REGISTERED NUMBER: |
Strategic Report, Report of the Directors and |
Financial Statements for the Year Ended 31 December 2023 |
for |
Henrys (Glasgow) Limited |
REGISTERED NUMBER: |
Strategic Report, Report of the Directors and |
Financial Statements for the Year Ended 31 December 2023 |
for |
Henrys (Glasgow) Limited |
Henrys (Glasgow) Limited (Registered number: SC105261) |
Contents of the Financial Statements |
for the Year Ended 31 December 2023 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 5 |
Report of the Independent Auditors | 6 |
Statement of Comprehensive Income | 9 |
Balance Sheet | 10 |
Statement of Changes in Equity | 11 |
Cash Flow Statement | 12 |
Notes to the Cash Flow Statement | 13 |
Notes to the Financial Statements | 14 |
Henrys (Glasgow) Limited |
Company Information |
for the Year Ended 31 December 2023 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants and Statutory Auditors |
145 St Vincent Street |
Glasgow |
G2 5JF |
SOLICITORS: |
RWF House |
5 Renfield Street |
Glasgow |
G2 5EZ |
Henrys (Glasgow) Limited (Registered number: SC105261) |
Strategic Report |
for the Year Ended 31 December 2023 |
The directors present their strategic report for the year ended 31 December 2023. |
REVIEW OF BUSINESS |
Our core activity remains in the form of a motor trade franchised dealer operating Sales, Service, Parts and Car Rental. The company holds franchises for Honda, Skoda, SsangYong (Aftersales only) and Suzuki through three different locations serving the Glasgow territory. |
We were delighted with the overall performance in 2023. Turnover increased by 27% in 2023 to £57.5m over the previous year. We are also up 57% over our last pre-COVID-19 trading year, 2019. Trading profit before tax of £1.52m represents an increase of £0.48m on 2022. |
We are pleased to report that turnover in new car sales across all our brands increased over the previous year by a collective 19% in Retail sales and 42% in Motability sales. Although we continued to experience a shortage of used car stock, turnover increased by 16%. Our aftersales departments also enjoyed a Gross Profit increase of £182k over 2022. |
Control of expenses has continued to be challenging as we increased salaries throughout the year to reward our staff and support them with the soaring costs of living. The dramatic increase in our energy costs seen in 2022 has continued through 2023 across all the sites. |
During the year we opened an additional used car display at our Suzuki site. In 2021 we purchased adjacent land and developed it for up to 40 vehicles (total investment cost of £620k). |
We also invested in a Battery Care Centre at our Skoda site, giving us the technical capability to work directly within the highly sensitive battery units in our new Electric Vehicles. (total investment cost of £159k) |
Finally, cash generated through 2023 has been invested back into the business by clearing down our term business loans. |
The automotive industry still faces challenges around supply chain shortages, technology shifts and shortages in skilled employees. We also had the impact of rising inflation and interest rates, together with other significant world events. In spite of this we continued to perform strongly and ahead of expectation, by focusing on the opportunities within the business that were within our control. |
Henrys (Glasgow) Limited (Registered number: SC105261) |
Strategic Report |
for the Year Ended 31 December 2023 |
PRINCIPAL RISKS AND UNCERTAINTIES |
The following risks and associated mitigation processes represent the key risks and uncertainties which affect the company and how the directors address these. They are not intended to be an exhaustive analysis of all the risks facing the business. |
1. COVID-19 |
Risks: |
The last three years has exposed the majority of businesses to the economic impact of a global pandemic. While the threat of a pandemic has dissipated, there remains the possibility that other variants could materialise and restrictions reintroduced. |
Mitigating processes: |
While mitigating actions will depend on the nature and extent of any pandemic, the company remains resilient given its ability to re-introduce measures in place during the pandemic to facilitate continued trade. |
2. Economic risks |
Risks: |
The company's business operations are sensitive to economic conditions and, in particular, to inflationary pressures on consumer spending and the impact of interest rates on new finance agreements. Property values are also impacted by the economic uncertainty. |
Mitigation processes: |
The directors regularly review the impact of the economic conditions on the company's budget and strategic plans, to ensure that we maintain our competitive position in the market. We try to foster mutually beneficial and long-term relationships with our manufacturers whilst at the same time driving down costs in all areas. |
3. Supply chain risks |
Risks: |
The directors and senior management work with the manufacturers to facilitate a continued flow of new vehicles being delivered. Recent global events including the pandemic, Brexit, component part availability and the ongoing war in Ukraine have exposed the new vehicle market in particular to the risk of a disrupted supply chain. |
Mitigation processes: |
While many of the external factors are outside the control of the directors and senior management, there is an ongoing review of stock levels to ensure that our forecourts are suitably stocked. Furthermore, the used car market is constantly reviewed to maintain stock levels across the dealerships. Directors and senior management maintain relationships with the manufacturers to ensure that any delays are being built in to their review of stock levels in advance. |
4. Financial risks |
Risks: |
We are exposed to interest rate risk on the variable rate components of our financing and the impact that interest rate increases has on the agreements offered to our consumers to facilitate vehicle sales. We are also reliant on maintaining sound systems of internal control and on our information systems and technology to ensure the smooth operation of our business without risk of fraud or material error. |
Mitigation processes: |
Directors have reviewed external lending and prioritised early repayment of lending with a greater exposure to increased interest rates. Additionally, the directors work closely with the manufacturers to ensure that any incentives available to consumers are offered to them to continue to provide affordable cost solutions to facilitate vehicle sales. |
Henrys (Glasgow) Limited (Registered number: SC105261) |
Strategic Report |
for the Year Ended 31 December 2023 |
5. People risks |
Risks: |
We recognise the importance of attracting, retaining, developing and motivating the best people to help take our business forward and to ensure that we can deliver our operational and strategic objectives. Failure to attract these individuals could impact our ability to achieve our operational and strategic objectives. |
Mitigation processes: |
Directors aim to recruit the best people with the right skills and offer training and development programmes to ensure that we retain them. Staff contracts and turnover trends are reviewed and benchmarked to highlight any potential issues. |
MONITORING |
The directors monitor the key risks facing the company and assess the controls used for managing these risks. Profit reports are distributed to all management daily showing progress month -to-date and a forecast projection meeting is held twice a month. Monthly accounts are produced by working day five and discussed with the management teams. Our performance is benchmarked against industry KPI's and shortfalls identified. |
ON BEHALF OF THE BOARD: |
Henrys (Glasgow) Limited (Registered number: SC105261) |
Report of the Directors |
for the Year Ended 31 December 2023 |
The directors present their report with the financial statements of the company for the year ended 31 December 2023. |
PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of motor vehicle sales, servicing and bodyshop repairs. |
DIVIDENDS |
No interim dividend was paid during the year. The directors recommend a final dividend of 8.33p per share. |
The total distribution of dividends for the year ended 31 December 2023 will be £100,000. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 January 2023 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. |
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 or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
Henrys (Glasgow) Limited |
Opinion |
We have audited the financial statements of Henrys (Glasgow) Limited (the 'company') for the year ended 31 December 2023 which comprise the Statement of 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 December 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. |
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. |
Report of the Independent Auditors to the Members of |
Henrys (Glasgow) Limited |
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. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page 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. |
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: |
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and |
non-compliance with laws and regulations, we considered the following: |
- the nature of the industry and sector, control environment and business performance; |
- results of our enquiries of management about their own identification and assessment of the risks and irregularities; |
- any matters we identified having reviewed the company's internal controls established to mitigate risks of fraud or |
non- compliance with laws and regulations; |
- the matters discussed among the audit engagement team regarding how and where fraud might occur in the |
financial statements and any potential indicators of fraud. |
We obtained an understanding of the legal and regulatory framework that the company operates in. The key laws and regulations we considered included the UK Companies Act and tax legislation. We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items. In addition we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company's ability to operate. These included health and safety, GDPR, second hand dealers license, consumer credit and employment laws. Auditing standards limit the required audit procedures to identify non - compliance with these laws and regulations to enquiry of the directors, inspection of regulatory and legal correspondence, if any, and review of minutes of meetings.These limited procedures did not identify actual or suspected non-compliance. |
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 |
Henrys (Glasgow) Limited |
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 |
145 St Vincent Street |
Glasgow |
G2 5JF |
Henrys (Glasgow) Limited (Registered number: SC105261) |
Statement of Comprehensive Income |
for the Year Ended 31 December 2023 |
31.12.23 | 31.12.22 |
Notes | £ | £ |
TURNOVER |
Cost of sales | ( |
) | ( |
) |
GROSS PROFIT |
Administrative expenses | ( |
) | ( |
) |
OPERATING PROFIT | 4 |
Gain/loss on revaluation of tangible assets | - | (492,757 | ) |
1,631,075 | 1,140,688 |
Interest payable and similar expenses | 5 | ( |
) | ( |
) |
PROFIT BEFORE TAXATION |
Tax on profit | 6 | ( |
) | ( |
) |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
Henrys (Glasgow) Limited (Registered number: SC105261) |
Balance Sheet |
31 December 2023 |
31.12.23 | 31.12.22 |
Notes | £ | £ |
FIXED ASSETS |
Intangible assets | 8 |
Tangible assets | 9 |
CURRENT ASSETS |
Stocks | 10 |
Debtors | 11 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 12 | ( |
) | ( |
) |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
13 |
( |
) |
PROVISIONS FOR LIABILITIES | 16 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 17 |
Share premium | 18 |
Retained earnings | 18 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
Henrys (Glasgow) Limited (Registered number: SC105261) |
Statement of Changes in Equity |
for the Year Ended 31 December 2023 |
Called up |
share | Retained | Share | Total |
capital | earnings | premium | equity |
£ | £ | £ | £ |
Balance at 1 January 2022 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - | - |
Balance at 31 December 2022 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - | - |
Balance at 31 December 2023 |
Henrys (Glasgow) Limited (Registered number: SC105261) |
Cash Flow Statement |
for the Year Ended 31 December 2023 |
31.12.23 | 31.12.22 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 |
Interest paid | ( |
) | ( |
) |
Tax paid | ( |
) | ( |
) |
Net cash from operating activities |
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Net cash from investing activities | ( |
) | ( |
) |
Cash flows from financing activities |
Loan repayments in year | ( |
) | ( |
) |
Amount introduced by directors | 127,405 | 144,502 |
Amount withdrawn by directors | (54,890 | ) | (34,466 | ) |
Equity dividends paid | ( |
) | ( |
) |
Net cash from financing activities | ( |
) | ( |
) |
Increase in cash and cash equivalents |
Cash and cash equivalents at beginning of year |
2 |
455,489 |
Cash and cash equivalents at end of year | 2 | 1,100,028 | 622,172 |
Henrys (Glasgow) Limited (Registered number: SC105261) |
Notes to the Cash Flow Statement |
for the Year Ended 31 December 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
31.12.23 | 31.12.22 |
£ | £ |
Profit before taxation |
Depreciation charges |
Loss on disposal of fixed assets |
Loss on revaluation of fixed assets | - | 492,757 |
Finance costs | 112,554 | 97,995 |
1,732,543 | 1,701,131 |
(Increase)/decrease in stocks | ( |
) |
Increase in trade and other debtors | ( |
) | ( |
) |
Increase/(decrease) 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 December 2023 |
31.12.23 | 1.1.23 |
£ | £ |
Cash and cash equivalents | 1,100,028 | 622,172 |
Year ended 31 December 2022 |
31.12.22 | 1.1.22 |
£ | £ |
Cash and cash equivalents | 622,172 | 455,489 |
3. | ANALYSIS OF CHANGES IN NET (DEBT)/FUNDS |
At 1.1.23 | Cash flow | At 31.12.23 |
£ | £ | £ |
Net cash |
Cash at bank | 622,172 | 477,856 | 1,100,028 |
622,172 | 1,100,028 |
Debt |
Debts falling due within 1 year | (222,112 | ) | 222,112 | - |
Debts falling due after 1 year | (427,346 | ) | 427,346 | - |
(649,458 | ) | 649,458 | - |
Total | (27,286 | ) | 1,127,314 | 1,100,028 |
Henrys (Glasgow) Limited (Registered number: SC105261) |
Notes to the Financial Statements |
for the Year Ended 31 December 2023 |
1. | STATUTORY INFORMATION |
Henrys (Glasgow) Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Turnover |
Turnover represents the amounts due for goods sold, for services provided and stated net of discounts and value added tax. |
Sales of goods are recognised when the goods are delivered and sales of services are recognised when the service has been provided. |
Goodwill |
Goodwill, being the amount paid in connection with the acquisition of a business in 2007, was amortised evenly over its useful life of one year. |
Henrys (Glasgow) Limited (Registered number: SC105261) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
2. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
The company's policy is to review the remaining useful economic lives and residual value of all tangible fixed assets on an on-going basis and to adjust the depreciation charge to reflect the remaining useful economic life and residual value. |
No depreciation is provided on Freehold Property as they are revalued annually by the directors. |
Fully depreciated assets are retained in cost and related accumulated depreciation until they are removed from service. In the case of disposals, assets and related depreciation are removed from the financial statements and the net amount, less proceeds from disposal, is charged or credited to the income statement. |
Impairment of fixed assets |
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs. |
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted. |
If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease. |
Stocks |
Stocks are value the lower of cost and net realisable value. |
The directors have considered the terms of the individual manufacturers consignment stocking agreements with specific reference to those terms which have a significant bearing in the allocation of risks and rewards of ownership, where based on this assessment is such that the risks and rewards of ownership are substantially transferred to the company, the stocks are recognised on the balance sheet and the corresponding liability is included in trade creditors. |
Financial instruments |
Debtors |
Trade debtors and other debtors are recognised at the settlement amount due with appropriate allowances for any irrecoverable amounts when there is objective evidence the asset is impaired. |
Cash and cash equivalents |
Cash and cash equivalent in the balance sheet comprise cash at bank and in hand. |
Creditors |
Trade creditors and other creditors are recognised where the company has a present obligation resulting from a past event and are recognised at the settlement amount due after allowing for any trade discounts due. |
Henrys (Glasgow) Limited (Registered number: SC105261) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
2. | ACCOUNTING POLICIES - continued |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, 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. |
Taxation |
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. |
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 profit or loss in the period to which they relate. |
Operating lease agreements |
Rentals paid under operating leases are charged to the profit and loss account on a straight line basis over the period of the lease. |
3. | EMPLOYEES AND DIRECTORS |
31.12.23 | 31.12.22 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
31.12.23 | 31.12.22 |
Number of production staff | 61 | 63 |
Number of administrative staff | 8 | 7 |
Number of management staff | 10 | 10 |
31.12.23 | 31.12.22 |
£ | £ |
Directors' remuneration |
Henrys (Glasgow) Limited (Registered number: SC105261) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
4. | OPERATING PROFIT |
The operating profit is stated after charging: |
31.12.23 | 31.12.22 |
£ | £ |
Depreciation - owned assets |
Loss on disposal of fixed assets |
Auditors' remuneration |
5. | INTEREST PAYABLE AND SIMILAR EXPENSES |
31.12.23 | 31.12.22 |
£ | £ |
Bank loan interest |
Other interest |
Stock finance interest |
6. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
31.12.23 | 31.12.22 |
£ | £ |
Current tax: |
UK corporation tax |
Deferred tax | ( |
) |
Tax on profit |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
31.12.23 | 31.12.22 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of |
Effects of: |
Expenses not deductible for tax purposes |
Capital allowances in excess of depreciation | - | ( |
) |
Depreciation in excess of capital allowances | - |
Deferred tax | (3,500 | ) | 28,000 |
Revaluation of properties not deductible for tax purposes | - | 93,624 |
Enhanced relief in respect of land remediation | - | (21,581 | ) |
Total tax charge | 362,621 | 290,367 |
Henrys (Glasgow) Limited (Registered number: SC105261) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
7. | DIVIDENDS |
31.12.23 | 31.12.22 |
£ | £ |
Ordinary shares of £1 each |
Final |
8. | INTANGIBLE FIXED ASSETS |
Goodwill |
£ |
COST |
At 1 January 2023 |
and 31 December 2023 |
AMORTISATION |
At 1 January 2023 |
and 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
9. | TANGIBLE FIXED ASSETS |
Fixtures |
Freehold | Plant and | and | Motor |
property | machinery | fittings | vehicles | Totals |
£ | £ | £ | £ | £ |
COST OR VALUATION |
At 1 January 2023 |
Additions |
Disposals | ( |
) | ( |
) | ( |
) | ( |
) |
At 31 December 2023 |
DEPRECIATION |
At 1 January 2023 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) | ( |
) | ( |
) |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
Freehold properties were valued on an open market basis in November 2019 by Graham and Sibbald Chartered Surveyors. Following substantial renovations, a further revaluation was carried out in 2023 by D M Hall on the property in which the Suzuki franchise operates from. |
The directors consider these valuations to be appropriate as at 31st December 2023. |
Henrys (Glasgow) Limited (Registered number: SC105261) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
9. | TANGIBLE FIXED ASSETS - continued |
Cost or valuation at 31 December 2023 is represented by: |
Fixtures |
Freehold | Plant and | and |
property | machinery | fittings | Totals |
£ | £ | £ | £ |
Valuation in 2014 | 276,776 | - | - | 276,776 |
Valuation in 2016 | (159,925 | ) | - | - | (159,925 | ) |
Valuation in 2017 | (33,125 | ) | - | - | (33,125 | ) |
Valuation in 2018 | (8,513 | ) | - | - | (8,513 | ) |
Valuation in 2019 | (60,603 | ) | - | - | (60,603 | ) |
Valuation in 2020 | (27,175 | ) | - | - | (27,175 | ) |
Valuation in 2022 | (492,757 | ) | - | - | (492,757 | ) |
Cost | 5,161,394 | 469,647 | 139,918 | 5,770,959 |
4,656,072 | 469,647 | 139,918 | 5,265,637 |
10. | STOCKS |
Included within stocks are consignment stock amounting to £1,256,110 (2022: £695,454) in respect of vehicles where the risk and rewards of ownership are considered to lie within the company. The corresponding liability is recorded within creditors. |
11. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.12.23 | 31.12.22 |
£ | £ |
Trade debtors |
Prepayments |
12. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.12.23 | 31.12.22 |
£ | £ |
Bank loans and overdrafts (see note 14) |
Trade creditors |
Tax |
Social security and other taxes |
VAT | 181,072 | 93,507 |
Directors' current accounts | 506,710 | 434,195 |
Accrued expenses |
The directors loan account is repayable on demand. Interest is payable at 6% per annum on the average balance during the year. |
13. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
31.12.23 | 31.12.22 |
£ | £ |
Bank loans (see note 14) |
Henrys (Glasgow) Limited (Registered number: SC105261) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
14. | LOANS |
An analysis of the maturity of loans is given below: |
31.12.23 | 31.12.22 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank loans |
Amounts falling due between one and two years: |
Bank loans - 1-2 years |
Amounts falling due between two and five years: |
Bank loans - 2-5 years |
15. | SECURED DEBTS |
The following secured debts are included within creditors: |
31.12.23 | 31.12.22 |
£ | £ |
Bank loans |
The Bank overdraft is secured in favour of the Clydesdale Bank as follows: |
1. Standard security over all the company's properties. |
2. Bond and Floating charge over the company asset's. |
There is a further Bond and Floating charge over the Used Motor Vehicles financed by Honda Finance Europe Ltd dated 8 March 2007. |
16. | PROVISIONS FOR LIABILITIES |
31.12.23 | 31.12.22 |
£ | £ |
Deferred tax | 100,200 | 103,700 |
Deferred |
tax |
£ |
Balance at 1 January 2023 |
Provided during year | ( |
) |
Balance at 31 December 2023 |
17. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 31.12.23 | 31.12.22 |
value: | £ | £ |
Ordinary | £1 | 1,200,000 | 1,200,000 |
Henrys (Glasgow) Limited (Registered number: SC105261) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
18. | RESERVES |
Retained | Share |
earnings | premium | Totals |
£ | £ | £ |
At 1 January 2023 | 4,029,042 |
Profit for the year |
Dividends | ( |
) | ( |
) |
At 31 December 2023 | 5,084,942 |
19. | PENSION COMMITMENTS |
The company operates a defined contribution pension scheme with Legal and General. The charge for the year amounted to £38,464 (2022: £51,862) and contributions are charged to profit and loss account. |
20. | RELATED PARTY DISCLOSURES |
During the year, the company paid interest of £27,405 (2022: £22,088) to Mr A Henry on his loan account. |
During the year, the company purchased vehicles with a value of £28,741 (2022: £22,413) from, and sold vehicles with a value of £NIL (2022: £NIL) to Mr A Henry. |