Company registration number 12976528 (England and Wales)
ERIANN HOLDINGS LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023
ERIANN HOLDINGS LTD
COMPANY INFORMATION
Directors
Mrs A Hadwin
Mr E Hadwin
Mr J D Hadwin
Mr T M Hadwin
Company number
12976528
Registered office
The Garage
Torver
Coniston
LA21 8BJ
Auditor
MHA
Kendal House
Murley Moss Business Village
Oxenholme Road
Kendal
LA9 7RL
ERIANN HOLDINGS LTD
CONTENTS
Page
Strategic report
1 - 4
Directors' report
5 - 7
Directors' responsibilities statement
8
Independent auditor's report
9 - 11
Profit and loss account
12
Group statement of comprehensive income
13
Group balance sheet
14
Company balance sheet
15
Group statement of changes in equity
16
Company statement of changes in equity
17
Group statement of cash flows
18
Notes to the financial statements
19 - 36
ERIANN HOLDINGS LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 1 -

The directors have pleasure in presenting their report and the accounts of the Group for the period ended 30 November 2023.

Fair 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 new units (Kentdale)

- 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.

 

The financial statements show a leap in turnover compared with 2022, although volatile the car market continues to look robust and resilient. As the availability of new cars is now at pre-pandemic levels margins will fall.

 

Economic conditions could be more favourable with interest rates at 15 year highs and inflation although falling still appear to be in the midst of a cost of living crisis.

 

Further to a change of government and a small reduction in interest rates recently the ongoing impact of supply challenges and consumer sentiment is suppressing activity and profitability in the market. There are reports that there is improvement in the smaller car market values but the SUV, larger car market is not as favourable. Concerns regarding a rise in fuel duty in the impending budget may also affect buying appetites. Results in the year to 30 November 2024 will be less profitable than enjoyed in the year ended 30 November 2023.

 

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 outlook for the new car market continues to be buoyant but as manufacturers strive to meet their new car sales targets the profit margins are tighter.

 

Demand for the Land Rover Defender also continues to be very high and again is a significant factor in our success this year.

 

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.

 

ERIANN HOLDINGS LTD
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) and is dependent upon them for the manufacture and supply of quality new vehicle products. However, J. F. & E. Hadwin Limited has a strong working relationship with Jaguar Land Rover and the directors are confident that JLR will continue to produce competitively priced and high-end quality cars which meet customer expectations. Therefore, the directors consider that this "manufacturers risk" is minimal.

 

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 company 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 - £108,736,154 (2022: £86,873,057)

Gross profit - 4.93% (2022: 5.57%)

Net profit - 2.25% (2022: 3.55%)

Return on capital employed - 16.62% (2022: 18.66%)

Return on working capital - 25.13% (2022: 29.67%)

 

These can be calculated from the information contained within the financial statements. Comparisons can be made with other Jaguar Land Rover dealers by use of manufacturers' composite report.

ERIANN HOLDINGS LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 3 -
Section 172(1) statement

The Directors of the Company have a legal responsibility under Section 172 of the Companies Act 2006 to conduct ourselves in the most effective manner to promote the group’s success for the benefit of its members as a whole, and in doing so have regard (amongst other matters) to:

(a) The likely consequences of any decision in the long term

(b) The interests of the company’s employees

(c) The need to foster the company’s business relationships with suppliers, customers and others

(d) The impact of the company’s operations on the community and the environment,

(e) The desirability of the company maintaining a reputation for high standards of business conduct, and

(f) The need to act fairly between members of the company.

Promoting the company's success for its members

The Hadwin Family Group trading under the parent entity Eriann Holdings Ltd was founded in Torver near Coniston as a vehicle repair business in 1961. 63 years later the business consists of one Land Rover retailer, one Jaguar retailer, two Jaguar Land Rover service centres and a vehicle conversion and preparation centre.

Several family members are at the helm of the business and are committed to supporting all your Jaguar or Land Rover needs. From purchasing to servicing, we also have a dedicated team of specially trained staff to assist this.

Together the family have built up an enviable reputation with the philosophy being “we look after customers and their cars” and this philosophy still remains at the heart of the business today.

ERIANN HOLDINGS LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 4 -
Engagement with key stakeholder groups

Our people

The Directors place a high emphasis on continuing loyalty and longevity within our team. We are fortunate to have many knowledgeable and experienced staff who work closely and demonstrate true empathy to our customers.

We are a responsible employer and the well-being, health and safety of our team members is a primary consideration.

Our customers

As demonstrated, we are an award-winning retailer and now offer nationwide delivery so no matter where you live in the UK, you can feel the benefits of being a customer of Hadwins Group trading under the parent entity of Eriann Holdings Ltd.

We are continuously striving to improve customer experience and this is paramount in maintaining our good reputation.

Our suppliers

Our success is aligned to that of our manufacturing and finance partners JLR whom we meet with regularly and communicate with our staff openly regarding the direction of the business. JLR use a variety of ways to measure the performance of our dealerships such as balanced scorecards and dealership audits. We engage actively and share best practice to improve the Group’s performance.

The group is regulated under the FCA as it acts as an introducer of business to finance companies.

Community and Environment

The Group actively engages with the local community in which it operates sponsoring various local initiatives and trying to make a positive impact. We offer an apprenticeship programme which creates routes into work for young people.

The Group acts in an environmentally friendly manner and is socially responsible. We recognise that the car industry will play an important part in reducing carbon emissions and we will be led by our manufacturing partner JLR.

On behalf of the board

Mr E Hadwin
Director
23 August 2024
ERIANN HOLDINGS LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 5 -

The directors present their annual report and financial statements for the year ended 30 November 2023.

Principal activities

The Group is principally engaged in operating Jaguar Land Rover franchises and providing related garage services.

Results and dividends

The results for the year are set out on page 12.

Ordinary dividends were paid amounting to £225,452. The directors do not recommend payment of a further dividend

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mrs A Hadwin
Mr E Hadwin
Mr J D Hadwin
Mr T M Hadwin
Future developments

Demand for the JLR product remains high and our new car sales reflect this.

The business currently operates using a franchise model and was due to transition to an agency model at the end of this year however this has been abandoned by JLR in favour of revamping the current arrangement. The changeover to a new model would present challenges so to continue our relationship with Jaguar Land Rover with a tried and trusted way of working is welcomed.

Used vehicle prices continue to be volatile but the price falls experienced in the last quarter of 2023 and early 2024 are not expected to continue as the year progresses. As there is more supply in the less than 3 year old used cars the trading is more difficult but countered by a buoyant older car market

Electric vehicles (EV’s) are currently exposed to higher price volatility and as China become increasingly influential in the EV market downward pressure on the European EV market is expected. As manufacturers look to cut production costs Chinese rivals are expected to gain more market share. The impact of this on our sales is expected to be limited through the strength of the JLR brand.

Currently as a Group we are developing our site at Greenodd and hope to capitalise on the new opportunities this brings and also strengthen our ties with the local community.

The direction of the company and the Group is unchanged, we will continue to be guided by our claim to be the best place to buy your Jaguar or Land Rover.

Auditor

In accordance with the company's articles, a resolution proposing that MHA be reappointed as auditor of the group will be put at a General Meeting.

Energy and carbon report

The information below relates to the period 1 December 2022 – 30 November 2023.

ERIANN HOLDINGS LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 6 -
2023
2022
Energy consumption
kWh
kWh
Aggregate of energy consumption in the year
- Gas combustion
230,300
211,685
- Electricity purchased
403,274
496,714
- Fuel consumed for transport
13,235
12,393
646,809
720,792
2023
2022
Emissions of CO2 equivalent
metric tonnes
metric tonnes
Scope 1 - direct emissions
- Gas combustion
40.80
38.03
- Fuel consumed for owned transport
57.66
50.58
98.46
88.61
Scope 2 - indirect emissions
- Electricity purchased
82.19
94.86
Scope 3 - other indirect emissions
- Fuel consumed for transport not owned by the group
-
-
Total gross emissions
180.65
183.47
Intensity ratio
Tonnes CO2e per £1m of revenue
1.661
2.111
Quantification and reporting methodology

We have calculated the carbon emissions and kWh figures using the UK Government’s 2022 version 2.0 Conversion Factors for Company Reporting. For fuel used for transport purchased from forecourts the weekly road fuel price statistics from the Department for Energy Security & Net Zero have also been used.

To avoid double counting of emissions we have not included activity from the use of plug-in electric vehicles that are charged predominantly at our premises at Kentdale as these are already reported in the purchase of electricity figure under the indirect emissions heading.

Intensity measurement

Total carbon emissions per £1m of revenue in the year to 30 November 2023 were 1.661 tCO2 (2022: 2.111 tCO2). This is based on Group Turnover of £109m (2022: £87m).

ERIANN HOLDINGS LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 7 -
Measures taken to improve energy efficiency

There is an active programme of saving energy where possible regarding the air conditioning and heating at the Kentdale site.

 

Efficiencies in the operation of the aforementioned has been challenged with our providers to improve and there have been numerous site visits by our supplier in conjunction with this.

 

Wherever possible energy saving measures will be introduced into buildings across the group. At the Kentdale site based at Kendal solar panels have been installed in February 2023. This will significantly reduce the carbon emissions at the Kentdale site going forward.

 

The site at Kendal is a modern building in keeping with the Arch concept design we committed to with our trading partner JLR. As such there is energy efficiency due to good insulation, ventilation and current building regulation compliance.

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 auditor of the company 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 auditor of the company is aware of that information.

On behalf of the board
Mr E Hadwin
Director
23 August 2024
ERIANN HOLDINGS LTD
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 8 -

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 group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

ERIANN HOLDINGS LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ERIANN HOLDINGS LTD
- 9 -
Opinion

We have audited the financial statements of Eriann Holdings Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 November 2023 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows 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:

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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent 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 group's and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

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

Other information

The 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.

ERIANN HOLDINGS LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ERIANN HOLDINGS LTD
- 10 -

Opinions on other matters prescribed by the Companies Act 2006

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

 

In the light of the knowledge and understanding of the group and parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

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:

 

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, 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 parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the parent 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:

ERIANN HOLDINGS LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ERIANN HOLDINGS LTD
- 11 -

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.

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 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
Chartered Accountants
Statutory Auditor
Kendal House
Murley Moss Business Village
Oxenholme Road
Kendal
LA9 7RL
23 August 2024
ERIANN HOLDINGS LTD
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 12 -
2023
2022
Notes
£
£
Turnover
3
108,736,154
86,873,057
Cost of sales
(103,370,548)
(82,030,765)
Gross profit
5,365,606
4,842,292
Administrative expenses
(2,224,750)
(1,810,498)
Other operating income
103,637
194,741
Operating profit
6
3,244,493
3,226,535
Interest receivable and similar income
7
193,355
28,030
Interest payable and similar expenses
8
(14,441)
(16,005)
Profit before taxation
3,423,407
3,238,560
Tax on profit
9
(976,784)
(158,546)
Profit for the financial year
2,446,623
3,080,014
Profit for the financial year is all attributable to the owners of the parent company.
ERIANN HOLDINGS LTD
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 13 -
2023
2022
£
£
Profit for the year
2,446,623
3,080,014
Other comprehensive income
-
-
Total comprehensive income for the year
2,446,623
3,080,014
Total comprehensive income for the year is all attributable to the owners of the parent company.
ERIANN HOLDINGS LTD
GROUP BALANCE SHEET
AS AT
30 NOVEMBER 2023
30 November 2023
- 14 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
11
6,846,600
6,421,344
Current assets
Stocks
15
22,132,100
15,341,549
Debtors
16
5,203,836
5,341,366
Cash at bank and in hand
4,583,421
5,338,939
31,919,357
26,021,854
Creditors: amounts falling due within one year
17
(19,010,474)
(15,148,081)
Net current assets
12,908,883
10,873,773
Total assets less current liabilities
19,755,483
17,295,117
Provisions for liabilities
Deferred tax liability
19
239,195
-
0
(239,195)
-
Net assets
19,516,288
17,295,117
Capital and reserves
Called up share capital
21
1,000
1,000
Other reserves
12,901,604
12,901,604
Profit and loss reserves
6,613,684
4,392,513
Total equity
19,516,288
17,295,117
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:
23 August 2024
Mr E Hadwin
Mr J D Hadwin
Director
Director
Company registration number 12976528 (England and Wales)
ERIANN HOLDINGS LTD
COMPANY BALANCE SHEET
AS AT 30 NOVEMBER 2023
30 November 2023
- 15 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
11
6,050,995
6,004,581
Investments
13
3,457,311
3,457,311
9,508,306
9,461,892
Current assets
Debtors
16
802
802
Cash at bank and in hand
88,174
102,741
88,976
103,543
Creditors: amounts falling due within one year
17
(2,562,412)
(5,434,113)
Net current liabilities
(2,473,436)
(5,330,570)
Total assets less current liabilities
7,034,870
4,131,322
Provisions for liabilities
Deferred tax liability
19
146,330
-
0
(146,330)
-
Net assets
6,888,540
4,131,322
Capital and reserves
Called up share capital
21
1,000
1,000
Profit and loss reserves
6,887,540
4,130,322
Total equity
6,888,540
4,131,322

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £2,982,670 (2022 - £2,334,377 profit).

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:
23 August 2024
Mr E Hadwin
Mr J D Hadwin
Director
Director
Company registration number 12976528 (England and Wales)
ERIANN HOLDINGS LTD
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 16 -
Share capital
Merger reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 December 2021
1,000
12,411,443
1,568,451
13,980,894
Year ended 30 November 2022:
Profit and total comprehensive income for the year
-
-
3,080,014
3,080,014
Dividends
10
-
-
(255,952)
(255,952)
Transfers
-
384,925
-
384,925
Other movements
-
105,236
-
105,236
Balance at 30 November 2022
1,000
12,901,604
4,392,513
17,295,117
Year ended 30 November 2023:
Profit and total comprehensive income for the year
-
-
2,446,623
2,446,623
Dividends
10
-
-
(225,452)
(225,452)
Balance at 30 November 2023
1,000
12,901,604
6,613,684
19,516,288
ERIANN HOLDINGS LTD
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 17 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 December 2021
1,000
2,051,897
2,052,897
Year ended 30 November 2022:
Profit and total comprehensive income for the year
-
2,334,377
2,334,377
Dividends
10
-
(255,952)
(255,952)
Balance at 30 November 2022
1,000
4,130,322
4,131,322
Year ended 30 November 2023:
Profit and total comprehensive income
-
2,982,670
2,982,670
Dividends
10
-
(225,452)
(225,452)
Balance at 30 November 2023
1,000
6,887,540
6,888,540
ERIANN HOLDINGS LTD
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 18 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
25
791,528
979,645
Interest paid
(14,441)
(16,005)
Income taxes paid
(830,334)
(595,942)
Net cash (outflow)/inflow from operating activities
(53,247)
367,698
Investing activities
Purchase of tangible fixed assets
(670,174)
(124,354)
Interest received
193,355
28,030
Net cash used in investing activities
(476,819)
(96,324)
Financing activities
Dividends paid to equity shareholders
(225,452)
(255,952)
Net cash used in financing activities
(225,452)
(255,952)
Net (decrease)/increase in cash and cash equivalents
(755,518)
15,422
Cash and cash equivalents at beginning of year
5,338,939
5,323,517
Cash and cash equivalents at end of year
4,583,421
5,338,939
ERIANN HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 19 -
1
Accounting policies
Company information

Eriann Holdings Ltd (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is The Garage, Torver, Coniston, LA21 8BJ.

 

The group consists of Eriann Holdings Ltd and all of its subsidiaries.

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 and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.

The consolidated accounts incorporate the accounts of the company and all group undertakings. These are adjusted, where appropriate, to conform to group accounting policies. Acquisitions are accounted for under the merger method. The results of the companies acquired of are included in the group profit and loss account for the full year as the group position is stated based on the group being in existence for both the current and comparative years due to the use of the merger method for acquisitions. As the company was only incorporated during the period, there are no comparative figures for the individual company position. As a consolidated group profit and loss account is published, a separate profit and loss account for the parent company is omitted from the group accounts by virtue of section 408 of the Companies Act 2006.

1.2
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Eriann Holdings Ltd together with all entities controlled by the parent company, J. F. & E. Hadwin and Ribblesdale Motors and have been consolidated using the merger method.

 

The undertakings acquired share the same registered office as Eriann Holdings Ltd. The shares in J. F. & E. Hadwin Limited have been acquired through a share for share exchange with the directors and their family who now hold the equivalent shareholdings in Eriann Holdings Ltd. The shares in Ribblesdale Motors Limited have been acquired from J. F. & E. Hadwin Limited. A merger reserve has been created to reflect the profit & loss reserves which related to pre merger activity.

ERIANN HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
1
Accounting policies
(Continued)
- 20 -
1.3
Going concern

The group has enjoyed another successful years’ trading and strengthened its balance sheet. The limitations on trading both from a Covid 19 and production interruptions due to component shortages in the previous 2 years and part of 2022 have impacted far less this year.

We have an excellent relationship with our franchisor, Jaguar Land Rover who are committed to working with us as franchisees, their key business partners. The group is relatively small in comparison to others in the JLR network and because of that is better placed to adapt and quickly adjust to realities which present themselves

We are strongly committed to the future of Jaguar Land Rover and intend to take the necessary steps to ensure the company continues to trade profitably . Our internal measures in place to manage the process are outlined as follows:

The UK economy has only shown small growth in the current year and the car industry’s latest figures show the new car market grew by 1.1 per cent in June 2024, breaking the one million mark (for a half year total) in the first half of 2024 for the first time since 2019, however this is still down around 20% compared to pre-covid figures. Although encouraging most relates to fleet sales and private consumer registrations has fallen. While manufacturers continue to offer heavy discounts and finance deposit allowances, profitability on new and nearly new cars is suppressed. The current government may incentivise electric vehicle ownership but this remains to be seen, the engagement of potential customers is not as successful as envisaged by many of the manufacturers.

 

Some drivers are opting for repairing rather than replacing and keeping cars longer so there is no shortage of after sales work. In summary, the market is stable but showing little growth but fortunately brand loyalty with the Land Rover product continues to be strong and we are not as exposed to falling registrations as other brands.

 

After considering the impact of the above at Group level, at the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future.

 

Thus, the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

ERIANN HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
1
Accounting policies
(Continued)
- 21 -
1.4
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.

1.5
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.

All fixed assets are initially recorded at cost. In the opinion of the directors the market value of land and buildings exceeds the current net book value.

 

Depreciation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful economic life of that asset as follows:

Freehold land and buildings
1% / 2% straight line
Leasehold land and buildings
Nil
Plant and equipment
10% / 12.5 % / 20% / 25% straight line
Fixtures and fittings
10% / 20% straight line
Motor vehicles
25% reducing balance

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 recognised in the profit and loss account.

1.6
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.7
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible 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.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

ERIANN HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
1
Accounting policies
(Continued)
- 22 -

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.

1.8
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.

1.9
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand.

1.10
Financial instruments

The group 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.

 

Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

ERIANN HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
1
Accounting policies
(Continued)
- 23 -
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.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

1.11
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

1.12
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 group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

ERIANN HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
1
Accounting policies
(Continued)
- 24 -
Deferred tax

Deferred taxation is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date, where transactions or events that result in an obligation to pay more or a right to pay less tax in the future have occurred by the balance sheet date with certain limited exceptions.

 

Deferred tax is calculated on an undiscounted basis at the tax rates that are expected to apply in the periods in which the timing differences are expected to reverse, based on tax rates and laws enacted or substantively enacted at the balance sheet date.

 

Deferred tax is provided in full in respect of taxation deferred by timing differences between the treatment of certain items for taxation and accounting purposes. The deferred tax balance has not been discounted.

1.13
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.

1.14
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

2
Judgements and key sources of estimation uncertainty

In the application of the group’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 current market conditions for that particular class of asset.

ERIANN HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 25 -
3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Sale of goods and services
108,736,154
86,873,057
2023
2022
£
£
Turnover analysed by geographical market
UK
108,736,154
86,873,057
2023
2022
£
£
Other revenue
Interest income
193,355
28,030
4
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
4,100
2,900
Audit of the financial statements of the company's subsidiaries
20,850
19,505
24,950
22,405
For other services
All other non-audit services
15,094
9,010
5
Employees

The average monthly number of persons (including directors) employed by the group and company during the year was:

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Administrative staff
20
20
-
-
Sales/after sales staff
147
149
-
-
Total
167
169
-
0
-
0
ERIANN HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
5
Employees
(Continued)
- 26 -

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
5,655,689
5,066,896
-
0
-
0
Social security costs
532,202
489,545
-
-
Pension costs
333,280
121,757
-
0
-
0
6,521,171
5,678,198
-
0
-
0
6
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging:
Depreciation of owned tangible fixed assets
244,918
193,668
7
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
193,355
28,030
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
193,355
28,030
8
Interest payable and similar expenses
2023
2022
£
£
Other finance costs:
Other interest
14,441
16,005
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
715,560
598,019
Adjustments in respect of prior periods
-
0
278
Total current tax
715,560
598,297
ERIANN HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
9
Taxation
2023
2022
£
£
(Continued)
- 27 -
Deferred tax
Origination and reversal of timing differences
105,467
(439,751)
Changes in tax rates
9,117
-
0
Adjustment in respect of prior periods
146,640
-
0
Total deferred tax
261,224
(439,751)
Total tax charge
976,784
158,546

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
3,423,407
3,238,560
Expected tax charge based on the standard rate of corporation tax in the UK of 23.01% (2022: 19.00%)
787,759
615,326
Tax effect of expenses that are not deductible in determining taxable profit
34,100
680
Tax effect of income not taxable in determining taxable profit
(831)
-
0
Adjustments in respect of prior years
146,640
-
0
Effect of change in corporation tax rate
9,116
(105,540)
Permanent capital allowances in excess of depreciation
-
(8,460)
Depreciation on assets not qualifying for tax allowances
-
6,810
Under/(over) provided in prior years
-
0
278
Deferred tax not recognised on consolidation
-
0
(350,548)
Taxation charge
976,784
158,546
10
Dividends
2023
2022
Recognised as distributions to equity holders:
£
£
Interim paid
225,452
132,200

The recurring post year end monthly dividend payable is £14,287 (2022 - £14,287).

ERIANN HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 28 -
11
Tangible fixed assets
Group
Freehold land and buildings
Leasehold land and buildings
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
£
Cost or valuation
At 1 December 2022
6,040,424
239,117
868,884
534,421
-
0
7,682,846
Additions
153,940
-
0
445,661
3,861
66,712
670,174
At 30 November 2023
6,194,364
239,117
1,314,545
538,282
66,712
8,353,020
Depreciation and impairment
At 1 December 2022
35,843
232,429
498,373
494,857
-
0
1,261,502
Depreciation charged in the year
107,526
668
97,422
28,183
11,119
244,918
At 30 November 2023
143,369
233,097
595,795
523,040
11,119
1,506,420
Carrying amount
At 30 November 2023
6,050,995
6,020
718,750
15,242
55,593
6,846,600
At 30 November 2022
6,004,581
6,688
370,511
39,564
-
0
6,421,344
Company
Freehold land and buildings
£
Cost or valuation
At 1 December 2022
6,040,424
Additions
153,940
At 30 November 2023
6,194,364
Depreciation and impairment
At 1 December 2022
35,843
Depreciation charged in the year
107,526
At 30 November 2023
143,369
Carrying amount
At 30 November 2023
6,050,995
At 30 November 2022
6,004,581

The gross amount of Freehold land and buildings in the group on which depreciation is being provided is £5,438,048 (2022: £5,438,048). Freehold land and buildings includes £756,316 (2022: £602,376) non-depreciable land.

ERIANN HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
11
Tangible fixed assets
(Continued)
- 29 -

Land and buildings were revalued at a value of £6,035,000 at 23 August 2022 by independent valuers not connected with the company on the basis of fair value. The valuation conforms to International Valuation Standards. Additions subsequent to the valuation have been added at fair value and the carrying value of land and buildings at 30 November 2023 was £6,050,995. The directors consider this valuation to be a fair indication of the value of the land and buildings at 30 November 2023.

 

If revalued assets were measured using the cost model, the carrying amounts would have been approximately:

2023
2022
£
£
Group
Cost
5,800,819
5,646,879
Accumulated depreciation
(524,043)
(416,517)
Carrying value
5,276,776
5,230,362
12
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 December 2022 and 30 November 2023
150,000
Amortisation and impairment
At 1 December 2022 and 30 November 2023
150,000
Carrying amount
At 30 November 2023
-
0
At 30 November 2022
-
0
The company had no intangible fixed assets at 30 November 2023 or 30 November 2022.
13
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
14
-
0
-
0
3,457,311
3,457,311
ERIANN HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
13
Fixed asset investments
(Continued)
- 30 -
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 December 2022 and 30 November 2023
3,457,311
Carrying amount
At 30 November 2023
3,457,311
At 30 November 2022
3,457,311
14
Subsidiaries

Details of the company's subsidiaries at 30 November 2023 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
J F & E Hadwin Limited
England
Ordinary
100.00
Ribblesdale Motors Limited
England
Ordinary
100.00
15
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Raw materials and consumables
105,032
81,759
-
-
Finished goods and goods for resale
22,027,068
15,259,790
-
0
-
0
22,132,100
15,341,549
-
-

Included within this figure is an impairment loss of £438,796 (2022: £107,044) which was recognised against stock during the year due to slow-moving and obsolete stock.

ERIANN HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 31 -
16
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
3,755,097
4,257,902
-
0
-
0
Corporation tax recoverable
-
0
34,702
-
0
-
0
Other debtors
439,214
6,743
802
802
Prepayments and accrued income
1,009,525
1,019,991
-
0
-
0
5,203,836
5,319,338
802
802
Amounts falling due after more than one year:
Deferred tax asset (note 19)
-
0
22,028
-
0
-
0
Total debtors
5,203,836
5,341,366
802
802
17
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Other borrowings
18
1,385,000
1,385,000
1,385,000
1,385,000
Trade creditors
15,664,331
11,768,927
-
0
-
0
Amounts owed to group undertakings
-
0
-
0
1,052,477
3,932,261
Corporation tax payable
230,044
379,519
89,310
27,382
Other taxation and social security
143,045
252,416
-
-
Other creditors
446,405
243,363
29,800
85,300
Accruals and deferred income
1,141,649
1,118,856
5,825
4,170
19,010,474
15,148,081
2,562,412
5,434,113

Included within trade creditors is an amount owed to Black Horse Limited of £13,232,603 (2022 - £8,704,494). The creditor is secured by a fixed and floating charge over the vehicles supplied and the proceeds of the sale thereof.

ERIANN HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
17
Creditors: amounts falling due within one year
(Continued)
- 32 -

Other borrowings relate to preference shares.

 

All classes of cumulative preference shares shall be entitled to be redeemed after two years from the date of their issue. The directors, by way of resolution, may determine the terms, conditions and manner of redemption of said shares.

 

The holders of the A preference shares, shall be entitled as a class, in priority to any payments of a dividend on any other ordinary and preferred class of shares, to a cumulative preferential dividend equal to the company ‘A’ preference dividend rate, payable monthly, the dividend to be distributed to the holders of ‘A’ cumulative preference shares pro rata to the number of such shares held by them and the holders of the ‘A’ cumulative preference shares shall not be entitled to any further dividend.

 

The holders of all other classes of preference shares, shall be entitled as a class to a cumulative preferential dividend equal to the company respective class preference dividend rate, payable monthly, the dividend to be distributed to the holders of the respective cumulative preference shares pro rata to the number of such shares held by them and the holders of the respective classes of cumulative preference shares shall not be entitled to any further dividend.

18
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Preference shares
1,385,000
1,385,000
1,385,000
1,385,000
Payable within one year
1,385,000
1,385,000
1,385,000
1,385,000
19
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
Assets
Assets
2023
2022
2023
2022
Group
£
£
£
£
Accelerated capital allowances
239,195
-
-
20,010
Retirement benefit obligations
-
-
-
2,018
239,195
-
-
22,028
Liabilities
Liabilities
Assets
Assets
2023
2022
2023
2022
Company
£
£
£
£
Accelerated capital allowances
146,330
-
-
-
ERIANN HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
19
Deferred taxation
(Continued)
- 33 -
Group
Company
2023
2023
Movements in the year:
£
£
Asset at 1 December 2022
(22,028)
-
Charge to profit or loss
261,223
146,330
Liability at 30 November 2023
239,195
146,330
20
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
333,280
121,757

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

21
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
'A' Ordinary shares of £1 each
250
250
250
250
'B' Ordinary shares of £1 each
190
190
190
190
'C' Ordinary shares of £1 each
240
240
240
240
'D' Ordinary shares of £1 each
20
20
20
20
'E' Ordinary shares of £1 each
50
50
50
50
'F' Ordinary shares of £1 each
250
250
250
250
1,000
1,000
1,000
1,000
ERIANN HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 34 -
22
Operating lease commitments

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
3,966
599
-
-
Between two and five years
11,188
2,397
-
-
15,154
2,996
-
-
23
Events after the reporting date

On 31 December 2023, a further 1,000 A preference shares with a nominal value of £1,000 per share were allotted.

 

On 1 May 2024, 50 I preference shares with a nominal value of £1,000 were redeemed.

24
Related party transactions
Transactions with related parties

During the year the group entered into the following transactions with related parties:

Sales
Sales
Purchases
Purchases
2023
2022
2023
2022
£
£
£
£
Group
Other related parties
1,101,415
525,089
608,374
667,947
Dividends paid
2023
2022
£
£
Group
Key management personnel
165,084
202,584
Other related parties
60,368
53,368

The following amounts were outstanding at the reporting end date:

Amounts due to related parties
2023
2022
£
£
Group
Key management personnel
416,928
203,382
ERIANN HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
24
Related party transactions
(Continued)
- 35 -
Company
Key management personnel
29,800
68,300

The following amounts were outstanding at the reporting end date:

Amounts due from related parties
2023
2022
Balance
Balance
£
£
Group
Other related parties
404,595
130,721
25
Cash generated from group operations
2023
2022
£
£
Profit for the year after tax
2,446,623
3,080,014
Adjustments for:
Taxation charged
976,784
158,546
Finance costs
14,441
16,005
Investment income
(193,355)
(28,030)
Depreciation and impairment of tangible fixed assets
244,918
193,668
Increase in provisions
-
105,236
Movements in working capital:
Increase in stocks
(6,790,551)
(5,217,467)
Decrease/(increase) in debtors
80,800
(2,178,075)
Increase in creditors
4,011,868
4,849,748
Cash generated from operations
791,528
979,645
26
Analysis of changes in net funds - group
1 December 2022
Cash flows
30 November 2023
£
£
£
Cash at bank and in hand
5,338,939
(755,518)
4,583,421
Borrowings excluding overdrafts
(1,385,000)
-
(1,385,000)
3,953,939
(755,518)
3,198,421
ERIANN HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 36 -
27
Cash generated from operations - company
2023
2022
£
£
Profit for the year after tax
2,982,670
2,334,377
Adjustments for:
Taxation charged
235,640
27,382
Investment income
(2,950,902)
(2,255,952)
Depreciation and impairment of tangible fixed assets
107,526
35,843
Movements in working capital:
Increase in debtors
-
(802)
(Decrease)/increase in creditors
(2,933,629)
3,968,897
Cash (absorbed by)/generated from operations
(2,558,695)
4,109,745
28
Analysis of changes in net debt - company
1 December 2022
Cash flows
30 November 2023
£
£
£
Cash at bank and in hand
102,741
(14,567)
88,174
Borrowings excluding overdrafts
(1,385,000)
-
(1,385,000)
(1,282,259)
(14,567)
(1,296,826)
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