IRIS Accounts Production v24.2.0.383 10275347 Board of Directors 1.1.23 31.12.23 31.12.23 true true false true true false false true true false iso4217:GBPiso4217:USDiso4217:EURxbrli:sharesxbrli:pureutr:tonnesutr:kWh102753472022-12-31102753472023-12-31102753472023-01-012023-12-31102753472021-12-31102753472022-01-012022-12-31102753472022-12-3110275347ns15:EnglandWales2023-01-012023-12-3110275347ns14:PoundSterling2023-01-012023-12-3110275347ns10:Director12023-01-012023-12-3110275347ns10:PrivateLimitedCompanyLtd2023-01-012023-12-3110275347ns10:FRS1022023-01-012023-12-3110275347ns10:Audited2023-01-012023-12-3110275347ns10:LargeMedium-sizedCompaniesRegimeForDirectorsReport2023-01-012023-12-3110275347ns10:LargeMedium-sizedCompaniesRegimeForAccounts2023-01-012023-12-3110275347ns10:FullAccounts2023-01-012023-12-3110275347ns10:Director22023-01-012023-12-3110275347ns10:Director32023-01-012023-12-3110275347ns10:CompanySecretary12023-01-012023-12-3110275347ns10:RegisteredOffice2023-01-012023-12-3110275347ns5:CurrentFinancialInstruments2023-12-3110275347ns5:CurrentFinancialInstruments2022-12-3110275347ns5:Non-currentFinancialInstruments2023-12-3110275347ns5:Non-currentFinancialInstruments2022-12-3110275347ns5:ShareCapital2023-12-3110275347ns5:ShareCapital2022-12-3110275347ns5:SharePremium2023-12-3110275347ns5:SharePremium2022-12-3110275347ns5:RetainedEarningsAccumulatedLosses2023-12-3110275347ns5:RetainedEarningsAccumulatedLosses2022-12-3110275347ns5:ShareCapital2021-12-3110275347ns5:RetainedEarningsAccumulatedLosses2021-12-3110275347ns5:SharePremium2021-12-3110275347ns5:RetainedEarningsAccumulatedLosses2022-01-012022-12-3110275347ns5:RetainedEarningsAccumulatedLosses2023-01-012023-12-3110275347ns5:OwnedOrFreeholdAssetsns5:LandBuildings2023-01-012023-12-3110275347ns5:OwnedAssets2023-01-012023-12-3110275347ns5:OwnedAssets2022-01-012022-12-3110275347ns5:LandBuildings2022-12-3110275347ns5:LandBuildings2023-01-012023-12-3110275347ns5:LandBuildings2023-12-3110275347ns5:LandBuildings2022-12-3110275347ns5:CostValuation2022-12-3110275347ns5:Subsidiary12023-01-012023-12-3110275347ns5:Subsidiary112023-01-012023-12-3110275347ns5:Subsidiary22023-01-012023-12-31102753473ns5:Subsidiary22023-01-012023-12-3110275347ns5:Subsidiary32023-01-012023-12-3110275347ns5:Subsidiary352023-01-012023-12-3110275347ns5:Subsidiary42023-01-012023-12-31102753477ns5:Subsidiary42023-01-012023-12-3110275347ns5:Subsidiary52023-01-012023-12-31102753479ns5:Subsidiary52023-01-012023-12-3110275347ns5:Subsidiary62023-01-012023-12-3110275347ns5:Subsidiary6112023-01-012023-12-3110275347ns5:Subsidiary72023-01-012023-12-3110275347ns5:Subsidiary7132023-01-012023-12-3110275347ns5:Subsidiary82023-01-012023-12-311027534715ns5:Subsidiary82023-01-012023-12-3110275347ns5:Subsidiary92023-01-012023-12-311027534717ns5:Subsidiary92023-01-012023-12-3110275347ns5:CurrentFinancialInstrumentsns5:WithinOneYear2023-12-3110275347ns5:CurrentFinancialInstrumentsns5:WithinOneYear2022-12-3110275347ns5:Non-currentFinancialInstrumentsns5:BetweenOneTwoYears2023-12-3110275347ns5:Non-currentFinancialInstrumentsns5:BetweenOneTwoYears2022-12-3110275347ns5:Non-currentFinancialInstrumentsns5:BetweenTwoFiveYears2023-12-3110275347ns5:Non-currentFinancialInstrumentsns5:BetweenTwoFiveYears2022-12-3110275347ns5:DeferredTaxation2022-12-3110275347ns5:DeferredTaxation2023-01-012023-12-3110275347ns5:DeferredTaxation2023-12-3110275347ns5:RetainedEarningsAccumulatedLosses2022-12-3110275347ns5:SharePremium2022-12-31
REGISTERED NUMBER: 10275347 (England and Wales)






















Newbegin Holdings Limited

Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 31st December 2023






Newbegin Holdings Limited (Registered number: 10275347)






Contents of the Financial Statements
for the year ended 31st December 2023




Page

Company Information 1

Strategic Report 2

Report of the Directors 3

Report of the Independent Auditors 5

Income Statement 9

Other Comprehensive Income 10

Balance Sheet 11

Statement of Changes in Equity 12

Notes to the Financial Statements 13


Newbegin Holdings Limited

Company Information
for the year ended 31st December 2023







DIRECTORS: P T Simpson
J J Swaby
R E Thorpe





SECRETARY: Mrs M A Simpson





REGISTERED OFFICE: Newbegin House
14-16 Newbegin
Beverley
East Yorkshire
HU17 8EG





REGISTERED NUMBER: 10275347 (England and Wales)





AUDITORS: Smailes Goldie
Chartered Accountants
Statutory Auditor
Regent's Court
Princess Street
Hull
East Yorkshire
HU2 8BA

Newbegin Holdings Limited (Registered number: 10275347)

Strategic Report
for the year ended 31st December 2023

The directors present their strategic report 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 700 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 Holdings Limited (Registered number: 10275347)

Report of the Directors
for the year ended 31st December 2023

The directors present their report with the financial statements of the company for the year ended 31st December 2023.

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of a holding company.

DIVIDENDS
The total distribution of dividends for the period ended 31st December 2023 will be £1,965,000 (2022 £1,662,000)

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
J J Swaby
R E Thorpe

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.

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.


Newbegin Holdings Limited (Registered number: 10275347)

Report of the Directors
for the year ended 31st December 2023

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the 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 of the profit or loss of the company 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 transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company 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 company'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 company's auditors are aware of that information.

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 Holdings Limited

Opinion
We have audited the financial statements of Newbegin Holdings Limited (the 'company') for the year ended 31st December 2023 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity and 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 company's affairs as at 31st December 2023 and of its 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 company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the 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 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 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 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 Holdings Limited


Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the 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, or returns adequate for our audit have not been received from branches not visited by us; or
- the 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 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 company or to cease operations, or have no realistic alternative but to do so.

Report of the Independent Auditors to the Members of
Newbegin Holdings 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 company, including the Companies Act 2006, taxation legislation, data protection, anti-bribery, employment, 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 company'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.

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 HMRC, relevant regulators and the company'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 Holdings 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 Holdings Limited (Registered number: 10275347)

Income Statement
for the year ended 31st December 2023

2023 2022
Notes £    £   

TURNOVER - -

Administrative expenses 50,680 83,415
(50,680 ) (83,415 )

Other operating income 385,635 276,000
OPERATING PROFIT 4 334,955 192,585

Income from shares in group
undertakings

1,965,000

1,662,000
2,299,955 1,854,585

Interest payable and similar expenses 5 195,587 113,117
PROFIT BEFORE TAXATION 2,104,368 1,741,468

Tax on profit 6 41,015 22,590
PROFIT FOR THE FINANCIAL YEAR 2,063,353 1,718,878

Newbegin Holdings Limited (Registered number: 10275347)

Other Comprehensive Income
for the year ended 31st December 2023

2023 2022
Notes £    £   

PROFIT FOR THE YEAR 2,063,353 1,718,878


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

2,063,353

1,718,878

Newbegin Holdings Limited (Registered number: 10275347)

Balance Sheet
31st December 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 8 1,910,933 1,950,353
Investments 9 4,021,209 4,021,209
5,932,142 5,971,562

CURRENT ASSETS
Debtors 10 3,977,021 3,977,021
Cash at bank 40,615 74,584
4,017,636 4,051,605
CREDITORS
Amounts falling due within one year 11 2,804,295 2,596,473
NET CURRENT ASSETS 1,213,341 1,455,132
TOTAL ASSETS LESS CURRENT
LIABILITIES

7,145,483

7,426,694

CREDITORS
Amounts falling due after more than one
year

12

(2,498,144

)

(2,880,872

)

PROVISIONS FOR LIABILITIES 14 (43,613 ) (40,449 )
NET ASSETS 4,603,726 4,505,373

CAPITAL AND RESERVES
Called up share capital 15 100 100
Share premium 16 1,874,900 1,874,900
Retained earnings 16 2,728,726 2,630,373
SHAREHOLDERS' FUNDS 4,603,726 4,505,373

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 Holdings Limited (Registered number: 10275347)

Statement of Changes in Equity
for the year ended 31st December 2023

Called up
share Retained Share Total
capital earnings premium equity
£    £    £    £   
Balance at 1st January 2022 100 2,573,495 1,874,900 4,448,495

Changes in equity
Dividends - (1,662,000 ) - (1,662,000 )
Total comprehensive income - 1,718,878 - 1,718,878
Balance at 31st December 2022 100 2,630,373 1,874,900 4,505,373

Changes in equity
Dividends - (1,965,000 ) - (1,965,000 )
Total comprehensive income - 2,063,353 - 2,063,353
Balance at 31st December 2023 100 2,728,726 1,874,900 4,603,726

Newbegin Holdings Limited (Registered number: 10275347)

Notes to the Financial Statements
for the year ended 31st December 2023

1. STATUTORY INFORMATION

Newbegin Holdings 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 Company Information page.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
The financial statements have been prepared in accordance with applicable accounting standards including Financial Reporting Standard 102 The Financial Reporting Standard Applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. The financial statements have been prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value.

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

Financial Reporting Standard 102 - reduced disclosure exemptions
The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

the requirements of Section 7 Statement of Cash Flows;
the requirement of paragraph 3.17(d).

Preparation of consolidated financial statements
The financial statements contain information about Newbegin Holdings Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 400 of the Companies Act 2006 from the requirements to prepare consolidated financial statements as it and its subsidiary undertaking are included by full consolidation in the consolidated financial statements of its parent, Newbegin Corporation Limited, Newbegin House Geneva Way, Leads Road, Hull, HU7 0DG.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Freehold property - 2% on cost

Investments in subsidiaries
Investments in subsidiary undertakings are recognised at cost.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, 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.


Newbegin Holdings Limited (Registered number: 10275347)

Notes to the Financial Statements - continued
for the year ended 31st December 2023

2. ACCOUNTING POLICIES - continued
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.

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.

Loans and borrowings
Loans and borrowings are initially recognised at the transaction price including transaction costs. Subsequently, they are measured at amortised cost using the effective interest rate method, less impairment. If an arrangement constitutes a finance transaction it is measured at present value.

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.

3. EMPLOYEES AND DIRECTORS

There were no staff costs for the year ended 31st December 2023 nor for the year ended 31st December 2022.

The average number of employees during the year was as follows:
2023 2022

Directors 3 3

2023 2022
£    £   
Directors' remuneration - -

4. OPERATING PROFIT

The operating profit is stated after charging:

2023 2022
£    £   
Depreciation - owned assets 39,420 39,425
Auditors' remuneration 6,000 13,732

Newbegin Holdings Limited (Registered number: 10275347)

Notes to the Financial Statements - continued
for the year ended 31st December 2023

5. INTEREST PAYABLE AND SIMILAR EXPENSES
2023 2022
£    £   
Bank loan interest 195,587 113,117

6. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2023 2022
£    £   
Current tax:
UK corporation tax 37,851 18,451

Deferred tax 3,164 4,139
Tax on profit 41,015 22,590

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

2023 2022
£    £   
Profit before tax 2,104,368 1,741,468
Profit multiplied by the standard rate of corporation tax in the UK of
25% (2022 - 19%)

526,092

330,879

Effects of:
Expenses not deductible for tax purposes 8,554 6,500
Income not taxable for tax purposes (491,250 ) (315,780 )
Adjustment for deferred tax calculated at increased rate - 991
Change in rate of corporation tax (2,381 ) -
Total tax charge 41,015 22,590

7. DIVIDENDS
2023 2022
£    £   
Ordinary shares of £1 each
Interim 1,965,000 1,662,000

Newbegin Holdings Limited (Registered number: 10275347)

Notes to the Financial Statements - continued
for the year ended 31st December 2023

8. TANGIBLE FIXED ASSETS
Freehold
property
£   
COST
At 1st January 2023
and 31st December 2023 2,162,460
DEPRECIATION
At 1st January 2023 212,107
Charge for year 39,420
At 31st December 2023 251,527
NET BOOK VALUE
At 31st December 2023 1,910,933
At 31st December 2022 1,950,353

9. FIXED ASSET INVESTMENTS
Shares in
group
undertakings
£   
COST
At 1st January 2023
and 31st December 2023 4,021,209
NET BOOK VALUE
At 31st December 2023 4,021,209
At 31st December 2022 4,021,209

The company's investments at the Balance Sheet date in the share capital of companies include the following:

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

Newbegin Holdings Limited (Registered number: 10275347)

Notes to the Financial Statements - continued
for the year ended 31st December 2023

9. FIXED ASSET INVESTMENTS - continued

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: Dormant
%
Class of shares: holding
Ordinary 75.00

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: 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: Grange Lane North, Scunthorpe, North Lincolnshire, DN16 1BN
Nature of business: Dormant
%
Class of shares: holding
Ordinary 75.00

10. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Amounts owed by group undertakings 3,977,021 3,977,021

Newbegin Holdings Limited (Registered number: 10275347)

Notes to the Financial Statements - continued
for the year ended 31st December 2023

11. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Bank loans and overdrafts (see note 13) 208,122 32,245
Amounts owed to group undertakings 2,541,253 2,541,253
Tax 37,850 18,451
Other creditors 25 24
Accruals and deferred income 17,045 4,500
2,804,295 2,596,473

12. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
2023 2022
£    £   
Bank loans (see note 13) 2,498,144 2,880,872

13. LOANS

An analysis of the maturity of loans is given below:

2023 2022
£    £   
Amounts falling due within one year or on demand:
Bank loans 208,122 32,245

Amounts falling due between one and two years:
Bank loans - 1-2 years 2,498,144 34,166

Amounts falling due between two and five years:
Bank loans - 2-5 years - 2,846,706

Bank loans consists of a term loan drawdown facility agreement of £3m which is repayable by monthly capital instalments of £16,666. The final repayment date on the facility is December 2025. Interest is payable at a variable interest rate of 2.3% over the Bank of England Base Rate.

14. PROVISIONS FOR LIABILITIES
2023 2022
£    £   
Deferred tax 43,613 40,449

Deferred
tax
£   
Balance at 1st January 2023 40,449
Charge to Income Statement during year 3,164
Balance at 31st December 2023 43,613

Newbegin Holdings Limited (Registered number: 10275347)

Notes to the Financial Statements - continued
for the year ended 31st December 2023

15. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2022 2021
Value £ £
89 Ordinary A £1 89 89
11 Ordinary B £1 11 11
100 100

Both classes of shares rank equally except that a dividend may be voted on one class of shares to the exclusion of the other and that dividends of different rates can be voted on the different classes.

16. RESERVES
Retained Share
earnings premium Totals
£    £    £   

At 1st January 2023 2,630,373 1,874,900 4,505,273
Profit for the year 2,063,353 - 2,063,353
Dividends (1,965,000 ) - (1,965,000 )
At 31st December 2023 2,728,726 1,874,900 4,603,626

Retained earnings represents cumulative profits and losses net of dividends and other adjustments.

Share premium represents the premium arising on the issue of shares net of issue costs.

17. ULTIMATE PARENT COMPANY

The company's parent company is Newbegin Corporation Limited. The registered office of this company is Newbegin House Geneva Way, Leads Road, Hull, HU7 0DG.

The largest and smallest group in which the results of the company to 31 December 2023 are consolidated is that headed by Newbegin Corporation Limited. The consolidated financial statements of the group are available to the public and may be obtained from Companies House, Crown Way, Cardiff, CF14 3UZ.

18. CONTINGENT LIABILITIES

There is a cross guarantee with other group company's in respect of bank and other borrowings. At 31st December 2023 the potential net liability of the company under the arrangement was £2,173,934 (2022 £3,124,491)

19. 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.

20. ULTIMATE CONTROLLING PARTY

The company is not controlled by any one party.