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Global Autocare Holding Limited

Registered number: 12081600
Annual report and
 consolidated financial statements
For the year ended 28 February 2024

 
GLOBAL AUTOCARE HOLDING LIMITED
 
 
COMPANY INFORMATION


Directors
G N Bloore 
J G Bloore 
S M Chater 
J Garner 
D J Sadler 
D J A Smith 




Registered number
12081600



Registered office
The Hub
Gelderd Lane

Leeds

LS12 6AL




Independent auditor
Forvis Mazars LLP
Chartered Accountants & Statutory Auditor

5th Floor

3 Wellington Place

Leeds

LS1 4AP





 
GLOBAL AUTOCARE HOLDING LIMITED
 

CONTENTS



Page
Group Strategic Report
 
1 - 4
Directors' Report
 
5 - 8
Independent Auditor's Report
 
9 - 12
Consolidated Statement of Comprehensive Income
 
13
Consolidated Statement of Financial Position
 
14
Company Statement of Financial Position
 
15
Consolidated Statement of Changes in Equity
 
16
Company Statement of Changes in Equity
 
17
Consolidated Statement of Cash Flows
 
18 - 19
Notes to the Financial Statements
 
20 - 43


 
GLOBAL AUTOCARE HOLDING LIMITED
 
 
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 28 FEBRUARY 2024

Introduction
 
The Directors present their strategic report for the year ended 28 February 2024.

Business review
 
The profit before tax and exceptional costs for the year amounted to £9,927,322 (2023 - £22,895,522) and The Statement of Financial Position on page 14 of the financial statements shows that the Group’s financial position, in terms of net assets, remains strong.
The Group incurred exceptional administration costs during the period of £7,249,421 (2023: £NIL). These costs relate to the impairment of battery electric vehicles (BEVs) where the expected recoverable amount was lower than the carrying value at the balance sheet date.
The vehicles in question were purchased during a period of restricted supply in the market due to factors such as the global pandemic and the conflict between Russia and Ukraine, resulting in lower-than-average discount levels being achieved at the time of purchase. Additionally in the year there has been a sharp decrease in the residual values of electric vehicles (EVs). These factors combined led to the recoverable amounts of the vehicles being lower than their carrying values at the balance sheet date.
The Group and Company’s Directors believe that further key performance indicators for the Group are not necessary or appropriate for an understanding of the development, performance or position of the business, and that the ones identified are the key indicators that are used by the board to monitor the Group and Company’s performance.
Both the level of business for the year and the year-end position are considered to be very satisfactory.

Page 1

 
GLOBAL AUTOCARE HOLDING LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024

Principal risks and uncertainties
 
Competitive pressure and the motor vehicle financing policies of its major clients are the principal risks to the business. The Group and Company attempts to manage such risks by ensuring service levels remain high, commercial terms remain competitive and that quality stock is available to hire/lease. Key to this is maintaining strong supplier relationships with a view to securing competitive commercial terms and to ensure sufficient asset line facility and working capital is available to meet amounts as they fall due.
Trade debtors are managed in respect of credit and cash flow risks by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits. The amounts presented in the Statement of Financial Position are net of allowances for doubtful debtors.
Asset finance loans from financial institutions. The interest rates and monthly repayments are variable based on a fixed percentage above bank base rates. The business manages the liquidity risk by ensuring that there are sufficient funds to meet payments.
The COVID-19 pandemic and the subsequent conflict between Russia and Ukraine resulted in supply constraints for new vehicles, leading to a very strong used car market with inflated residual values that positively impacted the business's financial performance in prior year comparatives. Despite these supply challenges, the Group successfully grew its fleet and customer base. During the year residual values gradually fell back to more normal levels, as the supply of new vehicles started to recover, and external economic factors tempered new vehicle consumer sales. 

Future developments
Residual values have since stabilised to more normal levels and while some supply challenges remain, vehicle availability has substantially improved and the outlook for the next twelve months remains positive. In addition, the Group will benefit from any reductions in the UK bank base rate as this will result in direct savings in fleet hire purchase interest costs.

Page 2

 
GLOBAL AUTOCARE HOLDING LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024

Section 172 Statement
 
Section 172 of the Companies Act 2006 requires the Directors of the Group to act in the way that would be most likely to promote the success of the Group for the benefit of its members as a whole. 
In doing so, the Directors must have regard to the likely consequences of any decision in the long term; the interests of its employees; relationships with it customers, suppliers & finance providers; and the impact of the Group’s operations on the local community and wider environment.

Customers
Our customers are at the heart of our business. We are dedicated to delivering exceptional service and recognise the importance of engaging with customers to understand their needs and preferences. We welcome feedback from our customers and we are constantly acting upon this feedback to maintain and improve the quality of our offerings.
We recognise that our customers value flexibility and we aim to offer our customer a range of flexible leasing options, both short and long-term as well as a large range of vehicle models and brands to choose from.
Our customers are becoming increasingly conscious of the environment and their carbon footprints. We believe that our responsibility to the environment goes beyond our own operations, and that we can have a positive impact on society by promoting sustainable transport options. To this end, we are constantly increasing our provision of hybrid and electric vehicles to assist our carbon conscious customers in achieving their carbon reduction targets.
We continue to invest in app based products such as our “myGlobal” mobile app, providing all the information our customers need within our “Driver Guide” to their mobile devices whilst simultaneously minimising the use of paper and plastic.
Employees
Our employees are our greatest asset. The Directors seek to create an environment where communication is honest and open, learning and development is encouraged and individual performance is recognised and praised.
Our remuneration packages are designed to be competitive and motivating with the aim of attracting and retaining highly skilled and dedicated employees.
Our Group intranet site is used to provide a wide range of useful information such as policies and Group announcements as well as providing an avenue for submitting feedback that is reviewed and considered by the board.
Suppliers
Managing our relationships with suppliers is vital for the smooth operation of our business.  As a provider of extraordinary fleet solutions, we rely on our suppliers for the procurement of vehicles, short-term rentals and maintenance services.
To manage our relationships with suppliers, we have implemented a robust supplier management program that focuses on building long-term relationships based on trust, respect, and collaboration. As a result, our suppliers understand our business objectives and are committed to helping us achieve them. They provide us with high-quality products and services, on-time delivery and competitive prices. Moreover, our supplier management program has helped us to reduce costs, minimise risks, and enhance the sustainability of our operations.
 
Page 3

 
GLOBAL AUTOCARE HOLDING LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024

Finance providers
We work closely with banks and asset finance providers to ensure we receive appropriate banking services and to secure funding for our vehicle purchasing activities. We maintain open and transparent relationships with our banks/funders, ensuring that we comply with all relevant regulations and contractual obligations. 
We provide accurate and timely financial information, including our financial statements, forecasts, and key performance indicators, to help them understand our financial position, risks and opportunities.
We assess the risks associated with our funding sources and take appropriate measures to mitigate them. We monitor our debt covenants, liquidity, and credit rating to ensure that we meet our financial obligations and maintain our financial health.
Community/Environment
As a provider of fleet solutions, we recognise that our operations have a large impact on the environment and society.
To minimise our impact on the environment, we focus heavily on sustainable development, the electrification of our fleet as well as minimising waste and reducing the use of paper and plastics in our operations. 
Electric and Hybrid vehicles now make up approximately a third of our overall fleet, demonstrating our commitment to the decarbonisation of mobility solutions and the achievement of net zero by 2050 in line with the Paris agreement. We have also invested in our vehicle charging infrastructure to ensure we have access to the latest technology to help continue this transition in the future.


This report was approved by the board on 29 August 2024 and signed on its behalf.


D J Sadler
Director

Page 4

 
GLOBAL AUTOCARE HOLDING LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 28 FEBRUARY 2024

The Directors present their report and the financial statements for the year ended 28 February 2024.

Directors' responsibilities statement

The Directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and the Group and of the profit or loss of the Group for that period.

 In preparing these financial statements, the Directors are required to:


select suitable accounting policies for the Group's financial statements and then apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group 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 the Group and to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

Results and dividends

The profit for the year, after taxation, amounted to £3,293,285 (2023 - £16,943,015).

Directors

The Directors who served during the year were:

G N Bloore 
J G Bloore 
S M Chater 
J Garner 
D J Sadler 
D J A Smith 

Page 5

 
GLOBAL AUTOCARE HOLDING LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024

Going concern

The Group's business activities, together with the factors likely to affect its future development, performance and position are set out in the Directors' Report. The Strategic Report outlines the Group's objectives, policies and procedures for managing capital; its financial risk management objectives and its exposure to credit risk and liquidity.
The Group has sufficient financial resources together with clearly defined performance objectives. As a consequence, the Directors believe that the Group is well placed to manage its business risks successfully despite the current economic outlook.
The Directors of the Group have conducted a robust forecasting exercise, considering the potential and likely impacts on the business due to various supply chain challenges, recent elevated levels of cost inflation, increased overheads, and higher interest rates on vehicle financing. This assessment covers a period of at least 12 months from the date of the audit report.
The Group is in a strong position giving the Directors a confident expectation that the Group has adequate resources to continue in operational existence for the foreseeable future and that it is able to face future challenges. As such the Directors are satisfied that the Group remains a going concern and the financial statements have been prepared on the going concern basis.

Engagement with suppliers, customers and others

Please refer to page 2 of the Strategic Report where the Group's and Company’s engagement with suppliers, customers and other stakeholders has been discussed.

Streamlined Energy and Carbon Reporting (SECR)

As a responsible and forward-thinking business, we are committed to supporting the future of mobility and its transition to net zero. The following reporting includes our energy consumption and Greenhouse Gas Emissions (“GHG”) for the years in question, covering our office sites, vehicle movements, employee commuting and waste generation.
To learn more about the Company’s initiatives, targets and strategies, please visit our website at www.globalautocare.co.uk to find our publicly available Carbon Reduction Plan.

Methodology
The Group is required to report GHG emissions based on the energy and carbon reporting framework. Emissions have been calculated and reported in line with the Greenhouse Gas (GHG) Protocol Corporate Accounting and Reporting Standard under the operational control approach.
 
Page 6

 
GLOBAL AUTOCARE HOLDING LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024

The reporting period is the same as the financial year that is covered in the Annual Report and Financial Statements (year ended 28 February 2024).


2024
2023
Consumption (kWh)


Natural gas/electricity/fuel for transport
 
2,149,318
1,995,253
Emissions (tCO2e)
 


Scope 1 Emissions (natural gas, transport)
333.9
304.4
Scope 2 Emissions (electricity)
32.7
0
Scope 3 Emissions (employee commuting/waste generated)
 
101.8
 
96.1
Total Emissions (tCO2e)
 
468.4
400.5
Intensity Ratio


tCO2e per £ of revenue (excluding used car sales)
0.0000079
0.0000077


The Group’s overall energy consumption and GHG emissions have increased slightly in the year primarily due to the following reasons:
 1. Strong growth resulting in increased vehicle movements. 
 2. Increased electricity consumption due to increased charging of electric and plug-in hybrid electric vehicles (EV/PHEV) as the mix of these low-emission vehicles in the fleet increases.
 3. Renewal of an electricity contract for one of our sites managed by the landlord, which is outside of the Group’s control. Previously, this contract was 100% renewable energy, but the new contract includes both renewable and non-renewable sources and is thus no longer zero emission.
Despite a 17% increase in overall GHG emissions, the Group has seen only a 1.8% increase in tCO2e per £ of rental revenue. When adjusting for the increased emissions due to the renewal of the energy contract to include non-renewable energy, there was actually a decrease of 5.3% in the tCO2e per £ of rental revenue. This demonstrates our ability to achieve growth while mitigating the impact of our operations on the environment through factors under our control.
Efficiency measures taken in the year:
 
Increased the provision of EV/PHEV vehicles for our customers with these fuel types now making up approximately a third of the overall fleet. As a result, the average grams of CO2 per KM of the fleet reduced by c3% in the year.
Established an ESG Committee to support the environmental governance structure with updates reported quarterly to our Leadership Board.
Global were the official vehicle supplier to the World Athletics Indoor Championships Glasgow 2024 providing a full fleet of battery electric vehicles for athlete and VIP transport. The event was the first to be awarded platinum level recognition for sustainable delivery and the provision of the electric vehicles was a key contribution to this achievement.
 
Page 7

 
GLOBAL AUTOCARE HOLDING LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024

Introduced a plastic-free and 100% recyclable number plate that leads the way towards a greener automotive industry. These plates have the following benefits:

 o 81% lower carbon footprint compared to traditional plastic plates
 o 71% reduction in environmental impact, surpassing that of aluminium plates
 o 1/5th of the green house gas emissions associated with conventional plates
 o Reusability and recyclability, ensuring a circular lifecycle for the product.
 
Global has partnered with Lightfoot telematics, an award-winning, government supported technology that is making our roads safer, our environment cleaner and our fleet operations less costly.  This technology can help reduce fuel consumption and emissions by up to 15% as well as reducing accident rates by up to 40%.
 
Official Event Partner of the ‘Yorkshire Sustainability Excellence Awards’, created to recognise the businesses and organisations in the region that are making permanent and positive changes to their environmental impact, working with The Business Desk.

Matters covered in the Group Strategic Report

Certain information not shown in the Directors' Report is shown in the Strategic Report on pages 1-3 instead in accordance with Section 414C(11) of the Companies Act 2006. This includes a business review, future developments, principal risks and uncertainties and engagement with Customers, Employees, Suppliers, Finance providers and the Community/Environment.

Disclosure of information to auditor

Each of the persons who are Directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the Director is aware, there is no relevant audit information of which the Company and the Group's auditor is unaware, and

the Director has taken all the steps that ought to have been taken as a Director in order to be aware of any relevant audit information and to establish that the Company and the Group's auditor is aware of that information.

Auditor

The auditor, Forvis Mazars LLPwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 29 August 2024 and signed on its behalf.
 





D J Sadler
Director

Page 8

 
GLOBAL AUTOCARE HOLDING LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF GLOBAL AUTOCARE HOLDING LIMITED
 

Opinion

We have audited the financial statements of Global Autocare Holding Limited (the ‘Parent Company’) and its subsidiaries (the ‘Group’) for the year ended 28 February 2024 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Statement of Financial Position, Company Statement of Financial Position, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Statement of Cash Flows and notes to the 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 FRS 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 the Parent Company’s affairs as at 28 February 2024 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 “Auditor’s 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 group’s and of 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 other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information contained within the annual report.  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.
Page 9

 
GLOBAL AUTOCARE HOLDING LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF GLOBAL AUTOCARE HOLDING LIMITED
 

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 course of 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In light of the knowledge and understanding of the Group and Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.

We have nothing to report in respect of the following matters in relation to which 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.

Page 10

 
GLOBAL AUTOCARE HOLDING LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF GLOBAL AUTOCARE HOLDING LIMITED
 

Responsibilities of Directors

As explained more fully in the Directors' Responsibilities Statement set out on page 5, 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 is 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 intend either to liquidate the Group or the Parent Company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
 
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.
 
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. 
 
Based on our understanding of the Group and Parent Company and its industry, we considered that non-compliance with the following laws and regulations might have a material effect on the financial statements: employment regulation, health and safety regulation and anti-money laundering regulation.

To help us identify instances of non-compliance with these laws and regulations, and in identifying and assessing the risks of material misstatement in respect to non-compliance, our procedures included, but were not limited to:
Inquiring of management and, where appropriate, those charged with governance, as to whether the company is in compliance with laws and regulations, and discussing their policies and procedures regarding compliance with laws and regulations;
Inspecting correspondence, if any, with relevant licensing or regulatory authorities;
Communicating identified laws and regulations to the engagement team and remaining alert to any indications of non-compliance throughout our audit; and
Considering the risk of acts by the company which were contrary to applicable laws and regulations, including fraud.  

We also considered those laws and regulations that have a direct effect on the preparation of the financial statements, such as tax legislation, pension legislation, the Companies Act 2006. 
Page 11

 
GLOBAL AUTOCARE HOLDING LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF GLOBAL AUTOCARE HOLDING LIMITED
 

In addition, we evaluated the directors’ and management’s incentives and opportunities for fraudulent manipulation of the financial statements, including the risk of management override of controls, and determined that the principal risks related to posting manual journal entries to manipulate financial performance, management bias through judgements and assumptions in significant accounting estimates, in particular in relation to, revenue recognition (which we pinpointed to the cut off assertion), and significant one-off or unusual transactions. 
 
Our audit procedures in relation to fraud included but were not limited to:
Making enquiries of the directors and management on whether they had knowledge of any actual, suspected or alleged fraud;
Gaining an understanding of the internal controls established to mitigate risks related to fraud;
Discussing amongst the engagement team the risks of fraud; and
Addressing the risks of fraud through management override of controls by performing journal entry testing.

There are inherent limitations in the audit procedures described above and the primary responsibility for the prevention and detection of irregularities including fraud rests with management. As with any audit, there remained a risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal controls.

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 auditor’s report.

Use of the audit report

This report is made solely to the Company's members as a body in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members as a body for our audit work, for this report, or for the opinions we have formed.




Shaun Mullins (Senior Statutory Auditor)

  
for and on behalf of

Forvis Mazars LLP
Chartered Accountants and Statutory Auditor 
5th Floor
3 Wellington Place
Leeds
LS1 4AP

29 August 2024
Page 12

 
GLOBAL AUTOCARE HOLDING LIMITED
 
 
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 28 FEBRUARY 2024

2024
2023
Note
£
£

  

Turnover
 4 
66,407,982
59,000,872

Cost of sales
  
(35,620,434)
(18,707,982)

Gross profit
  
30,787,548
40,292,890

Administrative expenses
  
(8,090,450)
(8,906,776)

Other operating income
 6 
44,190
38,898

Operating profit before exceptional administrative expenses
 7 
22,741,288
31,425,012

Exceptional impairment costs
 5 
(7,249,421)
-

Operating profit after exceptional administrative expenses
  
15,491,867
31,425,012

Interest receivable and similar income
 11 
229,100
47,523

Interest payable and similar expenses
 12 
(13,043,066)
(8,577,013)

Profit before tax
  
2,677,901
22,895,522

Tax on profit
 13 
615,384
(5,952,507)

Profit for the financial year
  
3,293,285
16,943,015

  

There were no recognised gains and losses for 2024 or 2023 other than those included in the consolidated statement of comprehensive income.

There was no other comprehensive income for 2024 (2023:£NIL).

The notes on pages 20 to 43 form part of these financial statements.

Page 13

 
GLOBAL AUTOCARE HOLDING LIMITED
REGISTERED NUMBER: 12081600

CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 28 FEBRUARY 2024

2024
2023
Note
£
£

Fixed assets
  

Intangible assets
 14 
19,031,710
22,313,038

Tangible assets
 15 
185,787,295
178,251,211

  
204,819,005
200,564,249

Current assets
  

Stocks
 17 
-
1,585,128

Debtors: amounts falling due within one year
 18 
6,844,534
6,130,574

Cash at bank and in hand
 19 
7,675,845
15,731,897

  
14,520,379
23,447,599

Creditors: amounts falling due within one year
 20 
(134,718,228)
(135,169,293)

Net current liabilities
  
 
 
(120,197,849)
 
 
(111,721,694)

Total assets less current liabilities
  
84,621,156
88,842,555

Creditors: amounts falling due after more than one year
 21 
(50,302,851)
(55,544,222)

Provisions for liabilities
  

Deferred taxation
 24 
(2,222,328)
(4,495,641)

Net assets
  
32,095,977
28,802,692


Capital and reserves
  

Called up share capital 
 25 
10,000
10,000

Share premium account
 26 
508,519
508,519

Profit and loss account
 26 
31,577,458
28,284,173

  
32,095,977
28,802,692


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 29 August 2024.



D J Sadler
Director

The notes on pages 20 to 43 form part of these financial statements.

Page 14

 
GLOBAL AUTOCARE HOLDING LIMITED
REGISTERED NUMBER: 12081600

COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 28 FEBRUARY 2024

2024
2023
Note
£
£

Fixed assets
  

Investments
 16 
49,052,936
49,052,936

Current assets
  

Debtors: amounts falling due within one year
 18 
1,348,349
140,164

Cash at bank and in hand
 19 
17,665
86,658

  
1,366,014
226,822

Creditors: amounts falling due within one year
 20 
(8,366,893)
(2,221,863)

Net current liabilities
  
 
 
(7,000,879)
 
 
(1,995,041)

Total assets less current liabilities
  
42,052,057
47,057,895

  

Creditors: amounts falling due after more than one year
 21 
(11,604,549)
(23,067,815)

  

Net assets
  
30,447,508
23,990,080


Capital and reserves
  

Called up share capital 
 25 
10,000
10,000

Share premium account
 26 
508,519
508,519

Profit and loss account
 26 
29,928,989
23,471,561

  
30,447,508
23,990,080


The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements. The profit after tax of the Company for the year was £6,457,428 (2023: £8,462,772).
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 29 August 2024.


D J Sadler
Director

The notes on pages 20 to 43 form part of these financial statements.

Page 15

 
GLOBAL AUTOCARE HOLDING LIMITED
 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 28 FEBRUARY 2024


Called up share capital
Share premium account
Profit and loss account
Total equity

£
£
£
£


At 1 March 2022
10,000
508,519
11,341,158
11,859,677


Comprehensive income for the year

Profit for the year
-
-
16,943,015
16,943,015
Total comprehensive income for the year
-
-
16,943,015
16,943,015



At 1 March 2023
10,000
508,519
28,284,173
28,802,692


Comprehensive income for the year

Profit for the year
-
-
3,293,285
3,293,285
Total comprehensive income for the year
-
-
3,293,285
3,293,285


At 28 February 2024
10,000
508,519
31,577,458
32,095,977


The notes on pages 20 to 43 form part of these financial statements.

Page 16

 
GLOBAL AUTOCARE HOLDING LIMITED
 

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 28 FEBRUARY 2024


Called up share capital
Share premium account
Profit and loss account
Total equity

£
£
£
£


At 1 March 2022
10,000
508,519
15,008,789
15,527,308


Comprehensive income for the year

Profit for the year
-
-
8,462,772
8,462,772
Total comprehensive income for the year
-
-
8,462,772
8,462,772



At 1 March 2023
10,000
508,519
23,471,561
23,990,080


Comprehensive income for the year

Profit for the year
-
-
6,457,428
6,457,428
Total comprehensive income for the year
-
-
6,457,428
6,457,428


At 28 February 2024
10,000
508,519
29,928,989
30,447,508


The notes on pages 20 to 43 form part of these financial statements.

Page 17

 
GLOBAL AUTOCARE HOLDING LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 28 FEBRUARY 2024

2024
2023
£
£

Cash flows from operating activities

Profit for the financial year
3,293,285
16,943,015

Adjustments for:

Amortisation of intangible assets
3,281,328
3,281,328

Depreciation of tangible assets
30,301,160
26,521,077

Impairment of tangible assets
7,249,421
-

Profit on disposal of tangible assets
(10,279,692)
(21,647,097)

Interest paid
13,043,066
8,577,013

Interest received
(229,100)
(47,523)

Taxation charge
(615,384)
5,952,507

Decrease in stocks
1,585,128
198,303

(Increase)/decrease in debtors
(177,892)
373,447

Increase in creditors
964,364
2,123,650

Corporation tax paid
(2,217,632)
(4,732,589)

Net cash generated from operating activities

46,198,052
37,543,131


Cash flows from investing activities

Purchase of tangible fixed assets
(145,799,095)
(151,627,180)

Sale of tangible fixed assets
110,864,701
101,064,031

Interest received
229,100
47,523

Net cash from investing activities

(34,705,294)
(50,515,626)
Page 18

 
GLOBAL AUTOCARE HOLDING LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024


2024
2023

£
£



Cash flows from financing activities

Repayment of bank loans
(686,668)
(686,668)

Repayment of other loans
(1,144,046)
(30,097,239)

New finance leases
176,323,996
192,032,700

Repayment of finance leases
(177,897,042)
(153,244,687)

Interest paid
(5,053,302)
(416,373)

HP interest paid
(11,091,748)
(5,973,804)

Net cash generated by financing activities
(19,548,810)
1,613,929

Net (decrease) in cash and cash equivalents
(8,056,052)
(11,358,566)

Cash and cash equivalents at beginning of year
15,731,897
27,090,463

Cash and cash equivalents at the end of year
7,675,845
15,731,897


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
7,675,845
15,731,897

7,675,845
15,731,897


Page 19

 
GLOBAL AUTOCARE HOLDING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2024

1.


General information

The Company is a private company limited by share capital and incorporated in England & Wales, registered number 12081600.
The address of its registered office is:
The Hub
Gelderd Lane
Leeds
LS12 6AL

The principal activity of Global Autocare Holding Limited is a holding company whose subsidiary, Global Autocare Limited's principal activity can be summarised into the purchasing of motor vehicles, hire/leasing of motor vehicles via Daily Rental or longer term Contract Hire agreements and the sale of motor vehicles. In addition the Company provides additional services such as the maintenance, repair and movement of motor vehicles along with other fleet management services.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgment in applying the Group's accounting policies (see note 3).

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements.

These financial statements have been presented in pound sterling which is the functional currency of the Company, and rounded to the nearest £.
The financial statements have been prepared up to and including 29 February 2024.

The following principal accounting policies have been applied:

 
2.2

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Statement of Financial Position, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Comprehensive Income from the date on which control is obtained. They are deconsolidated from the date control ceases.

Page 20

 
GLOBAL AUTOCARE HOLDING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2024

2.Accounting policies (continued)

  
2.3

Financial reporting standard 102 - reduced disclosure exemptions

The Parent Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
 
the requirements of Section 7 Statement of Cash Flows;
the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
the requirements of Section 33 Related Party Disclosures paragraph 33.7.


 
2.4

Going concern

The Group's business activities, together with the factors likely to affect its future development, performance and position are set out in the Directors' Report. The Strategic Report outlines the Group's objectives, policies and procedures for managing capital; its financial risk management objectives and its exposure to credit risk and liquidity.
The Group has sufficient financial resources together with clearly defined performance objectives. As a consequence, the Directors believe that the Group is well placed to manage its business risks successfully despite the current economic outlook.
The Directors of the Group have conducted a robust forecasting exercise, considering the potential and likely impacts on the business due to various supply chain challenges, recent elevated levels of cost inflation, increased overheads, and higher interest rates on vehicle financing. This assessment covers a period of at least 12 months from the date of the audit report.
The Group is in a strong position giving the Directors a confident expectation that the Group has adequate resources to continue in operational existence for the foreseeable future and that it is able to face future challenges. As such the Directors are satisfied that the Group remains a going concern and the financial statements have been prepared on the going concern basis.

Page 21

 
GLOBAL AUTOCARE HOLDING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2024

2.Accounting policies (continued)

 
2.5

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the Group has transferred the significant risks and rewards of ownership to the buyer;
the Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the Group will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of revenue can be measured reliably;
it is probable that the Group will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

 
2.6

Operating leases: the Group as lessor

Rental income from operating leases is credited to profit or loss on a straight line basis over the lease term.

Amounts paid and payable as an incentive to sign an operating lease are recognised as a reduction to income over the lease term on a straight line basis, unless another systematic basis is representative of the time pattern over which the lessor's benefit from the leased asset is diminished.

 
2.7

Operating leases: the Group as lessee

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

Page 22

 
GLOBAL AUTOCARE HOLDING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2024

2.Accounting policies (continued)

 
2.8

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.9

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.10

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

  
2.11

Pensions

Defined contribution pension plan
The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate pension fund. Once the contributions have been paid the Group has no further payment obligations.
The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in other creditors as a liability in the statement of financial position. The assets of the plan are held separately from the Group in independently administered funds.

 
2.12

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company and the Group operate and generate income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the Statement of Financial Position date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits;
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and
Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.

Page 23

 
GLOBAL AUTOCARE HOLDING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2024

2.Accounting policies (continued)


2.12
Current and deferred taxation (continued)

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

  
2.13

Intangible assets

Goodwill
Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer's interest in the fair value of the Group's share of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight line basis to the consolidated statement of comprehensive income over its useful economic life of 10 years. 

 
2.14

Exceptional items

Exceptional items are transactions that fall within the ordinary activities of the Group but are presented separately due to their size or incidence.

 
2.15

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method or the reducing balance basis.

Depreciation is provided on the following basis:

Freehold property
-
2% straight line
L/Term Leasehold Property
-
2% straight line
Plant, machinery, fixtures & fittings
-
15% reducing balance
Contract hire fleet
-
20% reducing balance
Daily rental fleet
-
15% reducing balance

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

Page 24

 
GLOBAL AUTOCARE HOLDING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2024

2.Accounting policies (continued)

 
2.16

Impairment of fixed assets and goodwill

Assets that are subject to depreciation or amortisation are assessed at each reporting date to determine whether there is any indication that the assets are impaired. Where there is any indication that an asset may be impaired, the carrying value of the asset (or cash-generating unit to which the asset has been allocated) is tested for impairment. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's (or CGU's) fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (CGUs). Non-financial assets that have been previously impaired are reviewed at each reporting date to assess whether there is any indication that the impairment losses recognised in prior periods may no longer exist or may have decreased.

 
2.17

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

  
2.18

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on an individual item basis. 
At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

 
2.19

Debtors

Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.20

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Consolidated Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.

 
2.21

Creditors

Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Page 25

 
GLOBAL AUTOCARE HOLDING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2024

2.Accounting policies (continued)

 
2.22

Provisions for liabilities

Provisions are made where an event has taken place that gives the Group a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the Group becomes aware of the obligation, and are measured at the best estimate at the Statement of Financial Position date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Statement of Financial Position.

 
2.23

Financial instruments

The Group has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

The Group has elected to apply the recognition and measurement provisions of IFRS 9 Financial Instruments (as adopted by the UK Endorsement Board) with the disclosure requirements of Sections 11 and 12 and the other presentation requirements of FRS 102.

Financial instruments are recognised in the Group's Statement of Financial Position when the Group becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Discounting is omitted where the effect of discounting is immaterial. The Group's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

Other financial assets

Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.

Page 26

 
GLOBAL AUTOCARE HOLDING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2024

2.Accounting policies (continued)


2.23
Financial instruments (continued)

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting date. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

Financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instruments any contract that evidences a residual interest in the assets of the Group after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other payables, bank loans, other loans and loans due to fellow group companies are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.

Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

Other financial instruments

Derivatives, including forward exchange contracts, futures contracts and interest rate swaps, are not classified as basic financial instruments. These are initially recognised at fair value on the date the derivative contract is entered into, with costs being charged to the profit or loss. They are subsequently measured at fair value with changes in the profit or loss.

Debt instruments that do not meet the conditions as set out in FRS 102 paragraph 11.9 are subsequently measured at fair value through the profit or loss. This recognition and measurement would also apply to financial instruments where the performance is evaluated on a fair value basis as with a documented risk management or investment strategy.

Page 27

 
GLOBAL AUTOCARE HOLDING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2024

2.Accounting policies (continued)


2.23
Financial instruments (continued)

Derecognition of financial instruments

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Group transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Group will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

Financial liabilities are derecognised when the Group's contractual obligations expire or are discharged or cancelled.


3.


Judgements in applying accounting policies and key sources of estimation uncertainty

The key assumptions concerning the future, and other key sources of estimation uncertainty surrounding the carrying amounts of assets and liabilities within the next financial year are discussed below.
(i) Estimated remaining useful life of tangible fixed assets
The annual depreciation charge for tangible assets and their carrying amount is determined by the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually and amended where necessary to reflect current estimates based on technological advancement, future investments, economic utilisation and the physical condition of the assets.
The carrying value of the assets at the year end is £185,787,295 (2023 - £178,251,211). The depreciation charge for the year is £30,301,160 (2023 - £26,521,076).
(ii) Impairment charge relating to tangible fixed assets
The Group reviews the carrying amounts of its tangible fixed assets annually, or more frequently if events or changes in circumstances indicate that the carrying amount may not be recoverable. When such indicators are present, an impairment test is performed to determine whether the carrying value of the asset exceeds its recoverable amount. An impairment loss is recognised immediately through the statement of comprehensive income if the carrying amount of the asset exceeds its recoverable amount, with recoverable amount being the higher of fair value less costs to sell and value in use.
The assessment involves significant judgment and estimates made by management. The key sources of management uncertainty in relation to the impairment of tangible fixed assets include:
Assessment of indicators of impairment
Evaluating whether any indicators of impairment exist at the reporting date. Indicators may include significant declines in market value, adverse changes in the technological, market, economic, or legal environment, or evidence of obsolescence or physical damage.
 
Page 28

 
GLOBAL AUTOCARE HOLDING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2024

3.Judgments in applying accounting policies (continued)

Estimation of future cash flows
Estimating future cash flows expected to arise from the continuing use of the asset and from its disposal. These estimates involve assumptions about future events, including market conditions, competition, and anticipated revenue growth, and cost structures.
Determination of discount rates
Estimating the appropriate discount rate for calculating the value in use of the asset, which reflects the time value of money and the risks specific to the asset. The selection of discount rates requires judgment and involves assumptions about economic conditions and risks.
Fair value estimations
Estimating the fair value of the asset less costs to sell, which may involve the use of valuation techniques, such as market comparables or discounted cash flow models. This process involves judgment in selecting valuation methodologies and in estimating key inputs and assumptions.
Changes in any of these key assumptions and estimates could significantly impact the determination of recoverable amounts and the amount of impairment losses recognised. Management continually reviews these assumptions and estimates and adjusts them as necessary to reflect actual experience and market conditions.
The impairment charge recognised in relation to tangible fixed assets during the year was £7,249,421 (2023 - NIL).


4.


Turnover

An analysis of turnover by class of business is as follows:


2024
2023
£
£

Contract hire and daily rental income
59,311,172
51,659,869

Sale of goods
7,096,810
7,341,003

66,407,982
59,000,872


All turnover arose within the United Kingdom.

Page 29

 
GLOBAL AUTOCARE HOLDING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2024

5.


Exceptional items

2024
2023
£
£


Impairment of tangible assets
7,249,421
-

The exceptional costs relate to the impairment of electric vehicles where expected recoverable amount is lower than the carrying value. See note 15.


6.


Other operating income

2024
2023
£
£

Rental income
44,190
38,898



7.


Operating profit

The operating profit is stated after charging/(crediting):

2024
2023
£
£

Depreciation of tangible fixed assets (charged to cost of sales)
30,032,447
26,252,675

Depreciation of tangible fixed assets (charged to administrative expenses)
268,713
268,402

Amortisation of goodwill
3,281,328
3,281,328

Profit on disposal of tangible assets
(10,279,692)
(21,650,627)

Defined contribution pension cost
129,707
111,633

Impairment of tangible fixed assets
7,249,421
-


8.


Auditor's remuneration

2024
2023
£
£


Fees payable to the Group's auditor for the audit of the Group's annual financial statements
60,585
57,700


Fees payable to the Group's auditor in respect of:


Taxation compliance services
11,025
10,500

All other services
8,290
7,900

19,315
18,400

Page 30

 
GLOBAL AUTOCARE HOLDING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2024

9.


Employees

Staff costs, including Directors' remuneration, were as follows:


Group
Group
2024
2023
£
£


Wages and salaries
4,434,088
4,364,018

Social security costs
486,003
477,846

Cost of defined contribution scheme
129,707
111,633

5,049,798
4,953,497


The average monthly number of employees, including the Directors, during the year was as follows:


        2024
        2023
            No.
            No.







Directors
4
5



Production
45
34



Administration
67
67

116
106

The Company has no employees other than the Directors.

10.


Directors' remuneration

2024
2023
£
£

Directors' emoluments
1,000,698
1,056,405

Company contributions to defined contribution pension schemes
35,868
33,322

1,036,566
1,089,727


During the year retirement benefits were accruing to 3 Directors (2023 - 3) in respect of defined contribution pension schemes.

The highest paid Director received remuneration of £440,000 (2023 - £440,000).

The value of the Company's contributions paid to a defined contribution pension scheme in respect of the highest paid Director amounted to £NIL (2023 - £NIL).

Page 31

 
GLOBAL AUTOCARE HOLDING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2024

11.


Interest receivable

2024
2023
£
£


Other interest receivable
229,100
47,523


12.


Interest payable and similar expenses

2024
2023
£
£


Bank interest payable
506,933
295,887

Other loan interest payable
1,415,606
2,338,439

Finance leases and hire purchase contracts
11,114,254
5,973,804

Interest on overdue tax
6,273
(31,117)

13,043,066
8,577,013


13.


Taxation


2024
2023
£
£

Corporation tax


Current tax on profits for the year
2,783,344
4,126,143

Adjustments in respect of previous periods
(1,125,415)
70,763


1,657,929
4,196,906


Total current tax
1,657,929
4,196,906

Deferred tax


Origination and reversal of timing differences
(2,273,313)
1,755,601

Total deferred tax
(2,273,313)
1,755,601


Tax on profit
(615,384)
5,952,507
Page 32

 
GLOBAL AUTOCARE HOLDING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2024
 
13.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is higher than (2023 - higher than) the standard rate of corporation tax in the UK of 24.49% (2023 - 19%). The differences are explained below:

2024
2023
£
£


Profit on ordinary activities before tax
2,677,901
22,895,522


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 24.49% (2023 - 19%)
655,818
4,350,149

Effects of:


Fixed asset ineligible depreciation
49,943
29,020

Expenses not deductible for tax purposes
6,835
107,848

Goodwill amortisation on consolidation not taxable in company
803,465
623,452

Adjustment to brought forward values
361,525
1,549,462

Other tax effects for reconciliation between accounting profits
(433,127)
(1,704,020)

Adjustments to tax charge in respect of prior periods
(1,125,415)
70,763

Adjustment to deferred tax rates
(22,193)
286,734

Chargeable gains
71,609
54,475

Movement in deferred tax not recognised
(1,210,186)
584,624

Transfer pricing adjustments
226,342
-

Total tax charge for the year
(615,384)
5,952,507


Factors that may affect future tax charges

From 1 April 2023, the rate of corporation tax in the United Kingdom increased from 19% to 25%. Companies with profits of £50,000 or less will continue to be taxed at 19%, which is a new small profits rate. Where taxable profits are between £50,000 and £250,000, the higher 25% rate will apply but with a marginal relief applying as profits increase.

Page 33

 
GLOBAL AUTOCARE HOLDING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2024

14.


Intangible assets

Group





Goodwill

£



Cost


At 1 March 2023
32,813,288



At 28 February 2024

32,813,288



Amortisation


At 1 March 2023
10,500,250


Charge for the year
3,281,328



At 28 February 2024

13,781,578



Net book value



At 28 February 2024
19,031,710



At 28 February 2023
22,313,038



Page 34

 
GLOBAL AUTOCARE HOLDING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2024

15.


Tangible fixed assets

Group






Freehold property
L/Term leasehold property
Plant, equipment fixtures and fittings
Contract hire fleet
Daily rental fleet
Total

£
£
£
£
£
£



Cost or valuation


At 1 March 2023
7,366,748
6,126,291
960,562
35,121,678
160,579,741
210,155,020


Additions
-
-
62,097
22,607,359
123,005,687
145,675,143


Disposals
-
-
-
(12,837,117)
(112,422,657)
(125,259,774)


Transfers between classes
-
-
-
8,597,230
(9,307,453)
(710,223)



At 28 February 2024

7,366,748
6,126,291
1,022,659
53,489,150
161,855,318
229,860,166



Depreciation


At 1 March 2023
647,769
759,023
552,031
8,893,966
21,051,020
31,903,809


Charge for the year
113,388
90,528
64,796
7,470,319
22,562,129
30,301,160


Disposals
-
-
-
(5,426,761)
(19,244,535)
(24,671,296)


Transfers between classes
-
-
-
(199,240)
(510,983)
(710,223)


Impairment charge
-
-
-
1,752,008
5,497,413
7,249,421



At 28 February 2024

761,157
849,551
616,827
12,490,292
29,355,044
44,072,871



Net book value



At 28 February 2024
6,605,591
5,276,740
405,832
40,998,858
132,500,274
185,787,295



At 28 February 2023
6,718,979
5,367,268
408,531
26,227,712
139,528,721
178,251,211

See note 5 for further details on the impairment charge.

Page 35

 
GLOBAL AUTOCARE HOLDING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2024

           15.Tangible fixed assets (continued)

The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:


2024
2023
£
£



Contract Hire Fleet
36,454,284
24,111,019

Daily Rental Fleet
116,817,112
133,120,070

153,271,396
157,231,089


16.


Fixed asset investments

Company





Investments in subsidiary companies

£



Cost


At 1 March 2023
49,052,936



At 28 February 2024
49,052,936





Subsidiary undertaking


The following was a subsidiary undertaking of the Company:

Name

Registered office

Class of shares

Holding

Global Autocare Limited
The registered office of the subsidiary is the same as the parent undertaking.
Ordinary
100%

Page 36

 
GLOBAL AUTOCARE HOLDING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2024

17.


Stocks

Group
Group
2024
2023
£
£

Finished goods and goods for resale
-
1,585,128


The cost of stocks recognised as an expense in the year amounted to £6,802,525 (2023 - £6,268,594).


18.


Debtors

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£


Trade debtors
3,105,236
2,709,248
-
-

Other debtors
632,801
598,204
-
-

Prepayments and accrued income
1,443,009
1,695,705
149,529
140,164

Tax recoverable
1,663,488
1,127,417
-
-

Deferred taxation
-
-
1,198,820
-

6,844,534
6,130,574
1,348,349
140,164


The amounts owed by group undertakings are unsecured and repayable on demand.


19.


Cash and cash equivalents

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Cash at bank and in hand
7,675,845
15,731,897
17,665
86,658


Page 37

 
GLOBAL AUTOCARE HOLDING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2024

20.


Creditors: Amounts falling due within one year

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Bank loans
7,381,661
686,668
7,381,661
686,668

Trade creditors
1,660,456
287,262
19,280
16,541

Amounts owed to group undertakings
-
-
204,804
583,242

Corporation tax
-
23,632
-
23,632

Other taxation and social security
3,837,993
4,180,901
28,143
27,763

Obligations under finance lease and hire purchase contracts
117,019,003
124,813,942
-
-

Other creditors
73,171
88,604
-
-

Accruals and deferred income
4,745,944
5,088,284
733,005
884,017

134,718,228
135,169,293
8,366,893
2,221,863



The following liabilities were secured:
Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Bank loans
7,381,661
686,668
-
686,668

Obligations under finance lease and hire purchase contracts
117,019,003
124,813,942
-
-

124,400,664
125,500,610
-
686,668

Details of security provided:

The bank loans are secured by a fixed and floating charge over all assets owned, not financed by a finance lease.
The finance lease liabilities are secured on the assets to which they relate. 
The amounts owed to group undertakings are unsecured and repayable on demand.

Page 38

 
GLOBAL AUTOCARE HOLDING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2024

21.


Creditors: Amounts falling due after more than one year

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Bank loans
-
7,381,661
-
7,381,661

Other loans
11,604,549
15,686,154
11,604,549
15,686,154

Net obligations under finance leases and hire purchase contracts
38,698,302
32,476,407
-
-

50,302,851
55,544,222
11,604,549
23,067,815



The following liabilities were secured:
Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£


Bank loans
-
7,381,661
7,381,661
7,381,661

Other loans
3,114,169
4,698,028
-
4,698,028

Net obligations under finance leases and hire purchase contracts
38,698,302
32,476,407
-
-

41,812,471
44,556,096
7,381,661
12,079,689

Details of security provided:

The bank loans are secured by a fixed and floating charge over all assets owned. 
The finance lease liabilities are secured on the assets to which they relate. 
The other loans are secured by a fixed and floating charge over all assets owned. 

Page 39

 
GLOBAL AUTOCARE HOLDING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2024

22.


Loans



Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Amounts falling due within one year

Bank loans
7,381,661
686,668
7,381,661
686,668

Amounts falling due 1-2 years

Bank loans
-
7,381,661
-
7,381,661

Other loans
11,604,549
15,686,154
11,604,549
15,686,154


11,604,549
23,067,815
11,604,549
23,067,815



18,986,210
23,754,483
18,986,210
23,754,483



23.


Hire purchase and finance leases


Minimum lease payments under hire purchase fall due as follows:

Group
Group
2024
2023
£
£

Within one year
117,019,003
124,813,942

Between 1-5 years
38,698,302
32,476,407

155,717,305
157,290,349

Page 40

 
GLOBAL AUTOCARE HOLDING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2024

24.


Deferred taxation


Group



2024
2023


£

£






At beginning of year
(4,495,641)
(2,740,040)


Charged to profit or loss
2,273,313
(1,755,601)



At end of year
(2,222,328)
(4,495,641)

Company


2024


£






Charged to profit or loss
1,198,820



At end of year
1,198,820

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Short term timing differences
1,200,926
4,278
1,198,820
-

Fixed asset timing differences
(3,335,006)
(4,411,671)
-
-

Capital gains
(88,248)
(88,248)
-
-

(2,222,328)
(4,495,641)
1,198,820
-


25.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



405,000 (2023 - 405,000) A Ordinary shares of £0.01 each
4,050
4,050
370,000 (2023 - 370,000) B Ordinary shares of £0.01 each
3,700
3,700
200,000 (2023 - 200,000) C Ordinary shares of £0.01 each
2,000
2,000
25,000 (2023 - 25,000) D Ordinary shares of £0.01 each
250
250

10,000

10,000

The shares above rank pari passu and have equal voting rights.

Page 41

 
GLOBAL AUTOCARE HOLDING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2024

26.


Reserves

Share premium account

Share premium is the value paid in excess of the face value of the shares. 

Profit & loss account

Includes all current and prior periods retained profits and losses.

27.


Analysis of net debt







At 1 March 2023
Cash flows
Repayment of bank/ other loans
New finance leases and loans
Other non-cash changes
At 28 February 2024
£

£

£

£

£

£

Cash at bank and in hand

15,731,897

(8,056,052)

-

-

-

7,675,845

Debt due after 1 year

(23,067,815)

-

5,690,415

-

5,772,851

(11,604,549)

Debt due within 1 year

(686,668)

-

686,668

-

(7,381,661)

(7,381,661)

Finance leases

(157,290,349)

-

-

176,323,996

(174,750,952)

(155,717,305)


(165,312,935)
(8,056,052)
6,377,083
176,323,996
(176,359,762)
(167,027,670)


28.


Pension commitments

The Group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Group in an independently administered fund. The pension cost charge represents contributions payable by the Group to the fund and amounted to £129,707 (2023 - £111,633). 

Page 42

 
GLOBAL AUTOCARE HOLDING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2024

29.


Commitments under operating leases

At 28 February 2024 the Group and the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:


Group
Group
2024
2023
£
£
Operating leases - lessee



Not later than 1 year
1,711
1,675

The amount of non-cancellable operating lease payments recognised as an expense during the year was £2,727 (2023 - £2,786).

Operating leases - lessor


Group
Group
2024
2023
£
£

Not later than 1 year
12,695,985
6,471,574

Later than 1 year and not later than 5 years
17,812,460
7,747,445

30,508,445
14,219,019

Total lease income recognised as turnover in the period is £9,367,042 (2023 - £7,142,528).


30.


Related party transactions

Transactions with key management personnel
During the year, the key management personnel purchased goods to the value of £272,472 (2023: £456,802) inclusive of VAT and sold goods to the Group of £290,522 (2023: £598,182).
At the year end, the balances outstanding with key management personnel and the Group was £23,509 (2023: £41,560).
Transactions with other related parties
During the year, other related parties purchased goods and services to the value of £2,501,589 (2023: £2,500,598) inclusive of VAT and sold goods to the Group of £240,036 (2023: £543,118).
At the year end, the balances outstanding with other related parties was £85,258 (2023: £55,860).


31.


Controlling party

There is no ultimate controlling party. 

 
Page 43