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REGISTERED NUMBER: 10148577 (England and Wales)















STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

FOR

HOLDCROFT HYUNDAI LIMITED

HOLDCROFT HYUNDAI LIMITED (REGISTERED NUMBER: 10148577)

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










Page

Company Information 1

Strategic Report 2 to 7

Report of the Directors 8 to 10

Report of the Independent Auditors 11 to 14

Statement of Income and Retained Earnings 15

Statement of Financial Position 16

Notes to the Financial Statements 17 to 27


HOLDCROFT HYUNDAI LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31 DECEMBER 2023







DIRECTORS: T G Holdcroft
D A Holdcroft
M E Holdcroft
P L Holdcroft
M J McCormick
C Greenhall



REGISTERED OFFICE: C/o TG Holdcroft (Motors) Ltd
Leek Road
Hanley
Stoke on Trent
Staffordshire
ST1 6AT



BUSINESS ADDRESS: Leek Road
Hanley
Stoke on Trent
Staffordshire
ST1 6AT



REGISTERED NUMBER: 10148577 (England and Wales)



AUDITORS: DPC Accountants Limited
Stone House
Stone Road Business Park
Stoke on Trent
ST4 6SR



BANKERS: Barclays Bank Plc
Town Road
Hanley
Stoke On Trent
Staffordshire
ST1 2PJ

HOLDCROFT HYUNDAI LIMITED (REGISTERED NUMBER: 10148577)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023


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

PRINCIPAL ACTIVITY AND REVIEW OF THE BUSINESS
The principal activity of the company is that of motor vehicle sales, motor vehicle servicing, motor vehicle repairs and motor vehicle parts sales. Holdcroft Hyundai Ltd represents the Hyundai brand in Stoke on Trent, Crewe, Ellesmere Port (Cheshire Oaks), Stafford, Macclesfield, Stockport and Oldham.

2023 has been a challenging year for the organisation with several outside factors having a negative impact to the overall profitability of the business. Interest charges being the one that has had the greatest impact with a 225% increase in Stocking plan interest versus 2022.

Our sales departments continued to perform to a very high level and are navigating a changing new vehicle marketplace with the migration from traditional combustion engines to more environmentally friendly Hybrid and Electric vehicles. The range of vehicles available under the Hyundai brand are very prominent in this marketplace and new products launched through the year have been well received by our customers.

New car retail unit sales decreased versus the 2022 year by around 9% which is better than the overall new car retail marketplace. However, we did have a significant unit increase in our Motability sales channel (35.6%). Overall turnover for the company remained fairly static at £296m with a small increase in gross margin percentage to 4.69% (4.36% in 2022). Our used retail unit volumes were very strong through the first half of 2023 and we ended the year 5.5% up on the previous 12 months. The final quarter of 2023 did see a market correction on used valuations but with focus on stocking levels and careful purchasing we did come out of this in a solid position to start 2024.

The aftersales departments of our Hyundai businesses have performed incredibly well through the year and both Service and Parts revenues have held firm. Our Parts trade division in particular continues to win additional business and provides an efficient, reliable and competitive service to franchised dealers, independent garages and accident repair centres across a large geographical area from the south midlands to the north of Manchester.

Customer satisfaction remains at the heart of our business and we are committed to providing an industry leading consumer journey for all of our customers. Throughout the year we have harvested feedback using several independent platforms from many satisfied customers. They highlight product knowledge, good attitude and professionalism as the top characteristics they see in our sales teams. We will continue to invest in our employees through training and development to ensure they have the ability to deliver customer service at the highest possible level. Through 2024 we will implement a new internship scheme where we will develop the next generation of talent that will take our business forward. This scheme will expose individuals to each department of a retail motor dealership, also head office functions such as Accounts and Marketing to give a fully rounded education. Our people have always and will always be our most important asset and their representation of our culture will not be left to chance.

The needs of our customers, employees, suppliers and business stakeholders required careful consideration through the many key decision making points during the year and the senior management team of our Holdcroft Hyundai outlets have again risen to these challenges.

2024 will bring its own set of challenges and obstacles for us to overcome but with a strong, stable leadership team we will endeavour to make the speedy decisions for the benefit of all our stakeholders within the organisation.

HOLDCROFT HYUNDAI LIMITED (REGISTERED NUMBER: 10148577)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023


FUTURE DEVELOPMENTS
The company continues to develop both current and new relationships with our OEM, finance, insurance and technology partners in pursuit of opportunities to enhance the organisation for the future. We have an open dialogue with a number of new OEM entrants that are looking to expand into both the European and the UK market and any decision we take will be with the best interests of all of our enlightened shareholders at the forefront. The only certainty within the retail motor industry for the medium term is change, and we, as an organisation, aim to ensure that we engage with all partners and fully explore all opportunities on their own merits as these present themselves.

We will continue investments in technology to advance both our customer experiences as well as that of our employees and be open minded to new initiatives that the changing landscape of global retail in general is experiencing. Within our businesses the focus of the senior team is always on the future and making changes that will benefit the entire organisation on multiple levels.

PRINCIPAL RISKS AND UNCERTAINTIES
There are a range of risks and uncertainties facing the company and the comments listed below are not intended to be exhaustive. The focus is on those specific risks and uncertainties that the Directors believe could have a significant impact on the company's performance.

As with many organisations of our size, the business environment in which we operate continues to be challenging. The retail vehicle market in the UK is undergoing significant changes to product availability with many new entrants coming into the UK market. With such a high level of choice for the consumer it will make it difficult for traditional market participants to retain their current share. We will continue to work closely with our current manufacturer partners as well as exploring opportunities with new entrants if they are in the best interests of our overall objectives.

CO2 emission regulations will also have a significant effect on the industry over the coming years with the UK government extending their deadline for the phasing out of Petrol and Diesel cars and other vehicles by 2030 to 2035. We still feel there are huge upgrades required to the charging infrastructure in the UK to be able to accommodate this increase in the number of Electric Vehicles that will be on our roads and it remains an open question how this will be achieved.

A significant number of vehicle manufacturers continue to push forward with their "direct to customer" new car sales model. This will see a huge change from the traditional dealer / customer relationship and it brings with it an uncertainty around the financial outcomes for franchised dealers.

Ultimately levels of business activity and profitability will be affected by outside factors such as consumer confidence and product cycles but we will continue to follow our processes and business principles to achieve our financial goals.

The company will strive to provide an innovative service to its existing client base, alongside continued exploitation of all the internet & social media platforms to develop in a profitable way, in what still remains to be an extremely price sensitive market.

With these risks and uncertainties in mind, we are aware that any plans for the future development of the group may be subject to unforeseen events outside of our control.


HOLDCROFT HYUNDAI LIMITED (REGISTERED NUMBER: 10148577)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

SECTION 172(1) STATEMENT
The Board of Directors always consider, both individually and together, that they have acted in the way they consider, in good faith, would be most likely to promote the success of the company for the benefit of its members as a whole (having regard to the stakeholders and matters set out in s172(1)(a)-(f) of the Companies Act 2006) in the decisions taken during the year ended 31 December 2023.

Our plan is designed to have a long-term beneficial impact on the company and to contribute to its success in delivering a high quality of service across all our outlets.

Our team members are fundamental to the delivery of our plan. We aim to be a responsible employer in our approach to the pay and benefits our team members receive. The health, safety and well-being of our team members is one of our primary considerations in the way we do business. Engagement with suppliers and customers is also key to our success. We meet with our major manufacturing partners regularly throughout the year and take the appropriate action, when necessary, to prevent involvement in modern slavery, corruption, bribery and breaches of competition law.

Our plan took into account the impact of the Group's operations on the community and environment and our wider social responsibilities, in particular how we comply with environmental legislation and pursue waste-saving opportunities and react promptly to local community concerns.

As the Board of Directors, our intention is to behave responsibly and ensure that the management operate the business in a responsible manner, operating within the high standards of business conduct and good governance expected from a business such as ours and in doing so, will contribute to the delivery of our plan. The intention is to nurture our reputation, through both the construction and delivery of our plan that reflects our beliefs and culture.

As the Board of Directors, our intention is to behave responsibly towards all our enlightened shareholders and treat them fairly and equally, so they too may benefit from the successful delivery of our plan.


HOLDCROFT HYUNDAI LIMITED (REGISTERED NUMBER: 10148577)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

ENGAGEMENT WITH SUPPLIERS, CUSTOMERS AND OTHERS
We will continue to strengthen our relationship with all of our long term brand partners, customers and suppliers through these periods of change and remain able and willing to adapt to whatever requirements are necessary to ensure a successful outcome for all stakeholders.


Stakeholder
Why it is important to
engage

Ways to engage
Stakeholders' key
interests

Customers Engagement with our
customers enables us to
understand our
customers' needs and
empowers us to deliver
relevant information,
new models and
aftersales services
whilst retaining existing
customers and
attracting new ones.
Website, Social media,
face to face, dealership
locations, telephone and
satisfaction surveys.
Availability of product
range, financial offers
and aftersales services
together with
convenience, reliability,
trust and the ability to
officially engage.

Employees Engagement between
our employees and our
customers is the primary
method by which we are
able to exhibit the
Holdcroft Brand. Our
employees are
fundamental in
delivering the customer
experience and the key
to our business
success.
Recognition and reward
environment, regular
training and
apprenticeship
programmes.
Career progression,
remuneration and
benefits, training and
development, employee
interaction and
well-being programmes.

Suppliers Engagement with our
supply chain ensures
that we are able to
supply our customers
with motor vehicles and
aftersales products they
desire or require whilst
maintaining supply
security as far as
possible.
Regular supplier
meetings building upon
long term relationships,
product updates,
corporate image
maintenance and
infrastructure support.
Logistical efficiencies,
cost efficiencies,
maintenance of quality
product supply and good
working
relationships.Financial
viability of partners.
Providing our customers
with the best value for
money products.

Government Policies and regulatory
changes can provide
both opportunities or
risks to our operations.
Engaging with HMRC,
VOSA, DVLA, OZEV,
FCA, etc. Submission of
tax returns and payment
of tax.
Payment of the correct
tax at the correct time.
Compliance with all laws
and regulations.


HOLDCROFT HYUNDAI LIMITED (REGISTERED NUMBER: 10148577)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

ETHOS
The ongoing priorities of the business are to consolidate our position and culture within the communities we serve by providing a total customer experience from the initial sales process through to customer service, support and satisfaction. A comprehensive internal and external training and coaching program further supports our aims in providing an unrivalled, consultative experience for all our customers. By achieving this we aim to lead our industry as "the best place to work" for all our employees.

REGULATORY COMPLIANCE
The company is subject to regulatory compliance risk which could arise from a failure to comply with relevant law, regulation or codes of practice. Failure to comply would result in fines, cessation of some business activities or a public reprimand. The company mitigates this risk through a close monitoring and audit of regulatory compliance.

ENVIRONMENTAL POLICY
The company recognises its "Duty of Care" towards the environment whilst carrying out its business activities. The company always places considerable importance on complying with both legal and moral obligations towards the environment.

The company aims to encourage the reduction of energy and water consumption. Use is made of the latest building materials in the construction of new sites and the refurbishment of existing locations. For instance, modern heating and lighting controls are used. The company will assess any and all significant environmental impacts from its operations and will take the appropriate steps to reduce and manage these risks.

NON-FINANCIAL KEY PERFORMANCE INDICATORS
We use many different measurements within the organisation to monitor performance, both financial and non-financial an a daily, weekly and monthly basis. Customer feedback grants us the best possible data around how they feel we have performed versus their expectations, and we canvass this opinion through a number of channels. We periodically ask for feedback when we interact with our customers following either a sale or a service and these questionnaires help us to identify any training or recruitment needs. We also encourage feedback through open channels such as Google Reviews which we monitor daily and have a robust system in place to both respond to and provide action to positive and negative instances alike. We work towards improving these scores on a daily basis and task ourselves with achieving an industry leading standard.

FINANCIAL KEY PERFORMANCE INDICATORS
The Directors monitor the company's progress against its strategic objectives and the financial performance of the company's operations on an extremely regular basis. We consider that our key financial performance indicators are those that communicate the financial performance and strength of the company as a whole; these being turnover, gross margin, return on sales and return on capital employed.

Turnover (Growth)

Growth comes from taking considered risks after studying and analysing our market place in conjunction with the new product offerings available to us.

For the financial year to 31st December 2023 turnover was £296,706,388 versus £286,691,090 for the same period in 2022. The increase in overall new unit volumes was the main factor to this increase.

Gross margin

This years' gross margin was £13,915,537 versus a 2022 result of £12,498,776, this increase in gross margin is in the main due to a lesser mix of corporate business.

Return on Sales

The return on sales for 2023 has reduced to 0.26% versus 0.43% (pre-taxation) in 2022.

HOLDCROFT HYUNDAI LIMITED (REGISTERED NUMBER: 10148577)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023


Return on capital employed
There are a number of methods employed to calculate this particular ratio. The method we have adopted is as follows:-

Pre-tax net profit / net asset value x 100

Return on capital employed at 31st December 2023 was 80.29% versus 135.07% in the year to 31st December 2022.

ON BEHALF OF THE BOARD:





C Greenhall - Director


29 July 2024

HOLDCROFT HYUNDAI LIMITED (REGISTERED NUMBER: 10148577)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 DECEMBER 2023


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

DIVIDENDS
Dividends paid during the year amounted to £600,000. The directors have recommended that there be no final dividend.

FUTURE DEVELOPMENTS
The likely future developments of the business are included in the strategic report.

EVENTS SINCE THE END OF THE YEAR
Information relating to events since the end of the year is given in the notes to the financial statements.

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

T G Holdcroft
D A Holdcroft
M E Holdcroft
P L Holdcroft

Other changes in directors holding office are as follows:

S Holdcroft-Carr - resigned 16 May 2023
M J McCormick - appointed 4 July 2023
C Greenhall - appointed 4 July 2023

GOING CONCERN DISCLOSURE
The Group meets its day-to-day working capital requirements through its bank provided finance facilities and vehicle stocking loans. The Group's forecast and projections, taking account of reasonably possible changes in trading performance, show that the Group should easily be able to operate within the level of its current facilities. The Group has regular discussions with its bankers about its current and future borrowing needs and understands that future requirements will be agreed on acceptable terms. Our overdraft facilities have been renewed post year end with our bankers, Barclays Bank and we will be also reviewing our medium term borrowings through 2024 with them.

The Directors have a reasonable expectation that the Company and Group have adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the annual report and financial statements.


HOLDCROFT HYUNDAI LIMITED (REGISTERED NUMBER: 10148577)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 DECEMBER 2023

ENGAGEMENT WITH EMPLOYEES
The company's policy is to consult, coach and discuss with employees, through staff councils and at meetings, matters likely to affect employees' interests. All principal decisions taken by the company during the financial year are aimed at enhancing both the interests of the business and the interest of its employees who are the enablers of its success.

Information of matters of concern to employees is given through weekly information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the company's performance on a monthly basis via a dedicated employee portal.

There is no employee share scheme at present but the directors are considering the introduction of such a scheme as a means of further encouraging the involvement of employees in the company's performance.

The company's policy is to recruit disabled workers for those vacancies that they are able to fill. All necessary assistance with initial training courses is given. Once employed a career plan is developed so as to ensure suitable opportunities for each disabled person. Arrangements are made wherever possible, for retaining employees who become disabled, to enable them to perform work identified as appropriate to their aptitudes and abilities.

DISCLOSURE IN THE STRATEGIC REPORT
The 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 in relation to future developments of the company.

The strategic report can be found on pages 2 to 6 of these financial statements.

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-select suitable accounting policies and then apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-state whether applicable accounting standards have been followed, subject to any material departures
disclosed and explained in the financial statements;
-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

HOLDCROFT HYUNDAI LIMITED (REGISTERED NUMBER: 10148577)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 DECEMBER 2023


AUDITORS
The auditors are deemed to have been re-appointed in accordance with section 487 of the Companies Act 2006.

ON BEHALF OF THE BOARD:





C Greenhall - Director


29 July 2024

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
HOLDCROFT HYUNDAI LIMITED


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

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

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

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

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

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

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

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

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

Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
HOLDCROFT HYUNDAI LIMITED


Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page nine, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
HOLDCROFT HYUNDAI LIMITED


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:

We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.

Identifying and assessing potential risks related to irregularities
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:

o the nature of the industry and sector, control environment and business performance including the design of the Company's remuneration policies, key drivers for directors' remuneration, bonus levels and performance targets;
o results of our enquiries of management about their own identification and assessment of the risks of irregularities;
o any matters we identified having obtained and reviewed the Company's documentation of their policies and procedures relating to:


o
Identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of noncompliance;


o
detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud;


o
the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations;
o the matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.

Based on this approach, we were able to assess the Company risks and ensure the risks were considered throughout all areas of audit testing. The audit team was professionally sceptical throughout the audit and remained alert for inaccurate or misleading information.

Audit response to risks identified

As a result of performing the above, we identified Financial Conduct Authority and Health and Safety compliance risk as key audit matters related to the potential risk of fraud or irregularities.

Our procedures to respond to risks identified included the following:
o reviewing any audits completed by regulatory bodies in the year and the outcomes of these to ensure no breach of laws and regulations;
o reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;
o enquiring of management concerning actual and potential litigation and claims;
o performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;
o obtained an understanding of provisions and held discussions with management to understand the basis of recognition or non-recognition of tax provisions; and
o in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
HOLDCROFT HYUNDAI LIMITED


Audit testing was completed on a targeted sample basis based on our assessment of risk and materiality. Due 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, 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 fraud or non-compliance with laws and regulations and cannot be expected to detect all fraud and non-compliance with laws and regulations.

As part of an audit in accordance with ISAs (UK), we exercise professional judgement and maintain professional scepticism throughout the audit. We also:
- 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.
- 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.
- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.
- 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 Report of the Auditors 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 Report of the Auditors. However, future events or conditions may cause the company to cease to continue as a going concern.
- 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.

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.




MICHELLE COATES (Senior Statutory Auditor)
for and on behalf of DPC Accountants Limited
Stone House
Stone Road Business Park
Stoke on Trent
ST4 6SR

30 July 2024

HOLDCROFT HYUNDAI LIMITED (REGISTERED NUMBER: 10148577)

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

31.12.23 31.12.22
Notes £    £   

TURNOVER 4 296,706,388 286,691,090

Cost of sales (282,790,851 ) (274,192,314 )
GROSS PROFIT 13,915,537 12,498,776

Distribution costs (363,617 ) (362,023 )
Administrative expenses (12,038,032 ) (10,609,203 )
OPERATING PROFIT 6 1,513,888 1,527,550


Interest payable and similar expenses 8 (734,308 ) (290,956 )
PROFIT BEFORE TAXATION 779,580 1,236,594

Tax on profit 9 (124,155 ) (283,002 )
PROFIT FOR THE FINANCIAL YEAR 655,425 953,592

Retained earnings at beginning of year 634,515 680,923

Dividends 10 (600,000 ) (1,000,000 )

RETAINED EARNINGS AT END OF
YEAR

689,940

634,515

HOLDCROFT HYUNDAI LIMITED (REGISTERED NUMBER: 10148577)

STATEMENT OF FINANCIAL POSITION
31 DECEMBER 2023

31.12.23 31.12.22
Notes £    £   
FIXED ASSETS
Intangible assets 11 442,617 447,133
Tangible assets 12 686,860 432,462
Investments 13 - -
1,129,477 879,595

CURRENT ASSETS
Stocks 14 20,702,068 17,745,343
Debtors 15 15,753,668 17,454,748
Cash at bank - 372,153
36,455,736 35,572,244
CREDITORS
Amounts falling due within one year 16 (36,550,906 ) (35,472,957 )
NET CURRENT (LIABILITIES)/ASSETS (95,170 ) 99,287
TOTAL ASSETS LESS CURRENT
LIABILITIES

1,034,307

978,882

PROVISIONS FOR LIABILITIES 18 (63,367 ) (63,367 )
NET ASSETS 970,940 915,515

CAPITAL AND RESERVES
Called up share capital 19 1,000 1,000
Other reserves 20 280,000 280,000
Retained earnings 20 689,940 634,515
SHAREHOLDERS' FUNDS 970,940 915,515

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





C Greenhall - Director


HOLDCROFT HYUNDAI LIMITED (REGISTERED NUMBER: 10148577)

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


1. STATUTORY INFORMATION

HOLDCROFT HYUNDAI LIMITED is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2. STATEMENT OF COMPLIANCE

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006.

3. ACCOUNTING POLICIES

BASIS OF PREPARING THE FINANCIAL STATEMENTS
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.

The financial statements are prepared in sterling, which is the functional currency of the entity.

FINANCIAL REPORTING STANDARD 102 - REDUCED DISCLOSURE EXEMPTIONS
The entity satisfies the criteria of being a qualifying entity as defined in FRS 102. Its financial statements are consolidated into the financial statements of T G Holdcroft (Holdings) Limited which can be obtained from the registered office of the parent company; being Leek Road, Hanley, Stoke-on-Trent, Staffordshire, ST1 6AT. As such, advantage has been taken of the following disclosure exemptions available under paragraph 1.12 of FRS 102:

- No cash flow statement has been presented for the company.
- No disclosure has been given for the aggregate remuneration of key management personnel.

PREPARATION OF CONSOLIDATED FINANCIAL STATEMENTS
The financial statements contain information about HOLDCROFT HYUNDAI LIMITED as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 400 of the Companies Act 2006 from the requirements to prepare consolidated financial statements as it and its subsidiary undertaking are included by full consolidation in the consolidated financial statements of its parent, T.G. Holdcroft (Holdings) Limited, Leek Road, Hanley, Stoke-on-Trent, ST1 6AT.

HOLDCROFT HYUNDAI LIMITED (REGISTERED NUMBER: 10148577)

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


3. ACCOUNTING POLICIES - continued

SIGNIFICANT JUDGEMENTS AND ESTIMATES
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.

Significant judgements
The carrying value of stock at the year end is reviewed in accordance with expected selling value. Demonstrator models are generally written down by 3% each month unless use would require a more appropriate percentage. Demonstrators that are intended to be used in the business for over twelve months are capitalised as tangible fixed assets and written off over the estimated useful life of 10 years. Used cars are valued against CAP (current auction price) values to ensure their carrying values are reliable.

Key sources of estimation uncertainty
Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. The key assumptions and other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are as described below.

As described in the accounting policies of the financial statements, depreciation of tangible fixed assets has been based on estimated useful lives and residual values deemed appropriate by the directors. Estimated useful lives and residual lives are reviewed annually and revised as appropriate. Revisions take in to account actual asset lives and residual values as evidence by disposals during current and prior accounting periods.

REVENUE RECOGNITION
Turnover represents the total invoice value, excluding value added tax, of sales made during the year, together with commissions and bonuses received as a direct consequence of the invoiced amounts.

Revenue is recognised in the period in which the work is completed.

GOODWILL
Goodwill, being the amount paid in connection with the acquisition of a business in 2017, is being amortised evenly over its estimated useful life of fifty years.

INTANGIBLE ASSETS
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

HOLDCROFT HYUNDAI LIMITED (REGISTERED NUMBER: 10148577)

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


3. ACCOUNTING POLICIES - continued

TANGIBLE FIXED ASSETS
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Freehold property - not depreciated
Plant and machinery - 20% on cost
Motor vehicles - 10% reducing balance

Depreciation on freehold property is not provided as any uncharged depreciation for the year, and any accumulated uncharged depreciation, would be immaterial in aggregate as a result of the group's policy to maintain its properties in good condition, which substantially prolongs their useful economic life and the estimated high residual value of the properties.

Tangible assets which are not depreciated are reviewed for impairment annually by the directors in accordance with Section 17 of FRS102.

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.

IMPAIRMENT OF FIXED ASSETS
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.

For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cashgenerating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets.

For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units.

INVESTMENTS IN SUBSIDIARIES
Investments in subsidiary undertakings are recognised at cost less any provision for impairment.

HOLDCROFT HYUNDAI LIMITED (REGISTERED NUMBER: 10148577)

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


3. ACCOUNTING POLICIES - continued

STOCKS
Motor vehicle stocks are stated at the lower of net purchase price and net realisable value. A review of the net realisable values of stock is conducted on a regular basis and values are adjusted to prevailing market value. The market value is assessed with reference to external benchmarking publications and applying historical industry knowledge on the pricing of those vehicles. by reference to make and specific models. We also ensure stocks that exist at the year end are valued correctly by sampling against further post year end actual sales data. Whilst this data is deemed representative of current values it is possible that ultimate sales values can vary from those applied.

Parts stocks are valued on a first-in, first-out basis and are written down to net realisable value by providing for obsolescence on a time in stock based formula approach.

Consignment vehicle inventories are regarded as being effectively under the control of the company and are included within stock on the balance sheet as the company has the ability to direct the use of, and obtain substantially all of the remaining benefits from, the asset. Control includes the ability to prevent other entities from directing the use of, and obtaining the benefits from, an asset even though legal title has not yet passed. The corresponding liability is included in trade creditors.

FINANCIAL INSTRUMENTS
Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Debt instruments are subsequently measured at amortised cost.

Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately.

For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics.

Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.

Where the contractual obligations of financial instruments (including share capital) are equivalent to a similar debt instrument, those financial instruments are classed as financial liabilities. Financial liabilities are presented as such in the balance sheet. Finance costs and gains or losses relating to financial liabilities are included in the profit and loss account. Finance costs are calculated so as to produce a constant rate of return on the outstanding liability.

Where the contractual terms of share capital do not have any terms meeting the definition of a financial liability then this is classed as an equity instrument. Dividends and distributions relating to equity instruments are debited direct to equity.


HOLDCROFT HYUNDAI LIMITED (REGISTERED NUMBER: 10148577)

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


3. ACCOUNTING POLICIES - continued
TAXATION
Taxation for the year comprises current and deferred tax. Tax is recognised in the 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 statement of financial position date.

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

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

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

PENSION COSTS AND OTHER POST-RETIREMENT BENEFITS
The company operates a defined contribution plan for its employees. Amounts in respect of defined contribution plans are recognised as an expense in the profit and loss account when they are due.

EMPLOYEE BENEFITS
The company provides a range of benefits to employees.

Short term benefits, including holiday pay, are recognised as an expense in the profit and loss account in the period in which they are incurred.

4. TURNOVER

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

An analysis of turnover by class of business is given below:

31.12.23 31.12.22
£    £   
Sale of goods 296,706,388 286,691,090
296,706,388 286,691,090

An analysis of turnover by geographical market is given below:

31.12.23 31.12.22
£    £   
United Kingdom 296,706,388 286,691,090
296,706,388 286,691,090

HOLDCROFT HYUNDAI LIMITED (REGISTERED NUMBER: 10148577)

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


5. EMPLOYEES AND DIRECTORS
31.12.23 31.12.22
£    £   
Wages and salaries 6,518,054 5,723,789
Social security costs 675,322 631,246
Other pension costs 161,036 145,102
7,354,412 6,500,137

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

Admin and management 49 45
Other operatives 113 93
162 138

31.12.23 31.12.22
£    £   
Directors' remuneration 156,737 -
Directors' pension contributions to money purchase schemes 2,112 -

6. OPERATING PROFIT

The operating profit is stated after charging:

31.12.23 31.12.22
£    £   
Depreciation - owned assets 111,254 455,047
Loss on disposal of fixed assets 18,285 782
Goodwill amortisation 4,516 4,517

7. AUDITORS' REMUNERATION
31.12.23 31.12.22
£    £   
Fees payable to the company's auditors and their associates for the
audit of the company's financial statements

16,920

15,720

8. INTEREST PAYABLE AND SIMILAR EXPENSES
31.12.23 31.12.22
£    £   
Interest on amounts due to group
undertakings

137,173

107,280
Manufacturer stocking plan charges 597,135 183,676
734,308 290,956

HOLDCROFT HYUNDAI LIMITED (REGISTERED NUMBER: 10148577)

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


9. 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 124,155 283,002
Tax on profit 124,155 283,002

RECONCILIATION OF TOTAL TAX CHARGE INCLUDED IN PROFIT AND LOSS
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

31.12.23 31.12.22
£    £   
Profit before tax 779,580 1,236,594
Profit multiplied by the standard rate of corporation tax in the UK of
25% (2022 - 19%)

194,895

234,953

Effects of:
Expenses not deductible for tax purposes 1,129 (3,080 )
Capital allowances in excess of depreciation (64,060 ) -
Depreciation in excess of capital allowances - 51,129
Changes in Corporation Tax rates (7,809 ) -
Total tax charge 124,155 283,002

10. DIVIDENDS
31.12.23 31.12.22
£    £   
Ordinary shares of £1 each
Interim 600,000 1,000,000

11. INTANGIBLE FIXED ASSETS
Goodwill
£   
COST
At 1 January 2023
and 31 December 2023 451,650
AMORTISATION
At 1 January 2023 4,517
Amortisation for year 4,516
At 31 December 2023 9,033
NET BOOK VALUE
At 31 December 2023 442,617
At 31 December 2022 447,133

HOLDCROFT HYUNDAI LIMITED (REGISTERED NUMBER: 10148577)

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


11. INTANGIBLE FIXED ASSETS - continued

Goodwill relates to the investment in ALM Garages Limited and arises on the hive up of the subsidiary's trade and assets as at 30 June 2022.

12. TANGIBLE FIXED ASSETS
Freehold Plant and Motor
property machinery vehicles Totals
£    £    £    £   
COST OR VALUATION
At 1 January 2023 100,000 1,170,753 217,636 1,488,389
Additions - 71,857 459,079 530,936
Disposals - - (186,270 ) (186,270 )
At 31 December 2023 100,000 1,242,610 490,445 1,833,055
DEPRECIATION
At 1 January 2023 - 1,031,805 24,122 1,055,927
Charge for year - 62,523 48,731 111,254
Eliminated on disposal - - (20,986 ) (20,986 )
At 31 December 2023 - 1,094,328 51,867 1,146,195
NET BOOK VALUE
At 31 December 2023 100,000 148,282 438,578 686,860
At 31 December 2022 100,000 138,948 193,514 432,462

Cost or valuation at 31 December 2023 is represented by:

Freehold Plant and Motor
property machinery vehicles Totals
£    £    £    £   
Cost 100,000 1,242,610 490,445 1,833,055

13. FIXED ASSET INVESTMENTS
Shares in
group
undertakings
£   
COST
At 1 January 2023
and 31 December 2023 4,165,662
PROVISIONS
At 1 January 2023
and 31 December 2023 4,165,662
NET BOOK VALUE
At 31 December 2023 -
At 31 December 2022 -

HOLDCROFT HYUNDAI LIMITED (REGISTERED NUMBER: 10148577)

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


13. FIXED ASSET INVESTMENTS - continued

The company's investments at the Statement of Financial Position date in the share capital of companies include the following:

Sandon Road Motors (Stafford) Limited
Registered office: Astonfields Road, Stafford, Staffordshire, ST16 3UF
Nature of business: non-trading
%
Class of shares: holding
Ordinary 100.00

ALM Garages Limited
Registered office: Leek Road, Hanley, Stoke On Trent, Staffordshire, United Kingdom, ST1 6AT
Nature of business: non-trading
%
Class of shares: holding
Ordinary 100.00

14. STOCKS
31.12.23 31.12.22
£    £   
Finished goods 20,702,068 17,745,343

Vehicle stocks include £11,999,255 (2022: £9,162,209) of consignment stocks. The asset has been recorded on the balance sheet, matched by the corresponding liability, to accord with paragraph 2.8 of Financial Reporting Standard 102, regarding the substance of transactions. The principal terms of the consignment agreement are such that the company effectively contracts the stock, and bears the risks of ownership and obtains substantially all the remaining benefit of the assets.

The stock write down in line with the stated stock valuation policy is £333,385 (2022: £172,791).

15. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.12.23 31.12.22
£    £   
Trade debtors 9,594,373 11,277,779
Amounts owed by group undertakings 5,464,506 5,537,099
Tax 178,630 101,558
Prepayments 516,159 538,312
15,753,668 17,454,748

Amounts owed by group undertakings are unsecured, interest free and are repayable on demand.

HOLDCROFT HYUNDAI LIMITED (REGISTERED NUMBER: 10148577)

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


16. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.12.23 31.12.22
£    £   
Bank loans and overdrafts (see note 17) 1,271,032 -
Trade creditors 26,585,841 26,653,951
Amounts owed to group undertakings 7,625,780 7,801,622
Social security and other taxes 125,072 128,352
VAT 389,459 346,685
Accruals and deferred income 553,722 542,347
36,550,906 35,472,957

Included in trade creditors is stocking loan agreements of £23,572,803 (2022: £24,257,345).

The bank overdraft is secured by a debenture on bank standard form dated 27th April 1995, a first legal mortgage over the freehold properties of the group and cross guarantee (unlimited) dated 26th February 1997 between T G Holdcroft (Newcastle) Limited, Holdcroft Renault Limited, Hanley Realisations Limited, Holdcroft Honda Limited, Holdcroft Hyundai Limited, Holdcroft North Staffs Limited, TMK Finance Limited, ALM Garages Limited, T G Holdcroft (Motors) Limited, Holdcroft Nissan Limited, Stuart Graham Limited, T G Holdcroft (Holdings) Limited, Holdcroft Properties Limited and HP 2011 Limited.

The company is also party to a composite banking arrangement with Barclays Bank Plc dated 28 February 2007.

Amounts owed to group undertakings are unsecured, interest free, and are repayable on demand.

17. LOANS

An analysis of the maturity of loans is given below:

31.12.23 31.12.22
£    £   
Amounts falling due within one year or on demand:
Bank overdrafts 1,271,032 -

18. PROVISIONS FOR LIABILITIES
31.12.23 31.12.22
£    £   
Deferred tax
Accelerated capital allowances 63,367 63,367

Deferred
tax
£   
Balance at 1 January 2023 63,367
Balance at 31 December 2023 63,367

HOLDCROFT HYUNDAI LIMITED (REGISTERED NUMBER: 10148577)

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


19. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 31.12.23 31.12.22
value: £    £   
1,000 Ordinary £1 1,000 1,000

20. RESERVES

Profit and loss account - This reserve records retained earnings and accumulated losses.

Non distributable reserve - This reserve records the value of asset revaluations and fair value movements on assets recognised in the other comprehensive income.

Other reserve - This reserve represents non-distributable profits which cannot be distributed until the properties to which it relates are sold outside of the group.

21. CONTINGENCIES

The company is party to a cross guarantee (unlimited) dated 26 February 1997 between T G Holdcroft (Holdings)Limited, T G Holdcroft (Newcastle) Limited, Holdcroft Renault Limited, Hanley Realisations Limited, Holdcroft Honda Limited, Holdcroft North Staffs Limited, TMK Finance Limited, T G Holdcroft (Motors) Limited, Stuart Graham Limited, Holdcroft Properties Limited, HP2011 Limited, Holdcroft Nissan Limited, Holdcroft Hyundai Limited and ALM Garages Limited. The company is also party to an additional cross guarantee dated 15 November 2013 to include HP 2011 Limited. The total indebtedness to the bank at 31 December 2023 was £16,059,640 (31 December 2022: £11,002,989).

In addition the company has a fixed and floating charge debenture over the whole of its assets in favour of T G Holdcroft (Holdings) Limited.

22. RELATED PARTY DISCLOSURES

The company has taken advantage of the exemption from the disclosures required by paragraph 33.1A of Financial Reporting Standard 102 regarding transactions between fellow group companies as the subsidiary is a wholly owned member, and the group financial statements in which this subsidiary is included are publicly available.

23. EVENTS AFTER THE END OF THE REPORTING PERIOD

There were no material events after the end of the reporting period up to the date of approval of the
financial statements by the Board.

24. ULTIMATE CONTROLLING PARTY

The company regards T. G. Holdcroft (Holdings) Limited, a company registered in England and Wales, as its ultimate parent undertaking. The consolidated financial statements can be obtained from www.beta.companieshouse.gov.uk.

The ultimate controlling party is Mr T G Holdcroft by virtue of his 52.00% shareholding in the ultimate holding company.