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Registration number: 05787157

Honda of Bournemouth Limited

Annual Report and Unaudited Financial Statements

for the Year Ended 31 December 2023

image-name
 

Honda of Bournemouth Limited

Contents

Company Information

1

Balance Sheet

2 to 3

Notes to the Unaudited Financial Statements

4 to 12

 

Honda of Bournemouth Limited

Company Information

Directors

Mr Stuart August

Mr John August

Company secretary

Mrs Doreen Elizabeth August

Registered office

5B Leyland Road
Poole
Dorset
BH12 5HB

Bankers

NatWest Bank plc
SALISBURY
740 Waterside Drive
Aztec West
Almondsbury
Bristol
BS99 5BD

Accountants

A Ferguson Associates Ltd
Accountants and Business Advisors
Alum House
5 Alum Chine Road
Bournemouth
Dorset
BH4 8DT

 

Honda of Bournemouth Limited

(Registration number: 05787157)
Balance Sheet as at 31 December 2023

Note

2023
£

2022
£

Fixed assets

 

Tangible assets

4

649,373

666,955

Current assets

 

Stocks

5

578,706

325,436

Debtors

6

14,506

5,324

Cash at bank and in hand

 

66,132

130,390

 

659,344

461,150

Creditors: Amounts falling due within one year

7

(731,233)

(556,597)

Net current liabilities

 

(71,889)

(95,447)

Total assets less current liabilities

 

577,484

571,508

Creditors: Amounts falling due after more than one year

7

(23,402)

(52,308)

Provisions for liabilities

(8,051)

(10,092)

Net assets

 

546,031

509,108

Capital and reserves

 

Called up share capital

8

10,100

10,100

Revaluation reserve

175,894

175,894

Retained earnings

360,037

323,114

Shareholders' funds

 

546,031

509,108

For the financial year ending 31 December 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

 

Honda of Bournemouth Limited

(Registration number: 05787157)
Balance Sheet as at 31 December 2023

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime. As permitted by section 444 (5A) of the Companies Act 2006, the directors have not delivered to the registrar a copy of the Profit and Loss Account.

Approved and authorised by the Board on 9 August 2024 and signed on its behalf by:
 

.........................................
Mr Stuart August
Director

.........................................
Mr John August
Director

 
     
 

Honda of Bournemouth Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2023

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
5B Leyland Road
Poole
Dorset
BH12 5HB
England

These financial statements were authorised for issue by the Board on 9 August 2024.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Going concern

The financial statements have been prepared on a going concern basis.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

 

Honda of Bournemouth Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2023

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred tax is provided for on the revaluation of the Freehold Property at deemed cost on transition to FRS102.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Plant and machinery

20% reducing balance

Furniture and fittings

15% reducing balance

Office equipment

25% reducing balance

Motor vehicles

25% reducing balance

Freehold property

1% straight line

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

 

Honda of Bournemouth Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2023

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

 

Honda of Bournemouth Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2023

Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the profit and loss account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

3

Staff numbers

The average number of persons employed by the company (including directors) during the year, was 7 (2022 - 6).

 

Honda of Bournemouth Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2023

4

Tangible assets

Land and buildings
£

Furniture, fittings and equipment
 £

Motor vehicles
 £

Other tangible assets
£

Total
£

Cost or valuation

At 1 January 2023

625,000

45,554

39,928

52,882

763,364

Additions

-

-

-

2,795

2,795

At 31 December 2023

625,000

45,554

39,928

55,677

766,159

Depreciation

At 1 January 2023

12,500

31,498

17,469

34,942

96,409

Charge for the year

6,250

2,493

7,487

4,147

20,377

At 31 December 2023

18,750

33,991

24,956

39,089

116,786

Carrying amount

At 31 December 2023

606,250

11,563

14,972

16,588

649,373

At 31 December 2022

612,500

14,056

22,459

17,940

666,955

Included within the net book value of land and buildings above is £606,250 (2022 - £612,500) in respect of freehold land and buildings.
 

 

Honda of Bournemouth Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2023

Revaluation

The fair value of the company's Freehold Property was revalued on 20 May 2021 by an independent valuer.
Detailed valuation report supplied by the firm Vail Williiams. Valuation of £625,000 reported at fair value.
No material charge in year to fair value of property reported in the previous year.
. The name and qualification of the independent valuer are Simon Tubbs - BSc (Hons) MRICS.
Had this class of asset been measured on a historical cost basis, the carrying amount would have been £452,601 (2022 - £452,601).

5

Stocks

2023
£

2022
£

Finished goods and goods for resale

578,706

325,436

6

Debtors

Current

2023
£

2022
£

Trade debtors

11,529

3,154

Prepayments

2,977

2,170

 

14,506

5,324

 

Honda of Bournemouth Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2023

7

Creditors

Creditors: amounts falling due within one year

Note

2023
£

2022
£

Due within one year

 

Loans and borrowings

9

216,177

254,584

Trade creditors

 

348,458

173,420

Taxation and social security

 

76,479

66,981

Accruals and deferred income

 

2,490

2,714

Other creditors

 

87,629

58,898

 

731,233

556,597

Creditors include bank loans and overdrafts and net obligations under finance lease and hire purchase contracts which are secured of £17,834 (2022 - £21,616).

Creditors: amounts falling due after more than one year

Note

2023
£

2022
£

Due after one year

 

Loans and borrowings

9

23,402

52,308

Creditors include bank loans and overdrafts and net obligations under finance lease and hire purchase contracts which are secured of £18,501 (2022 - £26,844).

 

Honda of Bournemouth Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2023

8

Share capital

Allotted, called up and fully paid shares

2023

2022

No.

£

No.

£

Ordinary shares of £1 each

100

100

100

100

Preference shares of £1 each

10,000

10,000

10,000

10,000

10,100

10,100

10,100

10,100

9

Loans and borrowings

Non-current loans and borrowings

2023
£

2022
£

Bank borrowings

14,959

34,355

Hire purchase contracts

8,443

16,886

Other borrowings

-

1,067

23,402

52,308

Current loans and borrowings

2023
£

2022
£

Bank borrowings

19,350

23,069

Hire purchase contracts

8,442

8,442

Other borrowings

188,385

223,073

216,177

254,584

Bank borrowings

Bounce Bank Loan is denominated in GBP with a nominal interest rate of 2.5%%, and the final instalment is due on 31 May 2026. The carrying amount at year end is £24,917 (2022 - £34,803).

NatWest Bank Loan is denominated in GBP with a nominal interest rate of 7.05%%, and the final instalment is due on 19 September 2024. The carrying amount at year end is £9,391 (2022 - £22,683).

Charge held by Nat West on the freehold property.

 

Honda of Bournemouth Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2023

Other borrowings

Honda Finance Loan is denominated in GBP with a nominal interest rate of 5.05%, and the final instalment is due on 31 January 2024. The carrying amount at year end is £1,068 (2022 - £9,322).