REGISTERED NUMBER: |
SB WAKEFIELD LIMITED |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
REGISTERED NUMBER: |
SB WAKEFIELD LIMITED |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
SB WAKEFIELD LIMITED (REGISTERED NUMBER: 05025466) |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
Page |
Balance Sheet | 1 |
Notes to the Financial Statements | 2 | to | 7 |
SB WAKEFIELD LIMITED (REGISTERED NUMBER: 05025466) |
BALANCE SHEET |
31ST DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 4 |
CURRENT ASSETS |
Stocks |
Debtors | 5 |
Cash in hand |
CREDITORS |
Amounts falling due within one year | 6 |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year | 7 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 10 |
Retained earnings | ( |
) |
SHAREHOLDERS' FUNDS |
In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered. |
The financial statements were approved by the Board of Directors and authorised for issue on |
SB WAKEFIELD LIMITED (REGISTERED NUMBER: 05025466) |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
1. | STATUTORY INFORMATION |
SB Wakefield Limited is a |
Registered number: |
Registered office: |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
These financial statements have been prepared in accordance with the provisions of Section 1A "Small Entities" of Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention. |
The financial statements are presented in sterling which is the functional currency of the company and rounded to the nearest £1. |
The directors are satisfied that the company has sufficient cash flows to continue to meet its liabilities as they fall due for at least one year from the date of approval of the financial statements, thus they continue to adopt the going concern basis of accounting in preparing the annual financial statements. |
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. |
Accounting judgements and estimates |
The preparation of the financial statements requires management to make estimates that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. However the nature of estimation means that actual outcomes could differ from those estimates. |
The key areas of judgement and estimation uncertainty relate to stock valuation and warranty provisions. However, the directors do not believe that any reasonable change in assumptions would result in a material adjustment to the carrying values of assets and liabilities. |
Turnover |
Turnover is measured at the fair value of the consideration received and represents amounts receivable for the sale of vehicles and accessories including warranties, provision of workshop services or finance arrangement commission, excluding value added tax. |
Turnover is recognised upon delivery of the vehicle to the customer, which only occurs once full payment or evidence of full payment has been received or upon completion of the car services being provided and payment being received in full. |
SB WAKEFIELD LIMITED (REGISTERED NUMBER: 05025466) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
2. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
Tangible fixed assets are stated at cost (or deemed cost) or valuation less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended. |
Depreciation is provided on all tangible fixed assets, at rates calculated to write off the cost, less estimated residual value, of each asset on a systematic basis over its expected useful life or, if held under a finance lease, over the lease term, whichever is the shorter. |
Land and building | 50 year leasehold |
Plant and machinery | -10% on cost |
Fixtures and fittings | -10% on cost |
Motor vehicles | -20% on cost |
Tangible fixed assets are initially stated at historical cost. |
The directors perform annual impairment reviews on all assets if any losses arisising from such, are reflected in the profit and loss account. |
Stocks |
Vehicle stock and parts stock are valued at the lower of cost and estimated selling price less cost to complete and sell. Costs include all costs of purchase, costs of conversion and other costs incurred in bringing stock to its location and condition prior to sale. Provision is made for damaged, obsolete and slow-moving stock where appropriate. |
Financial instruments |
The company only enters into transactions in ‘basic’ financial instruments which result in the recognition of assets and liabilities; these include trade and other debtors and creditors, bank balances, loans from banks and other third parties, and loans to related parties. These are recognised in the company’s balance sheet when it becomes party to the contractual provisions of the instrument. |
Basic financial assets (other than those classified as payable within one year) are initially measured at cost and are subsequently carried at cost or amortised cost using the effective interest method, less any impairment losses. Basic financial assets classed as receivable within one year are not amortised. |
Basic financial liabilities (other than those classified as payable within one year) are initially measured at present value of future cash flows and subsequently at amortised cost using the effective interest method. Basic financial liabilities classed as payable within one year are not amortised. |
Financial assets and liabilities are offset, with the net amount reported 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. |
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. |
SB WAKEFIELD LIMITED (REGISTERED NUMBER: 05025466) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
2. | ACCOUNTING POLICIES - continued |
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 a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
Loans and borrowings |
Loans and borrowings are initially recognised at the transaction price including transaction costs. Subsequently, they are measured at amortised cost using the effective interest rate method, less impairment. If an arrangement constitutes a finance transaction it is measured at present value. |
Provisions |
Warranty provisions are recognised when the company has an obligation at the balance sheet date to cover future liabilities relating to warranty agreements and the amount can be reliably estimated. |
3. | EMPLOYEES AND DIRECTORS |
The average number of employees during the year was |
4. | TANGIBLE FIXED ASSETS |
Plant and |
Land and | machinery |
buildings | etc | Totals |
£ | £ | £ |
COST |
At 1st January 2023 |
Additions |
Disposals | ( |
) | ( |
) |
At 31st December 2023 |
DEPRECIATION |
At 1st January 2023 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
At 31st December 2023 |
NET BOOK VALUE |
At 31st December 2023 |
At 31st December 2022 |
Assets held under finance leases and hire purchase originally cost £149,100 (2022: £27,900) and have a net book value of £114,700 (2022: £20,700). Depreciation charged for the year was £4,800 (2022: £2,400). |
SB WAKEFIELD LIMITED (REGISTERED NUMBER: 05025466) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
5. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Trade debtors |
Other debtors |
6. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Bank loans and overdrafts |
Hire purchase contracts (see note 8) |
Trade creditors |
Taxation and social security |
Other creditors |
7. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2023 | 2022 |
£ | £ |
Bank loans |
Hire purchase contracts (see note 8) |
Amounts falling due in more than five years: |
Repayable by instalments |
Bank loans more 5 yr by |
instalments | 60,993 | 95,664 |
60,993 | 95,664 |
8. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Hire purchase contracts |
2023 | 2022 |
£ | £ |
Net obligations repayable: |
Within one year |
Between one and five years |
SB WAKEFIELD LIMITED (REGISTERED NUMBER: 05025466) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
8. | LEASING AGREEMENTS - continued |
Non-cancellable operating | leases |
2023 | 2022 |
£ | £ |
Within one year |
Between one and five years |
In more than five years |
9. | SECURED DEBTS |
The following secured debts are included within creditors: |
2023 | 2022 |
£ | £ |
Bank overdrafts |
Hire purchase contracts | 98,288 | 22,944 |
Trade creditors | 1,059,757 | 1,046,731 |
Bank loans | 227,449 | 274,373 |
The bank loan and overdraft are secured by a Debenture dated 20th February 2004; a first Legal Charge over the acquired dealership premises and associated assets at Ings Road, Wakefield and a Guarantee by a director for £200,000. The legal charge is subject to a deed of priority giving PSA Wholesale Limited priority on new and used vehicles. The bank has unlimited priority on all other assets. |
The hire purchase contracts are secured over the assets to which they relate. |
Certain vehicle stocks are financed by way of loans from vehicle manufactures and financiers and are secured by floating charges over the vehicles financed. The balance included in trade creditors at 31st December 2023 is £1,059,757 (2022: £1,046,731). |
10. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary | £1 | 500,000 | 500,000 |
Preference | £1 | 250,000 | 250,000 |
750,000 | 750,000 |
The preference shares of £1 each are non voting, non redeemable, non cumulative, and have a priority right to return of capital on winding up. The directors may, in their discretion (but shall not be obliged to do so), recommend a dividend of up to 4% of the nominal value of each preference share in any year in respect of all the preference shares subject to deduction of tax as may be required. |
SB WAKEFIELD LIMITED (REGISTERED NUMBER: 05025466) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
11. | DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006 |
The Report of the Auditors was unqualified. |
for and on behalf of |
12. | RELATED PARTY DISCLOSURES |
A director provided loan finance to the company during the period. Interest of £18,000 (2022: £10,000) was paid on the outstanding balance during the period. |
On the 19th November 2014, a director was issued loan notes of £250,000 with interest at 4% payable half yearly on 30th June and 31st December. In the previous year, £50,000 was repaid to the director, leaving a loan note balance of £200,000. |
The loan notes rank pari passu equally and rateably with other unsecured and unsubordinated obligations of the company. |
13. | OTHER MATTERS |
SB Wakefield Limited was subject to fraudulent activity resulting in a financial impact of £30,851 through NatWest Bank and HSBC Bank. Over the past 18 months, this matter has been under investigation and review. The company has successfully recovered £7,665, leaving an outstanding balance of £23,186. This remaining balance has been written off in the financial statements. |