REGISTERED NUMBER: |
OAK TREE MOTOR HOMES LTD |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MARCH 2023 |
REGISTERED NUMBER: |
OAK TREE MOTOR HOMES LTD |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MARCH 2023 |
OAK TREE MOTOR HOMES LTD (REGISTERED NUMBER: 05261680) |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MARCH 2023 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 6 |
Income Statement | 12 |
Other Comprehensive Income | 13 |
Balance Sheet | 14 |
Statement of Changes in Equity | 16 |
Cash Flow Statement | 17 |
Notes to the Cash Flow Statement | 19 |
Notes to the Financial Statements | 21 |
OAK TREE MOTOR HOMES LTD |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31 MARCH 2023 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants |
and Statutory Auditors |
7 St John Street |
Mansfield |
Nottinghamshire |
NG18 1QH |
BANKERS: |
Santander Corporate & Commercial |
Nottingham Business Centre |
2nd Floor, 2 Clumber Street |
Nottingham |
NG1 3GA |
OAK TREE MOTOR HOMES LTD (REGISTERED NUMBER: 05261680) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31 MARCH 2023 |
The directors present their strategic report for the year ended 31 March 2023. |
PRINCIPAL ACTIVITY, BUSINESS MODEL & STRATEGY |
The Company (Oak Tree) is a retailer of motorhomes and associated products and accessories. It retails primarily used motorhomes, which it sources from a wide variety of suppliers in the trade and privately; and prepares these vehicles to a high standard before sale. Oak Tree also sells motorhomes and other vehicles, which are principally unwanted part-exchanges, to trade customers. |
The Company's strategy is to provide choice, value and a great service to its customers, and values their positive feedback which helps to encourage repeat business and customer referrals. |
Oak Tree intends not to be the biggest, but the best. |
REVIEW OF BUSINESS & KPIS |
The year to March 2023 was very much of two halves. The year started strongly, continuing the previous year's performance following re-opening following the Covid restrictions. Business though got very tight in September 2022 following the installation of the Truss government and the disastrous mini-budget; and continued in that vein until January 2023. A pick up in activity from that point has thankfully continued into the early months of the current year. |
Turnover increased marginally from £21.5 million to £21.7 million. Gross margin fell from 14.4% to 12.7% (FY21: 14.8%). Operating profit was £0.64 million (FY22: £1.53 million). The profit after tax was £0.54 million, down from £1.21 million. |
There was only a small cash generation from operations during the year as a result of building back stock. Because of loans to related parties year-end cash balances were reduced to £1.18m plus investments of £nil (FY22: cash balances and investments of £3.74m and £1.03m respectively). |
KPI's which management use to determine progress of the business include revenue, gross margin and operating profit; together with the Company's Trustpilot score which remains at a maximum 5 stars. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The business is exposed to a number of risks the most significant of which are: |
- Reliance on a small senior management team |
- The potential for depreciation of stock as market prices change |
- The continued availability of suitably priced stock to purchase, due to changes in demand patterns, or in supply |
- The financial viability of related parties |
The company has appropriate risk management policies in place to minimise the impact of these risks. |
OAK TREE MOTOR HOMES LTD (REGISTERED NUMBER: 05261680) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31 MARCH 2023 |
DIVERSITY |
At the year end the directors were male and the company secretary was female. One of four other senior managers was female. Five of 38 employees overall were female. |
THE POSITION OF THE COMPANY AT THE YEAR END |
The Company has a robust and liquid balance sheet and sufficient financing facilities to take advantage of market opportunities. Net assets at 31 March 2023 were £7.44 million including net cash balances and deposits of £1.18 million (FY22: £7.11 million and net cash balances and deposits of £3.74 million). |
The business started the new financial year with good market conditions, however these feel quite fragile with wider economic conditions in the UK under stress. The company and directors are used to coping with market downturns and have put a number of measures in place to reduce the risk of wider economic conditions having a fundamental negative impact on the business; and the company remains profitable. |
ON BEHALF OF THE BOARD: |
OAK TREE MOTOR HOMES LTD (REGISTERED NUMBER: 05261680) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 MARCH 2023 |
The directors present their report with the financial statements of the company for the year ended 31 March 2023. |
PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of sales of motor homes. |
DIVIDENDS |
The directors paid interim dividends per share as follows: |
Share type | Share value | Dividend per share |
Ordinary A1 | £0.01 | £5.67 |
Ordinary A2 | £0.01 | £4.00 |
Ordinary A3 | £0.01 | £90.50 |
Ordinary A4 | £0.01 | £76.50 |
The total distribution of dividends for the year ended 31 March 2023 will be £205,000. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 April 2022 to the date of this report. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
OAK TREE MOTOR HOMES LTD (REGISTERED NUMBER: 05261680) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 MARCH 2023 |
STATEMENT OF DIRECTORS' RESPONSIBILITIES - continued |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
AUDITORS |
The auditors, APC Accountants Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
OAK TREE MOTOR HOMES LTD |
Opinion |
We have audited the financial statements of Oak Tree Motor Homes Ltd (the 'company') for the year ended 31 March 2023 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the company's affairs as at 31 March 2023 and of its profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
OAK TREE MOTOR HOMES LTD |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
OAK TREE MOTOR HOMES LTD |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on pages four and five, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
OAK TREE MOTOR HOMES LTD |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
Extent to which the audit was considered capable of detecting irregularities, including fraud |
We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis of our opinion. |
Identifying and assessing potential risks related to irregularities |
As detailed above we carried out our audit in line with the appropriate guidance. In regards to our procedures during the initial planning, onsite work and final review stages we assessed our audit plan against the changing environments and updated wherever appropriate. |
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we have considered and carried out a background information assessment on the company and looked at all of the appropriate laws and regulations that the company must abide with. These included GDPR, health and safety, and employment laws. |
The company monitors all of its internal policies and procedures and carries out annual updates for those policies, or regular reviews when Government guidance has changed. This is then communicated to staff on all levels to ensure updates in policies and procedures are known throughout the workforce. |
The significant laws and regulations in regards to the business are Companies Act, Employment Law, Pensions legislation, Tax legislation, Health & Safety, and GDPR. |
We reviewed the company's risk assessments for its business in the significant laws and regulations, carried out reviews on board minutes including discussions with company officials and review of any legal cases and costs. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
OAK TREE MOTOR HOMES LTD |
Audit response to risks identified |
As a result of performing the above, we identified presentation of the company's stock as a key audit matter related to the potential risk of fraud. Our specific procedures in this regard are as follows:- |
- obtaining an understanding of the relevant controls relating to the purchase of vehicles for resale; |
- Undertaking a stock take at the year end then performing further testing on this sample at the time of the audit, to ensure stock valuations were in line with post year end sales; |
- assessing that the accounting entries have been recorded in accordance with income recognition policies within FRS102; |
In addition to the above, our procedures to respond to risks identified included the following: |
- reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations, which have a direct effect on the financial statements; |
- making enquiries of management, including legal experts concerning actual or potential litigation and claims; |
- On our review of journal entries nothing unusual or unexpected had been identified from our sample testing of journal adjustments carried out by the company to its accounting system. |
- We used limited analytical review procedures during our audit work and placed more reliance up on our transactional and detailed audit testing. Our analytical review for highlighting trends were then reviewed and assessed against our detailed testing work. |
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those 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. |
Our audit team had regular updates and meetings within the team including all members of the team, including the RI to ensure that our audit work was being carried out appropriately and to ensure that our assessments have constantly been updated during our audit, as part of these meetings all team members remaining alert to any indications of fraud or non-compliance with laws and regulations throughout the audit. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
OAK TREE MOTOR HOMES LTD |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Chartered Accountants |
and Statutory Auditors |
7 St John Street |
Mansfield |
Nottinghamshire |
NG18 1QH |
OAK TREE MOTOR HOMES LTD (REGISTERED NUMBER: 05261680) |
INCOME STATEMENT |
FOR THE YEAR ENDED 31 MARCH 2023 |
2023 | 2022 |
Notes | £ | £ |
TURNOVER |
Cost of sales | ( |
) | ( |
) |
GROSS PROFIT |
Administrative expenses | ( |
) | ( |
) |
633,537 | 1,155,591 |
Other operating income |
OPERATING PROFIT | 5 |
Income from fixed asset investments |
Interest receivable and similar income |
Interest payable and similar expenses | 6 | ( |
) | ( |
) |
PROFIT BEFORE TAXATION |
Tax on profit | 7 | ( |
) | ( |
) |
PROFIT FOR THE FINANCIAL YEAR |
OAK TREE MOTOR HOMES LTD (REGISTERED NUMBER: 05261680) |
OTHER COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 31 MARCH 2023 |
2023 | 2022 |
Notes | £ | £ |
PROFIT FOR THE YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
OAK TREE MOTOR HOMES LTD (REGISTERED NUMBER: 05261680) |
BALANCE SHEET |
31 MARCH 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 9 |
Tangible assets | 10 |
Investments | 11 |
CURRENT ASSETS |
Stocks | 12 |
Debtors | 13 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 14 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
15 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 18 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 19 |
Share premium | 20 |
Capital redemption reserve | 20 |
Retained earnings | 20 |
SHAREHOLDERS' FUNDS |
OAK TREE MOTOR HOMES LTD (REGISTERED NUMBER: 05261680) |
BALANCE SHEET - continued |
31 MARCH 2023 |
The financial statements were approved by the Board of Directors and authorised for issue on |
OAK TREE MOTOR HOMES LTD (REGISTERED NUMBER: 05261680) |
STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 MARCH 2023 |
Called up | Capital |
share | Retained | Share | redemption | Total |
capital | earnings | premium | reserve | equity |
£ | £ | £ | £ | £ |
Balance at 1 April 2021 |
Changes in equity |
Dividends | - | ( |
) | - | - | ( |
) |
Total comprehensive income | - | - |
Balance at 31 March 2022 | 10,100 | 6,104,232 | 980,000 | 7,104,332 |
Changes in equity |
Dividends | - | ( |
) | - | - | ( |
) |
Total comprehensive income | - | - |
Balance at 31 March 2023 |
OAK TREE MOTOR HOMES LTD (REGISTERED NUMBER: 05261680) |
CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 MARCH 2023 |
2023 | 2022 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 |
Interest paid | ( |
) |
Interest element of hire purchase payments paid |
( |
) |
( |
) |
Finance costs paid | (137 | ) | - |
Tax paid | ( |
) | ( |
) |
Net cash from operating activities |
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Purchase of fixed asset investments | - | (4,263,092 | ) |
Sale of fixed asset investments |
Interest received |
Dividends received |
Net cash from investing activities | ( |
) |
Cash flows from financing activities |
Loan repayments in year | ( |
) |
Capital repayments in year | ( |
) | ( |
) |
Amount introduced by directors | - | 1,215,269 |
Amount withdrawn by directors | (3,389,519 | ) | - |
Movement on related party loans |
Equity dividends paid | ( |
) | ( |
) |
Net cash from financing activities | ( |
) |
(Decrease)/increase in cash and cash equivalents | ( |
) |
Cash and cash equivalents at beginning of year |
2 |
590,390 |
OAK TREE MOTOR HOMES LTD (REGISTERED NUMBER: 05261680) |
CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 MARCH 2023 |
2023 | 2022 |
Notes | £ | £ |
Cash and cash equivalents at end of year |
2 |
1,180,324 |
3,738,420 |
OAK TREE MOTOR HOMES LTD (REGISTERED NUMBER: 05261680) |
NOTES TO THE CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 MARCH 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2023 | 2022 |
£ | £ |
Profit before taxation |
Depreciation charges |
Loss on disposal of fixed assets |
Loss on revaluation of fixed assets | 280,352 | - |
Finance costs | 864 | 915 |
Finance income | (7,175 | ) | (371,379 | ) |
1,066,490 | 1,376,331 |
(Increase)/decrease in stocks | ( |
) |
Decrease in trade and other debtors |
(Decrease)/increase in trade and other creditors | ( |
) |
Cash generated from operations |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31 March 2023 |
31/3/23 | 1/4/22 |
£ | £ |
Cash and cash equivalents | 1,180,324 | 3,738,420 |
Year ended 31 March 2022 |
31/3/22 | 1/4/21 |
£ | £ |
Cash and cash equivalents | 3,738,420 | 590,390 |
OAK TREE MOTOR HOMES LTD (REGISTERED NUMBER: 05261680) |
NOTES TO THE CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 MARCH 2023 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1/4/22 | Cash flow | At 31/3/23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 3,738,420 | (2,558,096 | ) | 1,180,324 |
3,738,420 | ( |
) | 1,180,324 |
Debt |
Finance leases | (4,554 | ) | 4,554 | - |
(4,554 | ) | 4,554 | - |
Total | 3,733,866 | (2,553,542 | ) | 1,180,324 |
OAK TREE MOTOR HOMES LTD (REGISTERED NUMBER: 05261680) |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MARCH 2023 |
1. | STATUTORY INFORMATION |
Oak Tree Motor Homes Ltd is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
The functional currency of the financial statements is the Pound Sterling (£). |
2. | STATEMENT OF COMPLIANCE |
3. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The financial statements have been prepared under the historical cost convention, adjusted for fair value on investments |
OAK TREE MOTOR HOMES LTD (REGISTERED NUMBER: 05261680) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
3. | ACCOUNTING POLICIES - continued |
Significant judgements and estimates |
The significant judgements and estimates are as follows: |
The fixed asset depreciation rates are detailed in the accounting policy. The rates are reviewed annually in line to what the directors believe the assets are worth. |
The amortisation of goodwill has been reviewed upon the transition to FRS102 and due to the income streams still generated, it was deemed appropriate for goodwill to be amortised over 10 years. |
The company lent money in the previous year to a related party some of which is still outstanding at the year end. The recoverability of this debt has been assessed by the directors based upon four year projections, and they believe that the loan is fully recoverable within the projections time period. The ongoing position will be assessed by the directors on a regular basis. As such, no provision has been made in the financial statements. |
The company holds cryptocurrencies, at the year end in US$ denominated deposits. These deposits are valued at market value according to the platform through which they are held, and which the directors believe is their fair value. However these are unregulated products which can be subject to volatile market swings, currency risks and a potential lack of liquidity. |
The company has no other significant judgements and estimates other than those detailed in the accounting policies. |
Turnover |
Turnover represents the value, excluding Value Added Tax, of used motor homes, warranties associated with those sales, and parts sales provided to customers during the year. All income is taken to the income statement at the same point as the right to receive consideration has been achieved. In respect of the sales of motor homes, the right to receive consideration is the point where a contract for sale is signed by a customer on delivery of the vehicle. |
Goodwill |
Goodwill, being the amount paid in connection with the acquisition of a business in 2008, is being amortised evenly over 10 years, its estimated useful life from the date of transition of 1 April 2014 to FRS102. Prior to transition, goodwill was being amortised over the estimated useful life of 20 years. |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
OAK TREE MOTOR HOMES LTD (REGISTERED NUMBER: 05261680) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
3. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
Long leasehold | - |
Fixtures and fittings | - |
Motor vehicles | - |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Financial instruments |
Financial instruments 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 entity after deducting all its financial liabilities. |
Where the contractual obligations of financial instruments (including share capital) are equivalent to a similar debt instrument, those financial instruments are classed as financial liabilities. Financial liabilities are presented as such in the balance sheet. Finance costs and gains or losses relating to financial liabilities are included in the income statement. Finance costs are calculated so as to produce a constant rate of return on the outstanding liability. |
Where the contractual terms of share capital do not have any terms meeting the definition of a financial liability then this is classed as an equity instrument. Dividends and distributions relating to equity instruments are debited direct to equity. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
OAK TREE MOTOR HOMES LTD (REGISTERED NUMBER: 05261680) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
3. | ACCOUNTING POLICIES - continued |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet.Those held under hire purchase contracts are depreciated under their estimated useful lives.Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
The interest element of these obligations is charged to the income statement over the relevant period. The capital element of the future payments is treated as a liability. |
Rentals paid under operating leases are charged to the income statement on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to the income statement in the period to which they relate. |
OAK TREE MOTOR HOMES LTD (REGISTERED NUMBER: 05261680) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
3. | ACCOUNTING POLICIES - continued |
Financial instruments |
Financial instruments 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 entity after deducting all of its financial liabilities. |
Where the contractual obligations of financial instruments (including share capital) are equivalent to a similar debt instrument, those financial instruments are classed as financial liabilities. Financial liabilities are presented as such in the balance sheet. Finance costs and gains or losses relating to financial liabilities are included in the profit and loss account. Finance costs are calculated so as to produce a constant rate of return on the outstanding liability. |
Where the contractual terms of share capital do not have any terms meeting the definition of a financial liability then this is classed as an equity instrument. Dividends and distributions relating to equity instruments are debited direct to equity. |
4. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
2023 | 2022 |
Management | 3 | 2 |
Administration | 10 | 10 |
Sales | 6 | 6 |
Valeting | 8 | 8 |
Workshop | 11 | 10 |
OAK TREE MOTOR HOMES LTD (REGISTERED NUMBER: 05261680) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
4. | EMPLOYEES AND DIRECTORS - continued |
2023 | 2022 |
£ | £ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
5. | OPERATING PROFIT |
The operating profit is stated after charging: |
2023 | 2022 |
£ | £ |
Hire of equipment |
Vehicle hire |
Depreciation - owned assets |
Loss on disposal of fixed assets |
Goodwill amortisation |
Auditors' remuneration |
Foreign exchange differences |
Related party loan write off | 113,588 | - |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
£ | £ |
Stock funding interest |
Hire purchase interest |
Corporation tax interest paid |
OAK TREE MOTOR HOMES LTD (REGISTERED NUMBER: 05261680) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
7. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2023 | 2022 |
£ | £ |
Current tax: |
UK corporation tax |
Over / under provision in prior year | (70,835 | ) | (13,381 | ) |
Total current tax |
Deferred tax | ( |
) |
Tax on profit |
UK corporation tax was charged at 19%) in 2022. |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
2023 | 2022 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of |
Effects of: |
Depreciation in excess of capital allowances |
Adjustments to tax charge in respect of previous periods | ( |
) | ( |
) |
Other | 408 | (2,499 | ) |
Related party loan written off | 21,582 | - |
Total tax charge | 100,231 | 323,526 |
OAK TREE MOTOR HOMES LTD (REGISTERED NUMBER: 05261680) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
8. | DIVIDENDS |
2022 | 2021 |
£ | £ |
Ordinary A1 shares of £0.01 | 51,000 | 65,000 |
Ordinary A2 shares of £0.01 | 30,500 | 48,000 |
Ordinary A3 shares of £0.01 | 90,500 | 90,500 |
Ordinary A4 shares of £0.01 | 75,500 | 77,000 |
Ordinary B shares of £0.01 | - | - |
247,500 | 280,500 |
9. | INTANGIBLE FIXED ASSETS |
Goodwill |
£ |
COST |
At 1 April 2022 |
and 31 March 2023 |
AMORTISATION |
At 1 April 2022 |
Amortisation for year |
At 31 March 2023 |
NET BOOK VALUE |
At 31 March 2023 |
At 31 March 2022 |
OAK TREE MOTOR HOMES LTD (REGISTERED NUMBER: 05261680) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
10. | TANGIBLE FIXED ASSETS |
Fixtures |
Long | and | Motor |
leasehold | fittings | vehicles | Totals |
£ | £ | £ | £ |
COST |
At 1 April 2022 |
Additions |
Disposals | ( |
) | ( |
) |
Reclassification/transfer |
At 31 March 2023 |
DEPRECIATION |
At 1 April 2022 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
Reclassification/transfer |
At 31 March 2023 |
NET BOOK VALUE |
At 31 March 2023 |
At 31 March 2022 |
Included in the total net book value of tangible fixed assets held at 31 March 2022 was £NIL (2022: £6,674) in respect of assets held under hire purchase and finance lease contracts. |
OAK TREE MOTOR HOMES LTD (REGISTERED NUMBER: 05261680) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
11. | FIXED ASSET INVESTMENTS |
Unlisted |
investments |
£ |
COST |
At 1 April 2022 |
Disposals | ( |
) |
Impairments | ( |
) |
At 31 March 2023 |
NET BOOK VALUE |
At 31 March 2023 |
At 31 March 2022 |
12. | STOCKS |
2023 | 2022 |
£ | £ |
Stocks |
13. | DEBTORS |
2023 | 2022 |
£ | £ |
Amounts falling due within one year: |
Trade debtors |
Other debtors |
Directors' current accounts | 3,265,346 | - |
Prepayments and accrued income |
Amounts falling due after more than one year: |
Amounts owed by related parties | 102,056 | 381,379 |
Aggregate amounts |
OAK TREE MOTOR HOMES LTD (REGISTERED NUMBER: 05261680) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Hire purchase contracts (see note 16) |
Trade creditors |
Corporation tax |
Social security and other taxes |
VAT | 153,327 | 210,616 |
Other creditors |
Directors' current accounts | - | 124,173 |
Accruals and deferred income |
15. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2023 | 2022 |
£ | £ |
Amounts owed to related parties | 900 | 1,035 |
16. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Hire purchase | contracts |
2023 | 2022 |
£ | £ |
Net obligations repayable: |
Within one year |
Non-cancellable | operating leases |
2023 | 2022 |
£ | £ |
In more than five years |
OAK TREE MOTOR HOMES LTD (REGISTERED NUMBER: 05261680) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
17. | SECURED DEBTS |
The following secured debts are included within creditors: |
2023 | 2022 |
£ | £ |
Hire purchase contracts | - | 4,554 |
The bank overdraft is secured on fixed and floating charges. |
The stocking facility is secured on the stock book. |
18. | PROVISIONS FOR LIABILITIES |
2023 | 2022 |
£ | £ |
Deferred tax |
Accelerated capital allowances |
Deferred |
tax |
£ |
Balance at 1 April 2022 |
Provided during year |
Balance at 31 March 2023 |
OAK TREE MOTOR HOMES LTD (REGISTERED NUMBER: 05261680) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
19. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2022 | 2021 |
value: | £ | £ |
10,000 | Ordinary | £1 | 10,000 | 10,000 |
6,000 | Ordinary A1 | £0.01 | 60 | 60 |
1,000 | Ordinary A2 | £0.01 | 10 | 10 |
1,000 | Ordinary A3 | £0.01 | 10 | 10 |
1,000 | Ordinary A4 | £0.01 | 10 | 10 |
500 | Ordinary B | £0.01 | 5 | 5 |
500 | Ordinary C | £0.01 | 5 | 5 |
10,100 | 10,100 |
20. | RESERVES |
Capital |
Retained | Share | redemption |
earnings | premium | reserve | Totals |
£ | £ | £ | £ |
At 1 April 2022 | 7,094,232 |
Profit for the year |
Dividends | ( |
) | ( |
) |
At 31 March 2023 | 7,428,849 |
21. | CAPITAL COMMITMENTS |
The company had no capital commitments or contingent liabilities at the balance sheet date. |
OAK TREE MOTOR HOMES LTD (REGISTERED NUMBER: 05261680) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
22. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
The following advances and credits to a director subsisted during the years ended 31 March 2023 and 31 March 2022: |
2023 | 2022 |
£ | £ |
Balance outstanding at start of year | ( |
) |
Amounts advanced |
Amounts repaid | ( |
) |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year | ( |
) |
Interest charged on the above amount was £Nil. |
OAK TREE MOTOR HOMES LTD (REGISTERED NUMBER: 05261680) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
23. | RELATED PARTY DISCLOSURES |
During the year the company paid consultancy fees to a related party, a company owned and controlled by a director, to the value of £9,450 (2022: £71,212). |
At the balance sheet date, £NIL (2022: £1,035) was outstanding in respect of these transactions. |
During the year the company provided financial assistance to a related parties to the value of £NIL (2022: £4,582). |
During the year the company has written off £113,558 in respect of related party loans. |
The company also purchased goods and service on ordinary commercial terms with an amount outstanding at the year end of £11,708 (2022: £9,933) |
At the balance sheet date, the company was owed £102,056 (2022: £381,379) from related party companies and owed £900 (2022 - £1,035) from related party companies.. |
During the year the company paid dividends to the shareholders to the value of £205,000 (2022: £247,500). |
Key management personnel remuneration during the year totalled £143,952 (2022: £193,592). |
Directors' remuneration during the year totalled £35,150 (2022: £116,084). |
Interest paid on the directors loan account during the year amounted to £Nil (2022: £Nil). |