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Registered number: 11118150
















MURRAY HOLDINGS (SW) LIMITED




ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 31 DECEMBER 2023


































img12e4.png


MURRAY HOLDINGS (SW) LIMITED

 
COMPANY INFORMATION


DIRECTOR
Mr K Murray 




COMPANY SECRETARY
Mrs A Willman



REGISTERED NUMBER
11118150



REGISTERED OFFICE
44 Millbay Road
Plymouth

PL1 3FQ




INDEPENDENT AUDITORS
Bishop Fleming LLP
Chartered Accountants & Statutory Auditors

2nd Floor Stratus House

Emperor Way

Exeter Business Park

Exeter

EX1 3QS






MURRAY HOLDINGS (SW) LIMITED


CONTENTS



Page
Group strategic report
 
1 - 4
Director's report
 
5 - 6
Director's responsibilities statement
 
7
Independent auditors' report
 
8 - 11
Consolidated statement of comprehensive income
 
12
Consolidated statement of financial position
 
13 - 14
Company statement of financial position
 
15
Consolidated statement of changes in equity
 
16 - 17
Company statement of changes in equity
 
18 - 19
Consolidated Statement of cash flows
 
20
Analysis of net debt
 
21
Notes to the financial statements
 
22 - 38



MURRAY HOLDINGS (SW) LIMITED

 
GROUP STRATEGIC REPORT
FOR THE PERIOD ENDED 31 DECEMBER 2023

INTRODUCTION
 
Murray Holdings (SW) Limited has pleasure in presenting its accounts for the year ended 31 December 2023.

BUSINESS REVIEW
 
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. 
 
Page 1


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. 

PRINCIPAL RISKS AND UNCERTAINTIES
 
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.  

FINANCIAL RISK MANAGEMENT

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.

Page 2


MURRAY HOLDINGS (SW) LIMITED


GROUP STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023

FINANCIAL KEY PERFORMANCE INDICATORS
 
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.

DIRECTOR'S STATEMENT OF COMPLIANCE WITH DUTY TO PROMOTE THE SUCCESS OF THE GROUP
 
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. 

Page 3


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.



Mr K Murray
Director

Date: 8 July 2024

Page 4


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.

RESULTS AND DIVIDENDS

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.

DIRECTOR

The director who served during the period was:

Mr K Murray 

FUTURE DEVELOPMENTS

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.

ENGAGEMENT WITH EMPLOYEES

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.

ENGAGEMENT WITH SUPPLIERS, CUSTOMERS AND OTHERS

As above, details on this section can be found in the Section 172 statement. 

DISABLED EMPLOYEES

The Group has a recruitment policy to ensure that all applications for employment, including those made by disabled persons, are given full and fair consideration in light of the applicants’ aptitudes and abilities. There is also an equal opportunities policy to ensure that all employees are treated equally in terms of employment, training, career development and promotion. Where employees develop a disability during their employment, every effort is made to continue their employment and arrange for appropriate training as far as is reasonably practicable.

GREENHOUSE GAS EMISSIONS, ENERGY CONSUMPTION AND ENERGY EFFICIENCY ACTION

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.

DISCLOSURE OF INFORMATION TO AUDITORS

The director at the time when this Director's report is approved has confirmed that:
 
so far as he is aware, there is no relevant audit information of which the Company and the Group's auditors are unaware, and

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

Page 5


MURRAY HOLDINGS (SW) LIMITED
 
 
DIRECTOR'S REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
AUDITORS

The auditorsBishop Fleming LLPwill 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.
 






Mr K Murray
Director

Date: 8 July 2024

44 Millbay Road
Plymouth
PL1 3FQ

Page 6


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 2006He 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.

Page 7


MURRAY HOLDINGS (SW) LIMITED

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MURRAY HOLDINGS (SW) LIMITED
OPINION


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 policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the consolidated financial statements:


give a true and fair view of the state of the Group's and of the parent Company's affairs as at 31 December 2023 and of the Group's profit for the period 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 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.


CONCLUSIONS RELATING TO GOING CONCERN


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.


OTHER INFORMATION


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.


Page 8


MURRAY HOLDINGS (SW) LIMITED
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MURRAY HOLDINGS (SW) LIMITED (CONTINUED)

OPINION ON OTHER MATTERS PRESCRIBED BY THE COMPANIES ACT 2006
 

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


the information given in the 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.


MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION
 

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.


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


adequate accounting records have not been kept by the parent Company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent Company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of director's 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 Director's responsibilities statement set out on page 7, the director is responsible for the preparation of the consolidated financial statements and for being satisfied that they give a true and fair view, and for such internal control as the director determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.


In preparing the consolidated financial statements, the director is responsible for assessing the Group's and the parent 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 director either intends to liquidate the Group or the parent Company or to cease operations, or have no realistic alternative but to do so.


Page 9


MURRAY HOLDINGS (SW) LIMITED
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MURRAY HOLDINGS (SW) LIMITED (CONTINUED)

AUDITORS' RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS
 

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
 
Page 10


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.


USE OF OUR REPORT
 

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






Fleur Lewis FCA (Senior statutory auditor)
for and on behalf of
Bishop Fleming LLP
Chartered Accountants
Statutory Auditors
2nd Floor Stratus House
Emperor Way
Exeter Business Park
Exeter
EX1 3QS

10 July 2024
Page 11


MURRAY HOLDINGS (SW) LIMITED

 
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 31 DECEMBER 2023

2023
2022
Note
£
£

  

Turnover
 4 
131,359,623
115,530,503

Cost of sales
  
(125,177,984)
(109,432,583)

GROSS PROFIT
  
6,181,639
6,097,920

Administrative expenses
  
(4,252,133)
(4,325,946)

Other operating income
 5 
241,219
390,779

OPERATING PROFIT
 6 
2,170,725
2,162,753

Interest payable and similar expenses
 10 
(1,057,580)
(597,172)

PROFIT BEFORE TAXATION
  
1,113,145
1,565,581

Tax on profit
 11 
(261,110)
(302,435)

PROFIT FOR THE FINANCIAL PERIOD
  
852,035
1,263,146

  

  

TOTAL COMPREHENSIVE INCOME FOR THE PERIOD
  
852,035
1,263,146

PROFIT FOR THE PERIOD ATTRIBUTABLE TO:
  

Owners of the parent Company
  
852,035
1,263,146

  
852,035
1,263,146

TOTAL COMPREHENSIVE INCOME FOR THE PERIOD ATTRIBUTABLE TO:
  

Owners of the parent Company
  
852,035
1,263,146

  
852,035
1,263,146

The notes on pages 22 to 38 form part of these financial statements.

Page 12


MURRAY HOLDINGS (SW) LIMITED
REGISTERED NUMBER:11118150

CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

FIXED ASSETS
  

Intangible assets
 13 
164,228
184,757

Tangible assets
 14 
5,227,607
5,340,949

  
5,391,835
5,525,706

CURRENT ASSETS
  

Stocks
 16 
15,342,477
14,799,192

Debtors: amounts falling due within one year
 17 
2,310,102
1,921,438

Cash at bank and in hand
 18 
825,384
1,213,201

  
18,477,963
17,933,831

Creditors: amounts falling due within one year
 19 
(17,464,858)
(17,267,542)

NET CURRENT ASSETS
  
 
 
1,013,105
 
 
666,289

TOTAL ASSETS LESS CURRENT LIABILITIES
  
6,404,940
6,191,995

Creditors: amounts falling due after more than one year
 20 
(1,537,499)
(1,767,918)

PROVISIONS FOR LIABILITIES
  

Deferred taxation
 22 
(114,656)
(163,327)

  
 
 
(114,656)
 
 
(163,327)

NET ASSETS
  
4,752,785
4,260,750


CAPITAL AND RESERVES
  

Called up share capital 
 23 
1
1

Merger reserve
 24 
994,183
994,183

Profit and loss account
 24 
3,758,601
3,257,689

EQUITY ATTRIBUTABLE TO OWNERS OF THE PARENT COMPANY
  
4,752,785
4,251,873

Non-controlling interests
  
-
8,877

  
4,752,785
4,260,750


Page 13


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: 





Mr K Murray
Director

Date: 8 July 2024

The notes on pages 22 to 38 form part of these financial statements.

Page 14


MURRAY HOLDINGS (SW) LIMITED
REGISTERED NUMBER:11118150

COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

FIXED ASSETS
  

Investments
 15 
1,124,999
1,124,999

  
1,124,999
1,124,999

CURRENT ASSETS
  

Debtors: amounts falling due within one year
 17 
122,010
286,268

  
122,010
286,268

Creditors: amounts falling due within one year
 19 
(122,009)
(286,267)

NET CURRENT ASSETS
  
 
 
1
 
 
1

TOTAL ASSETS LESS CURRENT LIABILITIES
  
1,125,000
1,125,000

  

  

NET ASSETS
  
1,125,000
1,125,000


CAPITAL AND RESERVES
  

Called up share capital 
 23 
1
1

Profit and loss account brought forward
  
1,124,999
1,124,999

Profit for the period
  
360,000
300,000

Other changes in the profit and loss account

  

(360,000)
(300,000)

Profit and loss account carried forward
  
1,124,999
1,124,999

  
1,125,000
1,125,000


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 





Mr K Murray
Director

Date: 8 July 2024

The notes on pages 22 to 38 form part of these financial statements.

Page 15


MURRAY HOLDINGS (SW) LIMITED


CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 DECEMBER 2023


Called up share capital
Merger reserve
Profit and loss account
Equity attributable to owners of parent Company
Non-controlling interests
Total equity

£
£
£
£
£
£

At 1 January 2023
1
994,183
3,257,689
4,251,873
8,877
4,260,750


COMPREHENSIVE INCOME FOR THE PERIOD

Profit for the period

-
-
852,035
852,035
-
852,035

Recognition of NCI reserves
-
-
8,877
8,877
(8,877)
-
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD
-
-
860,912
860,912
(8,877)
852,035


CONTRIBUTIONS BY AND DISTRIBUTIONS TO OWNERS

Dividends: Equity capital
-
-
(360,000)
(360,000)
-
(360,000)


TOTAL TRANSACTIONS WITH OWNERS
-
-
(360,000)
(360,000)
-
(360,000)


AT 31 DECEMBER 2023
1
994,183
3,758,601
4,752,785
-
4,752,785


The notes on pages 22 to 38 form part of these financial statements.

Page 16


MURRAY HOLDINGS (SW) LIMITED


CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 DECEMBER 2022


Called up share capital
Merger reserve
Profit and loss account
Equity attributable to owners of parent Company
Non-controlling interests
Total equity

£
£
£
£
£
£

At 1 January 2022
1
994,183
2,294,543
3,288,727
8,877
3,297,604


COMPREHENSIVE INCOME FOR THE YEAR

Profit for the year

-
-
1,263,146
1,263,146
-
1,263,146


CONTRIBUTIONS BY AND DISTRIBUTIONS TO OWNERS

Dividends: Equity capital
-
-
(300,000)
(300,000)
-
(300,000)


TOTAL TRANSACTIONS WITH OWNERS
-
-
(300,000)
(300,000)
-
(300,000)


AT 31 DECEMBER 2022
1
994,183
3,257,689
4,251,873
8,877
4,260,750


The notes on pages 22 to 38 form part of these financial statements.

Page 17


MURRAY HOLDINGS (SW) LIMITED


COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 DECEMBER 2023


Called up share capital
Profit and loss account
Total equity

£
£
£

At 1 January 2023
1
1,124,999
1,125,000


COMPREHENSIVE INCOME FOR THE YEAR

Profit for the period

-
360,000
360,000


CONTRIBUTIONS BY AND DISTRIBUTIONS TO OWNERS

Dividends: Equity capital
-
(360,000)
(360,000)


AT 31 DECEMBER 2023
1
1,124,999
1,125,000


The notes on pages 22 to 38 form part of these financial statements.

Page 18


MURRAY HOLDINGS (SW) LIMITED


COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 DECEMBER 2022


Called up share capital
Profit and loss account
Total equity

£
£
£

At 1 January 2022
1
1,124,999
1,125,000


COMPREHENSIVE INCOME FOR THE YEAR

Profit for the year

-
300,000
300,000


CONTRIBUTIONS BY AND DISTRIBUTIONS TO OWNERS

Dividends: Equity capital
-
(300,000)
(300,000)


TOTAL TRANSACTIONS WITH OWNERS
-
(300,000)
(300,000)


AT 31 DECEMBER 2022
1
1,124,999
1,125,000


The notes on pages 22 to 38 form part of these financial statements.

Page 19


MURRAY HOLDINGS (SW) LIMITED


CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 31 DECEMBER 2023

2023
2022
£
£

Cash flows from operating activities

Profit for the financial period
852,035
1,263,146

Adjustments for:

Amortisation of intangible assets
20,529
56,217

Depreciation of tangible assets
378,085
375,917

Loss on disposal of tangible assets
12,895
-

Interest paid
1,057,580
597,172

Taxation charge
261,110
302,435

(Increase) in stocks
(543,285)
(2,945,075)

(Increase) in debtors
(388,664)
(828,084)

(Decrease)/increase in creditors
(106,151)
1,013,796

Revaluation of property recognised in P&L
50,000
-

Corporation tax (paid)
(279,541)
(718,998)

Net cash generated from operating activities

1,314,593
(883,474)


Cash flows from investing activities

Purchase of tangible fixed assets
(327,638)
(903,135)

Net cash from investing activities

(327,638)
(903,135)

Cash flows from financing activities

Repayment of loans
(300,775)
(316,775)

Other new loans
347,689
2,006,006

Dividends paid
(360,000)
(300,000)

Interest paid
(1,057,580)
(597,172)

Net cash used in financing activities
(1,370,666)
792,059

Net (decrease) in cash and cash equivalents
(383,711)
(994,550)

Cash and cash equivalents at beginning of period
1,133,108
2,127,658

Cash and cash equivalents at the end of period
749,397
1,133,108


Cash and cash equivalents at the end of period comprise:

Cash at bank and in hand
825,384
1,213,201

Bank overdrafts
(75,987)
(80,093)

749,397
1,133,108


The notes on pages 22 to 38 form part of these financial statements.

Page 20


MURRAY HOLDINGS (SW) LIMITED


CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE PERIOD ENDED 31 DECEMBER 2023




At 1 January 2023
Cash flows
At 31 December 2023
£

£

£

Cash at bank and in hand

1,213,201

(387,817)

825,384

Bank overdrafts

(80,093)

4,106

(75,987)

Debt due after 1 year

(1,767,918)

230,419

(1,537,499)

Debt due within 1 year

(13,404,320)

(113,074)

(13,517,394)



(14,039,130)
(266,366)
(14,305,496)

The notes on pages 22 to 38 form part of these financial statements.

Page 21


MURRAY HOLDINGS (SW) LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

1.


GENERAL INFORMATION

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

 
2.1

BASIS OF PREPARATION OF FINANCIAL STATEMENTS

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

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires 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:

 
2.2

BASIS OF CONSOLIDATION

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.

 
2.3

GOING CONCERN

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.

Page 22


MURRAY HOLDINGS (SW) LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

2.ACCOUNTING POLICIES (continued)

 
2.4

REVENUE

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

Sale of goods

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

Rendering of services

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

 
2.5

OPERATING LEASES: THE GROUP AS LESSEE

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

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

The Group has taken advantage of the optional exemption available on transition to FRS 102 which allows lease incentives on leases entered into before the date of transition to the standard 01 January 2022 to continue to be charged over the period to the first market rent review rather than the term of the lease.

 
2.6

LEASED ASSETS: THE GROUP AS LESSEE

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

Page 23


MURRAY HOLDINGS (SW) LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

2.ACCOUNTING POLICIES (continued)

 
2.7

FINANCE COSTS

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

 
2.8

BORROWING COSTS

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

 
2.9

PENSIONS

DEFINED CONTRIBUTION PENSION PLAN

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

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

 
2.10

CURRENT AND DEFERRED TAXATION

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

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

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the Statement of financial position date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits;
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and
Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.

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

Page 24


MURRAY HOLDINGS (SW) LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

2.ACCOUNTING POLICIES (continued)

 
2.11

INTANGIBLE ASSETS

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.

 
2.12

TANGIBLE FIXED ASSETS

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

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method. . 

Depreciation is provided on the following basis:

Short-term leasehold property
-
10% straight line
Plant and machinery
-
10% - 40% straight line
Fixtures and fittings
-
10% straight line
Assets under construction
-
Not depreciated until the asset is in use

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.

 
2.13

REVALUATION OF TANGIBLE FIXED ASSETS

Individual freehold properties are carried at current year value at fair value at the date of the revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Revaluations are undertaken with sufficient regularity to ensure the carrying amount does not differ materially from that which would be determined using fair value at the Statement of financial position date.
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.

 
2.14

VALUATION OF INVESTMENTS

Investments in subsidiaries are measured at cost less accumulated impairment.

Page 25


MURRAY HOLDINGS (SW) LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

2.ACCOUNTING POLICIES (continued)

 
2.15

STOCKS

Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Costs includes all direct costs and an appropriate proportion of fixed and variable overheads.
At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

 
2.16

FINANCIAL INSTRUMENTS

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.

 
2.17

DEBTORS

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

 
2.18

CASH AND CASH EQUIVALENTS

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

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

 
2.19

CREDITORS

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

 
2.20

DIVIDENDS

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

Page 26


MURRAY HOLDINGS (SW) LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

3.



JUDGEMENTS IN APPLYING ACCOUNTING POLICIES AND KEY SOURCES OF ESTIMATION UNCERTAINTY

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. However the nature of estimation means that actual outcomes could differ from those estimates. The following judgements have had the most significant effect on amounts recognised in the financial statements.
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:
 
the Group is exposed to asset price risk since the transfer price from supplier to company is fixed;
the Group has a right to use the inventory in its business;
the Group is compelled to retain the inventory or is unable to return it after a fixed period of time; or
the Group is paying the manufacturer a finance charge for the deemed cost of financing inventory.


4.


TURNOVER

An analysis of turnover by class of business is as follows:


2023
2022
£
£

Sale and servicing of motor vehicles
128,515,781
112,908,825

Fuel and shop sales
2,843,842
2,621,678

131,359,623
115,530,503


All turnover arose within the United Kingdom.

Page 27


MURRAY HOLDINGS (SW) LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

5.


OTHER OPERATING INCOME

2023
2022
£
£

Other operating income
241,219
390,779

241,219
390,779



6.


OPERATING PROFIT

The operating profit is stated after charging:

2023
2022
£
£

Depreciation of tangible fixed assets
378,085
375,917

Amortisation of intangible assets, including goodwill
20,529
56,217

Operating lease rentals
357,782
409,430

Defined contribution pension cost
159,982
155,591


7.


AUDITORS' REMUNERATION

2023
2022
£
£


Fees payable to the Group's auditor and its associates for the audit of the Group's annual financial statements
7,050
6,660


FEES PAYABLE TO THE GROUP'S AUDITOR AND ITS ASSOCIATES IN RESPECT OF:


The auditing of accounts of associates of the Group pursuant to legislation
42,700
42,600

Other services relating to taxation
8,100
15,161

Page 28


MURRAY HOLDINGS (SW) LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

8.


EMPLOYEES

Staff costs were as follows:


Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£


Wages and salaries
6,619,848
6,468,558
-
-

Social security costs
686,145
690,560
-
-

Cost of defined contribution scheme
159,982
155,591
-
-

7,465,975
7,314,709
-
-


Senior Employees who have authority and responsibility for planning, directing, and controlling activities of the entity are considered to be key management personnel. Total remuneration in respect of these individuals is £173,502 (2022: £463,646). During the year the Group recategorised those considered to be key management personnel and the 2023 balance disclosed reflects this.

The average monthly number of employees, including the director, during the period was as follows:


        2023
        2022
            No.
            No.







Production staff
226
235



Administrative staff
59
57

285
292

The Company has no employees other than the directors, who did not receive any remuneration (2022: £NIL)

9.


DIRECTOR'S REMUNERATION



No emoluments were paid to the director other than dividends in the year, totalling £360,000 (2022: £300,000). 


10.


INTEREST PAYABLE AND SIMILAR EXPENSES

2023
2022
£
£


Bank interest payable
45
1,046

Other loan interest payable
1,054,463
596,126

Other interest payable
3,072
-

1,057,580
597,172

Page 29


MURRAY HOLDINGS (SW) LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

11.


TAXATION


2023
2022
£
£

CORPORATION TAX


Current tax on profits for the year
324,176
288,935

Adjustments in respect of previous periods
(14,395)
(567)


309,781
288,368


TOTAL CURRENT TAX
309,781
288,368

DEFERRED TAX


Origination and reversal of timing differences
(48,671)
14,067

TOTAL DEFERRED TAX
(48,671)
14,067


TAXATION ON PROFIT ON ORDINARY ACTIVITIES
261,110
302,435

FACTORS AFFECTING TAX CHARGE FOR THE PERIOD/YEAR

The tax assessed for the period/year is lower than (2022: lower than) the standard rate of corporation tax in the UK of 23.5% (2022: 19%). The differences are explained below:

2023
2022
£
£


Profit on ordinary activities before tax
1,113,145
1,565,581


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 23.5% (2022: 19%)
261,589
297,460

EFFECTS OF:


Capital allowances for period/year in excess of depreciation
(5,885)
2,677

Other differences leading to an increase (decrease) in the tax charge
(43,802)
(440)

Deferred tax movement
49,208
2,738

TOTAL TAX CHARGE FOR THE PERIOD/YEAR
261,110
302,435


FACTORS THAT MAY AFFECT FUTURE TAX CHARGES

There were no factors that may affect future tax charges.



Page 30


MURRAY HOLDINGS (SW) LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

12.


DIVIDENDS

2023
2022
£
£


Dividends
360,000
300,000

360,000
300,000


13.


INTANGIBLE ASSETS

Group





Goodwill
Negative goodwill
Total

£
£
£



COST


At 1 January 2023
1,189,423
(206,685)
982,738



At 31 December 2023

1,189,423
(206,685)
982,738



AMORTISATION


At 1 January 2023
1,004,666
(206,685)
797,981


Charge for the period on owned assets
20,529
-
20,529



At 31 December 2023

1,025,195
(206,685)
818,510



NET BOOK VALUE



At 31 December 2023
164,228
-
164,228



At 31 December 2022
184,757
-
184,757



Page 31


MURRAY HOLDINGS (SW) LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

14.


TANGIBLE FIXED ASSETS

Group






Freehold property
Short-term leasehold property
Plant and machinery
Fixtures and fittings
Assets under construction
Total

£
£
£
£
£
£



COST OR VALUATION


At 1 January 2023
4,285,000
1,022,241
2,279,677
888,988
-
8,475,906


Additions
-
-
301,710
-
25,928
327,638


Disposals
-
-
(16,378)
-
-
(16,378)


Revaluations
(50,000)
-
-
-
-
(50,000)



At 31 December 2023

4,235,000
1,022,241
2,565,009
888,988
25,928
8,737,166



DEPRECIATION


At 1 January 2023
-
878,200
1,555,383
701,374
-
3,134,957


Charge for the period on owned assets
-
49,085
253,334
75,666
-
378,085


Disposals
-
-
(3,483)
-
-
(3,483)



At 31 December 2023

-
927,285
1,805,234
777,040
-
3,509,559



NET BOOK VALUE



At 31 December 2023
4,235,000
94,956
759,775
111,948
25,928
5,227,607



At 31 December 2022
4,285,000
144,041
724,294
187,614
-
5,340,949

Freehold property was valued as at 31 December 2023 by an independent valuer on an open market for
existing use basis and this has resulted in one of the three properties held being revalued downwards by £50,000.
If the freehold property had not been included at valuation they would have been included under the
historical cost convention at £4,277,270.

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).

Page 32


MURRAY HOLDINGS (SW) LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

15.


FIXED ASSET INVESTMENTS

Company





Investments in subsidiary companies

£



COST OR VALUATION


At 1 January 2023
1,124,999



At 31 December 2023
1,124,999





DIRECT SUBSIDIARY UNDERTAKINGS


The following were direct subsidiary undertakings of the Company:

Name

Registered office

Principal activity

Class of shares

Holding

Murray (Plymouth) Limited
44 Millbay Road, Plymouth, Devon, PL1 3FQ
The sale and servicing of motor vehicles
Ordinary
100%
Murray Enterprises Limited
44 Millbay Road, Plymouth, Devon, PL1 3FQ
Property ownership
Ordinary
100%


INDIRECT SUBSIDIARY UNDERTAKINGS


The following were indirect subsidiary undertakings of the Company:

Name

Registered office

Principal activity

Holding

Murray Plymouth TPS LLP
44 Millbay Road, Plymouth, Devon, PL1 3FQ
Dormant
99%
Murray Plymouth TPS (Devon) Ltd
44 Millbay Road, Plymouth, Devon, PL1 3FQ
Sale of motor parts
100%
Rodgers of Plymouth Limited
Brixton Road Garage Chittleburn Hill, Brixton, Plymouth, PL8 2BL
The sale and servicing of motor vehicles
100%

Page 33


MURRAY HOLDINGS (SW) LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

16.


STOCKS

Group
Group
2023
2022
£
£

Consignment stock
3,398,684
4,431,175

Finished goods and goods for resale
11,943,793
10,368,017

15,342,477
14,799,192




Included within stock is consignment stock amounting to £3,398,684 (2022: £4,431,175) and stocks financed under other loans amounting to £9,865,067 (2022: £8,368,633).
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.


17.


DEBTORS

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£


Trade debtors
1,164,275
1,037,429
-
-

Amounts owed by group undertakings
-
-
121,920
286,178

Other debtors
710,181
521,985
90
90

Prepayments and accrued income
435,646
362,024
-
-

2,310,102
1,921,438
122,010
286,268



18.


CASH AND CASH EQUIVALENTS

Group
Group
2023
2022
£
£

Cash at bank and in hand
825,384
1,213,201

Less: bank overdrafts
(75,987)
(80,093)

749,397
1,133,108


Page 34


MURRAY HOLDINGS (SW) LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

19.


CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Bank overdrafts
75,987
80,093
-
-

Bank loans
-
70,357
-
-

Other loans
13,434,584
13,086,895
-
-

Trade creditors
2,200,047
2,270,110
-
-

Amounts owed to group undertakings
-
-
39,199
39,199

Corporation tax
96,734
73,029
-
-

Other taxation and social security
556,293
290,958
-
-

Other creditors
395,393
507,345
82,810
247,068

Accruals and deferred income
705,820
888,755
-
-

17,464,858
17,267,542
122,009
286,267


Secured loans
The Group's overdraft is secured by a fixed and floating charge over the Group's assets. The vehicle stocking loans are secured against the individual assets to which they relate.
Loans are secured against assets of the group (see note 21).


20.


CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

Group
Group
2023
2022
£
£

Bank loans
-
59,584

Other loans
1,537,499
1,708,334

1,537,499
1,767,918


Loans are all secured against assets of the group (see note 21).



Page 35


MURRAY HOLDINGS (SW) LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

21.


LOANS

Analysis of the maturity of loans is given below:


Group
Group
2023
2022
£
£

AMOUNTS FALLING DUE WITHIN ONE YEAR

Bank loans
-
70,357

Other loans
13,434,584
13,086,895


13,434,584
13,157,252

AMOUNTS FALLING DUE 1-2 YEARS

Bank loans
-
59,584

Other loans
170,833
170,833


170,833
230,417

AMOUNTS FALLING DUE 2-5 YEARS

Other loans
683,333
683,333


683,333
683,333

AMOUNTS FALLING DUE AFTER MORE THAN 5 YEARS

Other loans
683,333
854,168

683,333
854,168

14,972,083
14,925,170


There were two loans outstanding as at 31 December 2022 totalling £129,941. These have been paid off
in full in the financial year and therefore there are no bank loans outstanding at the year end.
Other loans are comprised of £1,708,333 (2022: £2,009,108) for the acquisition of Rodgers of Plymouth in 2021 and £13,594,280 (2022: £12,786,121) relating to vehicle funding. These loans are secured by a
general charge over all assets of the company.

Page 36


MURRAY HOLDINGS (SW) LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

22.


DEFERRED TAXATION


Group



2023
2022


£

£






At beginning of year
(163,327)
(149,260)


Charged to profit or loss
48,671
(14,067)



AT END OF YEAR
(114,656)
(163,327)

The provision for deferred taxation is made up as follows:

Group
Group
2023
2022
£
£

Accelerated capital allowances
(114,656)
(163,327)

(114,656)
(163,327)

23.


SHARE CAPITAL

2023
2022
£
£
ALLOTTED, CALLED UP AND FULLY PAID



1 (2022: 1) Ordinary share of £1.00
1
1


24.


RESERVES

Revaluation reserve

The revaluation reserve represents accumulated revaluation gains and losses.

Merger Reserve

This reserve includes all prior period retained profits and losses generated by the Group prior to the restructure date of 1 January 2018.

Profit and loss account

This reserve includes all current and prior period retained profits and losses generated by the Group.

Page 37


MURRAY HOLDINGS (SW) LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

25.


PENSION COMMITMENTS

The company operates a defined contributions pension scheme. The assets of the scheme are held
separately from those of the company in an independently administered fund. The pension cost charge
represents contributions payable by the company to the fund and amounted to £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.


26.


COMMITMENTS UNDER OPERATING LEASES

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


Group
Group
2023
2022
£
£

Not later than 1 year
393,504
388,931

Later than 1 year and not later than 5 years
1,075,152
1,348,650

Later than 5 years
10,000
137,500

1,478,656
1,875,081

27.


RELATED PARTY TRANSACTIONS

During the year the Group paid £Nil (2022: £39,987) over to the SIPP of a director in respect of rental income received by the company on behalf of the SIPP. At year end the amount owed from the SIPP is £Nil (2022: £Nil). 
At the end of the year a balance of £82,810 (2022: £247,068) was owed to a director in respect of their director's loan account. This balance is included in other creditors.
Total dividends paid to directors in the year were £360,000 (2022: £300,000).
During the year two close family members (2022: one close family member) of a director were employed by the company and received remuneration of £18,811 (2022: £14,583).
Key management personnel
All directors and certain senior employees who have authority and responsibility for planning, directing,
and controlling the activities of the company are considered to be key management personnel. Total
compensation in respect of these individuals is detailed in Note 8.


28.


CONTROLLING PARTY

The ultimate controlling party is Mr K Murray.

 
Page 38