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Global Autocare Limited

Registered number: 03311652
Annual report and
 financial statements
For the year ended 28 February 2024

 
GLOBAL AUTOCARE LIMITED
 
 
COMPANY INFORMATION


Directors
G N Bloore 
D J Sadler 




Company secretary
D J Sadler



Registered number
03311652



Registered office
The Hub
Gelderd Lane

Leeds

West Yorkshire

LS12 6AL




Independent auditor
Forvis Mazars LLP
Chartered Accountants & Statutory Auditor

5th Floor

3 Wellington Place

Leeds

LS1 4AP





 
GLOBAL AUTOCARE LIMITED
 

CONTENTS



Page
Strategic Report
 
1 - 3
Directors' Report
 
4 - 7
Independent Auditor's Report
 
8 - 11
Statement of Comprehensive Income
 
12
Statement of Financial Position
 
13
Statement of Changes in Equity
 
14
Statement of Cash Flows
 
15 - 16
Notes to the Financial Statements
 
17 - 37

 
GLOBAL AUTOCARE LIMITED
 
 
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 £15,623,774 (2023 - £30,236,478) and The Statement of Financial Position on page 13 of the financial statements shows that the Company’s financial position, in terms of net assets remains strong. 
The Company 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 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.

Principal risks and uncertainties
 
Competitive pressure and the motor vehicle financing policies of its major clients are the principal risks to the business. The 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 Company 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 Company will benefit from any reductions in the UK bank base rate as this will result in direct savings in fleet hire purchase interest costs.
 
- 1 -

 
GLOBAL AUTOCARE LIMITED
 

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 Company to act in the way that would be most likely to promote the success of the Company 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 Company’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 Company intranet site is used to provide a wide range of useful information such as policies and Company 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.
 
- 2 -

 
GLOBAL AUTOCARE LIMITED
 

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
- 3 -

 
GLOBAL AUTOCARE 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 Strategic Report, the Directors' Report 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 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 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 for the Company'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 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 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 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 £7,417,185 (2023 - £24,061,571).

Dividend payments for the year amounted to £7,300,000 (2023 - £12,300,000).

Directors

The Directors who served during the year were:

G N Bloore 
D J Sadler 
- 4 -

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

Going concern
The Company'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 Company's objectives, policies and procedures for managing capital; its financial risk management objectives and its exposure to credit risk and liquidity.
The Company has sufficient financial resources together with clearly defined performance objectives. As a consequence, the Directors believe that the Company is well placed to manage its business risks successfully despite the current economic outlook.
The Directors of the Company 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 Company is in a strong position giving the Directors a confident expectation that the Company 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 Company remains a going concern and the financial statements have been prepared on the going concern basis.

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 Company 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.
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).
 
- 5 -

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

Energy consumption and GHG Emissions
 

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 Emisions (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 Company’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 Company’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 Company 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.
 
- 6 -

 
GLOBAL AUTOCARE 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 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'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's auditor is aware of that information.

Post balance sheet events

Dividends of £6,600,000 were declared post year end.

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
- 7 -

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

Opinion

We have audited the financial statements of Global Autocare Limited (the ‘Company’) for the year ended 28 February 2024 which comprise the Statement of Comprehensive Income, the Statement of Financial Position, the Statement of Cash Flows, the 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 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 Company’s affairs as at 28 February 2024 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 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 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.
- 8 -

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

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 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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 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, 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.
- 9 -

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

Responsibilities of Directors

As explained more fully in the Directors' Responsibilities Statement set out on page 4, 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 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 either the directors intend to liquidate the 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 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, 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 UK tax legislation and the Companies Act 2006. 

In addition, we evaluated the directors’ and management’s incentives and opportunities for fraudulent manipulation of the financial statements, including the risk of override of controls, and determined that the principal risks were 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. 
- 10 -

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

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
- 11 -

 
GLOBAL AUTOCARE LIMITED
 
 
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
  
(34,424,183)
(17,451,797)

Gross profit
  
31,983,799
41,549,075

Administrative expenses
  
(5,512,943)
(5,456,391)

Other operating income
 6 
44,190
38,898

Operating profit before exceptional administrative expenses
 7 
26,515,046
36,131,582

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

Operating profit after exceptional administrative expenses
  
19,265,625
36,131,582

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

Interest payable and similar expenses
 12 
(11,120,372)
(5,942,627)

Profit before tax
  
8,374,353
30,236,478

Tax on profit
 13 
(957,168)
(6,174,907)

Profit for the financial year
  
7,417,185
24,061,571

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

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

The notes on pages 17 to 37 form part of these financial statements.
- 12 -

 
GLOBAL AUTOCARE LIMITED
REGISTERED NUMBER: 03311652

STATEMENT OF FINANCIAL POSITION
AS AT 28 FEBRUARY 2024

2024
2023
Note
£
£

  

Fixed assets
  

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

Current assets
  

Stocks
 16 
-
1,585,128

Debtors: amounts falling due within one year
 17 
7,048,150
6,713,354

Cash at bank and in hand
 18 
7,658,180
15,645,239

  
14,706,330
23,943,721

Creditors: amounts falling due within one year
 19 
(126,704,480)
(133,670,374)

Net current liabilities
  
 
 
(111,998,150)
 
 
(109,726,653)

Total assets less current liabilities
  
73,789,145
68,524,558

  

Creditors: amounts falling due after more than one year
 20 
(38,698,302)
(32,476,407)

  
35,090,843
36,048,151

Provisions for liabilities
  

Deferred taxation
 22 
(3,421,148)
(4,495,641)

  

Net assets
  
31,669,695
31,552,510


Capital and reserves
  

Called up share capital 
 23 
115
115

Revaluation reserve
 24 
878,487
899,403

Capital redemption reserve
 24 
85
85

Profit and loss account
 24 
30,791,008
30,652,907

  
31,669,695
31,552,510


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

- 13 -

 
GLOBAL AUTOCARE LIMITED
 

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


Called up share capital
Capital redemption reserve
Revaluation reserve
Profit and loss account
Total equity

£
£
£
£
£


At 1 March 2022
115
85
920,319
18,870,420
19,790,939


Comprehensive income for the year

Profit for the year
-
-
-
24,061,571
24,061,571
Total comprehensive income for the year
-
-
-
24,061,571
24,061,571


Contributions by and distributions to owners

Dividends: Equity capital
-
-
-
(12,300,000)
(12,300,000)

Revaluation reserve transfer
-
-
(20,916)
20,916
-


Total transactions with owners
-
-
(20,916)
(12,279,084)
(12,300,000)



At 1 March 2023
115
85
899,403
30,652,907
31,552,510


Comprehensive income for the year

Profit for the year
-
-
-
7,417,185
7,417,185
Total comprehensive income for the year
-
-
-
7,417,185
7,417,185


Contributions by and distributions to owners

Dividends: Equity capital
-
-
-
(7,300,000)
(7,300,000)

Revaluation reserve transfer
-
-
(20,916)
20,916
-


Total transactions with owners
-
-
(20,916)
(7,279,084)
(7,300,000)


At 28 February 2024
115
85
878,487
30,791,008
31,669,695
- 14 -

 
GLOBAL AUTOCARE LIMITED
 

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 28 FEBRUARY 2024

2024
2023
£
£

Cash flows from operating activities

Profit for the financial year
7,417,185
24,061,571

Adjustments for:

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

Impairments of tangible assets
7,249,421
-

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

Interest paid
11,120,372
5,942,627

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

Taxation charge
957,168
6,174,907

Decrease in stocks
1,585,128
198,303

Decrease in debtors
513,588
373,443

Decrease/(increase) in amounts owed by groups
378,438
(203,290)

(Decrease)/increase in creditors
(136,641)
1,935,085

Corporation tax (paid)
(2,194,000)
(4,732,589)

Net cash generated from operating activities

46,683,027
38,576,514


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)
- 15 -

 
GLOBAL AUTOCARE LIMITED
 

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


2024
2023

£
£



Cash flows from financing activities

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

Repayment of finance leases
(177,897,040)
(153,244,684)

Dividends paid
(7,300,000)
(12,300,000)

Interest paid
(11,091,748)
(5,976,132)

Net cash used in financing activities
(19,964,792)
20,511,884

Net (decrease)/increase in cash and cash equivalents
(7,987,059)
8,572,772

Cash and cash equivalents at beginning of year
15,645,239
7,072,467

Cash and cash equivalents at the end of year
7,658,180
15,645,239


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
7,658,180
15,645,239

7,658,180
15,645,239


The notes on pages 17 to 37 form part of these financial statements.

- 16 -

 
GLOBAL AUTOCARE 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 03311652.
The address of its registered office is:
The Hub
Gelderd Lane
Leeds
LS12 6AL

The principal activities of the Company 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 management to exercise judgment in applying the Company's accounting policies (see note 3).

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

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 the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
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.

This information is included in the consolidated financial statements of Global Autocare Holding Limited as at 28 February 2024 and these financial statements may be obtained from Companies House.

- 17 -

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

2.Accounting policies (continued)

 
2.3

Going concern

The Company'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 Company's objectives, policies and procedures for managing capital; its financial risk management objectives and its exposure to credit risk and liquidity.
The Company has sufficient financial resources together with clearly defined performance objectives. As a consequence, the Directors believe that the Company is well placed to manage its business risks successfully despite the current economic outlook.
The Directors of the Company 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 Company is in a strong position giving the Directors a confident expectation that the Company 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 Company remains a going concern and the financial statements have been prepared on the going concern basis.

 
2.4

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company 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 Company has transferred the significant risks and rewards of ownership to the buyer;
the Company 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 Company 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 Company 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.

- 18 -

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

2.Accounting policies (continued)

 
2.5

Operating leases: the Company 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.

 
2.6

Operating leases: the Company 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.

 
2.7

Interest income

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

 
2.8

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.

 
2.9

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate pension fund. Once the contributions have been paid the Company 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 Company in independently administered funds.

- 19 -

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

2.Accounting policies (continued)

 
2.10

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 operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting 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; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

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.

 
2.11

Exceptional items

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

 
2.12

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.

- 20 -

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

2.Accounting policies (continued)


2.12
Tangible fixed assets (continued)

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, equipment, 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.

 
2.13

Revaluation of tangible fixed assets

Individual freehold and leasehold properties are carried at current year value at fair value at the date of the revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Revaluations are undertaken with sufficient regularity to ensure the carrying amount does not differ materially from that which would be determined using fair value at the reporting date.
Fair values are determined from market based evidence normally undertaken by professionally qualified valuers.

Revaluation gains and losses are recognised in other comprehensive income unless losses exceed the previously recognised gains or reflect a clear consumption of economic benefits, in which case the excess losses are recognised in profit or loss.

 
2.14

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.

- 21 -

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

2.Accounting policies (continued)

 
2.15

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 a individual item basis. Work in progress and finished goods include labour and attributable overheads.

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.

 
2.16

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.

 
2.17

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 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 Company's cash management.

 
2.18

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.

 
2.19

Provisions for liabilities

Provisions are made where an event has taken place that gives the Company 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 Company becomes aware of the obligation, and are measured at the best estimate at the reporting 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.
- 22 -

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

2.Accounting policies (continued)

 
2.20

Financial instruments

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

The Company 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 Company's Statement of Financial Position when the Company 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 Company'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.

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.
 
- 23 -

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

2.Accounting policies (continued)


2.20
Financial instruments (continued)


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 Company after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other payables, bank loans and other loans 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.
 
- 24 -

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

2.Accounting policies (continued)


2.20
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 Company 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 Company 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 Company's contractual obligations expire or are discharged or cancelled.

 
2.21

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

- 25 -

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

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 - £26,521,077). 
(ii) Impairment charge relating to tangible fixed assets
The Company 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.
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.
 
- 26 -

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

3.Judgments in applying accounting policies (continued)

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, daily rentals and other services
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.


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


- 27 -

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

7.


Operating profit

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

2024
2023
£
£

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

Defined contribution pension cost
93,839
78,311

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

Impairment of tangible fixed assets
7,249,421
-


8.


Auditor's remuneration

2024
2023
£
£

Fees payable to the Company's auditor for the audit of the Company's financial statements

50,600
48,200
The Company has taken advantage of the exemption not to disclose amounts paid for non-audit services as these are disclosed in the consolidated financial statements of the parent Company.


9.


Employee numbers




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


        2024
        2023
            No.
            No.







Production
45
34



Administration
67
67

112
101

- 28 -

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

10.


Employee costs

Staff costs were as follows:

2024
2023
£
£
Wages and salaries

3,417,563

3,295,394

Social security costs

342,145

323,607

Cost of defined contribution scheme

93,839

78,311

3,853,547

3,697,312



11.


Interest receivable

2024
2023
£
£


Other interest receivable
229,100
47,523


12.


Interest payable and similar expenses

2024
2023
£
£


Other interest payable
6,118
(31,177)

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

11,120,372
5,942,627

- 29 -

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

13.


Taxation


2024
2023
£
£

Corporation tax


Current tax on profits for the year
3,157,076
4,348,543

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


Total current tax
2,031,661
4,419,306

Deferred tax


Origination and reversal of timing differences
(1,074,493)
1,755,601

Total deferred tax
(1,074,493)
1,755,601


Taxation on profit on ordinary activities
957,168
6,174,907

Factors affecting tax charge for the year

The tax assessed for the year is lower 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
8,374,353
30,236,478


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 24.49% (2023 - 19%)
2,050,879
5,744,931

Effects of:


Fixed asset ineligible depreciation
49,943
29,020

Expenses not deductible for tax purposes
4,267
3,233

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

Other tax adjustment, reliefs and transfers
(433,127)
(1,704,021)

Group relief claimed
(373,732)
(222,400)

Payment for group relief
373,732
222,400

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

Adjustment to deferred tax rates
(22,513)
427,044

Chargeable gains
71,609
54,475

Total tax charge for the year
957,168
6,174,907

- 30 -

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


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.


14.


Dividends

2024
2023
£
£


Ordinary dividends declared
7,300,000
12,300,000

- 31 -

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

15.


Tangible fixed assets





Freehold property
L/Term leasehold property
Plant & machinery and Fixtures & Fittings
Contract hire fleet
Daily rental hire 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. 
- 32 -

 
GLOBAL AUTOCARE 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


The fair value of the Company's long leasehold land and buildings was revalued on 29 February 2016 by an independent valuer.
The long leasehold land and buildings were revalued at their open market value by Michael Steel & Co Chartered Surveyors.
If the land and buildings had not been included at valuation the carrying amount would have been £4,229,973 (2023 - £4,320,501). 


16.


Stocks

2024
2023
£
£

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).

- 33 -

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

17.


Debtors

2024
2023
£
£


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

Amounts owed by group undertakings
204,804
583,242

Other debtors
632,801
598,204

Prepayments and accrued income
1,441,821
1,695,243

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

7,048,150
6,713,354


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


18.


Cash and cash equivalents

2024
2023
£
£

Cash at bank and in hand
7,658,180
15,645,239



19.


Creditors: Amounts falling due within one year

2024
2023
£
£

Trade creditors
1,641,176
270,721

Other taxation and social security
3,809,850
4,153,138

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

Other creditors
73,171
88,604

Accruals and deferred income
4,161,280
4,343,969

126,704,480
133,670,374


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


20.


Creditors: Amounts falling due after more than one year

2024
2023
£
£

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


- 34 -

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

21.


Hire purchase and finance leases


Minimum lease payments under hire purchase fall due as follows:

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


22.


Deferred taxation




2024
2023


£

£






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


Charged to profit or loss
1,074,493
(1,755,601)



At end of year
(3,421,148)
(4,495,641)

The provision for deferred taxation is made up as follows:

2024
2023
£
£


Short term timing differences
2,106
4,278

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

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

(3,421,148)
(4,495,641)


23.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



11,500 (2023 - 11,500) Ordinary shares of £0.01 each
115
115


- 35 -

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

24.


Reserves

Revaluation reserve

Includes all revaluations of fixed and current asset classes recognised at their market value.

Capital redemption reserve

Arising from purchase of shares.

Profit & loss account

Includes all current and prior periods retained profits and losses.


25.


Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £93,839 (2023 - £78,311).


26.


Commitments under operating leases

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

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).

2024
2023

£
£
Operating leases - lessor




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).

- 36 -

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

27.


Related party transactions

The Company has taken the available exemption under FRS 102 Section 33 not to disclose transactions and balances with other members of the Group on the grounds that consolidated financial statements are prepared by the ultimate parent company. Copies of the consolidated financial statements of Global Autocare Holding Limited can be obtained from Companies House.
Transactions with key management personnel
During the year, key management personnel purchased goods to the value of £272,472 (2023 - £456,802) inclusive of VAT and sold goods to Global Autocare Limited of £290,522 (2023 - £598,182).
At the year end, the balances outstanding with key management personnel and Global Autocare Limited 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 Global Autocare Limited of £240,036 (2023 - £543,118). 
At the year end, the balances outstanding with other related parties was £85,258 (2023 - £55,860).


28.


Post balance sheet events

Dividends of £6,600,000 were declared post year end.


29.


Controlling party

The Company's immediate and ultimate parent company is Global Autocare Holding Limited, incorporated in England & Wales.
There is no ultimate controlling party.
 
- 37 -