Company registration number 11144139 (England and Wales)
SINGER BODY AND PAINT LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
SINGER BODY AND PAINT LIMITED
COMPANY INFORMATION
Directors
Mr. R P Dickinson
Mr. M Fawaz
Secretary
Mr. R P Dickinson
Company number
11144139
Registered office
Unit 5
Grants Hill Way
Woodford Halse
Daventry
Northamptonshire
United Kingdom
NN11 3UB
Auditor
Azets Audit Services
Epsilon House
The Square
Gloucester Business Park
Gloucester
United Kingdom
GL3 4AD
SINGER BODY AND PAINT LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Statement of income and retained earnings
7
Balance sheet
8
Statement of cash flows
9
Notes to the financial statements
10 - 21
SINGER BODY AND PAINT LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 1 -

The directors present the strategic report for the year ended 31 December 2022.

Fair review of the business

Singer Body and Paint Limited grew rapidly in the year ending 31 December 2022. Inventory holding increased by 65% from the prior year. This is due to an increase in production capabilities and increased output in finished cars that were shipped to the end customers.

 

The company has made great progress in entering the ultra-luxury market and continues to see strong demand for its automotive services. The company’s philosophy of ‘Everything Is Important’ resonates throughout the business from the production floor to the company offices.

Principal risks and uncertainties

The business has seen supply chain risk in obtaining raw materials and certain parts. This has been mitigated by implementing thorough purchasing plans for each applicable part and coordinating closely with the relevant suppliers.

 

The supply chain security of suppliers is also an uncertainty given we work with some smaller bespoke companies. However, we do purchase in bulk to mitigate against this risk.

Future developments

The UK initial programme started shipping cars in 2022 (DLS) and were finished at the end of 2023. In 2024 a new programme will commence in the UK (DLS-T) and other programmes are being developed to secure the long-term future of the company.

Other performance indicators

KPI

YE 2022

YE 2021

Headcount (SBP)

104

50

Cars Delivered

31

0

Production vs Target

31/32

0/12

Research and development

R&D spending is common through the production process for material improvements. Labour cost in the company also contributes to new R&D programmes within the group.

On behalf of the board

Mr. R P Dickinson
Director
10 March 2024
SINGER BODY AND PAINT LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 2 -

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

Principal activities

The principal activity of the company continued to be that of the development, restoration and customisation of ultra-luxury vehicles.

Results and dividends

The results for the year are set out on page 7.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr. R P Dickinson
Mr. M Fawaz
Statement of directors' responsibilities

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

 

 

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.

Strategic report

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of the 'Fair Review of the Business' and 'Development and Performance' of the company for the year.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

SINGER BODY AND PAINT LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 3 -
On behalf of the board
Mr. R P Dickinson
Mr. M Fawaz
Director
Director
10 March 2024
SINGER BODY AND PAINT LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SINGER BODY AND PAINT LIMITED
- 4 -
Opinion

We have audited the financial statements of Singer Body and Paint Limited (the 'company') for the year ended 31 December 2022 which comprise the statement of income and retained earnings, the balance sheet, the statement of cash flows and notes to the financial statements, including 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:

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 Auditor's 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 other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

SINGER BODY AND PAINT LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SINGER BODY AND PAINT LIMITED
- 5 -
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 and the directors' report.

 

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:

 

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, 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. 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.

Auditor's 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 auditor's 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 financial statements.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

SINGER BODY AND PAINT LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SINGER BODY AND PAINT LIMITED
- 6 -

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

 

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework.  Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.  This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

 

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

 

 

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 of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

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 an auditor's 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.

Rebecca Hudson (Senior Statutory Auditor)
For and on behalf of Azets Audit Services
11 March 2024
Chartered Accountants
Statutory Auditor
Epsilon House
The Square
Gloucester Business Park
Gloucester
United Kingdom
GL3 4AD
SINGER BODY AND PAINT LIMITED
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 DECEMBER 2022
- 7 -
2022
2021
Notes
£
£
Turnover
2
35,686,909
11,091,564
Cost of sales
(29,483,127)
(8,382,013)
Gross profit
6,203,782
2,709,551
Administrative expenses
(4,962,223)
(2,497,648)
Other operating income
-
0
4,578
Exceptional item
3
(365,000)
-
0
Operating profit
4
876,559
216,481
Interest receivable and similar income
6
48
4
Interest payable and similar expenses
7
(1,223)
-
0
Profit before taxation
875,384
216,485
Tax on profit
8
24,932
495,108
Profit for the financial year
900,316
711,593
Retained earnings brought forward
(1,003,278)
(1,714,871)
Retained earnings carried forward
(102,962)
(1,003,278)

The profit and loss account has been prepared on the basis that all operations are continuing operations.

SINGER BODY AND PAINT LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2022
31 December 2022
- 8 -
2022
2021
Notes
£
£
£
£
Fixed assets
Intangible assets
9
33,794
27,856
Tangible assets
10
1,417,234
567,765
1,451,028
595,621
Current assets
Stocks
11
11,862,951
7,200,312
Debtors
12
5,220,374
1,719,557
Cash at bank and in hand
2,905,002
798,538
19,988,327
9,718,407
Creditors: amounts falling due within one year
13
(21,542,217)
(11,317,206)
Net current liabilities
(1,553,890)
(1,598,799)
Net liabilities
(102,862)
(1,003,178)
Capital and reserves
Called up share capital
15
100
100
Profit and loss reserves
(102,962)
(1,003,278)
Total equity
(102,862)
(1,003,178)
The financial statements were approved by the board of directors and authorised for issue on 10 March 2024 and are signed on its behalf by:
Mr. R P Dickinson
Mr. M Fawaz
Director
Director
Company Registration No. 11144139
SINGER BODY AND PAINT LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2022
- 9 -
2022
2021
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
20
3,455,997
793,384
Interest paid
(1,223)
-
0
Income taxes refunded
356,800
-
0
Net cash inflow from operating activities
3,811,574
793,384
Investing activities
Purchase of intangible assets
(19,777)
(34,359)
Purchase of tangible fixed assets
(1,685,381)
(188,338)
Interest received
48
4
Net cash used in investing activities
(1,705,110)
(222,693)
Net increase in cash and cash equivalents
2,106,464
570,691
Cash and cash equivalents at beginning of year
798,538
227,847
Cash and cash equivalents at end of year
2,905,002
798,538
SINGER BODY AND PAINT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
- 10 -
1
Accounting policies
Company information

Singer Body and Paint Limited is a private company limited by shares incorporated in England and Wales. The registered office is Unit 5, Grants Hill Way, Woodford Halse, Daventry, Northamptonshire, United Kingdom, NN11 3UB.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

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 £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

The company is dependent on the continued financial support of its related companies and its directors. Assurances have been received that the repayment of outstanding balances to related parties will not be required until the company is able to make such payments and that additional support will be made available to ensure that the company can meet its liabilities as they fall due. Accordingly, the directors consider it appropriate to prepare the accounts on a going concern basis.

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

The amount of revenue recognised from the sale of goods is equivalent to the service costs plus five percent per fully or partly completed vehicle, based on a monthly production schedule, when the service costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.4
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Software
40% straight line
1.5
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

SINGER BODY AND PAINT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 11 -

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Leasehold land and buildings
20% Straight Line
Plant and machinery etc
20 - 33% Straight Line
Fixtures and fittings
20% Straight Line
Computers
20 % Straight Line
Motor vehicles
20 % Straight Line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.6
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.7
Stocks

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

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

 

Work in progress

Work in progress represents costs incurred on fully or partly completed vehicles, net of amounts recorded as turnover.

SINGER BODY AND PAINT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 12 -
1.8
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.9
Financial instruments

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally 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.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

SINGER BODY AND PAINT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 13 -
Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.10
Equity instruments

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

1.11
Taxation

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

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

SINGER BODY AND PAINT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 14 -
Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.12
Provisions

Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

 

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

1.13
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.14
Retirement benefits

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

1.15
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

1.16
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

SINGER BODY AND PAINT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 15 -
1.17
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

1.18

Related parties

The company has taken advantage of exemption under Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

1.19

Exceptional items

Exceptional items are those which are separately identified by virtue of their size or nature to allow a full understanding of the underlying performance of the company.

2
Turnover and other revenue

Turnover of the company is attributable entirely to the principal activity of the company, and to sales made to the USA.

2022
2021
£
£
Other revenue
Interest income
48
4
Grants received
-
4,578
3
Exceptional item
2022
2021
£
£
Expenditure
Settlement claims
365,000
-

Amounts classified as exceptional items relate to amounts settled in respect of product claims.

4
Operating profit
2022
2021
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses
267,115
228,498
Government grants
-
(4,578)
Fees payable to the company's auditor for the audit of the company's financial statements
25,000
22,000
Depreciation of owned tangible fixed assets
835,912
178,529
Amortisation of intangible assets
13,839
6,503
Operating lease charges
318,080
184,679
SINGER BODY AND PAINT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 16 -
5
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2022
2021
Number
Number
Total
79
48

Their aggregate remuneration comprised:

2022
2021
£
£
Wages and salaries
3,641,770
2,507,080
Social security costs
433,606
267,670
Pension costs
55,046
33,535
4,130,422
2,808,285
6
Interest receivable and similar income
2022
2021
£
£
Interest income
Interest on bank deposits
48
4
7
Interest payable and similar expenses
2022
2021
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
1,223
-
8
Taxation
2022
2021
£
£
Current tax
UK corporation tax on profits for the current period
-
0
(162,973)
Adjustments in respect of prior periods
(24,932)
(332,135)
Total current tax
(24,932)
(495,108)
SINGER BODY AND PAINT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
8
Taxation
(Continued)
- 17 -

The actual credit for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2022
2021
£
£
Profit before taxation
875,384
216,485
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2021: 19.00%)
166,323
41,132
Tax effect of expenses that are not deductible in determining taxable profit
5,175
736
Unutilised tax losses carried forward
280,264
-
0
Effect of change in corporation tax rate
(67,263)
-
0
Research and development tax credit
(356,843)
(242,712)
Other permanent differences
(27,656)
37,871
Under/(over) provided in prior years
(24,932)
(332,135)
Taxation credit for the year
(24,932)
(495,108)

Factors that may affect future tax charges

The company has tax losses available to use against future trading profits in the region of £2,670,000 (2021: £1,780,000). The company does not anticipate these losses to be fully utilised in the immediate future, and as such has recognised £Nil (2021: £Nil) of the deferred tax asset.

 

The value of the unrecognised deferred tax asset is in the region of £647,000 (2021: £488,000). This has been calculated using a rate of 25%, on the basis that the increase in the main rate of UK Corporation Tax to 25% intended to take effect from 1 April 2023 had been enacted at the Balance Sheet date.

9
Intangible fixed assets
Software
£
Cost
At 1 January 2022
34,359
Additions
19,777
At 31 December 2022
54,136
Amortisation and impairment
At 1 January 2022
6,503
Amortisation charged for the year
13,839
At 31 December 2022
20,342
Carrying amount
At 31 December 2022
33,794
At 31 December 2021
27,856
SINGER BODY AND PAINT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
9
Intangible fixed assets
(Continued)
- 18 -

Intangible fixed assets are secured by a fixed and floating charge in favour of the bank.

10
Tangible fixed assets
Leasehold land and buildings
Plant and machinery etc
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 January 2022
158,080
616,571
73,063
86,858
34,387
968,959
Additions
24,220
1,355,794
305,367
-
0
-
0
1,685,381
Transfers
-
0
-
0
86,858
(86,858)
-
0
-
0
At 31 December 2022
182,300
1,972,365
465,288
-
0
34,387
2,654,340
Depreciation and impairment
At 1 January 2022
85,267
255,448
8,665
24,306
27,508
401,194
Depreciation charged in the year
32,974
758,215
37,846
-
0
6,877
835,912
Transfers
-
0
-
0
24,306
(24,306)
-
0
-
0
At 31 December 2022
118,241
1,013,663
70,817
-
0
34,385
1,237,106
Carrying amount
At 31 December 2022
64,059
958,702
394,471
-
0
2
1,417,234
At 31 December 2021
72,813
361,123
64,398
62,552
6,879
567,765

Tangible fixed assets are secured by a fixed and floating charge in favour of the bank.

11
Stocks
2022
2021
£
£
Raw materials and consumables
11,286,843
6,142,720
Work in progress
576,108
1,057,592
11,862,951
7,200,312

Stocks are secured by a fixed and floating charge in favour of the bank.

SINGER BODY AND PAINT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 19 -
12
Debtors
2022
2021
Amounts falling due within one year:
£
£
Trade debtors
13,303
27,540
Corporation tax recoverable
163,240
495,108
Other debtors
4,888,546
1,118,495
Prepayments and accrued income
155,285
78,414
5,220,374
1,719,557

Debtors are secured by a fixed and floating charge in favour of the bank.

13
Creditors: amounts falling due within one year
2022
2021
£
£
Trade creditors
2,696,760
3,646,782
Amounts owed to group undertakings
17,660,862
7,370,058
Taxation and social security
157,972
66,237
Other creditors
45,456
217,359
Accruals and deferred income
981,167
16,770
21,542,217
11,317,206

Amounts owed to group undertakings are unsecured, interest free and repayable on demand.

14
Retirement benefit schemes
2022
2021
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
55,046
33,535

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

15
Share capital
2022
2021
2022
2021
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100
100
100
100
SINGER BODY AND PAINT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 20 -
16
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2022
2021
£
£
Within one year
188,925
159,930
Between two and five years
239,998
283,685
428,923
443,615
17
Capital commitments

There were no capital commitments as at 31 December 2022 (2021: £Nil).

18
Contingent liabilities

There were no contingent liabilities as at 31 December 2022 (2021: £Nil).

19
Ultimate controlling party

The immediate parent company of Singer Body and Paint Limited is Singer Group Intermediate LLC.

 

The ultimate parent company of Singer Body and Paint Limited is Singer Group Incorporated, a company registered in the USA. Singer Group Incorporated is the parent of the smallest and largest group for which consolidated accounts are prepared and of which the company is a member. The group accounts are publicly available.

20
Cash generated from operations
2022
2021
£
£
Profit for the year after tax
900,316
711,593
Adjustments for:
Taxation credited
(24,932)
(495,108)
Finance costs
1,223
-
0
Investment income
(48)
(4)
Amortisation and impairment of intangible assets
13,839
6,503
Depreciation and impairment of tangible fixed assets
835,912
178,529
Movements in working capital:
Increase in stocks
(4,662,639)
(4,634,209)
Increase in debtors
(3,832,685)
(270,445)
Increase in creditors
10,225,011
5,296,525
Cash generated from operations
3,455,997
793,384
SINGER BODY AND PAINT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 21 -
21
Analysis of changes in net funds
1 January 2022
Cash flows
31 December 2022
£
£
£
Cash at bank and in hand
798,538
2,106,464
2,905,002
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