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Company registration number: 00764299







ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 DECEMBER 2023


TRIDENT GARAGES LIMITED






































img45ca.png                        

 


TRIDENT GARAGES LIMITED
 


 
COMPANY INFORMATION


Directors
R M Roberts 
C J Roberts 
J B Roberts 




Company secretary
C J Roberts



Registered number
00764299



Registered office
Trident House
Guildford Road

Ottershaw

Chertsey

Surrey

KT16 0NZ




Independent auditors
Menzies LLP
Chartered Accountants & Statutory Auditor

1st Floor

Midas House

62 Goldsworth Road

Woking

Surrey

GU21 6LQ





 


TRIDENT GARAGES LIMITED
 



CONTENTS



Page
Strategic Report
1 - 4
Directors' Report
5 - 6
Independent Auditors' Report
7 - 10
Income Statement
11
Statement of Financial Position
12
Statement of Changes in Equity
13 - 14
Statement of Cash Flows
15
Analysis of Net Debt
16
Notes to the Financial Statements
17 - 30


 


TRIDENT GARAGES LIMITED
 


 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

Introduction
 
Now in its 60th year of trading, 2023 proved more challenging for the Company, with easing new car supply resulting in increased targets and reduced new car margins, and inflationary pressures increasing administrative expenses.
Overall turnover increased 2% (£553k) in 2023, largely attributable to a £2.2m increase in car sales, offset by a £1.8m decrease in fuel sales.

Business review
 
Overall, new car volumes were very similar to the previous year, but this disguises the fact that new car sales were up 56% in the first quarter and then 28% down in the second quarter. Supply-side issues continued to affect Honda during the first half of 2023, with Jazz and Civic being worst affected.
There were several new models launched during the year, including the FL5 generation Civic Type R, the all new ZR-V e:HEV, the 6th generation CR-V in both e:HEV and e:PHEV variants, and the e:Ny1 BEV. This represents a significant expansion of the model range, and undoubtedly gives the Company its best-ever model range.
As with most manufacturers, post-pandemic, all these new models were priced significantly above the comparable outgoing model. This is in part because of increased size and quality, but also reflective of the cost of the high voltage batteries now included in all models. This has caused affordability issues for some customers with a consequential pressure on margins. With so many new models, targets were raised and intense competition ensued, resulting in new car margins dropping from 9% in 2022 to 7.2% this year.
The new car supply problems caused an increased demand for used cars. Despite a general market shortage for used cars, the directors managed to maintain healthy stocks. As a result, our used car sales increased by 24% over the year, with margins increasing slightly to 7%. Our Used:New ratio increased from 1.5:1 to 1.7:1.
In Aftersales, a 5% reduction in attended hours and a 1.6% increase in our sold hours resulted in increased overall efficiency of 107%, up from 100% in 2022, and an 18% increase in department profitability.
Our Shell filling station saw a 9% drop in fuel volumes which, after the 30% uplift last year, was disappointing but not entirely unexpected. Coupled with falling fuel prices, our fuel turnover was 18% down. Our shop sales dropped by 12%, which we attribute both to the drop in fuel volumes and the opening of a Little Waitrose in the Shell filling station opposite.
In response to this increased competition, the directors refurbished the shop and changed its wholesale supplier from Booker to Nisa from October 2023. It was felt by the directors that Nisa, owned by Co-op and supplying Co-op products, would provide a value proposition to contrast with Little Waitrose. This appears to have been very successful.
In response to the inflationary pressures and in line with motor industry trends, the directors made the decision to increase salaries and wages. This had the benefit of retaining staff and protecting our recruitment costs, but resulted in a 7% increase in related costs.
During the pandemic, the directors had taken the decision to pause contributions into their pension scheme. These resumed in 2023, along with a lump sum payment being made at the end of the year to catch back some of the shortfall.
The Company’s energy costs increased by 26% and, as a result, the directors decided to fix rates in April 2024. The directors also installed an 8kW solar generation system to further reduce costs.
The directors replaced the Company’s on-premises servers in 2023, with a significantly enhanced level of support and backup. This resulted in a 21% increase in our computer costs.
These capital projects resulted in a 57% increase in our plant and machinery depreciation but, having completed its programme of site improvements over a number of years, we were able to reduce our repairs and maintenance by 25%.
During the pandemic and the resulting supply-side disruptions, Honda had relaxed their demonstrator requirements for dealers. This came to an end in 2023, resulting in a 14% increase in vehicle running costs.
Legal costs increased by 133%, largely due to a staff disciplinary matter which was successfully concluded during the year with a signed settlement agreement.
 
Page 1

 


TRIDENT GARAGES LIMITED
 



STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023


Insurance costs increased by 12%, despite an excellent claims record. This was in part due to the introduction of a cyber insurance policy.
The directors took the decision to replace our auditors at the beginning of 2023 and this has resulted in audit costs increasing by 23%.
Overall administrative expenses increased by 12% in 2023, which along with the more challenging trading conditions, resulted in Company profit reducing by 31%.

Principal risks and uncertainties
 
Honda Agency
From April 2024, Honda began supplying the Honda e:Ny1 BEV (Battery Electric Vehicle) model through their new Agency model. Being a BEV, the e:Ny1 was impacted by the UK government’s ZEV mandate, which requires manufacturers to sell up to 22% of zero emission vehicles. In turn, this resulted in intense competition, with large discounts being offered by both manufactures and dealers. Such a significant change was always going to provide challenges and the directors are confident that Honda will resolve these issues in due course.
Honda targets
In the last quarter of 2023 and the first quarter of 2024, the Company was given new car targets which the directors consider to have been unachievable. This resulted in a loss of target-related earnings in both quarters. This has never happened previously and our targets for the remainder of 2024 are once again within reach. The directors are optimistic that this was an isolated occurrence; nevertheless it has shown this to be a significant risk. The strength of a motor dealership is that it is not reliant on any one area and, on this occasion, our used car, servicing, parts and forecourt operations were able to sustain our business.
Risk of fire
Another significant risk for fuel retailers and motor dealerships is that of fire. At the end of 2021, the Company changed its fire alarm maintenance company, which resulted in a thorough review of the system and many improvements being made. Crucially, the system is now monitored, ensuring there will be no delay in the Fire Brigade being called in the event of a fire.
Electric and hybrid vehicles risk
There is a risk of electrocution and fire from working on the lithium-ion batteries in today’s BEVs (battery electric vehicles). Our technicians have been trained by Honda to work safely on both BEV and HEV (hybrid electric vehicles). Additional safety equipment has been purchased, including a suitable fire extinguisher, vehicle fire blanket and safety rescue hook. An AED defibrillator is available behind our reception. A policy has been introduced for handling BEVs with damaged batteries.
Risk of cyber attack
Multi-factor authentication has been implemented for all remote access to our CRM database, as well as to our Microsoft 365 email and office systems. Our new on-premises servers, as well as our hosted webserver, are fully managed, with security updates being promptly applied. Our PCs are centrally managed, hold no data and receive automatic virus and operating system updates.
The Company’s systems are being monitored by the National Cyber Security Centre’s Early Warning system. The directors have now taken on a cyber insurance policy, and continue to review where security improvements may be made.




 
Page 2

 


TRIDENT GARAGES LIMITED
 



STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

FCA Discretionary Commission
On 11 January 2024 the Financial Conduct Authority (FCA) made an announcement concerning customer complaints involving motor finance agreements, where a discretionary commission was paid to motor dealers between 6 April 2007 and 27 January 2021.
The major part of the risk would appear to rest with the finance house rather than with the dealer. In any case, the directors have always opted for a low APR rate to facilitate sales. For these reasons, the directors believe there to be a low risk to our business.
FCA GAP Insurance
The FCA has banned the sale of GAP policies from some providers, with most other providers choosing to withdraw their policies. As a result, we are currently unable to offer GAP policies to our customers.
The directors believe that the Honda GAP product was reasonably priced and offered good value for money, and as such that there is a low risk to the business.
The Company has managed to make up the loss of GAP by concentrating on other products.
ElectricBrands in administration
It is with disappointment that the directors have to report that ElectricBrands has entered administration. The directors had taken on the XBUS and Evetta agency agreements, with the intention of operating them from our Old Forge satellite site in Ottershaw.

Financial key performance indicators
 

Turnover £m
2023
2022
Change
Change %
New cars
7.5
7.0
+0.5
6%
Used cars
9.4
7.6
+1.8
24%
Service
1.3
1.2
+0.1
6%
Parts
0.9
0.8
+0.1
11%
Forecourt
8.9
10.8
-1.9
-17%
Total sales
28.0
27.4
+0.6
2%


Return on sales
2023
2022
Change %
Sales
2.0%
2.5%
-0.5%
Service
35.6%
31.8%
+3.8%
Parts
15.3%
16.0%
-0.7%
Forecourt
5.6%
5.1%
+0.5%
Company
1.8%
2.7%
-0.9%



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TRIDENT GARAGES LIMITED
 



STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Future Developments
New models
Honda has been unusually quiet about upcoming models, although the directors are expecting a replacement Jazz in 2025. A concept Prelude was revealed in 2024 which the directors hope may also reach showrooms in 2025.
Honda has joint ventures with both Sony and Nissan and has now unveiled the Honda 0 Series, an ambitious new EV series which Honda intends launching globally from 2026. The Honda 0 Series will include a dramatically styled flagship saloon, as well as a futuristic ‘Space Hub’. Please visit 0.honda for more information.
Nisa Express
The directors are pleased to report that changing to Nisa for its wholesale supply, along with a substantial effort to improve our shop operation, has dramatically increased our shop sales and gross profit. As a result of this success, the directors decided to rebrand its forecourt shop as Nisa Express, which was completed in June 2024.
July saw a £52k increase in year-to-date shop gross profit, compared with the same period in 2023, which annualises to an additional £89k for 2024. The directors believe this to be an underestimate, as our shop gross profits are steadily increasing month by month. There was a £28k increase in the three months to July 2024 and this suggests that the business may have increased its shop earning potential by over £100k pa.
Solar power generation
During 2024, the directors doubled the size of our solar generation system. Our Ottershaw premises benefits from a large roof area, and the directors have now drawn up plans for a further expansion of capacity.
New territory areas
The directors recognise that there is huge potential in its recently enlarged territory, which now extends into Camberley, Ascot and Bracknell, and is focusing on unlocking that potential.



This report was approved by the board and signed on its behalf.



................................................
C J Roberts
Director

Date: 10 September 2024

Page 4

 


TRIDENT GARAGES LIMITED
 


 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

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

Directors

The directors who served during the year were:

R M Roberts 
C J Roberts 
J B Roberts 

Directors' responsibilities statement

The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.
 
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.

 In preparing these financial statements, the directors are required to:


select suitable accounting policies for the Company's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

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

Results and dividends

The profit for the year, after taxation, amounted to £404,840 (2022 - £608,978).

Matters covered in the Strategic Report

The Group has chosen, in accordance with Section 414C(11) of the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013, to set out within the Group's Strategic Report, the Group's Strategic Report Information as required by Schedule 7 of the Large and Medium Sized Companies and Groups (Accounts and Reports) Regulation 2008. This includes information that would have been included within future developments.

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

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TRIDENT GARAGES LIMITED
 


 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Post balance sheet events

There have been no significant events affecting the Company since the year end.

Auditors

Under section 485 (2) of the Companies Act 2006, Menzies LLP will be deemed to have been reappointed as auditor 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.

This report was approved by the board and signed on its behalf.
 





................................................
C J Roberts
Director

Date: 10 September 2024

Page 6

 


TRIDENT GARAGES LIMITED
 

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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF TRIDENT GARAGES LIMITED

Qualified Opinion


We have audited the financial statements of Trident Garages Limited (the 'Company') for the year ended 31 December 2023, which comprise the Income Statement, the Statement of Financial Position, the Statement of Cash Flows, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe 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, except for the possible effects of the matter described in the basis for qualified opinion section of our report, the financial statements:


give a true and fair view of the state of the Company's affairs as at 31 December 2023 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for qualified opinion


The Company has not accounted for the pension, assets, and liabilities of the defined benefit pension scheme in accordance with FRS 102 Section 28 Employee Benefits. The pension costs have instead been accounted for as a defined contribution scheme, with no pension asset or liability recognised. The financial statements also do not include the relevant disclosures required by FRS 102 for a defined benefit pension scheme. As explained in Note 21, the last draft actuarial valuation for the pension scheme was carried out on 5 April 2023 by a qualified independent actuary, who identified that the scheme had a net surplus of £179,000. This valuation was carried out for funding purposes rather than on the basis required by FRS 102.  In the absence of an actuarial valuation at the year-end, we were unable to quantify the financial effect of the Company not accounting for the defined benefit pension scheme in accordance with FRS 102.


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 Auditors' 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 United Kingdom, including the Financial Reporting Council'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 qualified 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.


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TRIDENT GARAGES LIMITED


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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF TRIDENT GARAGES LIMITED (CONTINUED)

Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual ReportOur 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.


Opinion on other matters prescribed by the Companies Act 2006
 

Except for the possible effects of the matter described in the basis for qualified opinion section of our report, in our opinion, based on the work undertaken in the course of the audit:


the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

Except for the matter described in the basis for qualified opinion section of our report, 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.

Arising solely from the limitation on the scope of our work relating to the defined benefit pension scheme, referred to above:
we have not obtained all the information and explanations that we considered necessary for the purpose of our audit; and
we were unable to determine whether adequate accounting records have been kept.
 
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:
returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made.

 
Responsibilities of directors
 

As explained more fully in the Directors' Responsibilities Statement set out on page 5, 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.


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TRIDENT GARAGES LIMITED


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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF TRIDENT GARAGES LIMITED (CONTINUED)

Auditors' 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 Auditors' 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. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

The Company is subject to laws and regulations that directly affect the financial statements including financial reporting legislation. We determined that the following laws and regulations were most significant including:
 
The Companies Act 2006;
Financial Reporting Standard 102; and
General Data Protection Regulations.
 
We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.
We understood how the Company are complying with those legal and regulatory frameworks by making inquiries to management and those responsible for legal and compliance procedures. We corroborated our inquiries through our review of board minutes.
The engagement partner assessed whether the engagement team collectively had the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations. The assessment did not identify any issues in this area.
We assessed the susceptibility of the Company's financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the engagement team included:
 
Identifying and assessing the design effectiveness of controls that management has in place to prevent and detect fraud;
Understanding how those charged with governance considered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process;
Challenging assumptions and judgements made by management in its significant accounting estimates; and
Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations.
 
As a result of the above procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas:
 
Posting of journals to the accounting software which are of a non-routine nature in terms of timing and amount;
timing of revenue recognition;
the use of management override of controls to manipulate results.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.


A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.


Page 9

 


TRIDENT GARAGES LIMITED


img1389.png
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF TRIDENT GARAGES LIMITED (CONTINUED)

Use of 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 2006Our 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 Auditors' 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.





Tom Woods FCA (Senior Statutory Auditor)
  
for and on behalf of
Menzies LLP
 
Chartered Accountants
Statutory Auditor
  
1st Floor
Midas House
62 Goldsworth Road
Woking
Surrey
GU21 6LQ

11 September 2024
Page 10

 


TRIDENT GARAGES LIMITED
 


 
INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
Note
£
£

  

Turnover
 4 
28,126,853
27,543,062

Cost of sales
  
(24,487,331)
(23,984,661)

Gross profit
  
3,639,522
3,558,401

Administrative expenses
  
(3,153,128)
(2,813,216)

Other operating income
 5 
32,710
34,165

Operating profit
  
519,104
779,350

Interest receivable and similar income
  
3,285
562

Interest payable and similar expenses
 10 
(10,063)
(7,928)

Profit before tax
  
512,326
771,984

Tax on profit
 11 
(107,486)
(163,006)

Profit for the financial year
  
404,840
608,978

The notes on pages 17 to 30 form part of these financial statements.

Page 11

 


TRIDENT GARAGES LIMITED
REGISTERED NUMBER:00764299



STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Tangible fixed assets
 12 
4,874,546
4,822,957

  
4,874,546
4,822,957

Current assets
  

Stocks
 13 
1,638,990
1,568,351

Debtors: amounts falling due after more than one year
 14 
2,350,000
2,250,000

Debtors: amounts falling due within one year
 14 
512,970
1,257,157

Cash at bank and in hand
  
81,266
36,769

  
4,583,226
5,112,277

Creditors: amounts falling due within one year
 15 
(1,170,533)
(1,516,558)

Net current assets
  
 
 
3,412,693
 
 
3,595,719

Total assets less current liabilities
  
8,287,239
8,418,676

Creditors: amounts falling due after more than one year
 16 
-
(93,750)

Provisions for liabilities
  

Deferred tax
 18 
(754,404)
(757,683)

  
 
 
(754,404)
 
 
(757,683)

Net assets
  
7,532,835
7,567,243


Capital and reserves
  

Called up share capital 
 19 
187,200
211,200

Share premium account
 20 
10,550
10,550

Revaluation reserve
 20 
3,511,083
3,511,083

Capital redemption reserve
 20 
30,800
6,800

Profit and loss account
 20 
3,793,202
3,827,610

  
7,532,835
7,567,243


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 


................................................
R M Roberts
Director

Date: 10 September 2024

The notes on pages 17 to 30 form part of these financial statements.

Page 12


 
TRIDENT GARAGES LIMITED

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023



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


£
£
£
£
£
£


At 1 January 2023
211,200
10,550
6,800
3,511,083
3,827,610
7,567,243





Profit for the year
-
-
-
-
404,840
404,840

Total comprehensive income for the year
-
-
-
-
404,840
404,840


Dividends
-
-
-
-
(101,088)
(101,088)


Purchase of own shares
-
-
-
-
(338,160)
(338,160)


Shares cancelled during the year
(24,000)
-
-
-
-
(24,000)


Shares cancelled during the year
-
-
24,000
-
-
24,000



Total transactions with owners
(24,000)
-
24,000
-
(439,248)
(439,248)



At 31 December 2023
187,200
10,550
30,800
3,511,083
3,793,202
7,532,835



The notes on pages 17 to 30 form part of these financial statements.

Page 13


 
TRIDENT GARAGES LIMITED

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022



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


£
£
£
£
£
£


At 1 January 2022
211,200
10,550
6,800
3,511,083
3,399,748
7,139,381





Profit for the year
-
-
-
-
608,978
608,978

Total comprehensive income for the year
-
-
-
-
608,978
608,978


Dividends
-
-
-
-
(181,116)
(181,116)



Total transactions with owners
-
-
-
-
(181,116)
(181,116)



At 31 December 2022
211,200
10,550
6,800
3,511,083
3,827,610
7,567,243



The notes on pages 17 to 30 form part of these financial statements.

Page 14

 


TRIDENT GARAGES LIMITED
 



STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
£
£

Cash flows from operating activities

Profit for the financial year
404,840
608,978

Adjustments for:

Depreciation of tangible assets
62,830
40,768

Loss on disposal of tangible assets
254
401

Interest paid
10,063
7,928

Interest received
(3,285)
(562)

Taxation charge
107,523
163,006

(Increase)/decrease in stocks
(70,639)
122,934

Decrease/(increase) in debtors
288,956
(133,995)

(Decrease) in creditors
(19,401)
(521,618)

Corporation tax (paid)
(132,179)
(206,649)

Net cash generated from operating activities

648,962
81,191


Cash flows from investing activities

Purchase of tangible fixed assets
(114,673)
(91,996)

Interest received
3,285
562

Net cash from investing activities

(111,388)
(91,434)

Cash flows from financing activities

Repayment of loans
(156,250)
(62,500)

Dividends paid
(101,088)
(181,116)

Interest paid
(10,063)
(7,928)

Net cash used in financing activities
(267,401)
(251,544)

Net increase/(decrease) in cash and cash equivalents
270,173
(261,787)

Cash and cash equivalents at beginning of year
(188,907)
72,880

Cash and cash equivalents at the end of year
81,266
(188,907)


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
81,266
36,769

Bank overdrafts
-
(225,676)

81,266
(188,907)


The notes on pages 17 to 30 form part of these financial statements.

Page 15

 


TRIDENT GARAGES LIMITED
 



ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 DECEMBER 2023




At 1 January 2023
Cash flows
At 31 December 2023
£

£

£

Cash at bank and in hand

36,769

44,497

81,266

Bank overdrafts

(225,676)

225,676

-

Debt due after 1 year

(93,750)

93,750

-

Debt due within 1 year

(62,500)

62,500

-


(345,157)
426,423
81,266

The notes on pages 17 to 30 form part of these financial statements.

Page 16

 


TRIDENT GARAGES LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.


General information

Trident Garages Limited is a private company, limited by shares, incorporated in the United Kingdom under the Companies Act 2006, and registered in England and Wales. The registered office and principle place of activity can be found on the Company Information page.
The presentation currency of the financial statements is Pound Sterling (£).
The principal activity of the company in the year under review was that of garage proprietors.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Going concern

The directors have considered current trading together with available facilities and headroom and are confident that the company will be able to meet its debts as they fall due for the period of 12 months after the approval of these financial statements. Accordingly, the financial statements have been prepared on a going concern basis.

Page 17

 


TRIDENT GARAGES LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.3

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the Company has transferred the significant risks and rewards of ownership to the buyer;
the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

 
2.4

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

 
2.5

Interest income

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

 
2.6

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.7

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

Page 18

 


TRIDENT GARAGES LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.8

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate 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.

 
2.9

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

Page 19

 


TRIDENT GARAGES LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.10

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

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:

Freehold property
-
Not depreciated
Plant and machinery
-
25%-35% on reducing balance
Motor vehicles
-
25% on reducing balance

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.11

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell.

At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

  
2.12

Consignment stock

Honda retains title of the cars until sale to a third-party customer, which triggers transfer of the title to Trident Garages. Therefore, Trident Garages does not bear the substantial risks and rewards of ownership and so the consignment stock and corresponding creditor are not recognised in the financial statements.  

Page 20

 


TRIDENT GARAGES LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.13

Financial instruments

The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.

 
2.14

Dividends

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


3.


Judgments in applying accounting policies and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amount reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
The directors do not consider there to be any judgements or estimation uncertainty which materially impact these financial statements.


4.


Turnover

An analysis of turnover by class of business is as follows:


2023
2022
£
£

Sale of goods
26,725,883
26,228,372

Rendering of services
1,330,705
1,254,591

Commissions receivable
70,265
60,099

28,126,853
27,543,062


All turnover arose within the United Kingdom.


5.


Other operating income

2023
2022
£
£

Sundry income
32,710
34,165

32,710
34,165


Page 21

 


TRIDENT GARAGES LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

6.


Operating profit

The operating profit is stated after charging:

2023
2022
£
£

Depreciation
62,830
38,288

Loss on sale of fixed assets
254
401

Auditors' remuneration
22,000
19,500

Other operating lease rentals
25,000
25,000


7.


Employees

Staff costs, including directors' remuneration, were as follows:


2023
2022
£
£

Wages and salaries
1,830,962
1,721,267

Social security costs
185,286
184,398

Other pension costs
248,231
115,716

2,264,479
2,021,381


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


        2023
        2022
            No.
            No.







Employees
62
65


8.


Directors' remuneration

2023
2022
£
£

Directors' emoluments
330,730
311,317

Company contributions to defined contribution pension schemes
134,143
8,699

464,873
320,016


During the year retirement benefits were accruing to 3 directors (2022 - 3) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £146,055 (2022 - £136,500).

The value of the Company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £44,714 (2022 - £2,900).

Page 22

 


TRIDENT GARAGES LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

9.


Interest receivable

2023
2022
£
£


Other interest receivable
3,285
562

3,285
562


10.


Interest payable and similar expenses

2023
2022
£
£


Bank interest payable
1,199
824

Other loan interest payable
8,864
7,104

10,063
7,928


11.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
110,765
132,565


110,765
132,565


Total current tax
110,765
132,565

Deferred tax


Deferred tax
(3,279)
30,441

Total deferred tax
(3,279)
30,441


Taxation on profit on ordinary activities
107,486
163,006
Page 23

 


TRIDENT GARAGES LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
 
11.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is lower than (2022 - higher than) the standard rate of corporation tax in the UK of 23.52% (2022 - 19%). The differences are explained below:

2023
2022
£
£


Profit on ordinary activities before tax
512,326
771,984


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 23.52% (2022 - 19%)
120,499
146,677

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
1,285
3,707

Fixed asset differences
(7,804)
335

Remeasurement of deferred tax for changes in tax rates
(6,494)
12,287

Total tax charge for the year
107,486
163,006


Factors that may affect future tax charges

There were no factors that may affect future tax charges.



Page 24

 


TRIDENT GARAGES LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

12.


Tangible fixed assets





Freehold property
Plant and machinery
Motor vehicles
Total

£
£
£
£



Cost or valuation


At 1 January 2023
4,641,024
575,445
33,021
5,249,490


Additions
-
114,673
-
114,673


Disposals
-
(92,172)
-
(92,172)



At 31 December 2023

4,641,024
597,946
33,021
5,271,991



Depreciation


At 1 January 2023
-
397,016
29,517
426,533


Charge for the year on owned assets
-
61,953
877
62,830


Disposals
-
(91,918)
-
(91,918)



At 31 December 2023

-
367,051
30,394
397,445



Net book value



At 31 December 2023
4,641,024
230,895
2,627
4,874,546



At 31 December 2022
4,641,024
178,429
3,504
4,822,957


13.


Stocks

2023
2022
£
£

Vehicle stock
1,388,059
1,387,135

Work in progress
1,740
2,747

Parts stock
249,191
178,469

1,638,990
1,568,351


Page 25

 


TRIDENT GARAGES LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

14.


Debtors

2023
2022
£
£

Due after more than one year

Other debtors
2,350,000
2,250,000

2,350,000
2,250,000


2023
2022
£
£

Due within one year

Trade debtors
263,939
299,352

Other debtors
138,857
808,928

Prepayments and accrued income
110,174
148,877

512,970
1,257,157



15.


Creditors: Amounts falling due within one year

2023
2022
£
£

Bank overdrafts
-
225,676

Bank loans
-
62,500

Trade creditors
695,864
642,915

Corporation tax
110,802
132,179

Other taxes and social security
56,343
54,427

VAT
78,223
101,477

Other creditors
134,307
208,051

Accruals and deferred income
94,994
89,333

1,170,533
1,516,558


The bank overdraft is secured by a legal charge over Trident Garage, Ottershaw, Surrey.


16.


Creditors: Amounts falling due after more than one year

2023
2022
£
£

Bank loans
-
93,750

-
93,750


Page 26

 


TRIDENT GARAGES LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

17.


Loans


Analysis of the maturity of loans is given below:


2023
2022
£
£

Amounts falling due within one year

Bank loans
-
62,500


-
62,500

Amounts falling due 1-2 years

Bank loans
-
93,750


-
93,750



-
156,250


Page 27

 


TRIDENT GARAGES LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

18.


Deferred taxation




2023


£






At beginning of year
(757,683)


Charged to profit or loss
3,279



At end of year
(754,404)

The provision for deferred taxation is made up as follows:

2023
2022
£
£


Capital gains
(706,489)
(706,489)

Short term timing differences
8,437
6,556

Fixed asset timings differences
(56,352)
(57,750)

(754,404)
(757,683)


19.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



187,200 (2022 - 211,200) Ordinary shares of £1.00 each
187,200
211,200

During the year 24,000 shares worrth £1.00 each were purchased and cancelled by the Company. This has added an additional £24,000 into the Capital Redemption Reserve.
There are no rights or restrictions attached to the share capital. 


Page 28

 


TRIDENT GARAGES LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

20.


Reserves

Share premium account

This reserve includes any premiums received on issue of share capital. Any transaction costs associated with the issuing of shares are deducted from share premium.

Revaluation reserve

This reserve includes the uplift in respect of freehold property over the years.

Capital redemption reserve

This reserve includes the nominal value of shares repurchased by the company.

Profit and loss account

This reserve includes all current and prior period retained profits and losses, less dividends.


21.


Pension commitments

The company operates a defined benefit pension scheme in the UK named "Motor Industry Pension Plan Trident Garages Limited", the assets of which are funded separately from the company.
The company has not complied wtih FRS 102, section 28 Employee benefits, which requires that the scheme asset or liability be recognised in the Financial Statements for the year ended 31 December 2023. Noted below are some details in respect of the scheme.
The last draft actuarial valuation was carried out at 5 April 2023, by a qualified independent actuary, which identified that the scheme had a net surplus of £122,000.
As of December 2023 company contributions are 23.1% (2022: 34.5%) of pensionable pay on the basis that this amount is adequate for the purpose of securing the Statutory Funding Objective.
The scheme is closed to new members and so under the projected unit method, the current service cost would be expected to increase over time as members of the scheme approach retirement.
No asset or liability has been included in the financial statements in respect of the defined benefit pension scheme obligations.
The company also operates a defined contributions pension scheme, of which 3 directors are accruing benefits under. The assets of the scheme are held seperately 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 £148,231 (2022: £115,716). Amounts due to be paid to the fund at the year end are £Nil.

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TRIDENT GARAGES LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

22.


Commitments under operating leases

At 31 December 2023 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2023
2022
£
£


Not later than 1 year
31,868
31,868

Later than 1 year and not later than 5 years
109,155
116,023

Later than 5 years
49,097
74,097

190,120
221,988


23.


Related party transactions

During the year, total dividends of £101,088 were paid to the directors (2022: £181,116).
During the year, the vehicles sales made to the directors' family members amounted to £241,338 (2022: £224,100).
These transactions were transacted at market value.
During the year, Trident Garages Limited sponsored Woking & Sam Beare Hospice, raising £11,280 (2022: 15,262) which is a related party due to the common directorship of R M Roberts.


24.


Controlling party

There was no individual ultimate controlling party during the year under review or the preceding year.

 
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