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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: P T Simpson
R E Thorpe
J J Swaby





REGISTERED OFFICE: Newbegin House
Geneva Way
Leads Road
Hull
East Yorkshire
HU7 0DG





REGISTERED NUMBER: 13631763 (England and Wales)





AUDITORS: Smailes Goldie
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:





R E Thorpe - Director


2nd September 2024

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.

P T Simpson
R E Thorpe
J J Swaby

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:





R E Thorpe - Director


2nd September 2024

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.




Michael Stocks ACA (Senior Statutory Auditor)
for and on behalf of Smailes Goldie
Chartered Accountants
Statutory Auditor
Regent's Court
Princess Street
Hull
East Yorkshire
HU2 8BA

2nd September 2024

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 1,797,040 1,895,902

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 22,198,278 22,197,378
Investment property 12 - -
22,198,278 22,197,378

CURRENT ASSETS
Debtors 14 1,007,850 338,750
Cash at bank 393,826 218,332
1,401,676 557,082
CREDITORS
Amounts falling due within one year 15 5,389,718 4,597,158
NET CURRENT LIABILITIES (3,988,042 ) (4,040,076 )
TOTAL ASSETS LESS CURRENT
LIABILITIES

18,210,236

18,157,302

CREDITORS
Amounts falling due after more than one
year

16

16,005,979

17,054,212
NET ASSETS 2,204,257 1,103,090

CAPITAL AND RESERVES
Called up share capital 21 266,667 266,667
Retained earnings 22 1,937,590 836,423
SHAREHOLDERS' FUNDS 2,204,257 1,103,090

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 2nd September 2024 and were signed on its behalf by:





R E Thorpe - Director


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 266,667 - 266,667
Dividends - (240,000 ) (240,000 )
Total comprehensive income - 1,076,423 1,076,423
Balance at 31st December 2022 266,667 836,423 1,103,090

Changes in equity
Dividends - (240,000 ) (240,000 )
Total comprehensive income - 1,341,167 1,341,167
Balance at 31st December 2023 266,667 1,937,590 2,204,257

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 private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the General Information page.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
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 have been prepared under the historical cost convention.

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
Goodwill, being the amount paid in connection with the acquisition of a business in 2021, is being amortised evenly over its estimated useful life of ten years.

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.

Development costs are being amortised evenly over their estimated useful life of nil years.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.
Freehold property - 2% on cost
Short leasehold - 33% on cost and Over lease term
Plant and machinery - 33% on cost, 25% on cost, 20% on cost and 10% on cost
Motor vehicles - 50% on cost, 50% on reducing balance, 33% on cost, 25% on cost, 25% on reducing balance and 20% on cost

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
295 273

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 22,197,378
Additions 900
At 31st December 2023 22,198,278
NET BOOK VALUE
At 31st December 2023 22,198,278
At 31st December 2022 22,197,378

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

Newbegin Holdings Limited
Registered office: 14 Newbegin House, Newbegin, Beverley, United Kingdom, HU17 8EG
Nature of business: Intermediary holding company
%
Class of shares: holding
Ordinary 100.00

Thompson Commercials Group Limited
Registered office: Newbegin House Geneva Way, Leads Road, Hull, East Yorkshire, England, HU7 0DG
Nature of business: Intermediary holding company
%
Class of shares: holding
Ordinary 100.00

Thompson Commercials Limited
Registered office: Newbegin House Geneva Way, Leads Road, Hull, East Yorkshire, England, HU7 0DG
Nature of business: Commercial motor trade dealer
%
Class of shares: holding
Ordinary 100.00

Premium Leasing Limited
Registered office: Newbegin House Geneva Way, Leads Road, Hull, East Yorkshire, England, HU7 0DG
Nature of business: Commercial vehicle lessor
%
Class of shares: holding
Ordinary 100.00

Thompson of Beverley Limited
Registered office: Newbegin House Geneva Way, Leads Road, Hull, East Yorkshire, England, HU7 0DG
Nature of business: Dormant
%
Class of shares: holding
Ordinary 100.00

Grange Cross Limited
Registered office: Newbegin House Geneva Way, Leads Road, Hull, East Yorkshire, England, HU7 0DG
Nature of business: Intermediate Holding Company
%
Class of shares: holding
Ordinary 75.00

Newbegin Financial Services Limited
Registered office: 14 Newbegin House, Newbegin, Beverley, United Kingdom, HU17 8EG
Nature of business: Asset financing brokerage
%
Class of shares: holding
Ordinary 75.00

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

New Month Limited
Registered office: Grange Lane North, Scunthorpe, North Lincolnshire, DN16 1BN
Nature of business: Intermediate Holding Company
%
Class of shares: holding
Ordinary 75.00

Weightlifter Bodies Limited
Registered office: Plot 56/57 Grange Lane North, Scunthorpe, North Lincolnshire, DN16 1BN
Nature of business: Manufacture of bespoke commercial vehicle bodies
%
Class of shares: holding
Ordinary 75.00

P.P.G. Fabrications Limited
Registered office: Plot 56-57 Grange Lane North, Scunthorpe, North Lincolnshire, DN16 1BN
Nature of business: Dormant
%
Class of shares: holding
Ordinary 75.00

Thompson Refinishers Limited
Registered office: Newbegin House Geneva Way, Leads Road, Hull, East Yorkshire, England, HU7 0DG
Nature of business: Vehicle paintwork and refinishing
%
Class of shares: holding
Ordinary 90.00


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 - - 379,100 310,000
Other debtors 56,532 58,012 - -
Directors' loan accounts 600,000 - 600,000 -
VAT - - 28,750 28,750
Prepayments and accrued income 1,931,438 1,252,952 - -
12,873,072 10,456,829 1,007,850 338,750

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 1,061,288 963,612
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 - - 4,306,046 3,626,046
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 22,384 7,500
27,000,793 24,239,982 5,389,718 4,597,158

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 1,112,646 2,160,879
Other loans (see note 17) 9,043,333 9,043,333 8,893,333 8,893,333
Hire purchase contracts (see note 18) 18,900,561 19,399,550 - -
Other creditors 6,000,000 6,000,000 6,000,000 6,000,000
37,554,684 39,484,634 16,005,979 17,054,212

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 1,061,288 963,612
Invoice discounting advances - 1,323 - -
1,269,411 997,180 1,061,288 963,612
Amounts falling due between one and two years:
Bank loans 3,610,790 1,068,465 1,112,646 1,034,299
Other loans 150,000 150,000 - -
3,760,790 1,218,465 1,112,646 1,034,299
Amounts falling due between two and five years:
Bank loans - 3,973,286 - 1,126,580
Loan notes 2,687,108 1,791,406 2,687,108 1,791,406
2,687,108 5,764,692 2,687,108 2,917,986
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: £    £   
106,667 Ordinary A £1 106,667 106,667
160,000 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 836,423
Profit for the year 1,341,167
Dividends (240,000 )
At 31st December 2023 1,937,590

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.