REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST OCTOBER 2023 |
FOR |
RIX MOTOR COMPANY LIMITED |
REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST OCTOBER 2023 |
FOR |
RIX MOTOR COMPANY LIMITED |
RIX MOTOR COMPANY LIMITED (REGISTERED NUMBER: 01837284) |
CONTENTS OF THE FINANCIAL STATEMENTS |
for the Year Ended 31st October 2023 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 6 |
Profit and Loss Account | 9 |
Balance Sheet | 10 |
Statement of Changes in Equity | 11 |
Cash Flow Statement | 12 |
Notes to the Financial Statements | 13 |
RIX MOTOR COMPANY LIMITED |
COMPANY INFORMATION |
for the Year Ended 31st October 2023 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
100 Barbirolli Square |
Manchester |
M2 3BD |
RIX MOTOR COMPANY LIMITED (REGISTERED NUMBER: 01837284) |
STRATEGIC REPORT |
for the Year Ended 31st October 2023 |
The directors present their strategic report for the year ended 31st October 2023. |
REVIEW OF BUSINESS |
We are delighted to report a profitable period, during a year in which the country has faced many financial and cost of living challenges. The number of units sold has increased slightly to 2,609 (2022: 2,515), and although total turnover has decreased by 12% to £36m (2022: £41m), which includes revenue from finance decreasing to £1.1m (2022: £1.5m), we have succeeded in keeping our overheads from increasing heavily in a time where prices have increased exponentially. |
Our employee numbers have decreased marginally from the previous financial year end to 45 people (2022:48 people), and related salary costs have decreased accordingly to £2.2m (2022: £2.3m). |
Our stock level has increased to £9.1m (2022: £7.8m), due to stocking a higher number of units of 455 (2022: 417) in order to possess a wide variety of vehicles and continue to meet customer needs during an unpredictable period. |
We maintain our commitment to treating customers fairly and we look forward to continuing to provide excellent service over the coming years. |
PRINCIPAL RISKS AND UNCERTAINTIES |
Financial Risks |
The company's operations expose it to a limited number of financial risks, primarily credit risk and liquidity risk. |
Liquidity Risk |
The company regularly forecasts cash flow to ensure that sufficient funds are available for operational requirements. This is supplemented with appropriate banking facilities. |
POLICY ON PAYMENTS TO SUPPLIERS |
The company's supplier payment policy is to agree to terms and conditions for business transactions with suppliers. Suppliers are made aware of the company's terms and payment is made according to those terms. |
OUR PEOPLE |
The company believes that its people are a real asset to the company and the key to long term success. We continue to invest in the development of skills within the business through learning resources and training. |
The company values the involvement of its employees, and keeps them informed on issues affecting them as employees, as well as on the various factors affecting the company. |
DISABLED EMPLOYEES |
Applications for employment by disabled persons are always fully considered, bearing in mind the aptitude of the applicant concerned. In the event of employees becoming disabled every effort is made to ensure that their employment with the company continues and that appropriate and relevant training is arranged. It is the policy of the company that training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees. |
RIX MOTOR COMPANY LIMITED (REGISTERED NUMBER: 01837284) |
STRATEGIC REPORT |
for the Year Ended 31st October 2023 |
HUMAN TRAFFICKING AND ANTI-SLAVERY STATEMENT |
The company is committed to ensuring that it is free from acts of modern slavery from within both its own business and its supply chain. The company acknowledges its responsibility for implementing the requirements of the Modern Slavery Act 2015 and will ensure transparency within the organisation and with suppliers of services and goods to the organisation. |
As part of the company's due diligence process into slavery and human trafficking, the supplier approval process requires all suppliers to confirm compliance with the requirements of the Act. The company will refuse to support or deal with any business knowingly involved in slavery or human trafficking. |
The company directors and senior management shall take responsibility for enhancing this policy statement and its objectives, and will provide adequate training to ensure that, wherever possible, slavery and human trafficking is not taking place within the organisation or within its supply chains. |
The company reserves the right to conduct audits of key suppliers to endure compliance with the Group Supplier Code of Conduct. These audits may be done either by employees or by contracted, independent third parties or a combination. We expect our suppliers to respect human rights, including maintaining policies and procedures to prevent the use of child or forced labour |
ON BEHALF OF THE BOARD: |
31st July 2024 |
RIX MOTOR COMPANY LIMITED (REGISTERED NUMBER: 01837284) |
REPORT OF THE DIRECTORS |
for the Year Ended 31st October 2023 |
The directors present their report with the financial statements of the company for the year ended 31st October 2023. |
PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of used car sales. |
DIVIDENDS |
During the year the company voted dividends totalling £577,500 (2022: £770,332). |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1st November 2022 to the date of this report. |
DONATIONS |
Within the year the Company made charitable donations amounting to £10,080 (2022: £nil). |
DISCLOSURE IN THE STRATEGIC REPORT |
The company has chosen, in accordance with Section 414 C(ii) of the Companies Act 2006, and as noted in this Directors' Report, to include certain matters in its Strategic Report that would otherwise be required to disclose in this Directors' Report, specifically in respect of the review of the business, disabled employees, research and development, future developments and key risks in the business. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
RIX MOTOR COMPANY LIMITED (REGISTERED NUMBER: 01837284) |
REPORT OF THE DIRECTORS |
for the Year Ended 31st October 2023 |
AUDITORS |
The auditor, Xeinadin Audit Limited, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
RIX MOTOR COMPANY LIMITED |
Opinion |
We have audited the financial statements of Rix Motor Company Limited (the 'company') for the year ended 31st October 2023 which comprise the Profit and Loss Account, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the company's affairs as at 31st October 2023 and of its profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
RIX MOTOR COMPANY LIMITED |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page four, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so. |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
statements but compliance with which may be fundamental to the company's ability to operate or to avoid a material penalty. |
Audit response to risks identified |
Our procedures to respond to risks identified included the following: |
- | 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; |
- | enquiring of management concerning actual and potential litigation and claims; |
- | performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud; |
- | reading minutes of meetings of those charged with governance and reviewing correspondence with HMRC; and |
- | in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business. |
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members including internal specialists, and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit. |
No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity's controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK). |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
RIX MOTOR COMPANY LIMITED |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
100 Barbirolli Square |
Manchester |
M2 3BD |
RIX MOTOR COMPANY LIMITED (REGISTERED NUMBER: 01837284) |
PROFIT AND LOSS ACCOUNT |
for the Year Ended 31st October 2023 |
2023 | 2022 |
as restated |
Notes | £ | £ |
TURNOVER | 4 |
Cost of sales | ( |
) | ( |
) |
GROSS PROFIT |
Administrative expenses | ( |
) | ( |
) |
1,359,836 | 1,811,947 |
Other operating income |
OPERATING PROFIT | 6 |
Gain/loss on revaluation of investment property |
(500,705 |
) |
- |
877,131 | 1,811,947 |
Interest payable and similar expenses | 7 | ( |
) | ( |
) |
PROFIT BEFORE TAXATION |
Tax on profit | 8 | ( |
) | ( |
) |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
RIX MOTOR COMPANY LIMITED (REGISTERED NUMBER: 01837284) |
BALANCE SHEET |
31st October 2023 |
2023 | 2022 |
as restated |
Notes | £ | £ |
FIXED ASSETS |
Tangible assets | 11 |
Investments | 12 |
Investment property | 13 |
CURRENT ASSETS |
Stocks | 14 |
Debtors | 15 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 16 | ( |
) | ( |
) |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
17 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 21 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 22 | 100 | 100 |
Revaluation reserve | 23 | - | 173,855 |
Retained earnings | 23 | 5,178,887 | 5,084,732 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
RIX MOTOR COMPANY LIMITED (REGISTERED NUMBER: 01837284) |
STATEMENT OF CHANGES IN EQUITY |
for the Year Ended 31st October 2023 |
Called up |
share | Retained | Revaluation | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1st November 2021 |
Profit for the year | - | 1,447,216 | - | 1,447,216 |
Total comprehensive income | - |
Dividends | - | ( |
) | - | ( |
) |
Transfer between reserves | - | 101,849 | (101,849 | ) | - |
Balance at 31st October 2022 | 100 | 5,084,732 | 173,855 | 5,258,687 |
Profit for the year | - | 497,800 | - | 497,800 |
Total comprehensive income | - |
Dividends | - | ( |
) | - | ( |
) |
Transfer between reserves | - | 173,855 | (173,855 | ) | - |
Balance at 31st October 2023 | - |
RIX MOTOR COMPANY LIMITED (REGISTERED NUMBER: 01837284) |
CASH FLOW STATEMENT |
for the Year Ended 31st October 2023 |
2023 | 2022 |
as restated |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 26 | ( |
) |
Interest paid | ( |
) | ( |
) |
Interest element of hire purchase payments paid |
( |
) |
( |
) |
Tax paid | ( |
) | ( |
) |
Net cash from operating activities | ( |
) |
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Purchase of fixed asset investments | - | (130,875 | ) |
Purchase of investment property | ( |
) |
Sale of tangible fixed assets |
Net cash from investing activities | ( |
) | ( |
) |
Cash flows from financing activities |
New loans in year |
Loan repayments in year | ( |
) | ( |
) |
Stocking loan movement | 695,091 | (1,058,805 | ) |
Capital repayments in year | ( |
) | ( |
) |
Amount introduced by directors | 1,032,156 | 194,515 |
Amount withdrawn by directors | (434,713 | ) | (456,015 | ) |
New HP in year |
Equity dividends paid | ( |
) | ( |
) |
Net cash from financing activities | ( |
) |
Decrease in cash and cash equivalents | ( |
) | ( |
) |
Cash and cash equivalents at beginning of year |
27 |
(820,173 |
) |
(762,532 |
) |
Cash and cash equivalents at end of year |
27 |
( |
) |
( |
) |
RIX MOTOR COMPANY LIMITED (REGISTERED NUMBER: 01837284) |
NOTES TO THE FINANCIAL STATEMENTS |
for the Year Ended 31st October 2023 |
1. | STATUTORY INFORMATION |
Rix Motor Company Limited is a private company limited by share capital, incorporated in England and Wales, registration number 01837284. The address of the registered office and principal place of business is Hawleys Lane, Warrington, Cheshire, WA2 8JP. |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable and represents the amount receivable for goods supplied or services rendered, net of discounts and rebates allowed by the Company and value added taxes.The Company recognises revenue for each contractual performance obligation when the amount of revenue can be reliably measured; when it is probable that future economic benefits will flow o the entity; and when certain criteria have been met, specifically when the contracted performance obligation has been satisfied. This approach applies for each of the Company's activities, as described below. |
Revenue from the sale of vehicles represents the amount of the consideration payable by the customer and is recognised on the date of delivery to the customer, being the point at which the customer takes control of the vehicle and legal title and risks and rewards of ownership are transferred. The price is agreed prior to delivery and consideration can be in the form of cash, part-exchange vehicle, third-party financing or a combination of these. The vehicle price includes a six month warranty. Extended warranties are available to purchase, with attributable revenue relating to this service obligation being separately identified and recognised when the performance obligation is fulfilled. |
Customers purchasing vehicles may enter into a contract with the Company's financing partners, for which the Company received a commission. This commission revenue is recognised at the date of delivery to the customer, net of a reserve for estimated finance contract cancellations which is calculated based on historical data. |
Tangible fixed assets |
Tangible fixed assets, with the exception of freehold property, are measured using the cost model less accumulated depreciation and accumulated impairment losses. |
Freehold land and buildings are measured using the revaluation model. These assets are stated at fair value at the date of the latest revaluation less subsequent accumulated depreciation, and any impairment losses, where applicable. |
Valuations are made on an annual basis so that the carrying amounts of these assets does not differ materially from their fair value. |
Depreciation on fixed assets is charged to the profit and loss so as to write off their value, over their estimated useful lives, using the following methods: |
Freehold property | 2% on cost |
Fixtures and fittings | 15% on reducing balance |
Leasehold Property term of the lease |
Motor vehicles | 25% on reducing balance |
At each balance sheet date, the Company reviews the carrying amounts of its fixed assets to determine whether there is any indication that any items have suffered an impairment loss. If any such indication exists, the recoverable amount of an asset is estimated in order to determine the extent of the impairment loss, if any. Where it is not possible to estimate the recoverable amount of the asset, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs. |
If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. Impairment losses are recognised as an expense immediately. |
RIX MOTOR COMPANY LIMITED (REGISTERED NUMBER: 01837284) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31st October 2023 |
2. | ACCOUNTING POLICIES - continued |
Investment property |
Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss. |
Stocks |
Stocks are stated at the lower of invoiced cost and net realisable value on an individual asset basis. Net realisable value is the price at which stocks can be sold in the normal course of business after allowing for the costs of realisation. Where necessary, provisions are made for impairments arising from obsolete, slow moving and defective stocks. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the profit and loss account, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. Deferred tax for the year is recognised in the profit and loss, except where they relate to items that are recognised in other comprehensive income or directly in equity, in which case, the current and deferred tax is also recognised in other comprehensive income or directly in equity respectively. |
Deferred taxation |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. This is in respect of Accelerated Capital Allowances and fair value of freehold and investment property. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Trade and other debtors |
Trade and other debtors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest method, less impairment losses for bad and doubtful debts except where the effect of discounting would be immaterial. In such cases, the receivables are stated at cost less impairment losses for bad and doubtful debts. |
Trade and other creditors |
Trade and other creditors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest method unless the effect of discounting would be immaterial, in which case they are stated at cost. |
Cash and cash equivalents |
Cash and cash equivalents comprise cash at bank and in hand. Any bank overdrafts are shown within current liabilities. |
RIX MOTOR COMPANY LIMITED (REGISTERED NUMBER: 01837284) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31st October 2023 |
2. | ACCOUNTING POLICIES - continued |
Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Assets that are held by the Company under leases which transfer to the Company substantially all the risks and rewards of ownership are classified as being held under finance leases. Leases which do not transfer substantially all the risks and rewards of ownership to the company are classified as operating leases. |
Assets held under finance leases are initially recognised as assets of the Company at their fair value at the inception of the lease or, if lower, at the present value of the minimum lease payments. The corresponding liability to the lessor is included in the statements of financial position as a finance lease obligation. Lease payments are apportioned between finance expenses and reduction of the lease obligation so as to achieve a constant rate of interest on the remaining balance of the liability, finance expenses are recognised immediately in profit or loss, unless they are directly attributable to qualifying assets, in which case they are capitalised in accordance with the Company's policy on borrowing costs. |
Operating lease payments are recognised as an expense on straight-line basis over the lease term, except where another systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed. |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
The obligations for contributions to defined contribution scheme are recognised as an expense as incurred. The assets of the scheme are held separately from those of the Company in an independent administered fund. |
Provisions |
The Company accounts for provisions in accordance with FRS 102. Provisions are recognised when the Company has a present obligation as a result of a past event, it is probable that the Company will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. |
The amount recognised as a provision is the best estimate of consideration required to settle the present obligation at the end fo the reporting period, taking into account the risks and uncertainties surrounding the obligation. |
RIX MOTOR COMPANY LIMITED (REGISTERED NUMBER: 01837284) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31st October 2023 |
3. | CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY |
In the application of the Company's accounting policies above, management is required to make judgements, estimates and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. |
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period. |
The following are the Company's key accounting estimates and assumptions: |
Investment properties are valued at fair value, with changes in fair value beng recognised in the Profit and Loss Account. The valuation method is based on a discounted cash flow model based on comparable market data. The determined fair value is sensitive to the estimated yield and comparability: |
Vehicles held for resale are valued at the lower of cost and net realisable value. The calculation of net realisable value requires an estimate of the expected selling price of each vehicle. This estimate is made using a combination of historical data of the Company and independent market data. Independent market data provides a view to recent market activity for vehicles with similar attributes to those held in stock. This, combined with recent sales data of the Company, is used to estimate the expected selling prices. At each reporting period the Company recognises any necessary adjustments through cost of sales; |
Finance commissions are subject to claw back dependent upon the agreements made with the finance providers. When calculating the provision management utilises the historical claw back profile to determine the provision required. |
4. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the company. |
An analysis of turnover by class of business is given below: |
2023 | 2022 |
as restated |
£ | £ |
An analysis of turnover by geographical market is given below: |
2023 | 2022 |
as restated |
£ | £ |
United Kingdom |
RIX MOTOR COMPANY LIMITED (REGISTERED NUMBER: 01837284) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31st October 2023 |
5. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
as restated |
£ | £ |
Wages and salaries |
Other pension costs |
The average number of employees during the year was as follows: |
2023 | 2022 |
as restated |
Administration | 12 | 10 |
Sales | 13 | 14 |
Support services | 23 | 24 |
2023 | 2022 |
as restated |
£ | £ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes |
6. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2023 | 2022 |
as restated |
£ | £ |
Hire of plant and machinery |
Depreciation - owned assets |
Depreciation - assets on hire purchase contracts |
Profit on disposal of fixed assets | ( |
) | ( |
) |
Auditors' remuneration |
7. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
as restated |
£ | £ |
Bank interest |
Bank loan interest |
Hire purchase |
RIX MOTOR COMPANY LIMITED (REGISTERED NUMBER: 01837284) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31st October 2023 |
8. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2023 | 2022 |
as restated |
£ | £ |
Current tax: |
UK corporation tax |
Corporation tax prior years | (35,211 | ) | (59,268 | ) |
Total current tax |
Deferred tax | ( |
) | ( |
) |
Tax on profit |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
2023 | 2022 |
as restated |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of |
Effects of: |
Expenses not deductible for tax purposes |
Depreciation in excess of capital allowances |
Adjustments to tax charge in respect of previous periods | ( |
) | ( |
) |
Change in Rate (Deferred Tax) | 1,765 | (2,204 | ) |
Superdeductions | (3,179 | ) | - |
Gain/Loss on reval of investment prop | 112,748 | - |
Adjustments to deferred taxation in respect of prior year | (57,952 | ) | - |
Other | 3,104 | - |
Total tax charge | 191,448 | 272,125 |
9. | DIVIDENDS |
2023 | 2022 |
as restated |
£ | £ |
Ordinary A shares of £1.00 each |
Interim |
Ordinary B shares of £1.00 each |
Interim |
Ordinary C shares of £1.00 each |
Interim |
Ordinary D shares of £1.00 each |
Interim |
RIX MOTOR COMPANY LIMITED (REGISTERED NUMBER: 01837284) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31st October 2023 |
10. | PRIOR YEAR ADJUSTMENT |
During the year the directors reviewed the accounting policies disclosed in the financial statements to ensure that they correctly reflected the policies adopted. |
In addition they reviewed the allocation of costs and reallocated certain administrative expenses to cost of sales to more correctly reflect the nature of those costs. The comparative figures have been restated on a comparable basis. The impact has been to reduce the comparative figure for administrative expenses by £1,010,304 and increase cost of sales by the same amount. |
11. | TANGIBLE FIXED ASSETS |
Fixtures |
Freehold | Leasehold | and | Motor |
property | property | fittings | vehicles | Totals |
£ | £ | £ | £ | £ |
COST OR VALUATION |
At 1st November 2022 |
Additions |
Disposals | ( |
) | ( |
) |
At 31st October 2023 |
DEPRECIATION |
At 1st November 2022 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
At 31st October 2023 |
NET BOOK VALUE |
At 31st October 2023 |
At 31st October 2022 |
Cost or valuation at 31st October 2023 is represented by: |
Fixtures |
Freehold | Leasehold | and |
property | property | fittings | Totals |
£ | £ | £ | £ |
Valuation in 2003 | 172,483 | - | - | 172,483 |
Valuation in 2007 | 330,473 | - | - | 330,473 |
Cost | 1,143,169 | 829,458 | 1,258,465 | 3,231,092 |
1,646,125 | 829,458 | 1,258,465 | 3,734,048 |
RIX MOTOR COMPANY LIMITED (REGISTERED NUMBER: 01837284) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31st October 2023 |
11. | TANGIBLE FIXED ASSETS - continued |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Motor |
vehicles |
£ |
COST OR VALUATION |
At 1st November 2022 |
Disposals | ( |
) |
At 31st October 2023 |
DEPRECIATION |
At 1st November 2022 |
Eliminated on disposal | ( |
) |
At 31st October 2023 |
NET BOOK VALUE |
At 31st October 2023 |
At 31st October 2022 |
12. | FIXED ASSET INVESTMENTS |
2023 | 2022 |
as restated |
£ | £ |
Other investments not loans |
Additional information is as follows: |
Listed |
investments |
£ |
COST OR VALUATION |
At 1st November 2022 |
and 31st October 2023 |
NET BOOK VALUE |
At 31st October 2023 |
At 31st October 2022 |
Cost or valuation at 31st October 2023 is represented by: |
Listed |
investments |
£ |
Valuation in 2020 | (26,550 | ) |
Cost | 63,810 |
37,260 |
Investments (neither listed nor unlisted) were as follows: |
2023 | 2022 |
as restated |
£ | £ |
RIX MOTOR COMPANY LIMITED (REGISTERED NUMBER: 01837284) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31st October 2023 |
Paintings | 130,875 | 130,875 |
13. | INVESTMENT PROPERTY |
Total |
£ |
FAIR VALUE |
At 1st November 2022 |
Revaluations | (500,705 | ) |
At 31st October 2023 |
NET BOOK VALUE |
At 31st October 2023 |
At 31st October 2022 |
Fair value at 31st October 2023 is represented by: |
£ |
Valuation in 2019 | 29,628 |
Valuation in 2021 | (175,588 | ) |
Valuation in 2023 | (500,705 | ) |
Cost | 3,646,665 |
3,000,000 |
The investment property was revalued in October 2023 by independent professionally qualified valuers. The directors do not believe that there has been any significant change since that date. |
14. | STOCKS |
2023 | 2022 |
as restated |
£ | £ |
Stocks |
15. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
as restated |
£ | £ |
Trade debtors |
Other debtors |
Employee loans | 600 | 9,150 |
Directors' current accounts | - | 456,015 |
Prepayments |
RIX MOTOR COMPANY LIMITED (REGISTERED NUMBER: 01837284) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31st October 2023 |
16. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
as restated |
£ | £ |
Bank loans and overdrafts (see note 18) |
Hire purchase contracts (see note 19) |
Trade creditors |
Tax |
Social security and other taxes |
Net wages | 27,768 | 31,052 |
VAT | 116,934 | 224,312 |
Other creditors |
Finance stock plan | 5,531,624 | 4,836,533 |
Directors' current accounts | 141,428 | - |
Accruals and deferred income |
Accrued expenses |
17. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2023 | 2022 |
as restated |
£ | £ |
Bank loans (see note 18) |
Hire purchase contracts (see note 19) |
18. | LOANS |
An analysis of the maturity of loans is given below: |
2023 | 2022 |
as restated |
£ | £ |
Amounts falling due within one year or on demand: |
Bank overdrafts |
Bank loans |
Amounts falling due between one and two years: |
Bank loans - 1-2 years |
Amounts falling due between two and five years: |
Bank loans - 2-5 years |
Amounts falling due in more than five years: |
Repayable by instalments |
Bank loans more 5 yr by instal | 1,043,438 | 918,368 |
RIX MOTOR COMPANY LIMITED (REGISTERED NUMBER: 01837284) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31st October 2023 |
19. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Hire purchase contracts |
2023 | 2022 |
as restated |
£ | £ |
Net obligations repayable: |
Within one year |
Between one and five years |
Non-cancellable | operating leases |
2023 | 2022 |
as restated |
£ | £ |
Within one year |
Between one and five years |
In more than five years |
20. | SECURED DEBTS |
The following secured debts are included within creditors: |
2023 | 2022 |
as restated |
£ | £ |
Bank overdrafts |
Bank loans |
Hire purchase contracts | 225,723 | 84,581 |
Finance stock plan | 5,531,624 | 4,836,533 |
The bank hold a fixed charges over the Company's freehold and investment properties in relation to bank loans and overdrafts. |
The finance stock plan is secured on specific vehicles in stock. |
Obligations under finance leases and hire purchase contracts are secured against the assets acquired. |
21. | PROVISIONS FOR LIABILITIES |
2023 | 2022 |
as restated |
£ | £ |
Deferred tax |
Accelerated capital allowances |
Revaluation of fixed assets | - | 57,952 |
186,571 | 226,744 |
RIX MOTOR COMPANY LIMITED (REGISTERED NUMBER: 01837284) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31st October 2023 |
2023 | 2022 |
as restated |
£ | £ |
Other provisions |
Warranty provision | 82,508 | 241,399 |
Finance commission rebates | 301,706 | 335,142 |
384,214 | 576,541 |
Aggregate amounts | 570,785 | 803,285 |
Deferred | Other |
tax | provisions |
£ | £ |
Balance at 1st November 2022 |
Credit to Profit and Loss Account during year | ( |
) |
Increase in ACAs | 17,779 | - |
Reduction on revaluation of FA | (57,952 | ) | - |
Balance at 31st October 2023 |
Finance commission provision |
The company provides for finance commission claw-backs which occur in the event that a client defaults on their finance agreements. In this event, any commissions paid to the entity from the finance company with respect to the individual who has defaulted, must be repaid to the finance company. The provision reflects the expected claw back liability at the reporting date. |
Warranty provision |
The company provides for vehicles sold under warranty that may be returned due to any defects within six months of purchase.The amounts recognised in the provision relates to repair and maintenance costs in order to fix any defects. |
22. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | as restated |
£ | £ |
Ordinary A | £1.00 | 51 | 51 |
Ordinary B | £1.00 | 24 | 24 |
Ordinary C | £1.00 | 10 | 10 |
Ordinary D | £1.00 | 10 | 10 |
Ordinary E | £1.00 | 5 | 5 |
100 | 100 |
RIX MOTOR COMPANY LIMITED (REGISTERED NUMBER: 01837284) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31st October 2023 |
23. | RESERVES |
Retained | Revaluation |
earnings | reserve | Totals |
£ | £ | £ |
At 1st November 2022 | 5,258,587 |
Profit for the year |
Dividends | ( |
) | ( |
) |
Transfer between reserves | 173,855 | (173,855 | ) | - |
At 31st October 2023 | 5,178,887 |
24. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
During the year the Company has advanced funds to Mr R Rix by way of two separate loans. |
At the reporting date Mr R Rix owed the Company £nil (2022: £456,015) in respect of the first loan. The maximum amount outstanding on this loan was £532,777. |
Subsequently the company made separate advances to Mr R Rix. These amounts have been repaid prior to the reporting date.The maximum amount outstanding was £17,417. |
25. | RELATED PARTY DISCLOSURES |
During the year, total dividends of £577,500 (2022 - £770,332) were paid to the directors . |
During the year the company made purchases from the directors of £141,815 (2022: £915,141). At the reporting date £141,428 (2022: £nil) was owed by the company to the directors. |
During the year the company made purchases from a company owned by close family members of the directors amounting to £423,309 (2022: £256,991) and sales of £411,885 (2022: £404,288). At the reporting date £15,000 (2022: £39,300) was owed by the company. |
During the year the company received £18,000 (2022: £nil) in rental income, at market rent, relating to a property owned by the company and rented to a director. |
26. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2023 | 2022 |
as restated |
£ | £ |
Profit before taxation |
Depreciation charges |
Profit on disposal of fixed assets | ( |
) | ( |
) |
Loss on revaluation of fixed assets | 500,705 | - |
(Decrease)/increase in provisions | (192,327 | ) | (137,460 | ) |
Finance costs | 187,883 | 92,606 |
1,336,760 | 1,822,087 |
(Increase)/decrease in stocks | ( |
) |
Increase in trade and other debtors | ( |
) | ( |
) |
Increase/(decrease) in trade and other creditors | ( |
) |
Cash generated from operations | ( |
) |
RIX MOTOR COMPANY LIMITED (REGISTERED NUMBER: 01837284) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31st October 2023 |
27. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31st October 2023 |
31/10/23 | 1/11/22 |
£ | £ |
Cash and cash equivalents | 254 | 1,015 |
Bank overdrafts | ( |
) | ( |
) |
(983,497 | ) | (820,173 | ) |
Year ended 31st October 2022 |
31/10/22 | 1/11/21 |
as restated |
£ | £ |
Cash and cash equivalents | 1,015 | 4 |
Bank overdrafts | ( |
) | ( |
) |
(820,173 | ) | (762,532 | ) |
28. | ANALYSIS OF CHANGES IN NET DEBT |
At 1/11/22 | Cash flow | At 31/10/23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 1,015 | (761 | ) | 254 |
Bank overdrafts | (821,188 | ) | (162,563 | ) | (983,751 | ) |
(820,173 | ) | ( |
) | (983,497 | ) |
Debt |
Finance leases | (84,581 | ) | (141,142 | ) | (225,723 | ) |
Debts falling due within 1 year | (143,183 | ) | 43,320 | (99,863 | ) |
Debts falling due after 1 year | (1,478,076 | ) | 59,354 | (1,418,722 | ) |
(1,705,840 | ) | (38,468 | ) | (1,744,308 | ) |
Total | (2,526,013 | ) | (201,792 | ) | (2,727,805 | ) |