Company registration number 02835614 (England and Wales)
TURNERS ACCIDENT REPAIR LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023
TURNERS ACCIDENT REPAIR LIMITED
COMPANY INFORMATION
Directors
Mr S G Turner
Mrs S E Turner
Mr T Turner
Company number
02835614
Registered office
Barlby Junction
Barlby
Selby
North Yorkshire
YO8 5JE
Auditor
BHP LLP
Rievaulx House
1 St Mary's Court
Blossom Street
York
North Yorkshire
YO24 1AH
TURNERS ACCIDENT REPAIR LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 6
Profit and loss account
7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Notes to the financial statements
11 - 24
TURNERS ACCIDENT REPAIR LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 OCTOBER 2023
- 1 -

The directors present the strategic report for the year ended 31 October 2023.

Review of the Business

The business has continued to exceed performance expectations for the financial year. This has led to an increase in both turnover and profitability from the previous financial year, driven by organic growth across the Group.

All of our 6 sites have continued to be PAS2060 Carbon Neutral, and we are continually looking at ways to reduce our carbon footprint.

The directors are pleased with the way the business has performed and believe that these results should continue and improve into the future.

Risks and Uncertainties

As part of our ongoing business strategy, we are continually look at identifying any risks to the ongoing success of the company. The recent covid pandemic was a major risk to the company but our continued growth through this period demonstrated the strength and resilience of the business.

The current war in Ukraine is still leading to volatility in the supply of parts and the energy market, although this seems to have stabilised recently. We are trying to mitigate this with our use of green parts and repair over replace, utilising the latest repair methodologies.

Key performance indicators

The key performance indicators the directors believe are important and most effectively show the performance of the company are: -

Analysis of KPIs

                        2023        2022

Turnover                    £17,036,387    £13,388,298

Operating profit                    £2,083,684    £1,630,314

Operating profit margin                12.23%        12.18%

 

 

Our KPI’s are moving in a positive direction and are expected to continue to do so over the next financial year.

 

On behalf of the board

Mr T Turner
Director
4 July 2024
TURNERS ACCIDENT REPAIR LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 OCTOBER 2023
- 2 -

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

Principal activities

The principal activity of the company continued to be that of a motor vehicle repairs.

Results and dividends

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

Ordinary dividends were paid amounting to £575,000. The directors do not recommend payment of a further dividend.

Directors

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

Mr S G Turner
Mrs S E Turner
Mr T Turner
Post reporting date events

We are continuously looking at possibilities to expand the business and improve our results into the future. As part of that strategy, we opened our 6th site in Ripon in May 2024. This is a brand-new, state of the art, 22,000 SQFT site, which will allow us to access the market in the Northeast, driving increases in turnover and profitability.

We are currently working on diversifying our workstreams by increasing the number of manufacturers we are approved to work for

Future developments

The board expects the performance of the business to continue to improve in the forthcoming year. The new Ripon site will become fully operational and the board will continue to look for opportunities to grow turnover and profitability through focusing on existing sites operations as well as potential new sites.

Auditor

The auditor, BHP LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Statement of disclosure to auditor

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

On behalf of the board
Mr T Turner
Director
4 July 2024
TURNERS ACCIDENT REPAIR LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 OCTOBER 2023
- 3 -

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

 

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

 

 

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

TURNERS ACCIDENT REPAIR LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF TURNERS ACCIDENT REPAIR LIMITED
- 4 -
Opinion

We have audited the financial statements of Turners Accident Repair Limited (the 'company') for the year ended 31 October 2023 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

 

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

 

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

Other information

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

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

TURNERS ACCIDENT REPAIR LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF TURNERS ACCIDENT REPAIR LIMITED
- 5 -
Matters on which we are required to report by exception

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

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

 

TURNERS ACCIDENT REPAIR LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF TURNERS ACCIDENT REPAIR LIMITED
- 6 -

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

 

To address the risk of fraud through management bias and override of controls, we:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

 

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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

Use of our report

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

Daniel Sowden
Senior Statutory Auditor
For and on behalf of BHP LLP
5 July 2024
Chartered Accountants
Statutory Auditor
Rievaulx House
1 St Mary's Court
Blossom Street
York
North Yorkshire
YO24 1AH
TURNERS ACCIDENT REPAIR LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 OCTOBER 2023
- 7 -
2023
2022
Notes
£
£
Turnover
3
17,036,388
13,388,298
Cost of sales
(12,702,829)
(9,960,462)
Gross profit
4,333,559
3,427,836
Administrative expenses
(2,258,592)
(1,824,656)
Other operating income
8,717
27,134
Operating profit
4
2,083,684
1,630,314
Interest payable and similar expenses
7
(42,078)
(37,410)
Profit before taxation
2,041,606
1,592,904
Tax on profit
8
(474,498)
(316,935)
Profit for the financial year
1,567,108
1,275,969

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

TURNERS ACCIDENT REPAIR LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 OCTOBER 2023
- 8 -
2023
2022
£
£
Profit for the year
1,567,108
1,275,969
Other comprehensive income
-
-
Total comprehensive income for the year
1,567,108
1,275,969
TURNERS ACCIDENT REPAIR LIMITED
BALANCE SHEET
AS AT
31 OCTOBER 2023
31 October 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
10
2,016,736
2,836,570
Current assets
Stocks
11
903,790
649,414
Debtors
12
2,641,584
995,297
Cash at bank and in hand
2,528,517
2,397,433
6,073,891
4,042,144
Creditors: amounts falling due within one year
13
(2,925,376)
(2,361,282)
Net current assets
3,148,515
1,680,862
Total assets less current liabilities
5,165,251
4,517,432
Creditors: amounts falling due after more than one year
14
(616,741)
(1,079,363)
Provisions for liabilities
Deferred tax liability
17
356,316
237,983
(356,316)
(237,983)
Net assets
4,192,194
3,200,086
Capital and reserves
Called up share capital
20
4,200
4,200
Profit and loss reserves
4,187,994
3,195,886
Total equity
4,192,194
3,200,086
The financial statements were approved by the board of directors and authorised for issue on 4 July 2024 and are signed on its behalf by:
Mr T Turner
Director
Company registration number 02835614 (England and Wales)
TURNERS ACCIDENT REPAIR LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 OCTOBER 2023
- 10 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 November 2021
4,200
2,294,917
2,299,117
Year ended 31 October 2022:
Profit and total comprehensive income
-
1,275,969
1,275,969
Dividends
9
-
(375,000)
(375,000)
Balance at 31 October 2022
4,200
3,195,886
3,200,086
Year ended 31 October 2023:
Profit and total comprehensive income
-
1,567,108
1,567,108
Dividends
9
-
(575,000)
(575,000)
Balance at 31 October 2023
4,200
4,187,994
4,192,194
TURNERS ACCIDENT REPAIR LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023
- 11 -
1
Accounting policies
Company information

Turners Accident Repair Limited is a private company limited by shares incorporated in England and Wales. The registered office is Barlby Junction, Barlby, Selby, North Yorkshire, YO8 5JE.

1.1
Accounting convention

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

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

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

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

 

 

The financial statements of the company are consolidated in the financial statements of Turners (Holdings) Limited. These consolidated financial statements are available from its registered office.

1.2
Going concern

At the time of approving, the Directortrues have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Specifically, the directors have considered the impact of any supply chain disruptions, labour shortages, as well as the wider economy. Whilst it is not considered practical to accurately assess the duration and extent of any disruption, the directors are confident that they have in place plans to deal with any implications that may arise.

 

The company continues to trade in line with expectations and has continued to generate profits and operating cash flows. Given this position. the Directors have options available to them in order to preserve cash flow and allow the business to settle its liabilities as they fall due, and with their continued support which has been obtained, the Directors therefore continue to adopt the going concern basis.

1.3
Turnover

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

1.4
Tangible fixed assets

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

TURNERS ACCIDENT REPAIR LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 12 -

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

Land and buildings Freehold
2% - 10% straight line
Leasehold improvements
4% -10% straight line
Plant and machinery
10% - 20% straight line
Motor vehicles
20% straight line

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

1.5
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 (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

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

1.6
Stocks

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

1.7
Cash and cash equivalents

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

TURNERS ACCIDENT REPAIR LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 13 -
1.8
Financial instruments

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

 

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

 

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

Basic financial assets

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

Other financial assets

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

Impairment of financial assets

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

 

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

 

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

Derecognition of financial assets

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

Classification of financial liabilities

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

TURNERS ACCIDENT REPAIR LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 14 -
Basic financial liabilities

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

 

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

 

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

Other financial liabilities

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

 

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

Derecognition of financial liabilities

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

1.9
Equity instruments

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

1.10
Taxation

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

Current tax

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

TURNERS ACCIDENT REPAIR LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 15 -
Deferred tax

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

 

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

1.11
Employee benefits

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

 

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

 

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

1.12
Retirement benefits

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

1.13
Leases

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

 

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

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

1.14
Government grants

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

 

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

TURNERS ACCIDENT REPAIR LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 16 -
1.15
Foreign exchange

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

2
Judgements and key sources of estimation uncertainty

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

 

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

3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Accident repair
17,036,388
13,388,298
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
17,036,388
13,388,298
2023
2022
£
£
Other significant revenue
Commissions received
-
0
19,937
Grants received
7,197
7,197
4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Government grants
(7,197)
(7,197)
Fees payable to the company's auditor for the audit of the company's financial statements
21,800
19,000
Depreciation of owned tangible fixed assets
385,722
303,386
Depreciation of tangible fixed assets held under finance leases
28,609
28,608
Profit on disposal of tangible fixed assets
(45,472)
(22,397)
Operating lease charges
442,432
315,864
TURNERS ACCIDENT REPAIR LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 17 -
5
Employees

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

2023
2022
Number
Number
Direct
82
77
Admin
20
18
Total
102
95

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
4,197,502
3,688,376
Social security costs
439,358
405,262
Pension costs
110,074
99,262
4,746,934
4,192,900
6
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
139,754
118,717
Company pension contributions to defined contribution schemes
-
15,000
139,754
133,717

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 3 (2022 - 3).

7
Interest payable and similar expenses
2023
2022
£
£
Interest on bank overdrafts and loans
38,751
33,722
Interest on finance leases and hire purchase contracts
3,327
3,688
42,078
37,410
TURNERS ACCIDENT REPAIR LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 18 -
8
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
355,812
328,383
Adjustments in respect of prior periods
353
-
0
Total current tax
356,165
328,383
Deferred tax
Origination and reversal of timing differences
118,333
(11,448)
Total tax charge
474,498
316,935

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

2023
2022
£
£
Profit before taxation
2,041,606
1,592,904
Expected tax charge based on the standard rate of corporation tax in the UK of 22.52% (2022: 19.00%)
459,770
302,652
Tax effect of expenses that are not deductible in determining taxable profit
22,904
17,115
Adjustments in respect of prior years
353
-
0
Effect of change in corporation tax rate
11,755
-
0
Group relief
(2,691)
-
0
Deferred tax adjustments in respect of prior years
(60)
(2,747)
Fixed asset differences
(17,533)
(85)
Taxation charge for the year
474,498
316,935
9
Dividends
2023
2022
£
£
Final paid
575,000
375,000
TURNERS ACCIDENT REPAIR LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 19 -
10
Tangible fixed assets
Land and buildings Freehold
Leasehold improvements
Plant and machinery
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 November 2022
1,741,168
196,986
1,933,636
568,802
4,440,592
Additions
-
0
133,365
552,774
485,921
1,172,060
Disposals
(1,741,168)
-
0
(5,199)
(169,024)
(1,915,391)
At 31 October 2023
-
0
330,351
2,481,211
885,699
3,697,261
Depreciation and impairment
At 1 November 2022
155,841
75,425
1,009,218
363,538
1,604,022
Depreciation charged in the year
27,266
25,908
232,259
128,898
414,331
Eliminated in respect of disposals
(183,107)
-
0
(3,942)
(150,779)
(337,828)
At 31 October 2023
-
0
101,333
1,237,535
341,657
1,680,525
Carrying amount
At 31 October 2023
-
0
229,018
1,243,676
544,042
2,016,736
At 31 October 2022
1,585,327
121,561
924,418
205,264
2,836,570

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

2023
2022
£
£
Plant and machinery
-
0
28,608
11
Stocks
2023
2022
£
£
Work in progress
903,790
649,414
12
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
1,002,009
747,936
Amounts owed by group undertakings
1,471,195
-
0
Other debtors
48,102
145,978
Prepayments and accrued income
120,278
101,383
2,641,584
995,297
TURNERS ACCIDENT REPAIR LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 20 -
13
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Bank loans
15
-
0
46,282
Obligations under finance leases
16
12,559
27,996
Other borrowings
15
237,583
205,736
Trade creditors
1,545,802
1,180,878
Corporation tax
160,248
166,883
Other taxation and social security
488,919
442,444
Government grants
18
7,197
7,197
Accruals and deferred income
473,068
283,866
2,925,376
2,361,282

Obligations under hire purchase and finance leases are secured on the assets concerned.

14
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Bank loans and overdrafts
15
-
0
1,011,346
Obligations under finance leases
16
-
0
13,794
Other borrowings
15
582,958
13,242
Government grants
18
33,783
40,981
616,741
1,079,363

Obligations under hire purchase and finance leases are secured on the assets concerned.

 

The company had one bank loan in place during the year. The loan was taken out in 2019. Interest was charged at 2.25% per annum over Base Rate. The loan was repayable over 7 years in monthly instalments of £6,108.42, with the final instalment to be paid in June 2026.

The long-term loan was secured by way of a legal charge over the property and assets at Unit 3, Gilhusum Road, Gildersome, Leeds.

The bank loan was fully repaid in the year.

TURNERS ACCIDENT REPAIR LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 21 -
15
Loans and overdrafts
2023
2022
£
£
Bank loans
-
0
1,057,628
Other loans
820,541
218,978
820,541
1,276,606
Payable within one year
237,583
252,018
Payable after one year
582,958
1,024,588
16
Finance lease obligations
2023
2022
Future minimum lease payments due under finance leases:
£
£
Within one year
12,559
27,996
In two to five years
-
0
13,794
12,559
41,790

Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 5 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

 

Net obligations under hire purchase contracts are secured against the assets to which they relate.

17
Deferred taxation

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

Liabilities
Liabilities
2023
2022
Balances:
£
£
Fixed asset timing differences
358,615
240,050
Short term timing differences
(2,299)
(2,067)
356,316
237,983
TURNERS ACCIDENT REPAIR LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
17
Deferred taxation
(Continued)
- 22 -
2023
Movements in the year:
£
Liability at 1 November 2022
237,983
Charge to profit or loss
118,333
Liability at 31 October 2023
356,316
18
Government grants
2023
2022
£
£
Arising from government grants
40,980
48,178
Included in the financial statements as follows:
Current liabilities
7,197
7,197
Non-current liabilities
33,783
40,981
40,980
48,178
19
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
110,074
99,262

The company operates a defined contribution pension scheme for the employees. The assets of the scheme are held separately from those of the company in an independently administered fund. At the balance sheet date, unpaid contributions of £18,532 (2022: £16,785) were due to the fund. They are included in taxation and social security creditors.

TURNERS ACCIDENT REPAIR LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 23 -
20
Share capital
2023
2022
£
£
Ordinary share capital
Issued and fully paid
300 Ordinary of £1 each
300
300
900 A Ordinary of £1 each
900
900
2,000 B Ordinary of £1 each
2,000
2,000
1,000 C Ordinary of £1 each
1,000
1,000
4,200
4,200

The Ordinary and Ordinary 'A' shares have full voting rights and rights in respect of dividends.

 

The 'B' Ordinary shares carry no voting rights and have no rights in respect of dividends. At the discretion of the directors a dividend may be paid on the 'B' Ordinary shares.

 

The 'C' Ordinary shares carry no voting rights and have rights in respect of dividends.

 

Dividends at different rates may be declared on the respective classes of shares in issue.

21
Financial commitments, guarantees and contingent liabilities

On 10 May 2023 the company entered into a cross guarantee agreement along with its parent company, Turners (Holdings) Limited, relating to a bank loan totalling £2,500,000. The guarantee is secured by a fixed and floating charge over the company's assets.

22
Operating lease commitments
Lessee

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

2023
2022
£
£
Within one year
687,917
446,446
Between two and five years
2,237,581
973,260
In over five years
3,079,571
149,192
6,005,069
1,568,898
23
Capital commitments

Amounts contracted for but not provided in the financial statements:

2023
2022
£
£
Acquisition of tangible fixed assets
15,300
121,250
TURNERS ACCIDENT REPAIR LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 24 -
24
Related party transactions

The company paid rent, on normal commercial terms, of £68,300 (2022: £68,300), to pension schemes, in which the directors are beneficiaries and trustees.

Included in other debtors is a loan due from the directors of £24,500 (2022: £126,422). The loan is interest free and repayable on demand.

As permitted by FRS 102, these financial statements do not disclose transactions with the parent undertaking, where 100% of the voting rights are held within the group.

25
Ultimate controlling party

The ultimate parent undertaking and controlling party is Turners (Holdings) Limited, which prepares group financial statements. The registered office of Turners (Holdings) Limited is Barlby Junction, Howden Road, Barlby, Selby, England, YO8 5JE.

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