Caseware UK (AP4) 2022.0.179 2022.0.179 2023-07-312023-07-31432022-08-01falsefalsefalseNo description of principal activity52 SC351014 2022-08-01 2023-07-31 SC351014 2021-08-01 2022-07-31 SC351014 2023-07-31 SC351014 2022-07-31 SC351014 2021-08-01 SC351014 1 2022-08-01 2023-07-31 SC351014 1 2021-08-01 2022-07-31 SC351014 5 2022-08-01 2023-07-31 SC351014 5 2021-08-01 2022-07-31 SC351014 6 2022-08-01 2023-07-31 SC351014 6 2021-08-01 2022-07-31 SC351014 d:Director1 2022-08-01 2023-07-31 SC351014 d:Director2 2022-08-01 2023-07-31 SC351014 d:Director3 2022-08-01 2023-07-31 SC351014 d:Director4 2022-08-01 2023-07-31 SC351014 d:Director5 2022-08-01 2023-07-31 SC351014 d:RegisteredOffice 2022-08-01 2023-07-31 SC351014 e:Buildings 2022-08-01 2023-07-31 SC351014 e:Buildings 2023-07-31 SC351014 e:Buildings 2022-07-31 SC351014 e:Buildings e:OwnedOrFreeholdAssets 2022-08-01 2023-07-31 SC351014 e:Buildings e:ShortLeaseholdAssets 2022-08-01 2023-07-31 SC351014 e:Buildings e:ShortLeaseholdAssets 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2023-07-31 SC351014 e:LeasedAssetsHeldAsLessee 2022-07-31 iso4217:GBP xbrli:shares xbrli:pure
Registered number: SC351014










EASITYRE LTD

DIRECTORS' REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023

 
EASITYRE LTD
 

COMPANY INFORMATION


Directors
Mr A Brown 
Mr B T Meechan 
Mr C Meechan 
Mrs E M Meechan 
Mr S Meechan 




Registered number
SC351014



Registered office
2-3 Blackwood Road
Eastfield Industrial Estate

Glenrothes

KY7 4NP




Independent auditors
EQ Audit Services LLP (Statutory auditor)
Chartered Accountants

Pentland House

Saltire Centre

Glenrothes

Fife

KY6 2AH





 
EASITYRE LTD
 

CONTENTS



Page
Strategic report
1
Directors' report
2 - 3
Independent auditors' report
4 - 6
Statement of income and retained earnings
7
Statement of financial position
8
Statement of cash flows
9
Analysis of net debt
10
Notes to the financial statements
11 - 24


 
EASITYRE LTD
 

STRATEGIC REPORT
FOR THE YEAR ENDED 31 JULY 2023

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

Business review
 
The principal activity of the company during the year was the sale and distribution of tyres to the motor trade throughout East and Central Scotland.
 
The directors are pleased to report a successful period of trading, with a pre-tax profit of £0.91m compared to £1.01m for the previous year. The company has faced many challenges during the period under review, most notably relating to the impact upon the UK economy of rising inflation and interest rates, however overall industry demand has remained relatively strong under these circumstances.
Despite the ongoing risk from the impact on the challenges faced by the UK economy the directors remain confident that the company will continue to achieve its future growth and profitability targets.

Principal risks and uncertainties
 
As detailed above, the directors acknowledge the uncertainty that the ongoing inflationary and interest rate pressures within the UK provides. The directors continue to monitor the impact of these issues and look to minimise the uncertainty they provide with strong financial management and procurement policies.
The company uses various financial instruments to maintain sufficient working capital to finance its operations. During the year these consisted of bank loans, hire purchase, cash and various other items including trade debtors and trade creditors that arise from its operations.
The existence of these financial instruments exposes the company to a number of financial risks. The main risks relate to interest rates, foreign currency, and liquidity. The directors review and agree policies for managing each of these risks accordingly, including monitoring interest and foreign exchange rates regularly, and ensuring sufficient liquidity is available to meet both the short and longer term cash flow needs of the company.

Financial key performance indicators
 
Key performance indicators are considered in relation to various aspects of the company’s working capital and operating results and compared against prior periods. The company’s key performance indicators include turnover which increased by 20% from £12.94m to £15.48m, gross margin which decreased from 23% to 22%, and profit before tax which decreased by 9% from £1.01m to £0.91m.


This report was approved by the board on 31 October 2023 and signed on its behalf.



Mr B T Meechan
Director

Page 1

 
EASITYRE LTD
 

 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 JULY 2023

The directors present their report and the financial statements for the year ended 31 July 2023.

Directors' responsibilities statement

The directors are responsible for preparing the Strategic report, the Directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and 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 for the Company's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Results and dividends

The profit for the year, after taxation, amounted to £709,253 (2022 - £790,669).

Dividends of £214,881 have been paid during the year (2022 - £208,431)

Directors

The directors who served during the year were:

Mr A Brown 
Mr B T Meechan 
Mr C Meechan 
Mrs E M Meechan 
Mr S Meechan 

Future developments

In order to secure future sales growth and profitability, the company's strategy is to actively search for new revenue opportunities whilst continuing to develop strong relationships with its existing customers.

Page 2

 
EASITYRE LTD
 

 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023

Disclosure of information to auditors

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

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

Post balance sheet events

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

Auditors

The auditorsEQ Audit Services LLP (Statutory auditor)will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 31 October 2023 and signed on its behalf.
 





Mr B T Meechan
Director

Page 3

 
EASITYRE LTD
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF EASITYRE LTD
 

Opinion


We have audited the financial statements of Easityre Ltd (the 'Company') for the year ended 31 July 2023, which comprise the Statement of income and retained earnings, the Statement of financial position, the Statement of cash flows and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the Company's affairs as at 31 July 2023 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


Conclusions relating to going concern


In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.


Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.


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


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' report thereon. The directors are responsible for the other information contained within the Annual ReportOur opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.


We have nothing to report in this regard.


Page 4

 
EASITYRE LTD
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF EASITYRE LTD (CONTINUED)


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


Matters on which we are required to report by exception
 

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 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:


adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

As explained more fully in the Directors' responsibilities statement set out on page 2, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


In preparing the financial statements, the directors are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.


Page 5

 
EASITYRE LTD
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF EASITYRE LTD (CONTINUED)


Auditors' responsibilities for the audit of the financial statements
 

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these 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 gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates, and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
We focused on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006 and UK tax legislation. Our tests included agreeing the financial statement disclosures to underlying supporting documentation and enquiries with management. There are inherent limitations in the audit procedures described above and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. We did not identify any key audit matters relating to irregularities, including fraud. As in all our audits, we also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.


A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' report.
 
Use of our report
 

This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.





Greg Stapley (Senior statutory auditor)
for and on behalf of
EQ Audit Services LLP (Statutory Auditor)
Chartered Accountants
Pentland House
Saltire Centre
Glenrothes
Fife
KY6 2AH

31 October 2023
Page 6

 
EASITYRE LTD
 

STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 JULY 2023

2023
2022
£
£

  

Turnover
 4 
15,480,868
12,940,960

Cost of sales
  
(12,148,255)
(9,997,239)

Gross profit
  
3,332,613
2,943,721

Administrative expenses
  
(2,430,456)
(1,941,660)

Other operating income
 5 
41,542
31,890

Operating profit
 6 
943,699
1,033,951

Interest receivable and similar income
 10 
12,551
342

Interest payable and similar expenses
 11 
(43,220)
(27,948)

Profit before tax
  
913,030
1,006,345

Tax on profit
 12 
(203,777)
(215,676)

Profit after tax
  
709,253
790,669

  

  

Retained earnings at the beginning of the year
  
2,478,037
1,895,799

Profit for the year
  
709,253
790,669

Dividends declared and paid
  
(214,881)
(208,431)

Retained earnings at the end of the year
  
2,972,409
2,478,037

There were no recognised gains and losses for 2023 or 2022 other than those included in the statement of income and retained earnings.

The notes on pages 11 to 24 form part of these financial statements.

Page 7

 
EASITYRE LTD
REGISTERED NUMBER: SC351014

STATEMENT OF FINANCIAL POSITION
AS AT 31 JULY 2023

2023
2022
£
£

Fixed assets
  

Tangible assets
 14 
1,272,427
1,067,977

  
1,272,427
1,067,977

Current assets
  

Stocks
 15 
3,202,828
3,166,065

Debtors: amounts falling due within one year
 16 
1,890,791
1,595,197

Cash at bank and in hand
 17 
1,514,408
1,013,610

  
6,608,027
5,774,872

Creditors: amounts falling due within one year
 18 
(3,874,112)
(3,364,432)

Net current assets
  
 
 
2,733,915
 
 
2,410,440

Total assets less current liabilities
  
4,006,342
3,478,417

Creditors: amounts falling due after more than one year
 19 
(542,241)
(570,205)

Provisions for liabilities
  

Deferred tax
 23 
(134,371)
(72,854)

  
 
 
(134,371)
 
 
(72,854)

Net assets
  
3,329,730
2,835,358


Capital and reserves
  

Called up share capital 
 24 
9,300
9,300

Share premium account
 25 
348,021
348,021

Profit and loss account
 25 
2,972,409
2,478,037

  
3,329,730
2,835,358


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 31 October 2023.




Mr B T Meechan
Director

The notes on pages 11 to 24 form part of these financial statements.

Page 8

 
EASITYRE LTD
 

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 JULY 2023

2023
2022
£
£

Cash flows from operating activities

Profit for the financial year
709,253
790,669

Adjustments for:

Depreciation of tangible assets
136,510
86,671

Profit on disposal of tangible assets
(13,309)
-

Interest paid
43,220
27,948

Interest received
(12,551)
(342)

Taxation charge
203,777
215,676

(Increase) in stocks
(36,763)
(1,820,963)

(Increase) in debtors
(295,594)
(140,838)

Increase in creditors
491,765
1,126,265

Corporation tax (paid)
(184,879)
(184,879)

Net cash generated from operating activities

1,041,429
100,207


Cash flows from investing activities

Purchase of tangible fixed assets
(354,501)
(139,134)

Sale of tangible fixed assets
26,850
-

Interest received
12,551
342

HP interest paid
(21,254)
(7,156)

Net cash from investing activities

(336,354)
(145,948)

Cash flows from financing activities

Repayment of loans
(125,942)
(111,495)

Repayment of/new finance leases
158,512
61,460

Dividends paid
(214,881)
(208,431)

Interest paid
(21,966)
(20,792)

Net cash used in financing activities
(204,277)
(279,258)

Net increase/(decrease) in cash and cash equivalents
500,798
(324,999)

Cash and cash equivalents at beginning of year
1,013,610
1,338,609

Cash and cash equivalents at the end of year
1,514,408
1,013,610


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
1,514,408
1,013,610

1,514,408
1,013,610


The notes on pages 11 to 24 form part of these financial statements.

Page 9

 
EASITYRE LTD
 

ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 JULY 2023





At 1 August 2022
Cash flows
New finance leases
At 31 July 2023
£

£

£

£

Cash at bank and in hand

1,013,610

500,798

-

1,514,408

Debt due after 1 year

(433,104)

131,531

-

(301,573)

Debt due within 1 year

(126,411)

(5,589)

-

(132,000)

Finance leases

(212,540)

112,655

(271,167)

(371,052)


241,555
739,395
(271,167)
709,783

The notes on pages 11 to 24 form part of these financial statements.

Page 10

 
EASITYRE LTD
 

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

1.


General information

Easityre Ltd is a private company, limited by shares, incorporated in Scotland with registration number SC351014. The registered office is 2-3 Blackwood Road, Eastfield Industrial Estate, Glenrothes, KY7 4NP. 
The financial statements are presented in Sterling, which is the functional currency of the Company, and rounded to the nearest £.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Turnover

Turnover is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Turnover from the sale of goods is recognised when all of the following conditions are satisfied:
the Company has transferred the significant risks and rewards of ownership to the buyer;
the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Rendering of services

Turnover from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

Page 11

 
EASITYRE LTD
 

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

2.Accounting policies (continued)

 
2.3

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

  
2.4

Finance Leases and hire purchase contracts

Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives. Assets acquired by hire purchase are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to profit or loss so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

 
2.5

Interest income

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

 
2.6

Finance costs

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

 
2.7

Borrowing costs

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

 
2.8

Pensions

Defined contribution pension plan

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

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

Page 12

 
EASITYRE LTD
 

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

2.Accounting policies (continued)

 
2.9

Current and deferred taxation

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

The current tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

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

 
2.10

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on a reducing balance basis.

Depreciation is provided on the following basis:

Freehold property
-
1%
Property improvements
-
15%
Plant and machinery
-
25%
Motor vehicles
-
25%

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

Page 13

 
EASITYRE LTD
 

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

2.Accounting policies (continued)

 
2.11

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each reporting date, stocks are assessed for impairment. If stock is 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.

 
2.12

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.13

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Company's cash management.

 
2.14

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.15

Provisions for liabilities

Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the reporting date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Statement of financial position.

Page 14

 
EASITYRE LTD
 

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

2.Accounting policies (continued)

 
2.16

Financial instruments

The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the Company's Statement of financial position when the Company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

 
2.17

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.


3.


Judgments in applying accounting policies and key sources of estimation uncertainty

The most significant estimation within the company’s financial statements relates to depreciation. The directors review depreciation rates on a regular basis to ensure that the policy rates remain appropriate and fairly charge the cost of fixed assets over their predicted useful lives for each specific category of fixed asset.
Other areas of significant estimation within the company's financial statements relate to the valuation of stock. The directors review the valuation methodology on a regular basis to ensure the carrying value of stock remains appropriate. Due consideration is given to amounts realised following the year end in relation to stock included in the financial statements at the year end.


4.


Turnover

The whole of the turnover is attributable to the principal activity of the company wholly undertaken in the United Kingdom.


5.


Other operating income

2023
2022
£
£

Rental income received
41,542
31,890


Page 15

 
EASITYRE LTD
 

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

6.


Operating profit

The operating profit is stated after charging:

2023
2022
£
£

Depreciation of tangible assets
136,510
86,671

Operating lease rentals
197,389
149,601


7.


Auditors' remuneration

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


2023
2022
£
£

Fees payable to the Company's auditors for the audit of the Company's financial statements
12,600
12,000

8.


Employees

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


2023
2022
£
£

Wages and salaries
1,198,563
982,064

Social security costs
107,288
84,674

Cost of defined contribution scheme
80,515
105,195

1,386,366
1,171,933


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


        2023
        2022
            No.
            No.







Directors
5
5



Employees
47
38

52
43

Page 16

 
EASITYRE LTD
 

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

9.


Directors' remuneration

2023
2022
£
£

Directors' emoluments
18,251
17,861

Company contributions to defined contribution pension schemes
50,273
80,536

68,524
98,397


During the year retirement benefits were accruing to 2 directors (2022 - NIL) in respect of defined contribution pension schemes.


10.


Interest receivable

2023
2022
£
£


Other interest receivable
12,551
342


11.


Interest payable and similar expenses

2023
2022
£
£


Bank interest payable
21,966
20,792

Finance leases and hire purchase contracts
21,254
7,156

43,220
27,948


12.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
142,260
184,879


142,260
184,879


Total current tax
142,260
184,879

Deferred tax


Origination and reversal of timing differences
61,517
17,517

Changes to tax rates
-
13,280

Total deferred tax
61,517
30,797


Taxation on profit on ordinary activities
203,777
215,676
Page 17

 
EASITYRE LTD
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023
 
12.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is higher than (2022 - higher than) the standard rate of corporation tax in the UK of 19% (2022 - 19%). The differences are explained below:

2023
2022
£
£


Profit on ordinary activities before tax
913,030
1,006,345


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2022 - 19%)
173,476
191,206


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
3,573
7,357

Other timing differences leading to an increase (decrease) in taxation
-
(130)

Additional super-deduction capital allowances
(3,034)
(1,810)

Effects of changes in tax rates
28,346
17,614

Depreciation on non qualifying assets
1,416
1,439

Total tax charge for the year
203,777
215,676


Factors that may affect future tax charges

An increase in the UK corporation tax rate from 19% to 25% (effective from 1 April 2023) was enacted on 11 March 2021. The 19% rate will continue to apply to companies with profits not more than £50,000. The deferred tax liability at 31 July 2023 has been calculated at 25%.


13.


Dividends

2023
2022
£
£


Equity dividends on ordinary shares
214,881
208,431
Page 18

 
EASITYRE LTD
 

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

14.


Tangible fixed assets





Freehold property
Property improvem-ents
Plant and machinery
Motor vehicles
Total

£
£
£
£
£



Cost or valuation


At 1 August 2022
761,393
8,215
249,384
597,558
1,616,550


Additions
-
8,837
44,312
301,352
354,501


Disposals
-
-
-
(29,460)
(29,460)



At 31 July 2023

761,393
17,052
293,696
869,450
1,941,591



Depreciation


At 1 August 2022
44,391
4,406
199,430
300,346
548,573


Charge for the year on owned assets
7,170
685
18,108
110,547
136,510


Disposals
-
-
-
(15,919)
(15,919)



At 31 July 2023

51,561
5,091
217,538
394,974
669,164



Net book value



At 31 July 2023
709,832
11,961
76,158
474,476
1,272,427



At 31 July 2022
717,002
3,809
49,954
297,212
1,067,977

The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:


2023
2022
£
£



Motor vehicles
432,157
235,738

432,157
235,738

Page 19

 
EASITYRE LTD
 

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

15.


Stocks

2023
2022
£
£

Finished goods and goods for resale
3,202,828
3,166,065



16.


Debtors

2023
2022
£
£


Trade debtors
1,835,553
1,557,682

Other debtors
20,508
-

Prepayments and accrued income
34,730
37,515

1,890,791
1,595,197



17.


Cash and cash equivalents

2023
2022
£
£

Cash at bank and in hand
1,514,408
1,013,610



18.


Creditors: Amounts falling due within one year

2023
2022
£
£

Bank loans
132,000
126,411

Trade creditors
2,709,124
2,119,353

Other taxation and social security
441,655
440,745

Obligations under finance lease and hire purchase contracts
130,384
75,439

Other creditors
1,254
6,304

Accruals and deferred income
459,695
596,180

3,874,112
3,364,432


Obligations under finance lease and hire purchase contracts of £130,384 (2022 - £75,439) are secured over the assets to which they relate.
Bank loans in the amount of £132,000 (2022 - £126,411) are secured by a bond and floating charge over the whole of the property, assets and rights of the company.

Page 20

 
EASITYRE LTD
 

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

19.


Creditors: Amounts falling due after more than one year

2023
2022
£
£

Bank loans
301,573
433,104

Net obligations under finance leases and hire purchase contracts
240,668
137,101

542,241
570,205


Obligations under finance lease and hire purchase contracts of £240,668 (2022 - £137,101) are secured over the assets to which they relate.
Bank loans in the amount of £301,573 (2022 - £433,104) are secured by a bond and floating charge over the whole of the property, assets and rights of the company.


20.


Loans


Analysis of the maturity of loans is given below:


2023
2022
£
£

Amounts falling due within one year

Bank loans
132,000
126,411


132,000
126,411

Amounts falling due 1-2 years

Bank loans
132,000
126,410


132,000
126,410

Amounts falling due 2-5 years

Bank loans
169,573
306,694


169,573
306,694


433,573
559,515


Page 21

 
EASITYRE LTD
 

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

21.


Hire purchase and finance leases


Minimum lease payments under hire purchase fall due as follows:

2023
2022
£
£


Within one year
130,384
75,439

Between 1-5 years
240,668
137,101

371,052
212,540


22.


Financial instruments

2023
2022
£
£

Financial assets


Financial assets measured at fair value through profit or loss
1,514,408
1,013,610

Financial assets that are debt instruments measured at amortised cost
1,856,061
1,557,682

3,370,469
2,571,292


Financial liabilities


Financial instruments measured at amortised cost
(3,143,951)
(2,685,172)


Financial assets measured at fair value through profit or loss comprise of cash at bank and in hand.
Financial assets that are debt instruments measured at amortised cost comprise trade and other debtors.
Financial liabilities measured at amortised cost comprise trade creditors, other creditors and bank loans.


23.


Deferred taxation




2023


£






At beginning of year
(72,854)


Charged to profit or loss
(61,517)



At end of year
(134,371)

Page 22

 
EASITYRE LTD
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023
 
23.Deferred taxation (continued)

The provision for deferred taxation is made up as follows:

2023
2022
£
£


Accelerated capital allowances
(134,371)
(73,393)

Other timing differences
-
539

(134,371)
(72,854)


24.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



8,800 (2022 - 8,800) Ordinary shares of £1.00 each
8,800
8,800
100 (2022 - 100) B shares of £1.00 each
100
100
100 (2022 - 100) C shares of £1.00 each
100
100
100 (2022 - 100) D shares of £1.00 each
100
100
100 (2022 - 100) E shares of £1.00 each
100
100
100 (2022 - 100) F shares of £1.00 each
100
100

9,300

9,300



25.


Reserves

Share premium account

This reserve records the amount above the nominal value received for shares issued, less transaction costs.

Profit and loss account

The profit and loss account includes all current and prior year retained profit and losses. 


26.


Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £80,515 (2022 - £105,195). Contributions totalling £nil (2022 - £5,944) were payable to the fund at the balance sheet date.

Page 23

 
EASITYRE LTD
 

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

27.


Commitments under operating leases

At 31 July 2023 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2023
2022
£
£


Not later than 1 year
165,116
118,649

Later than 1 year and not later than 5 years
757,169
405,230

Later than 5 years
718,021
137,500

1,640,306
661,379


28.


Related party transactions

During the year the Company entered into the following transactions with other related parties:


2023
2022
£
£

Sales to other related companies
1,018,414
958,209
Purchases from other related companies
93,339
51,974
Net trading balances due from/(to) other related companies
270,296
285,212
Loan balances due from/(to) other related companies
20,508
-

The companies are related by virtue of shared directors and shareholders.


29.


Controlling party

The company was under the control of Mr B T Meechan throughout the current and previous year.


Page 24