Company registration number 05317259 (England and Wales)
YOULES MOTORCYCLES LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
YOULES MOTORCYCLES LIMITED
COMPANY INFORMATION
Directors
Mrs L J Youles
Mr P R Youles
Secretary
Mrs L J Youles
Company number
05317259
Registered office
Pendle Street
Copy Nook
Blackburn
Lancashire
BB1 1NG
Auditor
Douglass Grange
Ground Floor, Capricorn House
Capricorn Park
Blakewater Road
Blackburn
Lancashire
BB1 5QR
Business address
Pendle Street
Copy Nook
Blackburn
Lancashire
BB1 1NG
YOULES MOTORCYCLES LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 6
Statement of comprehensive income
7
Balance sheet
8
Statement of changes in equity
9
Statement of cash flows
10
Notes to the financial statements
11 - 21
YOULES MOTORCYCLES LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

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

Principal activities

The principal activity of the company continued to be that of the retail sale of motorcycles and accessories in the UK.

Review of the business

Total turnover for the year is £13.9m (2022: £11.5m) which is 20.9% higher than the previous year. The increase is mostly due to the new Honda store that opened in Manchester in 2022; it has been open for a full 12 months in 2023.

 

A gross profit of £2.86m (20.52%) has been achieved this year (2022: £2.4m (20.87%)). Gross profit is consistent and in line with management expectations.

 

Profit before tax is £570k (4.09%) compared to £585k (5.08%) in 2022. The main reasons for the drop in the profit % is an increase in wages cost (up 30% compared to the previous year) as a result of the Honda store being operating and fully staffed for the whole of 2023, and stocking loan costs have increased 91% (increases in rates charged plus more bikes on stocking loan than in the previous year).

 

The business environment in the year to 31 December 2023 remained fairly stable. There have been no major issues with the supply of motorbikes from dealers. Demand for bikes was steady with more demand in the summer months than the winter months, as in the norm for this type of product which is much more appealing in nicer weather.

 

 

Principal risks and uncertainties

As a company that sells high-quality and premium brand products, if faces risk in the current economic climate that a new motorcycle is out of reach for many buyers considering inflation and interest rates.

Key performance indicators

The Company's performance is monitored with reference to the number of bike sales, turnover and overheads. Management prepare monthly management accounts and monitor profit margins on every department. Dealership managers receive a bonus on net profits.

On behalf of the board

Mrs L J Youles
Director
30 August 2024
YOULES MOTORCYCLES LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -

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

Results and dividends

The results for the year are set out on page 7.

Ordinary dividends were paid amounting to £160,000. The directors do not recommend payment of a final dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mrs L J Youles
Mr P R Youles
Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
Mrs L J Youles
Director
30 August 2024
YOULES MOTORCYCLES LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -

The directors are responsible for preparing the annual 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 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:

 

 

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.

YOULES MOTORCYCLES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF YOULES MOTORCYCLES LIMITED
- 4 -
Opinion

We have audited the financial statements of Youles Motorcycles Limited (the 'company') for the year ended 31 December 2023 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including 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:

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 Auditor's 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 other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

YOULES MOTORCYCLES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF YOULES MOTORCYCLES LIMITED (CONTINUED)
- 5 -
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 directors' report.

 

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:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, 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.

Auditor's 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 auditor's 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.

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design our 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.

Based on our understanding of the Company and industry, we identified that the principal risks of non-compliance with laws and regulations related to employment law and consumer credit regulations, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the financial statements such as tax legislation and the Companies Act 2006. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks related to revenue recognition. Audit procedures were performed included:

- Discussions with management around actual and potential litigation and claims, and review of expense nominals for any evidence of such events;

- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;

- Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness;

- Auditing revenue completeness through analytical review, testing of controls and substantive tests.

There are inherent limitations in the audit procedures described above. 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. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

YOULES MOTORCYCLES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF YOULES MOTORCYCLES LIMITED (CONTINUED)
- 6 -

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Other matters which we are required to address

The comparative financial statements and corresponding figures of Youles Motorcycles Limited are unaudited.

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 an auditor's 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.

Anthea Grange FCA
Senior Statutory Auditor
For and on behalf of Douglass Grange
5 September 2024
Chartered Accountants
Statutory Auditor
Ground Floor, Capricorn House
Capricorn Park
Blakewater Road
Blackburn
Lancashire
BB1 5QR
YOULES MOTORCYCLES LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
2023
2022
Notes
£
£
Turnover
3
13,924,785
11,516,823
Cost of sales
(11,067,005)
(9,113,118)
Gross profit
2,857,780
2,403,705
Administrative expenses
(2,312,415)
(1,807,010)
Other operating income
40,000
-
0
Operating profit
4
585,365
596,695
Interest receivable and similar income
7
2,399
352
Interest payable and similar expenses
8
(17,865)
(12,076)
Profit before taxation
569,899
584,971
Tax on profit
9
(153,373)
(155,730)
Profit for the financial year
416,526
429,241

The profit and loss account has been prepared on the basis that all operations are continuing operations.

YOULES MOTORCYCLES LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 8 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
11
1,524,239
1,684,510
Current assets
Stocks
12
3,861,950
3,393,617
Debtors
13
87,147
178,581
Cash at bank and in hand
179,476
59,890
4,128,573
3,632,088
Creditors: amounts falling due within one year
14
(2,770,331)
(2,612,278)
Net current assets
1,358,242
1,019,810
Total assets less current liabilities
2,882,481
2,704,320
Creditors: amounts falling due after more than one year
15
(66,666)
(133,333)
Provisions for liabilities
Deferred tax liability
17
155,661
167,359
(155,661)
(167,359)
Net assets
2,660,154
2,403,628
Capital and reserves
Called up share capital
19
75,000
75,000
Profit and loss reserves
2,585,154
2,328,628
Total equity
2,660,154
2,403,628

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 30 August 2024 and are signed on its behalf by:
Mr P R Youles
Director
Company registration number 05317259 (England and Wales)
YOULES MOTORCYCLES LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 January 2022
75,100
2,033,287
2,108,387
Year ended 31 December 2022:
Profit and total comprehensive income
-
429,241
429,241
Dividends
10
-
(134,000)
(134,000)
Reduction of shares
19
(100)
100
-
0
Balance at 31 December 2022
75,000
2,328,628
2,403,628
Year ended 31 December 2023:
Profit and total comprehensive income
-
416,526
416,526
Dividends
10
-
(160,000)
(160,000)
Balance at 31 December 2023
75,000
2,585,154
2,660,154
YOULES MOTORCYCLES LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
21
492,407
813,744
Interest paid
(17,865)
(12,076)
Income taxes paid
(79,148)
(100,143)
Net cash inflow from operating activities
395,394
701,525
Investing activities
Purchase of tangible fixed assets
(79,396)
(704,722)
Proceeds from disposal of tangible fixed assets
34,472
625
Interest received
2,399
352
Net cash used in investing activities
(42,525)
(703,745)
Financing activities
Repayment of bank loans
(65,678)
(66,667)
Payment of finance leases obligations
-
0
(195)
Dividends paid
(160,000)
(134,000)
Net cash used in financing activities
(225,678)
(200,862)
Net increase/(decrease) in cash and cash equivalents
127,191
(203,082)
Cash and cash equivalents at beginning of year
(135,546)
67,536
Cash and cash equivalents at end of year
(8,355)
(135,546)
Relating to:
Cash at bank and in hand
179,476
59,890
Bank overdrafts included in creditors payable within one year
(187,831)
(195,436)
YOULES MOTORCYCLES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
1
Accounting policies
Company information

Youles Motorcycles Limited is a private company limited by shares incorporated in England and Wales. The registered office is Pendle Street, Copy Nook, Blackburn, Lancashire, BB1 1NG.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.

1.2
Going concern

Atruet 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.

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts and settlement discounts.

Revenue from the sale of motorcycles is recognised when the vehicle is collected. Collection only takes place once the motorcycle(s) accepted in part-exchange have been received, finance for the motorcycle has been received where applicable, and payment of any outstanding balance has been received from the customer.

 

Revenue from the sale of ancillary goods is recognised when payment is received and the goods are collected or dispatched.

Revenue from the sale of servicing and repair of motorcycles is recognised when the work is complete and payment is received.

1.4
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 improvements
10% reducing balance
Plant and machinery
15% reducing balance
Fixtures, fittings & equipment
15% reducing balance
Computer equipment
15% straight line
Motor vehicles
25% reducing balance

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

YOULES MOTORCYCLES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 12 -
1.5
Impairment of fixed assets

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

1.6
Stocks

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

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

Part-exchange motorcycles are recognised as stock when the sale of the new motorcycle takes place.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.7
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.8
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

YOULES MOTORCYCLES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 13 -
Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

YOULES MOTORCYCLES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -
Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.9
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.10
Derivatives

Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.

 

A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability.

1.11
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.12
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

YOULES MOTORCYCLES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -
1.13
Retirement benefits
The company operates a defined contribution scheme for the benefit of its employees. Contributions payable are charged to the profit and loss account in the year they are payable.
1.14
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

1.15
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3
Turnover and other revenue

An analysis of the company's turnover is as follows:

2023
2022
£
£
Turnover analysed by class of business
Sale of goods
13,924,785
11,516,823
2023
2022
£
£
Other revenue
Interest income
2,399
352
4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
8,000
-
0
Depreciation of owned tangible fixed assets
206,478
195,451
Profit on disposal of tangible fixed assets
(1,283)
(467)
Operating lease charges
195,296
152,846
YOULES MOTORCYCLES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 16 -
5
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2023
2022
Number
Number
Wages
16
14
Technicians
15
12
After sales
10
7
Administration
6
4
Total
47
37

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
1,255,568
967,815
Social security costs
110,109
88,039
Pension costs
80,060
75,186
1,445,737
1,131,040
6
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
16,600
17,920
Company pension contributions to defined contribution schemes
45,000
48,000
61,600
65,920
7
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
2,362
346
Other interest income
37
6
Total income
2,399
352
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
2,362
346
YOULES MOTORCYCLES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 17 -
8
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
16,260
11,336
Other interest on financial liabilities
1,605
-
0
17,865
11,336
Other finance costs:
Interest on finance leases and hire purchase contracts
-
33
Other interest
-
0
707
17,865
12,076
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
165,071
79,111
Adjustments in respect of prior periods
-
0
2,983
Total current tax
165,071
82,094
Deferred tax
Origination and reversal of timing differences
(11,698)
73,636
Total tax charge
153,373
155,730

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Profit before taxation
569,899
584,971
Expected tax charge based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
134,040
111,144
Tax effect of expenses that are not deductible in determining taxable profit
-
0
19
Effect of change in corporation tax rate
-
0
40,902
Permanent capital allowances in excess of depreciation
(78)
(11,770)
Depreciation on assets not qualifying for tax allowances
20,099
15,435
Tax at marginal rate
(688)
-
0
Taxation charge for the year
153,373
155,730
YOULES MOTORCYCLES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 18 -
10
Dividends
2023
2022
£
£
Interim paid
160,000
134,000
11
Tangible fixed assets
Leasehold improvements
Plant and machinery
Fixtures, fittings & equipment
Computer equipment
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 January 2023
1,807,619
306,725
578,563
88,291
133,731
2,914,929
Additions
54,826
22,883
1,687
-
0
-
0
79,396
Disposals
(29,226)
(2,500)
(2,246)
-
0
-
0
(33,972)
At 31 December 2023
1,833,219
327,108
578,004
88,291
133,731
2,960,353
Depreciation and impairment
At 1 January 2023
562,725
158,786
364,291
75,358
69,259
1,230,419
Depreciation charged in the year
124,174
23,779
32,086
4,046
22,393
206,478
Eliminated in respect of disposals
-
0
(783)
-
0
-
0
-
0
(783)
At 31 December 2023
686,899
181,782
396,377
79,404
91,652
1,436,114
Carrying amount
At 31 December 2023
1,146,320
145,326
181,627
8,887
42,079
1,524,239
At 31 December 2022
1,244,894
147,939
214,272
12,933
64,472
1,684,510
12
Stocks
2023
2022
£
£
Finished goods and goods for resale
3,861,950
3,393,617
13
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
44,789
68,740
Other debtors
3,244
76,329
Prepayments and accrued income
39,114
33,512
87,147
178,581
YOULES MOTORCYCLES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 19 -
14
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Bank loans and overdrafts
16
255,487
262,103
Trade creditors
1,844,909
1,707,329
Corporation tax
165,034
79,111
Other taxation and social security
114,019
22,978
Other creditors
257,310
385,604
Accruals and deferred income
133,572
155,153
2,770,331
2,612,278

Trade creditors includes stocking loans amounted to £1,564,421 (2022: £1,391,246) with Honda Financial Services and Wells Fargo.

 

Honda Finance Europe PLC have a fixed and floating charge covering all the property or undertaking of the Company.

15
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Bank loans and overdrafts
16
66,666
133,333
16
Loans and overdrafts
2023
2022
£
£
Bank loans
134,322
200,000
Bank overdrafts
187,831
195,436
322,153
395,436
Payable within one year
255,487
262,103
Payable after one year
66,666
133,333

The bank loan and overdraft are secured by fixed and floating charges over all present and future assets of the Company.

YOULES MOTORCYCLES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
17
Deferred taxation

Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
155,661
167,359
2023
Movements in the year:
£
Liability at 1 January 2023
167,359
Credit to profit or loss
(11,698)
Liability at 31 December 2023
155,661

The deferred tax liability amount that is expected to reverse within 12 months following the end of the financial year is £24,913 and relates to accelerated capital allowances that are expected to mature within the same period.

18
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
80,060
75,186

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

19
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A share of £1 each
37,400
37,400
37,400
37,400
Ordinary B share of £1 each
37,400
37,400
37,400
37,400
Ordinary C share of £1 each
100
100
100
100
Ordinary D share of £1 each
100
100
100
100
75,000
75,000
75,000
75,000
YOULES MOTORCYCLES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
20
Directors' transactions

Dividends totalling £106,000 (2022 - £106,000) were paid in the year in respect of shares held by the company's directors.

21
Cash generated from operations
2023
2022
£
£
Profit for the year after tax
416,526
429,241
Adjustments for:
Taxation charged
153,373
155,730
Finance costs
17,865
12,076
Investment income
(2,399)
(352)
Gain on disposal of tangible fixed assets
(1,283)
(467)
Depreciation and impairment of tangible fixed assets
206,478
195,451
Movements in working capital:
Increase in stocks
(468,333)
(1,375,687)
Decrease/(increase) in debtors
91,434
(119,751)
Increase in creditors
78,746
1,517,503
Cash generated from operations
492,407
813,744
22
Analysis of changes in net debt
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
59,890
119,586
179,476
Bank overdrafts
(195,436)
7,605
(187,831)
(135,546)
127,191
(8,355)
Borrowings excluding overdrafts
(200,000)
65,678
(134,322)
(335,546)
192,869
(142,677)
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