FOR THE PERIOD ENDED 31 DECEMBER 2023
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MURRAY HOLDINGS (SW) LIMITED
COMPANY INFORMATION
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MURRAY HOLDINGS (SW) LIMITED
CONTENTS
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MURRAY HOLDINGS (SW) LIMITED
GROUP STRATEGIC REPORT
FOR THE PERIOD ENDED 31 DECEMBER 2023
Murray Holdings (SW) Limited has pleasure in presenting its accounts for the year ended 31 December 2023.
The principal activity of the Company is trading as a motor dealer in Southwest of England.
The company has been trading now for 23 years established in 2001. During the year the Group predominantly operated in the following Motor retail sectors: Brand Locations Volkswagen Passenger Cars Plymouth and Newton Abbot Skoda Plymouth and Newton Abbot VWG Trade Parts Specialists Plymouth/Devon Kia Plymouth Hyundai Plymouth MG Plymouth Mitsubishi Plymouth The Managing Director is happy with the reported turnover figure for 2023 of £131m. This includes the turnover for Rodgers of Plymouth (Purchased in December 2021) for a full financial year. The previous 3 years Group turnover figures are highlighted below: 31 December 2022 £115m 31 December 2021 £70m 31 December 2020 £57m 2023 has seen a significant increase in all areas, this is the second full financial year of Rodgers of Plymouth now being recognised within the accounts. This has seen an increase in turnover for the business of 14%. Vehicle sales volumes increased by 9% in the year mainly due to the return of new car supply becoming available with Volkswagen and Skoda. This meant a reduction in used car volume and profitability per unit achievable in Murray (Plymouth) Limited. However, overall, in used there was a 3% or £161k increase in gross profit due to the strong used market within the Kia and Hyundai brands. Sales of retail new car volumes increased by 24% in 2023. Which in turn represents an increase of 31% in retail new vehicle turnover due to the change of products within the range offered now moving heavily towards SUV and Electric vehicles. The average sale price of new cars due to this change in vehicle profile is £22,000 pre-VAT compared with the average in 2022 of £20,500. However, at this stage the demand for electric vehicles has seen a more recent decline as UK policy to phase out ICE (Internal Combustion Engine) vehicles has been delayed until post 2030. More models will be launched next year in 2025 which will see the increase of Electric vehicles in the UK market again along with the continuous investment in electric charging infrastructure in the UK to support this growth. After-sales turnover performance has remained consistently strong for 2023. Across the group there has been an 16% increase in turnover. There has been continuous growth in aftersales for the VW & Skoda brands, but the group has seen significant growth with the new brands acquired within the Rodgers purchase. This has continued into 2024 with the company seeing an increased profit at the half year point of June 2024. Cost of labour (staff) has been a challenge in 2023 with an average increase in technician wages of 20% during the year. The Group reported profit after tax of £888k for 2023 which was a decrease of £375k from the prior year. However, throughout the whole period our Ivybridge site was unoccupied creating an £100k loss to the Group. Post year end it has been re-opened with a wheel repair centre as well as representing a new franchise. Therefore, we believe the site will return to a breakeven position for 2024. Also, within the period the group recorded a loss of £352k made at our MG dealership, from 1st March 2024 the Murray Group no longer represent this brand.
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MURRAY HOLDINGS (SW) LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
The company also felt the effects of the increased interest rates within the year, leading to an increase of interest payable in the year of £460k. The group have put policies in place around overage stock and demonstrator funding in 2024 to mitigate the high interest rates and give us cost savings against the prior year. Given the above reasoning we expect the group to return to healthy profits of over £1m in 2024.
The principal risks to the company are:
Maintaining the brand franchises at each of the 6 franchise sites within the Group. Throughout 2023 the company continues to have extremely strong long-term manufacturer relationships at all 6 of the Murray Group sites. The business has a strong and loyal customer base within the and this can be evidenced by the continued high level customer satisfaction scores. The lengthy experience of the Management team ensures the company can make decisions to navigate though good and bad economic times.
Credit risk
Credit risk is managed by closely controlling trading activity and regularly monitoring counterparty positions. The Director does not see this is a significant risk. Foreign exchange risk The Group’s activities are carried out in pound sterling and thus the Directors do not see this as a significant risk. Interest rate risk The Group holds stocking loans as well as loans for consignment stock and is therefore exposed to interest rate fluctations. However consignment stock loans only incurr interest after 90 days and therefore the Directors do not see this as a significant risk. Liquidity risk In order to maintain liquidity to ensure that sufficient funds are available for ongoing operations and future developments, the Group mitigates risk through daily monitoring of the bank balances as well as weekly production of management reports which show business activity levels including future sales orders and specifically close monitoring of stock levels. We also have excellent relationships with our funders.
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MURRAY HOLDINGS (SW) LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
The financial key performance indicators are:
Turnover as indicated above. Profitability Net profitability after tax for the company in 2023 was £888k. A summary of the previous 3 years profit is shown below: 31 December 2022 £1,263k 31 December 2021 £1,518k 31 December 2020 £1,117k Assets and balance sheet As of 31 December 2023, the Balance Sheet stands at £4.8m Stock levels Stock levels as of 31 December 2023 are £15.3m. This compares to a level of £14.7m for the previous year. Stock items are subject to stringent policies of depreciation and provisioning and hence the Group Managing Director feels that all stock items reflect their true value to the business as at the Balance Sheet date. The Director has reviewed the forecasts for the next 18 months from the June 2024 performance and believe the company is a going concern.
The Director consider they have complied with the requirement of Section 172(1)(a)-(f) of the Companies Act 2006 in their decision making and performance of their duties. Key decisions are always discussed at senior management level where there is a high level of experience within the automotive industry.
We have a set of strategic objectives which have been designed to have a long-term beneficial impact on the company. These are updated annually across all areas to the business and other key KPI’s the management team are working towards to ensure we continue to deliver high quality service across all our business divisions. Our employees are fundamental to the delivery of our strategic objectives and driving the business forward. We continue to invest in our staff as this is key to our success and recognise the importance of their contribution towards the business. We believe in genuine, clear and direct communication delivered in a warm and respectful way encouraging two-way feedback. The senior management visit all sites on a weekly basis and gain knowledge for their interactions with all employees to use as part of our decision making. Engagement with key stakeholders is vital to our success. This includes customers, manufacturer partners, funders, and suppliers of which we have regular and open communication with. This allows all parties to be fully informed and make appropriate decisions in line with their company policies. We also have a strong presence within the local community with charitable and sponsorship arrangements. The company is committed to a net zero future and our role to reduce carbon emissions. We have already taken a number of our employees out of combustion engines vehicles and moved them into electric or hybrid vehicles. We are committed to pursue waste-saving opportunities and protecting our local environment. As a senior management team our intention is to behave responsibly and ensure that the management operate the business in a responsible manner, with high standards of business conduct. This is governed by our core value of Integrity, Resilience, Positivity and Ambition.
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MURRAY HOLDINGS (SW) LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
This report was approved by the board and signed on its behalf.
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MURRAY HOLDINGS (SW) LIMITED
DIRECTOR'S REPORT
FOR THE PERIOD ENDED 31 DECEMBER 2023
The director presents his report and the financial statements for the period ended 31 December 2023.
The profit for the period, after taxation, amounted to £852,035 (2022: £1,263,146).
Dividends have been declared in the year amounting to £360,000 (2022: £300,000)
Following the year end dividends were declared amounting to £120,000.
The director who served during the period was:
The director aims to maintain the management policies which have resulted in the Group's substantial growth in
recent years. Recent supply chain and economic issues have presented significant challenges to the Group. However, in the longer term, the director is confident that the Group will achieve further growth in sales from continuing operations.
Details on how the Group has fostered relationships with suppliers, customers and others can be found within the Group’s Section 172 statement in the Strategic Report.
As above, details on this section can be found in the Section 172 statement.
The Group has taken advantage of the exemptions from disclosing information surrounding its greenhouse gas emissions, energy consumption and energy efficient action of the grounds that the parent company qualifies as a low energy user and each subsidiary does not qualify to report the information due to their size.
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MURRAY HOLDINGS (SW) LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
The auditors, Bishop Fleming LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
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MURRAY HOLDINGS (SW) LIMITED
DIRECTOR'S RESPONSIBILITIES STATEMENT
FOR THE PERIOD ENDED 31 DECEMBER 2023
The director is responsible for preparing the Group strategic report, the Director's report and the consolidated financial statements in accordance with applicable law and regulations.
Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the Company and the Group and of the profit or loss of the Group for that period.
In preparing these financial statements, the director is required to:
∙select suitable accounting policies for the Group's financial statements and then apply them consistently;
∙make judgments and accounting estimates that are reasonable and prudent;
∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue in business.
The director is 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 the Group and to enable him to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
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MURRAY HOLDINGS (SW) LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MURRAY HOLDINGS (SW) LIMITED
We have audited the consolidated financial statements of Murray Holdings (SW) Limited (the 'parent Company') and its subsidiaries (the 'Group') for the period ended 31 December 2023, which comprise the Consolidated Statement of comprehensive income, the Consolidated and Company Statements of financial position, the Consolidated and Company Statement of changes in equity, the Consolidated Statement of cash flows and the related notes, 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).
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 consolidated financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the consolidated 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.
In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group's or the parent Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' report thereon. The director is 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.
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MURRAY HOLDINGS (SW) LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MURRAY HOLDINGS (SW) LIMITED (CONTINUED)
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Group strategic report and the Director's report for the financial period for which the consolidated financial statements are prepared is consistent with the consolidated financial statements; and
∙the Group strategic report and the Director's report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group strategic report or the Director's report.
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MURRAY HOLDINGS (SW) LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MURRAY HOLDINGS (SW) LIMITED (CONTINUED)
Our objectives are to obtain reasonable assurance about whether the consolidated 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 Group 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:
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 sector, control environment and the Company’s and Group’s performance; • results of our enquiries of management and the Director, about their own identification and assessment of the risks of irregularities; • any matters we identified having obtained and reviewed the Parent Company’s and Group’s documentation of their policies and procedures relating to: identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance; detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; the 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. As a result of these procedures, we considered the opportunities and incentives that may exist within the Parent Company and Group for fraud, which included incorrect recognition of revenue, management override of controls using manual journal entries, and identified the greatest potential for fraud as incorrect recognition of revenue and management override using manual journal entries. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. We also obtained an understanding of the legal and regulatory frameworks that the Parent Company and Group operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included UK Companies Act, FRS 102 and tax legislation. 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 Parent Company’s and Group’s ability to operate or to avoid a material penalty. These included brand standards, consumer credit regulations, occupational health and safety regulations, and employment legislation. Our procedures to respond to risks identified included the following for the Parent Company and its subsidiaries, as was considered appropriate: • reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements; • reviewing the financial statement disclosures and testing to supporting documentation to assess the recognition of revenue; • enquiring of the Director and management concerning actual and potential litigation and claims; • performing procedures to confirm material compliance with the requirements of the above regulations; • performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud; • reading minutes of director meetings; and
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MURRAY HOLDINGS (SW) LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MURRAY HOLDINGS (SW) LIMITED (CONTINUED)
• in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; and assessing whether the judgements made in making accounting estimates are indicative of a potential bias.
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members, and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit. Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from an error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed 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.
A further description of our responsibilities for the audit of the consolidated 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.
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 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.
for and on behalf of
Chartered Accountants
Statutory Auditors
2nd Floor Stratus House
Emperor Way
Exeter Business Park
EX1 3QS
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MURRAY HOLDINGS (SW) LIMITED
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 31 DECEMBER 2023
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MURRAY HOLDINGS (SW) LIMITED
REGISTERED NUMBER:11118150
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023
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MURRAY HOLDINGS (SW) LIMITED
REGISTERED NUMBER:11118150
CONSOLIDATED STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 31 DECEMBER 2023
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 22 to 38 form part of these financial statements.
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MURRAY HOLDINGS (SW) LIMITED
REGISTERED NUMBER:11118150
COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 22 to 38 form part of these financial statements.
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MURRAY HOLDINGS (SW) LIMITED
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 DECEMBER 2023
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MURRAY HOLDINGS (SW) LIMITED
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 DECEMBER 2022
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MURRAY HOLDINGS (SW) LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 DECEMBER 2023
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MURRAY HOLDINGS (SW) LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 DECEMBER 2022
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MURRAY HOLDINGS (SW) LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 31 DECEMBER 2023
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MURRAY HOLDINGS (SW) LIMITED
CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE PERIOD ENDED 31 DECEMBER 2023
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MURRAY HOLDINGS (SW) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023
Murray Holdings (SW) Limited is a private company, limited by shares, incorporated in England, United Kingdom. The addres of its registered office is 44 Millbay Road, Plymouth, Devon, PL1 3FQ.
2.ACCOUNTING POLICIES
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 Group management to exercise judgment in applying the Group's accounting policies (see note 3).
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income in these financial statements.
The following principal accounting policies have been applied:
The consolidated financial statements present the results of Group and its own subsidiaries ("the Group") as they formed a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
On 1 January 2018 the company acquired 100% of the share capital of Murray (Plymouth) Limited and Murray Enterprises Limited by way of a share for share exchange. The results of the Group have been combined using merger accounting in accordance with paragraphs 19.29 to 19.33 of FRS 102. The Group reconstruction meets the requirements of merger accounting in accordance with paragraph 19.27 of FRS 102. In line with the requirements of FRS 102, the results and cash flows of all the combining entities have been brought into the financial statements of the combined entity from the beginning of the financial period.
The Group has prepared forecasts to 31 December 2025.
After reviewing the Group’s forecasts and projections, which cover at least a 12-month period from the date of signing the financial statements, the directors have a reasonable expectation that the Group and Company have adequate resources to continue in operational existence for the foreseeable future. These forecasts and projections have considered a downside scenario in sales levels; however, management have also identified mitigating actions that could be taken to ensure that the Group has sufficient funds to meet liabilities as they fall due over the next 12 months. The Group therefore continues to adopt the going concern basis in preparing its consolidated financial statements.
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MURRAY HOLDINGS (SW) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023
2.ACCOUNTING POLICIES (continued)
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MURRAY HOLDINGS (SW) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023
2.ACCOUNTING POLICIES (continued)
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MURRAY HOLDINGS (SW) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023
2.ACCOUNTING POLICIES (continued)
GOODWILL
Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of the Group's share of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, Goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight line basis to the Statement of Comprehensive Income (within administrative expenses) over its useful economic life. Goodwill is amortised over 10 years.
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, using the straight-line method. .
Depreciation is provided on the following basis:
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 within 'administrative expenses' in the Statement of Comprehensive Income. Fair values are determined from market based evidence normally undertaken by professionally qualified valuers. Revaluation gains and losses are recognised in the Consolidated statement of comprehensive income unless losses exceed the previously recognised gains or reflect a clear consumption of economic benefits, in which case the excess losses are recognised in profit or loss.
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MURRAY HOLDINGS (SW) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023
2.ACCOUNTING POLICIES (continued)
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.
The Group only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, loans from third parties and loans to related parties.
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MURRAY HOLDINGS (SW) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023
Useful life of goodwill/negative goodwill: The useful life of goodwill has been determined as 10 years. The director is of the opinion that this most accurately reflects the life of the goodwill recognised on the acquisition of past businesses. Valuation of freehold property: Freehold property is held at fair value. Fair values are determined from market based evidence normally undertaken by professionally qualified valuers. Depreciation of freehold property: No depreciation is provided on freehold properties. The director considers that the stringent building quality requirements of the vehicle manufacturers, which necessitate significant investment in maintenance and refurbishment, means that the lives of these assets and residual values are such that their depreciation is insignificant. Stock write down provisions: Included in the financial statements are provisions against used car stock to align the book value to the net realisable value. These provisions are created by used car managers based on their assumptions of the local market with consideration also given to national used car values. Consignment stock: The Group reviews the terms and conditions governing the purchase of new vehicle stocks on a supplier by supplier basis. Where the director judges that risk and reward have transferred, the Group recognises the associated stock and creditor balances. Indicators that the Group bears the risks and reward of ownership include:
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MURRAY HOLDINGS (SW) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023
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MURRAY HOLDINGS (SW) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023
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MURRAY HOLDINGS (SW) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023
There were no factors that may affect future tax charges.
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MURRAY HOLDINGS (SW) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023
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MURRAY HOLDINGS (SW) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023
On acquisition of Rodgers of Plymouth Limited, the fair value of freehold property aquired of £2,360,000
is considered to be the deemed cost to the group. The historical cost to the subsidiary was £1,442,420 (2022: £1,442,420).
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MURRAY HOLDINGS (SW) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023
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MURRAY HOLDINGS (SW) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023
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MURRAY HOLDINGS (SW) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023
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MURRAY HOLDINGS (SW) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023
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MURRAY HOLDINGS (SW) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023
Revaluation reserve
Merger Reserve
Profit and loss account
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MURRAY HOLDINGS (SW) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023
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 £159,982 (2022: £109,261). Contributions totalling £29,806 (2022: £18,483) were payable to the fund at the balance sheet date and are included in creditors.
The ultimate controlling party is Mr K Murray.
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