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Registered number: 02101047
Tynlon Garage Limited
Strategic Report, Directors' Report and
Financial Statements
For The Year Ended 31 December 2023
Butterworths
Chartered Accountants
Windsor House
26 Mostyn Avenue
Llandudno
Conwy
LL30 1YY
Contents
Page
Strategic Report 1
Directors' Report 2—3
Independent Auditor's Report 4—7
Statement of Income and Retained Earnings 8
Balance Sheet 9—10
Statement of Cash Flows 11
Notes to the Statement of Cash Flows 12
Notes to the Financial Statements 13—21
Page 1
Strategic Report
The directors present their strategic report for the year ended 31 December 2023.
Review of the Business
Sales have increased during the year to £15,303,088 (2022: £13,752,689). The gross margin has reduced slightly to 10.9% (2022: 11.4%) due to a higher percentage of new vehicles sales which attact a lower margin than used vehicle sales. The net profit for the year has decreased to £66,136 (2022: £147,576) mainly due to incressed financing costs.
Principal Risks and Uncertainties
The company's continued success is significantly dependent on factors associated with the wider economic
and political environmentr as well as potential changes in legislation and regulation. The directors continuously
monitor these risks and manage the business with flexibility and prudence in response to them.
Key performance indicators
The company measures its performance and position by reference to key performance indicators (KPI's). The
KPI's used by the business include those relating to turnover, gross profit, profit before tax , net assets and net
current assets. An analysis of the performance of the company during the year and its position at the year end
using KPI's is included in the business review above.
Financial risk management
The financial risk management objectives and policies of the company are to reduce exposure to financial risk
by operating a accounting system with good internal controls. This enables cashflow to be carefully monitored.
The financial risks are as follows: Price risk - The company supplies luxury goods , the demand for which
could be affected by increased taxes and higher interest rates. Credit risk - Customers generally pay at the
time of receipt of goods and services so there is limited credit risk. Historically the company has not had a
problem with bad debts. Liquidity risk - The liquidity risk has reduced with the improvement in profitability over
the last few years. The current assets ratio is satisfactory and similar to the previous year. Cashflow risk - The
company operates within its agreed overdraft facility
On behalf of the board
Mr Neil Williams
Director
19/09/2024
Page 1
Page 2
Directors' Report
The directors present their report and the financial statements for the year ended 31 December 2023.
Principal Activity
The principal activity of the company during the year was the operation of a Volvo franchise involving the retail
sales of new and used vehicles, accessories, parts, fuel and forecourt shop. 
Directors
The directors who held office during the year were as follows:
Mr Barry Baynham
Mr Neil Williams
Mrs Nicola Davies Appointed 13/04/2023
Statement of Directors' Responsibilities
The directors are responsible for preparing the Strategic Report, the Directors' Report 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, comprising FRS102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', 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 the financial statements the directors are required to:
  • select suitable accounting policies and then apply them consistently;
  • make judgments and accounting estimates that are reasonable and prudent;
  • state whether applicable United Kingdom Accounting Standards, comprising FRS102, have been followed subject to any material departures disclosed and explained in the financial statements;
  • 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.
The directors are responsible for the maintenance and integrity of the corporate and financial information included on the company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
Statement of Disclosure of Information to Auditors
In the case of each director in office at the date the Directors' Report is approved:
  • so far as the director is aware, there is no relevant audit information of which the company's auditors are unaware; and
  • they have taken all the steps that they ought to have taken as directors in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information.
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Independent Auditors
The auditors, Mark Butterworth Ltd, have indicated their willingness to continue in office and a resolution concerning their re-appointment will be proposed at the Annual General Meeting.
On behalf of the board
Mr Neil Williams
Director
19/09/2024
Page 3
Page 4
Independent Auditor's Report
Opinion
We have audited the financial statements of Tynlon Garage Limited for the year ended 31 December 2023 which comprise the Statement of Income and Retained Earnings, Balance Sheet, Cash Flow Statement and the related notes, 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 (United Kingdom Generally Accepted Accounting Practice), including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland".
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/(loss) 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 Auditor's 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 entity's ability to continue as a going concern for a period of at least 12 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 other information comprises the information included in the annual report, other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
  • the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements.
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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 Directors' Report.
We have nothing to report in respect of the following matters in relation to which 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 or 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 Directors' Responsibilities Statement set out on page 2—3, 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 is 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.
Auditor's 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 an auditor's report 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. The extent to which our procedures are capable of detecting irregularities,including fraud is detailed below:
As part of designing our audit, we determined materiality and assessed the risks of material misstatement in the
financial statements, including how fraud may occur by enquiring of management of its own consideration of fraud.
In particular, we looked at where management made subjective judgements, for example in respect of significant accounting estimates that involved making assumptions and considering future events that are inherently uncertain. We also considered potential financial or other pressures, opportunity and motivations for fraud. As part of this discussion we identified the internal controls established to mitigate risks related to fraud or non compliance with laws and regulations and how management monitor these processes. Appropriate procedures included the review and testing of manual journals and key estimates and judgements made by management.
We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates, drawing on my broad sector experience, and considered the risk of acts by the company that were contrary to these laws and regulations, including fraud.
We focused on laws and regulations that could give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006, UK tax legislation and equivalent local laws and regulations.
We made enquiries of management with regards to compliance with the above laws and regulations and corroborated any necessary evidence to relevant information, for example, minutes of board meetings and legal correspondence with the company solicitors. Our tests included agreeing the financial statements disclosures to underlying supporting documentation and enquiries with management. We did not identify any key audit matters relating to irregularities, including fraud. We also addressed the risk of management override of internal controls including testing journals and evaluation whether there was evidence of bias by the director that represented a risk of material misstatement due to fraud.
...CONTINUED
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Auditor's Responsibilities for the Audit of the Financial Statements - continued
Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not  detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.
As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. we also:
• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.
• Conclude on the appropriateness of the directors use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
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 that we are required to state to them in an auditor's report 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 Butterworth (Senior Statutory Auditor)
for and on behalf of Mark Butterworth Ltd , Statutory Auditor
19/09/2024
...CONTINUED
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Mark Butterworth Ltd
Windsor House
26 Mostyn Avenue
Llandudno
Conwy
LL30 1YY
Page 7
Page 8
Statement of Income and Retained Earnings
2023 2022
Notes £ £
TURNOVER 3 15,303,088 13,752,689
Cost of sales (13,639,143 ) (12,184,266 )
GROSS PROFIT 1,663,945 1,568,423
Administrative expenses (1,341,364 ) (1,290,771 )
OPERATING PROFIT 4 322,581 277,652
Loss on disposal of fixed assets (765 ) -
Interest payable and similar charges 9 (255,680 ) (130,075 )
PROFIT BEFORE TAXATION 66,136 147,577
Tax on Profit 10 (4,862 ) (29,690 )
PROFIT AFTER TAXATION BEING PROFIT FOR THE FINANCIAL YEAR 61,274 117,887
RETAINED EARNINGS
As at 1 January 2023 722,369 624,482
Dividends paid (43,500) (20,000)
As at 31 December 2023 740,143 722,369
The notes on pages 12 to 21 form part of these financial statements.
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Page 9
Balance Sheet
Registered number: 02101047
2023 2022
Notes £ £ £ £
FIXED ASSETS
Tangible Assets 11 2,164,797 2,041,297
2,164,797 2,041,297
CURRENT ASSETS
Stocks 12 2,572,758 4,505,238
Debtors 13 231,428 605,588
2,804,186 5,110,826
Creditors: Amounts Falling Due Within One Year 14 (2,955,797 ) (5,121,328 )
NET CURRENT ASSETS (LIABILITIES) (151,611 ) (10,502 )
TOTAL ASSETS LESS CURRENT LIABILITIES 2,013,186 2,030,795
Creditors: Amounts Falling Due After More Than One Year 15 (636,756 ) (667,985 )
PROVISIONS FOR LIABILITIES
Deferred Taxation 18 (45,347 ) (49,501 )
NET ASSETS 1,331,083 1,313,309
CAPITAL AND RESERVES
Called up share capital 20 395,500 395,500
Share premium account 49,650 49,650
Revaluation reserve 145,790 145,790
Profit and Loss Account 740,143 722,369
SHAREHOLDERS' FUNDS 1,331,083 1,313,309
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On behalf of the board
Mr Barry Baynham
Director
19/09/2024
The notes on pages 12 to 21 form part of these financial statements.
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Statement of Cash Flows
2023 2022
Notes £ £
Cash flows from operating activities
Net cash generated from operations 1 353,563 252,961
Interest paid (255,680 ) (130,075 )
Net cash generated from operating activities 97,883 122,886
Cash flows from investing activities
Purchase of tangible assets (245,431 ) (22,519 )
Proceeds from disposal of tangible assets 49,459 40,188
Net cash (used in)/generated from investing activities (195,972 ) 17,669
Cash flows from financing activities
Equity dividends paid (43,500 ) (20,000 )
Repayment of bank borrowings (133,566 ) (140,310 )
Repayment of finance leases 67,295 (3,231 )
Amount introduced by directors 10,755 -
Amount withdrawn by directors - (8,353)
Net cash used in financing activities (99,016 ) (171,894 )
Decrease in cash and cash equivalents (197,105 ) (31,339 )
Cash and cash equivalents at beginning of year 2 (27,702 ) 3,637
Cash and cash equivalents at end of year 2 (224,807 ) (27,702 )
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Notes to the Statement of Cash Flows
1. Reconciliation of profit for the financial year to cash generated from operations
2023 2022
£ £
Profit for the financial year 61,274 117,887
Adjustments for:
Tax on profit 4,862 29,690
Interest expense 255,680 130,075
Depreciation of tangible assets 71,707 54,425
Loss on disposal of tangible assets 765 -
Movements in working capital:
Decrease/(increase) in stocks 1,932,480 (1,861,386 )
Decrease/(increase) in trade and other debtors 374,160 (144,261 )
(Decrease)/increase in trade and other creditors (2,347,365 ) 1,926,531
Net cash generated from operations 353,563 252,961
2. Cash and cash equivalents
Cash and cash equivalents, as stated in the Statement of Cash Flows, relates to the following items in the Balance Sheet:
2023 2022
£ £
Overdraft facilities repayable on demand (224,807 ) (27,702 )
3. Analysis of changes in net debt
As at 1 January 2023 Cash flows As at 31 December 2023
£ £ £
Overdraft facilities repayable on demand (27,702) (197,105) (224,807)
Finance leases (16,161) (67,295) (83,456)
Debts falling due within one year (137,395 ) 34,861 (102,534 )
Debts falling due after more than one year (655,055) 98,705 (556,350)
(836,313) (130,834) (967,147)
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Notes to the Financial Statements
1. General Information
Tynlon Garage Limited is a private company, limited by shares, incorporated in England & Wales, registered number 02101047 . The registered office is Tynlon Garage, Holyhead Road, Llanfairpwll, Anglesey, LL61 5SX.
2. Accounting Policies
2.1. Basis of Preparation of Financial Statements
The financial statements have been prepared under the historical cost convention and in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland'' and the Companies Act 2006.
2.2. Turnover
Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services. Turnover is reduced for estimated customer returns, rebates and other similar allowances.
Sale of goods
Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods has transferred to the buyer. This is usually at the point that the customer has signed for the delivery of the goods.
Rendering of services
Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs. Turnover is only recognised to the extent of recoverable expenses when the outcome of a contract cannot be estimated reliably.
2.3. Tangible Fixed Assets and Depreciation
Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. Depreciation is provided at rates calculated to write off the cost of the fixed assets, less their estimated residual value, over their expected useful lives on the following bases:
Freehold Non Provided - annual impairment review
Plant & Machinery 15% Reducing Balance
Motor Vehicles 25% Reducing Balance
Fixtures & Fittings 15% Reducing Balance
If there is an indication that there has been a significant change in depreciation rate, useful life or residual value of tangible assets, the depreciation is revised prospectively to reflect the new estimates.
2.4. Leasing and Hire Purchase Contracts
Assets obtained under finance leases are capitalised as tangible fixed assets. Assets acquired under finance leases are depreciated over the shorter of the lease term and their useful lives. Assets acquired under hire purchase contracts are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in the creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the profit and loss account so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged to profit and loss account as incurred.
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2.5. Stocks and Work in Progress
Stocks and work in progress are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks.
Cost is determined using the first-in, first-out method. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads.
Work in progress is reflected in the accounts on a contract by contract basis by recording turnover and related costs as contract activity progresses.
At the end of each reporting period stocks are assessed for impairment. If an item of stock is impaired, the identified stock is reduced to its selling price less costs to complete and sell and an impairment charge is recognised in the profit and loss account. Where a reversal of the impairment is required the impairment charge is reversed, up to the original impairment loss, and is recognised as a credit in the profit and loss account.
2.6. Cash and Cash Equivalents
Cash and cash equivalents are basic financial assets and include cash in hand and deposits held at call with banks, other short-term highly liquid investments that mature in no more than three months from the date of acquisition and are readily convertible to a known amount of cash with insignificant risk of change in value, and bank overdrafts.
2.7. Taxation
Income tax expense represents the sum of the tax currently payable and deferred tax.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the statement of comprehensive income because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The company's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.
Deferred tax is recognised on timing differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable timing differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible timing differences can be utilised. The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. Deferred tax liabilities are presented within provisions for liabilities and deferred tax assets within debtors. The measurement of deferred tax liabilities and assets reflect the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.
Current or deferred tax for the year is recognised in profit or loss, except when they related to items that are recognised in other comprehensive income or directly in equity, in which case, the current and deferred tax is also recognised in other comprehensive income or directly in equity respectively.
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3. Turnover
Analysis of turnover by geographical market is as follows:
2023 2022
£ £
United Kingdom 15,303,088 13,752,689
15,303,088 13,752,689
4. Operating Profit
The operating profit is stated after charging:
2023 2022
£ £
Depreciation of tangible fixed assets 71,707 54,425
5. Auditor's Remuneration
Remuneration received by the company's auditors and their associates during the year was as follows:
2023 2022
£ £
Audit Services
Audit of the company's financial statements 7,200 7,200
6. Staff Costs
Staff costs, including directors' remuneration, were as follows:
2023 2022
£ £
Wages and salaries 815,816 781,792
Social security costs 64,279 64,478
Other pension costs 20,062 20,158
900,157 866,428
7. Average Number of Employees
Average number of employees, including directors, during the year was as follows:
2023 2022
Office and administration 4 4
Sales, marketing and distribution 38 38
42 42
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8. Directors' remuneration
2023 2022
£ £
Emoluments 107,606 61,399
Company contributions to money purchase pension schemes 1,104 -
108,710 61,399
9. Interest Payable and Similar Charges
2023 2022
£ £
Bank loans and overdrafts 48,584 34,529
Other finance charges 207,096 95,546
255,680 130,075
10. Tax on Profit
The tax charge on the profit for the year was as follows:
Tax Rate 2023 2022
2023 2022 £ £
Current tax
UK Corporation Tax 19.0% 19.0% 9,016 26,429
Deferred Tax
Deferred taxation (4,154 ) 3,261
Total tax charge for the period 4,862 29,690
The actual charge for the year can be reconciled to the expected charge for the year based on the profit and the standard rate of corporation tax as follows:
2023 2022
£ £
Profit before tax 66,136 147,577
Tax on profit at 19% (UK standard rate) 12,566 28,040
Goodwill/depreciation not allowed for tax - 13,453
Expenses not deductible for tax purposes 458 302
Tax losses utilised - (12,105 )
Capital allowances (8,162 ) -
Total tax charge for the period 4,862 29,690
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11. Tangible Assets
Land & Property
Freehold Plant & Machinery Motor Vehicles Fixtures & Fittings Total
£ £ £ £ £
Cost
As at 1 January 2023 1,777,140 815,443 34,249 584,376 3,211,208
Additions 30,815 16,392 171,550 26,674 245,431
Disposals - - (76,299 ) - (76,299 )
As at 31 December 2023 1,807,955 831,835 129,500 611,050 3,380,340
Depreciation
As at 1 January 2023 - 689,872 18,935 461,104 1,169,911
Provided during the period - 24,439 24,775 22,493 71,707
Disposals - - (26,075 ) - (26,075 )
As at 31 December 2023 - 714,311 17,635 483,597 1,215,543
Net Book Value
As at 31 December 2023 1,807,955 117,524 111,865 127,453 2,164,797
As at 1 January 2023 1,777,140 125,571 15,314 123,272 2,041,297
No depreciation is provided on the freehold properties as their estimated residual value equates to the balance sheet value. The directors undertake an annual impairment review to ensure that the carrying values of the freehold properties are fairly stated. An external valuation of the freehold properties was carried out on 15th April 2024.
If the following tangible fixed assets had been accounted for under historical cost accounting rules, the amounts would be:
Land & Property
Freehold
£
Cost 1,662,165
12. Stocks
2023 2022
£ £
Stock 2,572,758 4,505,238
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13. Debtors
2023 2022
£ £
Due within one year
Trade debtors 128,737 92,718
Prepayments and accrued income 102,691 134,215
VAT - 378,655
231,428 605,588
14. Creditors: Amounts Falling Due Within One Year
2023 2022
£ £
Net obligations under finance lease and hire purchase contracts 3,050 3,231
Trade creditors 2,484,431 4,852,335
Bank loans and overdrafts 327,341 165,097
Corporation tax 35,445 26,429
Other taxes and social security 19,244 14,488
VAT 38,347 -
Other creditors 16,122 40,306
Accruals and deferred income 7,438 5,818
Directors' loan accounts 24,379 13,624
2,955,797 5,121,328
The bank loans and overdraft with Barclays Bank Plc are secured by a first mortgage over the freehold properties. The principal bank loan is repayable over 5 years (from September 2019) by equal monthly instalments of £2,362 and an interest rate of 3.15% above base rate. The review period on the loan has been extended until February 2025. A second term loan is repayable over 10 years (from September 2019) by equal monthly instalments of £932 and an interest rate of 3.15% over base rate. Obligations under finance leases and hire purchase contracts are secured on the assets concerned. Creditors: amounts falling due within one year includes bank loans and overdrafts of £327,341 (2022: £165,097) and obligations under finance leases and hire purchase contracts of £3,050 (2022: £3,231).
15. Creditors: Amounts Falling Due After More Than One Year
2023 2022
£ £
Net obligations under finance lease and hire purchase contracts 80,406 12,930
Bank loans 556,350 655,055
636,756 667,985
The bank loan and overdraft with Barclays Bank Plc are secured by a first mortgage over the freehold properties. The principal term bank loan is repayable over 15 years (from September 2019) by equal monthly instalments of £2,362 and an interest rate of 3.15% above base rate. The review period has been extended until February 2025. A second term loan is repayable over 10 years (from September 2019) by equal monthly instalments of £932 and an interest rate of 3.15% over base rate. Obligations under finance leases and hire purchase contracts are secured on the assets concerned. Creditors: amounts falling due after more than one year includes bank loans and overdrafts of £556,350 (2022: £655,055) and obligations under finance leases and hire purchase contracts of £80,406 (2022:12,930).
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Of the creditors falling due after more than one year the following amounts are due after more than five years.
2023 2022
£ £
Bank loans 363,528 384,755
16. Loans
An analysis of the maturity of loans is given below:
2023 2022
£ £
Amounts falling due within one year or on demand:
Bank loans 102,534 137,395
2023 2022
£ £
Amounts falling due between one and five years:
Bank loans 192,822 270,300
2023 2022
£ £
Amounts falling due after more than five years:
Bank loans 363,528 384,755
17. Obligations Under Finance Leases and Hire Purchase
2023 2022
£ £
The future minimum finance lease payments are as follows:
Not later than one year 3,050 3,231
Later than one year and not later than five years 80,406 12,930
83,456 16,161
83,456 16,161
18. Deferred Taxation
The provision for deferred tax is made up as follows:
2023 2022
£ £
Other timing differences 45,347 49,501
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19. Provisions for Liabilities
Deferred Tax Total
£ £
As at 1 January 2023 49,501 49,501
Additions (4,154 ) (4,154)
Balance at 31 December 2023 45,347 45,347
20. Share Capital
2023 2022
Allotted, called up and fully paid £ £
290,000 Ordinary Shares of £ 1 each 290,000 290,000
15,500 Ordinary A shares of £ 1 each 15,500 15,500
90,000 Ordinary B shares of £ 1 each 90,000 90,000
395,500 395,500
21. Other Commitments
The total of future minimum lease payments under non-cancellable operating leases are as following:
2023 2022
£ £
Later than one year and not later than five years 15,489 17,708
15,489 17,708
22. Pension Commitments
The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund.
During the year the charge to profit or loss in respect of defined contribution schemes was £20,062 (2022: £20,158).
At the balance sheet date contributions of £NIL were due to the fund and are included in creditors.
23. Dividends
2023 2022
£ £
On equity shares:
Interim dividend paid 43,500 20,000
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24. Related Party Disclosures
During the year the company entered into the following transactions with related parties:
Dividends paid to directors:
Mr B . Baynham           21,750                   
Mr N. Williams              21,750                 
25. Revaluation Reserve
The land & property was independently valued on a continuing use basis by Andrew Dixon & Co on 2nd April 2004. The revaluation reserve was reflected in the December 2005 accounts.
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