REGISTERED NUMBER: 13631763 (England and Wales) |
Newbegin Corporation Limited |
Group Strategic Report, Report of the Directors and |
Consolidated Financial Statements for the Year Ended 31st December 2023 |
REGISTERED NUMBER: 13631763 (England and Wales) |
Newbegin Corporation Limited |
Group Strategic Report, Report of the Directors and |
Consolidated Financial Statements for the Year Ended 31st December 2023 |
Newbegin Corporation Limited (Registered number: 13631763) |
Contents of the Consolidated Financial Statements |
for the year ended 31st December 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 3 |
Report of the Independent Auditors | 6 |
Consolidated Statement of Comprehensive Income | 10 |
Consolidated Balance Sheet | 11 |
Company Balance Sheet | 12 |
Consolidated Statement of Changes in Equity | 13 |
Company Statement of Changes in Equity | 14 |
Consolidated Cash Flow Statement | 15 |
Notes to the Consolidated Cash Flow Statement | 16 |
Notes to the Consolidated Financial Statements | 18 |
Newbegin Corporation Limited |
Company Information |
for the year ended 31st December 2023 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants |
Statutory Auditor |
Regent's Court |
Princess Street |
Hull |
East Yorkshire |
HU2 8BA |
Newbegin Corporation Limited (Registered number: 13631763) |
Group Strategic Report |
for the year ended 31st December 2023 |
The directors present their strategic report of the company and the group for the year ended 31st December 2023. |
REVIEW OF BUSINESS |
The group of companies headed by Newbegin Corporation Limited represents the largest privately owned franchised Renault Truck dealer group in the UK, based in the north and east of England. The Group buys and sells commercial vehicles and has an extensive aftersales operation, servicing and maintaining vehicles, and supplying parts in each of its seven depots. Franchises are also held by the Group to sell and service Isuzu Truck vehicles. It also has a fleet of over 750 commercial vehicles for both short and long term hire. |
Performance of the Group for the year under review was good in the view of the directors. The performance was strong despite the challenges that continue to be faced, not least the shortage of skilled technicians, meaning some performance was ultimately suppressed in an area driving profit, coupled with a significant increase in borrowing costs. The Group reported an operating profit of over £5.5m before goodwill amortisation and other associated costs with the acquisition of Newbegin Holdings Limited in December 2021. |
The directors remain positive for 2024 despite the current economic climate. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The groups' operations expose it to competitive, legislative and financial risks that include credit risk and |
liquidity risk. The group has in place a strong risk management programme that aims to eliminate adverse |
effects on the financial performance of the group. |
SECTION 172(1) STATEMENT |
The directors have considered the matters set out in section 172 (1) (a) to (f) when performing their duties to promote the success of the group. The directors continue to ensure that any business decisions consider the long-term impact on all key shareholders. This includes when evaluating acquisition and growth opportunities. Environmental issues continue to be a major focus of the group and are a key consideration in its strategy. In addition, the directors consider the group's employees, suppliers and customers to be integral to its continued success. The directors have reported on engagement with employees, suppliers, customers and other within the Report of the Directors. |
ANALYSIS OF PERFORMANCE |
The directors do not consider it appropriate to detail the financial performance of the group using detailed KPI's. |
These are reviewed on a company level as well as individual sites to monitor performance and consistency. |
At a board level the principle KPI's that are monitored include: |
- Sales growth |
- Gross profit margin |
- Operating profit margin |
- Average debtor days and recoverability |
- Cashflow |
These figures are evident on a group basis from the financial statements. |
ON BEHALF OF THE BOARD: |
Newbegin Corporation Limited (Registered number: 13631763) |
Report of the Directors |
for the year ended 31st December 2023 |
The directors present their report with the financial statements of the company and the group for the year ended 31st December 2023. |
PRINCIPAL ACTIVITY |
The principal activity of the group in the year under review was that of commercial vehicle dealers, commercial vehicle leasing and the manufacture of bespoke commercial vehicle bodies. |
DIVIDENDS |
The total distribution of dividends for the period ended 31st December 2023 will be £475,267 (2022 £406,110). The director does not recommend payment of any further dividend. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1st January 2023 to the date of this report. |
EMPLOYEE INVOLVEMENT |
The director believes that all employees should be kept informed about the development and performance of the business. This has been achieved through internal media methods and regular meetings which are held between local management and employees to allow a free flow of information and ideas. |
ENGAGEMENT WITH EMPLOYEES |
The director makes use of senior management throughout the group to ensure that all employees are kept up to date with key and relevant information. Each group location consults its employees as necessary when making material decisions which may affect them. Employees are encouraged to have an interest in the performance of the company and a general awareness of the group's performance. |
DISABLED EMPLOYEES |
The group gives full consideration to applications for employment from disabled persons where the requirements of the job can be adequately fulfilled by a disabled person. Where existing employees become disabled, it is the group's policy wherever practicable to provide continuing employment under normal terms and conditions and to provide training and career development and promotion to disabled employees wherever appropriate. |
ENGAGEMENT WITH SUPPLIERS, CUSTOMERS AND OTHERS |
The director continuously considers key stakeholder relationships and develops them through ongoing support from all employees. The group considers relationships with customers and suppliers on a group-wide and local level and maintains strong relationships with all parties. |
GOING CONCERN |
The directors, having considered the Group forecasts for the two-year period ending 31 December 2025 (2024 in detail), have a reasonable expectation that the group has adequate resources to continue in operational existence for a period of 12 months from the date of approval of these financial statements and therefore have prepared the financial statements on a going concern basis. |
STREAMLINED ENERGY AND CARBON REPORTING |
The company consumes less than 40,000 kWh of energy each year, therefore energy efficiency |
disclosures under the Streamlined Energy and Carbon Reporting regulations ("SECR") are not included. |
On a consolidated basis, Thompson Commercials Limited is the sole subsidiary company required to report under the SECR in its own right as the remaining subsidiaries are either non - large companies or consume less than 40,000 kWh of energy annually. The SECR disclosure for Thompson Commercials Limited is shown below. |
Newbegin Corporation Limited (Registered number: 13631763) |
Report of the Directors |
for the year ended 31st December 2023 |
2023 |
Energy usage | Total kWh consumed | 1,743,403 |
tCO2e |
2023 |
Scope 1 | Transport | 52 |
Scope 2 | Purchased electric/gas | 202 |
Scope 3 | Business travel etc. | 6 |
Total | 260 |
Intensity ratio | tCO2e/£1m turnover | 2.9 |
These figures have been complied in line with Streamlined Energy and Carbon Reporting (SECR) requirements using the UK Government Conversion Factors for Company Reporting. |
By the end of the year all sites had been upgraded with LED lighting and we are continually increasing the size of our electric fleet. Two of our sites have solar panels and we are looking to add these to other owned sites |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and 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; |
- | state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's 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. |
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. |
Newbegin Corporation Limited (Registered number: 13631763) |
Report of the Directors |
for the year ended 31st December 2023 |
AUDITORS |
The auditors, Smailes Goldie, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
Newbegin Corporation Limited |
Opinion |
We have audited the financial statements of Newbegin Corporation Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31st December 2023 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, 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 31st 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 Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
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 Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Report of the Independent Auditors to the Members of |
Newbegin Corporation Limited |
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 Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept 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 Statement of Directors' Responsibilities set out on page four, 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. |
Report of the Independent Auditors to the Members of |
Newbegin Corporation Limited |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the limited liability partnership, including the Companies Act 2006, anti-bribery, environmental and health and safety legislation. An understanding of these laws and regulations and the extent of compliance was obtained through discussion with management and inspecting legal and regulatory correspondence. |
We assessed the susceptibility of the limited liability partnership's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by making enquiries of management and considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. |
To address the risk of fraud through management bias and override of controls, we: |
- performed analytical procedures to identify any unusual or unexpected relationships; |
- tested journal entries to identify unusual transactions; |
- assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and |
- investigated the rationale behind significant or unusual transactions. |
- agreeing financial statement disclosures to underlying supporting documentation; |
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: |
- agreeing financial statement disclosures to underlying supporting documentation; |
- enquiring of management as to actual and potential litigation and claims; and |
- reviewing correspondence with relevant regulators and the limited liability partnership's legal advisors. |
Due to 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. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. |
The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission, or misrepresentation. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
Report of the Independent Auditors to the Members of |
Newbegin Corporation Limited |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Chartered Accountants |
Statutory Auditor |
Regent's Court |
Princess Street |
Hull |
East Yorkshire |
HU2 8BA |
Newbegin Corporation Limited (Registered number: 13631763) |
Consolidated Statement of Comprehensive Income |
for the year ended 31st December 2023 |
Year Ended | Period |
31/12/23 | 20/9/21 to 31/12/22 |
Notes | £ | £ | £ | £ |
TURNOVER | 111,648,596 | 89,174,722 |
Cost of sales | 94,071,247 | 73,932,430 |
GROSS PROFIT | 17,577,349 | 15,242,292 |
Distribution costs | 1,088,611 | 996,384 |
Administrative expenses | 11,088,337 | 10,072,012 |
12,176,948 | 11,068,396 |
5,400,401 | 4,173,896 |
Other operating income | 56,550 | 59,089 |
OPERATING PROFIT | 4 | 5,456,951 | 4,232,985 |
Interest payable and similar expenses | 5 | 2,759,182 | 1,607,601 |
PROFIT BEFORE TAXATION | 2,697,769 | 2,625,384 |
Tax on profit | 6 | 900,729 | 729,482 |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
1,797,040 |
1,895,902 |
Profit attributable to: |
Owners of the parent | 1,755,901 | 2,002,967 |
Non-controlling interests | 41,139 | (107,065 | ) |
1,797,040 | 1,895,902 |
Total comprehensive income attributable to: |
Owners of the parent | 1,755,801 | 2,002,967 |
Non-controlling interests | 41,239 | (107,065 | ) |
1,797,040 | 1,895,902 |
Newbegin Corporation Limited (Registered number: 13631763) |
Consolidated Balance Sheet |
31st December 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 9 | 8,738,404 | 9,835,416 |
Tangible assets | 10 | 34,489,506 | 34,487,385 |
Investments | 11 | - | - |
Investment property | 12 | 607,527 | 607,527 |
43,835,437 | 44,930,328 |
CURRENT ASSETS |
Stocks | 13 | 8,700,130 | 7,525,103 |
Debtors | 14 | 12,873,072 | 10,456,829 |
Cash at bank and in hand | 2,564,231 | 3,135,706 |
24,137,433 | 21,117,638 |
CREDITORS |
Amounts falling due within one year | 15 | 27,000,793 | 24,239,982 |
NET CURRENT LIABILITIES | (2,863,360 | ) | (3,122,344 | ) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
40,972,077 |
41,807,984 |
CREDITORS |
Amounts falling due after more than one year |
16 |
(37,554,684 |
) |
(39,484,634 |
) |
PROVISIONS FOR LIABILITIES | 20 | (166,106 | ) | (393,936 | ) |
NET ASSETS | 3,251,287 | 1,929,414 |
CAPITAL AND RESERVES |
Called up share capital | 21 | 266,667 | 266,667 |
Retained earnings | 22 | 2,877,491 | 1,596,857 |
SHAREHOLDERS' FUNDS | 3,144,158 | 1,863,524 |
NON-CONTROLLING INTERESTS | 23 | 107,129 | 65,890 |
TOTAL EQUITY | 3,251,287 | 1,929,414 |
The financial statements were approved by the Board of Directors and authorised for issue on 2nd September 2024 and were signed on its behalf by: |
R E Thorpe - Director |
Newbegin Corporation Limited (Registered number: 13631763) |
Company Balance Sheet |
31st December 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 9 |
Tangible assets | 10 |
Investments | 11 |
Investment property | 12 |
CURRENT ASSETS |
Debtors | 14 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 15 |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
16 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 21 |
Retained earnings | 22 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 1,341,167 | 1,076,423 |
The financial statements were approved by the Board of Directors and authorised for issue on |
Newbegin Corporation Limited (Registered number: 13631763) |
Consolidated Statement of Changes in Equity |
for the year ended 31st December 2023 |
Called up |
share | Retained | Non-controlling | Total |
capital | earnings | Total | interests | equity |
£ | £ | £ | £ | £ |
Changes in equity |
Issue of share capital | 266,667 | - | 266,667 | - | 266,667 |
Dividends | - | (406,110 | ) | (406,110 | ) | - | (406,110 | ) |
Total comprehensive income | - | 2,002,967 | 2,002,967 | (107,065 | ) | 1,895,902 |
266,667 | 1,596,857 | 1,863,524 | (107,065 | ) | 1,756,459 |
Non-controlling interest arising on business combination |
- |
- |
- |
172,955 |
172,955 |
Balance at 31st December 2022 | 266,667 | 1,596,857 | 1,863,524 | 65,890 | 1,929,414 |
Changes in equity |
Dividends | - | (475,267 | ) | (475,267 | ) | - | (475,267 | ) |
Total comprehensive income | - | 1,755,901 | 1,755,901 | 41,239 | 1,797,140 |
Balance at 31st December 2023 | 266,667 | 2,877,491 | 3,144,158 | 107,129 | 3,251,287 |
Newbegin Corporation Limited (Registered number: 13631763) |
Company Statement of Changes in Equity |
for the year ended 31st December 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Changes in equity |
Issue of share capital | - |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31st December 2022 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31st December 2023 |
Newbegin Corporation Limited (Registered number: 13631763) |
Consolidated Cash Flow Statement |
for the year ended 31st December 2023 |
Period |
20/9/21 |
Year Ended | to |
31/12/23 | 31/12/22 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 13,457,349 | 14,835,219 |
Interest paid | (1,550,811 | ) | (897,101 | ) |
Interest element of hire purchase payments paid |
(1,208,371 |
) |
(710,500 |
) |
Tax paid | (521,663 | ) | (565,666 | ) |
Net cash from operating activities | 10,176,504 | 12,661,952 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (674,073 | ) | (1,290,433 | ) |
Purchase of fixed asset investments | - | (7,197,378 | ) |
Cash on acquisition of subsidiary | - | 2,785,979 |
Sale of tangible fixed assets | 1,602,183 | 872,420 |
Non-controlling interest share capital | 100 | - |
Net cash from investing activities | 928,210 | (4,829,412 | ) |
Cash flows from financing activities |
New loans in year | - | 7,000,000 |
Loan repayments in year | (1,158,730 | ) | (3,629,245 | ) |
HP capital repayments in year | (9,442,192 | ) | (7,821,479 | ) |
Amount withdrawn by directors | (600,000 | ) | - |
Share issue | - | 160,000 |
Equity dividends paid | (475,267 | ) | (406,110 | ) |
Net cash from financing activities | (11,676,189 | ) | (4,696,834 | ) |
(Decrease)/increase in cash and cash equivalents | (571,475 | ) | 3,135,706 |
Cash and cash equivalents at beginning of year |
2 |
3,135,706 |
- |
Cash and cash equivalents at end of year |
2 |
2,564,231 |
3,135,706 |
Newbegin Corporation Limited (Registered number: 13631763) |
Notes to the Consolidated Cash Flow Statement |
for the year ended 31st December 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
Period |
20/9/21 |
Year Ended | to |
31/12/23 | 31/12/22 |
£ | £ |
Profit before taxation | 2,697,769 | 2,625,384 |
Depreciation charges | 10,805,351 | 9,305,976 |
Profit on disposal of fixed assets | (400,677 | ) | (286,942 | ) |
Finance costs | 2,759,182 | 1,607,601 |
15,861,625 | 13,252,019 |
Increase in stocks | (1,175,027 | ) | (1,336,904 | ) |
Increase in trade and other debtors | (1,816,243 | ) | (4,070,249 | ) |
Increase in trade and other creditors | 586,994 | 6,990,353 |
Cash generated from operations | 13,457,349 | 14,835,219 |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31st December 2023 |
31/12/23 | 1/1/23 |
£ | £ |
Cash and cash equivalents | 2,564,231 | 3,135,706 |
Period ended 31st December 2022 |
31/12/22 | 20/9/21 |
£ | £ |
Cash and cash equivalents | 3,135,706 | - |
Newbegin Corporation Limited (Registered number: 13631763) |
Notes to the Consolidated Cash Flow Statement |
for the year ended 31st December 2023 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
Other |
non-cash |
At 1/1/23 | Cash flow | changes | At 31/12/23 |
£ | £ | £ | £ |
Net cash |
Cash at bank |
and in hand | 3,135,706 | (571,475 | ) | 2,564,231 |
3,135,706 | (571,475 | ) | 2,564,231 |
Debt |
Finance leases | (27,325,428 | ) | 9,442,192 | - | (28,121,129 | ) |
Debts falling due |
within 1 year | (997,180 | ) | (272,231 | ) | - | (1,269,411 | ) |
Debts falling due |
after 1 year | (14,085,084 | ) | 1,430,961 | - | (12,654,123 | ) |
(42,407,692 | ) | 10,600,922 | - | (42,044,663 | ) |
Total | (39,271,986 | ) | 10,029,447 | - | (39,480,432 | ) |
Newbegin Corporation Limited (Registered number: 13631763) |
Notes to the Consolidated Financial Statements |
for the year ended 31st December 2023 |
1. | STATUTORY INFORMATION |
Newbegin Corporation Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Basis of consolidation |
The consolidated financial statements include the financial statements of the company and its subsidiary undertakings made up to 31st December 2023. The acquisition method of accounting has been adopted. Under this method the results of subsidiary undertakings acquired or disposed of in the year are included in the consolidated profit and loss account from the date of acquisition or up to the date of disposal. |
Under Section 408 of the Companies Act 2006 the company is exempt from the requirement to present its own profit and loss account. |
Newbegin Corporation Limited (Registered number: 13631763) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31st December 2023 |
2. | ACCOUNTING POLICIES - continued |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable net of VAT and trade discounts. The policies adopted for the recognition of turnover are as follows: |
Commercial vehicles |
Turnover from the sale of commercial vehicles is recognised when significant risks and rewards of ownership of the goods have transferred to the buyer, the amount of turnover can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the company and the costs incurred or to be incurred in respect of the transaction can be measured reliably. This is usually on dispatch of the goods. |
Vehicle bodies |
Turnover from the sale of vehicle bodies is measured at the fair value of the consideration received or receivable net of VAT and trade discounts. Sales are recognised at the point at which the company has fulfilled its contractual obligations and the risks and rewards attaching to the product have been transferred to the customer. |
Parts and service |
Turnover from the sale of parts and servicing of vehicles is recognised when significant risks and rewards of ownership of the goods have transferred to the buyer or the service has been completed and the vehicle released back to the owner, the amount of turnover can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the company and the costs incurred or to be incurred in respect of the transaction can be measured reliably. This is usually on dispatch of the goods or the release of the vehicle. |
Short term maintenance contracts |
Turnover from short term vehicle maintenance contracts is recognised when the amount of turnover can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the company and the costs incurred or to be incurred in respect of the transaction can be measured reliably. This is usually upon completion of the contract. |
Rendering of services |
When the outcome of a transaction can be estimated reliably, turnover from the leasing of vehicles is recognised by reference to the stage of completion at the balance sheet date. Stage of completion is measured by reference to months passed in the term of the hire contract. |
Goodwill |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
Tangible fixed assets |
Freehold property | - |
Short leasehold | - |
Plant and machinery | - |
Motor vehicles | - |
Newbegin Corporation Limited (Registered number: 13631763) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31st December 2023 |
2. | ACCOUNTING POLICIES - continued |
Investment property |
Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss. |
Stocks |
Stocks and work in progress are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition. |
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing stock to its present location and condition. For parts, cost is calculated using the average weighted purchase price. Provision is made for damaged, obsolete and slow-moving stock where appropriate. |
In the case of consumable stores, cost means purchase price including transport and handling costs, less trade discounts, calculated on a current replacement cost basis. In the case of work in progress and finished goods, cost consists of direct materials, direct labour and attributable production and other overheads based on normal levels of activity. |
Net realisable value means estimated selling price less all further costs to completion and all costs to be incurred in marketing, selling and distribution. |
Unregistered vehicles were held within the group's control at the year end on a Dealer Stocking Facility. These have not been included in the group's stock figure as in the opinion of the directors substantially not all of the risks of ownership have been transferred to the group. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
Newbegin Corporation Limited (Registered number: 13631763) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31st December 2023 |
2. | ACCOUNTING POLICIES - continued |
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Assets acquired under finance leases and hire purchase contracts are treated as fixed assets. The amount capitalised is the present value of minimum lease payments payable during the lease term. Depreciation is charged to the profit and loss account in accordance with the normal depreciation policy. |
The corresponding lease commitments are shown as liabilities. The interest element of rental obligations is charged to the profit and loss account over the period of the lease in proportion to the balance of capital payments outstanding. |
Incentives received in the course of entering in to operating leases are smoothed over the full term of the lease up to the date of the first rent review. |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
The company and its subsidiaries, operate a government NEST scheme for its employees which is independently administered. The pension cost charge represents contributions payable by the company to the scheme. |
Impairment |
Assets not measured at fair value are reviewed for any indication that the asset may be impaired at each balance sheet date. If such indication exists, the recoverable amount of the asset, or the asset's cash generating unit, is estimated and compared to the carrying amount. Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised in profit or loss unless the asset is carried at a revalued amount where the impairment loss is a revaluation decrease. |
Provisions |
Provisions are recognised when the company has an obligation at the balance sheet date as a result of a past event, it is probable that an outflow of economic benefits will be required in settlement and the amount can be reliably estimated. |
Debtors and creditors receivable / payable within one year |
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses. |
Newbegin Corporation Limited (Registered number: 13631763) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31st December 2023 |
3. | EMPLOYEES AND DIRECTORS |
Period |
20/9/21 |
Year Ended | to |
31/12/23 | 31/12/22 |
£ | £ |
Wages and salaries | 4,981,501 | 4,382,623 |
Social security costs | 630,046 | 753,575 |
Other pension costs | 322,551 | 262,930 |
5,934,098 | 5,399,128 |
The average number of employees during the year was as follows: |
Period |
20/9/21 |
Year Ended | to |
31/12/23 | 31/12/22 |
Management | 6 | 13 |
Administration | 61 | 51 |
Operations, sales and production | 228 | 209 |
Period |
20/9/21 |
Year Ended | to |
31/12/23 | 31/12/22 |
£ | £ |
Directors' remuneration | 32,160 | 32,793 |
Directors' pension contributions to money purchase schemes | 9,600 | 9,968 |
4. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
Period |
20/9/21 |
Year Ended | to |
31/12/23 | 31/12/22 |
£ | £ |
Hire of plant and machinery | 118,386 | 104,651 |
Depreciation - owned assets | 1,166,920 | 1,582,326 |
Depreciation - assets on hire purchase contracts | 8,541,419 | 6,584,560 |
Profit on disposal of fixed assets | (400,677 | ) | (286,942 | ) |
Goodwill amortisation | 1,097,012 | 1,139,089 |
Auditors' remuneration | 67,500 | 60,000 |
Newbegin Corporation Limited (Registered number: 13631763) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31st December 2023 |
5. | INTEREST PAYABLE AND SIMILAR EXPENSES |
Period |
20/9/21 |
Year Ended | to |
31/12/23 | 31/12/22 |
£ | £ |
Loan interest | 796,919 | 663,680 |
Stocking interest | 753,892 | 232,672 |
Invoice discounting interest | - | 749 |
Hire purchase | 1,208,371 | 710,500 |
2,759,182 | 1,607,601 |
6. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
Period |
20/9/21 |
Year Ended | to |
31/12/23 | 31/12/22 |
£ | £ |
Current tax: |
UK corporation tax | 1,119,810 | 623,674 |
Adjustment for prior year | 8,749 | (665 | ) |
Total current tax | 1,128,559 | 623,009 |
Deferred tax | (227,830 | ) | 106,473 |
Tax on profit | 900,729 | 729,482 |
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: |
Period |
20/9/21 |
Year Ended | to |
31/12/23 | 31/12/22 |
£ | £ |
Profit before tax | 2,697,769 | 2,625,384 |
Profit multiplied by the standard rate of corporation tax in the UK of 25 % (2022 - 19 %) |
674,442 |
498,823 |
Effects of: |
Expenses not deductible for tax purposes | 300,149 | 236,740 |
Income not taxable for tax purposes | - | (4,064 | ) |
Adjustments to tax charge in respect of previous periods | (2,887 | ) | (665 | ) |
Super deduction enhanced expenditure | (538 | ) | (23,948 | ) |
Adjustment for deferred tax calculated at increased rate | - | 22,596 |
Change of rate in corporation tax | (70,437 | ) | - |
Total tax charge | 900,729 | 729,482 |
Newbegin Corporation Limited (Registered number: 13631763) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31st December 2023 |
7. | INDIVIDUAL STATEMENT OF COMPREHENSIVE INCOME |
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. |
8. | DIVIDENDS |
Period |
20.9.21 |
Year ended | to |
31.12.23 | 31.12.22 |
£ | £ |
Ordinary shares of £1 each | 475,267 | 406,110 |
9. | INTANGIBLE FIXED ASSETS |
Group |
Development |
Goodwill | costs | Totals |
£ | £ | £ |
COST |
At 1st January 2023 |
and 31st December 2023 | 10,970,120 | 4,385 | 10,974,505 |
AMORTISATION |
At 1st January 2023 | 1,139,089 | - | 1,139,089 |
Amortisation for year | 1,097,012 | - | 1,097,012 |
At 31st December 2023 | 2,236,101 | - | 2,236,101 |
NET BOOK VALUE |
At 31st December 2023 | 8,734,019 | 4,385 | 8,738,404 |
At 31st December 2022 | 9,831,031 | 4,385 | 9,835,416 |
Newbegin Corporation Limited (Registered number: 13631763) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31st December 2023 |
10. | TANGIBLE FIXED ASSETS |
Group |
Freehold | Short | Long |
property | leasehold | leasehold |
£ | £ | £ |
COST |
At 1st January 2023 | 4,214,070 | 38,366 | 609,299 |
Additions | 2,400 | - | - |
Disposals | - | - | - |
At 31st December 2023 | 4,216,470 | 38,366 | 609,299 |
DEPRECIATION |
At 1st January 2023 | 1,196,532 | 38,357 | 276,491 |
Charge for year | 65,277 | - | 21,329 |
Eliminated on disposal | - | - | - |
At 31st December 2023 | 1,261,809 | 38,357 | 297,820 |
NET BOOK VALUE |
At 31st December 2023 | 2,954,661 | 9 | 311,479 |
At 31st December 2022 | 3,017,538 | 9 | 332,808 |
Fixtures |
Plant and | and | Motor |
machinery | fittings | vehicles | Totals |
£ | £ | £ | £ |
COST |
At 1st January 2023 | 3,526,714 | 329,061 | 51,636,236 | 60,353,746 |
Additions | 127,592 | 6,209 | 10,775,765 | 10,911,966 |
Disposals | (214,000 | ) | - | (6,617,395 | ) | (6,831,395 | ) |
At 31st December 2023 | 3,440,306 | 335,270 | 55,794,606 | 64,434,317 |
DEPRECIATION |
At 1st January 2023 | 2,796,363 | 278,251 | 21,280,367 | 25,866,361 |
Charge for year | 224,297 | 32,454 | 9,364,982 | 9,708,339 |
Eliminated on disposal | (32,094 | ) | - | (5,597,795 | ) | (5,629,889 | ) |
At 31st December 2023 | 2,988,566 | 310,705 | 25,047,554 | 29,944,811 |
NET BOOK VALUE |
At 31st December 2023 | 451,740 | 24,565 | 30,747,052 | 34,489,506 |
At 31st December 2022 | 730,351 | 50,810 | 30,355,869 | 34,487,385 |
Newbegin Corporation Limited (Registered number: 13631763) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31st December 2023 |
10. | TANGIBLE FIXED ASSETS - continued |
Group |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Motor |
vehicles |
£ |
COST |
At 1st January 2023 | 42,659,008 |
Additions | 10,237,893 |
Disposals | (1,888,717 | ) |
Transfer to ownership | (558,853 | ) |
At 31st December 2023 | 50,449,331 |
DEPRECIATION |
At 1st January 2023 | 14,228,495 |
Charge for year | 8,541,419 |
Eliminated on disposal | (1,257,782 | ) |
Transfer to ownership | (439,172 | ) |
At 31st December 2023 | 21,072,960 |
NET BOOK VALUE |
At 31st December 2023 | 29,376,371 |
At 31st December 2022 | 28,430,513 |
11. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1st January 2023 |
Additions |
At 31st December 2023 |
NET BOOK VALUE |
At 31st December 2023 |
At 31st December 2022 |
Newbegin Corporation Limited (Registered number: 13631763) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31st December 2023 |
11. | FIXED ASSET INVESTMENTS - continued |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
Registered office: 14 Newbegin House, Newbegin, Beverley, United Kingdom, HU17 8EG |
Nature of business: |
% |
Class of shares: | holding |
Registered office: Newbegin House Geneva Way, Leads Road, Hull, East Yorkshire, England, HU7 0DG |
Nature of business: |
% |
Class of shares: | holding |
Registered office: Newbegin House Geneva Way, Leads Road, Hull, East Yorkshire, England, HU7 0DG |
Nature of business: |
% |
Class of shares: | holding |
Registered office: Newbegin House Geneva Way, Leads Road, Hull, East Yorkshire, England, HU7 0DG |
Nature of business: |
% |
Class of shares: | holding |
Registered office: Newbegin House Geneva Way, Leads Road, Hull, East Yorkshire, England, HU7 0DG |
Nature of business: |
% |
Class of shares: | holding |
Registered office: Newbegin House Geneva Way, Leads Road, Hull, East Yorkshire, England, HU7 0DG |
Nature of business: |
% |
Class of shares: | holding |
Registered office: 14 Newbegin House, Newbegin, Beverley, United Kingdom, HU17 8EG |
Nature of business: |
% |
Class of shares: | holding |
Newbegin Corporation Limited (Registered number: 13631763) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31st December 2023 |
11. | FIXED ASSET INVESTMENTS - continued |
Registered office: Grange Lane North, Scunthorpe, North Lincolnshire, DN16 1BN |
Nature of business: |
% |
Class of shares: | holding |
Registered office: Plot 56/57 Grange Lane North, Scunthorpe, North Lincolnshire, DN16 1BN |
Nature of business: |
% |
Class of shares: | holding |
Registered office: Plot 56-57 Grange Lane North, Scunthorpe, North Lincolnshire, DN16 1BN |
Nature of business: |
% |
Class of shares: | holding |
Registered office: Newbegin House Geneva Way, Leads Road, Hull, East Yorkshire, England, HU7 0DG |
Nature of business: |
% |
Class of shares: | holding |
12. | INVESTMENT PROPERTY |
Group |
Total |
£ |
FAIR VALUE |
At 1st January 2023 |
and 31st December 2023 | 607,527 |
NET BOOK VALUE |
At 31st December 2023 | 607,527 |
At 31st December 2022 | 607,527 |
At 31 December 2023 the directors have reviewed these valuations and no material changes have been identified. |
Newbegin Corporation Limited (Registered number: 13631763) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31st December 2023 |
13. | STOCKS |
Group |
2023 | 2022 |
£ | £ |
Stocks | 7,667,597 | 6,315,133 |
Work-in-progress | 1,032,533 | 1,209,970 |
8,700,130 | 7,525,103 |
14. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Trade debtors | 10,285,102 | 9,145,865 |
Amounts owed by group undertakings | - | - |
Other debtors | 56,532 | 58,012 |
Directors' loan accounts | 600,000 | - | 600,000 | - |
VAT | - | - |
Prepayments and accrued income | 1,931,438 | 1,252,952 |
12,873,072 | 10,456,829 |
15. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 17) | 1,269,411 | 995,857 |
Other loans (see note 17) | - | 1,323 |
Hire purchase contracts (see note 18) | 9,220,568 | 7,925,878 |
Trade creditors | 11,505,617 | 12,295,441 |
Amounts owed to group undertakings | - | - |
Tax | 1,108,226 | 501,330 |
Social security and other taxes | 308,987 | 70,673 |
VAT | 1,116,553 | - | - | - |
Other creditors | 1,386,309 | 1,521,585 |
Accruals and deferred income | 1,085,122 | 927,895 |
27,000,793 | 24,239,982 |
16. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Bank loans (see note 17) | 3,610,790 | 5,041,751 |
Other loans (see note 17) | 9,043,333 | 9,043,333 |
Hire purchase contracts (see note 18) | 18,900,561 | 19,399,550 |
Other creditors | 6,000,000 | 6,000,000 |
37,554,684 | 39,484,634 |
Newbegin Corporation Limited (Registered number: 13631763) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31st December 2023 |
17. | LOANS |
An analysis of the maturity of loans is given below: |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Amounts falling due within one year or | on demand: |
Bank loans | 1,269,411 | 995,857 |
Invoice discounting advances | - | 1,323 | - | - |
1,269,411 | 997,180 |
Amounts falling due between one and | two years: |
Bank loans | 3,610,790 | 1,068,465 |
Other loans | 150,000 | 150,000 | - |
3,760,790 | 1,218,465 |
Amounts falling due between two and | five years: |
Bank loans | - | 3,973,286 |
Loan notes | 2,687,108 | 1,791,406 | 2,687,108 | 1,791,406 |
2,687,108 | 5,764,692 |
Amounts falling due in more than five | years: |
Repayable by instalments |
Loan notes | 6,206,225 | 7,101,927 | 6,206,225 | 7,101,927 |
Bank loans consist of two term loan drawdown facility agreements of £4m and £3m which are repayable by monthly capital instalments of £98,404 and £17,343 respectively. The final repayment date on both facilities is December 2025. Interest is payable as follows: |
- £4m at a variable interest rate of 3.6% over the Bank of England Base Rate. |
- £3m at a variable interest rate of 2.3% over the Bank of England Base Rate. |
Loan notes are repayable by monthly capital instalments commencing in December 2025 of £74,642 and the final repayment date is December 2035. Interest is charged at a fixed rate of 2.5%. |
Deferred consideration due to the former shareholders of Newbegin Holdings Limited of £6m is included within other creditors and is repayable by monthly capital instalments commencing in December 2025 of £50,358 and the final repayment date is December 2035. Interest is charged at a fixed rate of 2.5%. |
Newbegin Corporation Limited (Registered number: 13631763) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31st December 2023 |
18. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Hire purchase | contracts |
2023 | 2022 |
£ | £ |
Net obligations repayable: |
Within one year | 9,220,568 | 7,925,878 |
Between one and five years | 18,900,561 | 19,399,550 |
28,121,129 | 27,325,428 |
Group |
Non-cancellable | operating leases |
2023 | 2022 |
£ | £ |
Within one year | 102,883 | 165,433 |
Between one and five years | 91,561 | 143,362 |
In more than five years | 100,300 | 103,250 |
294,744 | 412,045 |
Operating lease agreements where the group is the lessor |
The group leases commercial vehicles to third parties under non-cancellable contract hire agreements. These contracts have remaining terms of between 1 and 10 years. |
Future minimum rentals receivable under non-cancellable operating leases fall due as follows |
2023 | 2022 |
£ | £ |
Net obligations receivable: |
Within one year | 12,476,803 | 11,780,246 |
Between one and five years | 20,787,795 | 23,700,013 |
In over 5 years | 1,150 | 561,687 |
33,265,748 | 36,041,946 |
Newbegin Corporation Limited (Registered number: 13631763) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31st December 2023 |
19. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group |
2023 | 2022 |
£ | £ |
Bank loans | 4,880,201 | 6,037,608 |
Other loans | 150,000 | 150,000 |
Hire purchase contracts | 28,121,129 | 27,325,428 |
Loan notes | 8,893,333 | 8,893,333 |
Other creditors | 6,000,000 | 6,000,000 |
48,044,663 | 48,406,369 |
The liabilities are secured by fixed and floating charges over the group's assets. |
20. | PROVISIONS FOR LIABILITIES |
Group |
2023 | 2022 |
£ | £ |
Deferred tax | 166,106 | 393,936 |
Group |
Deferred |
tax |
£ |
Balance at 1st January 2023 | 393,936 |
Credit to Statement of Comprehensive Income during year | (227,830 | ) |
Balance at 31st December 2023 | 166,106 |
21. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary A | £1 | 106,667 | 106,667 |
Ordinary B | £1 | 160,000 | 160,000 |
266,667 | 266,667 |
Newbegin Corporation Limited (Registered number: 13631763) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31st December 2023 |
22. | RESERVES |
Group |
Retained |
earnings |
£ |
At 1st January 2023 | 1,596,857 |
Profit for the year | 1,755,901 |
Dividends | (475,267 | ) |
At 31st December 2023 | 2,877,491 |
Company |
Retained |
earnings |
£ |
At 1st January 2023 |
Profit for the year |
Dividends | ( |
) |
At 31st December 2023 |
Retained earnings represents cumulative profits and losses net of dividends and other adjustments. |
23. | NON-CONTROLLING INTERESTS |
2023 | 2022 |
£ | £ |
At 31st January 2023 | 65,890 | - |
On acquisition of subsidiary | - | 172,955 |
Shares issued at par | 100 | - |
Share of Profit/(loss) in the period | 41,139 | (107,065 | ) |
Balance at 31st December 2022 | 107,129 | 65,890 |
24. | PENSION COMMITMENTS |
Contributions to defined contribution schemes for the year amounted to £369,233 (2022 £266,564). At the 31 December 2023 there was £37,303 (2022 £4,000) outstanding. |
Newbegin Corporation Limited (Registered number: 13631763) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31st December 2023 |
25. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
The following advances and credits to a director subsisted during the year ended 31st December 2023 and the period ended 31st December 2022: |
2023 | 2022 |
£ | £ |
P T Simpson |
Balance outstanding at start of year | - | - |
Amounts advanced | 600,000 | - |
Amounts repaid | - | - |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year | 600,000 | - |
26. | 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. |
Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements. |
During the year, a total of key management personnel compensation of £ 586,008 (2022 - £ 722,482 ) was paid. |
27. | ULTIMATE CONTROLLING PARTY |
The group is not controlled by any one party. |