Company Registration Number 11703532
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DETAIL GARAGE (PRESTON) LIMITED
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DETAIL GARAGE (PRESTON) LIMITED
REGISTERED NUMBER: 11703532
STATEMENT OF FINANCIAL POSITION
AS AT 28 FEBRUARY 2023
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.
The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The Company has opted not to file the statement of income and retained earnings in accordance with provisions applicable to companies subject to the small companies' regime.
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 22 July 2024.
The notes on pages 2 to 8 form part of these financial statements.
Page 1
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DETAIL GARAGE (PRESTON) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 28 FEBRUARY 2023
Detail Garage (Preston) Limited is a private company limited by shares which is incorporated in England and Wales, registration number 11703532. The address of its principal place of business is 50-51 Dollywaggon Way, Bamber Bridge, Preston, PR5 6EW and its registered office address is The Glades Festival Way, Festival Park, Stoke On Trent, Staffordshire, United Kingdom, ST1 5SQ.
2.Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with FRS 102 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland' and the requirements of the Companies Act 2006. The disclosure requirements of Section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The company has made a £86k profit in the period, has net current liabilities of £89k and overall net liabilities of £81k creating a material uncertainty over the company's ability to continue as a going concern.
The director believes the future trade and opportunity looks positive as the date of approving the financial statements, the company has seen improved performance. The director maintains good relationships with key creditors and the key creditors have shown no indication of recalling their outstanding debts. However there is nothing formal to support this intention and the company does not have the ability to repay these debts in the event they are recalled. Management have prepared high level forecasts however, without sufficient detail these are unable to be sensitised for varying scenarios, also leading to uncertainties regarding the going concern assumption.
Based on the above, the Director believes it remains appropriate to prepare the financial statements on a going concern basis. However, should the key creditor demand repayment or if trading conditions do not continue in line with high level forecasts this may cast doubt on the company's ability to continue as a going concern. The director does not include any adjustments that would result from the basis of preparation being inappropriate.
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Foreign currency translation
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Functional and presentation currency
The Company's functional and presentational currency is GBP.
Transactions and balances
Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.
At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.
Page 2
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DETAIL GARAGE (PRESTON) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 28 FEBRUARY 2023
2.Accounting policies (continued)
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.
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Operating leases: the Company as lessee
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Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.
Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the Statement of Income and Retained Earnings in the same period as the related expenditure.
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 entity. 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 accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Company in independently administered funds.
Exceptional items are transactions that fall within the ordinary activities of the Company but are presented separately due to their size or incidence.
Page 3
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DETAIL GARAGE (PRESTON) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 28 FEBRUARY 2023
2.Accounting policies (continued)
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on a reducing balance basis.
Depreciation is provided on the following basis:
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.
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 first in, first out 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.
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.
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Cash and cash equivalents
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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.
Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
Page 4
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DETAIL GARAGE (PRESTON) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 28 FEBRUARY 2023
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Cost of defined contribution scheme
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The average monthly number of employees, including directors, during the period was 3 (2022 - 3).
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Charge for the period on owned assets
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Page 5
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DETAIL GARAGE (PRESTON) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 28 FEBRUARY 2023
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Finished goods for resale
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Prepayments and accrued income
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Creditors: Amounts falling due within one year
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Amounts owed to group undertakings
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Other taxation and social security
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Accruals and deferred income
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Allotted, called up and fully paid
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10,000 (2022 - 10,000) Ordinary shares of £0.01 each
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Page 6
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DETAIL GARAGE (PRESTON) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 28 FEBRUARY 2023
Profit and loss account
This reserve represents cumulative profits and losses.
The company operates a defined contributions pension scheme for employees. 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 £532 (2022 - £975). Contributions totalling £244 (2022 - £131) were payable to the fund at the reporting date and are included in creditors.
11.Commitments under operating leases
At the reporting date the company had future minimum lease payments under non-cancellable operating leases of £13,125 (2022 - £17,500).
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Related party transactions
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At the reporting date £Nil (2022 - £36,566) was owed by the company to Omega Products Group Limited, a company incorporated in England & Wales in which one of the directors is a sole director and shareholder. This amount was previously included within other creditors and was unsecured, interest free and repayable on demand. This balance has been forgiven on 28 February and is no longer falling due.
Trade balances of £Nil (2022 - £73,300) were owed to Omega Products Group Limited. Normal credit terms are not enforced on these amounts. This balance has been forgiven on 28 February and is no longer falling due.
Trade balances of £5,574 (2022 - £Nil) were owed to CG UK Holdings Limited, a company under the control of Omega Products Group Limited. Normal credit terms are not enforced on these amounts.
At the reporting date £84,714 (2022 - £84,720) was owed by the company to Advanced Auto Detailing LLC, a company that held 75% of the share capital until February 2023 and is registered in the United States of America. This amount is included within creditors and is unsecured, interest free and repayable on demand.
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The company was under the control of its parent company Advanced Auto Detailing LLC throughout the period. The parent company is registered in the United States of America.
At the period end date of 28 February 2023 the immediate and ultimate parent company was CGDG Limited. CGDG Limited's registered office address is The Glades Festival Way, Festival Park, Stoke On Trent, Staffordshire, United Kingdom, ST1 5SQ.
Page 7
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DETAIL GARAGE (PRESTON) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 28 FEBRUARY 2023
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An informal arrangement is in place for which the former parent company of Detial Garage (Preston Limited) is liable for the audit and accounting fees for the period. These totalled £11,250 for the period to February 2023. This cost has not been recognised as a recoverable debtor due to the informal nature of the agreement.
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The auditors' report on the financial statements for the period ended 28 February 2023 was qualified.
The qualification in the audit report was as follows:
The change to the reporting date for the financial statements was not confirmed until after the new reporting date had passed and therefore we did not observe the counting of physical stocks at the end of that period. We were unable to satisfy ourselves by alternative means concerning the stock quantities of £27,070 held at 28 February 2023 by using other procedures. Consequently we were unable to determine whether any adjustments to this amount at 28 February 2023 was necessary or whether there was any consequential effect on the cost of sales for the period ended 28 February 2023.
The auditors' report also drew attention to another matter as follows:
We draw attention to note 2.2 in the financial statements, which indicates that there is some doubt over the ability of the company to generate sufficient cash flows to meet its liabilities as they fall due, particularly should key creditor balances be called in. As stated in note 2.2, these events or conditions, along with the other matters as set forth in note 2.2, indicate that a material uncertainty exists that may cast significant doubt on the Company's ability to continue as a going concern. Our opinion is not modified in respect of this matter.
The audit report was signed on 25 July 2024 by Joanna Gray (Senior Statutory Auditor) on behalf of Armstrong Watson Audit Limited.
Page 8
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