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REGISTERED NUMBER: 02042626 (England and Wales)
























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: Mrs D Winks
Mr M Wray
Mrs D Wray
Mr A Veitch
Mr J Brown





SECRETARY: Mr M W Summers





REGISTERED OFFICE: 5&6 Manor Court
Manor Garth
Scarborough
North Yorkshire
YO11 3TU





REGISTERED NUMBER: 02042626 (England and Wales)





AUDITORS: Fortus Audit LLP
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:





Mr M Wray - Director


16 September 2024

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 £7 per share was paid on 30 September 2023. The directors recommend that no final dividend be paid.

The total distribution of dividends for the year ended 31 December 2023 will be £ 140,000 .

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

Mrs D Winks
Mr M Wray
Mrs D Wray
Mr A Veitch
Mr J Brown

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:





Mr M Wray - Director


16 September 2024

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.




Frances Howard FCA (Senior Statutory Auditor)
for and on behalf of Fortus Audit LLP
Chartered Accountants & Statutory Auditors
5&6 Manor Court
Manor Garth
Scarborough
North Yorkshire
YO11 3TU

16 September 2024

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 27,357,826 22,439,877

Cost of sales 24,499,950 19,722,861
GROSS PROFIT 2,857,876 2,717,016

Administrative expenses 2,457,657 2,295,520
OPERATING PROFIT 5 400,219 421,496

Interest receivable and similar income 2,596 -
Interest payable and similar expenses 6 (19 ) (454 )
PROFIT BEFORE TAXATION 402,796 421,042

Tax on profit 7 117,671 95,215
PROFIT FOR THE FINANCIAL YEAR 285,125 325,827

Retained earnings at beginning of year 3,449,464 3,263,637

Dividends 8 (140,000 ) (140,000 )

RETAINED EARNINGS AT END OF YEAR 3,594,589 3,449,464

DES WINKS CARS LIMITED (REGISTERED NUMBER: 02042626)

BALANCE SHEET
31 December 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 9 1,755,533 1,803,535

CURRENT ASSETS
Stocks 10 3,731,867 4,161,071
Debtors 11 355,408 173,124
Cash at bank and in hand 412,520 110,742
4,499,795 4,444,937
CREDITORS
Amounts falling due within one year 12 2,462,600 2,612,543
NET CURRENT ASSETS 2,037,195 1,832,394
TOTAL ASSETS LESS CURRENT LIABILITIES 3,792,728 3,635,929

PROVISIONS FOR LIABILITIES 14 178,139 166,465
NET ASSETS 3,614,589 3,469,464

CAPITAL AND RESERVES
Called up share capital 15 20,000 20,000
Retained earnings 3,594,589 3,449,464
SHAREHOLDERS' FUNDS 3,614,589 3,469,464

The financial statements were approved by the Board of Directors and authorised for issue on 16 September 2024 and were signed on its behalf by:





Mr M Wray - Director


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 1 617,849 264,869
Interest paid (19 ) (454 )
Tax paid (90,329 ) (166,166 )
Net cash from operating activities 527,501 98,249

Cash flows from investing activities
Purchase of tangible fixed assets (103,438 ) (66,425 )
Interest received 2,596 -
Net cash from investing activities (100,842 ) (66,425 )

Cash flows from financing activities
Loan repayments in year - (57,144 )
Amount introduced by directors 196,500 165,154
Amount withdrawn by directors (181,381 ) (136,373 )
Equity dividends paid (140,000 ) (140,000 )
Net cash from financing activities (124,881 ) (168,363 )

Increase/(decrease) in cash and cash equivalents 301,778 (136,539 )
Cash and cash equivalents at beginning
of year

2

110,742

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 402,796 421,042
Depreciation charges 151,440 139,585
Loss on disposal of fixed assets - 1,142
Finance costs 19 454
Finance income (2,596 ) -
551,659 562,223
Decrease/(increase) in stocks 429,204 (972,302 )
Increase in trade and other debtors (182,284 ) (11,049 )
(Decrease)/increase in trade and other creditors (180,730 ) 685,997
Cash generated from operations 617,849 264,869

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
110,742 301,778 412,520
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
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

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
Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life.
Freehold property - 4% on cost
Plant and machinery - 15% on reducing balance

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
£    £   
Vehicle sales 25,154,931 20,463,009
Parts sales 1,156,328 1,064,316
Servicing and repairs 1,046,567 912,552
27,357,826 22,439,877

4. EMPLOYEES AND DIRECTORS
2023 2022
£    £   
Wages and salaries 1,457,378 1,333,925
Social security costs 150,150 143,506
Other pension costs 151,469 148,800
1,758,997 1,626,231

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
40 40

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 227,100 180,731
Directors' pension contributions to money purchase schemes 77,267 77,721

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 3 4

Information regarding the highest paid director for the year ended 31 December 2023 is as follows:
2023
£   
Emoluments etc 81,825
Pension contributions to money purchase schemes 1,320

5. OPERATING PROFIT

The operating profit is stated after charging:

2023 2022
£    £   
Hire of plant and machinery 185 1,012
Depreciation - owned assets 151,440 139,585
Loss on disposal of fixed assets - 1,142
Auditors' remuneration 13,100 8,055

6. INTEREST PAYABLE AND SIMILAR EXPENSES
2023 2022
£    £   
Bank loan interest - 454
Other interest 19 -
19 454

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 105,997 90,329

Deferred tax current year 11,674 4,886
Tax on profit 117,671 95,215

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 402,796 421,042
Profit multiplied by the standard rate of corporation tax in the UK
of 23.520% (2022 - 19%)

94,738

79,998

Effects of:
Depreciation in excess of capital allowances 11,259 10,331
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 140,000 140,000

9. TANGIBLE FIXED ASSETS
Freehold Plant and
property machinery Totals
£    £    £   
COST
At 1 January 2023 3,052,669 426,282 3,478,951
Additions - 103,438 103,438
At 31 December 2023 3,052,669 529,720 3,582,389
DEPRECIATION
At 1 January 2023 1,387,778 287,638 1,675,416
Charge for year 115,120 36,320 151,440
At 31 December 2023 1,502,898 323,958 1,826,856
NET BOOK VALUE
At 31 December 2023 1,549,771 205,762 1,755,533
At 31 December 2022 1,664,891 138,644 1,803,535

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 3,731,867 4,161,071

11. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade debtors 314,951 140,087
Other debtors 10,984 -
Prepayments and accrued income 29,473 33,037
355,408 173,124

12. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Other loans (see note 13) 312,955 297,836
Trade creditors 1,847,785 2,045,317
Corporation tax 105,997 90,329
Social security and other taxes 153,378 126,541
Accruals 42,485 52,520
2,462,600 2,612,543

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 166,465
Provided during year 11,674
Change in tax rate
Balance at 31 December 2023 178,139

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

20232022
£   £   
Accelerated capital allowances173,973162,299
Rolled over gains4,1664,166
178,139166,465

15. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
20,000 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.