Company registration number 00446782 (England and Wales)
RIBBLESDALE MOTORS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023
RIBBLESDALE MOTORS LIMITED
COMPANY INFORMATION
Directors
Mr E Hadwin
Mr J D Hadwin
Secretary
Mrs A Hadwin
Company number
00446782
Registered office
The Garage
Torver
Coniston
LA21 8BJ
Auditor
MHA
Kendal House
Murley Moss Business Village
Oxenholme Road
Kendal
LA9 7RL
RIBBLESDALE MOTORS LIMITED
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4
Directors' responsibilities statement
5
Independent auditor's report
6 - 8
Profit and loss account
9
Statement of comprehensive income
10
Balance sheet
11
Statement of changes in equity
12
Notes to the financial statements
13 - 23
RIBBLESDALE MOTORS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 1 -
The directors have pleasure in presenting their report and the accounts of the company for the year ended 30 November 2023.
Review of the business
As main Jaguar Land Rover fully franchised dealers at one site and Jaguar Land Rover service centres at the remaining two sites the Group continues to deal in new and used vehicles. We provide servicing and repairs at all sites as well as a spare parts operation. The Group operations are split geographically with two based in Cumbria, namely Torver and Kendal and one based in Settle, North Yorkshire. Each site has its business split into separate business units. - Sales of used units - Servicing and repair - Sales of genuine Jaguar Land Rover parts Ribblesdale Motors Limited transferred the business (comprising the assets) as a going concern on 30 September 2023 to J. F. & E Hadwin Limited. All employees of the company were transferred across as part of the agreement. Ribblesdale Motors Limited continues to be a trading name as a division of J. F. & E. Hadwin Limited. Any residual debtors and creditors have been settled and collected by J F & E Hadwin Limited since the reporting date and the company will now become dormant. Consequently, the Directors have chosen to prepare the financial statements on basis other than going concern. This has had no material impact on the amounts disclosed in both the Profit and Loss Account or the Balance Sheet and therefore no adjustments have been made to the financial statements as a result of the application of a basis of accounting other than going concern. The financial statements show a fall in turnover compared with 2022 as a result of this. |
Our employees have continued to work hard throughout the year to deliver high standards of sales and after care, and our thanks go to them for their continued hard work in such challenging times. The used car market has stabilised but although supply has increased it is still not outstripping demand. There are wide ranging price fluctuations within the used car market. Nearly new cars less than 3 years old are seeing values fall because of an increased supply of younger vehicles and manufacturers offering very attractive terms on new product effectively discounting the price point. Automotive marketplace platforms are reporting heavy traffic on their website indicating that the used car market is still very resilient. |
RIBBLESDALE MOTORS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 2 -
Principal risks and uncertainties
As in all businesses, the company is subject to a number of risks, which it seeks to mitigate. The principal risks and areas of uncertainty are as follows: Franchise agreement The company relies on the continuation of its franchise agreement with Jaguar Land Rover (JLR). Ribblesdale Motors Limited has a good working relationship with Jaguar Land Rover and the directors are confident that JLR will maintain their position in the market place. Competition risk The new and used vehicle market is a competitive one and there is always the risk that customers will look to other suppliers or the internet. This risk is mitigated by building a strong reputation and ensuring that the company remains competitive and meets customer expectations. Customer satisfaction is constantly monitored and measured and we respond accordingly. Having the right team Any business is only as good as its team, and we are proud of the fact that we have low staff turnover. We strive to attract and retain the best people to ensure continuity for our customers. We invest heavily in training and communicate openly with staff. As a result, we have loyalty and longevity in our team with many knowledgeable and experienced staff who collaborate closely and have real empathy with our customers. We are recognised by JLR for our dedication to customer service and the professionalism of our staff following strong performances across sales, service and most importantly customer satisfaction. Economy The UK economy is forecast to grow much more slowly than expected in the next 2 years as inflation take longer to fall. This weaker economy has affected consumer confidence in the new and used car market and there is high price volatility. Demand does still seem to be high but profitability not expected to be as high moving forwards. Covid-19 The effects of the pandemic are now minimal in comparison to the height of the virus. The boosting of used car values in part due to the reduced car registrations through the pandemic has now subsided. Stock value risk Like all motor dealers, the group faces the risk that stock may fall in value due to specific industry/marque factors or a general downturn. We are experiencing high price volatility as used car prices did fall dramatically towards the end of 2023, cars were stocked at higher prices and as used car prices realign margins have been impacted. |
Key performance indicators
We consider the key performance indicators to judge the business strengths and performance are as follows: Turnover - £7,999,109 (2022: £9,228,552) Gross profit - 3.34% (2022: 1.52%) Net profit - 6.55% (2022: 1.73%) Comparisons can be made with other Jaguar Land Rover Service centres by use of manufacturers' composite report. |
RIBBLESDALE MOTORS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 3 -
Mr J D Hadwin
Director
23 August 2024
RIBBLESDALE MOTORS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 4 -
The directors present their annual report and financial statements for the year ended 30 November 2023.
Principal activities
The company is principally engaged in operating a Jaguar Land Rover centre and providing related garage services.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr E Hadwin
Mr J D Hadwin
Results and dividends
The results for the year are set out on page 9.
The directors do not recommend payment of a final dividend.
Future developments
On 30 September 2023, the trade and assets of the company were transferred to a related company, J F & E Hadwin Limited, following a Group reorganisation. The trade of the company will now continue in J F & E Hadwin Limited. Any residual debtors and creditors have been settled and collected by J F & E Hadwin Limited since the reporting date and the company will now cease trading and become dormant. Consequently, the Directors have chosen to prepare the financial statements on basis other than going concern. This has had no material impact on the amounts disclosed in both the Profit and Loss Account or the Balance Sheet and therefore no adjustments have been made to the financial statements as a result of the application of a basis of accounting other than going concern.
Auditor
In accordance with the company's articles, a resolution proposing that MHA be reappointed as auditor of the company will be put at a General Meeting.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
On behalf of the board
Mr J D Hadwin
Director
23 August 2024
RIBBLESDALE MOTORS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 5 -
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with 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 UK 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.
RIBBLESDALE MOTORS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF RIBBLESDALE MOTORS LIMITED
- 6 -
Opinion
We have audited the financial statements of Ribblesdale Motors Limited (the 'company') for the year ended 30 November 2023 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including 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 30 November 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.
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 Auditor's 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 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.
Emphasis of matter - financial statements prepared on a basis other than going concern
We draw your attention to the disclosure made in note 1.2 to the financial statements which explains that the financial statements have not been prepared on a going concern basis for the reasons set out in that note. Our opinion is not modified in respect of this matter.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
RIBBLESDALE MOTORS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF RIBBLESDALE MOTORS LIMITED (CONTINUED)
- 7 -
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the Directors' Responsibilities Statement set out on page 4, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud, is detailed below:
enquiring of management and those charged with governance of any actual and potential litigation and claims;
reviewing the financial statement disclosures and testing of supporting documentation to assess compliance with the relevant laws and regulations. For the company we consider these to be the Health and Safety Act 1974, FCA regulations and compliance with the UK Companies Act 2006;
assessing whether the judgements made in making accounting estimates are indicative of any potential bias;
auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business; and
auditing the risk of fraud in revenue, including through the testing of the cut off of income at the year end and sales transaction testing to ensure revenue is complete in the financial statements and recognised in the correct accounting period.
RIBBLESDALE MOTORS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF RIBBLESDALE MOTORS LIMITED (CONTINUED)
- 8 -
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 is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's 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 an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Jenny McCabe FCA
Senior Statutory Auditor
For and on behalf of MHA, Statutory Auditor
Kendal, United Kingdom
23 August 2024
MHA is the trading name of MacIntyre Hudson LLP, a limited liability partnership in England and Wales (registered number OC312313)
RIBBLESDALE MOTORS LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 9 -
2023
2022
Notes
£
£
Turnover
3
7,999,109
9,228,552
Cost of sales
(7,731,756)
(9,088,135)
Gross profit
267,353
140,417
Administrative expenses
(415,016)
(471,185)
Other operating income
637,377
350,377
Exceptional item
4
139,764
Operating profit
5
489,714
159,373
Interest receivable and similar income
8
33,999
Profit before taxation
523,713
159,373
Tax on profit
9
(121,195)
(2,026)
Profit for the financial year
402,518
157,347
The profit and loss account has been prepared on the basis that all operations are discontinuing operations.
RIBBLESDALE MOTORS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 10 -
2023
2022
£
£
Profit for the year
402,518
157,347
Other comprehensive income
Tax relating to other comprehensive income
12,780
Total comprehensive income for the year
402,518
170,127
RIBBLESDALE MOTORS LIMITED
BALANCE SHEET
AS AT
30 NOVEMBER 2023
30 November 2023
- 11 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
11
47,965
Current assets
Stocks
12
-
1,234,839
Debtors
13
41,115
1,095,543
Cash at bank and in hand
1,084,975
41,115
3,415,357
Creditors: amounts falling due within one year
14
(1,122,248)
Net current assets
41,115
2,293,109
Total assets less current liabilities
41,115
2,341,074
Provisions for liabilities
Deferred tax liability
15
8,777
-
(8,777)
Net assets
41,115
2,332,297
Capital and reserves
Called up share capital
17
4,186
4,186
Capital redemption reserve
36,929
36,929
Profit and loss reserves
2,291,182
Total equity
41,115
2,332,297
The financial statements were approved by the board of directors and authorised for issue on 23 August 2024 and are signed on its behalf by:
Mr E Hadwin
Mr J D Hadwin
Director
Director
Company registration number 00446782 (England and Wales)
RIBBLESDALE MOTORS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 12 -
Share capital
Revaluation reserve
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 December 2021
4,186
295,690
36,929
1,825,365
2,162,170
Year ended 30 November 2022:
Profit
-
-
-
157,347
157,347
Other comprehensive income:
Tax relating to other comprehensive income
-
12,780
-
12,780
Total comprehensive income
-
12,780
-
157,347
170,127
Transfers
-
(308,470)
-
308,470
-
Balance at 30 November 2022
4,186
36,929
2,291,182
2,332,297
Year ended 30 November 2023:
Profit and total comprehensive income
-
-
-
402,518
402,518
Dividends
10
-
-
-
(2,693,700)
(2,693,700)
Balance at 30 November 2023
4,186
36,929
41,115
RIBBLESDALE MOTORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 13 -
1
Accounting policies
Company information
Ribblesdale Motors Limited is a private company limited by shares incorporated in England and Wales. The registered office is The Garage, Torver, Coniston, LA21 8BJ. The place of business is Station Road, Settle, BD24 9AD.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties. The principal accounting policies adopted are set out below.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument IssuesThe disclosure requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b), 11.48(c), 12.26, 12.27, 12.29(a), 12.29(b), and 12.29A;
Section 26 ‘Share based Payment’ Share based payment arrangements required under FRS 102 paragraphs 26.18(b), 26.19 to 26.21 and 26.23;
Section 33 ‘Related Party Disclosures’ Compensation for key management personnel.
The financial statements of the company are consolidated in the financial statements of Eriann Holdings Ltd. These consolidated financial statements are available from its registered office.
1.2
Going concern
On 30 September 2023, the Directors made the decision to transfer the trade and assets of the Company to it's related Group company, J F & E Hadwin Limited. The trade of the company will now continue in J F & E Hadwin Limited. Any residual debtors and creditors have been settled and collected by J F & E Hadwin Limited since the reporting date and the company will now cease to trade and become dormant. Consequently, the Directors have chosen to prepare the financial statements on a basis other than going concern. This has had no material impact on the amounts disclosed in both the Profit and Loss Account or the Balance Sheet and therefore no adjustments have been made to the financial statements as a result of the application of a basis of accounting other than going concern.true
RIBBLESDALE MOTORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
1
Accounting policies
(Continued)
- 14 -
1.3
Turnover
Turnover represents the amounts receivable for goods and services net of VAT and trade discounts, to the extent that the company has a right to consideration arising from the performance of its contractual arrangements. In respect of car sales the company recognises a sale upon delivery of a vehicle.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Plant and machinery
12.5 % / 20% / 25% straight line
Fixtures and fittings
10% straight line
Freehold land is not depreciated.
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.5
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
RIBBLESDALE MOTORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
1
Accounting policies
(Continued)
- 15 -
1.6
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.7
Cash at bank and in hand
Cash and cash equivalents are basic financial assets and include cash in hand and at bank.
1.8
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
RIBBLESDALE MOTORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
1
Accounting policies
(Continued)
- 16 -
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.
1.9
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
RIBBLESDALE MOTORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
1
Accounting policies
(Continued)
- 17 -
1.10
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.11
Retirement benefits
The company operates a defined contribution pension scheme for employees. The assets of the scheme are held separately from those of the company. The annual contributions payable are charged to the profit and loss account.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Stock provision
Provision has been made against the value of stock where necessary on a line by line and age basis bearing in mind the asset class and the current market conditions for that particular class of asset.
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
2023
2022
£
£
Turnover analysed by class of business
Sale of goods and services
7,999,109
9,228,552
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
7,999,109
9,228,552
RIBBLESDALE MOTORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
3
Turnover and other revenue
(Continued)
- 18 -
2023
2022
£
£
Other revenue
Interest income
33,999
-
4
Exceptional item
2023
2022
£
£
Expenditure
Profit on sale of tangible assets
-
(139,764)
During the prior year, the company disposed of land and buildings to its parent entity, Eriann Holdings Limited. The profit on this disposal is material and non-recurring, therefore has been disclosed as an exceptional item.
5
Operating profit
2023
2022
Operating profit for the year is stated after charging:
£
£
Depreciation of owned tangible fixed assets
11,851
16,026
6
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
5,150
6,200
7
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Administrative staff
3
3
Sales / after sales staff
30
38
Total
33
41
RIBBLESDALE MOTORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
7
Employees
(Continued)
- 19 -
Their aggregate remuneration comprised:
2023
2022
£
£
Wages and salaries
790,046
896,764
Social security costs
70,043
80,247
Pension costs
22,188
22,301
882,277
999,312
8
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
33,999
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
118,457
411
Deferred tax
Origination and reversal of timing differences
2,235
1,615
Changes in tax rates
193
Adjustment in respect of prior periods
310
Total deferred tax
2,738
1,615
Total tax charge
121,195
2,026
RIBBLESDALE MOTORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
9
Taxation
(Continued)
- 20 -
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2023
2022
£
£
Profit before taxation
523,713
159,373
Expected tax charge based on the standard rate of corporation tax in the UK of 23.01% (2022: 19.00%)
120,512
30,281
Tax effect of expenses that are not deductible in determining taxable profit
368
46
Tax effect of income not taxable in determining taxable profit
(188)
Adjustments in respect of prior years
310
Effect of future change in corporation tax rate
193
388
Permanent capital allowances in excess of depreciation
(1,446)
Deferred tax not recognised on consolidation
(27,243)
Taxation charge for the year
121,195
2,026
In addition to the amount charged to the profit and loss account, the following amounts relating to tax have been recognised directly in other comprehensive income:
2023
2022
£
£
Deferred tax arising on:
Revaluation of property
-
(12,780)
10
Dividends
2023
2022
£
£
Final paid
2,693,700
RIBBLESDALE MOTORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 21 -
11
Tangible fixed assets
Plant and machinery
Fixtures and fittings
Total
£
£
£
Cost or valuation
At 1 December 2022
151,264
65,777
217,041
Additions
18,272
18,272
Disposals
(169,536)
(65,777)
(235,313)
At 30 November 2023
Depreciation and impairment
At 1 December 2022
104,362
64,714
169,076
Depreciation charged in the year
11,363
488
11,851
Eliminated in respect of disposals
(115,725)
(65,202)
(180,927)
At 30 November 2023
Carrying amount
At 30 November 2023
At 30 November 2022
46,902
1,063
47,965
12
Stocks
2023
2022
£
£
Raw materials and consumables
-
79,982
Finished goods and goods for resale
1,154,857
-
1,234,839
Included within this figure is an impairment loss of £Nil (2022 - £25,872) which was recognised against stock during the year due to slow-moving and obsolete stock.
13
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
499,171
Amounts owed by group undertakings
41,115
535,086
Other debtors
5,941
Prepayments and accrued income
55,345
41,115
1,095,543
RIBBLESDALE MOTORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 22 -
14
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
847,644
Amounts owed to group undertakings
122,552
Corporation tax
411
Other taxation and social security
27,334
Accruals and deferred income
124,307
1,122,248
15
Deferred taxation
Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:
Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
-
8,777
2023
Movements in the year:
£
Liability at 1 December 2022
8,777
Charge to profit or loss
2,738
Movement arising from the transfer of trade
(11,515)
Liability at 30 November 2023
-
16
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
22,188
22,301
The company operates a defined contribution pension scheme for all qualifying employees. 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. Contributions totalling £Nil (2022: £1,827) were payable to the fund at the year end.
RIBBLESDALE MOTORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 23 -
17
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
4,186
4,186
4,186
4,186
18
Operating lease commitments
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2023
2022
£
£
Within one year
599
Between two and five years
2,397
2,996
In accordance with the Asset Transfer Agreement dated 30 September 2023, J F & E Hadwins Ltd assumed responsibility for the payments left in relation to the operating lease commitments.
19
Related party transactions
Transactions with related parties
The company is a wholly owned subsidiary of Eriann Holdings Ltd and in accordance with paragraph 33.1A of FRS102 is therefore not required to disclose transactions with that company and its fellow subsidiary, J F & E Hadwin Limited.
20
Ultimate controlling party
Eriann Holdings Ltd is the ultimate controlling party of the Group. No Single individual has control of this company.
Copies of the consolidated financial statements of Eriann Holdings Ltd, which is both the smallest and largest group for which consolidated financial statements are prepared, may be obtained from Eriann Holdings Ltd, The Garage, Torver, Coniston, Cumbria, LA21 8BJ.
21
Events after the reporting date
On 30 September 2023, the trade and assets of the Company were transferred to a related company, J F & E Hadwin Ltd, following a Group reorganisation. The Balance Sheet reflects the position after the point of transfer. Any residual debtors and creditors have been have been collected and settled by J F & E Hadwin Limited.
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