Caseware UK (AP4) 2023.0.135 2023.0.135 2023-12-312023-12-31falsefalse2023-01-01trueNew and used car dealer.1314falseThe members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006. 00628480 2023-01-01 2023-12-31 00628480 2022-01-01 2022-12-31 00628480 2023-12-31 00628480 2022-12-31 00628480 c:Director1 2023-01-01 2023-12-31 00628480 c:RegisteredOffice 2023-01-01 2023-12-31 00628480 d:Buildings 2023-01-01 2023-12-31 00628480 d:Buildings d:ShortLeaseholdAssets 2023-01-01 2023-12-31 00628480 d:PlantMachinery 2023-01-01 2023-12-31 00628480 d:PlantMachinery 2023-12-31 00628480 d:PlantMachinery 2022-12-31 00628480 d:PlantMachinery d:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 00628480 d:FurnitureFittings 2023-01-01 2023-12-31 00628480 d:FurnitureFittings 2023-12-31 00628480 d:FurnitureFittings 2022-12-31 00628480 d:FurnitureFittings d:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 00628480 d:ComputerEquipment 2023-12-31 00628480 d:ComputerEquipment 2022-12-31 00628480 d:ComputerEquipment d:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 00628480 d:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 00628480 d:FreeholdInvestmentProperty 2023-01-01 2023-12-31 00628480 d:FreeholdInvestmentProperty 2023-12-31 00628480 d:FreeholdInvestmentProperty 2022-12-31 00628480 d:FreeholdInvestmentProperty 2 2023-01-01 2023-12-31 00628480 d:CurrentFinancialInstruments 2023-12-31 00628480 d:CurrentFinancialInstruments 2022-12-31 00628480 d:Non-currentFinancialInstruments 2023-12-31 00628480 d:Non-currentFinancialInstruments 2022-12-31 00628480 d:CurrentFinancialInstruments d:WithinOneYear 2023-12-31 00628480 d:CurrentFinancialInstruments d:WithinOneYear 2022-12-31 00628480 d:Non-currentFinancialInstruments d:AfterOneYear 2023-12-31 00628480 d:Non-currentFinancialInstruments d:AfterOneYear 2022-12-31 00628480 d:ShareCapital 2023-12-31 00628480 d:ShareCapital 2022-12-31 00628480 d:CapitalRedemptionReserve 2023-12-31 00628480 d:CapitalRedemptionReserve 2022-12-31 00628480 d:RevaluationReserve 2023-12-31 00628480 d:RevaluationReserve 2022-12-31 00628480 d:InvestmentPropertiesRevaluationReserve 2023-12-31 00628480 d:InvestmentPropertiesRevaluationReserve 2022-12-31 00628480 d:RetainedEarningsAccumulatedLosses 2023-12-31 00628480 d:RetainedEarningsAccumulatedLosses 2022-12-31 00628480 c:OrdinaryShareClass2 2023-01-01 2023-12-31 00628480 c:OrdinaryShareClass2 2023-12-31 00628480 c:OrdinaryShareClass3 2023-01-01 2023-12-31 00628480 c:OrdinaryShareClass3 2023-12-31 00628480 c:OrdinaryShareClass4 2023-01-01 2023-12-31 00628480 c:OrdinaryShareClass4 2023-12-31 00628480 c:FRS102 2023-01-01 2023-12-31 00628480 c:AuditExemptWithAccountantsReport 2023-01-01 2023-12-31 00628480 c:FullAccounts 2023-01-01 2023-12-31 00628480 c:PrivateLimitedCompanyLtd 2023-01-01 2023-12-31 00628480 d:KeyManagementPersonnelCloseFamilyMembersEntitiesUnderKeyManagementPersonnelsControl 2023-01-01 2023-12-31 00628480 d:KeyManagementPersonnelCloseFamilyMembersEntitiesUnderKeyManagementPersonnelsControl 2023-12-31 00628480 d:KeyManagementPersonnelCloseFamilyMembersEntitiesUnderKeyManagementPersonnelsControl 2022-12-31 00628480 6 2023-01-01 2023-12-31 00628480 f:PoundSterling 2023-01-01 2023-12-31 xbrli:shares iso4217:GBP xbrli:pure

Registered number: 00628480










CONSTITUTION MOTORS LIMITED








UNAUDITED

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

 
CONSTITUTION MOTORS LIMITED
 
 
COMPANY INFORMATION


Director
I M Coates 




Registered number
00628480



Registered office
7 The Close

Norwich

Norfolk

NR1 4DJ




Accountants
MA Partners LLP
Chartered Accountants

7 The Close

Norwich

Norfolk

NR1 4DJ





 
CONSTITUTION MOTORS LIMITED
 

CONTENTS



Page
Accountants' report
 
 
1
Balance sheet
 
 
2 - 3
Notes to the financial statements
 
 
4 - 11


 
CONSTITUTION MOTORS LIMITED
 
 
  
CHARTERED ACCOUNTANTS' REPORT TO THE DIRECTOR ON THE PREPARATION OF THE UNAUDITED STATUTORY FINANCIAL STATEMENTS OF CONSTITUTION MOTORS LIMITED
FOR THE YEAR ENDED 31 DECEMBER 2023

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Constitution Motors Limited for the year ended 31 December 2023 which comprise  the Balance sheet and the related notes from the Company's accounting records and from information and explanations you have given us.

As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW)we are subject to its ethical and other professional requirements which are detailed at https://www.icaew.com /regulation.

This report is made solely to the director of Constitution Motors Limited in accordance with the terms of our engagement letter dated 22 August 2023Our work has been undertaken solely to prepare for your approval the financial statements of Constitution Motors Limited and state those matters that we have agreed to state to the director of Constitution Motors Limited in this report in accordance with ICAEW Technical Release TECH07/16AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Constitution Motors Limited and its director for our work or for this report. 

It is your duty to ensure that Constitution Motors Limited has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and loss of Constitution Motors Limited. You consider that Constitution Motors Limited is exempt from the statutory audit requirement for the year.

We have not been instructed to carry out an audit or review of the financial statements of Constitution Motors Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.

  



MA Partners LLP
 
Chartered Accountants
  
7 The Close
Norwich
Norfolk
NR1 4DJ
2 July 2024
Page 1

 
CONSTITUTION MOTORS LIMITED
REGISTERED NUMBER: 00628480

BALANCE SHEET
AS AT 31 DECEMBER 2023

2023
As restated 2022
Note
£
£

Fixed assets
  

Tangible assets
 4 
23,907
29,324

Investments
 5 
279,424
279,424

Investment property
 6 
500,000
439,358

  
803,331
748,106

Current assets
  

Stocks
  
377,806
426,484

Debtors: amounts falling due within one year
 7 
44,488
47,171

Cash at bank and in hand
  
271
252

  
422,565
473,907

Creditors: amounts falling due within one year
 8 
(678,572)
(675,316)

Net current liabilities
  
 
 
(256,007)
 
 
(201,409)

Total assets less current liabilities
  
547,324
546,697

Creditors: amounts falling due after more than one year
 9 
(38,641)
(24,999)

Provisions for liabilities
  

Deferred tax
  
(19,670)
(5,939)

Net assets
  
489,013
515,759


Capital and reserves
  

Called up share capital 
  
1,620
1,620

Revaluation reserve
  
243,924
243,924

Capital redemption reserve
  
5,584
5,584

Investment property reserve
  
44,348
-

Profit and loss account
  
193,537
264,631

  
489,013
515,759


Page 2

 
CONSTITUTION MOTORS LIMITED
REGISTERED NUMBER: 00628480
    
BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2023

The director considers that the Company is entitled to exemption from audit under section 477 of the Companies Act 2006 and members have not required the Company to obtain an audit for the year in question in accordance with section 476 of the Companies Act 2006.

The director acknowledges his responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.

The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.

The Company has opted not to file the profit and loss account in accordance with provisions applicable to companies subject to the small companies' regime.

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 2 July 2024.




I M Coates
Director

The notes on pages 4 to 11 form part of these financial statements.

Page 3

 
CONSTITUTION MOTORS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.


General information

Constitution Motors Limited is a United Kingdom company limited by shares. It is incorporated and domiciled in England and Wales. The registered office address is 7 The Close, Norwich, NR1 4DJ.
The Company's principal activity is that of retail trade of motor vehicles, parts and accessories. Its principal place of business is Norwich, UK.

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 FRS 102 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland' and the requirements of the Companies Act 2006. The disclosure requirements of Section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The following principal accounting policies have been applied:

 
2.2

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company 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 Company has transferred the significant risks and rewards of ownership to the buyer;
the Company 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 Company 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.

 
2.3

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.

 
2.4

Borrowing costs

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

Page 4

 
CONSTITUTION MOTORS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.5

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company 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 Balance sheet. The assets of the plan are held separately from the Company in independently administered funds.

 
2.6

Current and deferred taxation

The tax expense for the year 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 balance sheet date in the countries where the Company operates and generates income.

Page 5

 
CONSTITUTION MOTORS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.7

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 and reducing balance method.

Depreciation is provided on the following basis:

Freehold property
-
1%
straight line
S/Term Leasehold Property
-
10%
straight line
Plant & machinery
-
20%
reducing balance
Fixtures & fittings
-
20%
reducing balance

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 in profit or loss.

 
2.8

Investment property

Investment property is carried at fair value determined annually by external valuers and derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset. No depreciation is provided. Changes in fair value are recognised in profit or loss.

 
2.9

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

Investments in unlisted Company shares, whose market value can be reliably determined, are remeasured to market value at each balance sheet date. Gains and losses on remeasurement are recognised in the Profit and loss account for the period. Where market value cannot be reliably determined, such investments are stated at historic cost less impairment.

 
2.10

Stocks

Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. 
Stocks include used and demonstrator cars which are reviewed for impairment on an annual basis. Net realisable value is assessed by the directors. Parts stock is valued at cost and reviewed for impairment on an annual basis. 
Consignment stock consists of unregistered vehicles legally owned by the maufacturer. Under the  agreement with the vehicle manufacturer the company is exposed to obsolescence and slow movement risk and as a result this stock is recognised as an asset in the company's balance sheet.

Page 6

 
CONSTITUTION MOTORS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.11

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.

 
2.12

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.

 
2.13

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.

 
2.14

Financial instruments

The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.
Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received.

 
2.15

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.


3.


Employees

The average monthly number of employees, including directors, during the year was 13 (2022 - 14).

Page 7

 
CONSTITUTION MOTORS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

4.


Tangible fixed assets





S/T leasehold property
Plant & machinery
Fixtures & fittings
Total

£
£
£
£



Cost or valuation


At 1 January 2023
92,040
209,053
235,248
536,341



At 31 December 2023

92,040
209,053
235,248
536,341



Depreciation


At 1 January 2023
82,556
201,099
223,362
507,017


Charge for the year on owned assets
1,450
1,590
2,377
5,417



At 31 December 2023

84,006
202,689
225,739
512,434



Net book value



At 31 December 2023
8,034
6,364
9,509
23,907



At 31 December 2022
9,484
7,954
11,886
29,324


5.


Fixed asset investments





Investments in subsidiary companies

£



Cost or valuation


At 1 January 2023
279,424



At 31 December 2023
279,424




Page 8

 
CONSTITUTION MOTORS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

6.


Investment property


Freehold investment property

£



Valuation


At 1 January 2023
439,358


Additions at cost
1,512


Surplus on revaluation
59,130



At 31 December 2023
500,000

The 2023 valuations were made by the directors on an open market value.

2023
2022
£
£

Revaluation reserves


Net deficit in movement properties
44,348
-



If the Investment properties had been accounted for under the historic cost accounting rules, the properties would have been measured as follows:

2023
2022
£
£


Historic cost
440,870
-

440,870
-


7.


Debtors

2023
As restated 2022
£
£


Trade debtors
18,885
27,575

Other debtors
10,367
4,140

Prepayments and accrued income
15,236
15,456

44,488
47,171


Page 9

 
CONSTITUTION MOTORS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

8.


Creditors: Amounts falling due within one year

2023
As restated 2022
£
£

Bank overdrafts
197,441
185,936

Bank loans
14,781
41,672

Trade creditors
272,759
253,192

Amounts owed to group undertakings
146,816
142,094

Other taxation and social security
19,976
21,449

Other creditors
2,335
7,734

Accruals and deferred income
24,464
23,239

678,572
675,316


The bank loans are secured by way of a personal guarantee as stated in note 11.


9.


Creditors: Amounts falling due after more than one year

2023
2022
£
£

Bank loans
38,641
24,999

38,641
24,999



10.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



1,217  A Ordinary shares of £1.00 each
1,217
1,217
241 B Ordinary shares of £1.00 each
241
241
162 C Ordinary shares of £1.00 each
162
162

1,620

1,620


Page 10

 
CONSTITUTION MOTORS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

11.


Prior year adjustment

A prior year adjustment was made to the Company's stocks for the year ended 31 December 2022, which were overstated by £66,509. The tax effect of this is a reduction in the tax charge for the year of £10,368. The effect on the comparative balance sheet is a decrease in stocks of £66,509 and a decrease in the corporation tax creditor of £10,368.

The effect on the opening reserves position as at 1 January 2023 is a decrease in the profit and loss reserve of £56,140.


12.Director's personal guarantees

The directors have given personal guarantees of up to £240,000 as security for the company loan.


13.


Related party transactions

As at 31 December 2023 the balance owed to the directors was £2,335 (2022: £7,734). The loan is interest free, repayable on demand and is included within other creditors in note 8 to the financial statements.

 
Page 11