REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
AUDITED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
FOR |
DES WINKS CARS LIMITED |
REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
AUDITED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
FOR |
DES WINKS CARS LIMITED |
DES WINKS CARS LIMITED (REGISTERED NUMBER: 02042626) |
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 |
Statement of Income and Retained Earnings | 10 |
Balance Sheet | 11 |
Cash Flow Statement | 12 |
Notes to the Cash Flow Statement | 13 |
Notes to the Financial Statements | 14 |
DES WINKS CARS LIMITED |
COMPANY INFORMATION |
For The Year Ended 31 December 2023 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants & Statutory Auditors |
5&6 Manor Court |
Manor Garth |
Scarborough |
North Yorkshire |
YO11 3TU |
DES WINKS CARS LIMITED (REGISTERED NUMBER: 02042626) |
STRATEGIC REPORT |
For The Year Ended 31 December 2023 |
The directors present their strategic report for the year ended 31 December 2023. |
Des Winks Cars Limited operates both a Volkswagen and Skoda dealership based in Scarborough, North Yorkshire. The business sells the whole range of new Volkswagen and Skoda passenger cars. In addition, the business also sells used Volkswagen, Skoda and non-franchise passenger cars and carries out servicing and repairs to both Volkswagen, Skoda and other makes. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The business is exposed to a number of risks but the directors are confident that they have sufficient controls in place to minimise these factors. |
The profitability of the company can be adversely affected by the general economic conditions in the UK, factors such as unemployment, interest rates, exchange rates, inflation and in more recent years the component shortage, which had led to a restricted supply of new cars since the end of the pandemic. The company has a strong relationship with Volkswagen Bank, and is confident that the banking and finance facilities are adequate for its working capital requirements. Cash flow is monitored daily as are all debtors. The company's exposure to credit risk is low as no cars are released without cleared funds having been received, or confirmation that a customer's application for finance has been processed. |
The company is subject to both regulatory audits and Volkswagen Group audits whereby operating processes and systems are checked, failure of these audits can lead to fines or other penalties. The directors are confident they have the systems and support in place to ensure all such processes are complied with. |
BUSINESS MODEL |
The business operates as a franchise of Volkswagen Group United Kingdom Limited whereby it is contracted to buy cars and parts from them at a pre-determined level during a 12 month period. In addition, many standards of display and customer service have to be maintained at all times. The relationship with the Volkswagen Group, who operate the Volkswagen and Skoda franchises in the UK, is clearly extremely important to the success of the business and with the company entering their 29th year in partnership with the Volkswagen Group, the directors are confident of this excellent relationship continuing in the long term. |
BUSINESS PERFORMANCE |
The previously reported issues of a global shortage of semiconductors has now been resolved, resulting in a much improved stock supply from both brands during the year. This has boosted the level of sales reported during the year to record levels as well as achieving an improved gross profit position despite a slight squeeze in margins as a result of the improved supply. |
BUSINESS OUTLOOK |
2024 continues very much along the same vein with a continued strong supply of new cars and better than initially expected re-sale values in the used car market. Results are expected to be at least on a par with 2023, helped by the return of improving margins. The business continues to focus on quality trading with a view to maintaining good margins on all available products. |
DES WINKS CARS LIMITED (REGISTERED NUMBER: 02042626) |
STRATEGIC REPORT |
For The Year Ended 31 December 2023 |
FINANCIAL RISK MANAGEMENT |
Des Winks Cars Limited uses financial instruments, such as bank and related party loan, cash and various other items such as trade debtors and creditors that arise directly from its operations. The main purpose of these financial instruments is to maintain working capital for the Company's operations and managed to an acceptable level. Key risks are detailed below. |
PRICE RISK |
The business continually monitors and reacts to market conditions that affect the prices of its stock. Values remain very strong in the motor trade and are expected to remain so for the foreseeable future, with high inflation not having an impact on demand for new and used cars. |
CREDIT RISK |
The directors are satisfied with the management of credit risk. The company has a relatively low level of trade debtors and these are monitored closely to ensure recoverability and are spread across a range of customers. |
LIQUIDITY RISK |
Des Winks Cars Limited maintains an excellent relationship with its bankers and has a strong history of managing liquidity risk to make sure it can meet the company's cash flow needs. This can be demonstrated by the consistently strong net asset position reported annually in the financial statements and the company is now debt free in terms of bank borrowing. |
CASH FLOW RISK |
As alluded to above, the company has an excellent relationship with its bankers and the company has sufficient facilities in place for its working capital requirements. |
FINANCIAL SUMMARY AND KEY PERFORMANCE INDICATORS |
Item |
2023(£ s |
) |
2022 (£ s |
) |
Change (£ s |
) |
Change (% |
) |
Turnover | 27,358 | 22,440 | 4,918 | 21.92% |
Gross profit | 2,858 | 2,717 | 141 | 5.19% |
Profit before tax |
403 |
421 |
(18 |
) |
(4.28% |
) |
2023 | 2022 |
Gross profit margin | 10.45% | 12.11% |
Stock holding days | 55.6 | 77.0 |
ON BEHALF OF THE BOARD: |
DES WINKS CARS LIMITED (REGISTERED NUMBER: 02042626) |
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 activity of the company in the year under review was that of running a motor dealership for VW and Skoda vehicles which includes the sale of new and used cars. |
DIVIDENDS |
An interim dividend of £ |
The total distribution of dividends for the year ended 31 December 2023 will be £ |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 January 2023 to the date of this report. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
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), 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 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. |
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. |
DES WINKS CARS LIMITED (REGISTERED NUMBER: 02042626) |
REPORT OF THE DIRECTORS |
For The Year Ended 31 December 2023 |
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. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
DES WINKS CARS LIMITED |
Opinion |
We have audited the financial statements of Des Winks Cars Limited (the 'company') for the year ended 31 December 2023 which comprise the Statement of Income and Retained Earnings, Balance Sheet, Cash Flow Statement and Notes to the Cash Flow Statement, 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 |
DES WINKS CARS LIMITED |
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 Statement of Directors' Responsibilities set out on page four, 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 |
DES WINKS CARS LIMITED |
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: |
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 to irregularities including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
We obtained an understanding of the legal and regulatory frameworks that are applicable to the company and determined that the most significant frameworks which are directly relevant to specific assertions in the financial statements are those that relate to the reporting framework (UK GAAP and the Companies Act 2006) and the relevant tax compliance regulations in the UK. |
We understood how the group is complying with those frameworks by making enquiries of management and those responsible for legal and compliance procedures. We corroborated our enquiries through review of board minutes and discussions with those charged with governance. |
We assessed the susceptibility of the group’s financial statements to material misstatement, including how fraud might occur, by discussion with management from various parts of the business to understand where they considered there was a susceptibility to fraud. We considered the procedures and controls that the group has established to prevent and detect fraud, and how these are monitored by management, and also any enhanced risk factors such as performance targets. |
Based on our understanding, we designed our audit procedures to identify any non-compliance with laws and regulations identified in the paragraphs above. |
We also performed 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. |
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 |
DES WINKS CARS LIMITED |
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. |
for and on behalf of |
Chartered Accountants & Statutory Auditors |
5&6 Manor Court |
Manor Garth |
Scarborough |
North Yorkshire |
YO11 3TU |
DES WINKS CARS LIMITED (REGISTERED NUMBER: 02042626) |
STATEMENT OF INCOME AND |
RETAINED EARNINGS |
For The Year Ended 31 December 2023 |
2023 | 2022 |
Notes | £ | £ |
TURNOVER | 3 |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
OPERATING PROFIT | 5 |
Interest receivable and similar income |
Interest payable and similar expenses | 6 | ( |
) | ( |
) |
PROFIT BEFORE TAXATION |
Tax on profit | 7 |
PROFIT FOR THE FINANCIAL YEAR |
Retained earnings at beginning of year |
Dividends | 8 | ( |
) | ( |
) |
RETAINED EARNINGS AT END OF YEAR |
DES WINKS CARS LIMITED (REGISTERED NUMBER: 02042626) |
BALANCE SHEET |
31 December 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 9 |
CURRENT ASSETS |
Stocks | 10 |
Debtors | 11 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 12 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
PROVISIONS FOR LIABILITIES | 14 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 15 |
Retained earnings |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
DES WINKS CARS LIMITED (REGISTERED NUMBER: 02042626) |
CASH FLOW STATEMENT |
For The Year Ended 31 December 2023 |
2023 | 2022 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 |
Interest paid | ( |
) | ( |
) |
Tax paid | ( |
) | ( |
) |
Net cash from operating activities |
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Interest received |
Net cash from investing activities | ( |
) | ( |
) |
Cash flows from financing activities |
Loan repayments in year | ( |
) |
Amount introduced by directors | 196,500 | 165,154 |
Amount withdrawn by directors | (181,381 | ) | (136,373 | ) |
Equity dividends paid | ( |
) | ( |
) |
Net cash from financing activities | ( |
) | ( |
) |
Increase/(decrease) in cash and cash equivalents | ( |
) |
Cash and cash equivalents at beginning of year |
2 |
247,281 |
Cash and cash equivalents at end of year |
2 |
412,520 |
110,742 |
DES WINKS CARS LIMITED (REGISTERED NUMBER: 02042626) |
NOTES TO THE CASH FLOW STATEMENT |
For The Year Ended 31 December 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2023 | 2022 |
£ | £ |
Profit before taxation |
Depreciation charges |
Loss on disposal of fixed assets |
Finance costs | 19 | 454 |
Finance income | (2,596 | ) | - |
551,659 | 562,223 |
Decrease/(increase) in stocks | ( |
) |
Increase in trade and other debtors | ( |
) | ( |
) |
(Decrease)/increase in trade and other creditors | ( |
) |
Cash generated from operations |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31 December 2023 |
31.12.23 | 1.1.23 |
£ | £ |
Cash and cash equivalents | 412,520 | 110,742 |
Year ended 31 December 2022 |
31.12.22 | 1.1.22 |
£ | £ |
Cash and cash equivalents | 110,742 | 247,281 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
At 1.1.23 | Cash flow | At 31.12.23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 110,742 | 301,778 | 412,520 |
110,742 | 412,520 |
Debt |
Debts falling due within 1 year | (297,836 | ) | (15,119 | ) | (312,955 | ) |
(297,836 | ) | (15,119 | ) | (312,955 | ) |
Total | (187,094 | ) | 286,659 | 99,565 |
DES WINKS CARS LIMITED (REGISTERED NUMBER: 02042626) |
NOTES TO THE FINANCIAL STATEMENTS |
For The Year Ended 31 December 2023 |
1. | COMPANY INFORMATION |
Des Winks Cars Limited is a private company, limited by shares, domiciled in England and with a company number of 02042626. The registered office is 5&6 Manor Court, Manor Garth, Eastfield, Scarborough, YO11 3TU and its place of business is Hopper Hill Road, Eastfield, Scarborough, YO11 3YS. |
The nature of the company's operations and principal activities are the sale of new Volkswagen and Skoda passenger cars. Additionally, the company also sells used Volkswagen, Skoda and non-franchise passenger cars and carries out servicing and repairs to all makes of vehicle. |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The principal accounting policies adopted in the preparation of the financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated. |
The presentational currency of the financial statements is in GBP and rounded to the nearest pound. |
Significant judgements and estimates |
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 estimate. |
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. |
Turnover |
Turnover represents net invoiced sales of goods and services, excluding value added tax, and principally comprises sales of vehicles, parts, servicing and bodyshop sales. Vehicles and parts sales are recognised when substantially all risks and rewards have been transferred to the customer which is generally time of delivery to the customer. Service and bodyshop sales are recognised on completion of work performed. |
DES WINKS CARS LIMITED (REGISTERED NUMBER: 02042626) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
For The Year Ended 31 December 2023 |
2. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
Freehold property | - |
Plant and machinery | - |
No depreciation is provided on the element of land included within freehold property. |
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. |
At each reporting date the company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount. |
Stocks |
Stock is valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. Stock includes vehicle consignment stock, the associated creditor is included within trade creditors. |
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. |
Pension costs and other post-retirement benefits |
The company operates defined contribution pension schemes. Contributions payable to the company's pension schemes are charged to profit or loss in the period to which they relate. |
DES WINKS CARS LIMITED (REGISTERED NUMBER: 02042626) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
For The Year Ended 31 December 2023 |
2. | ACCOUNTING POLICIES - continued |
Financial instruments |
The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties and loans to related parties. |
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Income statement. |
Financial assets and liabilities are offset and the net amount reported in the Balance Sheet when there is an 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. Financial liabilities and equity are classified according to the substance of the financial instrument's contractual obligations, rather than the financial instrument's legal form. |
Going concern |
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. As a result, the directors continue to adopt the going concern basis of accounting in preparing the financial statements. |
3. | 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 |
£ | £ |
4. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
2023 | 2022 |
Directors | 5 | 5 |
Parts employees | 2 | 2 |
Workshop employees | 14 | 14 |
Sales employees | 14 | 14 |
Administrative employees | 5 | 5 |
DES WINKS CARS LIMITED (REGISTERED NUMBER: 02042626) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
For The Year Ended 31 December 2023 |
4. | EMPLOYEES AND DIRECTORS - continued |
2023 | 2022 |
£ | £ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes |
Information regarding the highest paid director for the year ended 31 December 2023 is as follows: |
2023 |
£ |
Emoluments etc |
Pension contributions to money purchase schemes |
5. | OPERATING PROFIT |
The operating profit is stated after charging: |
2023 | 2022 |
£ | £ |
Hire of plant and machinery |
Depreciation - owned assets |
Loss on disposal of fixed assets |
Auditors' remuneration |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
£ | £ |
Bank loan interest |
Other interest |
7. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2023 | 2022 |
£ | £ |
Current tax: |
UK corporation tax |
Deferred tax current year |
Tax on profit |
DES WINKS CARS LIMITED (REGISTERED NUMBER: 02042626) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
For The Year Ended 31 December 2023 |
7. | TAXATION - continued |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
2023 | 2022 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of |
Effects of: |
Depreciation in excess of capital allowances |
Deferred tax charge | 11,674 | 4,886 |
Total tax charge | 117,671 | 95,215 |
The deferred tax charge has been calculated to reflect the increase in the main rate of corporation tax to 25% from 1 April 2023. |
8. | DIVIDENDS |
2023 | 2022 |
£ | £ |
Ordinary shares of £1 each |
Interim |
9. | TANGIBLE FIXED ASSETS |
Freehold | Plant and |
property | machinery | Totals |
£ | £ | £ |
COST |
At 1 January 2023 |
Additions |
At 31 December 2023 |
DEPRECIATION |
At 1 January 2023 |
Charge for year |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
Included in land and buildings is freehold land at a cost of £174,641 (2022 - £174,641) which is not depreciated. |
DES WINKS CARS LIMITED (REGISTERED NUMBER: 02042626) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
For The Year Ended 31 December 2023 |
10. | STOCKS |
2023 | 2022 |
£ | £ |
Finished goods |
11. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Trade debtors |
Other debtors |
Prepayments and accrued income |
12. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Other loans (see note 13) |
Trade creditors |
Corporation tax |
Social security and other taxes |
Accruals |
13. | LOANS |
An analysis of the maturity of loans is given below: |
2023 | 2022 |
£ | £ |
Amounts falling due within one year or on demand: |
Directors current accounts | 312,955 | 297,836 |
14. | PROVISIONS FOR LIABILITIES |
2023 | 2022 |
£ | £ |
Deferred tax | 178,139 | 166,465 |
Deferred |
tax |
£ |
Balance at 1 January 2023 |
Provided during year |
Change in tax rate |
Balance at 31 December 2023 |
DES WINKS CARS LIMITED (REGISTERED NUMBER: 02042626) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
For The Year Ended 31 December 2023 |
14. | PROVISIONS FOR LIABILITIES - continued |
2023 | 2022 |
£ | £ |
Accelerated capital allowances | 173,973 | 162,299 |
Rolled over gains | 4,166 | 4,166 |
178,139 | 166,465 |
15. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary | £1 | 20,000 | 20,000 |
16. | PENSION COMMITMENTS |
The company operates a non contributory pension scheme for the directors of the company and certain employees. It is a defined contribution scheme and contributions are charged in the profit and loss account as they become payable. The charge for the year is £122,800 (2022: £122,800). |
The company operates an auto enrolment scheme for all eligible employees and directors. |
The assets of the scheme are held separately from those of the company, being invested with The People's Pension. The cost to the company for the year was £28,669 (2022: £26,000). |
17. | RELATED PARTY DISCLOSURES |
Included in creditors are the directors current accounts which total £312,956 (2022: £297,836). |
During the year, total dividends of £140,000 (2022: £140,000), were paid to the directors. |
The key management compensation for the year is £329,160 (2022: £339,929). |
18. | ULTIMATE CONTROLLING PARTY |
The company is under the control of the directors who together own 100% of the issued share capital. |
19. | RESERVES - RETAINED EARNINGS |
The retained earnings reserve represents cumulative post taxation profits and losses net of dividends. |