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REGISTERED NUMBER: 02324482 (England and Wales)















STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

FOR

EASTBOURNE MOTORING CENTRE LIMITED

EASTBOURNE MOTORING CENTRE LIMITED (REGISTERED NUMBER: 02324482)






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




Page

Company Information 1

Strategic Report 2

Report of the Directors 4

Report of the Independent Auditors 7

Income Statement 11

Other Comprehensive Income 12

Balance Sheet 13

Statement of Changes in Equity 15

Notes to the Financial Statements 16


EASTBOURNE MOTORING CENTRE LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31 DECEMBER 2023







DIRECTORS: D C Lambird
M D J Lambird
A Bray
M Piper





REGISTERED OFFICE: 103 Bourne Street
Eastbourne
East Sussex
BN21 3SE





REGISTERED NUMBER: 02324482 (England and Wales)





AUDITORS: LMDB Limited
t/a LMDB Accountants
Statutory Auditors
Railview Lofts
19c Commercial Road
Eastbourne
East Sussex
BN21 3XE

EASTBOURNE MOTORING CENTRE LIMITED (REGISTERED NUMBER: 02324482)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

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

REVIEW OF BUSINESS
The principal activity of the company continued to be that of sales and servicing of new and used cars and commercial vehicles.

The continued pressure on gross margins remained an industry wide problem. The directors and managers of the company remain positive, our strategy is to continue to focus on retaining customers, customer satisfaction, staff training, stock and cash management and strong balance sheet, we are confident of our future success and profitability.

The availability of new cars improved toward the end of 2023; we added the Fiat franchise in July 2023, both opportunities were very welcome and have helped us improve the new car sales and profitability.

PRINCIPAL RISKS AND UNCERTAINTIES
We are subject to a number of risks, mostly from external threats that we are constantly monitoring. There was additional risk with the sudden rise of interest rates over the last period of 2023, however with the forecast going forward that they will stabilise and potentially lower, we are positive that our opportunity for an increase in sales with improve.

Manufacturer supply of new and improved products
The company is reliant on new vehicle products from Vauxhall, Fiat and Suzuki. This exposes the company to risks in a number of areas as the company is dependent on its manufacturer/supplier in respect of:

- Availability of new vehicle product and BEV mix.
- Quality of new vehicle product
- Pricing and competitiveness of new vehicle product
- Effects and management of the BEV mandate that came into effect in January 2024

The directors are confident that future new products from its manufacturers and suppliers will continue to be competitively priced and high quality and therefore consider that this "manufacturer risk" is minimal. It is, in any case, mitigated by other core business areas of the company, including used vehicle sales, parts sales and service work.

Used vehicle price variation
Used vehicle prices can increase and decline significantly. As a significant proportion of our business comprises used vehicle sales, these declines can have a material impact on our business. The impact of declines in used vehicle prices can result in reduced profits on sales and write-downs in the value of used vehicle inventory.

Development and performance
The directors plan to grow the business, by our commitment to our strategy and by adding to our franchise partners to form part of our future.


EASTBOURNE MOTORING CENTRE LIMITED (REGISTERED NUMBER: 02324482)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

Company, people and reputation

The company has invested heavily in its people and its reputation over a number of years. It is therefore reliant on these individuals to a degree in delivering the company result and reinforcing the underlying company brand. The company undertakes a regular review of remuneration and packages to ensure that it attracts and retains the best people.

We have completed our Annual Consumer Duty Board report, for period ending 31st July 2024, which outlines the steps we have taken to improve the effective use of management information, enabling us to put customer satisfaction at the heart of our business and adhering to the 3 main principles. This also outlines areas where improvements can be made to ensure we continue to reach both our own and manufacturers expectations.

Competition

Competition from new innovative products particularly from China is something that we are very aware of. Also, competition with other franchised vehicle dealerships, independent used vehicle sellers, private buyers and sellers, internet-based buyers and sellers, independent service and repair shops and vehicle manufacturers who have entered the retail market. We compete for the sale of new and used vehicles, the performance of warranty repairs, non-warranty repairs, routine maintenance business and for the provision of spare parts. The principal competitive factors in service and parts sales are price, familiarity with a manufacturer's brands and models and the quality of customer service.

KPI MONITORING AND MEASUREMENT
The company uses the following ratios to monitor the business:

2023 2022
Turnover £35,407,100 £30,331,879
Gross profit £4,174,707 £3,939,701
Gross profit margin 11.79% 12.99%
Operating profit £480,369 £488,665
Operating profit margin 1.36% 1.61%

ON BEHALF OF THE BOARD:





M D J Lambird - Director


12 August 2024

EASTBOURNE MOTORING CENTRE LIMITED (REGISTERED NUMBER: 02324482)

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.

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of sales and servicing of new and used cars and commercial vehicles.

DIVIDENDS
Interim dividends per share were paid as follows:
Ordinary £1 shares 438,150.24 - 31 January 2023
D Shares £1 shares 14,447.04 - 18 July 2023


The directors recommend that no final dividends be paid.

The total distribution of dividends for the year ended 31 December 2023 will be £ 452,597 .

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

D C Lambird
M D J Lambird
A Bray
M Piper


EASTBOURNE MOTORING CENTRE LIMITED (REGISTERED NUMBER: 02324482)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 DECEMBER 2023

FINANCIAL INSTRUMENTS
The company's operations expose it to a variety of financial risks which include credit risk, liquidity risk and interest rate risk. The company has in place risk management policies, which are implemented by the company's financedepartment. These policies, which are consistent with those from the previous year, seek to limit the adverse effects on the financial performance of the company by monitoring levels of debt finance and related finance costs.

Liquidity risk:

In order to maintain liquidity to ensure that sufficient funds are available for ongoing operations and future
developments, the company uses a mixture of long-term and short-term debt finance.

The company makes efforts to manage the financial risk by the monitoring of cashflow to ensure that the company isable to meet its foreseeable debts as they fall due and to invest any cash assets profitably.

Credit risk:

The company's principal financial assets are stock and trade debtors. The credit risk associated with stock is limited and therefore the principal credit risk arises from its trade debtors.

In order to manage credit risk the directors set limits for customers based on a combination of payment history and third party credit references. These credit limits are reviewed regularly by the directors together with the aged debtors and collection history.

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;
-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.

EASTBOURNE MOTORING CENTRE LIMITED (REGISTERED NUMBER: 02324482)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 DECEMBER 2023


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

AUDITORS
The auditors, LMDB Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





M D J Lambird - Director


12 August 2024

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
EASTBOURNE MOTORING CENTRE LIMITED

Opinion
We have audited the financial statements of Eastbourne Motoring Centre Limited (the 'company') for the year ended 31 December 2023 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity 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.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
EASTBOURNE MOTORING CENTRE LIMITED


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

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

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

Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities, 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
EASTBOURNE MOTORING CENTRE 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:

- Enquiry of management and those charged with governance on the actual and potential litigation and claims, and also any instances of non-compliance with laws and regulations.
- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.
- Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness; 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.
- Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud.
- Professional scepticism in course of the audit and with audit sampling in material audit areas.

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 Report of the Auditors.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
EASTBOURNE MOTORING CENTRE LIMITED


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




S Jaquet FCCA (Senior Statutory Auditor)
for and on behalf of LMDB Limited
t/a LMDB Accountants
Statutory Auditors
Railview Lofts
19c Commercial Road
Eastbourne
East Sussex
BN21 3XE

13 August 2024

EASTBOURNE MOTORING CENTRE LIMITED (REGISTERED NUMBER: 02324482)

INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023

2023 2022
Notes £    £   

TURNOVER 3 35,407,100 30,331,879

Cost of sales 31,232,393 26,392,178
GROSS PROFIT 4,174,707 3,939,701

Administrative expenses 3,714,260 3,465,536
460,447 474,165

Other operating income 19,922 14,500
OPERATING PROFIT 5 480,369 488,665

Interest receivable and similar income 52,652 14,956
533,021 503,621

Interest payable and similar expenses 6 28,317 21,993
PROFIT BEFORE TAXATION 504,704 481,628

Tax on profit 7 140,913 120,452
PROFIT FOR THE FINANCIAL YEAR 363,791 361,176

EASTBOURNE MOTORING CENTRE LIMITED (REGISTERED NUMBER: 02324482)

OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023

2023 2022
Notes £    £   

PROFIT FOR THE YEAR 363,791 361,176


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR THE
YEAR

363,791

361,176

EASTBOURNE MOTORING CENTRE LIMITED (REGISTERED NUMBER: 02324482)

BALANCE SHEET
31 DECEMBER 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 9 44,794 57,294
Tangible assets 10 3,517,996 2,870,242
Investment property 11 473,000 1,021,086
4,035,790 3,948,622

CURRENT ASSETS
Stocks 12 4,722,020 4,059,540
Debtors 13 1,727,580 1,220,012
Prepayments and accrued income 156,710 124,276
Cash at bank and in hand 785,554 1,296,297
7,391,864 6,700,125
CREDITORS
Amounts falling due within one year 14 3,842,577 2,979,313
NET CURRENT ASSETS 3,549,287 3,720,812
TOTAL ASSETS LESS CURRENT LIABILITIES 7,585,077 7,669,434

PROVISIONS FOR LIABILITIES 17 80,019 75,570
NET ASSETS 7,505,058 7,593,864

EASTBOURNE MOTORING CENTRE LIMITED (REGISTERED NUMBER: 02324482)

BALANCE SHEET - continued
31 DECEMBER 2023

2023 2022
Notes £    £    £    £   
CAPITAL AND RESERVES
Called up share capital 18 39,404 39,404
Share premium 19 63,811 63,811
Revaluation reserve 19 175,173 175,173
Capital redemption reserve 19 4,320 4,320
Retained earnings 19 7,222,350 7,311,156
SHAREHOLDERS' FUNDS 7,505,058 7,593,864


The financial statements were approved by the Board of Directors and authorised for issue on 12 August 2024 and were signed on its behalf by:





M D J Lambird - Director


EASTBOURNE MOTORING CENTRE LIMITED (REGISTERED NUMBER: 02324482)

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

Called up
share Retained Share
capital earnings premium
£    £    £   
Balance at 1 January 2022 39,404 7,421,196 63,811

Changes in equity
Dividends - (471,216 ) -
Total comprehensive income - 361,176 -
Balance at 31 December 2022 39,404 7,311,156 63,811

Changes in equity
Dividends - (452,597 ) -
Total comprehensive income - 363,791 -
Balance at 31 December 2023 39,404 7,222,350 63,811
Capital
Revaluation redemption Total
reserve reserve equity
£    £    £   
Balance at 1 January 2022 175,173 4,320 7,703,904

Changes in equity
Dividends - - (471,216 )
Total comprehensive income - - 361,176
Balance at 31 December 2022 175,173 4,320 7,593,864

Changes in equity
Dividends - - (452,597 )
Total comprehensive income - - 363,791
Balance at 31 December 2023 175,173 4,320 7,505,058

EASTBOURNE MOTORING CENTRE LIMITED (REGISTERED NUMBER: 02324482)

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

1. STATUTORY INFORMATION

Eastbourne Motoring Centre 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.

The presentation currency of the financial statements is the Pound Sterling (£).


2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

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 FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

the requirements of Section 7 Statement of Cash Flows;
the requirement of paragraph 3.17(d);
the requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and
11.48(c);
the requirement of paragraph 33.7.

EASTBOURNE MOTORING CENTRE LIMITED (REGISTERED NUMBER: 02324482)

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

2. ACCOUNTING POLICIES - continued

Significant judgements and estimates
The preparation of the financial statements requires management to make judgments, estimates and assumptions that affect the amounts reported for assets and liabilities at the reporting date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates.

The following judgments (apart from those involving estimates) have had the most significant affect on amounts recognised in the financial statements:

Consignment stock - Vehicles held on consignment have been included in 'vehicle stock' within 'stocks' on the basis that the company has determined that it holds the significant risks and rewards attached to these vehicles.

Vehicle stock valuation - Stock valuation is regularly monitored against age profile and market demand. Management use a market tool during the appraisal process, being CAP valuation guides. The directors maintain oversight of ageing stock profiles and a monthly review of any provision required is performed.

Property, plant and equipment assets - Property, plant and equipment are reviewed for impairment if events or circumstances indicate that the carrying value may not be recoverable. When an impairment review is carried out the recoverable value is determined based on value in use calculations which require estimates to be made of future cash flows.

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

Incentives and other rebates from brand partners - The company receives income in the form of various incentives which are determined by the brand partners. The amount received is generally based on achieving specific objectives such as a specified sales volume, as well as other objectives including maintaining brand partner standards which may include, but are not limited to, retail centre image and design requirements, customer satisfaction survey results and training standards. Objectives are generally set and measured on either a quarterly or annual basis.

Where incentives are based on a specific sales volume or number of registrations, the related income is recognised as a reduction in cost of sales when it is reasonably certain that the income has been earned. This is generally the later of the date the related vehicles are sold or registered or when it is reasonably certain that the related target will be met. Where incentives are linked to retail centre image and design requirements, customer satisfaction survey results or training standards, they are recognised as a reduction in cost of sales when it is reasonably certain that the incentive will be received for the relevant period.

The company may also receive contributions towards advertising and promotional expenditure. Where such contributions are received they are recognised as a reduction in the related expenditure in the period to which they relate.

EASTBOURNE MOTORING CENTRE LIMITED (REGISTERED NUMBER: 02324482)

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

2. ACCOUNTING POLICIES - continued

Turnover
Turnover from the sale of goods and services is recognised at fair value in the Statement of Comprehensive Income, net of discounts and value added tax, when the significant risks and rewards of ownership have been transferred to the buyer. In general this occurs when vehicles or parts have been supplied or when a service has been completed.

Commission income is recognised on a receivable basis.

Rental income
Rental income is recognised on an accruals basis.

Interest income
Interest income is recognised in the Statement of Comprehensive Income on a receivable basis.

Goodwill
Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, Goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight line basis to the Statement of Comprehensive Income over its useful economic life of 10 years.

Tangible fixed assets
Tangible fixed assets under the cost model, other than investment properties, 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.

Land is not depreciated. Depreciation on other assets is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on the following basis.

Depreciation is provided on the following basis:

Freehold property- 2% on cost of building
Long - term leasehold property- 5% on reducing balance
Plant and machinery- 25% or 15% on reducing balance
Motor vehicles- 20% on reducing balance

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Statement of Comprehensive Income.

EASTBOURNE MOTORING CENTRE LIMITED (REGISTERED NUMBER: 02324482)

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

2. ACCOUNTING POLICIES - continued

Investment properties
Investment properties are valued annually using a yield of methodology using market rental values capitalised at a market capitalisation rate, but there is an inevitable degree of judgment involved in that each property is unique and value can only ultimately be reliably tested in the market itself.

Stocks
Stocks and work in progress are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving items.

At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in the Statement of Comprehensive Income.

Consignment stocks
Consignment vehicles which bear considerably more of the risks and rewards of ownership are regarded as being under the control of the company and, in accordance with FRS 102, are included within stocks on the Statement of Financial Position, although legal title has not passed to the company. The corresponding liability is included in trade creditors and is secured directly on these vehicles.

Current 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 balance sheet date.

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

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

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

Operating leases: the company as lessee
Rentals paid under operating leases are charged to the Statement of Comprehensive Income on a straight line basis over the lease term.

EASTBOURNE MOTORING CENTRE LIMITED (REGISTERED NUMBER: 02324482)

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

2. ACCOUNTING POLICIES - continued

Pension costs and other post-retirement benefits
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 payments obligations.

The contributions are recognised as an expense in the Statement of Comprehensive Income 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.

Debtors
Short term debtors are measured at transaction price less any impairment.

Creditors
Short term creditors are measured at the transaction price.

Finance costs
Finance costs are charged to the Statement of Comprehensive Income on an accruals basis.

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.

3. 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:

2023 2022
£    £   
Sale of goods 32,087,593 27,649,779
Rendering of services 3,120,898 2,503,080
Commissions receivable 198,609 179,020
35,407,100 30,331,879

EASTBOURNE MOTORING CENTRE LIMITED (REGISTERED NUMBER: 02324482)

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

4. EMPLOYEES AND DIRECTORS
2023 2022
£    £   
Wages and salaries 2,775,893 2,569,967
Social security costs 278,195 265,943
Other pension costs 71,617 67,348
3,125,705 2,903,258

The average number of employees during the year was as follows:
2023 2022

Sales and service 79 79
Administration 15 15
94 94

2023 2022
£    £   
Directors' remuneration 241,975 237,825
Directors' pension contributions to money purchase schemes 5,888 5,881

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

Money purchase schemes 4 4

Information regarding the highest paid director is as follows:
2023 2022
£    £   
Emoluments etc 94,796 90,796

EASTBOURNE MOTORING CENTRE LIMITED (REGISTERED NUMBER: 02324482)

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

5. OPERATING PROFIT

The operating profit is stated after charging:

2023 2022
£    £   
Other operating leases 19,855 21,942
Depreciation - owned assets 137,531 117,621
Loss on disposal of fixed assets 1,821 6,781
Goodwill amortisation 12,500 12,500
Auditors' remuneration 17,464 21,440
Auditors' remuneration for non audit work 2,310 4,213

6. INTEREST PAYABLE AND SIMILAR EXPENSES
2023 2022
£    £   
Stocking loan interest 22,499 21,545
HMRC interest 5,818 448
28,317 21,993

7. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2023 2022
£    £   
Current tax:
UK corporation tax 136,465 102,914

Deferred tax 4,448 17,538
Tax on profit 140,913 120,452

EASTBOURNE MOTORING CENTRE LIMITED (REGISTERED NUMBER: 02324482)

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

7. TAXATION - continued

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

2023 2022
£    £   
Profit before tax 504,704 481,628
Profit multiplied by the standard rate of corporation tax in the UK of
23.520% (2022 - 19%)

118,706

91,509

Effects of:
Expenses not deductible for tax purposes 22,489 10,806


Adjustment in tax rate (282 ) 18,137
Total tax charge 140,913 120,452

8. DIVIDENDS
2023 2022
£    £   
Ordinary shares of £1 each
Interim 438,150 438,150
D Shares shares of £1 each
Interim 14,447 33,066
452,597 471,216

EASTBOURNE MOTORING CENTRE LIMITED (REGISTERED NUMBER: 02324482)

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

9. INTANGIBLE FIXED ASSETS
Goodwill
£   
COST
At 1 January 2023
and 31 December 2023 125,000
AMORTISATION
At 1 January 2023 67,706
Amortisation for year 12,500
At 31 December 2023 80,206
NET BOOK VALUE
At 31 December 2023 44,794
At 31 December 2022 57,294

10. TANGIBLE FIXED ASSETS
Freehold Long Plant and Motor
property leasehold machinery vehicles Totals
£    £    £    £    £   
COST
At 1 January 2023 2,440,355 458,039 807,484 6,538 3,712,416
Additions 47,726 157,614 33,680 - 239,020
Disposals - - - (6,538 ) (6,538 )
Reclassification/transfer 548,086 - - - 548,086
At 31 December 2023 3,036,167 615,653 841,164 - 4,492,984
DEPRECIATION
At 1 January 2023 171,193 180,147 486,117 4,717 842,174
Charge for year 59,909 20,341 57,281 - 137,531
Eliminated on disposal - - - (4,717 ) (4,717 )
At 31 December 2023 231,102 200,488 543,398 - 974,988
NET BOOK VALUE
At 31 December 2023 2,805,065 415,165 297,766 - 3,517,996
At 31 December 2022 2,269,162 277,892 321,367 1,821 2,870,242

EASTBOURNE MOTORING CENTRE LIMITED (REGISTERED NUMBER: 02324482)

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

11. INVESTMENT PROPERTY
Total
£   
FAIR VALUE
At 1 January 2023 1,021,086
Reclassification/transfer (548,086 )
At 31 December 2023 473,000
NET BOOK VALUE
At 31 December 2023 473,000
At 31 December 2022 1,021,086

Fair value at 31 December 2023 is represented by:
£   
Valuation in 2021 473,000

If investment property had not been revalued it would have been included at the following historical cost:

2023 2022
£    £   
Cost 349,000 897,086

Investment property was valued on an open market basis on 31 December 2021 by Hunt Commercial Property Ltd .

12. STOCKS
2023 2022
£    £   
Vehicle stock 4,335,013 3,760,083
Parts and accessories stock 387,007 299,457
4,722,020 4,059,540

EASTBOURNE MOTORING CENTRE LIMITED (REGISTERED NUMBER: 02324482)

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

13. DEBTORS
2023 2022
£    £   
Amounts falling due within one year:
Trade debtors 833,713 677,934
Other debtors 395,981 9,192
1,229,694 687,126

Amounts falling due after more than one year:
Other debtors 497,886 532,886

Aggregate amounts 1,727,580 1,220,012

14. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade creditors 2,484,269 1,814,634
Amounts owed to group undertakings 953,204 793,788
Tax 53,813 5,204
Social security and other taxes 69,565 62,348
VAT 78,726 162,819
Other creditors 13,131 12,248
Directors' current accounts 139,033 71,594
Accrued expenses 50,836 56,678
3,842,577 2,979,313

15. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
2023 2022
£    £   
Within one year 7,814 -
Between one and five years 16,661 -
In more than five years 988 -
25,463 -

EASTBOURNE MOTORING CENTRE LIMITED (REGISTERED NUMBER: 02324482)

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

16. SECURED DEBTS

The following secured debts are included within creditors:

2023 2022
£    £   
Vehicle funding 886,855 585,707

The vehicle funding (included within trade creditors) is secured directly over the vehicles to which it relates.

17. PROVISIONS FOR LIABILITIES
2023 2022
£    £   
Deferred tax 80,019 75,570

Deferred
tax
£   
Balance at 1 January 2023 75,570
Accelerated capital allowances 9,228
Short term timing differences (4,779 )
Balance at 31 December 2023 80,019

18. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
39,402 Ordinary £1 39,402 39,402
2 D Shares £1 2 2
39,404 39,404

The shares all rank equally for voting purposes, distributions made on a winding up and dividend rights.

EASTBOURNE MOTORING CENTRE LIMITED (REGISTERED NUMBER: 02324482)

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

19. RESERVES
Capital
Retained Share Revaluation redemption
earnings premium reserve reserve Totals
£    £    £    £    £   

At 1 January 2023 7,311,156 63,811 175,173 4,320 7,554,460
Profit for the year 363,791 363,791
Dividends (452,597 ) (452,597 )
At 31 December 2023 7,222,350 63,811 175,173 4,320 7,465,654

20. 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 £71,617 (2022: £67,348). Contributions totalling £13,131 (2022: £12,248) were payable to the fund at the reporting date.

21. ULTIMATE PARENT COMPANY

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

The registered office address is 103 Bourne Street, Eastbourne, East Sussex, BN21 3SE.

The directors D C Lambird and M D J Lambird, have a controlling interest in the share capital of EMC Group Holdings Limited.

22. CAPITAL COMMITMENTS
2023 2022
£    £   
Contracted but not provided for in the
financial statements - 14,157

23. RELATED PARTY DISCLOSURES

Other related parties
2023 2022
£    £   
Sales 371,356 909,421
Purchases 369,796 904,981
Management charges 1,560 4,440
Amount due from related parties 501,439 535,889