Company registration number 06673195 (England and Wales)
TRIGON GROUP LIMITED
ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
TRIGON GROUP LIMITED
COMPANY INFORMATION
Directors
J E Eden
M J Eden
Secretary
M J Eden
Company number
06673195
Registered office
5 Prospect Place
Millennium Way
Pride Park
Derby
DE24 8HG
Auditor
Ashgates Corporate Services Limited
5 Prospect Place
Millennium Way
Pride Park
Derby
DE24 8HG
TRIGON GROUP LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Profit and loss account
8
Group statement of comprehensive income
9
Group balance sheet
10 - 11
Company balance sheet
12
Group statement of changes in equity
13
Company statement of changes in equity
14
Group statement of cash flows
15
Notes to the financial statements
16 - 33
TRIGON GROUP LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2023
- 1 -

The directors present the strategic report for the year ended 30 June 2023.

Review of the business

We aim to present a balanced and comprehensive review of the development and performance of the group during the year and its position at the year end. Our review is consistent with the size and non-complex nature of the group and is written in the context of the risks and uncertainties faced.

 

The parent company intends to remain dormant. The group structure came in to place on the 14 April 2009, when the subsidiaries were acquired. During the period the group disposed of one of its subsidiaries, Parksafe Automotive Limited, details are shown in note 26.

 

The group has enjoyed a very successful trading year, recording a substantial increase in pre tax profits. A new Retail site was opened at Gainsborough and the company also acquired the Retail business of Apex Tyres in Peterborough taking the number of Retail sites to 22. The trading performance of the newer Retail sites was significantly better than the previous year and was a key factor in the increased profits generated from Retail. Trading in Wholesale division continued to recover from the impact of the Covid-19 pandemic with improving demand and stable margins.

 

Investment continues in online services to make the customer experience and ongoing customer retention as efficient and effective as possible and overall demand for the group’s products and services remains very strong. The group continues to look for prime sites and business acquisition opportunities in areas with growing populations.

 

A business review for each subsidiary can be found within the subsidiaries own financial statements where relevant.

 

The group's key financial and other performance indicators during the year were as follows:

Unit
2023
2022
Turnover
£
43,896,417
41,873,507
Gross profit margin
%
20
20
Profit after taxation
£
3,746,060
2,893,332
Shareholders' funds
£
15,420,732
13,017,502

On behalf of the board

M J Eden
Director
14 February 2024
TRIGON GROUP LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2023
- 2 -

The directors present their annual report and financial statements for the year ended 30 June 2023.

Principal activities

The principal activity of the company is that of a dormant holding company. The Group's principal activity is that of retail tyre and servicing centres and tyre wholesalers.

Results and dividends

The results for the year are set out on page 8.

Ordinary dividends were paid amounting to £864,000. The directors do not recommend payment of a further dividend.

Directors

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

J E Eden
M J Eden
Financial instruments

Objectives and policies

The group is exposed to the following risks from its use of financial instruments:

-    Credit Risk

-    Liquidity Risk

-    Currency Risk

 

The directors have overall responsibility for the establishment and oversight of the group’s risk management framework.

 

The group does not have a formal risk management policy program. The exposure to the above risks are monitored by the Board of Directors as part of its daily management of the group activities.

 

 

Price risk, credit risk, liquidity risk and cash flow risk

Credit risk:

Credit risk arises when a failure by counter parties to discharge their obligations could reduce the amount of future cash inflows from financial assets on hand at the reporting date. The group has no significant concentration of credit risk. The group has an insurance policy in place which ensures any failure by a party to discharge their obligations does not result in a significant reduction of cash inflows. In addition to this policy the group ensures that sales of products and services are made to customers with an appropriate credit history and monitors on a continuous basis the ageing profile of its receivables.

 

Liquidity risk:

Liquidity risk is the risk that arises when the maturity of assets and liabilities does not match. An unmatched position potentially enhances profitability, but can also increase the risk of losses. The group has procedures with the object of minimising such losses such as maintaining sufficient cash and other assets.

 

Currency risk:

Currency risk is the risk that the value of financial instruments will fluctuate due to changes in foreign exchange rates. Currency risk arises when future commercial transactions and recognised assets and liabilities are denominated in a currency that is not the group's functional currency. The group is exposed to foreign exchange risk arising from various currency exposures primarily with respect to the Euro and US Dollars. The group's management monitors the exchange rate fluctuations on a continuous basis and acts accordingly.

TRIGON GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 3 -
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 auditor of the company 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 auditor of the company is aware of that information.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
M J Eden
Director
14 February 2024
TRIGON GROUP LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 JUNE 2023
- 4 -

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 group and company, and of the profit or loss of the group 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 group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

TRIGON GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF TRIGON GROUP LIMITED
- 5 -
Opinion

We have audited the financial statements of Trigon Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 June 2023 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group 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 group and parent 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 group's and parent 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:

TRIGON GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF TRIGON GROUP LIMITED
- 6 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

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:

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 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 parent 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.

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.

We are not responsible for preventing irregularities. Our approach to detecting irregularities included, but was not limited to, the following:

• obtaining an understanding of the legal and regulatory framework applicable to the entity and how the entity is complying with that framework;

• obtaining an understanding of the entity's policies and procedures and how the entity has complied with these, through discussions and walkthrough testing;

• obtaining an understanding of the entity's risk assessment process, including the risk of fraud;

• enquiring of management as to actual and potential fraud, litigation and claims;

• designing our audit procedures to respond to our risk assessment;

• performing audit testing over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness and evaluating the business rationale of significant transactions outside the normal course of business;

• assessing whether judgements and assumptions made in determining the accounting estimates set out in note 2 were indicative of potential bias; and

• performing analytical procedures to identify any large, unusual or unexpected relationships.

 

TRIGON GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF TRIGON GROUP LIMITED
- 7 -

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 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.

 

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

 

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.

David Mark Newborough
Senior Statutory Auditor
For and on behalf of Ashgates Corporate Services Limited
Statutory Auditor
5 Prospect Place
Millennium Way
Pride Park
Derby
DE24 8HG
14 February 2024
TRIGON GROUP LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 JUNE 2023
- 8 -
Continuing
Discontinued
30 June
Continuing
Discontinued
30 June
operations
operations
2023
operations
operations
2022
Notes
£
£
£
£
£
£
Turnover
3
43,896,417
-
43,896,417
38,969,751
2,903,756
41,873,507
Cost of sales
(35,149,429)
-
(35,149,429)
(31,813,811)
(1,622,444)
(33,436,255)
Gross profit
8,746,988
-
8,746,988
7,155,940
1,281,312
8,437,252
Administrative expenses
(4,235,179)
-
(4,235,179)
(3,864,428)
(856,665)
(4,721,093)
Other operating income
-
-
-
838
-
838
Operating profit
4
4,511,809
-
4,511,809
3,292,350
424,647
3,716,997
Interest receivable and similar income
8
2,692
-
2,692
-
58
58
Interest payable and similar expenses
9
(81,715)
-
(81,715)
(65,935)
(942)
(66,877)
Other gains and losses
10
175,038
-
175,038
-
-
-
Profit before taxation
4,607,824
-
4,607,824
3,226,415
423,763
3,650,178
Tax on profit
11
(861,764)
-
(861,764)
(686,738)
(70,108)
(756,846)
Profit for the financial year
25
3,746,060
-
3,746,060
2,539,677
353,655
2,893,332
Profit for the financial year is attributable to:
- Owners of the parent company
3,594,437
2,672,505
- Non-controlling interests
151,623
220,827
3,746,060
2,893,332
TRIGON GROUP LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2023
- 9 -
2023
2022
£
£
Profit for the year
3,746,060
2,893,332
Other comprehensive income
Revaluation of tangible fixed assets
-
0
780,539
Total comprehensive income for the year
3,746,060
3,673,871
Total comprehensive income for the year is attributable to:
- Owners of the parent company
3,594,437
3,453,044
- Non-controlling interests
151,623
220,827
3,746,060
3,673,871

The net surplus/(deficit) on property, plant and equipment revaluations noted above is after deferred tax charge/(credit) for the year of £nil (2022 - £45,741).

 

TRIGON GROUP LIMITED
GROUP BALANCE SHEET
AS AT
30 JUNE 2023
30 June 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
12
540,833
-
0
Negative goodwill
12
(251,596)
(258,626)
Total intangible assets
289,237
(258,626)
Tangible assets
13
12,204,393
9,729,457
12,493,630
9,470,831
Current assets
Stocks
16
3,487,417
4,609,400
Debtors
17
4,095,898
3,931,235
Cash at bank and in hand
5,323,645
3,069,705
12,906,960
11,610,340
Creditors: amounts falling due within one year
18
(9,012,604)
(6,545,188)
Net current assets
3,894,356
5,065,152
Total assets less current liabilities
16,387,986
14,535,983
Creditors: amounts falling due after more than one year
19
(500,792)
(1,105,725)
Provisions for liabilities
Deferred tax liability
22
466,462
412,756
(466,462)
(412,756)
Net assets
15,420,732
13,017,502
Capital and reserves
Called up share capital
24
201
201
Revaluation reserve
1,536,166
1,536,166
Profit and loss reserves
25
15,357,096
13,171,018
Equity attributable to owners of the parent company
16,893,463
14,707,385
Non-controlling interests
(1,472,731)
(1,689,883)
15,420,732
13,017,502

These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.

TRIGON GROUP LIMITED
GROUP BALANCE SHEET (CONTINUED)
AS AT
30 JUNE 2023
30 June 2023
- 11 -
The financial statements were approved by the board of directors and authorised for issue on 14 February 2024 and are signed on its behalf by:
14 February 2024
J E Eden
Director
Company registration number 06673195 (England and Wales)
TRIGON GROUP LIMITED
COMPANY BALANCE SHEET
AS AT 30 JUNE 2023
30 June 2023
- 12 -
2023
2022
Notes
£
£
£
£
Fixed assets
Investments
14
1,000,001
1,000,841
Current assets
Debtors
17
1,134,000
-
0
Net current assets
1,134,000
-
Net assets
2,134,001
1,000,841
Capital and reserves
Called up share capital
24
201
201
Profit and loss reserves
25
2,133,800
1,000,640
Total equity
2,134,001
1,000,841

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £1,997,160 (2022 - £684,000 profit).

The financial statements were approved by the board of directors and authorised for issue on 14 February 2024 and are signed on its behalf by:
14 February 2024
J E Eden
Director
Company registration number 06673195 (England and Wales)
TRIGON GROUP LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2023
- 13 -
Share capital
Revaluation reserve
Profit and loss reserves
Total controlling interest
Non-controlling interest
Total
Notes
£
£
£
£
£
£
Balance at 1 July 2021
201
755,627
11,182,513
11,938,341
(1,619,710)
10,318,631
Year ended 30 June 2022:
Profit for the year
-
-
2,672,505
2,672,505
220,827
2,893,332
Other comprehensive income:
Revaluation of tangible fixed assets
-
780,539
-
780,539
-
780,539
Total comprehensive income
-
780,539
2,672,505
3,453,044
220,827
3,673,871
Dividends
-
-
(684,000)
(684,000)
(291,000)
(975,000)
Balance at 30 June 2022
201
1,536,166
13,171,018
14,707,385
(1,689,883)
13,017,502
Year ended 30 June 2023:
Profit and total comprehensive income
-
-
3,594,437
3,594,437
151,623
3,746,060
Dividends
-
-
(864,000)
(864,000)
(176,000)
(1,040,000)
Other movements
-
-
(544,359)
(544,359)
241,529
(302,830)
Balance at 30 June 2023
201
1,536,166
15,357,096
16,893,463
(1,472,731)
15,420,732
TRIGON GROUP LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2023
- 14 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 July 2021
201
1,000,640
1,000,841
Year ended 30 June 2022:
Profit and total comprehensive income for the year
-
684,000
684,000
Dividends
-
(684,000)
(684,000)
Balance at 30 June 2022
201
1,000,640
1,000,841
Year ended 30 June 2023:
Profit and total comprehensive income
-
1,997,160
1,997,160
Dividends
-
(864,000)
(864,000)
Balance at 30 June 2023
201
2,133,800
2,134,001
TRIGON GROUP LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2023
- 15 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
31
8,198,412
2,113,930
Income taxes paid
(569,430)
(851,603)
Net cash inflow from operating activities
7,628,982
1,262,327
Investing activities
Purchase of intangible assets
(550,000)
-
Purchase of tangible fixed assets
(2,966,354)
(1,791,157)
Proceeds from disposal of tangible fixed assets
148,938
10,249
Proceeds from disposal of subsidiaries, net of cash disposed
12,591
-
Interest received
2,692
58
Net cash used in investing activities
(3,352,133)
(1,780,850)
Financing activities
Repayment of bank loans
(744,736)
(191,955)
Payment of finance leases obligations
(156,458)
(143,746)
Interest paid
(81,715)
(66,877)
Dividends paid to equity shareholders
(864,000)
(684,000)
Dividends paid to non-controlling interests
(176,000)
(291,000)
Net cash used in financing activities
(2,022,909)
(1,377,578)
Net increase/(decrease) in cash and cash equivalents
2,253,940
(1,896,101)
Cash and cash equivalents at beginning of year
3,069,705
4,965,806
Cash and cash equivalents at end of year
5,323,645
3,069,705
TRIGON GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
- 16 -
1
Accounting policies
Company information

Trigon Group Limited (“the company”) is a private company limited by shares, domiciled and incorporated in England and Wales. The registered office is 5 Prospect Place, Millennium Way, Pride Park, Derby, DE24 8HG.

 

The group consists of Trigon Group Limited and all of its subsidiaries.

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, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Trigon Group Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 30 June 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

TRIGON GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 17 -
1.4
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group 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.

1.5
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.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

Tyre fitting sales are recognised once the tyres are fitted on the customer’s vehicle and service sales once the service is complete. Sale of wholesale tyres and other goods are recognised once the goods are despatched from the warehouse.

1.6
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 5 years.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

 

Negative goodwill arising on an acquisition is recognised on the face of the balance sheet on the acquisition date and subsequently the excess up to the fair value of non-monetary assets acquired is recognised in profit or loss in the periods in which the non-monetary assets are recovered. Negative goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 50 years.

1.7
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.

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:

Land and buildings
2% straight line basis - land is not depreciated
Leasehold property
Straight line over the period of the lease
Fixtures, fittings and equipment
10%, 20%, 25% and 33% straight line and 20% reducing balance
Motor vehicles
25% straight line basis

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 recognised in the profit and loss account.

TRIGON GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 18 -
1.8
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.9
Impairment of fixed assets

At each reporting period end date, the group 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.

1.10
Stocks

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

 

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

1.11
Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

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

 

Financial assets and liabilities are offset and 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.

TRIGON GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 19 -
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 group 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 group after deducting all of its liabilities.

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.

TRIGON GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 20 -
Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.12
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 group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

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 if, and only if, there is 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.

1.13
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

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

TRIGON GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 21 -

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 leased asset are consumed.

1.16
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.

2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Impairment of stock

Management routinely review stock holdings in order to assess the recoverability of the cost of stocks and the associated impairment. Management calculates impairments by considering the nature and condition of the stock and applies assumptions around anticipated saleability of the goods.

Impairment of assets:

Upon acquisition, management make an estimation as to the useful economic life of each asset and set a depreciation rate accordingly. On a periodic basis, management makes an estimation of the remaining useful economic lives of assets. Management make such estimations taking into account their knowledge of the assets.

3
Turnover
2023
2022
£
£
Turnover analysed by class of business
Wholesale
29,040,749
29,810,859
Retail
14,855,668
12,062,648
43,896,417
41,873,507
2023
2022
£
£
Turnover analysed by geographical market
UK
43,896,417
41,873,507
TRIGON GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 22 -
4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange gains
(113,373)
(277)
Depreciation of tangible fixed assets
558,149
505,271
Profit on disposal of tangible fixed assets
(52,901)
(10,250)
Amortisation of intangible assets
2,137
17,489
Operating lease charges
418,598
437,188

Government grants received, included within other operating income, relate to the Job Retention Scheme and Retail Assistance Relief from Local Authorities both due to the Covid-19 pandemic.

The amount of grants recognised in the financial statements was £nil (2022 - £838).

5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
7,650
10,837
6
Employees

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

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Administration and support
13
16
-
-
Sales, marketing and distribution
18
19
-
-
Production
179
172
-
-
Total
210
207
-
0
-
0

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
5,538,052
5,435,772
-
0
-
0
Social security costs
505,686
484,653
-
-
Pension costs
371,981
238,636
-
0
-
0
6,415,719
6,159,061
-
0
-
0
TRIGON GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 23 -
7
Directors' remuneration
2023
2022
£
£
Remuneration
23,129
23,510
Company pension contributions to defined contribution schemes
80,000
8,000
103,129
31,510

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2022 - 2).

8
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
2,692
-
0
Other interest income
-
58
Total income
2,692
58
9
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
58,976
49,041
Other interest on financial liabilities
4,387
1,593
63,363
50,634
Other finance costs:
Interest on finance leases and hire purchase contracts
18,352
16,243
Total finance costs
81,715
66,877
10
Amounts written off investments
2023
2022
£
£
Gain on disposal of subsidiary
175,038
-
11
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
807,815
680,590
Adjustments in respect of prior periods
(1,966)
(1,133)
Total current tax
805,849
679,457
TRIGON GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
11
Taxation
2023
2022
£
£
(Continued)
- 24 -
Deferred tax
Origination and reversal of timing differences
55,915
69,777
Changes in tax rates
-
0
7,612
Total deferred tax
55,915
77,389
Total tax charge
861,764
756,846

The actual charge 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:

2023
2022
£
£
Profit before taxation
4,607,824
3,650,178
Expected tax charge based on the standard rate of corporation tax in the UK of 20.50% (2022: 19.00%)
944,604
693,534
Tax effect of expenses that are not deductible in determining taxable profit
35,896
25,413
Adjustments in respect of prior years
(1,966)
(1,133)
Deferred tax
55,915
77,389
Effect of capital allowances and depreciation
(136,802)
(38,357)
Effect of disposal of subsidiary
(35,883)
-
Taxation charge
861,764
756,846

The standard rate of corporation tax has changed in the current year due to an increase in UK tax rates during the year from 19% to 25%.

TRIGON GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 25 -
12
Intangible fixed assets
Group
Goodwill
Negative goodwill
Total
£
£
£
Cost
At 1 July 2022
475,786
(342,188)
133,598
Additions
550,000
-
0
550,000
Disposals
(256,793)
(9,293)
(266,086)
At 30 June 2023
768,993
(351,481)
417,512
Amortisation and impairment
At 1 July 2022
475,786
(83,562)
392,224
Amortisation charged for the year
9,167
(7,030)
2,137
Disposals
(256,793)
(9,293)
(266,086)
At 30 June 2023
228,160
(99,885)
128,275
Carrying amount
At 30 June 2023
540,833
(251,596)
289,237
At 30 June 2022
-
0
(258,626)
(258,626)
The company had no intangible fixed assets at 30 June 2023 or 30 June 2022.

The disposal in the year is in relation to Parksafe Automotive Limited leaving the group.

TRIGON GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 26 -
13
Tangible fixed assets
Group
Land and buildings
Fixtures, fittings and equipment
Motor vehicles
Total
£
£
£
£
Cost or valuation
At 1 July 2022
8,993,670
2,075,286
1,229,155
12,298,111
Additions
2,211,862
467,606
476,018
3,155,486
Disposals
-
0
(46,877)
(311,262)
(358,139)
At 30 June 2023
11,205,532
2,496,015
1,393,911
15,095,458
Depreciation and impairment
At 1 July 2022
323,673
1,594,239
650,742
2,568,654
Depreciation charged in the year
67,393
226,434
264,322
558,149
Eliminated in respect of disposals
-
0
(39,244)
(196,494)
(235,738)
At 30 June 2023
391,066
1,781,429
718,570
2,891,065
Carrying amount
At 30 June 2023
10,814,466
714,586
675,341
12,204,393
At 30 June 2022
8,669,997
481,047
578,413
9,729,457
The company had no tangible fixed assets at 30 June 2023 or 30 June 2022.

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

Group
Company
2023
2022
2023
2022
£
£
£
£
Fixtures, fittings and equipment
16,377
47,306
-
0
-
0
Motor vehicles
341,686
252,860
-
0
-
0
358,063
300,166
-
-

Included within the net book value of land and buildings above is £526,061 (2022 - £369,699) in respect of short leasehold land and buildings.

The remaining value included in land and buildings of £10,288,405 (2022 - £8,300,298) relates to long leasehold land and buildings. The fair values have been reviewed by the directors, these values have been determined by carrying out a review of the property and investment yields in the area.

 

 

This class of assets has a carrying amount at historic cost of £9,171,247 (2022 - £6,872,144). The depreciation charge based on this historical cost would be £196,537 (2022 - £147,188).

TRIGON GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 27 -
14
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
15
-
0
-
0
1,000,001
1,000,841
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 July 2022
1,000,841
Disposals
(840)
At 30 June 2023
1,000,001
Carrying amount
At 30 June 2023
1,000,001
At 30 June 2022
1,000,841
15
Subsidiaries

Details of the company's subsidiaries at 30 June 2023 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Indirect
Trigon Holdings Limited
5 Prospect Place, Millennium Way, Pride Park, Derby, DE24 8HG
Ordinary
97.00
-
Eden Tyre Sales Limited
5 Prospect Place, Millennium Way, Pride Park, Derby, DE24 8HG
Ordinary
0
97.00

The principal activity of Trigon Holdings is a holding company, owning property that is let to subsidiary and connected companies. The company also operates to provide management services to its subsidiary.

 

The principal activity of Eden Tyre Sales Limited is that of Retail Tyre & Servicing centres, which supply vehicle services, brakes, MOT’s, tyres, vehicle repairs and associated products and services; and also tyre wholesale supplying a variety of customers around the Midlands and beyond from a dedicated tyre warehouse.

16
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Finished goods and goods for resale
3,487,417
4,609,400
-
0
-
0

The amount of impairment loss included in profit or loss is £44,483 (2022 - £320,683).

TRIGON GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 28 -
17
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
2,752,475
3,058,175
-
0
-
0
Amounts owed by group undertakings
-
-
325,147
-
Other debtors
156,650
405,222
143,573
-
0
Prepayments and accrued income
521,493
467,838
-
0
-
0
3,430,618
3,931,235
468,720
-
Amounts falling due after more than one year:
Other debtors
665,280
-
0
665,280
-
0
Total debtors
4,095,898
3,931,235
1,134,000
-
18
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans
20
64,581
193,772
-
0
-
0
Obligations under finance leases
21
61,062
65,898
-
0
-
0
Trade creditors
6,503,589
4,519,230
-
0
-
0
Corporation tax payable
528,862
362,305
-
0
-
0
Other taxation and social security
1,194,991
916,136
-
-
Other creditors
297,934
230,811
-
0
-
0
Accruals and deferred income
361,585
257,036
-
0
-
0
9,012,604
6,545,188
-
0
-
0
19
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
20
304,181
919,726
-
0
-
0
Obligations under finance leases
21
196,611
172,159
-
0
-
0
Other creditors
-
0
13,840
-
0
-
0
500,792
1,105,725
-
-
TRIGON GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 29 -
20
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
368,762
1,113,498
-
0
-
0
Payable within one year
64,581
193,772
-
0
-
0
Payable after one year
304,181
919,726
-
0
-
0

All of the group's facilities with its bankers are secured by virtue of a legal charge over all of the groups freehold land and buildings.

 

Included in bank borrowings are amounts due after more than 5 years by instalments of £nil (2022 - £316,810).

 

Interest is payable on the bank loan at base rate plus 5.49% per annum and is repayable over 168 equal instalments. The final instalment is due June 2028.

 

 

21
Finance lease obligations
Group
Company
2023
2022
2023
2022
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
83,977
65,898
-
0
-
0
In two to five years
219,288
172,159
-
0
-
0
303,265
238,057
-
-

All of the obligations under hire purchase and finance leases are secured on the related asset.

22
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
Assets
Assets
2023
2022
2023
2022
Group
£
£
£
£
Accelerated capital allowances
327,024
230,884
-
-
Pension
-
-
42,434
-
Property
181,872
181,872
-
-
508,896
412,756
42,434
-
The company has no deferred tax assets or liabilities.
TRIGON GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
22
Deferred taxation
(Continued)
- 30 -
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 July 2022
412,756
-
Charge to profit or loss
55,915
-
Transfer on disposal
(2,209)
-
Liability at 30 June 2023
466,462
-

The amount of the net reversal of deferred tax assets and liabilities expected to occur during the year beginning after the reporting period is £117,690 (2022 - £84,660).

 

There are unused tax losses of £216,236 (2022 - £216,236) for which no deferred tax asset is recognised in the balance sheet.

23
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
371,981
238,636

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

 

Contributions totalling £199,475 (2022 - £24,153) were payable to the scheme at the end of the year and are included in creditors.

24
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A shares of £1 each
1
1
1
1
Ordinary B shares of £1 each
100
100
100
100
Ordinary C shares of £1 each
100
100
100
100
201
201
201
201

Ordinary A, B and C shares have the following rights, preferences and restrictions:

All shares rank equally, each share entitles each holder to 1 vote, entitles the holder to dividend payments or any due distribution the directors declare, each share entitles the holder pari passu to any return of capital on a pro rata basis, and shares are not to be redeemed or liabile to be redeemed, whether at the option of the company or shareholders.

TRIGON GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 31 -
25
Reserves

Profit and loss account

The profit and loss account represents cumulative profits and losses net of dividends and other adjustments.

 

Revaluation reserve

The revaluation reserve represents the cumulate effect of revaluations and associated deferred tax in respect of tangible fixed assets where a policy of revaluation has been adopted.

26
Disposals

On 8 July 2022 the group disposed of its 76% holding in Parksafe Automotive Limited. Included in these financial statements are profits/losses of £nil arising from the company's interests in Parksafe Automotive Limited up to the date of its disposal.

 

Net assets disposed of
£
Cash and cash equivalents
237,543
Property, plant and equipment
20,037
Trade and other receivables
722,544
Inventories
401,125
Trade and other payables
(357,589)
Tax liabilities
(53,095)
Obligations under finance leases
(9,924)
Deferred tax
(1,679)
958,962
Gain on disposal
175,038
Total consideration
1,134,000
The consideration was satisfied by:
£
Cash and deferred cash
1,134,000

The consideration was settled by £113,400 at completion and £1,020,600 payable in the period to December 2027. The amount included in debtors at the balance sheet date is £808,853.

TRIGON GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 32 -
27
Operating lease commitments
Lessee

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

Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
346,342
366,687
-
-
Between two and five years
801,741
768,650
-
-
In over five years
146,998
-
-
-
1,295,081
1,135,337
-
-

The amount of non-cancellable operating lease payments recognised as an expense during the year was £418,598 (2022 - £344,246).

28
Events after the reporting date

Since the balance sheet date dividends have been voted amounting to £648,000.

29
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2023
2022
£
£
Aggregate compensation
103,129
52,236
Transactions with related parties

A pension scheme in which the directors are members and trustees

During the year the group rented property from this related party. The charge for the period is £257,083 (2022 - £250,000). At the balance sheet date the amount due (to)/from this related party was (£7,070) (2022 - £43,431).

 

Summary of transactions with other related parties

At the balance sheet date the group has an amount receivable of £12,345 (2022 - £7,587) from an other related party.

 

Transactions with directors

During the year dividends of £1,040,000 (2022 - £860,000) were voted and paid to the directors and their spouses. The directors and their spouses have loan accounts running with a subsidiary company within the group which have no interest payable. During the year one of the accounts went overdrawn to a maximum of £214,604, the time from the account going overdrawn initially to returning to credit was 21 days. At the balance sheet date the amount due to the directors and their spouses was £221,039 (2022 - £193,133).

TRIGON GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 33 -
30
Parent and ultimate parent undertaking

The directors do not consider that there is an ultimate controlling party due to the split of shareholdings.

31
Cash generated from group operations
2023
2022
£
£
Profit for the year after tax
3,746,060
2,893,332
Adjustments for:
Taxation charged
861,764
756,846
Finance costs
81,715
66,877
Investment income
(2,692)
(58)
Gain on disposal of tangible fixed assets
(52,901)
(10,250)
Amortisation and impairment of intangible assets
2,137
17,489
Depreciation and impairment of tangible fixed assets
558,149
505,271
Other gains and losses
(175,038)
-
Movements in working capital:
Decrease/(increase) in stocks
594,187
(1,364,073)
Increase in debtors
(306,526)
(347,272)
Increase/(decrease) in creditors
2,891,557
(404,232)
Cash generated from operations
8,198,412
2,113,930
32
Analysis of changes in net funds - group
1 July 2022
Cash flows
Acquisitions and disposals
New hire purchases or finance leases
30 June 2023
£
£
£
£
£
Cash at bank and in hand
3,069,705
2,566,496
(312,556)
-
5,323,645
Borrowings excluding overdrafts
(1,113,498)
744,736
-
-
(368,762)
Obligations under hire purchases or finance leases
(238,057)
156,458
13,058
(189,132)
(257,673)
1,718,150
3,467,690
(299,498)
(189,132)
4,697,210
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