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Registered number: 02602575









MR TYRE LIMITED









ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

 
MR TYRE LIMITED
 
 
COMPANY INFORMATION


Directors
A G Williams 
P Bamford 




Company secretary
J C Davy



Registered number
02602575



Registered office
2 Station Road

Lichfield

WS13 6HX




Independent auditors
PKF Smith Cooper Audit Limited
Statutory Auditors

158 Edmund Street

Birmingham

B3 2HB





 
MR TYRE LIMITED
 

CONTENTS



Page
Strategic Report
1
Directors' Report
2 - 3
Independent Auditors' Report
4 - 7
Statement of Comprehensive Income
8
Balance Sheet
9 - 10
Statement of Changes in Equity
11
Notes to the Financial Statements
12 - 28


 
MR TYRE LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

Introduction
 
The Company continued its activities as a retailer of motor vehicle tyres, exhaust systems and ancillary products and services in the UK.

Business review
 
Turnover has increase by 14% from £20.8m to £23.8m and gross profit improved to 52.8% (2022 - 50.9%).
The number of trading outlets was 36 (
2022 - 36).

Principal risks and uncertainties
 
The company purchases tyres and other products from national distributors and wholesalers, the cost of which has to be carefully monitored to ensure that gross margins are maintained at appropriate levels.
The directors regularly review market trends and customer data to assist in making strategic decisions.

Financial key performance indicators
 
The Directors consider the Company's KPIs to be gross profit 52.8% (2022- 50.9%), net profit before tax 8.3% (2022 - 5.8%), gross profit per depot £54k (2022 - £34k) and earnings before interest, taxation, depreciation and amortisation £2.6m (2022 - £1.8m).

Future developments
 
The Company continues to focus on the development of its retail chain of depots, which stood at 36 (2022 - 36) sites at the Company year-end. A new depot opened in February 2024. The Directors are continually investigating further potential sites for their outlet chain.


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





A G Williams
Director

Date: 4 September 2024

Page 1

 
MR TYRE 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' 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 £1,501,384 (2022 - £970,663).

Interim dividends on the Ordinary and A Ordinary shares of £1,505,000 were paid during the year. The Directors recommend that no final dividend be paid.
The total distribution of dividends was £1,505,000 (
2022 - £790,000).

Directors

The directors who served during the year were:

A G Williams 
P Bamford 

Matters covered in the strategic report

Comments on future developments are disclosed in the strategic report on page 1.

Page 2

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

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.

Post balance sheet events

Post balance sheet events are disclosed in the notes to these financial statements.

Auditors

The auditorsPKF Smith Cooper Audit Limitedwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

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





A G Williams
Director

Date: 4 September 2024

Page 3

 
MR TYRE LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MR TYRE LIMITED
 

Opinion


We have audited the financial statements of Mr Tyre 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 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 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 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 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.


Page 4

 
MR TYRE LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MR TYRE 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
 

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
 

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:


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 page 2, 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.


Page 5

 
MR TYRE LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MR TYRE 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:

Based on our understanding of the company and industry, key laws and regulations that we have identified included:
 
Companies Act;
Tax legislation; and
Health and safety and employment legislation.
 
We identified that the principal risk of non-compliance with laws and regulations related to:
 
management bias in respect of accounting estimates and judgements made;
management override of control; and
posting of unusual journals or transactions.
 
We focused on those areas that could give rise to a material misstatement in the Company financial statements. Our procedures included, but were not limited to:
 
Enquiry of management and those charged with governance and review of correspondence around actual and potential litigation and claims, including instances of non-compliance with laws and regulations and fraud;
Reviewing legal expenditure in the year to identify instances of non-compliance with laws and regulations and fraud;
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations; and
Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias.
 
It is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.


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.


Page 6

 
MR TYRE LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MR TYRE LIMITED (CONTINUED)


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.


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.





Stephen Newman (Senior Statutory Auditor)
  
for and on behalf of
PKF Smith Cooper Audit Limited
 
Statutory Auditors
  
158 Edmund Street
Birmingham
B3 2HB

9 September 2024
Page 7

 
MR TYRE LIMITED
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
Note
£
£

  

Turnover
 4 
23,750,850
20,796,008

Cost of sales
  
(11,217,451)
(10,221,211)

Gross profit
  
12,533,399
10,574,797

Administrative expenses
  
(10,477,002)
(9,226,115)

Other operating income
 5 
5,601
11,200

Operating profit
 6 
2,061,998
1,359,882

Interest receivable
 10 
2,301
-

Interest payable
 11 
(102,634)
(123,399)

Profit before tax
  
1,961,665
1,236,483

Tax on profit
 12 
(460,281)
(265,820)

Profit for the financial year
  
1,501,384
970,663

There was no other comprehensive income for 2023 (2022: £NIL).

The notes on pages 12 to 28 form part of these financial statements.

Page 8

 
MR TYRE LIMITED
REGISTERED NUMBER: 02602575

BALANCE SHEET
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Intangible assets
 14 
52,462
104,925

Tangible assets
 15 
2,195,152
3,442,840

  
2,247,614
3,547,765

Current assets
  

Stocks
 16 
1,787,111
1,766,471

Debtors: amounts falling due within one year
 17 
11,660,715
10,560,564

Cash at bank and in hand
 18 
718,478
732,089

  
14,166,304
13,059,124

Creditors: amounts falling due within one year
 19 
(7,923,122)
(7,321,070)

Net current assets
  
 
 
6,243,182
 
 
5,738,054

Total assets less current liabilities
  
8,490,796
9,285,819

Creditors: amounts falling due after more than one year
 20 
(421,972)
(1,169,704)

Provisions for liabilities
  

Deferred tax
 23 
(151,031)
(194,706)

Net assets
  
7,917,793
7,921,409


Capital and reserves
  

Called up share capital 
 24 
11,000
11,000

Share premium account
 25 
64,000
64,000

Revaluation reserve
 25 
4,021
4,731

Profit and loss account
 25 
7,838,772
7,841,678

  
7,917,793
7,921,409


Page 9

 
MR TYRE LIMITED
REGISTERED NUMBER: 02602575
    
BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2023

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




A G Williams
Director

Date: 4 September 2024

The notes on pages 12 to 28 form part of these financial statements.

Page 10

 
MR TYRE LIMITED
 

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


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

£
£
£
£
£


At 1 January 2022
11,000
64,000
5,566
7,660,180
7,740,746



Profit for the year
-
-
-
970,663
970,663

Dividends
-
-
-
(790,000)
(790,000)

Transfer to profit and loss account
-
-
(835)
835
-



At 1 January 2023
11,000
64,000
4,731
7,841,678
7,921,409



Profit for the year
-
-
-
1,501,384
1,501,384

Dividends
-
-
-
(1,505,000)
(1,505,000)

Transfer to/from profit and loss account
-
-
(710)
710
-


At 31 December 2023
11,000
64,000
4,021
7,838,772
7,917,793


The notes on pages 12 to 28 form part of these financial statements.

Page 11

 
MR TYRE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.


General information

Mr Tyre Limited is a private limited company, limited by shares and incorporated in England, United Kingdom. The address of the registered office is given in the company information of these financial statements. The nature of the Company's operations and principal activities are described in the Strategic report on page 1.
The financial statements are prepared in Sterling which is the functional currency of the Company. The financial statements level of rounding is to the nearest £1.

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 financial statements have been prepared on a going concern basis.
The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

 
2.2

Financial Reporting Standard 102 - reduced disclosure exemptions

The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
the requirements of Section 7 Statement of Cash Flows;
the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
the requirements of Section 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements of MT Developments Limited as at 31 December 2023 and these financial statements may be obtained from Companies House, Crown Way, Maindy, Cardiff, CF14 3UZ.

 
2.3

Foreign currency translation

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.
Monetary assets and liabilities denominated in foreign currencies are retranslated at the rate of exchange ruling at the balance sheet date.

Page 12

 
MR TYRE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.4

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 tyres, exhausts and ancillary goods are recognised when tyres are dispatched to a customer or goods are fitted to a customer vehicle on the basis that the Company no longer has control over the goods sold, the amount can be measured reliably, it is probable the Company will receive consideration and costs incurred in respect of the transaction can be measured reliably.
Rendering of services

Revenue from services is recognised in the period in which the services are performed on the basis it is probable the Company will receive consideration and costs incurred in respect of the transactions can be measured reliably.

 
2.5

Operating leases: Lessee

Rentals paid under operating leases are charged to the Statement of Comprehensive Income on a straight-line basis over the lease term.

 
2.6

Interest income

Interest income is recognised in the Statement of Comprehensive Income using the effective interest method.

 
2.7

Finance costs

Finance costs are charged to the Statement of Comprehensive Income 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.

 
2.8

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 Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.

Page 13

 
MR TYRE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.9

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, unless it relates to items in other comprehensive income or directly in equity. In such cases, the restated tax is also recognised in other comprehensive income or directly in equity.
Current tax liabilities are measured at the amount expected to be paid, based on tax rates and laws that are enacted or substantively enacted at the balance sheet date.
Deferred tax is accounted for using the balance sheet liability method and is calculated using rates of taxation enacted or substantively enacted at the balance sheet date which are expected to apply when the asset or liability is settled.
Deferred tax liabilities are generally recognised for all taxable temporary timing differences. Deferred tax assets are only recognised to the extent that it is probable that taxable profits will be available against which deductible temporary timing differences can be utilised.

 
2.10

Intangible assets

Goodwill
Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, Goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight line basis to the Statement of Comprehensive Income over its useful economic life. The Directors have assessed the economic benefit of goodwill to be 10 years.

  
2.11
Tangible fixed assets

Tangible fixed assets under the cost model are stated at 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 the following basis:
Long-term leasehold property   - Over the period of the lease
Plant and machinery     - 15% on reducing balance
Motor vehicles      - 5% to 25% on reducing balance
Fixtures and fittings     - 15% on reducing balance
The carrying values of tangible fixed assets are reviewed for impairment, when events or changes in circumstances indicate the carrying value may be affected.

Page 14

 
MR TYRE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.12

Impairment of fixed assets and goodwill

Assets that are subject to depreciation or amortisation are assessed at each balance sheet date to determine whether there is any indication that the assets are impaired. Where there is any indication that an asset may be impaired, the carrying value of the asset (or cash-generating unit to which the asset has been allocated) is tested for impairment. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's (or CGU's) fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (CGUs). Non-financial assets that have been previously impaired are reviewed at each balance sheet date to assess whether there is any indication that the impairment losses recognised in prior periods may no longer exist or may have decreased.

 
2.13

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to sell. Cost is based on the cost of purchase on a first in, first out basis.
At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to sell. The impairment loss is recognised immediately in the Statement of Comprehensive Income.

 
2.14

Debtors

Short-term debtors are measured at transaction price, less any impairment.

 
2.15

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

 
2.16

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

  
2.17

Provisions for liabilities

Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to the Statement of Comprehensive Income in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Balance Sheet.

Page 15

 
MR TYRE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.18

Financial instruments

The Company enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable and other third parties and loans to related parties.
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade payables or receivables, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or financed at a rate of interest that is not a market rate or in case of an out-right short-term loan not at market rate, the financial asset or liability is measured, initially, at the present value of the future cash flow discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost.

 
2.19

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.


Judgements 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 amounts reported for assets and liabilities at the balance sheet date and the amounts reported for revenue and expenses during the year, however, the nature of estimation means that actual outcomes could differ from those estimates.
The directors consider estimates and judgements are unlikely to have a significant effect on the amounts recognised in the financial statements.


4.


Turnover

The whole of the turnover is attributable to the sale of motor vehicle tyres, exhaust systems and ancillary products and services.

All turnover arose within the United Kingdom.

Page 16

 
MR TYRE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

5.


Other operating income

2023
2022
£
£

Rents receivable
5,601
11,200

5,601
11,200



6.


Operating profit

The operating profit is stated after charging:

2023
2022
£
£

Other operating lease rentals
578,470
472,551

Depreciation charges in respect of tangible fixed assets
446,219
470,668

Amortisation charges in respect of intangible fixed assets
52,463
48,115


7.


Auditors' remuneration

During the year, the Company obtained the following services from the Company's auditors:


2023
2022
£
£

Fees payable to the Company's auditors for the audit of the Company's financial statements
23,500
22,000

The Company has taken advantage of the exemption not to disclose amounts paid for non-audit services as these are disclosed in the consolidated accounts of the parent Company.

Page 17

 
MR TYRE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

8.


Employees

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


2023
2022
£
£

Wages and salaries
6,335,030
5,569,664

Social security costs
635,391
585,162

Cost of defined contribution scheme
136,260
104,617

7,106,681
6,259,443


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


        2023
        2022
            No.
            No.







Management, admin and fitters
207
201


9.


Directors' remuneration

2023
2022
£
£

Directors' emoluments
1,060,406
1,095,885

Company contributions to defined contribution pension schemes
1,321
1,321

1,061,727
1,097,206


During the year retirement benefits were accruing to 1 director (2022 - 1) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £729,287 (2022 - £846,020).

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


10.


Interest receivable

2023
2022
£
£


Bank interest receivable
2,301
-

2,301
-

Page 18

 
MR TYRE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

11.


Interest payable and similar expenses

2023
2022
£
£


Finance leases and hire purchase contracts
97,776
123,399

Other interest payable
4,858
-

102,634
123,399


12.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
508,471
268,444

Adjustments in respect of previous periods
(4,515)
-


Total current tax
503,956
268,444

Deferred tax


Origination and reversal of timing differences
(44,459)
(30,307)

Adjustments in respect of previous periods
784
27,683

Total deferred tax
(43,675)
(2,624)


Taxation on profit on ordinary activities
460,281
265,820
Page 19

 
MR TYRE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
 
12.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 23.5% (2022 - 19%). The differences are explained below:

2023
2022
£
£


Profit on ordinary activities before tax
1,961,665
1,236,483


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 23.5% (2022 - 19%)
460,991
234,932

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
3,068
6,174

Capital allowances for year in excess of depreciation
2,584
4,305

Adjustments to tax charge in respect of prior periods
(3,731)
27,683

Remeasurement of deferred tax for changes in rates
(2,631)
(7,274)

Total tax charge for the year
460,281
265,820


Factors that may affect future tax charges

There were no factors that may affect future tax charges.


13.


Dividends

2023
2022
£
£


Ordinary shares
1,505,000
790,000

Page 20

 
MR TYRE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

14.


Intangible assets




Goodwill

£



Cost


At 1 January 2023
1,160,145



At 31 December 2023

1,160,145



Amortisation


At 1 January 2023
1,055,220


Charge for the year on owned assets
52,463



At 31 December 2023

1,107,683



Net book value



At 31 December 2023
52,462



At 31 December 2022
104,925



Page 21

 
MR TYRE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

15.


Tangible fixed assets





Long-term leasehold property
Plant and machinery
Motor vehicles
Fixtures and fittings
Total

£
£
£
£
£



Cost or valuation


At 1 January 2023
247,934
2,781,775
2,797,722
920,380
6,747,811


Additions
55,789
168,695
747,953
45,435
1,017,872


Disposals
-
-
(2,206,530)
-
(2,206,530)



At 31 December 2023

303,723
2,950,470
1,339,145
965,815
5,559,153



Depreciation


At 1 January 2023
86,863
1,972,485
520,986
724,637
3,304,971


Charge for the year on owned assets
29,463
123,978
37,042
32,756
223,239


Charge for the year on financed assets
-
5,046
217,934
-
222,980


Disposals
-
-
(387,189)
-
(387,189)



At 31 December 2023

116,326
2,101,509
388,773
757,393
3,364,001



Net book value



At 31 December 2023
187,397
848,961
950,372
208,422
2,195,152



At 31 December 2022
161,071
809,290
2,276,736
195,743
3,442,840

The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:


2023
2022
£
£



Plant and machinery
79,449
33,640

Motor vehicles
726,489
2,095,241

805,938
2,128,881

Page 22

 
MR TYRE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

16.


Stocks

2023
2022
£
£

Goods for resale
1,787,111
1,766,471


The difference between purchase price of stocks and their replacement cost is not considered material.


17.


Debtors

2023
2022
£
£


Trade debtors
131,252
147,354

Amounts owed by group undertakings
4,811,304
4,279,218

Other debtors
6,296,503
5,728,585

Prepayments and accrued income
421,656
405,407

11,660,715
10,560,564



18.


Cash and cash equivalents

2023
2022
£
£

Cash at bank and in hand
718,478
732,089


Page 23

 
MR TYRE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

19.


Creditors: Amounts falling due within one year

2023
2022
£
£

Trade creditors
2,843,324
2,805,259

Corporation tax
390,297
256,753

Other taxation and social security
706,646
596,159

Obligations under finance lease and hire purchase contracts
149,942
351,364

Other creditors
3,496,026
3,002,346

Accruals and deferred income
336,887
309,189

7,923,122
7,321,070


Secured Creditors

The amounts due under finance leases and hire purchase contracts are secured over the relevant assets.


20.


Creditors: Amounts falling due after more than one year

2023
2022
£
£

Net obligations under finance leases and hire purchase contracts
421,972
1,169,704


Secured creditors
The amounts due under finance leases and hire purchase contracts are secured over the relevant assets.


21.


Hire purchase and finance leases


Minimum lease payments under hire purchase fall due as follows:

2023
2022
£
£


Within one year
149,942
351,364

Between 1-5 years
421,972
1,169,704

571,914
1,521,068

Page 24

 
MR TYRE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

22.


Financial instruments

2023
2022
£
£

Financial assets


Financial assets measured at transaction price
718,478
732,089

Financial assets that are debt instruments measured at transaction price less impairment
9,926,915
8,916,341

10,645,393
9,648,430


Financial liabilities


Financial liabilities measured at transaction price
(6,676,237)
(6,116,794)


Financial assets measured at transaction price through the Statement of Comprehensive Income comprise cash at bank and in hand.


Financial assets measured at transaction price less impairment comprise trade debtors, amounts owed by group undertakings and other debtors.


Financial liabilities measured at transaction price comprise trade creditors, other creditors and accruals and deferred income.


23.


Deferred taxation




2023


£






At beginning of year
(194,706)


Credit to Statement of Comprehensive Income
43,675



At end of year
(151,031)

The provision for deferred taxation is made up as follows:

2023
2022
£
£


Accelerated capital allowances
(151,031)
(197,069)

Other short term timing differences
-
2,363

(151,031)
(194,706)

Page 25

 
MR TYRE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

24.


Share capital

2023
2022
£
£
Authorised, allotted, called up and fully paid



10,000 (2022 - 10,000) Ordinary shares of £1.00 each
10,000
10,000
1,000 (2022 - 1,000) A Ordinary shares of £1.00 each
1,000
1,000

11,000

11,000

The Ordinary and A Ordinary shares are not redeemable and carry equal rights to vote, the directors have the ability to declare different dividends on Ordinary and A Ordinary shares.



25.


Reserves

Share premium account

This reserve records the amount above the nominal value received for the shares issued.

Revaluation reserve

This reserve is used to record increases in the fair value of plant and machinery and decreases to the extent that such a decrease relates to an increase on the same asset.

Profit and loss account

This reserve records all current and prior period retained profits and losses.


26.


Contingent liabilities

The company has given an unlimited guarantee in respect of the Group's bankers. The total balance guaranteed by the company at 31 December 2023 amounted to £624,682 (2022 - £661,641).
The company is a member of a VAT group and is jointly and severally liable for the amount of VAT owed by M.T. Developments Limited and Mr Tyre (Motor Sport) Limited, at the balance sheet date the liabilities were £26,805 
(2022 - £1,318).


27.


Capital commitments


At 31 December 2023 the Company had capital commitments as follows:

2023
2022
£
£


Contracted for but not provided in these financial statements
104,000
278,000

Page 26

 
MR TYRE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

28.


Pension commitments

The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension costs charge represents contributions payable by the company to the fund and amounted to £136,260 (2022 - £104,617). Contributions totaling £nil (2022 - £nil) were payable to the fund at the balance sheet date.


29.


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
439,675
411,301

Later than 1 year and not later than 5 years
1,651,062
1,197,267

Later than 5 years
401,963
249,290

2,492,700
1,857,858


30.


Transactions with directors

The following loans to directors subsisted during the years ended 31 December 2023 and 31 December 2022:
2023
2022
£
£



Balance at 1 January
4,462,105
3,759,709

Amounts advanced
2,961,722
1,035,943

Amounts repaid
(2,642,468)
(333,547)

Balance at 31 December

4,781,359
4,462,105

Amounts advanced during the periods were interest free and held no conditions.





Page 27

 
MR TYRE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

31.


Other transactions with related parties and directors

The company has taken advantage of the exemption in FRS 102 paragraph 33.1A from the requirement to disclose transactions with wholly owned members of the group.
The company has taken advantage of the exemption under FRS 102 paragraph 1.12 Reduced Disclosures for Subsidiaries from disclosing key management personnel compensation in total.
During the year payments and repayments were made on a loan to the company from Mr Tyre (Motor Sport) Limited, a company in which Mr AG Williams is a director and shareholder. Services recharged amounted to £468,199 
(2022 - £439,307). The amount outstanding at the balance sheet date was £3,485,438 (2022 - £2,989,889).


32.


Post balance sheet events

Since the year end the company has entered into a new 10-year lease for one of its existing depots, at an annual rental of £40,200.
Interim dividends of £1,450,000 have been paid since the year end.


33.


Controlling party

The ultimate parent company is M T Developments Limited.
M T Developments Limited heads the largest and smallest group within which Mr Tyre Limited belongs and for which group accounts are prepared. Copies of the group accounts can be obtained from Companies House, Crown Way, Maindy, Cardiff, CF14 3UZ.
The Company is controlled by Mr A G Williams by virtue of his 100% holding of the issued share capital of the ultimate parent company.

 
Page 28