Company registration number 12695026 (England and Wales)
AUTOMOTIVE HUB LTD
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 DECEMBER 2023
PAGES FOR FILING WITH REGISTRAR
AUTOMOTIVE HUB LTD
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 9
AUTOMOTIVE HUB LTD
BALANCE SHEET
AS AT
30 DECEMBER 2023
30 December 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
4
19,039
31,907
Current assets
Stocks
293,314
360,791
Debtors
5
66,154
35,616
Cash at bank and in hand
145,894
191,579
505,362
587,986
Creditors: amounts falling due within one year
6
(1,030,594)
(947,542)
Net current liabilities
(525,232)
(359,556)
Total assets less current liabilities
(506,193)
(327,649)
Creditors: amounts falling due after more than one year
7
(208,333)
(225,000)
Provisions for liabilities
9
(3,606)
(5,735)
Net liabilities
(718,132)
(558,384)
Capital and reserves
Called up share capital
11
60,000
60,000
Profit and loss reserves
(778,132)
(618,384)
Total equity
(718,132)
(558,384)
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 20 August 2024 and are signed on its behalf by:
R Wilson
Director
Company registration number 12695026 (England and Wales)
AUTOMOTIVE HUB LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 DECEMBER 2023
- 2 -
1
Accounting policies
Company information
Automotive Hub Ltd is a private company limited by shares incorporated in England and Wales. The registered office is Hewitts Avenue, Hewitts Circus, Humberston, Grimsby, Lincolnshire, DN36 4SE.
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 as applicable to companies subject to the small companies regime. 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 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 £.
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:
Section 11 ‘Basic Financial Instruments’ : Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The financial statements of the company are consolidated in the financial statements of RJTK Investments Limited. These consolidated financial statements are available from its registered office, Hewitts Avenue, Hewitts Circus, Humberston, Grimsby, Lincolnshire, DN36 4SE.
1.2
Going concern
During the year ended 30 December 202true3, the company made losses after tax of £159,748 and had a net current liabilities position of £525,232. The parent company and group which Automotive Hub Ltd is a subsidiary of has strong liquidity through careful management of the facilities available to it, the company continues to benefit from the support of its parent in the form of group loans. The parent undertaking has confirmed that this support will continue for a period of at least 12 months from the date of signing these financial statements.
On that basis 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.
Sales of motor vehicles are recognised on the earlier of full payment by, or delivery date to, the customer.
Sundry income relates to commissions received. They are accounted for on a receivables basis.
AUTOMOTIVE HUB LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 DECEMBER 2023
1
Accounting policies
(Continued)
- 3 -
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost, 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:
Plant and equipment
10% - 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.
1.5
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.
1.6
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.
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.
1.7
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.
1.8
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.
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.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
AUTOMOTIVE HUB LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 DECEMBER 2023
1
Accounting policies
(Continued)
- 4 -
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
1.9
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
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.
1.10
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.11
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
AUTOMOTIVE HUB LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 DECEMBER 2023
1
Accounting policies
(Continued)
- 5 -
1.12
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.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Stock
In determining the net realisable value of stock, management takes into account the most reliable evidence available at the dates the estimates are made. The company’s core business is continuously subject to technology changes which may cause stock obsolescence. Moreover, future realisation of the carrying amounts of stock is affected by price changes in different market segments. Both aspects are considered key sources of estimation uncertainty and may cause significant adjustments to the company stock within the next financial reporting period. Details of stock held are shown within the stock note.
Tangible fixed assets
The company estimates the useful lives of property, plant and equipment based on the period over which the assets are expected to be available for use. The estimated useful lives of property, plant and equipment are reviewed periodically and are updated if expectations differ from previous estimates due to physical wear and tear, technical or commercial obsolescence and legal or other limits on the use of the assets.
Based on management's assessment as at 30 December 2023, there is no change in estimated useful lives of those assets during the year. Actual results, however, may vary due to changes in estimates brought about by changes in factors mentioned above.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
4
7
AUTOMOTIVE HUB LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 DECEMBER 2023
- 6 -
4
Tangible fixed assets
Plant and machinery etc
£
Cost
At 31 December 2022
52,714
Additions
934
Disposals
(12,980)
At 30 December 2023
40,668
Depreciation and impairment
At 31 December 2022
20,807
Depreciation charged in the year
11,151
Eliminated in respect of disposals
(10,329)
At 30 December 2023
21,629
Carrying amount
At 30 December 2023
19,039
At 30 December 2022
31,907
5
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
49
Amounts owed by group undertakings
46,573
5,486
Other debtors
3,636
Prepayments and accrued income
19,532
26,494
66,154
35,616
6
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans
8
16,667
16,667
Trade creditors
306,525
342,445
Amounts owed to group undertakings
645,276
536,509
Taxation and social security
8,917
2,686
Other creditors
2,692
Accruals and deferred income
50,517
49,235
1,030,594
947,542
AUTOMOTIVE HUB LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 DECEMBER 2023
6
Creditors: amounts falling due within one year
(Continued)
- 7 -
Included within trade creditors is an amount of £272,118 (2022: £308,996) which relates to vehicle funding. Vehicle funding is secured over the vehicles to which it relates.
7
Creditors: amounts falling due after more than one year
2023
2022
£
£
Bank loans and overdrafts
208,333
225,000
The bank loans are secured by fixed and floating charges over the assets of the company.
8
Loans and overdrafts
2023
2022
£
£
Bank loans
225,000
241,667
Payable within one year
16,667
16,667
Payable after one year
208,333
225,000
The bank loans are secured by fixed and floating charges over the assets of the company.
The bank loan amounts to £225,000 (2022: £241,667) repayable within 5 years with interest charged on a floating rate basis with a minimum margin of 2.1%.
9
Provisions for liabilities
2023
2022
£
£
Deferred tax liabilities
10
3,606
5,735
10
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2023
2022
Balances:
£
£
Fixed asset timing differences
3,895
5,938
Short term timing differences
(53)
(203)
Losses and other deductions
(236)
-
3,606
5,735
AUTOMOTIVE HUB LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 DECEMBER 2023
10
Deferred taxation
(Continued)
- 8 -
2023
Movements in the year:
£
Liability at 31 December 2022
5,735
Credit to profit or loss
(2,129)
Liability at 30 December 2023
3,606
11
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
60,000
60,000
60,000
60,000
12
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
Senior Statutory Auditor:
Paul Daly BEng FCA
Statutory Auditor:
UHY Hacker Young Manchester LLP
Date of audit report:
20 August 2024
13
Financial commitments, guarantees and contingent liabilities
The company has entered into a joint agreement with the following companies to guarantee the liabilities of RJTK Investments Limited with Barclays Bank plc:
Wilson & Co (Motor Sales) Limited
Wilson & Co (KIA) Limited
S. Cropley Limited
Victor Wood of Oakham Limited
Victor Wood (Holdings) Limited
WCO Properties Limited
At the year-end, the total drawn bank facilities for the group headed up by RJTK Investments Limited were as follows:
2023 2022
Loans and overdrafts £5,400,000 £5,800,000
The company is party to a cross guarantee arrangement with its related subsidiary undertakings in respect of Lombard vehicle stocking loans. The total amounts drawn across the group at 31/12/2023 were £10,401,375 (2022 - £12,798,796)
AUTOMOTIVE HUB LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 DECEMBER 2023
- 9 -
14
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2023
2022
£
£
70,550
95,552
15
Related party transactions
The company has taken advantage of the exemption available in FRS102 whereby it has not disclosed transactions with its 100% parent company or fellow subsidiary undertakings.
16
Parent company
RJTK Investments Ltd is regarded by the directors as being the company's immediate and ultimate parent company.
The controlling party is R Wilson by virtue of his majority shareholding in the parent company RJTK Investments Ltd.