IRIS Accounts Production v24.2.0.383 04223523 Board of Directors 1.6.23 31.5.24 31.5.24 transport, storage, maintenance and refurbishment of motor vehicles. true false true true false false false true false Ordinary 1.00000 iso4217:GBPiso4217:USDiso4217:EURxbrli:sharesxbrli:pureutr:tonnesutr:kWh042235232023-05-31042235232024-05-31042235232023-06-012024-05-31042235232022-11-30042235232022-12-012023-05-31042235232023-05-3104223523ns15:EnglandWales2023-06-012024-05-3104223523ns14:PoundSterling2023-06-012024-05-3104223523ns10:Director12023-06-012024-05-3104223523ns10:PrivateLimitedCompanyLtd2023-06-012024-05-3104223523ns10:FRS1022023-06-012024-05-3104223523ns10:Audited2023-06-012024-05-3104223523ns10:LargeMedium-sizedCompaniesRegimeForDirectorsReport2023-06-012024-05-3104223523ns10:LargeMedium-sizedCompaniesRegimeForAccounts2023-06-012024-05-3104223523ns10:FullAccounts2023-06-012024-05-310422352312023-06-012024-05-3104223523ns10:OrdinaryShareClass12023-06-012024-05-3104223523ns10:Director22023-06-012024-05-3104223523ns10:CompanySecretary12023-06-012024-05-3104223523ns10:RegisteredOffice2023-06-012024-05-3104223523ns5:CurrentFinancialInstruments2024-05-3104223523ns5:CurrentFinancialInstruments2023-05-3104223523ns5:Non-currentFinancialInstruments2024-05-3104223523ns5:Non-currentFinancialInstruments2023-05-3104223523ns5:ShareCapital2024-05-3104223523ns5:ShareCapital2023-05-3104223523ns5:RetainedEarningsAccumulatedLosses2024-05-3104223523ns5:RetainedEarningsAccumulatedLosses2023-05-3104223523ns5:ShareCapital2022-11-3004223523ns5:RetainedEarningsAccumulatedLosses2022-11-3004223523ns5:RetainedEarningsAccumulatedLosses2022-12-012023-05-3104223523ns5:RetainedEarningsAccumulatedLosses2023-06-012024-05-310422352312023-06-012024-05-310422352312022-12-012023-05-3104223523ns5:NetGoodwill2023-06-012024-05-3104223523ns5:IntangibleAssetsOtherThanGoodwill2023-06-012024-05-3104223523ns5:ShortLeaseholdAssetsns5:LandBuildings2023-06-012024-05-3104223523ns5:PlantMachinery2023-06-012024-05-3104223523ns5:FurnitureFittings2023-06-012024-05-3104223523ns5:MotorVehicles2023-06-012024-05-3104223523ns5:ComputerEquipment2023-06-012024-05-3104223523ns10:HighestPaidDirector2023-06-012024-05-3104223523ns5:PlantEquipmentOtherAssetsUnderOperatingLeases2023-06-012024-05-3104223523ns5:PlantEquipmentOtherAssetsUnderOperatingLeases2022-12-012023-05-3104223523ns5:OwnedAssets2023-06-012024-05-3104223523ns5:OwnedAssets2022-12-012023-05-3104223523ns5:NetGoodwill2022-12-012023-05-310422352322023-06-012024-05-310422352322022-12-012023-05-3104223523ns5:HirePurchaseContracts2023-06-012024-05-3104223523ns5:HirePurchaseContracts2022-12-012023-05-3104223523ns5:NetGoodwill2023-05-3104223523ns5:NetGoodwill2024-05-3104223523ns5:NetGoodwill2023-05-3104223523ns5:ShortLeaseholdAssetsns5:LandBuildings2023-05-3104223523ns5:PlantMachinery2023-05-3104223523ns5:FurnitureFittings2023-05-3104223523ns5:ShortLeaseholdAssetsns5:LandBuildings2024-05-3104223523ns5:PlantMachinery2024-05-3104223523ns5:FurnitureFittings2024-05-3104223523ns5:ShortLeaseholdAssetsns5:LandBuildings2023-05-3104223523ns5:PlantMachinery2023-05-3104223523ns5:FurnitureFittings2023-05-3104223523ns5:MotorVehicles2023-05-3104223523ns5:ComputerEquipment2023-05-3104223523ns5:MotorVehicles2024-05-3104223523ns5:ComputerEquipment2024-05-3104223523ns5:MotorVehicles2023-05-3104223523ns5:ComputerEquipment2023-05-3104223523ns5:CurrentFinancialInstrumentsns5:WithinOneYear2024-05-3104223523ns5:CurrentFinancialInstrumentsns5:WithinOneYear2023-05-3104223523ns5:AcceleratedTaxDepreciationDeferredTax2024-05-3104223523ns5:AcceleratedTaxDepreciationDeferredTax2023-05-3104223523ns5:TaxLossesCarry-forwardsDeferredTax2024-05-3104223523ns5:TaxLossesCarry-forwardsDeferredTax2023-05-3104223523ns5:Non-currentFinancialInstrumentsns5:BetweenTwoFiveYears2024-05-3104223523ns5:Non-currentFinancialInstrumentsns5:BetweenTwoFiveYears2023-05-3104223523ns5:HirePurchaseContractsns5:CurrentFinancialInstrumentsns5:WithinOneYear2024-05-3104223523ns5:HirePurchaseContractsns5:CurrentFinancialInstrumentsns5:WithinOneYear2023-05-3104223523ns5:BetweenOneFiveYearsns5:HirePurchaseContracts2024-05-3104223523ns5:BetweenOneFiveYearsns5:HirePurchaseContracts2023-05-3104223523ns5:HirePurchaseContracts2024-05-3104223523ns5:HirePurchaseContracts2023-05-3104223523ns5:WithinOneYear2024-05-3104223523ns5:WithinOneYear2023-05-3104223523ns5:Secured2024-05-3104223523ns5:Secured2023-05-3104223523ns5:DeferredTaxation2023-05-3104223523ns5:DeferredTaxation2024-05-3104223523ns10:OrdinaryShareClass12024-05-3104223523ns5:RetainedEarningsAccumulatedLosses2023-05-310422352312023-06-012024-05-31
REGISTERED NUMBER: 04223523 (England and Wales)






























STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MAY 2024

FOR

IT FLEET AUTOMOTIVE LIMITED

IT FLEET AUTOMOTIVE LIMITED (REGISTERED NUMBER: 04223523)

CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024










Page

Company Information 1

Strategic Report 2

Report of the Directors 4

Report of the Independent Auditors 6

Income Statement 9

Other Comprehensive Income 10

Balance Sheet 11

Statement of Changes in Equity 12

Cash Flow Statement 13

Notes to the Cash Flow Statement 14

Notes to the Financial Statements 16


IT FLEET AUTOMOTIVE LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31 MAY 2024







DIRECTORS: Mr AWJ Timmis
Mrs KB Timmis



SECRETARY: Mrs KB Timmis



REGISTERED OFFICE: IT House, Notley Park
Raydon Road
Great Wenham
Colchester
Essex
CO7 6QD



REGISTERED NUMBER: 04223523 (England and Wales)



SENIOR STATUTORY AUDITOR: Mark Harrison FCA BA (Hons)



AUDITORS: Mark J Rees LLP, Statutory Auditor
Chartered Accountants
Granville Hall
Granville Road
Leicester
LE1 7RU

IT FLEET AUTOMOTIVE LIMITED (REGISTERED NUMBER: 04223523)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 MAY 2024


The directors aim to provide a balanced and comprehensive review of the development and performance of the business during the financial period and its position at the end of the period. The review is consistent with the size and nature of the business and is written in the context of the risks and uncertainties faced.

IT Fleet Automotive are a Leading Nationwide Automotive Services Provider offering vehicle de-fleet and fulfilment services across the UK automotive industry including major leasing, fleet, remarketing, manufacturer, dealer and finance organisations.

As one of the UK's leading independent automotive service providers, IT Fleet Automotive provide extensive nationwide vehicle logistics, quality vehicle refurbishment and flexible storage services across our diverse customer base backed by a unique management system. Using their extensive industry knowledge, the management team ensure forward thinking solutions are created for an ever-changing industry.

Website address www.itfleet.co.uk

REVIEW OF BUSINESS
The results for the year ended 31 May 2024 and financial position of the company are as shown in the annexed financial statements.

The directors are pleased to report the company has continued to perform strongly achieving an operating profit of £1,258,554 for the year to May 2024.

The directors attribute this performance to several factors, including new contract wins, focussing on higher margin business and tight controls on overheads.

FINANCIAL KEY PERFORMANCE INDICATORS
The directors consider that the key performance indicators are those that communicate the financial performance and strength of the company, being revenue, operating profit and gross profit margin.

The turnover and operating profit of the company was as follows:

KPI's £   Year ended 31.5.246 months to 31.5.23

Revenue36,47816,022
Operating profit1,259780
Gross profit margin18.0%19.0%



IT FLEET AUTOMOTIVE LIMITED (REGISTERED NUMBER: 04223523)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 MAY 2024

PRINCIPAL RISKS AND UNCERTAINTIES
As for many businesses of this size, the business environment in which the company operates continues to be challenging. The company faces competition in its markets from other major suppliers of fleet services and is of course subject to consumer and commercial spending patterns and the overall level of disposable income within the economy. However, the business continues to mitigate these risks by maintaining a broad customer base and focusing, where possible, on less economically cyclical segments of the market. The business has continued to replace older transporters with new vehicles and also grow its fleet to support growth in the logistics business. A significant investment in new ovens at its Raydon refurbishment site has also improved efficiencies.

With these risks and uncertainties in mind, we are aware that any plans for the future development of the business may be subject to unforeseen events outside of our control. However, we are confident that with the increased levels of business, cost saving initiatives, the Arbuthnot Bank facility and shareholder support, together with our loyal and diverse customer portfolio, the business will continue to grow profitably.


FUTURE ACTIVITIES
The company remains focused on improving service levels and understanding the changing needs of its customers.

Since the year end the company has continued to increase the size of its fleet to ensure it can fulfil the increased demand for its logistics services.

The refurbishment side of the business continues to grow as the independent capacity in the market reduces and more contracts are entered into.

ON BEHALF OF THE BOARD:





Mr AWJ Timmis - Director


12 September 2024

IT FLEET AUTOMOTIVE LIMITED (REGISTERED NUMBER: 04223523)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 MAY 2024


The directors present their report with the financial statements of the company for the year ended 31 May 2024.

DIVIDENDS
No dividends will be distributed for the year ended 31 May 2024.

RESEARCH AND DEVELOPMENT
Research and development activities are undertaken on the company's white labelling IT software.

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

Mr AWJ Timmis
Mrs KB Timmis

DONATIONS
No political donations were made during the year or previous period.

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 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.

IT FLEET AUTOMOTIVE LIMITED (REGISTERED NUMBER: 04223523)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 MAY 2024


AUDITORS
The auditors, Mark J Rees LLP, Statutory Auditor, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





Mr AWJ Timmis - Director


12 September 2024

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
IT FLEET AUTOMOTIVE LIMITED


Opinion
We have audited the financial statements of IT Fleet Automotive Limited (the 'company') for the year ended 31 May 2024 which comprise the Income Statement, Other 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 May 2024 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.

Material uncertainty related to going concern
We draw attention to note 2 in the financial statements, which indicates that the group's current liabilities exceeded its total assets by £2,576,714. As stated in note 2, these events or conditions, along with other matters as set forth in note 2, indicate that a material uncertainty exists that may cast significant doubt on the company's ability to continue as a going concern. However, as disclosed the ongoing support of the company's finance facilities for a period of 12 months from the date of approval has been obtained. In addition, the directors have confirmed that £851,427 of their loan accounts will not be drawn from the company for a period of at least 12 months from the year end. Our opinion is not modified in respect of this matter.

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
IT FLEET AUTOMOTIVE 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.

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 of irregularities, including fraud.

We have determined that the principal risk areas where material irregularities could occur were related to posting manual journal entries to manipulate financial performance, revenue recognition and significant one-off or unusual transactions.

Our audit procedures were designed to respond in particular to these identified risks (including non compliance with laws and regulations and fraud).

Our audit procedures included, but were not limited to:
- A review of a sample of orders received in the year to ensure they were correctly recorded in revenue and detailed cut off testing around the year end to ensure revenue is correctly recognised.
- A review of laws and regulations the company is subject to, being specifically health and safety, followed by compliance checks and discussions with management to ensure no instances of non compliance.
- Addressing the risks of fraud through management override of controls by performing journal entry testing.

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
IT FLEET AUTOMOTIVE 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.




Mark Harrison FCA BA (Hons) (Senior Statutory Auditor)
for and on behalf of Mark J Rees LLP, Statutory Auditor
Chartered Accountants
Granville Hall
Granville Road
Leicester
LE1 7RU

13 September 2024

IT FLEET AUTOMOTIVE LIMITED (REGISTERED NUMBER: 04223523)

INCOME STATEMENT
FOR THE YEAR ENDED 31 MAY 2024

Period
1.12.22
Year Ended to
31.5.24 31.5.23
Notes £    £   

TURNOVER 36,477,923 16,022,159

Cost of sales 29,898,995 12,979,117
GROSS PROFIT 6,578,928 3,043,042

Administrative expenses 5,320,374 2,294,226
1,258,554 748,816

Other operating income - 31,410
OPERATING PROFIT 4 1,258,554 780,226


Interest payable and similar expenses 5 522,877 240,688
PROFIT BEFORE TAXATION 735,677 539,538

Tax on profit 6 99,106 198,803
PROFIT FOR THE FINANCIAL YEAR 636,571 340,735

IT FLEET AUTOMOTIVE LIMITED (REGISTERED NUMBER: 04223523)

OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MAY 2024

Period
1.12.22
Year Ended to
31.5.24 31.5.23
Notes £    £   

PROFIT FOR THE YEAR 636,571 340,735


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

636,571

340,735

IT FLEET AUTOMOTIVE LIMITED (REGISTERED NUMBER: 04223523)

BALANCE SHEET
31 MAY 2024

2024 2023
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 7 1,500 3,000
Tangible assets 8 1,005,311 809,405
1,006,811 812,405

CURRENT ASSETS
Stocks 9 181,608 104,215
Debtors 10 6,393,021 6,821,566
Cash at bank and in hand 535,638 343,231
7,110,267 7,269,012
CREDITORS
Amounts falling due within one year 11 9,266,551 8,205,233
NET CURRENT LIABILITIES (2,156,284 ) (936,221 )
TOTAL ASSETS LESS CURRENT
LIABILITIES

(1,149,473

)

(123,816

)

CREDITORS
Amounts falling due after more than one year 12 1,427,241 3,089,469
NET LIABILITIES (2,576,714 ) (3,213,285 )

CAPITAL AND RESERVES
Called up share capital 17 178,100 178,100
Retained earnings 18 (2,754,814 ) (3,391,385 )
SHAREHOLDERS' FUNDS (2,576,714 ) (3,213,285 )

The financial statements were approved by the Board of Directors and authorised for issue on 12 September 2024 and were signed on its behalf by:





Mr AWJ Timmis - Director


IT FLEET AUTOMOTIVE LIMITED (REGISTERED NUMBER: 04223523)

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2024

Called up
share Retained Total
capital earnings equity
£    £    £   
Balance at 1 December 2022 178,100 (3,732,120 ) (3,554,020 )

Changes in equity
Total comprehensive income - 340,735 340,735
Balance at 31 May 2023 178,100 (3,391,385 ) (3,213,285 )

Changes in equity
Total comprehensive income - 636,571 636,571
Balance at 31 May 2024 178,100 (2,754,814 ) (2,576,714 )

IT FLEET AUTOMOTIVE LIMITED (REGISTERED NUMBER: 04223523)

CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 MAY 2024

Period
1.12.22
Year Ended to
31.5.24 31.5.23
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 1,478,938 449,154
Interest paid (521,169 ) (240,009 )
Interest element of hire purchase payments
paid

(1,708

)

(679

)
Net cash from operating activities 956,061 208,466

Cash flows from investing activities
Purchase of tangible fixed assets (406,034 ) (26,872 )
Sale of tangible fixed assets 51,131 18,721
Sale of fixed asset investments - 100
Net cash from investing activities (354,903 ) (8,051 )

Cash flows from financing activities
Loan repayments in year (442,925 ) (399,996 )
Capital repayments in year (9,536 ) (11,842 )
Amount introduced by directors 90,481 589,551
Amount withdrawn by directors (38,817 ) (90,575 )
Net cash from financing activities (400,797 ) 87,138

Increase in cash and cash equivalents 200,361 287,553
Cash and cash equivalents at beginning of
year

2

335,277

47,724

Cash and cash equivalents at end of year 2 535,638 335,277

IT FLEET AUTOMOTIVE LIMITED (REGISTERED NUMBER: 04223523)

NOTES TO THE CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 MAY 2024


1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS
Period
1.12.22
Year Ended to
31.5.24 31.5.23
£    £   
Profit before taxation 735,677 539,538
Depreciation charges 159,779 73,393
Loss/(profit) on disposal of fixed assets 718 (4,528 )
Finance costs 522,877 240,688
1,419,051 849,091
Increase in stocks (77,393 ) (16,884 )
Decrease/(increase) in trade and other debtors 329,439 (1,210,148 )
(Decrease)/increase in trade and other creditors (192,159 ) 827,095
Cash generated from operations 1,478,938 449,154

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 May 2024
31.5.24 1.6.23
£    £   
Cash and cash equivalents 535,638 343,231
Bank overdrafts - (7,954 )
535,638 335,277
Period ended 31 May 2023
31.5.23 1.12.22
£    £   
Cash and cash equivalents 343,231 47,724
Bank overdrafts (7,954 ) -
335,277 47,724


IT FLEET AUTOMOTIVE LIMITED (REGISTERED NUMBER: 04223523)

NOTES TO THE CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 MAY 2024


3. ANALYSIS OF CHANGES IN NET DEBT

At 1.6.23 Cash flow At 31.5.24
£    £    £   
Net cash
Cash at bank and in hand 343,231 192,407 535,638
Bank overdrafts (7,954 ) 7,954 -
335,277 200,361 535,638
Debt
Finance leases (9,536 ) 9,536 -
Debts falling due within 1 year (399,996 ) (961,636 ) (1,361,632 )
Debts falling due after 1 year (1,982,902 ) 1,407,088 (575,814 )
(2,392,434 ) 454,988 (1,937,446 )
Total (2,057,157 ) 655,349 (1,401,808 )

IT FLEET AUTOMOTIVE LIMITED (REGISTERED NUMBER: 04223523)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024


1. COMPANY INFORMATION

IT Fleet Automotive Limited is a private limited company (registered number: 04223523) which is incorporated and domiciled in the United Kingdom. The address of its registered office is IT House, Notley Park, Raydon Road, Great Wenham, Colchester, Essex, CO7 6QD, United Kingdom.

The principal activities of IT Fleet Automotive Limited consist of providing transport, appraisal and refurbishment services within the motor industry.

The presentation currency of the financial statements is in pound sterling (£).

The previous period for the company was shortened to 6 months therefore comparatives are not comparable.

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.

Significant judgements and estimates
In preparing the financial statements, management is required to exercise judgement in making estimates and assumptions that affect reported amounts and disclosures. These judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Actual results could differ from those estimates and assumptions. The following accounting policies have been identified as being particularly sensitive to complex or subjective judgements or estimates:

Performance and revenue recognition for work in progress
The company derives a significant proportion of its revenue from the supply of refurbishment of vehicles. The amount invoiced is agreed prior to the work being carried out. Where the outcome can be estimated reliably, refurbishment revenue is recognised to the extent that the services have been performed. Performance is measured based on the stage of completion. Management judgement and experience is required to determine the completeness of those forecasts, the recoverability of the costs incurred and the revenue recognised on jobs in progress.

Turnover
Turnover represents net invoiced sales of goods and services, excluding value added tax.

Turnover in respect of vehicle transport is recognised at the point vehicles are delivered.

Turnover in respect of vehicle refurbishment is recognised based on the stage of completion. Adjustments are made for refurbishment work undertaken which is not invoiced at the year end. Invoiced sales for work completed after the year end are adjusted as deferred income according to the stage of completion.

Turnover in respect of vehicle storage charges are recognised over the storage period. Storage administration charges are recognised at the start of the storage period.

Goodwill
Goodwill, being the amount paid in connection with the acquisition of a business in 2006, is being amortised evenly over its estimated useful life. The remaining estimated useful life as at the year-end is one year.

IT FLEET AUTOMOTIVE LIMITED (REGISTERED NUMBER: 04223523)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MAY 2024


2. ACCOUNTING POLICIES - continued

Intangible assets
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Short leasehold - 10% straight line and equal instalments over the lease period
Plant and machinery - 15% on reducing balance
Fixtures and fittings - 15% on reducing balance
Motor vehicles - 25% on reducing balance
Computer equipment - 15% on reducing balance

Depreciation is provided from the month of acquisition.

Stocks
Stocks are valued at the lower of cost and net realisable value, 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 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.

Research and development
Expenditure on research and development is written off in the year in which it is incurred.


Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

IT FLEET AUTOMOTIVE LIMITED (REGISTERED NUMBER: 04223523)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MAY 2024


2. ACCOUNTING POLICIES - continued

Hire purchase and leasing commitments
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

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.

Debtors
Short term debtors are measured at fair value and subsequently at amortised cost.

Loans receivable and long term debtors are measured initially at fair value, net of transaction costs, and are measured subsequently, where material, at amortised cost using the effective interest method, less any impairment.

Creditors
Short term creditors are measured at fair value and subsequently at amortised cost.

Other financial liabilities, including bank loans are measured initially at fair value, net of transaction costs, and are measured subsequently, where material, at amortised cost using the effective interest method, less any impairment.

Going concern
At the year end the company's liabilities exceeded its assets by £2,576,714. This has reduced since the start of the period by the profit of £636,571 achieved during the financial year. The company is continuing to trade profitably and is forecasting to achieve higher profits for the coming year.

The company depends on its finance facilities and creditors to meet its day to day working capital requirements. The company's finance providers have confirmed their continued support for a minimum of 12 months from the approval of these financial statements.

The company has made use of government support packages available, being a CBIL loan and RLS Revolving Credit Facility. The original CBIL was for £2,000,000 and is amortised at £400,000 per year. All monthly repayments have been made. The loan will be fully repaid in November 2026.

The directors consider that the facilities being offered by the finance providers, the loans provided to the company by the directors along with the profits generated by the company are sufficient to provide adequate resources to support the going concern basis of accounting in preparing the financial statements.

IT FLEET AUTOMOTIVE LIMITED (REGISTERED NUMBER: 04223523)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MAY 2024


3. EMPLOYEES AND DIRECTORS
Period
1.12.22
Year Ended to
31.5.24 31.5.23
£    £   
Wages and salaries 8,034,274 3,874,317
Social security costs 792,616 220,224
Other pension costs 260,043 118,336
9,086,933 4,212,877

The average number of employees during the year was as follows:
Period
1.12.22
Year Ended to
31.5.24 31.5.23

Administration staff 35 32
Production staff 170 183
205 215

Period
1.12.22
Year Ended to
31.5.24 31.5.23
£    £   
Directors' remuneration 264,761 180,518

Information regarding the highest paid director for the year ended 31 May 2024 is as follows:


Year Ended
31.5.24
£   
Emoluments etc 199,061

IT FLEET AUTOMOTIVE LIMITED (REGISTERED NUMBER: 04223523)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MAY 2024


4. OPERATING PROFIT

The operating profit is stated after charging/(crediting):

Period
1.12.22
Year Ended to
31.5.24 31.5.23
£    £   
Hire of plant and machinery 30,312 19,563
Depreciation - owned assets 158,279 72,644
Loss/(profit) on disposal of fixed assets 718 (4,528 )
Goodwill amortisation 1,500 750
Auditors remuneration 11,600 10,850

5. INTEREST PAYABLE AND SIMILAR EXPENSES
Period
1.12.22
Year Ended to
31.5.24 31.5.23
£    £   
Bank interest 68,439 140,947
Factoring interest 240,854 84,750
Other interest 211,876 14,312
Hire purchase 1,708 679
522,877 240,688

6. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
Period
1.12.22
Year Ended to
31.5.24 31.5.23
£    £   
Deferred taxation 99,106 198,803
Tax on profit 99,106 198,803

UK corporation tax has been charged at 25% (2023 - 25%).

IT FLEET AUTOMOTIVE LIMITED (REGISTERED NUMBER: 04223523)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MAY 2024


6. TAXATION - continued

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

Period
1.12.22
Year Ended to
31.5.24 31.5.23
£    £   
Profit before tax 735,677 539,538
Profit multiplied by the standard rate of corporation tax in the UK of 25%
(2023 - 25%)

183,919

134,885

Effects of:
Expenses not deductible for tax purposes 60,483 84,961
Capital allowances in excess of depreciation (63,362 ) -
Depreciation in excess of capital allowances - 45,105
enhanced expenditure
respect of previous periods
year

Provision of losses carried forward (81,934 ) (66,148 )
Total tax charge 99,106 198,803

7. INTANGIBLE FIXED ASSETS
Goodwill
£   
COST
At 1 June 2023
and 31 May 2024 30,000
AMORTISATION
At 1 June 2023 27,000
Amortisation for year 1,500
At 31 May 2024 28,500
NET BOOK VALUE
At 31 May 2024 1,500
At 31 May 2023 3,000

IT FLEET AUTOMOTIVE LIMITED (REGISTERED NUMBER: 04223523)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MAY 2024


8. TANGIBLE FIXED ASSETS
Fixtures
Short Plant and and
leasehold machinery fittings
£    £    £   
COST
At 1 June 2023 649,888 735,570 69,693
Additions 20,767 340,296 21,833
Disposals - (222,902 ) (632 )
At 31 May 2024 670,655 852,964 90,894
DEPRECIATION
At 1 June 2023 568,671 576,985 34,330
Charge for year 17,100 49,941 6,326
Eliminated on disposal - (208,239 ) (420 )
At 31 May 2024 585,771 418,687 40,236
NET BOOK VALUE
At 31 May 2024 84,884 434,277 50,658
At 31 May 2023 81,217 158,585 35,363

Motor Computer
vehicles equipment Totals
£    £    £   
COST
At 1 June 2023 169,030 1,115,957 2,740,138
Additions 23,138 - 406,034
Disposals (58,405 ) - (281,939 )
At 31 May 2024 133,763 1,115,957 2,864,233
DEPRECIATION
At 1 June 2023 57,185 693,562 1,930,733
Charge for year 25,732 59,180 158,279
Eliminated on disposal (21,431 ) - (230,090 )
At 31 May 2024 61,486 752,742 1,858,922
NET BOOK VALUE
At 31 May 2024 72,277 363,215 1,005,311
At 31 May 2023 111,845 422,395 809,405

IT FLEET AUTOMOTIVE LIMITED (REGISTERED NUMBER: 04223523)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MAY 2024


9. STOCKS
2024 2023
£    £   
Stocks 181,608 104,215

10. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Trade debtors 3,295,640 3,887,566
Bad debt provision (17,336 ) (24,838 )
Other debtors 127,077 238,891
Taxation 33,422 33,422
Deferred tax asset 97,275 196,381
Prepayments and accrued income 2,856,943 2,490,144
6,393,021 6,821,566

Deferred tax asset
2024 2023
£    £   
Accelerated capital allowances (130,668 ) (177,070 )
Tax losses carried forward 227,943 373,451
97,275 196,381

Included within trade debtors at the year end are invoice financed debts amounting to £3,135,532 (2023: £3,887,566).

11. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Bank loans and overdrafts (see note 13) 1,361,632 407,950
Hire purchase contracts (see note 14) - 2,732
Trade creditors 2,575,729 2,820,376
Social security and other taxes 235,141 281,724
VAT 641,107 495,999
Other creditors 3,283,324 3,725,934
Directors' current accounts 300,000 -
Accruals and deferred income 869,618 470,518
9,266,551 8,205,233

IT FLEET AUTOMOTIVE LIMITED (REGISTERED NUMBER: 04223523)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MAY 2024


12. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
2024 2023
£    £   
Bank loans (see note 13) 575,814 1,982,902
Hire purchase contracts (see note 14) - 6,804
Directors' loan accounts 851,427 1,099,763
1,427,241 3,089,469

13. LOANS

An analysis of the maturity of loans is given below:

2024 2023
£    £   
Amounts falling due within one year or on demand:
Bank overdrafts - 7,954
Bank loans 1,361,632 399,996
1,361,632 407,950

Amounts falling due between two and five years:
Bank loans - 2-5 years 575,814 1,982,902

14. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts
2024 2023
£    £   
Net obligations repayable:
Within one year - 2,732
Between one and five years - 6,804
- 9,536

Non-cancellable operating leases
2024 2023
£    £   
Within one year 23,700 80,128

IT FLEET AUTOMOTIVE LIMITED (REGISTERED NUMBER: 04223523)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MAY 2024


15. SECURED DEBTS

The following secured debts are included within creditors:

2024 2023
£    £   
Bank loans 1,937,446 2,382,898
Hire purchase contracts - 9,536
Other creditors 2,880,493 3,394,315
4,817,939 5,786,749

Within other creditors there is a balance of £2,880,493 (2023: £3,394,315) owed to Arbuthnot Commercial Asset Based Lending Limited which is secured by way of a fixed and floating charge over the assets of the company. Not all trade debtors are subject to invoice financing, an advance is provided by Arbuthnot Commercial Asset Based Lending Limited on those debts that are financed.

Hire purchase contracts are secured on the assets to which they relate. All hire purchase contracts have been repaid in full during the year.

Included within bank loans is a CBIL Loan with the balance outstanding of £975,810 (2023: £1,378,334) and RLS Loan with a balance outstanding of £961,636 (2023: £1,004,564).

16. DEFERRED TAX
£   
Balance at 1 June 2023 (196,381 )
Movement for year 99,106
Balance at 31 May 2024 (97,275 )

17. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2024 2023
value: £    £   
178,100 Ordinary £1 178,100 178,100

18. RESERVES
Retained
earnings
£   

At 1 June 2023 (3,391,385 )
Profit for the year 636,571
At 31 May 2024 (2,754,814 )

IT FLEET AUTOMOTIVE LIMITED (REGISTERED NUMBER: 04223523)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MAY 2024


19. PENSION COMMITMENTS

The company operates a defined contribution pension scheme for the benefit of employees. The assets of the scheme are administered by trustees in a fund independent from those of the company.

The total employer contributions paid in the period amounted to £260,043 (2023: £118,336).

Amounts owed to the scheme at 31 May 2024 amounted to £39,410 (2023: £30,145).

20. DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

Including within other creditors is £1,151,426 (2023: £1,099,763) owed to the directors at 31 May 2024, whereby interest is payable on this amount.

21. RELATED PARTY DISCLOSURES

During the period, the company was charged rent in the normal course of business from IT Fleet Solutions Limited totalling £126,500 (2023: £75,900). At 31 May 2024, the company was owed £49,819 (2023: £41,359) from IT Fleet Solutions Limited.

Amounts owed to IT Fleet Logistics Limited at the period end amounted to £Nil (2023: £31,233).

During the period the company invoiced goods and services in the normal course of business to The Fleet Auction Group Limited amounting to £54,865 (2023: £107,590). The company also purchased goods and services in the normal course of business from The Fleet Auction Group Limited of £576,235 (2023: £321,832). The balance owed by The Fleet Auction Group Limited to the company at 31 May 2024 amounted to £20,236 (2023: £14,351). The balance owed to The Fleet Auction Group Limited by the company at 31 May 2024 amounted to £359,290 (2023: £486,891)

Mr AWJ Timmis, director, is also a director and shareholder of the above related parties. During the period, the company purchased a car for £3,138 from Mr AWJ Timmis.

Mr AWJ Timmis and Mrs K Timmis have provided a personal guarantee of £500,000 to Arbuthnot Asset Based Lending Limited in respect of the company's invoice financing agreement.

The company has provided a cross client guarantee to Arbuthnot Asset Based Lending Limited in respect of IT Fleet Logistics Limited, Fleet Automotive Holdings Limited and IT Fleet Solutions Limited.

22. ULTIMATE CONTROLLING PARTY

Mr and Mrs AWJ Timmis are considered to be the controlling party of the company by virtue of their directorship and shareholding.