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REGISTERED NUMBER: 03012938 (England and Wales)













BASSETTS (WALES) LTD

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023






BASSETTS (WALES) LTD (REGISTERED NUMBER: 03012938)

CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023










Page

Company Information 1

Strategic Report 2

Report of the Directors 4

Report of the Independent Auditors 6

Income Statement 10

Other Comprehensive Income 11

Balance Sheet 12

Statement of Changes in Equity 13

Notes to the Financial Statements 14


BASSETTS (WALES) LTD

COMPANY INFORMATION
FOR THE YEAR ENDED 31 DECEMBER 2023







DIRECTORS: Mrs D Fry
Mr E H Francis





SECRETARY: Mr E H Francis





REGISTERED OFFICE: Valley Way
The Enterprise Park
Swansea
West Glamorgan
SA6 8QX





REGISTERED NUMBER: 03012938 (England and Wales)





AUDITORS: Redwood Wales Limited
3 New Mill Court
Enterprise Park
Swansea
SA7 9FG

BASSETTS (WALES) LTD (REGISTERED NUMBER: 03012938)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023


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

REVIEW OF BUSINESS
The principal activity of the company during the year was that of a motor dealership. The company is part of the Bassetts Group which has grown to be one of the top motor dealers in South Wales today, representing motor manufacturers Citroen, Honda, Nissan, Jaecoo, Omoda and KGM with dealerships across the region.

In a very difficult new car market the company enjoys a number of competitive advantages including strong local brand recognition in its heartland trading region and market share of the vehicle franchise it represents. In relation to vehicle and after sales, turnover increased by 7.8% during the year to £25 million primarily due to vehicle registrations increasing in the industry during 2023, the company continues to mitigate impact on margins by taking strategic steps to reduce expenses wherever possible.

The focus for the future is to develop the culture of continuous development to the benefit of our customers, our company and our employees.

Key performance indicators
2023 2022
Revenue £25,116,497 £23,284,619
Gross Profit £2,134,223 £2.339,860
Gross Profit % 8.4% 10%
Profit before Tax £1,605,607 £54,889

PRINCIPAL RISKS AND UNCERTAINTIES
The principal risk facing the Group is the strength of the UK economy while it continues to recover after the Coronavirus outbreak and its decision to leave the EU, the repercussions of both remain relatively unknown and the effect they will have on the demand for new and used vehicles. The industry saw new car registrations increase during 2023 but the Society of Motor Manufacturers and Traders believe such a significant increase should not be expected going forward. New vehicle technologies and government legislation in relation to emissions and environmental concerns will ensure that new vehicles will remain relevant in contributing to turnover. However to mitigate the economic risk, specifically the UK exiting the European Union and potential price increases, the Group will look to capitalise on current consumer demands for used vehicles, while also focusing further on aftermarket services.

FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
The company operates a number of risk management policies designed to minimise its exposure to financial risk.

LIQUIDITY AND CASH FLOW RISK
The company produces detailed management accounts and forecasts, which enable the directors to monitor the cash position and to ensure that there is sufficient liquidity and cash flow to minimise the risk of the company being unable to pay its debts as they fall due.

INTEREST RATE RISK
The company utilises a number of financial instruments including bank overdrafts in order to finance its operations. The primary risk faced by the company as a result of its use of these financial instruments is interest rate risk.

The bank overdraft borrowings at variable rates expose the company to cash-flow interest rate risk, however the directors actively manage risk by maintaining sufficient cash reserves within the company to avoid using its overdraft facility wherever possible.

CREDIT RISK
The company operates a number of policies and controls to minimise credit risk. All customers are subject to a detailed credit review prior to any terms being agrees directors must authorise any larger value contracts and the company will only conduct business with customers deemed to be credit-worthy.


BASSETTS (WALES) LTD (REGISTERED NUMBER: 03012938)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

PRICE RISK
The company activly manages price risk by agreeing terms with suppliers prior to entering into any transactions with customers.

ON BEHALF OF THE BOARD:





Mr E H Francis - Director


6 September 2024

BASSETTS (WALES) LTD (REGISTERED NUMBER: 03012938)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 DECEMBER 2023


The directors present their report with the financial statements of the company for the year ended 31 December 2023.

PRINCIPAL ACTIVITIES
The principal activities of the company in the year under review were those of Sale of new and used cars

DIVIDENDS
Total dividends paid during the year were £NIL (2022: £NIL).

DIRECTORS
The directors shown below have held office during the whole of the period from 1 January 2023 to the date of this report.

Mrs D Fry
Mr E H Francis

FUTURE DEVELOPMENTS AND GOING CONCERN
The company will continue to focus on sustained profitability and growth. The company's primary aim will be to continue to concentrate on delivering a consistently high level of service to all of its customers.

The financial statements have been prepared on a going concern basis which assumes that the company will continue in operational existence for the foreseeable future. In making their assessment the directors have reviewed the balance sheet, the likely future cash flows of the business and have considered the facilities that are in place at the date of signing the report.

The company meets its day to day working capital requirements from its cash reserves and overdraft facilities, from the company's forecasts and projections. However, the extent of reduced consumer spending is unclear and it is difficult to evaluate all potential implications on the companys trade, customers, suppliers and the wider economy.

The directors have a reasonable expectation that with the continued support of its bankers and funders in the form of facility levels which it has historically been provided with, in the scenarios reviewed the company will be able to continue to operate within those facilities.

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

DIRECTORS' RESPONSIBILITIES STATEMENT
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-select suitable accounting policies and then apply them consistently;
-make judgements 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.


BASSETTS (WALES) LTD (REGISTERED NUMBER: 03012938)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 DECEMBER 2023

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS
Redwood Wales Limited, were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

ON BEHALF OF THE BOARD:





Mr E H Francis - Director


6 September 2024

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
BASSETTS (WALES) LTD


Opinion
We have audited the financial statements of Bassetts (Wales) Ltd (the 'company') for the year ended 31 December 2023 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
-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 opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the 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 UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, 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 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.

Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
BASSETTS (WALES) LTD


Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or 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; or
- we have not received all the information and explanations we require for our audit.

Responsibilities of directors
As explained more fully in the Directors' Responsibilities Statement set out on pages four and five, 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 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.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
BASSETTS (WALES) LTD


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 a Report of the Auditors 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We obtain an understanding of the legal and regulatory frameworks that the company operates in, focusing on those laws and regulations that had a direct effect on the Financial Statements or that had a fundamental effect on operations of the company. The key laws and regulations we consider in this context include UK Companies Act and relevant tax legislation.

Audit procedures performed by the engagement team to respond to the risk of irregularities and non-compliance with laws and regulations, including fraud, include the following:

- discussions with management to enquire of any known instances of non-compliance with laws and regulations, including fraud;
- discussions with management in respect of any actual or potential litigation claims;
- performing analytical procedure to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;
- testing the appropriateness of journal enteries and other adjustments to address the risk of fraud through management override of controls;
- review of the financial statement disclosures and testing to supporting documentation to assess compliance with relevant laws and regulations; and
- evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

There are inherent limitations in the audit procedures which means we are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. The risk of not detecting material misstatement due to fraud is higher than the risk of non detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forger or intentional misrepresentations, or through collusion.

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 Report of the Auditors.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
BASSETTS (WALES) LTD


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 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors 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.




Mark Howells FCCA (Senior Statutory Auditor)
for and on behalf of Redwood Wales Limited
3 New Mill Court
Enterprise Park
Swansea
SA7 9FG

6 September 2024

BASSETTS (WALES) LTD (REGISTERED NUMBER: 03012938)

INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023

2023 2022
Notes £    £   

TURNOVER 4 25,116,497 23,284,619

Cost of sales 22,982,274 20,944,759
GROSS PROFIT 2,134,223 2,339,860

Administrative expenses 555,565 2,368,721
1,578,658 (28,861 )

Other operating income 30,000 83,750
OPERATING PROFIT 6 1,608,658 54,889


Interest payable and similar expenses 8 3,051 -
PROFIT BEFORE TAXATION 1,605,607 54,889

Tax on profit 9 17,783 -
PROFIT FOR THE FINANCIAL YEAR 1,587,824 54,889

BASSETTS (WALES) LTD (REGISTERED NUMBER: 03012938)

OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023

2023 2022
Notes £    £   

PROFIT FOR THE YEAR 1,587,824 54,889


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR THE
YEAR

1,587,824

54,889

BASSETTS (WALES) LTD (REGISTERED NUMBER: 03012938)

BALANCE SHEET
31 DECEMBER 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 10 406,319 355,107

CURRENT ASSETS
Stocks 11 3,165,832 3,390,991
Debtors 12 790,913 640,304
Cash in hand 1,902 7,804
3,958,647 4,039,099
CREDITORS
Amounts falling due within one year 13 1,814,190 3,449,036
NET CURRENT ASSETS 2,144,457 590,063
TOTAL ASSETS LESS CURRENT LIABILITIES 2,550,776 945,170

PROVISIONS FOR LIABILITIES 15 38,282 20,500
NET ASSETS 2,512,494 924,670

CAPITAL AND RESERVES
Called up share capital 16 100,000 100,000
Retained earnings 17 2,412,494 824,670
SHAREHOLDERS' FUNDS 2,512,494 924,670

The financial statements were approved by the Board of Directors and authorised for issue on 6 September 2024 and were signed on its behalf by:





Mr E H Francis - Director


BASSETTS (WALES) LTD (REGISTERED NUMBER: 03012938)

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

Called up
share Retained Total
capital earnings equity
£    £    £   
Balance at 1 January 2022 100,000 769,781 869,781

Changes in equity
Total comprehensive income - 54,889 54,889
Balance at 31 December 2022 100,000 824,670 924,670

Changes in equity
Total comprehensive income - 1,587,824 1,587,824
Balance at 31 December 2023 100,000 2,412,494 2,512,494

BASSETTS (WALES) LTD (REGISTERED NUMBER: 03012938)

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


1. STATUTORY INFORMATION

Bassetts (Wales) Ltd is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Financial Reporting Standard 102 - reduced disclosure exemptions
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 4 'Statement of financial position' - Reconciliation of the opening and closing number of shares;
- Section 7 'Statement of Cash flows' - Presentation of a statement of cash flow and related notes and disclosures;
- Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instrument Issues' - Carrying amounts, interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss nd in other comprehensive income;
- Section 33 'Related Party Disclosures'.

The financial statements of the company are consolidated in the financial statements of Bassett Property Holdings Limited. These consolidated financial statements are available from its registered office, Valley Way, Swansea Enterprise Park, Swansea, SA6 8QX.

Going concern
The financial statements have been prepared on a going concern basis which assumes that the company will continue in operational existence for the foreseeable future. In making their assessment the directors have reviewed the balance sheet, the likely future cash flows of the business and have considered the facilities that are in place at the date of signing the report.

The company meets its day to day working capital requirements from its cash reserves and overdraft facilities, from the company's forecasts and projections. However, the extent of reduced consumer spending is unclear and it is difficult to evaluate all potential implications on the companys trade, customers, suppliers and the wider economy.

The directors have a reasonable expectation that with the continued support of its bankers and funders in the form of facility levels which it has historically been provided with, in the scenarios reviewed the company will be able to continue to operate within those facilities.

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

BASSETTS (WALES) LTD (REGISTERED NUMBER: 03012938)

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


2. ACCOUNTING POLICIES - continued

Turnover
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on supply of vehicles and parts or when mechanical services have been completed), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

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

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

Leasehold improvements1% straight line
Plant and machinery10% straight line
Fixtures, fittings and equipment10% 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 the profit or loss.
Depreciation is not charged during the year where impairment adjustments exist.

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

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

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

BASSETTS (WALES) LTD (REGISTERED NUMBER: 03012938)

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


2. ACCOUNTING POLICIES - continued

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

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stock 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.

The ownership of consignment stock passes from the manufacturer to the group when full payment for the vehicles is made.

The value of consignment stock is shown separately in the notes to the balance sheet as both current assets and as creditors due within one year.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

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 on which economic benefits from the leases asset are consumed.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Government grants
Government grants are recognised at the fair value of the assets received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

BASSETTS (WALES) LTD (REGISTERED NUMBER: 03012938)

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


2. ACCOUNTING POLICIES - continued

Related party transactions
The company entered into transactions with related parties during the year. The related parties consist of fellow group companies where the transactions are eliminated upon consolidation in the consolidated accounts of the holding company Bassetts Property Holdings Limited. The company has taken advantage of the exemption under FRS102 not to disclose such transactions.

Employee benefits
The cost 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 asset.

The cost of any unused holiday entitlement is recognised in the period in which the employees 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.

3. CRITICAL ACCOUNTING 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. Such estimates and assumptions are as follows:

Stock
Stocks are valued at the lower of cost and net realisable value. Net realisable value includes, where necessary, provisions for slow moving and obsolete stocks. The market value of motor vehicles varies constantly and therefore the company attempts to mitigate any risk by frequently using guidance from independent industry valuation tools. Calculation of these provisions requires judgements to be made, which include forecast customer demand, the economic environment and guidance from independent industry valuation tools.

4. TURNOVER

The turnover and profit before taxation are attributable to the principal activities of the company.

An analysis of turnover by class of business is given below:

2023 2022
£    £   
Vehicles, parts and service 25,116,497 23,284,619
25,116,497 23,284,619

BASSETTS (WALES) LTD (REGISTERED NUMBER: 03012938)

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


4. TURNOVER - continued

An analysis of turnover by geographical market is given below:

2023 2022
£    £   
United Kingdom 25,116,497 23,284,619
25,116,497 23,284,619

5. EMPLOYEES AND DIRECTORS
2023 2022
£    £   
Wages and salaries 1,364,171 1,395,918
Social security costs 130,163 145,854
Other pension costs 27,305 28,739
1,521,639 1,570,511

The average number of employees during the year was as follows:
2023 2022

Total 43 41

2023 2022
£    £   
Directors' remuneration - -

6. OPERATING PROFIT

The operating profit is stated after charging:

2023 2022
£    £   
Other operating leases 217,315 233,746
Depreciation - owned assets 23,700 19,381
Auditors' remuneration 7,250 7,250

7. EXCEPTIONAL ITEMS
2023 2022
£    £   
Write off parent company loan 1,893,221 -

8. INTEREST PAYABLE AND SIMILAR EXPENSES
2023 2022
£    £   
Finance charges 3,051 -

BASSETTS (WALES) LTD (REGISTERED NUMBER: 03012938)

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


9. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2023 2022
£    £   
Deferred tax 17,783 -
Tax on profit 17,783 -

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

2023 2022
£    £   
Profit before tax 1,605,607 54,889
Profit multiplied by the standard rate of corporation tax in the UK of 19%
(2022 - 19%)

305,065

10,429

Effects of:
Expenses not deductible for tax purposes (349 ) 456
Income not taxable for tax purposes (5,700 ) -
Capital allowances in excess of depreciation (4,383 ) (17,890 )
Utilisation of tax losses 65,079 -
Group relief - 7,005
Deferred tax movement 17,783 -
Write off loan to parent (359,712 ) -
Total tax charge 17,783 -

BASSETTS (WALES) LTD (REGISTERED NUMBER: 03012938)

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


10. TANGIBLE FIXED ASSETS
Improvements Fixtures
to Plant and and
property machinery fittings Totals
£    £    £    £   
COST
At 1 January 2023 141,782 215,503 175,619 532,904
Additions 28,007 8,596 38,309 74,912
At 31 December 2023 169,789 224,099 213,928 607,816
DEPRECIATION
At 1 January 2023 4,486 145,015 28,296 177,797
Charge for year 1,296 7,153 15,251 23,700
At 31 December 2023 5,782 152,168 43,547 201,497
NET BOOK VALUE
At 31 December 2023 164,007 71,931 170,381 406,319
At 31 December 2022 137,296 70,488 147,323 355,107

11. STOCKS
2023 2022
£    £   
Motor vehicles and parts 2,578,697 3,190,299
Consignment stock 587,135 200,692
3,165,832 3,390,991

12. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade debtors 540,819 465,907
Other debtors 250,094 174,397
790,913 640,304

BASSETTS (WALES) LTD (REGISTERED NUMBER: 03012938)

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


13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Bank loans and overdrafts (see note 14) 79,250 212,510
Trade creditors 625,577 1,044,660
Amounts owed to group undertakings 350,001 1,688,800
Social security and other taxes 32,401 30,217
VAT 45,946 144,142
Other creditors 589,226 200,692
Accruals and deferred income 91,789 128,015
1,814,190 3,449,036

Other creditors includes consignment stock of £587,135 (2022: £200,691).

14. LOANS

An analysis of the maturity of loans is given below:

2023 2022
£    £   
Amounts falling due within one year or on demand:
Bank overdrafts 79,250 212,510

Bank overdrafts are secured by fixed and floating charges over assets of the company.

15. PROVISIONS FOR LIABILITIES
2023 2022
£    £   
Deferred tax 38,282 20,500

Deferred
tax
£   
Balance at 1 January 2023 20,500
Provided during year 17,782
Balance at 31 December 2023 38,282

16. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
100,000 Ordinary £1 100,000 100,000

BASSETTS (WALES) LTD (REGISTERED NUMBER: 03012938)

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


17. RESERVES
Retained
earnings
£   

At 1 January 2023 824,670
Profit for the year 1,587,824
At 31 December 2023 2,412,494

18. CAPITAL COMMITMENTS
2023 2022
£    £   
Contracted but not provided for in the
financial statements 150,000 -

19. ULTIMATE CONTROLLING PARTY

The company is a wholly owned subsidiary of the parent company Bassett Property Holdings Limited, a company incorporated In the UK.

Bassett Property Holdings Limited prepare consolidated financial statements of which the results of this company are included. The consolidated financial statements are available at the registered office.

Mr E H Francis is considered to be the ultimate controlling party by virtue of his majority shareholding in the parent company.