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Company registration number: 00336727







ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 DECEMBER 2023


HWM SPORTS CARS LIMITED






































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HWM SPORTS CARS LIMITED
 


 
COMPANY INFORMATION


Directors
N A Harting 
G Jenner 
N A Hayfield 




Company secretary
N A Harting



Registered number
00336727



Registered office
Bridge Motor Works
New Zealand Avenue

Walton on Thames

Surrey

KT12 1AT




Independent auditors
Menzies LLP
Chartered Accountants & Statutory Auditor

Ashcombe House

5 The Crescent

Leatherhead

Surrey

KT22 8DY




Bankers
Barclays Bank plc
Ranger House

Walnut Tree Close

Guildford

Surrey

GU1 4UL




Solicitors
Cheyney Goulding LLP
Ward House

6 Ward Street

Guildford

Surrey

GU1 4LH





 


HWM SPORTS CARS LIMITED
 



CONTENTS



Page
Strategic Report
1
Directors' Report
2 - 3
Independent Auditors' Report
4 - 7
Statement of Income and Retained Earnings
8
Statement of Financial Position
9
Notes to the Financial Statements
10 - 20

 


HWM SPORTS CARS LIMITED
 


 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

Business review
 
The business of the Company is that of a franchised motor dealership for Aston Martin. Despite the slump in the used car market our business largely outperformed financial plan and revenue grew from 2022. An increase cost base did decrease profit year on year.
The new car market has been challenging in the economic backdrop of rising interest rates. A full year of DBX sales bolstered a product line that is due to be refreshed in 2024. Our outlook remains positive with several model changes planned creating a healthy future order bank.
The used car market saw two defining halves to the year as the second started a realigning of market values. With many dealers quite rightly cashing out of vehicles in H2 and into 2024. Overall we did see a small reduction in margins but still managed to increase our used franchised sales year on year. 
The strength of our aftersales business again proved itself outperforming the financial plan and 2022. It also contributed with a superb 88% absorption rate even with an increasing cost base.

Principal risks, uncertainties and future developments
 
General concerns of market stability and rising interest rates seem to be lessening as 2024 progresses. With a general election due in July 2024 it would be a surprise if any drastic policies including significant base rate reductions were introduced to affect our business. However a change in government could destabilise and provide uncertainty.

Key performance indicators
 
Our business measures performance using many key indicators throughout each department. The headline business KPI’s are:

2023
2022
          
Turnover

£33,567,194

£29,729,834
 
Unit Sales (exc. non franchise)

202

177
 
Overhead absorption

88%

86%
 
Net profit %

0.5%

0.8%
 


This report was approved by the board and signed on its behalf.



................................................
N A Harting
Director

Date: 22 August 2024
Page 1

 


HWM SPORTS CARS LIMITED
 


 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

The directors present their report and the financial statements for the year ended 31 December 2023.

Directors

The directors who served during the year were:

N A Harting 
G Jenner 
N A Hayfield 

Directors' responsibilities statement

The directors are responsible for preparing the Strategic Report, the Directors' Report 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the 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 for the Company's financial statements and then apply them consistently;

make judgments 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 to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

Matters covered in the strategic report

Where a company has chosen in accordance with section 414C(11) of the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 to set out in the company's strategic report information required by schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 it must be stated in the Directors' Report that it has done so. This includes information that would have been included in the business review and the principal risks and uncertainties.

Results and dividends

The profit for the year, after taxation, amounted to £154,585 (2022 - £241,192).

A dividend of £91.84 per share (2022 - £146.95) was declared during the year on the Ordinary shares.
Page 2

 


HWM SPORTS CARS LIMITED
 


 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023


Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

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

Auditors

Under section 487(2) of the Companies Act 2006Menzies LLP will be deemed to have been reappointed as auditors 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.

This report was approved by the board and signed on its behalf.
 





................................................
N A Harting
Director

Date: 22 August 2024
Page 3

 


HWM SPORTS CARS LIMITED
 

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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HWM SPORTS CARS LIMITED

Opinion


We have audited the financial statements of HWM Sports Cars Limited (the 'Company') for the year ended 31 December 2023, which comprise the Statement of Income and Retained Earnings, the Statement of Financial Position and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the 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 United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


Conclusions relating to going concern


In auditing the financial statements, we have concluded that the 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 other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual ReportOur opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.


We have nothing to report in this regard.


Page 4

 


HWM SPORTS CARS LIMITED


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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HWM SPORTS CARS LIMITED (CONTINUED)

Opinion on other matters prescribed by the Companies Act 2006
 

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


the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.


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


adequate accounting records have not been kept, 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 Directors' Responsibilities Statement set out on page 2, 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 is 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.


Page 5

 


HWM SPORTS CARS LIMITED


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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HWM SPORTS CARS LIMITED (CONTINUED)

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 an Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
The Company is subject to laws and regulations that directly affect the financial statements including financial reporting legislation. We determined that the following laws and regulations were most significant including:
 
The Companies Act 2006;
Financial Reporting Standard 102;
UK employment legislation
UK health and safety legislation; and
General Data Protection Regulations

We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.

We understood how the Company are complying with those legal and regulatory frameworks by making inquiries to management and those responsible for legal and compliance procedures.
The engagement partner assessed whether the engagement team collectively had the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations. The assessment did not identify any issues in this area.

We assessed the susceptibility of the Company's financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the engagement team included:

Identifying and assessing the design effectiveness of controls that management has in place to prevent and detect fraud;
Understanding how those charged with governance considered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process;
Challenging assumptions and judgements made by management in its significant accounting estimates; and
Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations.

As a result of the above procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas:

Timing of revenue recognition; and
Posting of unusual journals and complex transactions.
The use of management override of controls to manipulate results.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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 Auditors' Report.


Page 6

 


HWM SPORTS CARS LIMITED


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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HWM SPORTS CARS LIMITED (CONTINUED)

Use of our report
 

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





Andrew Hookway FCA (Senior Statutory Auditor)
for and on behalf of
Menzies LLP
Chartered Accountants
Statutory Auditor
Ashcombe House
5 The Crescent
Leatherhead
Surrey
KT22 8DY

22 August 2024
Page 7

 


HWM SPORTS CARS LIMITED
 


 
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
Note
£
£

  

Turnover
 4 
33,567,194
29,729,834

Cost of sales
  
(32,085,277)
(28,235,561)

Gross profit
  
1,481,917
1,494,273

Administrative expenses
  
(1,271,505)
(1,199,028)

Other operating income
 5 
9,000
21,667

Operating profit
  
219,412
316,912

Interest receivable and similar income
 9 
5,748
4,654

Interest payable and similar expenses
 10 
(33,254)
(22,663)

Profit before tax
  
191,906
298,903

Tax on profit
 11 
(37,321)
(57,711)

Profit after tax
  
154,585
241,192

  

  

Retained earnings at the beginning of the year
  
2,367,026
2,525,834

  
2,367,026
2,525,834

Profit for the year
  
154,585
241,192

Dividends declared and paid
  
(250,000)
(400,000)

Retained earnings at the end of the year
  
2,271,611
2,367,026
There were no recognised gains and losses for 2023 or 2022 other than those included in the statement of income and retained earnings.

The notes on pages 10 to 20 form part of these financial statements.

Page 8

 


HWM SPORTS CARS LIMITED
REGISTERED NUMBER:00336727



STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Tangible fixed assets
 13 
229,653
212,135

  
229,653
212,135

Current assets
  

Stocks
 14 
8,291,298
6,295,185

Debtors: amounts falling due within one year
 15 
7,300,270
3,288,826

Bank and cash balances
  
382,136
1,107,969

  
15,973,704
10,691,980

Creditors: amounts falling due within one year
 16 
(13,460,003)
(7,933,754)

Net current assets
  
 
 
2,513,701
 
 
2,758,226

Total assets less current liabilities
  
2,743,354
2,970,361

Creditors: amounts falling due after more than one year
 17 
(260,000)
(390,000)

Provisions for liabilities
  

Deferred tax
 19 
(5,610)
(7,202)

  
 
 
(5,610)
 
 
(7,202)

Net assets
  
2,477,744
2,573,159


Capital and reserves
  

Called up share capital 
 20 
2,722
2,722

Share premium account
 21 
159,333
159,333

Capital redemption reserve
 21 
41,306
41,306

Other reserves
 21 
2,772
2,772

Profit and loss account
 21 
2,271,611
2,367,026

  
2,477,744
2,573,159


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




................................................
N A Harting
Director

Date: 22 August 2024

The notes on pages 10 to 20 form part of these financial statements.

Page 9

 


HWM SPORTS CARS LIMITED
 


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

1.


Company information

HWM Sports Cars Limited is a private company limited by shares, incorporated in the United Kingdom under the Companies Act 2006 and is registered in England and Wales. The address of the Company's registered office and principal place of business are the same and are shown on the company information page. 

2.Accounting policies

  
2.1

Basis of preparation

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

 
2.2

Financial Reporting Standard 102 - reduced disclosure exemptions

The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
the requirements of Section 7 Statement of Cash Flows;
the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A.

This information is included in the consolidated financial statements of the Company's ultimate parent Company, Burwater Holdings Limited as at 31 December 2023 and these financial statements may be obtained from Companies House, Crown Way, Cardiff, CF14 3UZ.

  
2.3

Revenue recognition

Revenue is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax.
Sales of motor vehicles are recognised when substantially all of the risks and rewards of ownership have been transferred to the customer, generally deemed to be at the time of delivery.
Sales of parts and accessories are recognised on delivery to the customer. 
Service and bodyshop work are recognised on the completion of the agreed work.

  
2.4

Operating leases

Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.

 
2.5

Tangible 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.

Page 10

 


HWM SPORTS CARS LIMITED
 


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

2.Accounting policies (continued)


2.5
Tangible assets (continued)

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

Depreciation is provided on the following basis:

Leasehold property
-
10%
Plant and machinery
-
20%
Motor vehicles
-
25%
Fixtures and fittings
-
25%
Equipment
-
30%

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.

  
2.6

Stocks

Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.

 
2.7

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 Statement of Financial Position. The assets of the plan are held separately from the Company in independently administered funds.

  
2.8

Financial Instruments

Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as either 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.

 
2.9

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.

 
2.10

Borrowing costs

All borrowing costs are recognised in the Statement of Income and Retained Earnings in the year in which they are incurred.

Page 11

 


HWM SPORTS CARS LIMITED
 


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

2.Accounting policies (continued)

 
2.11

Current and deferred taxation

The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively.

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 reporting date in the countries where the Company operates and generates income.


3.


Judgments in applying accounting policies and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
The directors have made the following estimates and judgements deemed to be significant to the financial statements:
Stocks
Consideration has been given to the level of provision required against vehicle stocks. In determining the provision required the directors have used guidance from independent valuation tools and their knowledge of the industry.


4.


Turnover

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


2023
2022
£
£

Sales of vehicles
26,389,617
22,199,088

Sales of parts
5,702,243
6,143,649

Services of vehicles
1,475,334
1,387,097

33,567,194
29,729,834


All turnover arose within the United Kingdom.

Page 12

 


HWM SPORTS CARS LIMITED
 


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

5.


Other operating income

2023
2022
£
£

Sundry income
9,000
21,667

9,000
21,667



6.


Operating profit

The operating profit is stated after charging:


2023
2022
£
£



Depreciation of tangible fixed assets
58,958
49,794

Fees payable to the Company's auditor and its associates for the audit of the Company's annual financial statements
18,900
16,100

Defined contribution pension cost
57,029
57,469

Operating lease rentals
53,245
57,579


7.


Staff costs

Staff costs, including directors' remuneration, were as follows:


2023
2022
£
£

Wages and salaries
1,287,249
1,198,708

Social security costs
136,067
130,667

Pension costs
57,029
57,469

1,480,345
1,386,844


The average monthly number of employees, including the directors, during the year was as follows:


        2023
        2022
            No.
            No.







Administrative staff
3
4



Number of operating staff
33
31

36
35

Page 13

 


HWM SPORTS CARS LIMITED
 


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

8.


Directors' remuneration

The directors aggregate remuneration in respect of qualifying services was:


2023
2022
£
£

Directors' emoluments
138,209
140,448

Company contributions to defined contribution pension schemes
13,286
12,631

151,495
153,079


During the year retirement benefits were accruing to 2 directors (2022 - 2) in respect of defined contribution pension schemes.


9.


Interest receivable

2023
2022
£
£


Other interest receivable
5,748
4,654

5,748
4,654


10.


Interest payable and similar expenses

2023
2022
£
£


Bank interest payable
33,254
22,663

33,254
22,663

Page 14

 


HWM SPORTS CARS LIMITED
 


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

11.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
45,255
52,915

Adjustments in respect of previous periods
(6,342)
134


Total current tax
38,913
53,049

Deferred tax


Origination and reversal of timing differences
(1,592)
4,662

Total deferred tax
(1,592)
4,662


Tax on profit
37,321
57,711

Factors affecting tax charge for the year

The tax assessed for the year is lower than (2022 - higher than) the weighted average rate of corporation tax in the UK of 23.52% (2022 - 19.00%). The differences are explained below:

2023
2022
£
£


Profit on ordinary activities before tax
191,906
298,903


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 23.52% (2022 - 19.00%)
45,136
56,792

Effects of:


Expenses not deductible for tax purposes
607
241

Adjustments to tax charge in respect of prior periods
(6,342)
134

Fixed asset differences
1,015
(575)

Adjustments in respect of previous periods - deferred tax
9,187
-

Remeasurement of deferred tax for changes in tax rates
(638)
-

Non-taxable income
-
1,119

Group relief
(11,644)
-

Total tax charge for the year
37,321
57,711


12.


Dividends

2023
2022
£
£


Dividends paid
250,000
400,000

Page 15

 


HWM SPORTS CARS LIMITED
 


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

13.


Tangible fixed assets





Leasehold property
Plant and machinery
Motor vehicles
Fixtures and fittings
Equipment
Total

£
£
£
£
£
£



Cost or valuation


At 1 January 2023
1,706,668
188,776
62,277
187,432
76,384
2,221,537


Additions
14,919
-
49,770
6,719
5,068
76,476



At 31 December 2023

1,721,587
188,776
112,047
194,151
81,452
2,298,013



Depreciation


At 1 January 2023
1,563,947
180,097
48,907
144,071
72,380
2,009,402


Charge for the year on owned assets
16,677
3,383
18,305
15,411
5,182
58,958



At 31 December 2023

1,580,624
183,480
67,212
159,482
77,562
2,068,360



Net book value



At 31 December 2023
140,963
5,296
44,835
34,669
3,890
229,653



At 31 December 2022
142,721
8,679
13,370
43,361
4,004
212,135


14.


Stocks

2023
2022
£
£

Cars and parts
8,291,298
6,295,185

8,291,298
6,295,185


The difference between purchase price and their replacement cost is not material. 

Page 16

 


HWM SPORTS CARS LIMITED
 


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

15.


Debtors

2023
2022
£
£


Trade debtors
713,575
712,911

Amounts owed by group undertakings
349,249
45,520

Other debtors
4,966,581
2,129,318

Prepayments and accrued income
784,098
207,972

Tax recoverable
486,767
193,105

7,300,270
3,288,826



16.


Creditors: Amounts falling due within one year

2023
2022
£
£

Bank loans
130,000
130,000

Trade creditors
11,272,608
5,687,770

Amounts owed to group undertakings
1,483,220
1,392,030

Corporation tax
45,255
52,892

Other taxation and social security
40,934
38,975

Other creditors
212,260
324,990

Accruals and deferred income
275,726
307,097

13,460,003
7,933,754


Included within other creditors is an amount of £100,000 (2022 - £245,500) for payments received on account of customer orders. 


17.


Creditors: Amounts falling due after more than one year

2023
2022
£
£

Bank loans
260,000
390,000

260,000
390,000


Page 17

 


HWM SPORTS CARS LIMITED
 


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

18.


Loans


Analysis of the maturity of loans is given below:


2023
2022
£
£

Amounts falling due within one year

Bank loans
130,000
130,000


130,000
130,000

Amounts falling due 1-2 years

Bank loans
130,000
130,000


130,000
130,000

Amounts falling due 2-5 years

Bank loans
130,000
260,000


130,000
260,000


390,000
520,000


Interest is payable on the loan at a rate of 3% per annum.
The bank loans are secured by fixed and floating charges over the assets of the Company.

19.


Deferred taxation




2023


£






At beginning of year
(7,202)


Charged to profit or loss
1,592



At end of year
(5,610)

The provision for deferred taxation is made up as follows:

2023
2022
£
£


Accelerated capital allowances
(5,610)
(7,202)

(5,610)
(7,202)

Page 18

 


HWM SPORTS CARS LIMITED
 


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

20.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



2,722 (2022 - 2,722) Ordinary shares of £1.00 each
2,722
2,722

Each ordinary share carries voting rights and there are no restrictions on distribution of dividends.



21.


Reserves

Share premium account

The share premium account records the amount above the nominal value received for shares issued.

Capital redemption reserve

The capital redemption reserve records the nominal value of shares repurchased by the Company.

Other reserves

The other reserves relate to historical capital reserves.

Profit and loss account

The profit and loss account reserve records retained earnings and accumulated losses.


22.


Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £57,029 (2022 - £57,469). Contributions totalling £6,131 (2022 - £5,807) were payable to the fund at the reporting date and are included in creditors.


23.


Operating leases

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

2023
2022
£
£


Not later than 1 year
31,291
29,621

Later than 1 year and not later than 5 years
5,186
3,399

36,477
33,020

Page 19

 


HWM SPORTS CARS LIMITED
 


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

24.


Contingent liabilities

In keeping with its status as a franchisee it will be necessary for the Company to make future expenditure to satisfy Aston Martin’s franchise requirements. The Company’s workshop at New Zealand Avenue is currently in need of remodelling and refurbishment to satisfy such requirements and the costs for the work necessary to effect those changes is currently being evaluated.  


25.


Related party transactions

During the year the Company was charged £240,000 (2022 - £240,000) by the ultimate parent company. 
At the year end a balance of £1,483,220 (2022 - £1,392,030) was due to the direct parent company. No interest was charged on the intercompany loan.
At the year end a balance of £Nil (2022 - £45,520) was due to the ultimate parent company. No interest was charged on the intercompany loan.
At the year end a balance of £349,249 (2022 - £Nil) was due from a fellow subsidiary undertaking.
During the year the Company paid rent of £90,909 (2022 - £81,500) to a family trust of which the beneficiaries are members of a director's family. 


26.


Ultimate parent company

The directors consider the ultimate parent undertaking to be Burwater Holdings Limited, a company which is registered in England and operates from the same registered address as HWM Sports Cars Limited.

The smallest and largest group of undertakings for which group accounts are drawn up are those headed by Burwater Holdings Limited. Copies of the group accounts are publicly available at Companies' House.


27.


Ultimate controlling party

The ultimate controlling party is considered to be N. A. Harting by virtue of his controlling shareholding in Burwater Holdings Limited.

 
Page 20