Company Registration No. 03326062 (England and Wales)
REDLINE SPECIALIST CARS LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 DECEMBER 2023
6 Queen Street
Leeds
West Yorkshire
LS1 2TW
REDLINE SPECIALIST CARS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Directors' responsibilities statement
5
Independent auditor's report
6 - 9
Profit and loss account
10
Balance sheet
11
Statement of changes in equity
12
Notes to the financial statements
13 - 24
REDLINE SPECIALIST CARS LIMITED
COMPANY INFORMATION
Directors
J R D Graeme
R L Milner
Company number
03326062
Registered office
Grimbald Crag Close
St James Business Park
Knaresborough
North Yorkshire
England
HG5 8PY
Auditor
TC Group
6 Queen Street
Leeds
West Yorkshire
LS1 2TW
REDLINE SPECIALIST CARS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

The directors present the strategic report for the year ended 31 December 2023.

 

Principal activity

The principal activity of the company is the sale of used cars.

Fair review of the business

The Directors are satisfied with the volume of cars sold but disappointed with the financial results for the year. Like all in the industry the economic conditions led to costs increasing at a faster pace than expected, impacting on gross margin and finance costs. Measures have been put in place to ensure a return to profit in 2024 while maintaining our position as one of UK's leading independent specialists in supercars, prestige vehicles and high performance cars.

Principal risks and uncertainties

The principal risks and uncertainties within the Company are the carrying value, purchase price and sale price of used car stock together with interest rate risk. The Directors are confident that the risks associated with used car stock are mitigated by both the experience of key management and sales staff and the regular monitoring of stock holding period combined with the utilisation of industry guides and trade prices. The main interest expense is in respect of the car stocking facility which is a variable rate, the utilisation of the facility is carefully monitored.

Key performance indicators

Gross Profit

2023 - £3,456k GP% 2.2% (2022 - £5,358k GP% 3.0%)

The used car market began to soften in late 2022 which put margins under pressure for the whole of 2023.

EBITDA

2023 - £982k - 0.6% (2022 - £3,006k - 1.7%)

The reduced gross profit fed through to the bottom lines and reduced EBITDA for the year.

Section 172 Companies Act
Promoting the success of the company

In accordance with section 172 of the Companies Act 2006 each of our directors acts in a way that they consider, in good faith, would most likely promote the success of the company for the benefit of its stakeholders as a whole.

 

The shareholders are involved on a day to day basis with practical operational decisions in their capacity as directors. They are aware of how important building and maintaining successful relationships with stakeholders are to the business, be it employees, customers, suppliers and the wider community. In making decisions, the Directors take account not only of the short term requirements of the business but also of the longer term impact on these stakeholders.

Engaging with the local community

The business has a strong relationship with the local Martins House Children's Hospice and regularly organise super car experience days giving the children and young adults the chance to drive around in some of the best performance cars on the market.

Customer experience

Spanning a spectrum from £10k to £5m, the value of the vehicle is inconsequential in relation to the calibre of service every customer receives. We strive to consistently surpass expectations, crafting an experience that forms the foundation of a community we take great pride in.

REDLINE SPECIALIST CARS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
High standards of business conduct

Our unwavering commitment to quality extends across all dimensions of our operation. From the meticulous preparation of our inventory to the seamless handovers for our customers, every interaction within Redline is steeped in quality. To reinforce this commitment, we've developed a series of refined processes and established multi-million-pound servicing and detailing departments, all dedicated to placing quality at the forefront of our endeavours.

On behalf of the board

J R D Graeme
Director
29 August 2024
REDLINE SPECIALIST CARS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -

The directors present their annual report and financial statements for the year ended 31 December 2023.

Results and dividends

The results for the year are set out on page 10.

Ordinary dividends were paid amounting to £576,000. The directors do not recommend payment of a final dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

J R D Graeme
R L Milner
Financial instruments
Objectives and policies

The Company's principal financial instruments comprise bank balances, bank loans, trade creditors, trade debtors and stock loan facilities.

Price risk, credit risk, liquidity risk and cash flow risk

Due to the nature of stock, the Company is exposed to price risk as a result of changing market prices of the vehicles which is mitigated by management through the monitoring of the stock holding period and the use of industry specific guides and trade prices to monitor net realisable value versus cost.

 

In respect of bank balances, the liquidity risk is managed by maintaining a balance between the continuity of funding and flexibility through the use of stocking facilities at affordable rates of interest.

 

Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits.

 

Trade creditor liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.

Auditor

The auditor, TC Group, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Energy and carbon report

As the company has not consumed more than 40,000 kWh of energy in this reporting period, it qualifies as a low energy user under these regulations and is not required to report on its emissions, energy consumption or energy efficiency activities.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

REDLINE SPECIALIST CARS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
On behalf of the board
J R D Graeme
Director
29 August 2024
REDLINE SPECIALIST CARS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 5 -

The directors are responsible for preparing the annual 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

REDLINE SPECIALIST CARS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF REDLINE SPECIALIST CARS LIMITED
- 6 -
Opinion

We have audited the financial statements of Redline Specialist Cars Limited (the 'company') for the year ended 31 December 2023 which comprise the profit and loss account, the balance sheet, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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. 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.

REDLINE SPECIALIST CARS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF REDLINE SPECIALIST CARS LIMITED
- 7 -

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the 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:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, 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 the directors either 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.

 

Irregularities, including fraud, are instances of non-compliance with laws and regulations. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

REDLINE SPECIALIST CARS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF REDLINE SPECIALIST CARS LIMITED
- 8 -

Extent to which the audit was capable of detecting irregularities, including fraud

The objectives of our audit, in respect of fraud, are: to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses; and to respond appropriately to fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and its management.

 

Our approach was as follows:

 

Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Where the risk was considered to be higher, we performed audit procedures to address each identified risk. These procedures included: testing manual journals; reviewing the financial statement disclosures and testing to supporting documentation; performing analytical procedures; and enquiring of management, and were designed to provide reasonable assurance that the financial statements were free from material fraud or error.

 

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. We are not responsible for preventing non-compliance and cannot be expected to detect all non-compliance with laws and regulations.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

REDLINE SPECIALIST CARS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF REDLINE SPECIALIST CARS LIMITED
- 9 -

Our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in 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.

Peter Hart (Senior Statutory Auditor)
For and on behalf of TC Group
Statutory Auditor
6 Queen Street
Leeds
West Yorkshire
LS1 2TW
29 August 2024
REDLINE SPECIALIST CARS LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
2023
2022
Notes
£
£
Turnover
2
158,436,184
182,159,403
Cost of sales
(154,998,696)
(176,800,890)
Gross profit
3,437,488
5,358,513
Administrative expenses
(2,504,307)
(2,401,558)
Other operating income
-
0
7,090
Operating profit
3
933,181
2,964,045
Interest payable and similar expenses
7
(1,259,522)
(478,866)
(Loss)/profit before taxation
(326,341)
2,485,179
Tax on (loss)/profit
8
27,652
(466,554)
(Loss)/profit for the financial year
(298,689)
2,018,625

The profit and loss account has been prepared on the basis that all operations are continuing operations.

REDLINE SPECIALIST CARS LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 11 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
10
127,689
134,913
Current assets
Stocks
11
21,680,286
19,737,671
Debtors
12
690,087
1,130,226
Cash at bank and in hand
1,816,819
892,505
24,187,192
21,760,402
Creditors: amounts falling due within one year
13
(18,712,877)
(15,417,552)
Net current assets
5,474,315
6,342,850
Total assets less current liabilities
5,602,004
6,477,763
Provisions for liabilities
Deferred tax liability
15
17,160
18,230
(17,160)
(18,230)
Net assets
5,584,844
6,459,533
Capital and reserves
Called up share capital
17
300,300
300,300
Profit and loss reserves
5,284,544
6,159,233
Total equity
5,584,844
6,459,533
The financial statements were approved by the board of directors and authorised for issue on 29 August 2024 and are signed on its behalf by:
J R D Graeme
Director
Company registration number 03326062 (England and Wales)
REDLINE SPECIALIST CARS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 January 2022
300,300
4,916,608
5,216,908
Year ended 31 December 2022:
Profit and total comprehensive income
-
2,018,625
2,018,625
Dividends
9
-
(776,000)
(776,000)
Balance at 31 December 2022
300,300
6,159,233
6,459,533
Year ended 31 December 2023:
Loss and total comprehensive income
-
(298,689)
(298,689)
Dividends
9
-
(576,000)
(576,000)
Balance at 31 December 2023
300,300
5,284,544
5,584,844
REDLINE SPECIALIST CARS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
1
Accounting policies
Company information

Redline Specialist Cars Limited is a private company limited by shares incorporated in England and Wales. The registered office is Grimbald Crag Close Grimbald Crag Road, St James Business Park, Knaresborough, North Yorkshire, England, HG5 8PY.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £1.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

 

 

The financial statements of the company are consolidated in the financial statements of Redline Holdings Limited. These consolidated financial statements are available from Companies House, Crown Way, Cardiff, CF14 3UZ.

1.2
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

REDLINE SPECIALIST CARS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -
1.4
Research and development expenditure

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

1.5
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Leasehold land and buildings
20% Straight line
Plant and equipment
12% to 33% straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.6
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

REDLINE SPECIALIST CARS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -
1.7
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.8
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.9
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet 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 debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

REDLINE SPECIALIST CARS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -
Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.10
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.11
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

REDLINE SPECIALIST CARS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -
Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.12
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.13
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

2
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Sale of used vehicles
155,966,628
179,558,390
Finance commission, accessories & repairs
2,469,556
2,601,013
158,436,184
182,159,403

All turnover arose within the UK.

REDLINE SPECIALIST CARS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 18 -
3
Operating profit
2023
2022
Operating profit for the year is stated after charging:
£
£
Research and development costs
-
500
Fees payable to the company's auditor for the audit of the company's financial statements
25,000
21,000
Depreciation of owned tangible fixed assets
48,335
41,614
Operating lease charges
305,660
239,100
4
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
25,000
21,000
All other services
35,649
88,753
60,649
109,753
5
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2023
2022
Number
Number
Administration and support
8
7
Sales, service and repair
24
26
Total
32
33
REDLINE SPECIALIST CARS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
5
Employees
(Continued)
- 19 -

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
1,564,586
1,520,550
Social security costs
156,625
182,918
Pension costs
42,750
123,194
1,763,961
1,826,662
6
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
112,424
112,424
Company pension contributions to defined contribution schemes
1,686
80,000
114,110
192,424

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2022 - 2).

7
Interest payable and similar expenses
2023
2022
£
£
Interest on finance leases and hire purchase contracts
1,259,522
478,866
8
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
-
0
477,391
Adjustments in respect of prior periods
(26,582)
(16,010)
Total current tax
(26,582)
461,381
REDLINE SPECIALIST CARS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
8
Taxation
2023
2022
£
£
(Continued)
- 20 -
Deferred tax
Origination and reversal of timing differences
(1,070)
5,173
Total tax (credit)/charge
(27,652)
466,554

The actual (credit)/charge for the year can be reconciled to the expected (credit)/charge for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
(Loss)/profit before taxation
(326,341)
2,485,179
Expected tax (credit)/charge based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
(76,759)
472,184
Tax effect of expenses that are not deductible in determining taxable profit
13,402
22,611
Permanent capital allowances in excess of depreciation
(28)
(8,712)
Under/(over) provided in prior years
35,797
(19,529)
Change in rate of deferred tax
(64)
-
0
Taxation (credit)/charge for the year
(27,652)
466,554
9
Dividends
2023
2022
£
£
Final paid
-
0
776,000
Interim paid
576,000
-
0
576,000
776,000
REDLINE SPECIALIST CARS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
10
Tangible fixed assets
Leasehold land and buildings
Plant and equipment
Total
£
£
£
Cost
At 1 January 2023
114,993
124,075
239,068
Additions
15,444
25,667
41,111
At 31 December 2023
130,437
149,742
280,179
Depreciation and impairment
At 1 January 2023
51,408
52,747
104,155
Depreciation charged in the year
19,868
28,467
48,335
At 31 December 2023
71,276
81,214
152,490
Carrying amount
At 31 December 2023
59,161
68,528
127,689
At 31 December 2022
63,585
71,328
134,913
11
Stocks
2023
2022
£
£
Finished goods and goods for resale
21,680,286
19,737,671

The amount of impairment loss included in cost of sales is £733,400 (2022 - £409,000).

 

The carrying amount of stocks pledged as security for liabilities amounted to £19,866,218 (2022 - £16,201,835).

12
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
404,995
1,021,657
Corporation tax recoverable
50,356
-
0
Other debtors
232,903
100,688
Prepayments and accrued income
1,833
7,881
690,087
1,130,226
REDLINE SPECIALIST CARS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
13
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Other borrowings
14
159,069
11,668
Trade creditors
17,178,758
14,087,866
Corporation tax
-
0
477,391
Other taxation and social security
238,000
456,308
Other creditors
761,664
35,241
Accruals and deferred income
375,386
349,078
18,712,877
15,417,552
14
Loans and overdrafts
2023
2022
£
£
Other loans
159,069
11,668
Payable within one year
159,069
11,668

Included within trade creditors is a stocking loan with a carrying amount of £15,891,814 (2022 - £12,961,468).

 

The stocking loan is denominated in sterling and is secured on the stock to which it relates.

 

The bank has a debenture charge over all the assets of the company as a security against its borrowings.

15
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
17,160
18,230
REDLINE SPECIALIST CARS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
15
Deferred taxation
(Continued)
- 23 -
2023
Movements in the year:
£
Liability at 1 January 2023
18,230
Credit to profit or loss
(1,070)
Liability at 31 December 2023
17,160
16
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
42,750
123,194

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

17
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary share of £1 each
300,300
300,300
300,300
300,300
18
Financial commitments, guarantees and contingent liabilities

The Company has guaranteed the value of the mortgage on the trading premises owned by Redline Property Holdings Limited, a company under common control.

 

The amount of the financial guarantee contract is £550,190 (2022 - £593,140).

REDLINE SPECIALIST CARS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 24 -
19
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2023
2022
£
£
Within one year
6,760
21,092
Between two and five years
-
0
6,145
6,760
27,237
20
Related party transactions
Transactions with related parties

During the year the company entered into the following transactions with related parties:

Redline Property Holdings Limited

During the year, the company was charged rent from Redline Property Holdings amounting to £220,000 (2022 - £178,000).

 

At 31 December 2023, the amount due to Redline Property Holdings was £159,069 (2022 - £11,668).

 

Enso Automotive Limited

During the year, the company was charged costs from Enso Automotive Limited amounting to £591,378.

 

At 31 December 2023, the amount due to Enso Automotive Limited was £35,616 (2022 - £49,960) and is included in trade creditors.

21
Directors' transactions

Dividends totalling £576,000 (2022 - £776,000) were paid in the year in respect of shares held by the company's directors.

At the balance sheet date the directors were owed £2,701 (2022 - £2,701).

22
Parent and ultimate parent undertaking

The company's immediate parent is Redline Holdings Limited, incorporated in the United Kingdom. These financial statements are available upon request from Companies House, Crown Way, Cardiff, CF14 3UZ.

 

The ultimate controlling party is R L Milner.

2023-12-312023-01-01falseCCH SoftwareCCH Accounts Production 2024.200No description of principal activityJ R D GraemeR L Milnerfalsefalse033260622023-01-012023-12-3103326062bus:Director12023-01-012023-12-3103326062bus:Director22023-01-012023-12-3103326062bus:RegisteredOffice2023-01-012023-12-31033260622023-12-31033260622022-01-012022-12-3103326062core:RetainedEarningsAccumulatedLosses2022-01-012022-12-3103326062core:RetainedEarningsAccumulatedLosses2023-01-012023-12-31033260622022-12-3103326062core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-12-3103326062core:PlantMachinery2023-12-3103326062core:LandBuildingscore:LeasedAssetsHeldAsLessee2022-12-3103326062core:PlantMachinery2022-12-3103326062core:CurrentFinancialInstrumentscore:WithinOneYear2023-12-3103326062core:CurrentFinancialInstrumentscore:WithinOneYear2022-12-3103326062core:CurrentFinancialInstruments2023-12-3103326062core:CurrentFinancialInstruments2022-12-3103326062core:ShareCapital2023-12-3103326062core:ShareCapital2022-12-3103326062core:RetainedEarningsAccumulatedLosses2023-12-3103326062core:RetainedEarningsAccumulatedLosses2022-12-3103326062core:ShareCapital2021-12-3103326062core:RetainedEarningsAccumulatedLosses2021-12-3103326062core:LandBuildingscore:LongLeaseholdAssets2023-01-012023-12-3103326062core:PlantMachinery2023-01-012023-12-3103326062core:UKTax2023-01-012023-12-3103326062core:UKTax2022-01-012022-12-310332606212023-01-012023-12-310332606212022-01-012022-12-310332606222023-01-012023-12-310332606222022-01-012022-12-3103326062core:LandBuildingscore:LeasedAssetsHeldAsLessee2022-12-3103326062core:PlantMachinery2022-12-31033260622022-12-3103326062core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-01-012023-12-3103326062core:WithinOneYear2023-12-3103326062core:WithinOneYear2022-12-3103326062core:BetweenTwoFiveYears2023-12-3103326062core:BetweenTwoFiveYears2022-12-3103326062bus:PrivateLimitedCompanyLtd2023-01-012023-12-3103326062bus:FRS1022023-01-012023-12-3103326062bus:Audited2023-01-012023-12-3103326062bus:FullAccounts2023-01-012023-12-31xbrli:purexbrli:sharesiso4217:GBP