REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
AUDITED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
FOR |
POLESWORTH GARAGE LIMITED |
REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
AUDITED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
FOR |
POLESWORTH GARAGE LIMITED |
POLESWORTH GARAGE LIMITED (REGISTERED NUMBER: 00903691) |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 3 |
Report of the Independent Auditors | 4 |
Profit and Loss Account | 8 |
Statement of Comprehensive Income | 9 |
Balance Sheet | 10 |
Statement of Changes in Equity | 11 |
Cash Flow Statement | 12 |
Notes to the Cash Flow Statement | 13 |
Notes to the Financial Statements | 15 |
POLESWORTH GARAGE LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants |
Statutory Auditors |
The Old Council Chambers |
Halford Street |
Tamworth |
Staffordshire |
B79 7RB |
POLESWORTH GARAGE LIMITED (REGISTERED NUMBER: 00903691) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
The directors present their strategic report for the year ended 31 December 2023. |
REVIEW OF BUSINESS |
We aim to present a balanced and comprehensive review of the development and performance of our business during the year and its position at the year end. Our review is consistent with the size and non-complex nature of our business and is written in the context of the risks and uncertainties we face. |
The company has been trading for over 50 years and as a successful Nissan main dealer for over 25 years, as well as offering a substantial display of used cars, including many premium marques. |
As a Nissan main dealer, the company continues to deal in new and used motor vehicles, providing vehicle servicing and repairs and spare parts for Nissan vehicles. |
Since the year end the company has also become a main dealer for Suzuki cars and will be able to provide additional choices for customers and provide further business growth. |
The company continues to invest in and develop its own book of finance and contract hire clients and we believe that this forms an integral part of the business providing stability by keeping its clients close to the business, |
Whilst the principle activity is that of a motor trader the company also has other income from property and farmland. |
We consider that our key performance indicators are those that communicate the financial performance and strength of the company as a whole, these being turnover, operating profit, net profitability and net asset value. |
2023 | 2022 |
£ | £ |
Turnover | 20,266,367 | 18,109,619 |
Operating profit | 891,138 | 1,241,066 |
Net profit before tax | 263,116 | 651,320 |
Net assets | 9,597,891 | 9,423,204 |
The business increased turnover in a difficult period with both high inflation and interest rates during the year. |
Margins have returned to pre-covid levels and borrowing costs were increased. However the company has continued to increase its overall net asset value to over £9.5 million. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The business and market environment in which we operate continues to be challenging, in particular competitiveness and price sensitivity. |
We operate on a prudent, economic and risk adverse basis as regards our trading relationships with our customers, suppliers and funders. There are external events that occur within the industry, which are outside of our control, however we closely monitor the market and economic conditions to mitigate risks to the business. |
The company continues to have a sound asset base and the directors are confident about the future growth and development of the business. |
ON BEHALF OF THE BOARD: |
POLESWORTH GARAGE LIMITED (REGISTERED NUMBER: 00903691) |
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 ACTIVITY |
The principal activity of the company in the year under review was that of garage proprietors. |
DIVIDENDS |
No dividends will be distributed for the year ended 31 December 2023. |
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). 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. |
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 ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
AUDITORS |
The auditors, Philip Barnes & Co Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
POLESWORTH GARAGE LIMITED |
Opinion |
We have audited the financial statements of Polesworth Garage Limited (the 'company') for the year ended 31 December 2023 which comprise the Profit and Loss Account, Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, 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 |
POLESWORTH GARAGE 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 three, 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 |
POLESWORTH GARAGE 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: |
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following: |
- considering the nature of the industry and sector, control environment and business performance; |
- enquiring of management concerning the company's procedures relating to: |
- identifying and complying with laws and regulations and whether they were aware of any instances of |
non-compliance; |
- detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or |
alleged fraud; and |
- the internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations. |
- obtaining an understanding of the legal and regulatory frameworks that the company operates in, focusing on |
those laws and regulations that had a direct effect on the financial statements. The key laws and regulations |
considered included the relevant provisions of the UK Companies Act, Financial Reporting Standards and |
accounting policies. |
Based upon this understanding we designed our audit procedures to identify non-compliance with such laws and regulations including: |
- review of the financial statement disclosures to assess compliance with relevant laws and regulations having a |
direct impact on the financial statements; |
- enquiries of management concerning actual and potential litigation and claims; and |
- testing journals and other adjustments; assessing judgements made in making accounting estimates and |
evaluating the business rationale of any significant unusual or unexpected transactions. |
We also communicated identified laws and regulations to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit. |
Whilst considering how our audit work addressed the detection of irregularities, we also consider the likelihood of detection based on our approach. Irregularities arising from fraud are inherently more difficult to detect than those arising from error. |
Because of the inherent limitations of an audit, there is a risk that we will not detect any irregularities, including those leading to 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 and misrepresentation. |
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 |
POLESWORTH GARAGE 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 |
The Old Council Chambers |
Halford Street |
Tamworth |
Staffordshire |
B79 7RB |
POLESWORTH GARAGE LIMITED (REGISTERED NUMBER: 00903691) |
PROFIT AND LOSS ACCOUNT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ |
TURNOVER | 3 |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
(447,071 | ) | (248,648 | ) |
Other operating income | 4 |
OPERATING PROFIT | 6 |
Interest receivable and similar income |
899,877 | 1,247,618 |
Gain/loss on revaluation of investment property |
- |
(272,000 |
) |
899,877 | 975,618 |
Interest payable and similar expenses | 7 |
PROFIT BEFORE TAXATION |
Tax on profit | 8 |
PROFIT FOR THE FINANCIAL YEAR |
POLESWORTH GARAGE LIMITED (REGISTERED NUMBER: 00903691) |
STATEMENT OF COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ |
PROFIT FOR THE YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
POLESWORTH GARAGE LIMITED (REGISTERED NUMBER: 00903691) |
BALANCE SHEET |
31 DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 9 |
Investments | 10 |
Investment property | 11 |
CURRENT ASSETS |
Stocks | 12 |
Debtors: amounts falling due within one year | 13 |
Debtors: amounts falling due after more than one year |
13 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 14 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
15 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 19 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 20 |
Revaluation reserve | 21 |
Other reserves | 21 |
Retained earnings | 21 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
POLESWORTH GARAGE LIMITED (REGISTERED NUMBER: 00903691) |
STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
Called up |
share | Retained | Revaluation | Other | Total |
capital | earnings | reserve | reserves | equity |
£ | £ | £ | £ | £ |
Balance at 1 January 2022 |
Changes in equity |
Total comprehensive income | - |
Balance at 31 December 2022 |
Changes in equity |
Total comprehensive income | - |
Balance at 31 December 2023 |
POLESWORTH GARAGE LIMITED (REGISTERED NUMBER: 00903691) |
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 | ( |
) | ( |
) |
Interest element of hire purchase payments paid |
( |
) |
( |
) |
Tax paid | ( |
) | ( |
) |
Net cash from operating activities | ( |
) |
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Sale of tangible fixed assets |
Sale of fixed asset investments |
Interest received |
Net cash from investing activities | ( |
) |
Cash flows from financing activities |
New bank loans in year |
Bank loan repayments in year | ( |
) | ( |
) |
Stocking loans | (760,906 | ) | 529,907 |
Increase /(decrease) in hire purchase | ( |
) |
Directors' loans | - | (72,798 | ) |
Directors' loans | (210,337 | ) | - |
Other loans | ( |
) | ( |
) |
Net cash from financing activities |
Increase in cash and cash equivalents |
Cash and cash equivalents at beginning of year |
2 |
(1,398,646 |
) |
(1,458,737 |
) |
Cash and cash equivalents at end of year | 2 | 130,282 | ( |
) |
POLESWORTH GARAGE LIMITED (REGISTERED NUMBER: 00903691) |
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 |
Profit on disposal of fixed assets | ( |
) | ( |
) |
Loss on revaluation of fixed assets | - | 272,000 |
Finance costs | 636,761 | 324,298 |
Finance income | (6,902 | ) | (6,552 | ) |
1,000,383 | 1,261,835 |
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 | 130,282 | 370 |
Bank overdrafts | ( |
) |
130,282 | (1,398,646 | ) |
Year ended 31 December 2022 |
31.12.22 | 1.1.22 |
£ | £ |
Cash and cash equivalents | 370 | 370 |
Bank overdrafts | ( |
) | ( |
) |
(1,398,646 | ) | (1,458,737 | ) |
POLESWORTH GARAGE LIMITED (REGISTERED NUMBER: 00903691) |
NOTES TO THE CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
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 | 370 | 129,912 | 130,282 |
Bank overdrafts | (1,399,016 | ) | 1,399,016 | - |
(1,398,646 | ) | 130,282 |
Debt |
Finance leases | (1,910,828 | ) | 659,188 | (1,251,640 | ) |
Debts falling due within 1 year | (2,757,781 | ) | 911,326 | (1,846,455 | ) |
Debts falling due after 1 year | (1,098,972 | ) | (2,477,121 | ) | (3,576,093 | ) |
(5,767,581 | ) | (906,607 | ) | (6,674,188 | ) |
Total | (7,166,227 | ) | 622,321 | (6,543,906 | ) |
POLESWORTH GARAGE LIMITED (REGISTERED NUMBER: 00903691) |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
1. | STATUTORY INFORMATION |
Polesworth Garage Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The significant accounting policies applied in the preparation of the financial statements are set out below. These policies have been consistently applied to all periods presented unless otherwise stated. |
Preparation of consolidated financial statements |
The financial statements contain information about Polesworth Garage Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company has taken the option under section 405 of the Companies Act 20016 not to prepare consolidated financial statements as its two subsidiaries Polesworth Motor Finance Limited and Polesworth Assist Limited are immaterial both individually and collectively. |
Significant judgements and estimates |
The preparation of the financial statements requires judgements, estimations and assumptions to be made that affect the reported values of assets, liabilities, revenues and expenses. The nature of estimation and judgement means that actual outcomes could differ from those estimates. Significant areas of estimation and judgement for the company includes the measurement of the fair value of the company's investment properties (Note 11). The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. |
Turnover and other income |
Turnover and other income is measured at the fair value of the consideration received or receivable, excluding value added tax. The policies adopted for the recognition of turnover and other income are: |
Sale of goods |
Turnover from the sale of goods is recognised when significant risks and rewards of ownership of the goods have transferred to the buyer. This is usually the point at which the customer has signed for or taken delivery of the goods. |
Rendering of services |
When the outcome of a transaction can be estimated reliably, turnover from the rendering of services is recognised by reference to the stage of completion at the balance sheet date. The stage of completion is measured by comparing the costs incurred for work performed to date to the total estimated costs. Where the outcome cannot be measured reliably, turnover is recognised only to the extent of the expenses recognised that are recoverable. |
Finance income |
Where goods are sold using hire purchase contracts or finance leases, the entity recognises turnover from the sale of goods and the rights to receive future lease payments as a debtor. Minimum lease payments are apportioned between finance income and the reduction of the lease debtor with finance income allocated so as to produce a constant periodic rate of interest on the net investment in the finance lease. |
POLESWORTH GARAGE LIMITED (REGISTERED NUMBER: 00903691) |
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 | - |
Fixtures and fittings | - |
Motor vehicles | - |
Operating lease vehicles | - |
Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. |
Investments in subsidiaries |
Investments in subsidiary undertakings are recognised at cost. |
Investment property |
Investment property for which fair value can be measured reliably without undue cost or effort are measured at fair value at each reporting date with changes in fair value recognised in profit or loss. |
Stocks |
Vehicle stocks are valued at the lower of cost and estimated sales price less cost to sell. |
Other stocks are valued at cost, using a combination of the first in first out and average cost methods, after making due allowance for obsolete and slow moving items. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Profit and Loss Account, 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 money purchase pension schemes. The assets of the schemes are held separately from those of the company in independently administered funds. Contributions payable for the year are charged to the profit and loss account. |
Debtors |
Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment. |
POLESWORTH GARAGE LIMITED (REGISTERED NUMBER: 00903691) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2. | ACCOUNTING POLICIES - continued |
Creditors |
Short term trade 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. |
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised and depreciated over the shorter of the lease term and the expected useful life of the asset. Minimum lease payments are apportioned between the finance charge and the reduction of the outstanding lease liability using the effective interest method. |
The company also finances the acquisition of courtesy cars under short-term hire purchase agreements. These vehicles are included in the company's vehicle stock. Minimum lease payments are apportioned between the finance charge and the reduction of the outstanding lease liability using the effective interest method. |
The interest element of these obligations is charged to the profit and loss account over the relevant period. The related obligations, net of future finance charges, are included in creditors. |
Rentals payable and receivable under operating leases are charged to the profit and loss account on a straight line basis. |
3. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the company. |
An analysis of turnover by class of business is given below: |
2023 | 2022 |
£ | £ |
4. | OTHER OPERATING INCOME |
2023 | 2022 |
£ | £ |
Rents received |
Claims and compensation | - | 75,711 |
Commission |
Finance income |
Other income |
1,340,046 | 1,489,714 |
5. | EMPLOYEES |
2023 | 2022 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
POLESWORTH GARAGE LIMITED (REGISTERED NUMBER: 00903691) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
5. | EMPLOYEES - continued |
The average number of employees during the year was as follows: |
2023 | 2022 |
Management and administration | 9 | 10 |
Sales and service | 50 | 50 |
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 is as follows: |
2023 | 2022 |
£ | £ |
Emoluments etc |
Pension contributions to money purchase schemes |
6. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2023 | 2022 |
£ | £ |
Depreciation - owned assets |
Profit on disposal of fixed assets | ( |
) | ( |
) |
Auditors' remuneration |
Operating lease rentals |
Rentals from operating leases | ( |
) | ( |
) |
7. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
£ | £ |
Bank interest and charges |
Loan interest |
Finance charges |
Other interest |
Hire purchase |
POLESWORTH GARAGE LIMITED (REGISTERED NUMBER: 00903691) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
8. | 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 |
Prior year adjustment | (371 | ) | (334 | ) |
Total current tax |
Deferred tax | ( |
) |
Tax on profit |
UK corporation tax has been charged at 25% (2022 - 19%). |
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 (2022 - |
Effects of: |
Expenses not deductible for tax purposes |
Adjustments to tax charge in respect of previous periods | ( |
) | ( |
) |
Indexation on revaluation gains | - | 13,783 |
Change in rate of taxation | (4,346 | ) | 73,471 |
Other | 8,366 | (6,313 | ) |
Total tax charge | 69,429 | 207,166 |
POLESWORTH GARAGE LIMITED (REGISTERED NUMBER: 00903691) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
9. | TANGIBLE FIXED ASSETS |
Freehold | Long | Plant and |
property | leasehold | machinery |
£ | £ | £ |
COST |
At 1 January 2023 |
Additions |
Disposals | ( |
) |
At 31 December 2023 |
DEPRECIATION |
At 1 January 2023 |
Charge for year |
Eliminated on disposal | ( |
) |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
Fixtures | Operating |
and | Motor | lease |
fittings | vehicles | vehicles | Totals |
£ | £ | £ | £ |
COST |
At 1 January 2023 |
Additions |
Disposals | ( |
) | ( |
) | ( |
) |
At 31 December 2023 |
DEPRECIATION |
At 1 January 2023 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) | ( |
) |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
Included in cost of land and buildings is freehold land of £ 526,161 (2022 - £ 526,161 ) which is not depreciated. |
Included in the total net book value of plant and machinery, motor vehicles and operating lease vehicles is £201,620 (2022 - £277,033) in respect of assets held under hire purchase and finance lease contracts. |
The remaining tangible assets with a net book value of £1,766,859 (2022 - £1,790,967) have been pledged as security for the company's bank borrowings. |
POLESWORTH GARAGE LIMITED (REGISTERED NUMBER: 00903691) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
10. | FIXED ASSET INVESTMENTS |
Shares in |
group |
undertakings |
£ |
COST |
At 1 January 2023 |
and 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
The company's investments at the Balance Sheet date in the share capital of companies include the following: |
Registered office: Polesworth Garage Limited, Grendon Road, Polesworth, Tamworth, Staffordshire. B78 1HA |
Nature of business: |
% |
Class of shares: | holding |
2023 | 2022 |
£ | £ |
Aggregate capital and reserves |
11. | INVESTMENT PROPERTY |
Total |
£ |
FAIR VALUE |
At 1 January 2023 |
and 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
If investment properties had not been revalued they would have been included at the following historical cost: |
2023 | 2022 |
£ | £ |
Cost | 3,121,371 | 3,121,371 |
Aggregate deprecation | 438,901 | 385,514 |
The directors have reviewed the fair value of investment properties at the year end, whilst not professionally qualified valuers they have however used their knowledge of the local property market, considering the values of similar properties, whilst taking into account matters relating to the individual properties held and having taken account of valuations carried out for its bankers. |
POLESWORTH GARAGE LIMITED (REGISTERED NUMBER: 00903691) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
12. | STOCKS |
2023 | 2022 |
£ | £ |
Motor vehicles | 3,339,782 | 4,928,520 |
Parts |
Fuel and forecourt | 79,381 | 78,843 |
Included in stock are vehicles with a net stock value of £2,075,918 (2022 - £2,398,566), which have been financed under hire purchase contracts, and are pledged as security under those agreements. The balance of stock is pledged as security for the company's bank borrowings. |
13. | DEBTORS |
2023 | 2022 |
£ | £ |
Amounts falling due within one year: |
Trade debtors |
Other debtors |
Directors' accounts | 649,952 | 481,361 |
Other taxation |
Prepayments |
Amounts falling due after more than one year: |
Trade and other | 4,576,753 | 4,073,584 |
Aggregate amounts |
Included in trade and other debtors due in both less than and more than one year are amounts due under finance agreements as noted below: |
2023 | 2022 |
£ | £ |
Amounts due not later than one year: |
Gross investment in lease | 2,680,524 | 2,461,846 |
Unearned finance income | (817,682 | ) | (732,752 | ) |
Net investment in lease | 1,862,842 | 1729,094 |
Amounts due between one and five years: |
Gross investment in lease | 5,335,178 | 4,709,180 |
Unearned finance income | (910,377 | ) | (813,856 | ) |
Net investment in lease | 4,424,801 | 3,895,324 |
POLESWORTH GARAGE LIMITED (REGISTERED NUMBER: 00903691) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Bank loans and overdrafts (see note 16) |
Other loans (see note 16) |
Hire purchase contracts (see note 17) |
Trade creditors |
Amounts owed to group undertakings |
Corporation tax |
Social security and other taxes |
Other creditors |
Directors' accounts | 19,686 | 61,432 |
Accrued expenses |
15. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2023 | 2022 |
£ | £ |
Bank loans (see note 16) |
Hire purchase contracts (see note 17) |
16. | LOANS |
An analysis of the maturity of loans is given below: |
2023 | 2022 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank overdrafts |
Bank loans |
Other loans |
Amounts falling due between two and five years: |
Bank loans |
Amounts falling due in more than five years: |
Repayable by instalments |
Bank loans | 2,120,312 | 304,018 |
Bank loans are repayable by instalments and are subject to variable interest rates from 2.5% to 3.7% above base rate. |
POLESWORTH GARAGE LIMITED (REGISTERED NUMBER: 00903691) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
17. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Hire purchase contracts |
2023 | 2022 |
£ | £ |
Gross obligations repayable: |
Within one year |
Between one and five years |
Finance charges repayable: |
Within one year |
Between one and five years |
Net obligations repayable: |
Within one year |
Between one and five years |
The above minimum lease payments relate to hire purchase contracts. |
Non-cancellable operating | leases |
2023 | 2022 |
£ | £ |
Within one year |
Between one and five years |
In more than five years |
The above operating lease payments relate to the ground rent payable on the company's leasehold property. |
POLESWORTH GARAGE LIMITED (REGISTERED NUMBER: 00903691) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
18. | SECURED DEBTS |
The following secured debts are included within creditors: |
2023 | 2022 |
£ | £ |
Bank overdraft |
Bank loans |
Hire purchase contracts | 1,251,640 | 1,910,828 |
Bank debt is secured by first legal charges on the company's freehold land and buildings and investment properties, together with fixed and floating charges on its other assets. Other loans and hire purchase liabilities are secured on vehicles in stocks and fixed assets as shown above. |
Other stocking loans of £1,488,325 (2022 - £2,227,499) are subject to a personal guarantee given by M R Newbold (director). |
19. | PROVISIONS FOR LIABILITIES |
2023 | 2022 |
£ | £ |
Deferred tax |
Accelerated capital allowances | 6,500 | 10,000 |
Revaluation of investment properties | 309,000 | 309,000 |
315,500 | 319,000 |
Deferred |
tax |
£ |
Balance at 1 January 2023 |
Credit to Profit and Loss Account during year | ( |
) |
Balance at 31 December 2023 |
The amount of net reversal of deferred tax expected to occur next year is £12,500 (2022 - £3,000) relating to the reversal of existing timing differences on tangible fixed assets. |
20. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary | £1 | 200,000 | 200,000 |
Ordinary shares carry full voting rights and have no restrictions attached. |
POLESWORTH GARAGE LIMITED (REGISTERED NUMBER: 00903691) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
21. | RESERVES |
Retained | Revaluation | Other |
earnings | reserve | reserves | Totals |
£ | £ | £ | £ |
At 1 January 2023 | 9,204,204 |
Profit for the year |
At 31 December 2023 | 9,397,891 |
Retained earnings - retained earnings represents cumulative distributable profits net of dividends together with undistributable net revaluation gains of £841,152 (2022 - £842,152). |
Revaluation reserve - the revaluation reserve represents the cumulative effect of revaluations of investment properties net of any provision for deferred tax prior to the adoption of Financial Reporting Standard 102. |
Other reserves - other reserves represents a non-distributable capital redemption reserve. |
22. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
The following advances and credits to directors subsisted during the years ended 31 December 2023 and 31 December 2022: |
2023 | 2022 |
£ | £ |
Balance outstanding at start of year | 481,361 | 443,126 |
Amounts advanced | 168,591 | 102,213 |
Amounts repaid | - | (63,978 | ) |
Balance outstanding at end of year | 649,952 | 481,361 |
There are no set repayment terms and no interest has been charged on amounts advanced. |
23. | RELATED PARTY DISCLOSURES |
2023 | 2022 |
£ | £ |
Sales |
Purchases |
Rental income | 25,000 | 44,000 |
Amount due from related parties |
Amount due to related parties |
2023 | 2022 |
£ | £ |
Rental income | 18,000 | 18,000 |
Amount due to related parties |
POLESWORTH GARAGE LIMITED (REGISTERED NUMBER: 00903691) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
23. | RELATED PARTY DISCLOSURES - continued |
2023 | 2022 |
£ | £ |
Sales |
Purchases |
Rental income | 23,760 | 22,200 |
Amount due from related parties |
24. | ULTIMATE CONTROLLING PARTY |
The controlling party is M R Newbold. |