IRIS Accounts Production v24.2.0.383 01339144 Board of Directors 1.1.23 31.12.23 31.12.23 the recovery and transportation of vehicles. true false true true false false false true false Ordinary 1.00000 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REGISTERED NUMBER: 01339144 (England and Wales)















STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

FOR

COWAN RECOVERY LIMITED

COWAN RECOVERY LIMITED (REGISTERED NUMBER: 01339144)






CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023




Page

Company Information 1

Strategic Report 2

Report of the Directors 4

Report of the Independent Auditors 6

Statement of Comprehensive Income 9

Statement of Financial Position 10

Statement of Changes in Equity 11

Statement of Cash Flows 12

Notes to the Statement of Cash Flows 13

Notes to the Financial Statements 15


COWAN RECOVERY LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31 DECEMBER 2023







DIRECTORS: J A Brice
S Willers
D Perry





SECRETARY: S Willers





REGISTERED OFFICE: Church View Chambers
38 Market Square
Toddington
Bedfordshire
LU5 6BS





REGISTERED NUMBER: 01339144 (England and Wales)





AUDITORS: Landers Accountants Ltd
Church View Chambers
38 Market Square
Toddington
Bedfordshire
LU5 6BS

COWAN RECOVERY LIMITED (REGISTERED NUMBER: 01339144)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

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

REVIEW OF BUSINESS
The principal activity of the company in the year under review was that of the recovery and transportation of vehicles.

Results and performance
The results of the company for the year, as set out on the following pages, show a profit on ordinary activities before tax of £635,498 (2022: £179,624) and shareholders’ funds of £3,457,089 (2022: £3,055,978). The performance of the company during 2023 has continued to produce encouraging results amidst challenging circumstances.

In our opinion the key financial performance indicators are sales growth, gross profit margin and net profit margin. These are as follows for the last three years.

Sales Gross Net
Growth Profit Margin Profit Margin
% % %
2023 20.1 28.9 2.6
2022 29.7 28.3 0.9
2021 16.0 31.3 0.2


PRINCIPAL RISKS AND UNCERTAINTIES
Our principal risks (and responses) are:

- the price of fuel, both from an operational perspective and motoring activity in general which tends to decrease with increased fuel prices (improved loading efficiency and plant acquisition)
- the cost of finance increasing (careful modelling of useful lives of assets)
- not achieving the highest levels of customer service (constant monitoring against customer expectations)

BUSINESS ENVIRONMENT
The market for motor car recovery services is at a mature stage in its development with recent years seeing stagnation in the number of consumers with membership of the recovery services provided by the large motoring clubs and organisations. Such a trend, coupled with the impact of the recent improvements to vehicle security and safety, and technological advances in traffic management on highways, has had a negative impact on revenues for this area.

These conditions have stimulated competition between companies, and have encouraged innovation into new business niches. While price is a factor for all players in the market, having a clear focus on reducing costs and increasing reach are of paramount importance for all those in the market. The internet is currently playing a major role in achieving both aims. Promotional expenditure is up on recent years with the increased use of direct mail and the development of online presence along with more high profile sponsorship which is helping to better target new customers.


COWAN RECOVERY LIMITED (REGISTERED NUMBER: 01339144)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

STRATEGY
2023 began strongly with a reasonable winter allowing rescue recovery growth across all sectors, with storage being the standout. A huge push to increase staffing levels and customer care within the 24hr control centre was implemented. The transport operation started the year slightly slower but remained on forecast, with the re-adjustment of workflow combining several specialist logistics departments under a new management team.

A change in directorship caused some work adjustment in the second quarter, and although turnover increased, profit margins reduced. This highlighted some operational inefficiencies, with a lack of equipment coming through as manufacturers were still struggling with delays in orders, causing our own delivery times to be extended.

As we moved into the second half of the year, it was evident that all sectors were picking up simultaneously with sales up 20% on the previous quarter. A short-term contract and a notable increase in repatriation services gave us one of our strongest quarters on record.

As we moved into the final quarter of the year, operational inefficiencies (due to continued lack of equipment) combined with a prolonged European season, put real pressure across all areas. This was exacerbated at the end of the year, by a downturn of work across all areas, combined with an unusually mild run of weather leading up to Christmas. This left a bitter taste in the mouth to complete an otherwise profitable year.

DEVELOPMENTS SINCE YEAR END
The board are resolved to find better ways of ways of reacting to certain lower volume work periods and have implemented specific remedial strategies in early 2024.

ON BEHALF OF THE BOARD:





J A Brice - Director


29 July 2024

COWAN RECOVERY LIMITED (REGISTERED NUMBER: 01339144)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 DECEMBER 2023

The directors present their report with the financial statements of the company for the year ended 31 December 2023.

DIVIDENDS
The total distribution of dividends for the year ended 31 December 2023 will be £ 17,962 .

FUTURE DEVELOPMENTS
The business will continue to closely monitor its current operations and will look to further strengthen its resources in these new business lines, at the same time we will carry on with the reshaping of the rescue recovery section to allow us to stay competitive in this ever-changing sector. The development of new online products has allowed a whole new client base to be created.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 January 2023 to the date of this report.

J A Brice
S Willers
D Perry

Other changes in directors holding office are as follows:

J A Miles-Ogden - resigned 22 January 2023

POLITICAL DONATIONS AND EXPENDITURE
There were no political donations made or political expenditure incurred during the 2023 financial year (2022: £Nil).

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.

COWAN RECOVERY LIMITED (REGISTERED NUMBER: 01339144)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 DECEMBER 2023


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 ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS
The auditors, Landers Accountants Ltd, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





J A Brice - Director


29 July 2024

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
COWAN RECOVERY LIMITED

Opinion
We have audited the financial statements of Cowan Recovery Limited (the 'company') for the year ended 31 December 2023 which comprise the Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and Notes to the Statement of Cash Flows, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
-give a true and fair view of the state of the company's affairs as at 31 December 2023 and of its profit for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

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

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

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

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

Other information
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
COWAN RECOVERY LIMITED


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.

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:

- Results of our enquiries of management about their own identification and assessment of the risks of irregularities;
- identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of noncompliance;
- 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.

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
COWAN RECOVERY 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.




Robert Brown (Senior Statutory Auditor)
for and on behalf of Landers Accountants Ltd
Church View Chambers
38 Market Square
Toddington
Bedfordshire
LU5 6BS

29 July 2024

COWAN RECOVERY LIMITED (REGISTERED NUMBER: 01339144)

STATEMENT OF COMPREHENSIVE
INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023

31.12.23 31.12.22
Notes £    £   

REVENUE 3 24,467,330 20,377,922

Cost of sales 17,389,520 14,610,790
GROSS PROFIT 7,077,810 5,767,132

Administrative expenses 6,286,685 5,487,143
791,125 279,989

Other operating income 4 1,043 33,448
OPERATING PROFIT 6 792,168 313,437

Interest receivable and similar income 785 -
792,953 313,437

Interest payable and similar expenses 7 157,455 133,813
PROFIT BEFORE TAXATION 635,498 179,624

Tax on profit 8 216,425 276,915
PROFIT/(LOSS) FOR THE
FINANCIAL YEAR

419,073

(97,291

)

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE
INCOME FOR THE YEAR

419,073

(97,291

)

COWAN RECOVERY LIMITED (REGISTERED NUMBER: 01339144)

STATEMENT OF FINANCIAL POSITION
31 DECEMBER 2023

31.12.23 31.12.22
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 10 - 36,750
Property, plant and equipment 11 6,604,980 6,166,882
6,604,980 6,203,632

CURRENT ASSETS
Inventories 12 63,771 53,890
Debtors 13 4,331,225 4,245,746
Cash at bank 276,306 159,854
4,671,302 4,459,490
CREDITORS
Amounts falling due within one year 14 4,903,219 5,345,029
NET CURRENT LIABILITIES (231,917 ) (885,539 )
TOTAL ASSETS LESS CURRENT
LIABILITIES

6,373,063

5,318,093

CREDITORS
Amounts falling due after more than one
year

15

(1,654,621

)

(1,217,187

)

PROVISIONS FOR LIABILITIES 19 (1,261,353 ) (1,044,928 )
NET ASSETS 3,457,089 3,055,978

CAPITAL AND RESERVES
Called up share capital 20 113 113
Share premium 21 117 117
Capital redemption reserve 21 42,000 42,000
Retained earnings 21 3,414,859 3,013,748
SHAREHOLDERS' FUNDS 3,457,089 3,055,978

The financial statements were approved and authorised for issue by the Board of Directors and authorised for issue on 29 July 2024 and were signed on its behalf by:





J A Brice - Director


COWAN RECOVERY LIMITED (REGISTERED NUMBER: 01339144)

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023

Called up Capital
share Retained Share redemption Total
capital earnings premium reserve equity
£    £    £    £    £   
Balance at 1 January 2022 113 3,111,039 117 42,000 3,153,269

Changes in equity
Total comprehensive income - (97,291 ) - - (97,291 )
Balance at 31 December 2022 113 3,013,748 117 42,000 3,055,978

Changes in equity
Dividends - (17,962 ) - - (17,962 )
Total comprehensive income - 419,073 - - 419,073
Balance at 31 December 2023 113 3,414,859 117 42,000 3,457,089

COWAN RECOVERY LIMITED (REGISTERED NUMBER: 01339144)

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023

31.12.23 31.12.22
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 1,551,573 862,039
Interest paid (35,315 ) (27,943 )
Interest element of hire purchase and
finance lease rental payments paid

(122,140

)

(105,870

)
Tax paid - (41,063 )
Net cash from operating activities 1,394,118 687,163

Cash flows from investing activities
Purchase of tangible fixed assets (1,846,239 ) (1,011,542 )
Sale of tangible fixed assets 308,751 384,068
Interest received 785 -
Net cash from investing activities (1,536,703 ) (627,474 )

Cash flows from financing activities
Loan repayments in year (189,128 ) (190,942 )
Net receipts/(payments) on financing 463,411 (234,893 )
Equity dividends paid (17,962 ) -
Net cash from financing activities 256,321 (425,835 )

Increase/(decrease) in cash and cash equivalents 113,736 (366,146 )
Cash and cash equivalents at
beginning of year

2

(1,566,278

)

(1,200,132

)

Cash and cash equivalents at end of
year

2

(1,452,542

)

(1,566,278

)

COWAN RECOVERY LIMITED (REGISTERED NUMBER: 01339144)

NOTES TO THE STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023

1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS
31.12.23 31.12.22
£    £   
Profit before taxation 635,498 179,624
Depreciation charges 1,151,865 1,121,528
Profit on disposal of fixed assets (15,725 ) (9,582 )
Finance costs 157,455 133,813
Finance income (785 ) -
1,928,308 1,425,383
(Increase)/decrease in inventories (9,881 ) 15,530
Increase in trade and other debtors (85,479 ) (1,361,637 )
(Decrease)/increase in trade and other creditors (281,375 ) 782,763
Cash generated from operations 1,551,573 862,039

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 31 December 2023
31.12.23 1.1.23
£    £   
Cash and cash equivalents 276,306 159,854
Bank overdrafts (1,728,848 ) (1,726,132 )
(1,452,542 ) (1,566,278 )
Year ended 31 December 2022
31.12.22 1.1.22
£    £   
Cash and cash equivalents 159,854 384,113
Bank overdrafts (1,726,132 ) (1,584,245 )
(1,566,278 ) (1,200,132 )


COWAN RECOVERY LIMITED (REGISTERED NUMBER: 01339144)

NOTES TO THE STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023

3. ANALYSIS OF CHANGES IN NET DEBT

At 1.1.23 Cash flow At 31.12.23
£    £    £   
Net cash
Cash at bank 159,854 116,452 276,306
Bank overdrafts (1,726,132 ) (2,716 ) (1,728,848 )
(1,566,278 ) 113,736 (1,452,542 )
Debt
Hire purchase and finance leases (1,647,406 ) (463,411 ) (2,110,817 )
Debts falling due within 1 year (192,640 ) (4,173 ) (196,813 )
Debts falling due after 1 year (371,479 ) 190,913 (180,566 )
(2,211,525 ) (276,671 ) (2,488,196 )
Total (3,777,803 ) (162,935 ) (3,940,738 )

COWAN RECOVERY LIMITED (REGISTERED NUMBER: 01339144)

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

1. COMPANY INFORMATION

Cowan Recovery Limited is a private company, limited by shares, registered in England and Wales. Its registered office is Church View Chambers, 38 Market Square, Toddington, Dunstable, Bedfordshire, LU5 6BS.

Its principal place of business is Newport Pagnell, Buckinghamshire, MK16 8YR.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention and on a going concern basis.

The presentation currency is £ sterling.

Turnover
Revenue is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Goodwill
Goodwill, being the amount paid in connection with the acquisition of a business in 2021, is being amortised evenly over its useful life to the end of 2023.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.
Improvements to property - over the term of the lease
Plant and machinery - at variable rates on reducing balance
Fixtures and fittings - 20% on reducing balance
Motor vehicles - 25% on reducing balance

Fixed assets are initially recorded at cost.

The assets are carried at cost less accumulated depreciation and impairment.

Assets are removed from the statement of financial position on disposal or when it is withdrawn from use and no future economic benefits are expected from its disposal.

Inventories
Inventories are valued at the lower of cost and selling price less cost to sell. Cost is calculated on a first in, first out basis and includes all costs to purchase, and other costs incurred in bringing the inventories to their present location and condition.

When the inventory's market value drops below its book value on the balance sheet an impairment correction is undertaken.


COWAN RECOVERY LIMITED (REGISTERED NUMBER: 01339144)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

2. ACCOUNTING POLICIES - continued
Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that that have been enacted or substantively enacted by the statement of financial position date.

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the statement of financial position date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Leases
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged against profits on a straight line basis over the period of the lease.

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.

COWAN RECOVERY LIMITED (REGISTERED NUMBER: 01339144)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

2. ACCOUNTING POLICIES - continued

Invoice discounting
Amounts due in respect of invoice discounting are included within current liabilities. The company can use this facility to draw down a percentage of the value of certain sales invoices. The management and collection of trade debtors remains with the company.

Financial instruments
Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as either financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

3. REVENUE

The revenue and profit before taxation are attributable to the one principal activity of the company.

An analysis of revenue by geographical market is given below:

31.12.23 31.12.22
£    £   
United Kingdom 21,761,536 17,737,450
Europe 2,705,794 2,640,472
24,467,330 20,377,922

4. OTHER OPERATING INCOME
31.12.23 31.12.22
£    £   
Sundry receipts 1,043 33,448

5. EMPLOYEES AND DIRECTORS
31.12.23 31.12.22
£    £   
Wages and salaries 5,470,290 5,025,896
Social security costs 563,051 520,337
Other pension costs 134,577 130,290
6,167,918 5,676,523

The average number of employees during the year was as follows:
31.12.23 31.12.22

Number of directors 3 4
Number of operational staff 142 138
145 142

COWAN RECOVERY LIMITED (REGISTERED NUMBER: 01339144)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

5. EMPLOYEES AND DIRECTORS - continued

31.12.23 31.12.22
£    £   
Directors' remuneration 368,582 380,219
Directors' pension contributions to money purchase schemes 9,123 10,600

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 3 4

Information regarding the highest paid director is as follows:
31.12.23 31.12.22
£    £   
Emoluments etc 134,799 103,937
Pension contributions to money purchase schemes 3,159 2,520

6. OPERATING PROFIT

The operating profit is stated after charging/(crediting):

31.12.23 31.12.22
£    £   
Depreciation - owned assets 572,655 498,006
Depreciation - assets on hire purchase contracts and finance leases 542,460 586,771
Profit on disposal of fixed assets (15,725 ) (9,582 )
Goodwill amortisation 36,750 36,750
Auditors remuneration 20,000 20,000

7. INTEREST PAYABLE AND SIMILAR EXPENSES
31.12.23 31.12.22
£    £   
Bank interest 35,315 27,943
Hire purchase and leasing 122,140 105,870
157,455 133,813

COWAN RECOVERY LIMITED (REGISTERED NUMBER: 01339144)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

8. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
31.12.23 31.12.22
£    £   
Deferred tax 216,425 276,915
Tax on profit 216,425 276,915

UK corporation tax has been charged at 23.52% (2022 - 19%).

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

31.12.23 31.12.22
£    £   
Profit before tax 635,498 179,624
Profit multiplied by the standard rate of corporation tax in the UK
of 23.520% (2022 - 19%)

149,469

34,129

Effects of:
Expenses not deductible for tax purposes 1,897 5,498
Capital allowances in excess of depreciation (151,366 ) (38,515 )
Deferred tax: origination and reversal of timing differences 216,425 276,915
Goodwill relief - (1,112 )
Total tax charge 216,425 276,915

Deferred tax balances have been remeasured at the 25% rate of corporation tax for the UK. The new main rate of corporation tax applies from 1 April 2023.

9. DIVIDENDS
31.12.23 31.12.22
£    £   
Interim 17,962 -

COWAN RECOVERY LIMITED (REGISTERED NUMBER: 01339144)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

10. INTANGIBLE FIXED ASSETS
Goodwill
£   
COST
At 1 January 2023
and 31 December 2023 90,000
AMORTISATION
At 1 January 2023 53,250
Amortisation for year 36,750
At 31 December 2023 90,000
NET BOOK VALUE
At 31 December 2023 -
At 31 December 2022 36,750

11. PROPERTY, PLANT AND EQUIPMENT
Improvements Fixtures
to Plant and and Motor
property machinery fittings vehicles Totals
£    £    £    £    £   
COST
At 1 January 2023 302,250 10,198,843 433,279 210,622 11,144,994
Additions - 1,761,478 35,003 49,758 1,846,239
Disposals - (395,330 ) (35,107 ) (94,165 ) (524,602 )
At 31 December 2023 302,250 11,564,991 433,175 166,215 12,466,631
DEPRECIATION
At 1 January 2023 223,258 4,395,819 249,583 109,452 4,978,112
Charge for year 12,771 1,046,393 39,050 16,901 1,115,115
Eliminated on disposal - (163,243 ) (26,483 ) (41,850 ) (231,576 )
At 31 December 2023 236,029 5,278,969 262,150 84,503 5,861,651
NET BOOK VALUE
At 31 December 2023 66,221 6,286,022 171,025 81,712 6,604,980
At 31 December 2022 78,992 5,803,024 183,696 101,170 6,166,882

COWAN RECOVERY LIMITED (REGISTERED NUMBER: 01339144)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

11. PROPERTY, PLANT AND EQUIPMENT - continued

Fixed assets, included in the above, which are held under hire purchase contracts and finance leases are as follows:
Plant and Motor
machinery vehicles Totals
£    £    £   
COST
At 1 January 2023 4,585,271 18,963 4,604,234
Additions 1,573,906 - 1,573,906
Disposals (105,276 ) - (105,276 )
Transfer to ownership (1,946,316 ) (18,963 ) (1,965,279 )
At 31 December 2023 4,107,585 - 4,107,585
DEPRECIATION
At 1 January 2023 1,615,188 10,050 1,625,238
Charge for year 540,232 2,228 542,460
Eliminated on disposal (63,276 ) - (63,276 )
Transfer to ownership (160,290 ) (12,278 ) (172,568 )
At 31 December 2023 1,931,854 - 1,931,854
NET BOOK VALUE
At 31 December 2023 2,175,731 - 2,175,731
At 31 December 2022 2,970,083 8,913 2,978,996

12. INVENTORIES
31.12.23 31.12.22
£    £   
Inventories - raw materials 63,771 53,890

13. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.12.23 31.12.22
£    £   
Trade debtors 3,800,432 3,715,370
Other debtors - 2,000
Prepayments and accrued income 530,793 528,376
4,331,225 4,245,746

COWAN RECOVERY LIMITED (REGISTERED NUMBER: 01339144)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

14. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.12.23 31.12.22
£    £   
Bank loans and overdrafts (see note 16) 1,825,661 1,818,772
Other loans (see note 16) 100,000 100,000
Hire purchase contracts and finance leases (see note 17)
636,762

801,698
Trade creditors 1,304,396 1,712,511
Amounts owed to group undertakings 241,982 178,587
Social security and other taxes 170,545 139,466
VAT 277,376 243,648
Other creditors 3,463 3,315
Accruals and deferred income 343,034 347,032
4,903,219 5,345,029

15. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN
ONE YEAR
31.12.23 31.12.22
£    £   
Bank loans (see note 16) 38,899 129,812
Other loans (see note 16) 141,667 241,667
Hire purchase contracts and finance leases (see note 17)
1,474,055

845,708
1,654,621 1,217,187

16. LOANS

An analysis of the maturity of loans is given below:

31.12.23 31.12.22
£    £   
Amounts falling due within one year or on demand:
Bank overdrafts 1,728,848 1,726,132
Bank loans 96,813 92,640
Other loans 100,000 100,000
1,925,661 1,918,772

Amounts falling due between one and two years:
Bank loans - 1-2 years 38,899 92,519
Other loans - 1-2 years 100,000 100,000
138,899 192,519

COWAN RECOVERY LIMITED (REGISTERED NUMBER: 01339144)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

16. LOANS - continued
31.12.23 31.12.22
£    £   
Amounts falling due between two and five years:
Bank loans - 2-5 years - 37,293
Other loans - 2-5 years 41,667 141,667
41,667 178,960

17. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase
contracts
Finance leases
31.12.23 31.12.22 31.12.23 31.12.22
£    £    £    £   
Net obligations repayable:
Within one year 461,809 401,221 174,953 400,477
Between one and five years 1,137,506 294,750 336,549 550,958
1,599,315 695,971 511,502 951,435

Non-cancellable operating leases
31.12.23 31.12.22
£    £   
Within one year 331,901 278,841
Between one and five years 547,936 280,115
879,837 558,956

18. SECURED DEBTS

The following secured debts are included within creditors:

31.12.23 31.12.22
£    £   
Bank overdrafts 1,728,848 1,726,132
Bank loans 135,712 222,452
Hire purchase contracts and finance leases 2,110,817 1,647,406
3,975,377 3,595,990

The bank holds an all assets debenture dated 7th July 2011 incorporating a fixed and floating charge over all current and future assets of the company.

COWAN RECOVERY LIMITED (REGISTERED NUMBER: 01339144)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

19. PROVISIONS FOR LIABILITIES
31.12.23 31.12.22
£    £   
Deferred tax 1,261,353 1,044,928

Deferred
tax
£   
Balance at 1 January 2023 1,044,928
Profit and loss movement 216,425
Balance at 31 December 2023 1,261,353

20. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 31.12.23 31.12.22
value: £    £   
113 Ordinary £1 113 113

21. RESERVES
Capital
Retained Share redemption
earnings premium reserve Totals
£    £    £    £   

At 1 January 2023 3,013,748 117 42,000 3,055,865
Profit for the year 419,073 419,073
Dividends (17,962 ) (17,962 )
At 31 December 2023 3,414,859 117 42,000 3,456,976

22. ULTIMATE PARENT COMPANY

Cowan Group Limited is regarded by the directors as being the company's ultimate parent company.

The company is an 80% owned subsidiary of Cowan Group Limited, a private limited company registered in England and Wales. Its registered office is Century House, 1 The Lakes, Northampton, United Kingdom, NN4 7HD.

Its principal place of business is Newport Pagnell, Buckinghamshire, MK16 8YR.

Cowan Group Limited is wholly owned by both the August Settlement and Bear Settlement trusts.

Group accounts can be obtained from https://www.gov.uk/get-information-about-a-company

COWAN RECOVERY LIMITED (REGISTERED NUMBER: 01339144)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

23. RELATED PARTY DISCLOSURES

At the balance sheet date the company owed the parent company Cowan Group Limited £26,637 (2022: £26,637).

During the year, the company purchased services amounting to £3,250,342 and made sales amounting to £799,695 with CMG Heavy Rescue Limited. A related group company that was owed £215,345 (2022: £151,950) at the period end.

During the year, the company purchased services amounting to £224,374 with Brice Automotive Limited, a company owned by a director. At the period end Cowan Recovery Limited owed Brice Automotive Limited £21,206 (2022: £Nil).

No interest or charges have been, or are agreed to be charged on these amounts and they are repayable on demand.

All transactions were undertaken at market value.

24. KEY MANAGEMENT PERSONNEL COMPENSATION

The total remuneration of key management personnel in 2023 (including salaries and other benefits) was £414,212 (2022: £437,425).

25. GOING CONCERN

During the current year 2023 to date the company has continued to remain profitable in terms of net profit and EBITDA.

The company has met its day-to-day working capital requirements through an invoice discounting facility and the use of finance lease agreements to fund assets.

The company's weekly and monthly forecasts and projections prepared by the directors, taking account of reasonable possible changes in trading performance and historic seasonal trends, show that the company is able to operate within the level of its current facility.

Therefore the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future and they continue to adopt the going concern basis in preparing the annual report and accounts.