consolidation
-
-
-
4,875
4,875
-
4,875

Transfer to/from investment property revaluation reserve
-
-
-
(106,763)
(106,763)
-
(106,763)


Contributions by and distributions to owners

Transfer to/from profit and loss account
-
-
106,763
-
106,763
-
106,763


At 31 December 2022
100
1,599,980
240,096
12,311,796
14,151,972
61,466
14,213,438


The notes on pages 16 to 34 form part of these financial statements.

Page 12

 
AEW PADDOCK MOTORS LIMITED
 

Company statement of changes in equity
for the year ended 31 December 2022


Called up share capital
Share premium account
Investment property revaluation reserve
Profit and loss account
Total equity

£
£
£
£
£


As restated at 1 January 2021
100
1,599,980
-
14,018,393
15,618,473



Profit for the year
-
-
-
443,378
443,378

Net transfers from profit and loss reserve to revaluation reserve
-
-
-
(133,333)
(133,333)

Investment property revaluation gain
-
-
133,333
-
133,333



As restated at 1 January 2022
100
1,599,980
133,333
14,328,438
16,061,851



Loss for the year
-
-
-
(1,412,842)
(1,412,842)

Net transfers from profit and loss reserve to revaluation reserve
-
-
-
(106,763)
(106,763)


Contributions by and distributions to owners

Investment property revaluation gain
-
-
106,763
-
106,763


At 31 December 2022
100
1,599,980
240,096
12,808,833
14,649,009


The notes on pages 16 to 34 form part of these financial statements.

Page 13

 
AEW PADDOCK MOTORS LIMITED
 

Consolidated statement of cash flows
for the year ended 31 December 2022

2022
2021
£
£

Cash flows from operating activities

Profit for the financial year
93,592
440,683

Adjustments for:

Amortisation of intangible assets
4,942
-

Depreciation of tangible assets
8,157
8,998

Loss on disposal of tangible assets
-
316

Interest paid
91,053
580

Interest received
(62)
(526)

Taxation charge
28,756
117,514

(Increase) in stocks
(1,919,003)
(1,615,691)

(Increase) in debtors
(391,172)
(62,734)

(Increase)/decrease in amounts owed by connected parties
(3,140,408)
-

Increase/(decrease) in creditors
824,503
(522,942)

Net fair value (gains) recognised in P&L
(186,796)
(250,000)

Corporation tax received
79,034
-

Net cash generated from operating activities

(4,507,404)
(1,883,802)


Cash flows from investing activities

Purchase of intangible fixed assets
-
(49,417)

Purchase of tangible fixed assets
-
(2,370)

Sale of investment properties
-
550,000

Deconsolidated reserves from subsidiary disposal
4,875
-

Interest received
62
526

Net cash from investing activities

4,937
498,739

Cash flows from financing activities

Other loans
3,708,111
-

Interest paid
(91,053)
(580)

Net cash used in financing activities
3,617,058
(580)

Net (decrease) in cash and cash equivalents
(885,409)
(1,385,643)

Cash and cash equivalents at beginning of year
977,500
2,363,143

Cash and cash equivalents at the end of year
92,091
977,500


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
92,091
977,500


The notes on pages 16 to 34 form part of these financial statements.

Page 14

 
AEW PADDOCK MOTORS LIMITED
 

Consolidated Analysis of Net Debt
for the year ended 31 December 2022





At 1 January 2022
Cash flows
Other non-cash changes
At 31 December 2022
£

£

£

£

Cash at bank and in hand

977,500

(885,409)

-

92,091

Debt due after 1 year

-

-

(3,708,111)

(3,708,111)

Debt due within 1 year

(1,382,773)

(137,393)

-

(1,520,166)


(405,273)
(1,022,802)
(3,708,111)
(5,136,186)

The notes on pages 16 to 34 form part of these financial statements.

Page 15

 
AEW PADDOCK MOTORS LIMITED
 

 
Notes to the financial statements
for the year ended 31 December 2022

1.


General information

AEW Paddock Motors Limited is a private company limited by shares incorporated in England, United Kingdom. The address of the registered office is given in the company information page of these financial statements. The company's registration number is 01237098. The company's place of business is located at The Showground, The Cliff, Matlock, Derbyshire, DE4 5EW. The nature of the company’s operations and principal activities are given in the Directors' Report.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The financial statements are prepared in Sterling which is the functional currency of the company and are rounded to the nearest £1.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgment in applying the Group's accounting policies (see note 3).
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income in these financial statements.
The following principal accounting policies have been applied:

 
2.2

Basis of consolidation

The Group financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 31 December each year.
Subsidiary undertakings are included using the acquisition method of accounting. Under this method the Group profit and loss account and statement of cashflows include the results and cashflows of subsidiaries from the date of acquisition to the date of sale outside the Group in the case of disposals of subsidiaries. The purchase consideration has been allocated to the assets and liabilities on the basis of fair value at the date of acquisition.

 
2.3

Going concern

The company has invested a substantial amount of cash resources to support a subsidiary company’s business developments. As a result, the cash position for the company and the group has reduced significantly. Post year end trading continues to be profitable with consistent levels of turnover, however, the current cash position creates uncertainty surrounding the group’s ability to settle potential future liabilities as they fall due. Therefore, a material uncertainty exists in relation to going concern.
The directors continue to review the Group position and have concluded that the reduced cash levels will improve once subsidiary developments are complete and therefore the directors believe that the Group can continue to adopt the going concern basis in preparing the financial statements.

Page 16

 
AEW PADDOCK MOTORS LIMITED
 

 
Notes to the financial statements
for the year ended 31 December 2022

2.Accounting policies (continued)

 
2.4

Foreign currency translation

Foreign currency transactions are initially recognised by applying to the foreign currency amount the spot exchange rate between the functional currency and the foreign currency at the date of the transaction.
Monetary assets and liabilities denominated in a foreign currency at the balance sheet date are translated using the closing rate.

 
2.5

Revenue

Turnover is measured at the fair value of the consideration received or receivable net of VAT and trade discounts. The policies adopted for the recognition of turnover are as follows:
Sale of goods
Turnover from the sale of goods is recognised when significant risks and rewards of ownership of the goods have transferred to the buyer, the amount of turnover can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the company and the costs incurred or to be incurred in respect of the transaction can be measured reliably. This is usually on despatch of the goods.

 
2.6

Operating leases: the Group as lessee

Rentals paid under operating leases are charged to the profit and loss on a straight line basis over the period of the lease.
Lease incentives are recognised over the lease term on a straight line basis.

 
2.7

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.8

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.9

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

 
2.10

Pensions

Defined contribution pension plan

The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the Group in independently administered funds.

Page 17

 
AEW PADDOCK MOTORS LIMITED
 

 
Notes to the financial statements
for the year ended 31 December 2022

2.Accounting policies (continued)

 
2.11

Current and deferred taxation

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

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company and the Group operate and generate income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits;
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and
Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

 
2.12

Intangible assets

Goodwill is the difference between amounts paid on the acquisition of a business and the fair value of the identifiable assets and liabilities. It is amortised to the profit and loss account over its estimated economic life. In the light of the continued growth of the acquired company and future plans, the directors are satisfied that the goodwill has durability beyond five years. This matter is being considered on an annual basis.
Goodwill is amortised on a straight line basis over 10 years and is fully amortised.
Intangible assets are recognised when future economic benefits are probable and the cost or value fo the asset can be measured reliably.
Intangible assets are initially recognised at cost and are subsequently measured at cost, net of amortisation and any impairment provision.
Amortisation is provided on intangible assets at rates calculated to write off the cost of each asset on a straight line basis over its expected useful life.
Website development costs are amortised on a straight line basis over 10 years.

Page 18

 
AEW PADDOCK MOTORS LIMITED
 

 
Notes to the financial statements
for the year ended 31 December 2022

2.Accounting policies (continued)

 
2.13

Tangible fixed assets

Tangible fixed assets are stated at cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended.
Depreciation is provided on all tangible fixed assets, at rates calculated to write off the cost, less estimated residual value, of each asset on a systematic basis over its expected useful life.
The carrying values of tangible fixed assets are reviewed for impairment when events or changes in circumstances indicate the carrying value may be affected.

Depreciation is provided on the following basis:

Short-term leasehold property
-
10% straight line
Plant and machinery
-
20% on reducing balance
Fixtures and fittings
-
20% on reducing balance
Computer equipment
-
Straight line over 3 years

 
2.14

Investment property

Investment properties are measured at fair value at each reporting date with changes in fair value recognised in profit or loss.

 
2.15

Valuation of investments

Investments held as fixed assets are shown at cost less provision for impairment.

 
2.16

Stocks

Stocks and work in progress are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing stock to its present location and condition. Cost is calculated using the first-in, first-out formula. Provision is made for damaged, obsolete and slow-moving stock where appropriate.

 
2.17

Short term debtors and creditors

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses.

 
2.18

Cash and cash equivalents

Cash and cash equivalents in the balance sheet comprise cash in hand and short term deposits with an original maturity date of three months or less.
In the Consolidated statement of cash flows, cash and cash equivalents are as above net of bank overdrafts.

Page 19

 
AEW PADDOCK MOTORS LIMITED
 

 
Notes to the financial statements
for the year ended 31 December 2022

3.


Judgments in applying accounting policies and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgments, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. The following judgments (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Investment property - under FRS 102 investment property must be held at fair value. All properties are considered to be held at market value following a benchmarking exercise and therefore no further valuation consideration has been applied.
Stock provision - where stock lines have not sold within the past two years, the stock is fully written down.
Loyalty points - judgment is required when estimating the value of unused loyalty points at the year end by using available information on expected accrued points and in year usage.


4.


Turnover

An analysis of turnover by class of business is as follows:


2022
2021
£
£

Sale of goods
10,418,656
10,677,471


An analysis of turnover by geographical location has not been disclosed as in the opinion of the directors this would seriously prejudice the Group's interests.


5.


Other operating income

2022
2021
£
£

Net rents receivable
20,340
30,047

Sundry income
-
56,475

20,340
86,522



6.


Operating profit

The operating profit is stated after charging:

2022
2021
£
£

Exchange differences
11,478
70,243

Depreciation
8,157
8,998

Amortisation
4,942
-

Page 20

 
AEW PADDOCK MOTORS LIMITED
 

 
Notes to the financial statements
for the year ended 31 December 2022

7.


Auditors' remuneration

During the year, the Group obtained the following services from the Company's auditors:


2022
2021
£
£

Fees payable to the Company's auditors for the audit of the consolidated and parent Company's financial statements
18,000
16,000

Subsidiary audit fees
3,600
3,250

Other non-audit fees
66,000
63,400


8.


Employees

Staff costs, including directors' remuneration, were as follows:


Group
Group
Company
Company
2022
2021
2022
2021
£
£
£
£


Wages and salaries
949,643
957,520
933,655
940,096

Social security costs
100,503
78,956
100,503
78,956

Cost of defined contribution scheme
18,631
17,855
18,631
17,855

1,068,777
1,054,331
1,052,789
1,036,907

The average monthly number of employees, including the directors, during the year was as follows:



Group
Group
Company
Company
        2022
        2021
        2022
        2021
            No.
            No.
            No.
            No.









Employees
39
46
38
45


9.


Directors' remuneration

2022
2021
£
£

Directors' emoluments
99,971
88,488

Group contributions to defined contribution pension schemes
1,235
941


During the year retirement benefits were accruing to 1 director (2021 - 1) in respect of defined contribution pension schemes.

Page 21

 
AEW PADDOCK MOTORS LIMITED
 

 
Notes to the financial statements
for the year ended 31 December 2022

10.


Interest receivable

2022
2021
£
£


Other interest receivable
62
526


11.


Interest payable and similar expenses

2022
2021
£
£


Bank interest payable
89,674
580

Other interest payable
1,379
-


12.


Taxation


2022
2021
£
£

Corporation tax


Current tax on profits for the year
7,549
82,262

Adjustments in respect of previous periods
(22,564)
-


Total current tax
(15,015)
82,262

Deferred tax


Origination and reversal of timing differences
43,771
35,252

Total deferred tax
43,771
35,252


Taxation on profit on ordinary activities
28,756
117,514
Page 22

 
AEW PADDOCK MOTORS LIMITED
 

 
Notes to the financial statements
for the year ended 31 December 2022
 
12.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is higher than (2021 - higher than) the standard rate of corporation tax in the UK of 19% (2021 - 19%). The differences are explained below:

2022
2021
£
£


Profit on ordinary activities before tax
122,348
558,197


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2021 - 19%)
23,246
106,057

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
187
616

Capital allowances for year in excess of depreciation
(252)
661

Adjustments to tax charge in respect of prior periods
(22,564)
1,426

Non-taxable income
-
(47,500)

Adjustment in research and development tax credit leading to an increase  in the tax charge
(702)
8,971

Capital gains
11,208
47,283

Unrelieved tax losses carried forward
17,633
-

Total tax charge for the year
28,756
117,514


Factors that may affect future tax charges

In April 2023, the rate of corporation tax increased to 25%, a 6% increase from the current 19%.

Page 23

 
AEW PADDOCK MOTORS LIMITED
 

 
Notes to the financial statements
for the year ended 31 December 2022

13.


Intangible assets

Group





Website development
Goodwill
Total

£
£
£



Cost


At 1 January 2022
49,417
1,907,131
1,956,548



At 31 December 2022

49,417
1,907,131
1,956,548



Amortisation


At 1 January 2022
-
1,907,131
1,907,131


Charge for the year on owned assets
4,942
-
4,942



At 31 December 2022

4,942
1,907,131
1,912,073



Net book value



At 31 December 2022
44,475
-
44,475



At 31 December 2021
49,417
-
49,417



Page 24

 
AEW PADDOCK MOTORS LIMITED
 

 
Notes to the financial statements
for the year ended 31 December 2022
 
           13.Intangible assets (continued)

Company




Website development

£



Cost


At 1 January 2022
49,417



At 31 December 2022

49,417



Amortisation


Charge for the year
4,942



At 31 December 2022

4,942



Net book value



At 31 December 2022
44,475



At 31 December 2021
49,417

Page 25

 
AEW PADDOCK MOTORS LIMITED
 

 
Notes to the financial statements
for the year ended 31 December 2022

14.


Tangible fixed assets

Group






Short-term leasehold property
Plant and machinery
Fixtures and fittings
Computer equipment
Total

£
£
£
£
£



Cost


At 1 January 2022
118,725
117,182
97,121
13,468
346,496



At 31 December 2022

118,725
117,182
97,121
13,468
346,496



Depreciation


At 1 January 2022
83,562
104,155
93,670
13,468
294,855


Charge for the year on owned assets
4,798
2,669
690
-
8,157



At 31 December 2022

88,360
106,824
94,360
13,468
303,012



Net book value



At 31 December 2022
30,365
10,358
2,761
-
43,484



At 31 December 2021
35,163
13,027
3,451
-
51,641

Page 26

 
AEW PADDOCK MOTORS LIMITED
 

 
Notes to the financial statements
for the year ended 31 December 2022

           14.Tangible fixed assets (continued)


Company






Short-term leasehold property
Plant and machinery
Fixtures and fittings
Computer equipment
Total

£
£
£
£
£

Cost


At 1 January 2022
118,725
58,428
97,121
13,468
287,742



At 31 December 2022

118,725
58,428
97,121
13,468
287,742



Depreciation


At 1 January 2022
83,562
50,147
93,670
13,468
240,847


Charge for the year on owned assets
4,798
1,720
690
-
7,208



At 31 December 2022

88,360
51,867
94,360
13,468
248,055



Net book value



At 31 December 2022
30,365
6,561
2,761
-
39,687



At 31 December 2021
35,163
8,281
3,451
-
46,895






Page 27

 
AEW PADDOCK MOTORS LIMITED
 

 
Notes to the financial statements
for the year ended 31 December 2022

15.


Fixed asset investments

Company





Investments in subsidiary companies

£



Cost


At 1 January 2022
1,788,395


Disposals
(75)


Amounts written off
(1,600,000)



At 31 December 2022
188,320





Subsidiary undertakings


The following were subsidiary undertakings of the Company:

Name

Class of shares

Holding

Crosstower Ventures Limited
Ordinary
100%
English Land and Estates Developments Limited
Ordinary
100%

The registered office of all subsidiaries is The Showground, The Cliff, Matlock, Derbyshire, DE4 5EW. All subsidiaries are included in the consolidation.

Page 28

 
AEW PADDOCK MOTORS LIMITED
 

 
Notes to the financial statements
for the year ended 31 December 2022

16.


Investment property

Group and Company


Freehold investment property

£



Valuation


At 1 January 2022
1,513,204


Surplus on revaluation
186,796



At 31 December 2022
1,700,000

The 2022 valuations were made by the directors, on an open market value for existing use basis.



If the Investment properties had been accounted for under the historic cost accounting rules, the properties would have been measured as follows:

2022
2021
£
£


Historic cost
1,379,871
1,379,871


17.


Stocks

Group
Group
Company
Company
2022
2021
2022
2021
£
£
£
£

Work in progress
14,687,851
12,939,037
-
-

Finished goods
1,768,256
1,598,067
1,768,256
1,598,067

16,456,107
14,537,104
1,768,256
1,598,067


The difference between purchase price or production cost of stocks and their replacement cost is not material.

The carrying value of stocks are stated net of impairment losses totalling £191,837 (2021 - £225,360). Impairment losses totalling  -£33,523 (2021 - £34,557) were recognised in profit and loss.





 

Page 29

 
AEW PADDOCK MOTORS LIMITED
 

 
Notes to the financial statements
for the year ended 31 December 2022

18.


Debtors

Group
Group
Company
Company
2022
2021
2022
2021
£
£
£
£


Trade debtors
187,698
102,121
187,698
102,121

Amounts owed by group undertakings
-
-
9,771,085
11,766,203

Amounts owed by connected parties
3,140,408
-
3,140,408
-

Other debtors
187,728
155,476
91,585
101,219

Prepayments and accrued income
291,356
27,647
94,211
25,895

3,807,190
285,244
13,284,987
11,995,438


Amounts owed by group undertakings are unsecured, interest free, have no fixed date of repayment and are repayable on demand. 


19.


Cash and cash equivalents

Group
Group
Company
Company
2022
2021
2022
2021
£
£
£
£

Cash at bank and in hand
92,091
977,500
85,766
972,810



20.


Creditors: Amounts falling due within one year

Group

Group
As restated
Company

Company
As restated
2022
2021
2022
2021
£
£
£
£

Trade creditors
1,664,997
937,827
1,379,888
937,827

Amounts owed to group undertakings
-
-
241,448
241,448

Corporation tax
54,613
228
54,613
-

Other taxation and social security
455,041
412,367
453,778
411,298

Other creditors
1,523,798
1,387,992
3,407
3,844

Accruals and deferred income
442,197
523,344
248,196
270,577

4,140,646
3,261,758
2,381,330
1,864,994


Amounts owed to group undertakings are unsecured, interest free, have no fixed date of repayment and are repayable on demand. 

Page 30

 
AEW PADDOCK MOTORS LIMITED
 

 
Notes to the financial statements
for the year ended 31 December 2022

21.


Creditors: Amounts falling due after more than one year

Group
Group
2022
2021
£
£

Other loans
3,708,111
-

3,708,111
-



The following liabilities were secured:
Group
Group
2022
2021
£
£


Other loans
3,708,111
-

3,708,111
-

Details of security provided:

The loan is repayable in full in 2024. It is secured against the property held within subsidiary work in progress by way of a fixed and floating charge. Interest is payable at 7.8% per annum.




22.


Financial instruments

Group
Group
Company
Company
2022
2021
2022
2021
£
£
£
£

Financial assets

Financial assets measured at fair value through profit or loss
92,091
977,500
85,766
972,810

Financial assets measured at amortised cost
3,515,834
257,597
13,190,776
12,039,577

3,607,925
1,235,097
13,276,542
13,012,387


Financial liabilities

Financial liabilities measured at amortised cost
(6,896,906)
(2,325,819)
(1,624,743)
(1,183,119)


Financial assets measured at fair value through profit or loss comprise cash at bank and in hand.
Financial assets measured at amortised cost comprise trade debtors, other debtors, amounts due from connected parties and amounts due from group undertakings.


Financial liabilities measured at amortised cost comprise trade creditors, other creditors, other loans and amounts owed to group undertakings.

Page 31

 
AEW PADDOCK MOTORS LIMITED
 

 
Notes to the financial statements
for the year ended 31 December 2022

23.


Deferred taxation


Group



2022


£






At beginning of year
(37,381)


Charged to profit or loss
(46,699)


Utilised in year
2,928



At end of year
(81,152)

Company


2022


£






At beginning of year
(37,381)


Charged to profit or loss
(46,699)


Utilised in year
2,928



At end of year
(81,152)

Group
Group
Company
Company
2022
2021
2022
2021
£
£
£
£

Accelerated capital allowances
(1,972)
(5,009)
(1,972)
(5,009)

Capital gains
(80,032)
(33,333)
(80,032)
(33,333)

Other short term timing differences
852
961
852
961

(81,152)
(37,381)
(81,152)
(37,381)


24.


Share capital

2022
2021
£
£
Allotted, called up and fully paid



100 (2021 - 100) Ordinary shares of £1.00 each
100
100


Page 32

 
AEW PADDOCK MOTORS LIMITED
 

 
Notes to the financial statements
for the year ended 31 December 2022

25.


Reserves

Share premium account

The share premium account represents the premium arising on the issue of shares net of issue costs.

Investment property revaluation reserve

This reserve is used to record changes in the fair value of investment properties as these are not distributable.

Profit and loss account

The profit and loss account represents cumulative profits and losses.


26.


Prior year adjustment

The other taxation and social security creditor has decreased and profit and loss reserves increased by £281,940 after reversing historic errors in relation to creditors for VAT in foreign jurisdictions.


27.


Pension commitments

The group operates a defined contribution pension scheme. The pension cost charge for the period represents contributions payable by the group to the scheme and amounted to £18,631 (2021: £17,855).
Contributions totalling £3,407 (2021: £3,844) were payable to the scheme at the end of the year and are included in other creditors.


28.


Commitments under operating leases

At 31 December 2022 the Group and the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:


Group
Group
Company
Company
2022
2021
2022
2021
£
£
£
£

Not later than 1 year
4,172
4,172
4,172
4,172

Later than 1 year and not later than 5 years
10,880
15,052
10,880
15,052

15,052
19,224
15,052
19,224

Page 33

 
AEW PADDOCK MOTORS LIMITED
 

 
Notes to the financial statements
for the year ended 31 December 2022

29.


Related party transactions

Directors' loan account
Payments out of the group totalled £607 (2021: £33,683) and payments in to the group totalled £138,000 (2021: £nil) in the year bringing the directors' loan balance to a net total of £1,520,166 (2021: £1,382,772). No interest has been charged on the loan balances in either year.
Related party pension scheme of directors
Rent charges total £65,000 (2021: £65,000). There is a prepayment of £65,000 (2021: £nil) and a trade creditor of £78,000 (2021: £nil) as well as an accrual of £65,000 (2021: £65,000). Payments were also paid on behalf of the pension scheme totalling £nil (2021: £nil) which is within other debtors at a balance of £79,585 (2021: £79,585).
Key management personnel
All employees of the parent and subsidiaries who have authority and responsibility for planning, directing and controlling the activities of the group are considered to be key management personnel. Total remuneration in respect of these individuals is £101,206 (2021: £99,292).


30.


Controlling party

The company is jointly controlled by the directors.


Page 34