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REGISTERED NUMBER: 00532879 (England and Wales)






















Thompson Commercials Limited

Strategic Report, Report of the Directors and

Audited Financial Statements for the Year Ended 31st December 2023






Thompson Commercials Limited (Registered number: 00532879)






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


Thompson Commercials Limited

Company Information
for the year ended 31st December 2023







DIRECTORS: P T Simpson
R E Thorpe
J J Swaby





SECRETARY: P T Simpson





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





REGISTERED NUMBER: 00532879 (England and Wales)





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

Thompson Commercials Limited (Registered number: 00532879)

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
Thompson Commercials Limited is the largest privately owned franchised Renault Truck dealer group in the UK, based in the north and east of England. The company also operates an Isuzu Truck franchise. The company buys and sells commercial vehicles and has an extensive aftersales operation, servicing and maintaining vehicles, and supplying parts in each of its seven depots. Via its sister companies it has access to a fleet of some 750 commercial vehicles for both short and long term hire.

Performance of the company for the year under review was strong in the view of the directors 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.

The directors remain positive for 2024 despite the current economic climate.

PRINCIPAL RISKS AND UNCERTAINTIES
The entity's operations expose it to competitive, legislative and financial risks that include credit risk and liquidity risk. The company has in place a strong risk management programme that aims to eliminate adverse effects on the financial performance of the company.

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 financial performance of the company is reviewed 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 from the financial statements.

ON BEHALF OF THE BOARD:





R E Thorpe - Director


2nd September 2024

Thompson Commercials Limited (Registered number: 00532879)

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 main dealers in the commercial motor trade.

DIVIDENDS
Dividends totalling £1,200,000 (2022 £1,100,000) were paid during the period.

The director recommends there is no final dividend paid.

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

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 company 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.

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.

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 more than 40,000 kWh of energy each year, therefore energy efficiency disclosures under the Streamlined Energy and Carbon Reporting regulations ("SECR") are disclosed.

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

Thompson Commercials Limited (Registered number: 00532879)

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
Thompson Commercials Limited

Opinion
We have audited the financial statements of Thompson Commercials 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
Thompson Commercials 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
Thompson Commercials 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;
- reading the minutes of meetings of those charged with governance;
- enquiring of management as to actual and potential litigation and claims; and
- reviewing correspondence with HMRC, relevant regulators including the Health and Safety Executive, 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
Thompson Commercials 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

Thompson Commercials Limited (Registered number: 00532879)

Income Statement
for the year ended 31st December 2023

2023 2022
Notes £    £    £    £   

TURNOVER 90,765,798 68,738,250

Cost of sales 78,550,895 57,906,881
GROSS PROFIT 12,214,903 10,831,369

Distribution costs 3,718,669 3,112,773
Administrative expenses 5,635,724 4,881,172
9,354,393 7,993,945
2,860,510 2,837,424

Other operating income 12,000 12,000
OPERATING PROFIT 4 2,872,510 2,849,424


Interest payable and similar expenses 5 753,892 231,520
PROFIT BEFORE TAXATION 2,118,618 2,617,904

Tax on profit 6 502,740 494,055
PROFIT FOR THE FINANCIAL YEAR 1,615,878 2,123,849

Thompson Commercials Limited (Registered number: 00532879)

Other Comprehensive Income
for the year ended 31st December 2023

2023 2022
Notes £    £   

PROFIT FOR THE YEAR 1,615,878 2,123,849


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

1,615,878

2,123,849

Thompson Commercials Limited (Registered number: 00532879)

Balance Sheet
31st December 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 8 670,139 797,909

CURRENT ASSETS
Stocks 9 5,762,823 4,548,438
Debtors 10 13,644,793 14,074,092
Cash at bank and in hand 802,665 2,059,128
20,210,281 20,681,658
CREDITORS
Amounts falling due within one year 11 11,882,449 12,829,258
NET CURRENT ASSETS 8,327,832 7,852,400
TOTAL ASSETS LESS CURRENT
LIABILITIES

8,997,971

8,650,309

CREDITORS
Amounts falling due after more than one
year

12

(85,618

)

(125,386

)

PROVISIONS FOR LIABILITIES 16 (83,715 ) (112,163 )
NET ASSETS 8,828,638 8,412,760

CAPITAL AND RESERVES
Called up share capital 17 308,000 308,000
Retained earnings 18 8,520,638 8,104,760
SHAREHOLDERS' FUNDS 8,828,638 8,412,760

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


Thompson Commercials Limited (Registered number: 00532879)

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

Called up
share Retained Total
capital earnings equity
£    £    £   
Balance at 1st January 2022 308,000 7,080,911 7,388,911

Changes in equity
Dividends - (1,100,000 ) (1,100,000 )
Total comprehensive income - 2,123,849 2,123,849
Balance at 31st December 2022 308,000 8,104,760 8,412,760

Changes in equity
Dividends - (1,200,000 ) (1,200,000 )
Total comprehensive income - 1,615,878 1,615,878
Balance at 31st December 2023 308,000 8,520,638 8,828,638

Thompson Commercials Limited (Registered number: 00532879)

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

1. STATUTORY INFORMATION

Thompson Commercials 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

General information and basis of preparation
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);
the requirement of paragraph 33.7.

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.

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.

Thompson Commercials Limited (Registered number: 00532879)

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

2. ACCOUNTING POLICIES - continued

Tangible fixed assets
Tangible fixed assets are stated at cost (or deemed cost) or valuation less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended.

Depreciation is provided on all tangible fixed assets, at rates calculated to write off the cost, less estimated residual value, of each asset on a systematic basis over its expected useful life as follows:

Freehold buildings50 years
Leasehold property3 years
Plant and equipment3 - 10 years
Motor vehicles2 - 4 years

Where a land element has not been separately identifiable from a building, it has been depreciated in accordance with the accounting policy applied to the building.

Stocks
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 company's control at the year end on a Dealer Stocking Facility. These have not been included in the company's stock figure as in the opinion of the directors substantially not all of the risks of ownership have been transferred to the company.

Taxation
Current tax represents the amount of tax payable or receivable in respect of the taxable profit (or loss) for the current or past reporting periods. It is measured at the amount expected to be paid or recovered using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax represents the future tax consequences of transactions and events recognised in the financial statements of current and previous periods. It is recognised in respect of all timing differences, with certain exceptions. Timing differences are differences between taxable profits and total comprehensive income as stated in the financial statements that arise from the inclusion of income and expense in tax assessments in periods different from those in which they are recognised in the financial statements. 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.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date that are expected to apply to the reversal of timing differences. Deferred tax on revalued non-depreciable tangible fixed assets and investment properties is measured using the rates and allowances that apply to the sale of the asset.

Thompson Commercials Limited (Registered number: 00532879)

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

2. ACCOUNTING POLICIES - continued

Foreign currencies
Foreign currency transactions are initially recognised by applying to the foreign currency amount the spot exchange rate between the functional currency and the foreign currency at the date of the transaction.

Monetary assets and liabilities denominated in a foreign currency at the balance sheet date are translated using the closing rate.

Hire purchase and leasing commitments
Assets acquired under finance leases are capitalised and depreciated over the shorter of the lease term and the expected useful life of the asset. Minimum lease payments are apportioned between the finance charge and the reduction of the outstanding lease liability using the effective interest method. The related obligations, net of future finance charges, are included in creditors.

Where goods are sold using finance leases, the entity recognises turnover from the sale of goods and the rights to receive future lease payments as a debtor. Minimum lease payments are apportioned between finance income and the reduction of the lease debtor with finance income allocated so as to produce a constant periodic rate of interest on the net investment in the finance lease.

Rentals payable and receivable under operating leases are charged to the profit and loss account on a straight line basis over the period of the lease.

Employee benefits
When employees have rendered service to the company, short-term employee benefits to which the employees are entitled are recognised at the undiscounted amount expected to be paid in exchange for that service.

The company operates a defined contribution plan for the benefit of its employees. Contributions are expensed as they become payable

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.

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.

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

Government Grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the company will comply with conditions attaching to them and the grants will be received using the performance model.

Thompson Commercials Limited (Registered number: 00532879)

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

3. EMPLOYEES AND DIRECTORS

The average number of persons employed by the company, including directors, during the year was as follows:
20232022

Management33
Administration4946
Operational and sales152138
204186

The aggregate payroll costs in respect of these employees were as follows:
20232022
££
Wages and salaries7,235,6416,274,721
Social security715,707647,382
Other pension costs204,607176,956
8,155,9557,099,059


4. OPERATING PROFIT

Operating profit is stated after charging/(crediting):
20232022
£   £   
Depreciation - owned assets181,759176,247
Operating lease rentals - plant and machinery66,38873,729
Operating lease rentals - other529,946489,852
Auditor's remuneration25,26633,000

Directors' emoluments32,16032,160
Directors' pension contributions to money purchase schemes9,6009,600

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes11

5. INTEREST PAYABLE AND SIMILAR EXPENSES
2023 2022
£    £   
Stocking interest 753,892 231,520

Thompson Commercials Limited (Registered number: 00532879)

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

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 531,188 446,104

Deferred tax (28,448 ) 47,951
Tax on profit 502,740 494,055

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 2,118,618 2,617,904
Profit multiplied by the standard rate of corporation tax in the UK of
25% (2022 - 19%)

529,655

497,402

Effects of:
Expenses not deductible for tax purposes 6,967 3,757
Super deduction enhanced expenditure (470 ) (18,612 )
Adjustment for tax calculated at decreased rate (33,412 ) 11,508
Total tax charge 502,740 494,055

7. DIVIDENDS
2023 2022
£    £   
Ordinary shares of £1 each
Interim 1,200,000 1,100,000

Thompson Commercials Limited (Registered number: 00532879)

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

8. TANGIBLE FIXED ASSETS
Plant,
machinery,
Short Long fixtures Motor
leasehold leasehold & fittings vehicles Totals
£    £    £    £    £   
COST
At 1st January 2023 38,366 379,720 1,909,768 447,374 2,775,228
Additions - - 36,339 17,650 53,989
At 31st December 2023 38,366 379,720 1,946,107 465,024 2,829,217
DEPRECIATION
At 1st January 2023 38,357 59,594 1,587,725 291,643 1,977,319
Charge for year - 7,535 115,372 58,852 181,759
At 31st December 2023 38,357 67,129 1,703,097 350,495 2,159,078
NET BOOK VALUE
At 31st December 2023 9 312,591 243,010 114,529 670,139
At 31st December 2022 9 320,126 322,043 155,731 797,909

9. STOCKS
2023 2022
£    £   
Goods for resale 5,762,823 4,548,438

10. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade debtors 8,060,818 7,744,718
Amounts owed by group undertakings 3,861,409 5,225,826
Prepayments and accrued income 1,722,566 1,103,548
13,644,793 14,074,092

Trade debtors as disclosed above are subject to a Confidential Invoice Discounting facility. At 31st December 2023 the drawdown balance was £nil and the cash account was £11,578. Due to its nature, this amount was shown within cash and bank in hand, an element was shown in creditors in the prior year. At 31st December 2022 the drawdown balance was £1,323 and the cash balance was £nil.

Thompson Commercials Limited (Registered number: 00532879)

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

11. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Other loans (see note 13) - 1,323
Hire purchase contracts (see note 14) 39,768 39,768
Trade creditors 8,645,299 9,934,285
Amounts owed to group undertakings 366,852 158,495
Corporation tax 524,085 334,018
Social security and other taxes 401,326 416,477
Other creditors 1,427,663 1,485,557
Accruals and deferred income 477,456 459,335
11,882,449 12,829,258

12. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
2023 2022
£    £   
Hire purchase contracts (see note 14) 85,618 125,386

13. LOANS

An analysis of the maturity of loans is given below:

2023 2022
£    £   
Amounts falling due within one year or on demand:
Invoice discounting advances - 1,323

Interest is borne on the above finance debt at commercial borrowing rates. Bank loans are repayable by equal monthly instalments.

14. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts
2023 2022
£    £   
Net obligations repayable:
Within one year 39,768 39,768
Between one and five years 85,618 125,386
125,386 165,154

Non-cancellable operating leases
2023 2022
£    £   
Within one year 267,978 327,118
Between one and five years 669,261 889,107
937,239 1,216,225

Thompson Commercials Limited (Registered number: 00532879)

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

15. SECURED DEBTS

The following secured debts are included within creditors:

2023 2022
£    £   
Hire purchase contracts 125,386 165,154
Invoice discounting advances - 1,323
Stocking loan 918,802 884,162
1,044,188 1,050,639

The liabilities are secured by debentures and legal charges over the company's assets.

16. PROVISIONS FOR LIABILITIES
2023 2022
£    £   
Deferred tax 83,715 112,163

Deferred
tax
£   
Balance at 1st January 2023 112,163
Credit to Income Statement during year (28,448 )
Balance at 31st December 2023 83,715

17. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
308,000 Ordinary £1 308,000 308,000

18. RESERVES
Retained
earnings
£   

At 1st January 2023 8,104,760
Profit for the year 1,615,878
Dividends (1,200,000 )
At 31st December 2023 8,520,638

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

19. PENSION COMMITMENTS

Contributions to defined contribution schemes for the year amounted to £214,207 (2022 £176,956). At 31st December 2023 there was £33,030 outstanding (2022 £Nil).

Thompson Commercials Limited (Registered number: 00532879)

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

20. ULTIMATE PARENT COMPANY

The company's parent company is Thompson Commercials Group Limited. The registered office of this company is the same as can be found on page 1 of these financial statements.

The company's ultimate 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.

21. 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 £4,880,200 (2022 £6,037,608).

22. 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.

Other related parties
2023 2022
£    £   
Sales 79,975 88,868
Purchases 546,523 697,926

23. ULTIMATE CONTROLLING PARTY

The company is not controlled by any one party.