REGISTERED NUMBER: 03974169 (England and Wales) |
Group Strategic Report, Report of the Directors and |
Consolidated Financial Statements for the Year Ended 31 December 2023 |
for |
Alphamore Corporation Ltd |
REGISTERED NUMBER: 03974169 (England and Wales) |
Group Strategic Report, Report of the Directors and |
Consolidated Financial Statements for the Year Ended 31 December 2023 |
for |
Alphamore Corporation Ltd |
Alphamore Corporation Ltd (Registered number: 03974169) |
Contents of the Consolidated Financial Statements |
for the Year Ended 31 December 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 6 |
Consolidated Income Statement | 10 |
Consolidated Other Comprehensive Income | 11 |
Consolidated Balance Sheet | 12 |
Company Balance Sheet | 13 |
Consolidated Statement of Changes in Equity | 14 |
Company Statement of Changes in Equity | 15 |
Consolidated Cash Flow Statement | 16 |
Notes to the Consolidated Cash Flow Statement | 17 |
Notes to the Consolidated Financial Statements | 18 |
Alphamore Corporation Ltd |
Company Information |
for the Year Ended 31 December 2023 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
SENIOR STATUTORY AUDITOR: | Mr Craig Peter Fishwick FCCA |
AUDITORS: |
Chartered Certified Accountants and |
Statutory Auditors |
22-28 Willow Street |
Accrington |
Lancashire |
BB5 1LP |
Alphamore Corporation Ltd (Registered number: 03974169) |
Group Strategic Report |
for the Year Ended 31 December 2023 |
The directors present their strategic report of the company and group for the year ended 31 December 2023. |
REVIEW OF BUSINESS |
During the year ended 31 December 2023 the performance was as follows: |
The company's only subsidiary is Peter Ambrose (Castleford) Limited which is 100% owned. |
Group turnover was £21,671,911 compared to £18,783,068 for 2022 and Operating Profit £258,696 compared to £554,058 for 2022. |
Dividends paid to shareholders of Alphamore Corporation Ltd amounted to £Nil (2022 - £Nil). |
Retained reserves of Alphamore Corporation Ltd, as a group, at the year-end amounted to £1,405,614 (2022 - £2,114,169), with the company reserves at the same date amounting to £434,316 (2022 - £334,382). |
On November 1st, 2023, the company received dividends from Peter Ambrose (Castleford) Ltd. of £1 million. This enabled the company to make a gift of £1 million to Peter Ambrose (Castleford) Limited Employee Ownership Trust. From this the Trust was able to make the second payment in its acquisition of the total share capital of Alphamore Corporation Ltd. The payment to the Ambrose Family was made in January 2024. |
2023 was the first full trading year under of ownership of the Peter Ambrose (Castleford) Limited Employee Ownership Trust. The Directors are satisfied with the performance during the year when one considers the exceptional trading and economic conditions arising from a post pandemic, a post Brexit aftermath, wars in Ukraine and the Middle East, supply chain delays and the constant increase in interest rates. There has also been an unprecedented reduction in the values of used cars during the final four months of 2023. The company has reserved for that reduction in its 2023 results and has managed to trade out of the position in 2024 without major impact on profitability. |
The planned introduction of the Agency model for commercial vehicles in 2024 has been delayed till 2026, when subject to final confirmation it will be implemented with Cars. Many manufacturers seem to be delaying this new model as they have discovered that their IT systems are unable to deal with the complexity and needs more work to enable it to be successful. There is also a reluctance from customers to buy vehicles purely online as illustrated by the demise of Cazoo and other online specialists. Whilst the Directors saw the introduction of the Agency model as an opportunity to reduce the working capital required as a benefit for the EOT they do not believe that the delay will have any adverse effect on the company. |
New vehicle supply improved marginally in 2023. Delivery lead times in manufacturing improved but Stellantis did have severe delays in getting vehicles to the dealerships for onward delivery to customers. The current Peugeot range of cars and commercial vans are some of the best in the market place and improving all the time. The introduction of new hybrid and electric models will enable the company to compete with the increasing introduction of Chinese electric cars in the future. The only concern with new cars is the demands of Governments that 22% of registrations must be electric when, due to the lack of charging infrastructure and the acquisition cost of new vehicles, the true demand is probable half. This in the short term will damage the used car values of electric vehicles if new registrations are forced. |
Used vehicle supply is still challenging. Whilst new car supply is improving the number of used vehicles coming into the marketplace is not anywhere near pre pandemic levels. Used car prices have now levelled out after the severe drop in value in the final four months of 2023. We are now back to used car values dropping monthly as they did pre-pandemic. |
The Directors would like to take this opportunity of thanking all employees for their exceptional work during the last twelve months. We are all going through a new learning curve moving to the EOT structure. Whilst we have had a few hiccups we all agree that it will only get better as we get used to our newfound autonomy |
Alphamore Corporation Ltd (Registered number: 03974169) |
Group Strategic Report |
for the Year Ended 31 December 2023 |
PRINCIPAL RISKS AND UNCERTAINTIES |
Credit risk |
The group's credit risk relates to vehicle stocking loans which are secured against the vehicles and assets of the company. These are reviewed annually. |
Liquidity Risk |
Under the EOT the company will have reduced levels of cash reserves. The Directors believe that these will be adequate for company needs during 2024. |
The directors monitor daily the cash flow of the company and carry out a strategic review if there are any major changes in the economy. |
The company also needs to retain cash to cover the risk of repeat flooding of the premises as the group's insurance provider has refused to cover the business for flood risk. Parts of the site have been flooded in recent years. The reason for the flooding is under investigation and the situation is under review annually when the policy is renewed. |
Manufacturer relationship |
The company relies on the strength of its relationship with Peugeot to deliver a significant component of the group's profitability. Changes in the fortune and strategy of Stellantis could directly and materially impact on the group's results. |
The Directors can confirm that new contracts for Sales and Aftersales have been signed with Stellantis. |
General economic conditions |
The general economic environment and levels of consumer and business confidence have a direct impact on the levels of demand in the motor sector. |
The market has bounced back from the lockdowns and the order book is strong. However, the current economic situation within the UK is poor and we are at risk of going into recession. Interest rates seem to still be increasing and will probable start reducing in early 2024. Food inflation is a major problem and will result in consumers having to make difficult choices on where to spend their income. This will undoubtedly result in a reduction in car sales. |
ON BEHALF OF THE BOARD: |
Alphamore Corporation Ltd (Registered number: 03974169) |
Report of the Directors |
for the Year Ended 31 December 2023 |
The directors present their report with the financial statements of the company and the group for the year ended 31 December 2023. |
DIVIDENDS |
No dividends will be distributed for the year ended 31 December 2023. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 January 2023 to the date of this report. |
Other changes in directors holding office are as follows: |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group 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). 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 the group and of the profit or loss of the group 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group 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 group'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 group's auditors are aware of that information. |
Alphamore Corporation Ltd (Registered number: 03974169) |
Report of the Directors |
for the Year Ended 31 December 2023 |
AUDITORS |
The auditors, Mayes Business Partnership Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
Alphamore Corporation Ltd |
Opinion |
We have audited the financial statements of Alphamore Corporation Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, 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 group's and of the parent company affairs as at 31 December 2023 and of the group's 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 group 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 group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the 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 Group 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 Group 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 Group 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 |
Alphamore Corporation Ltd |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of 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 group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so. |
Report of the Independent Auditors to the Members of |
Alphamore Corporation Ltd |
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: |
(i) Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. |
(ii) Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company's internal control. |
(iii) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. |
(iv) Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the company to cease to continue as a going concern. |
(v) Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. |
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. |
Due to the sector in which the client operates we have identified that Employment Law, Pensions and Taxation Legislation, Health and Safety Legislation, along with FCA registration and regulation, and compliance with the Companies Act 2006 as areas most likely to have a material impact on the financial statements. |
Owing to the inherent limitations of an audit there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all 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 |
Alphamore Corporation Ltd |
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 |
Chartered Certified Accountants and |
Statutory Auditors |
22-28 Willow Street |
Accrington |
Lancashire |
BB5 1LP |
Alphamore Corporation Ltd (Registered number: 03974169) |
Consolidated Income Statement |
for the Year Ended 31 December 2023 |
31.12.23 | 31.12.22 |
Notes | £ | £ |
TURNOVER | 3 | 21,671,911 | 18,783,068 |
Cost of sales | (20,791,097 | ) | (17,806,965 | ) |
GROSS PROFIT | 880,814 | 976,103 |
Administrative expenses | (633,103 | ) | (477,669 | ) |
247,711 | 498,434 |
Other operating income | 10,985 | 55,624 |
OPERATING PROFIT | 5 | 258,696 | 554,058 |
Interest receivable and similar income | 124,855 | 69,113 |
PROFIT BEFORE TAXATION | 383,551 | 623,171 |
Tax on profit | 6 | (92,106 | ) | (119,751 | ) |
PROFIT FOR THE FINANCIAL YEAR |
Profit attributable to: |
Owners of the parent | 291,445 | 503,420 |
Alphamore Corporation Ltd (Registered number: 03974169) |
Consolidated Other Comprehensive Income |
for the Year Ended 31 December 2023 |
31.12.23 | 31.12.22 |
Notes | £ | £ |
PROFIT FOR THE YEAR | 291,445 | 503,420 |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
291,445 |
503,420 |
Total comprehensive income attributable to: |
Owners of the parent | 291,445 | 503,420 |
Alphamore Corporation Ltd (Registered number: 03974169) |
Consolidated Balance Sheet |
31 December 2023 |
31.12.23 | 31.12.22 |
Notes | £ | £ |
FIXED ASSETS |
Tangible assets | 8 | 26,697 | 36,379 |
Investments | 9 | - | - |
26,697 | 36,379 |
CURRENT ASSETS |
Stocks | 10 | 1,175,160 | 1,201,231 |
Debtors | 11 | 2,490,318 | 780,172 |
Cash at bank and in hand | 1,489,112 | 3,948,878 |
5,154,590 | 5,930,281 |
CREDITORS |
Amounts falling due within one year | 12 | (3,297,740 | ) | (3,374,317 | ) |
NET CURRENT ASSETS | 1,856,850 | 2,555,964 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
1,883,547 |
2,592,343 |
PROVISIONS FOR LIABILITIES | 14 | (6,622 | ) | (6,863 | ) |
NET ASSETS | 1,876,925 | 2,585,480 |
CAPITAL AND RESERVES |
Called up share capital | 15 | 200 | 200 |
Share premium | 16 | 465,555 | 465,555 |
Capital redemption reserve | 16 | 5,556 | 5,556 |
Retained earnings | 16 | 1,405,614 | 2,114,169 |
SHAREHOLDERS' FUNDS | 1,876,925 | 2,585,480 |
The financial statements were approved by the Board of Directors and authorised for issue on 7 August 2024 and were signed on its behalf by: |
P Ambrose - Director |
Alphamore Corporation Ltd (Registered number: 03974169) |
Company Balance Sheet |
31 December 2023 |
31.12.23 | 31.12.22 |
Notes | £ | £ |
FIXED ASSETS |
Tangible assets | 8 |
Investments | 9 |
CURRENT ASSETS |
Debtors | 11 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 12 | ( |
) | ( |
) |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CAPITAL AND RESERVES |
Called up share capital | 15 |
Share premium |
Retained earnings |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 1,099,934 | 426,955 |
The financial statements were approved by the Board of Directors and authorised for issue on |
Alphamore Corporation Ltd (Registered number: 03974169) |
Consolidated 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 | 200 | 6,743,749 | 465,555 | 5,556 | 7,215,060 |
Changes in equity |
Capital contribution to the |
Alphamore Corporation Employee |
Ownership Trust | - | (5,133,000 | ) | - | - | (5,133,000 | ) |
Total comprehensive income | - | 503,420 | - | - | 503,420 |
Balance at 31 December 2022 | 200 | 2,114,169 | 465,555 | 5,556 | 2,585,480 |
Changes in equity |
Capital contribution to the |
Alphamore Corporation Employee |
Ownership Trust | - | (1,000,000 | ) | - | - | (1,000,000 | ) |
Total comprehensive income | - | 291,445 | - | - | 291,445 |
Balance at 31 December 2023 | 200 | 1,405,614 | 465,555 | 5,556 | 1,876,925 |
Alphamore Corporation Ltd (Registered number: 03974169) |
Company Statement of Changes in Equity |
for the Year Ended 31 December 2023 |
Called up |
share | Retained | Share | Total |
capital | earnings | premium | equity |
£ | £ | £ | £ |
Balance at 1 January 2022 |
Changes in equity |
Profit for the year | - | 426,955 | - | 426,955 |
Total comprehensive income | - | - |
Capital contribution to the |
Alphamore Corporation Employee |
Ownership Trust | - | (5,133,000 | ) | - | (5,133,000 | ) |
Balance at 31 December 2022 |
Changes in equity |
Profit for the year | - | 1,099,934 | - | 1,099,934 |
Total comprehensive income | - | - |
Capital contribution to the |
Alphamore Corporation Employee |
Ownership Trust | - | (1,000,000 | ) | - | (1,000,000 | ) |
Balance at 31 December 2023 |
Alphamore Corporation Ltd (Registered number: 03974169) |
Consolidated Cash Flow Statement |
for the Year Ended 31 December 2023 |
31.12.23 | 31.12.22 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | (1,463,227 | ) | 4,381,383 |
Tax paid | (113,286 | ) | (241,974 | ) |
Net cash from operating activities | (1,576,513 | ) | 4,139,409 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (8,108 | ) | (41,179 | ) |
Interest received | 124,855 | 69,113 |
Net cash from investing activities | 116,747 | 27,934 |
Cash flows from financing activities |
Amount introduced by directors | - | 459,532 |
Gift to Employee Ownership Trust | (1,000,000 | ) | (5,133,000 | ) |
Net cash from financing activities | (1,000,000 | ) | (4,673,468 | ) |
Decrease in cash and cash equivalents | (2,459,766 | ) | (506,125 | ) |
Cash and cash equivalents at beginning of year |
2 |
3,948,878 |
4,455,003 |
Cash and cash equivalents at end of year | 2 | 1,489,112 | 3,948,878 |
Alphamore Corporation Ltd (Registered number: 03974169) |
Notes to the Consolidated Cash Flow Statement |
for the Year Ended 31 December 2023 |
1. | RECONCILIATION OF OPERATING PROFIT TO CASH GENERATED FROM OPERATIONS |
31.12.23 | 31.12.22 |
£ | £ |
Operating profit | 258,696 | 554,058 |
Depreciation charges | 17,790 | 9,961 |
276,486 | 564,019 |
Decrease in stocks | 26,071 | 625,259 |
(Increase)/decrease in trade and other debtors | (1,710,146 | ) | 1,310,581 |
(Decrease)/increase in trade and other creditors | (55,638 | ) | 1,881,524 |
Cash generated from operations | (1,463,227 | ) | 4,381,383 |
2. | 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 31 December 2023 |
31.12.23 | 1.1.23 |
£ | £ |
Cash and cash equivalents | 1,489,112 | 3,948,878 |
Year ended 31 December 2022 |
31.12.22 | 1.1.22 |
£ | £ |
Cash and cash equivalents | 3,948,878 | 4,455,003 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.1.23 | Cash flow | At 31.12.23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 3,948,878 | (2,459,766 | ) | 1,489,112 |
3,948,878 | (2,459,766 | ) | 1,489,112 |
Total | 3,948,878 | (2,459,766 | ) | 1,489,112 |
Alphamore Corporation Ltd (Registered number: 03974169) |
Notes to the Consolidated Financial Statements |
for the Year Ended 31 December 2023 |
1. | STATUTORY INFORMATION |
Alphamore Corporation Ltd is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Basis of consolidation |
The financial statements consolidate the accounts of Alphamore Corporation Ltd with its subsidiary undertaking, Peter Ambrose (Castleford) Limited. |
The accounting policies set out below have, unless otherwise stated, been applied consistently to all periods presented in these financial statements. |
Turnover |
Sale of goods - wholesale |
The Group sources and sells a range of motor vehicles in the wholesale market. Sales of goods are recognised on delivery to the wholesaler, when the wholesaler has full discretion over the channel and price to sell the product and there is no unfulfilled obligation that could affect the wholesaler's acceptance of the product. Delivery occurs when the goods have been shipped to the location specified by the wholesaler, the risks of obsolescence or loss have been transferred to the wholesaler, the wholesaler has accepted the products in accordance with the sales contract, the acceptance provisions have lapsed or the Group has objective evidence that all criteria for acceptance have been satisfied. Sales are normally made with a credit term of 60 days. The element of financing is deemed immaterial and is disregarded in the measurement of revenue. |
Sale of goods - retail |
The Group operates a garage forecourt for the sale of vehicles and certain related products. Sales of goods are recognised on sale to the customer, which is considered the point of delivery. Retail sales are usually by cash, credit or payment card. Sales are made to retail customers with a right to return within 28 days, subject to certain conditions regarding the usage. Accumulated experience is used to estimate and provide for such returns at the time of sale. The Group does not operate any loyalty programmes. |
Sale of services |
The Group sells vehicle servicing to retail and wholesale customer. Revenue is recognised in the accounting period in which the services are rendered when the outcome of contract can be estimated reliably. |
Interest income |
Interest income is recognised using the effective interest rate method. |
Dividend income |
Dividend income is recognised when the right to receive payment is established. |
Tangible fixed assets |
Plant and machinery | - |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Alphamore Corporation Ltd (Registered number: 03974169) |
Notes to the Consolidated 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 Consolidated Income Statement, 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 |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet 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. |
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. |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
Basic financial instruments |
Basic financial assets, including trade and other receivables, cash and bank balances and investments in commercial paper, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. |
Basic financial liabilities, including trade and other payables, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. |
3. | TURNOVER |
The turnover and profit before taxation are attributable to the principal activities of the group. |
4. | EMPLOYEES AND DIRECTORS |
31.12.23 | 31.12.22 |
£ | £ |
Wages and salaries | 624,304 | 672,285 |
Social security costs | 77,032 | 88,519 |
Other pension costs | 22,910 | 19,960 |
724,246 | 780,764 |
Alphamore Corporation Ltd (Registered number: 03974169) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
4. | EMPLOYEES AND DIRECTORS - continued |
The average number of employees during the year was as follows: |
31.12.23 | 31.12.22 |
Directors | 5 | 5 |
Sales | 5 | 5 |
After Sales | 14 | 14 |
Administration | 2 | 2 |
31.12.23 | 31.12.22 |
£ | £ |
Directors' remuneration | 241,736 | 132,279 |
Directors' pension contributions to money purchase schemes | 5,793 | 708 |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes | 4 | 3 |
Information regarding the highest paid director for the year ended 31 December 2023 is as follows: |
31.12.23 |
£ |
Emoluments etc | 63,733 |
Pension contributions to money purchase schemes | 2,533 |
5. | OPERATING PROFIT |
The operating profit is stated after charging: |
31.12.23 | 31.12.22 |
£ | £ |
Other operating leases | 96,585 | 92,500 |
Depreciation - owned assets | 17,790 | 9,961 |
Auditors' remuneration | 15,585 | 14,000 |
6. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
31.12.23 | 31.12.22 |
£ | £ |
Current tax: |
UK corporation tax | 92,870 | 113,809 |
Adjustments for prior periods | (523 | ) | - |
Total current tax | 92,347 | 113,809 |
Deferred tax | (241 | ) | 5,942 |
Tax on profit | 92,106 | 119,751 |
Alphamore Corporation Ltd (Registered number: 03974169) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
7. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
8. | TANGIBLE FIXED ASSETS |
Group |
Plant and |
machinery |
£ |
COST |
At 1 January 2023 | 456,986 |
Additions | 8,108 |
At 31 December 2023 | 465,094 |
DEPRECIATION |
At 1 January 2023 | 420,607 |
Charge for year | 17,790 |
At 31 December 2023 | 438,397 |
NET BOOK VALUE |
At 31 December 2023 | 26,697 |
At 31 December 2022 | 36,379 |
9. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 January 2023 |
and 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
10. | STOCKS |
Group |
31.12.23 | 31.12.22 |
£ | £ |
Stocks | 1,175,160 | 1,201,231 |
Alphamore Corporation Ltd (Registered number: 03974169) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
11. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
31.12.23 | 31.12.22 | 31.12.23 | 31.12.22 |
£ | £ | £ | £ |
Trade debtors | 1,944,016 | 694,020 |
Amounts owed by group undertakings | - | - |
Other debtors | 500,000 | 42,228 |
Prepayments | 46,302 | 43,924 |
2,490,318 | 780,172 |
12. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
31.12.23 | 31.12.22 | 31.12.23 | 31.12.22 |
£ | £ | £ | £ |
Trade creditors | 572,253 | 265,375 |
Tax | 92,870 | 113,809 |
Social security and other taxes | - | 538 |
VAT | 135,905 | 188,048 | - | - |
Other creditors | 1,432,063 | 2,008,494 |
Accrued expenses | 1,064,649 | 798,053 |
3,297,740 | 3,374,317 |
Other creditors in 2023 include an amount of £1,000,000 which represents the contribution to the Employee Benefit Trust which was made during January 2024 as part of the funding of the shares sold to the trust in 2022. |
13. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Non-cancellable operating | leases |
31.12.23 | 31.12.22 |
£ | £ |
Within one year | 177,652 | 82,423 |
Between one and five years | 449,034 | 28,125 |
In more than five years | 426,617 | - |
1,053,303 | 110,548 |
14. | PROVISIONS FOR LIABILITIES |
Group |
31.12.23 | 31.12.22 |
£ | £ |
Deferred tax |
Accelerated capital allowances | 6,622 | 6,863 |
Alphamore Corporation Ltd (Registered number: 03974169) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
14. | PROVISIONS FOR LIABILITIES - continued |
Group |
Deferred |
tax |
£ |
Balance at 1 January 2023 | 6,863 |
Credit to Income Statement during year | (241 | ) |
Balance at 31 December 2023 | 6,622 |
15. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 31.12.23 | 31.12.22 |
value: | £ | £ |
A Ordinary of £0.01 | 1p | 16 | 16 |
15,200 | B Ordinary of £0.01 | 1p | 152 | 152 |
1,600 | C Ordinary of £0.01 | 1p | 16 | 16 |
1,600 | D Ordinary of £0.01 | 1p | 16 | 16 |
200 | 200 |
16. | RESERVES |
Group |
Capital |
Retained | Share | redemption |
earnings | premium | reserve | Totals |
£ | £ | £ | £ |
At 1 January 2023 | 2,114,169 | 465,555 | 5,556 | 2,585,280 |
Profit for the year | 291,445 | - | - | 291,445 |
Capital contribution to the |
Alphamore Corporation Employee |
Ownership Trust | (1,000,000 | ) | - | - | (1,000,000 | ) |
At 31 December 2023 | 1,405,614 | 465,555 | 5,556 | 1,876,725 |
Alphamore Corporation Ltd (Registered number: 03974169) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
17. | CONTINGENT LIABILITIES |
Contingent Liability to Principal Supplier |
The subsidiary trading company has provided PSA Wholesale Limited with a debenture dated 25 November 2005 covering fixed and floating assets of the company against debts due to PSA Wholesale Limited. The relevant debt is contained within trade creditors. |
During the year as a result of the company being owned by an employee benefit trust, the subsidiary company placed a £500,000 deposit with PSA Wholesale Limited as extra security for credit facilities advanced. The deposit is shown under other debtors in the balance sheet. |
Contingent Liability to Employee Benefit Trust |
Due to sale of the shares into the Employee Ownership Trust (EOT) in 2022 a contingent liability was created in respect of the outstanding lability to the EOT for the funding of the shares amounting to £1.5m. The potential liability payable is subject to the post deal profitability of the group, with the remaining contingent liability being as shown below: |
2023 | 2022 |
£ | £ |
Within 1 year | 100,000 | 1,000,000 |
Within 1-2 years | 100,000 | 100,000 |
Within 3-5 years | 300,000 | 300,000 |
over 5 years | - | 100,000 |
500,000 | 1,500,000 |
18. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
The following advances and credits to a director subsisted during the years ended 31 December 2023 and 31 December 2022: |
31.12.23 | 31.12.22 |
£ | £ |
P J H Ambrose |
Balance outstanding at start of year | - | 459,532 |
Amounts advanced | - | 20,468 |
Amounts repaid | - | (480,000 | ) |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year | - | - |
P J H Ambrose resigned as a director on 1 November 2022. |
19. | RELATED PARTY DISCLOSURES |
Alphamore Corporation Ltd (Registered number: 03974169) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
Other related parties |
On 1 November 2022 related parties consisting of Mr P J H Ambrose and various Ambrose family trusts lent the company £1,644,286 to enable the company to sell the shares to an Employee Ownership Trust without having to borrow money externally. The loan was to ensure that the group had sufficient working capital after going through a company reorganisation. The loan will be repaid when trading conditions allow. The loan was repaid during the year ending 2023. |
31.12.23 | 31.12.22 |
£ | £ |
Capital contribution to related party | 1,000,000 | 5,133,000 |
20. | ULTIMATE CONTROLLING PARTY |
The group is controlled by the Peter Ambrose (Castleford) Employee Ownership Trust which owns 100% of the ordinary share capital of the group. |