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COMPANY REGISTRATION NUMBER: 02722732
UNIVERSAL MOTORS UK LTD
FILLETED FINANCIAL STATEMENTS
31 December 2023
UNIVERSAL MOTORS UK LTD
FINANCIAL STATEMENTS
Year ended 31 December 2023
Contents
Pages
Balance sheet 1
Notes to the financial statements 2 to 7
UNIVERSAL MOTORS UK LTD
BALANCE SHEET
31 December 2023
2023
2022
Note
£
£
Fixed assets
Tangible assets
6
85,453
69,925
Current assets
Stocks
2,350,373
2,795,394
Debtors
7
1,036,856
1,075,360
Cash at bank and in hand
14,400
32,525
------------
------------
3,401,629
3,903,279
Creditors: amounts falling due within one year
8
1,868,157
2,849,210
------------
------------
Net current assets
1,533,472
1,054,069
------------
------------
Total assets less current liabilities
1,618,925
1,123,994
Creditors: amounts falling due after more than one year
9
14,720
26,496
Provisions
Taxation including deferred tax
11
10,100
13,900
------------
------------
Net assets
1,594,105
1,083,598
------------
------------
Capital and reserves
Called up share capital
14
14,400
14,400
Profit and loss account
1,579,705
1,069,198
------------
------------
Shareholders funds
1,594,105
1,083,598
------------
------------
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with Section 1A of FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
In accordance with section 444 of the Companies Act 2006, the profit and loss account has not been delivered.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
These financial statements were approved by the board of directors and authorised for issue on 20 March 2024 , and are signed on behalf of the board by:
Mrs F L C Da Silva
J T Barbosa
Director
Director
Company registration number: 02722732
UNIVERSAL MOTORS UK LTD
NOTES TO THE FINANCIAL STATEMENTS
Year ended 31 December 2023
1. General information
The company is a private company limited by shares, registered in England and Wales. The address of the registered office is 35 Westgate, Huddersfield, HD1 1PA.
2. Statement of compliance
These financial statements have been prepared in compliance with Section 1A of FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.
The financial statements are prepared in sterling, which is the functional currency of the entity.
Revenue recognition
Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax. Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably.
Taxation
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.
Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
Foreign currencies
Foreign currency transactions are initially recorded in the functional currency, by applying the spot exchange rate as at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate ruling at the reporting date, with any gains or losses being taken to the profit and loss account.
Operating leases
Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.
Tangible assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Plant & machinery
-
25% straight line
Motor vehicles
-
25% reducing balance
Computer & office equipment
-
25% straight line
Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets. For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units.
Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.
Finance leases and hire purchase contracts
Assets held under finance leases and hire purchase contracts are recognised in the balance sheet as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.
Provisions
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the balance sheet and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.
Financial instruments
Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as either financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
4. Employee numbers
The average number of persons employed by the company during the year amounted to 15 (2022: 16 ).
5. Dividends
Dividends paid during the year (excluding those for which a liability existed at the end of the prior year):
2023
2022
£
£
Equity dividends on ordinary shares
200,000
------------
------------
6. Tangible assets
Plant and machinery
Motor vehicles
Equipment
Total
£
£
£
£
Cost
At 1 January 2023
22,040
64,405
81,847
168,292
Additions
8,750
32,496
2,531
43,777
------------
------------
------------
------------
At 31 December 2023
30,790
96,901
84,378
212,069
------------
------------
------------
------------
Depreciation
At 1 January 2023
20,018
13,418
64,931
98,367
Charge for the year
1,093
20,871
6,285
28,249
------------
------------
------------
------------
At 31 December 2023
21,111
34,289
71,216
126,616
------------
------------
------------
------------
Carrying amount
At 31 December 2023
9,679
62,612
13,162
85,453
------------
------------
------------
------------
At 31 December 2022
2,022
50,987
16,916
69,925
------------
------------
------------
------------
7. Debtors
2023
2022
£
£
Trade debtors
1,015,147
1,048,598
Amounts owed by group undertakings
1,500
Prepayments and accrued income
10,459
14,012
Other debtors
11,250
11,250
------------
------------
1,036,856
1,075,360
------------
------------
8. Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans
449,076
494,464
Trade creditors
452,976
1,572,121
Accruals and deferred income
59,776
86,606
Corporation tax
120,590
29,850
Social security and other taxes
199,668
170,774
Obligations under finance leases and hire purchase contracts
11,776
11,776
Advances under invoice financing arrangements
574,295
483,619
------------
------------
1,868,157
2,849,210
------------
------------
9. Creditors: amounts falling due after more than one year
2023
2022
£
£
Obligations under finance leases and hire purchase contracts
14,720
26,496
------------
------------
10. Secured indebtedness
The aggregate amount of secured liabilities at the year end totalled £1,049,867 (2022: £1,016,355).
11. Provisions
Deferred tax (note 12)
£
At 1 January 2023
13,900
Charge against provision
( 3,800)
------------
At 31 December 2023
10,100
------------
12. Deferred tax
The deferred tax included in the balance sheet is as follows:
2023
2022
£
£
Included in provisions (note 11)
10,100
13,900
------------
------------
The deferred tax account consists of the tax effect of timing differences in respect of:
2023
2022
£
£
Accelerated capital allowances
10,100
13,900
------------
------------
13. Employee benefits
Defined contribution plans
The amount recognised in profit or loss as an expense in relation to defined contribution pension plans was £ 12,394 (2022: £ 14,427 ).
14. Called up share capital
Issued, called up and fully paid
2023
2022
No.
£
No.
£
Ordinary shares of £ 1 each
14,400
14,400
14,400
14,400
------------
------------
------------
------------
15. Ultimate parent company
The ultimate parent company is Growforward SA, a company incorporated in Portugal and controlled by A Ricca. It prepares consolidated financial statements and copies can be obtained from the Portuguese Register of Commercial Companies.
16. Operating leases
The total future minimum lease payments under non-cancellable operating leases are as follows:
2023
2022
£
£
Not later than 1 year
42,812
43,466
Later than 1 year and not later than 5 years
100,145
136,481
------------
------------
142,957
179,947
------------
------------
17. Summary audit opinion
The auditor's report for the year dated 20 March 2024 was unqualified.
The senior statutory auditor was David Butterworth , for and on behalf of Wheawill & Sudworth Limited .
18. Related party transactions
Growforward SA is also the controlling shareholder of Universal Motors SA (a company incorporated in Portugal) and Efaflu UK Limited. During the period under review Universal Motors UK Limited supplied parts and other services to Universal Motors SA amounting to £37,976 (2022: £3,771). At the balance sheet date there was an amount owed by Universal Motors SA to the company of £27,169 (2022: £38,555). Also during the year Universal Motors SA supplied parts and other services to Universal Motors UK Limited amounting to £414,646 (2022: £337,332). At the balance sheet date there was an amount owing to Universal Motors SA by the company of £379,300 (2022: £1,419,228). All transactions were carried out at commercial rates and terms. Also during the year Universal Motors UK Limited supplied parts and other services to Efaflu UK Limited at commercial rates and terms amounting to £27,646 (2022: £15,979). Likewise, during the year, Efaflu UK Limited supplied parts and other services to Universal Motors UK Limited amounting to £5,024 (2022: £1,841). At the Balance Sheet date there was a net amount owed by Efaflu UK Limited to the company of £2,324 (2022: £1,780)