REGISTERED NUMBER: NI601214 (Northern Ireland) |
BROOKMOUNT HOLDINGS LTD |
Group Strategic Report, Directors' Report and |
Consolidated Financial Statements for the Year Ended 31 December 2023 |
REGISTERED NUMBER: NI601214 (Northern Ireland) |
BROOKMOUNT HOLDINGS LTD |
Group Strategic Report, Directors' Report and |
Consolidated Financial Statements for the Year Ended 31 December 2023 |
BROOKMOUNT HOLDINGS LTD (REGISTERED NUMBER: NI601214) |
Contents of the Consolidated Financial Statements |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Directors' Report | 3 |
Independent Auditors' Report | 5 |
Consolidated Income Statement | 9 |
Consolidated Statement of Financial Position | 10 |
Company Statement of Financial Position | 11 |
Consolidated Statement of Changes in Equity | 12 |
Company Statement of Changes in Equity | 13 |
Consolidated Statement of Cash Flows | 14 |
Notes to the Consolidated Statement of Cash Flows |
15 |
Notes to the Consolidated Financial Statements | 16 |
BROOKMOUNT HOLDINGS LTD |
Company Information |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
INDEPENDENT AUDITORS: |
Chartered Accountants and Statutory Auditors |
36-38 Northland Row |
Dungannon |
Co. Tyrone |
BT71 6AP |
BANKERS: | Bank of Ireland |
1 Donegall Square South |
Belfast |
BT1 5LR |
BROOKMOUNT HOLDINGS LTD (REGISTERED NUMBER: NI601214) |
Group Strategic Report |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
The directors present their strategic report of the Company and the Group for the year ended 31 December 2023. |
PRINCIPAL ACTIVITY |
The principal activity of the company is that of a holding company. The principal activity of the group is the retail of motor vehicles and related services. |
REVIEW OF BUSINESS |
The directors aim to present a balanced and comprehensive review of the development and performance of the group during the year, as well as its position at 31 December 2023. The review is consistent with the size and nature of the group and is written in the context of the risks and uncertainties faced. |
The group's business has performed satisfactorily during the year and remains in a sound financial position at the year end. |
The directors consider that the key performance indicators are those that communicate the financial performance and strengths of the group as a whole being revenue, gross profit margin. |
Revenue for the year increased to £32.9m (2022: £25.7m). The gross profit margin increased slightly during the year and the group's operating profit was returned at £1,092,831 (2022: £1,097,552). |
The group's key performance indicators are as follows; |
2023 | 2022 |
Revenue | £32.9 million | £25.7 million |
Gross Profit % | 11.2% | 13.1% |
PRINCIPAL RISKS AND UNCERTAINTIES |
As for many businesses of this size the principal risks and uncertainties are considered to relate to competition from other car dealerships, supplier stability, franchise support, employee retention and the current economic climate. The directors will continue to work closely with suppliers, customers, staff and financial institutions to carefully manage the business and its principal risks and uncertainties. |
Competition Risk |
Competition risk comes from other car dealerships. The directors manage this risk ensuring a quality product offering and service is provided to all customers. |
Economic Risk |
Economic risk is inherent in the industry in which the group operates. The directors manage this risk by ensuring relationships with suppliers are maintained with the group having long standing relationships with such entities. |
FUTURE DEVELOPMENTS |
The directors are committed to long term creation of shareholder value by increasing it's market share in the Northern Ireland market. The directors are confident that their current strategy will result in continued growth and profitability. |
EMPLOYMENT POLICY |
The group is dependent on the skills and commitment of its employees in order to achieve its objectives. Group staff at every level are encouraged to make their fullest possible contribution to the group's success. The group's selection, training, development and promotion policies ensure equal opportunites for all employees, regardless of gender, martial status, race, age or disability. All decisions are based on merit. |
ON BEHALF OF THE BOARD: |
BROOKMOUNT HOLDINGS LTD (REGISTERED NUMBER: NI601214) |
Directors' Report |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
The directors present their report with the audited financial statements of the Company and the Group for the year ended 2023. |
DIVIDENDS |
No interim dividends were paid in the year (2022: £Nil). The directors did not recommend payment of a final dividend. (2022: £Nil) |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 January 2023 to the date of this report. |
FINANCIAL RISK MANAGEMENT |
The group and company's operations expose them to a variety of financial risks that include credit risk and liquidity risk. The group and company has in place a risk management programme that seeks to limit the adverse effects on the financial performance of the group and company by monitoring levels of debt finance and the related finance costs. Given the size of the group and company, the directors have not delegated the responsibility of monitoring financial risk management to a sub-committee of the board. The policies set by the board of directors are implemented by the group's and company's finance department. |
Credit risk |
The group and company operate policies that require appropriate credit checks on potential customers before sales are made. The amount of exposure to individual customers is subject to a limit, which is reassessed regularly by the board. |
Liquidity risk |
The group and company actively maintain a mixture of long-term and short-term debt finance that is designed to ensure that the group and company have sufficient available funds for operations and planned expansions. |
DISCLOSURES REQUIRED UNDER SCHEDULE 7 |
In accordance with Section 414C (11) of Companies Act 2006, the directors have elected to disclose details of the business review, principal risks and uncertainties, employment policy and future developments in the Company's Strategic Report which would otherwise be required to be disclosed in the Directors' Report. |
DIRECTORS' RESPONSIBILITIES STATEMENT |
The directors are responsible for preparing the Group Strategic Report, the Directors' 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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 the Group and of the profit or loss of the Group for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's and the Group's transactions and disclose with reasonable accuracy at any time the financial position of the Company and the Group 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 the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
BROOKMOUNT HOLDINGS LTD (REGISTERED NUMBER: NI601214) |
Directors' Report |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the Group's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the Group's auditors are aware of that information. |
AUDITORS |
The auditors, CavanaghKelly, have indicated their willingness to continue in office in accordance with the provision of Section 485 of the Companies Act 2006. |
ON BEHALF OF THE BOARD: |
Independent Auditors' Report to the Members of |
Brookmount Holdings Ltd |
Opinion |
We have audited the financial statements of Brookmount Holdings Ltd (the 'Parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 2023 which comprise the Consolidated Income Statement, Consolidated Statement of Financial Position, Company Statement of Financial Position, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Statement of Cash Flows and Notes to the Consolidated Statement of Cash Flows, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the Group's and of the Parent Company affairs as at 31 December 2023 and of the Group's profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group 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 the 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 directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Directors' Report, but does not include the financial statements and our Auditors' Report thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Group 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 Group Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements. |
Independent Auditors' Report to the Members of |
Brookmount Holdings Ltd |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the Group and the Parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Directors' Report. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept by the Parent Company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the Parent Company financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Directors' Responsibilities Statement set out on page three, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the Group's and 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 Group or the Parent Company or to cease operations, or have no realistic alternative but to do so. |
Independent Auditors' Report to the Members of |
Brookmount Holdings Ltd |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' 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. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud |
Irregularities, including fraud, are instances of non-compliance with laws and regulations. The objectives of our audit in respect of fraud are to assess the risk of material misstatement due to fraud, design and implement appropriate responses to those assessed risks and to respond appropriately to instances of fraud or suspected fraud identified during the course of our audit. However, the primary responsibility for the prevention and detection of fraud rests with management and those charged with governance of the company. |
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following: |
- | We obtained understanding of the legal and regulatory requirements applicable to the company’s financial statements and considered the most significant are the Companies Act 2006, Financial Reporting Standards (FRS102) and UK taxation legislation; |
- | We have assessed the risk of material misstatement of the financial statements, including risk of material misstatement due to fraud and how it might occur by holding discussions with management and those charged with governance; |
- | We enquired of management and those charged with governance as to any known instances of non-compliance or suspected non-compliance with laws and regulations; |
- | Understanding the internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations; and |
- | Discussions amongst the audit engagement team regarding how fraud might occur in the financial statements and any potential indicators of fraud. As part of this discussion we identified the following potential areas where fraud may occur: timing of revenue recognition and management override. |
The audit response to risks identified included: |
- | Reviewing the financial statements disclosures and testing to supporting documentation to assess compliance with the relevant laws and regulations above; |
- | Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risk of material misstatement due to fraud; |
- | In addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments, assessing whether the judgements made in making accounting estimates are reasonable and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business. |
In addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments, assessing whether the judgements made in making accounting estimates are reasonable and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report. |
Independent Auditors' Report to the Members of |
Brookmount Holdings Ltd |
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 Auditors' 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. |
for and on behalf of |
Chartered Accountants and Statutory Auditors |
36-38 Northland Row |
Dungannon |
Co. Tyrone |
BT71 6AP |
BROOKMOUNT HOLDINGS LTD (REGISTERED NUMBER: NI601214) |
Consolidated |
Income Statement |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ |
REVENUE | 5 | 32,880,230 | 25,650,126 |
Cost of sales | (29,224,671 | ) | (22,290,615 | ) |
GROSS PROFIT | 3,655,559 | 3,359,511 |
Distribution costs | (1,892,662 | ) | (1,673,126 | ) |
Administrative expenses | (670,066 | ) | (588,833 | ) |
OPERATING PROFIT | 7 | 1,092,831 | 1,097,552 |
PROFIT BEFORE TAXATION | 1,092,831 | 1,097,552 |
Tax on profit | 8 | (271,285 | ) | (230,482 | ) |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
821,546 |
867,070 |
Profit attributable to: |
Owners of the parent | 821,546 | 867,070 |
Total comprehensive income attributable to: |
Owners of the parent | 821,546 | 867,070 |
BROOKMOUNT HOLDINGS LTD (REGISTERED NUMBER: NI601214) |
Consolidated Statement of Financial Position |
31 DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ |
NON-CURRENT ASSETS |
Intangible assets | 10 | - | - |
Property, plant and equipment | 11 | 2,886,105 | 2,948,662 |
Investments | 12 | - | - |
2,886,105 | 2,948,662 |
CURRENT ASSETS |
Inventories | 13 | 6,727,245 | 6,762,511 |
Receivables: amounts falling due within one year |
14 |
559,522 |
224,079 |
Cash at bank and in hand | 256,904 | 332,623 |
7,543,671 | 7,319,213 |
PAYABLES |
Amounts falling due within one year | 15 | (7,094,629 | ) | (7,756,548 | ) |
NET CURRENT ASSETS/(LIABILITIES) | 449,042 | (437,335 | ) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
3,335,147 |
2,511,327 |
PROVISIONS FOR LIABILITIES | 17 | (46,039 | ) | (43,765 | ) |
NET ASSETS | 3,289,108 | 2,467,562 |
CAPITAL AND RESERVES |
Called up share capital | 18 | 2 | 2 |
Retained earnings | 3,289,106 | 2,467,560 |
SHAREHOLDERS' FUNDS | 3,289,108 | 2,467,562 |
The financial statements were approved by the Board of Directors and authorised for issue on 9 August 2024 and were signed on its behalf by: |
N McGurk - Director |
K Lynch - Director |
BROOKMOUNT HOLDINGS LTD (REGISTERED NUMBER: NI601214) |
Company Statement of Financial Position |
31 DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ |
NON-CURRENT ASSETS |
Intangible assets | 10 |
Property, plant and equipment | 11 |
Investments | 12 |
CURRENT ASSETS |
Receivables: amounts falling due within one year |
14 |
Cash at bank |
PAYABLES |
Amounts falling due within one year | 15 | ( |
) | ( |
) |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
PROVISIONS FOR LIABILITIES | 17 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 18 |
Retained earnings |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 538,582 | 1,924,732 |
The financial statements were approved by the Board of Directors and authorised for issue on |
BROOKMOUNT HOLDINGS LTD (REGISTERED NUMBER: NI601214) |
Consolidated Statement of Changes in Equity |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 January 2022 | 2 | 1,600,490 | 1,600,492 |
Changes in equity |
Total comprehensive income | - | 867,070 | 867,070 |
Balance at 31 December 2022 | 2 | 2,467,560 | 2,467,562 |
Changes in equity |
Total comprehensive income | - | 821,546 | 821,546 |
Balance at 31 December 2023 | 2 | 3,289,106 | 3,289,108 |
BROOKMOUNT HOLDINGS LTD (REGISTERED NUMBER: NI601214) |
Company Statement of Changes in Equity |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 January 2022 | ( |
) | ( |
) |
Changes in equity |
Profit for the year | - | 1,924,732 | 1,924,732 |
Total comprehensive income | - |
Balance at 31 December 2022 |
Changes in equity |
Profit for the year | - | 538,582 | 538,582 |
Total comprehensive income | - |
Balance at 31 December 2023 |
BROOKMOUNT HOLDINGS LTD (REGISTERED NUMBER: NI601214) |
Consolidated Statement of Cash Flows |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 299,658 | 627,804 |
Tax paid | (334,863 | ) | (359,794 | ) |
Net cash from operating activities | (35,205 | ) | 268,010 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (40,514 | ) | (239,209 | ) |
Net cash from investing activities | (40,514 | ) | (239,209 | ) |
(Decrease)/increase in cash and cash equivalents | (75,719 | ) | 28,801 |
Cash and cash equivalents at beginning of year |
2 |
332,623 |
303,822 |
Cash and cash equivalents at end of year |
2 |
256,904 |
332,623 |
BROOKMOUNT HOLDINGS LTD (REGISTERED NUMBER: NI601214) |
Notes to the Consolidated Statement of Cash Flows |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2023 | 2022 |
£ | £ |
Profit before taxation | 1,092,831 | 1,097,552 |
Depreciation charges | 103,073 | 92,409 |
1,195,904 | 1,189,961 |
Decrease/(increase) in inventories | 35,266 | (1,565,639 | ) |
Increase in trade and other debtors | (335,443 | ) | (40,528 | ) |
(Decrease)/increase in trade and other creditors | (596,069 | ) | 1,044,010 |
Cash generated from operations | 299,658 | 627,804 |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts: |
Year ended 31 December 2023 |
31/12/23 | 1/1/23 |
£ | £ |
Cash and cash equivalents | 256,904 | 332,623 |
Year ended 31 December 2022 |
31/12/22 | 1/1/22 |
£ | £ |
Cash and cash equivalents | 332,623 | 303,822 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1/1/23 | Cash flow | At 31/12/23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 332,623 | (75,719 | ) | 256,904 |
332,623 | (75,719 | ) | 256,904 |
Total | 332,623 | (75,719 | ) | 256,904 |
BROOKMOUNT HOLDINGS LTD (REGISTERED NUMBER: NI601214) |
Notes to the Consolidated Financial Statements |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
1. | STATUTORY INFORMATION |
Brookmount Holdings Ltd is a private company, limited by shares, registered in Northern Ireland, within the United Kingdom. The company's registered number and registered office address can be found on the General Information page. The principal activity of the company is that of a holding company. The principal activity of the group is the retail of motor vehicles and related services. |
2. | STATEMENT OF COMPLIANCE |
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements are stated in Pound Sterling (£) which is also the functional currency of the group. |
3. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The financial statements have been prepared on a going concern basis under the historical cost convention. Historical cost is generally based on the fair value of consideration given in exchange for assets. The following accounting policies have been applied consistently in dealing with items which are considered material in relation to the group financial statements. |
The preparation of financial statements requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the group and company accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements are disclosed in note 4. |
Group Financial Statements |
The group financial statements consolidate the financial statements of its subsidiary undertakings drawn up to 31 December each year. Consistent accounting policies are applied across companies within the group. The results of subsidiary undertakings sold or acquired are included in the consolidated income statement up to or from the date control passes. Intra-group sales, profits and balances are eliminated fully on consolidation. No income statement is presented for Brookmount Holdings Ltd as permitted by section 408 of the Companies Act 2006. |
The following principal accounting policies have been applied consistently unless otherwise stated: |
Financial Reporting Standard 102 - reduced disclosure exemptions |
FRS 102 allows a qualifying entity certain disclosure exemptions, subject to certain conditions. |
The company has taken advantage of the following exemptions: |
- |
from presenting its own Income Statement in the financial statements as permitted under section 408 of the Companies Act 2006: |
- |
from preparing a Statement of cash flows on the basis that it is a qualifying entity: its cash flows is included in the cash flows in the consolidated financial statements: |
- |
from the financial instrument disclosures, required under FRS 102 paragraphs 11.41(b) to 11.48(c) and 12.26 to 12.29. as the information is provided in the consolidated statement disclosure; and |
- |
from disclosing the company's key management personnel compensation as required by FRS 102 paragraph 33.7. |
BROOKMOUNT HOLDINGS LTD (REGISTERED NUMBER: NI601214) |
Notes to the Consolidated Financial Statements - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
3. | ACCOUNTING POLICIES - continued |
Revenue |
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the group and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised: |
Sale of goods: |
Revenue from the sale of goods is recognised when all of the following conditions are satisfied: |
- the significant risks and rewards of ownership have been transferred to the buyer; |
- the group retains no continuing involvement or control over the goods; |
- the amount of revenue can be measured reliably; |
- it is probable that future economic benefits will flow through the group, and; |
- the costs incurred or to be incurred in respect of the transaction can be measured reliably. |
Sale of services: |
Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied: |
- the amount of revenue can be measured reliably; |
- it is probable that the group will receive consideration due under the contract; |
- the stage of completion of the contract at the end of the reporting period can be measured reliably, and; |
- the costs incurred and the costs to complete the contract can be measured reliably. |
Goodwill |
Purchased goodwill arising on the acquisition of a business represents the excess of the acquisition cost over the fair value of the identifiable net assets including other intangible fixed assets when they were acquired. Purchased goodwill is capitalised in the Statement of Financial Position and amortised on a straight line basis over its economic useful life of 5 years, which is estimated to be the period during which benefits are expected to arise. On disposal of a business any goodwill not yet amortised is included in determining the profit or loss on sale of the business. |
Goodwill is reviewed for impairment at the end of the first full financial year following acquisition and in other periods if events or changes in circumstances indicate that the carrying value may not be recoverable. |
Property, plant and equipment |
Property, plant and equipment are stated at cost or at valuation, less accumulated depreciation. Historical cost includes expenditure that is directly attributable to bringing the asset to the location. The charge to depreciation is calculated to write off the original cost or valuation of property, plant and equipment, less their estimated residual value, over their expected useful lives as follows: |
Freehold property | 4% straight line |
Plant and machinery | 15% straight line |
Fixtures and fittings | 25% straight line |
Computer equipment | 10% straight line |
The carrying values of property, plant and equipment are reviewed annually for impairment in periods if events or changes in circumstances indicate the carrying value may not be recoverable. |
Inventories |
Inventories are valued at the lower of cost and net realisable value. Cost comprises expenditure incurred in the normal course of business in bringing stocks to their present location and condition. Full provision is made for obsolete and slow moving items. Net realisable value comprises actual or estimated selling price (net of trade discounts) less all further costs to completion or to be incurred in marketing and selling. |
Consignment inventory is not recognised until there has been a substantial transfer of the risk and rewards of ownership. |
BROOKMOUNT HOLDINGS LTD (REGISTERED NUMBER: NI601214) |
Notes to the Consolidated Financial Statements - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
3. | ACCOUNTING POLICIES - continued |
Financial instruments |
The company and group have chosen to adopt Sections 11 and 12 of FRS 102 in respect of financial instruments. |
(i) Financial assets |
Basic financial assets, including trade and other receivables, cash and bank balances and amounts owed by group companies are initially recognised at transaction price, 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. Such assets are subsequently carried at amortised cost using the effective interest method. |
At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. 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 the Income Statement. |
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 the Income Statement. |
Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) despite having retained some significant risks and rewards of ownership, control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions. |
(ii) Financial liabilities |
Basic financial liabilities, including trade and other payables, bank loans and overdrafts and hire purchase contracts 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 receipts discounted at a market rate of interest. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw-down occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalised as a pre-payment for liquidity services and amortised over the period of the facility to which it relates. |
Trade payables 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 payment is due within one year or less. If not, they are presented as non-current liabilities. Trade payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method. |
Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires. |
(iii) Offsetting |
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. |
BROOKMOUNT HOLDINGS LTD (REGISTERED NUMBER: NI601214) |
Notes to the Consolidated Financial Statements - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
3. | ACCOUNTING POLICIES - continued |
Taxation |
Current tax represents the amount expected to be paid or recovered in respect of taxable profits for the year and is calculated using the tax rates and laws that have been enacted or substantially enacted at the Statement of Financial Position date. |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the Statement of Financial Position date where transactions or events have occurred at that date that will result in an obligation to pay more tax in the future, or a right to pay less tax in the future. Timing differences are temporary differences between the company's taxable profits and its results as stated in the financial statements. |
Deferred tax is measured on an undiscounted basis at the tax rates that are anticipated to apply in the periods in which the timing differences are expected to reverse, based on tax rates and laws that have been enacted or substantively enacted by the Statement of Financial Position date. |
Pension costs |
The group operates a defined contribution pension scheme for employees. The assets of the scheme are held separately from those of the group. Annual contributions payable to the group's pension scheme are charged to the Income Statement in the period to which they relate. |
Share capital |
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new ordinary shares or options are shown in equity as a deduction, net of tax, from the proceeds. |
Investments in subsidiaries |
Investments in subsidiaries are measured at cost less impairment. |
4. | CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY |
(a) Critical judgements and estimation uncertainty |
There are no critical judgements in applying the group's accounting policies. |
(b) Key accounting estimates and assumptions |
There are no key accounting estimates and assumptions in applying the group's accounting policies. |
5. | REVENUE |
The whole of revenue is attributable to the company's main activity which is carried out in the United Kingdom. |
6. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
£ | £ |
Wages and salaries | 1,679,184 | 1,443,898 |
Social security costs | 145,946 | 138,663 |
Pensions | 28,290 | 40,265 |
1,853,420 | 1,622,826 |
BROOKMOUNT HOLDINGS LTD (REGISTERED NUMBER: NI601214) |
Notes to the Consolidated Financial Statements - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
EMPLOYEES AND DIRECTORS - continued |
The average number of employees during the year was as follows: |
2023 | 2022 |
Administration | 6 | 6 |
Selling and distribution | 50 | 45 |
56 | 51 |
2023 | 2022 |
£ | £ |
Directors' remuneration | 47,824 | 50,328 |
During the year, retirement benefits were accruing to 2 directors (2022: 2). The directors are considered the key management of the group. |
The company had no employees during the year (2022: Nil). |
7. | OPERATING PROFIT |
The operating profit is stated after charging: |
2023 | 2022 |
£ | £ |
Depreciation - owned assets | 103,071 | 92,409 |
Auditor's remuneration - audit services | 11,490 | 12,000 |
Operating lease rentals | - | 250 |
8. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2023 | 2022 |
£ | £ |
Current tax: |
UK corporation tax | 269,011 | 198,169 |
Deferred tax | 2,274 | 32,313 |
Tax on profit | 271,285 | 230,482 |
BROOKMOUNT HOLDINGS LTD (REGISTERED NUMBER: NI601214) |
Notes to the Consolidated Financial Statements - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
8. | TAXATION - continued |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
2023 | 2022 |
£ | £ |
Profit before tax | 1,092,831 | 1,097,552 |
Profit multiplied by the standard rate of corporation tax in the UK of 23.520 % (2022 - 19 %) |
257,034 |
208,535 |
Effects of: |
Expenses not deductible for tax purposes | 656 | 505 |
Adjustments to tax charge in respect of previous periods | - | 12,089 |
Non-relevant depreciation | 13,630 | 10,080 |
Impact of super-deduction | (168 | ) | (5,581 | ) |
Impact of rate change | 133 | 4,854 |
Total tax charge | 271,285 | 230,482 |
9. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
10. | INTANGIBLE FIXED ASSETS |
Company |
Goodwill |
£ |
COST |
At 1 January 2023 |
and 31 December 2023 |
AMORTISATION |
At 1 January 2023 |
and 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
BROOKMOUNT HOLDINGS LTD (REGISTERED NUMBER: NI601214) |
Notes to the Consolidated Financial Statements - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
11. | PROPERTY, PLANT AND EQUIPMENT |
Group |
Fixtures |
Freehold | Plant and | and | Computer |
property | machinery | fittings | equipment | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 January 2023 | 2,999,523 | 380,953 | 351,993 | 22,201 | 3,754,670 |
Additions | - | 35,054 | 4,460 | 1,000 | 40,514 |
At 31 December 2023 | 2,999,523 | 416,007 | 356,453 | 23,201 | 3,795,184 |
DEPRECIATION |
At 1 January 2023 | 179,817 | 311,831 | 294,630 | 19,730 | 806,008 |
Charge for year | 58,849 | 22,719 | 19,466 | 2,037 | 103,071 |
At 31 December 2023 | 238,666 | 334,550 | 314,096 | 21,767 | 909,079 |
NET BOOK VALUE |
At 31 December 2023 | 2,760,857 | 81,457 | 42,357 | 1,434 | 2,886,105 |
At 31 December 2022 | 2,819,706 | 69,122 | 57,363 | 2,471 | 2,948,662 |
Company |
Freehold |
property |
£ |
COST |
At 1 January 2023 |
and 31 December 2023 |
DEPRECIATION |
At 1 January 2023 |
Charge for year |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
BROOKMOUNT HOLDINGS LTD (REGISTERED NUMBER: NI601214) |
Notes to the Consolidated Financial Statements - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
12. | FIXED ASSET INVESTMENTS |
Company |
2023 | 2022 |
£ | £ |
Cost | 500,000 | 500,000 |
The Group or the Company's investments at the Statement of Financial Position date in the share capital of companies include the following: |
Subsidiaries |
T.J. Hamilton & Company Limited |
Registered office: Brookmount, 18 Dungannon Road, Cookstown, Co. Tyrone, BT80 8TL |
Nature of business: Retail of motor vehicles |
Class of shares: |
Ordinary | 100% |
Mid Ulster Cars Limited |
Registered office: Brookmount, 18 Dungannon Road, Cookstown, Co. Tyrone, BT80 8TL |
Nature of business: Retail of motor vehicles |
Class of shares: |
Ordinary | 100% |
13. | INVENTORIES |
Group |
2023 | 2022 |
£ | £ |
Goods for resale | 6,727,245 | 6,762,511 |
Stock on consignment is not recognised in the balance sheet because the terms of the contract state: |
i) title to the vehicle does not pass to the dealer until full payment is due; |
ii) the manufacturer can demand the return of stock within the consignment year; and |
iii) no interest is payable on consignment stock within terms set out in the individual franchise agreements. |
At 31 December 2023, the value of consignment stock off balance sheet was £709,960 (2022: £776,050). |
14. | RECEIVABLES: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Trade receivables | 167,935 | 118,862 |
Other receivables | - | 44,316 | - | - |
Amounts owed by group undertakings | - | - |
Amounts owed by related parties | 359,171 | 10,533 |
VAT | - | 23,853 |
Prepayments and accrued income | 32,416 | 26,515 |
559,522 | 224,079 |
Amounts owed by group and related undertakings are unsecured, interest free and repayable on demand. |
BROOKMOUNT HOLDINGS LTD (REGISTERED NUMBER: NI601214) |
Notes to the Consolidated Financial Statements - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
15. | PAYABLES: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Trade payables | 847,499 | 851,493 |
Amounts owed to related parties | 4,870,493 | 5,420,480 | 4,470,480 | 4,470,480 |
Corporation Tax | 43,413 | 94,681 |
Social security and other taxes | 273,564 | 156,365 |
Other payables | 458,160 | 586,462 |
Accruals and deferred income | 601,500 | 647,067 |
7,094,629 | 7,756,548 |
Amounts owed to group and related undertakings are unsecured, interest free and payable on demand. |
16. | FINANCIAL INSTRUMENTS |
Group | Group |
2023 | 2022 |
£ | £ |
Carrying amount of financial assets |
Debt instruments measured at amortised cost | 4,099,639 | 173,711 |
Carrying amount of financial liabilities |
Measured at amortised cost | 10,350,185 | 7,505,502 |
17. | PROVISIONS FOR LIABILITIES |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Deferred tax | 46,039 | 43,765 | 18,934 | 16,392 |
Group |
Deferred tax |
£ |
Balance at 1 January 2023 | 43,765 |
Provided during year | 2,274 |
Balance at 31 December 2023 | 46,039 |
Company |
Deferred tax |
£ |
Balance at 1 January 2023 |
Provided during year |
Balance at 31 December 2023 |
Deferred taxation relates to accelerated capital allowances. |
BROOKMOUNT HOLDINGS LTD (REGISTERED NUMBER: NI601214) |
Notes to the Consolidated Financial Statements - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
18. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary | 2 | 2 | 2 |
19. | PENSION COMMITMENTS |
The group operates a defined contribution pension scheme in respect of the employees. The scheme and its assets are held by independent managers. The pension charge represents contributions due from the group and amounted to £28,290 (2022: £40,265). |
20. | RELATED PARTY DISCLOSURES |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
Directors of the company, Paul and Nigel McGurk, are regarded as related parties due to their position within the group. At the 31 December 2023, £318,986 (2022: £408,212) was owed by the group to the directors. This is disclosed in Other Payables in Note 14 of the financial statements. |
Northern View Leisure Limited, a company established in Northern Ireland, is considered a related party due to common shareholders, and directors. |
Paul and Nigel McGurk, directors of Brookmount Holdings Limited are also directors of Northern View Leisure Limited. |
At the 31 December 2023, £4,470,480 (2022: £4,470,480) was owed from Brookmount Holdings Ltd to Northern View Leisure Limited and is disclosed in Note 14 of the financial statements. |
21. | ULTIMATE CONTROLLING PARTY |
The ultimate controlling parties are Paul and Nigel McGurk. |