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REGISTERED NUMBER: 07399286 (England and Wales)











Group Tyre Wholesale Limited

Strategic Report, Report of the Directors and

Financial Statements

for the Year Ended 31 December 2023






Group Tyre Wholesale Limited (Registered number: 07399286)

Contents of the Financial Statements
for the Year Ended 31 December 2023










Page

Company Information 1

Strategic Report 2

Report of the Directors 4

Report of the Independent Auditors 6

Income Statement 10

Other Comprehensive Income 11

Statement of Financial Position 12

Statement of Changes in Equity 13

Statement of Cash Flows 14

Notes to the Statement of Cash Flows 15

Notes to the Financial Statements 17


Group Tyre Wholesale Limited

Company Information
for the Year Ended 31 December 2023







DIRECTORS: N A Bush
G J Oliver
R J Whittemore





REGISTERED OFFICE: Group House
Park Street
Aylesbury
Buckinghamshire
HP20 1QN





REGISTERED NUMBER: 07399286 (England and Wales)





AUDITORS: Haines Watts Tamworth Limited
Chartered Accountants and Statutory Auditors
Sterling House
97 Lichfield Street
Tamworth
Staffordshire
B79 7QF

Group Tyre Wholesale Limited (Registered number: 07399286)

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 our business. Our review is consistent with the size and nature of our business and in the context of risks and uncertainties we face.

Our key aim remains the delivery of great brands with unbeatable service levels, with our warehouses continuing to improve our corporate and environmental standards, service levels and overall efficiencies. In general, 2023 was a very positive year for Group Tyre Wholesale Ltd.

There were three major macro-economic factors that impacted our 2023 financial performance:

- A return to "new normal", post 3 years of Covid affected performance.
- Concerns over UK "cost of living" increases.
- High inflationary costs and consequential increases in wage costs.

For the first time in 3 years the negative effects of the Covid pandemic reduced in 2023. Although we entered the year with increased budget tyre costs, deep sea freight costs from Asia first reduced, then stabilised throughout 2023, which meant that some Customers who had switched allegiance to other products and brands were reconciled. This also allowed gross margins to recover to pre-pandemic levels although increased cost of living and inflationary increases remained prevalent.

The effects of the Russia/Ukraine war continued, not forgetting the humane cost, energy costs remained high alongside some raw material costs in the West, pressuring high inflation and finance costs in Europe, and notably for us within the UK. High inflation in October 2022 meant that national minimum wage costs increased by 6.6% in April 2023 which spiralled all other salaries where, by necessity, differentials by seniority and responsibility need to be maintained.

A final micro-economic contributor to our performance was our decision in 2022 to digitise our warehouse management systems (WMS) which led to an Industry Innovation Award in October 2023 at the National Tyre Distributors Conference, an award voted for by our peers and customers alike. We continue to work with our software providers to maximise the benefits of our bespoke WMS into 2024 and beyond as new opportunities arise.

Regardless of the issues we faced above, 2023's financial result shows an increase in profitability to £1.472m (EBIT) which is 284% over 2022's £519K (EBIT). Turnover increased by 1% to £35.5m, unit tyre sales were up by 2.2% as tyre prices decreased, whilst gross margins were up by 4.45% over 2022. Administration costs increased by 12.7% which was largely due to the aforementioned wage increases and all a reflection of the market conditions we faced in 2023.

In light of the performance above, a dividend was paid to the shareholders of £500,000.

Our staff remain key to this and future performance which enables plans to be realised with hard work and skill in all parts of the business in 2023 and beyond. Staff development is pivotal to our success and great efforts will continually be made to improve staff, in training, effectiveness and improving our environment credentials to enable their and our, full potential to really shine.


Group Tyre Wholesale Limited (Registered number: 07399286)

Strategic Report
for the Year Ended 31 December 2023

PRINCIPAL RISKS AND UNCERTAINTIES
The Worldwide automotive industry has only just recovered from Covid 19 and appears again to be in turmoil about whether the passenger vehicle switch to electrification is practical with the UK pushing back from its "2030 switch to EV2" to 2035, albeit, the UK is now in line with the rest of Europe.

European Union Deforestation Regulations (EUDR) apply in the Union from October 2024 which means that natural rubber, used by necessity in tyre production, must be sourced from sustainable forests. The UK will not apply these rules at this time, but common sense suggests that Chinese will only produce one product to meet modern production standards of commonality.

Uncertainty surrounding the Russia/Ukraine war continues with many Western tyre manufacturers having pulled out of Russia. The Russians have replaced this capacity with supplies directly from China, only adding to the World's reliability on Chinese manufacturers and diluting Western influence. Some Western Countries (namely USA) have responded by imposing anti-dumping tariffs on Chinese manufacturers but until now, Europe and the UK have resisted these impositions whilst Chinese Manufacturers have started moving some of their manufacturing bases offshore; Vietnam, Indonesia, Eastern Europe and South America are all low cost economies favoured by Asian Tyre Manufacturers.

Uncertainty surrounding the Palestinian/Israeli war remains with Houthis rebels attacking vessels bound for the Suez causing some delays to Asian/European deep sea freight whilst container availability has also been problematic. Deep sea freight costs remain volatile but have not increased to the levels witnessed during the pandemic.

European energy costs are reducing as new resources become available. Fuel costs, however, remain volatile and whilst UK travel and vacations have recovered to pre-pandemic levels, the UK Government have targeted inflation reduction as their number one target. It remains to be seen where interest rates will end up and for how long they will remain at current levels to keep inflation and spending under control.

In general the public still prefers the automobile as its choice of mobility so whether the car boasts an internal combustion engine, a hydrogen powered engine or is powered electrically, in some way they all need tyres. Whilst the Company stays smart, nimble, green and alert, then the foreseeable future seems assured.

ON BEHALF OF THE BOARD:





G J Oliver - Director


11 September 2024

Group Tyre Wholesale Limited (Registered number: 07399286)

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 the distribution of tyres to the automotive industry within London, the Home Counties and the immediate surrounding areas.

DIVIDENDS
An interim dividend of 50p per share was paid on 31 December 2023. The directors recommend that no final dividend be paid.

The total distribution of dividends for the year ended 31 December 2023 will be £ 500,000 .

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

N A Bush
G J Oliver
R J Whittemore

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-select suitable accounting policies and then apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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.

Group Tyre Wholesale Limited (Registered number: 07399286)

Report of the Directors
for the Year Ended 31 December 2023


AUDITORS
The auditors, Haines Watts Tamworth Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





G J Oliver - Director


11 September 2024

Report of the Independent Auditors to the Members of
Group Tyre Wholesale Limited


Opinion
We have audited the financial statements of Group Tyre Wholesale Limited (the 'company') for the year ended 31 December 2023 which comprise the Income Statement, Other Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and Notes to the Statement of Cash Flows, 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
Group Tyre Wholesale Limited


Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page four, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Report of the Independent Auditors to the Members of
Group Tyre Wholesale 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:

Identifying and assessing potential risks related to irregularities

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:

- results of our enquiries of management about their own identification and assessment of the risks and irregularities
- any matters we identified having obtained an understanding of the company policies and procedures relating to
- identifying, evaluating and complying with laws and regulations and whether they are 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
- the internal controls set up to mitigate risks of fraud or non-compliance with laws and regulations
- the matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.
- obtaining an understanding of the legal and regulatory framework that the company operates in, focusing on those laws and regulations that had a direct effect on the financial statements, including UK Companies Act 2006, pensions and tax legislation
- provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company's ability to operate or to avoid material penalty. These include the impact of import restrictions.

As a result of performing the above, we did not identify any key audit matters related to the potential risk of fraud or non-compliance with laws and regulations.

Audit response to risks identified

Our procedures to respond to risks identified included the following:

- reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements
- enquiring of management concerning actual and potential legal action and claims
- carrying out analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud
- in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.
- considering performance targets and their influence on efforts made by management to manage earnings

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a 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, omission or 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
Group Tyre Wholesale 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.




Stephen Butler BA FCA (Senior Statutory Auditor)
for and on behalf of Haines Watts Tamworth Limited
Chartered Accountants and Statutory Auditors
Sterling House
97 Lichfield Street
Tamworth
Staffordshire
B79 7QF

11 September 2024

Group Tyre Wholesale Limited (Registered number: 07399286)

Income Statement
for the Year Ended 31 December 2023

2023 2022
Notes £    £   

TURNOVER 3 35,504,690 35,133,406

Cost of sales 27,909,989 29,184,719
GROSS PROFIT 7,594,701 5,948,687

Administrative expenses 6,122,856 5,429,829
OPERATING PROFIT 5 1,471,845 518,858


Interest payable and similar expenses 6 179,529 136,886
PROFIT BEFORE TAXATION 1,292,316 381,972

Tax on profit 7 382,434 25,933
PROFIT FOR THE FINANCIAL YEAR 909,882 356,039

Group Tyre Wholesale Limited (Registered number: 07399286)

Other Comprehensive Income
for the Year Ended 31 December 2023

2023 2022
Notes £    £   

PROFIT FOR THE YEAR 909,882 356,039


OTHER COMPREHENSIVE INCOME
Freehold property revaluation - 2,215,000
Income tax relating to other comprehensive
income

-

-
OTHER COMPREHENSIVE INCOME FOR
THE YEAR, NET OF INCOME TAX

-

2,215,000
TOTAL COMPREHENSIVE INCOME FOR
THE YEAR

909,882

2,571,039

Group Tyre Wholesale Limited (Registered number: 07399286)

Statement of Financial Position
31 December 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 9 5,808,900 5,902,871
Investments 10 - -
5,808,900 5,902,871

CURRENT ASSETS
Stocks 11 4,818,507 5,007,961
Debtors 12 5,941,755 6,655,692
Cash at bank 121,111 11,202
10,881,373 11,674,855
CREDITORS
Amounts falling due within one year 13 10,049,727 10,729,768
NET CURRENT ASSETS 831,646 945,087
TOTAL ASSETS LESS CURRENT
LIABILITIES

6,640,546

6,847,958

CREDITORS
Amounts falling due after more than one year 14 (291,323 ) (964,906 )

PROVISIONS FOR LIABILITIES 18 (307,050 ) (250,761 )
NET ASSETS 6,042,173 5,632,291

CAPITAL AND RESERVES
Called up share capital 19 1,000,000 1,000,000
Revaluation reserve 20 3,256,044 3,256,044
Retained earnings 20 1,786,129 1,376,247
SHAREHOLDERS' FUNDS 6,042,173 5,632,291

The financial statements were approved by the Board of Directors and authorised for issue on 11 September 2024 and were signed on its behalf by:





G J Oliver - Director


Group Tyre Wholesale Limited (Registered number: 07399286)

Statement of Changes in Equity
for the Year Ended 31 December 2023

Called up
share Retained Revaluation Total
capital earnings reserve equity
£    £    £    £   
Balance at 1 January 2022 1,000,000 1,020,208 1,041,044 3,061,252

Changes in equity
Total comprehensive income - 356,039 2,215,000 2,571,039
Balance at 31 December 2022 1,000,000 1,376,247 3,256,044 5,632,291

Changes in equity
Dividends - (500,000 ) - (500,000 )
Total comprehensive income - 909,882 - 909,882
Balance at 31 December 2023 1,000,000 1,786,129 3,256,044 6,042,173

Group Tyre Wholesale Limited (Registered number: 07399286)

Statement of Cash Flows
for the Year Ended 31 December 2023

2023 2022
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 1,584,394 815,546
Interest paid (143,982 ) (128,602 )
Interest element of hire purchase payments
paid

(35,547

)

(8,284

)
Tax paid 111,562 (93,198 )
Net cash from operating activities 1,516,427 585,462

Cash flows from investing activities
Purchase of tangible fixed assets (27,326 ) (224,522 )
Sale of tangible fixed assets 2,532 48,514
Net cash from investing activities (24,794 ) (176,008 )

Cash flows from financing activities
Loan repayments in year (723,064 ) (272,089 )
Related party balances 171,423 220,757
Capital repayments in year (330,083 ) (125,563 )
Equity dividends paid (500,000 ) -
Net cash from financing activities (1,381,724 ) (176,895 )

Increase in cash and cash equivalents 109,909 232,559
Cash and cash equivalents at beginning of
year

2

11,202

(221,357

)

Cash and cash equivalents at end of year 2 121,111 11,202

Group Tyre Wholesale Limited (Registered number: 07399286)

Notes to the Statement of Cash Flows
for the Year Ended 31 December 2023


1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS
2023 2022
£    £   
Profit before taxation 1,292,316 381,972
Depreciation charges 425,002 238,687
Profit on disposal of fixed assets (114 ) (10,758 )
Finance costs 179,529 136,886
1,896,733 746,787
Decrease in stocks 189,454 510,638
Decrease/(increase) in trade and other debtors 432,643 (298,507 )
Decrease in trade and other creditors (934,436 ) (143,372 )
Cash generated from operations 1,584,394 815,546

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 31 December 2023
31.12.23 1.1.23
£    £   
Cash and cash equivalents 121,111 11,202
Year ended 31 December 2022
31.12.22 1.1.22
£    £   
Cash and cash equivalents 11,202 -
Bank overdrafts - (221,357 )
11,202 (221,357 )


Group Tyre Wholesale Limited (Registered number: 07399286)

Notes to the Statement of Cash Flows
for the Year Ended 31 December 2023


3. ANALYSIS OF CHANGES IN NET DEBT

Other
non-cash
At 1.1.23 Cash flow changes At 31.12.23
£    £    £    £   
Net cash
Cash at bank 11,202 109,909 121,111
11,202 109,909 121,111
Debt
Finance leases (649,984 ) 330,083 - (626,024 )
Debts falling due
within 1 year (3,577,319 ) 2,525,857 - (1,051,462 )
Debts falling due
after 1 year (560,523 ) 547,582 - (12,941 )
(4,787,826 ) 3,403,522 - (1,690,427 )
Total (4,776,624 ) 3,513,431 - (1,569,316 )

Group Tyre Wholesale Limited (Registered number: 07399286)

Notes to the Financial Statements
for the Year Ended 31 December 2023


1. STATUTORY INFORMATION

Group Tyre Wholesale Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

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 as modified by the revaluation of certain assets.

The financial statements have been prepared on a going concern basis which assumes that the company will continue to operate for the foreseeable future. Budgets and cash flow projections compiled indicate the company has sufficient reserves to continue to trade and the directors believe that support afforded, careful cashflow considerations is sufficient upon which to adopt the going concern basis.

Significant judgements and estimates
The company makes estimates and assumptions concerning the future. Management are also required to exercise judgement in the process of applying the company's accounting policies. Estimates and 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.

The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below:

In preparing these financial statements, the directors have made the following judgements:

- Determine whether leases entered into by the company either as a lessor or a lessee are operating or finance leases. These decisions depend on an assessment of whether the risks and rewards of ownership have been transferred from the lessor to the lessee on a lease by lease basis based on an evaluation of the terms and conditions of the arrangements, and accordingly whether the lease requires an asset and liability to be recognised in the statement of financial position.

- A provision is recognised when the company has a present legal or constructive obligation as a result of a past event for which it is probable that an outflow of resources will be required to settle the obligation and the amount can be reliably estimated. If the effect is material, provisions are determined by discounting the expected future cash flow at a rate that reflects the time value of money and the risks specific to the liability.

- Whether a present obligation is probable or not requires judgement. The nature and type of risks for these provisions differ and management's judgement is applied regarding the nature and extent of obligations in deciding if an outflow of resources is probable or not.

- Sales ledger debt provisions. Management review debts on a case by case basis to highlight deviation from terms and therefore possible provision requirement.

- Stock provisions/quantity rebate provisions. On a line by line basis of known rebate suppliers, management assess and provide against the recorded cost the assessment of the rebate due on those units held at the year end. This is reviewed and agreed on a quarterly basis throughout the year on predetermined quantity triggers at agreed rates.

- Depreciation and residual values. Management have reviewed the asset lives and associated residual values of all fixed asset classes and concluded that they are appropriate.

The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projects disposal values.

Group Tyre Wholesale Limited (Registered number: 07399286)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023


2. ACCOUNTING POLICIES - continued

Turnover
Turnover comprises revenue recognised by the company in respect of goods and services supplied, exclusive of VAT and trade discounts.

Turnover arises from the company's principal activity and sales are made to customers on both credit terms and by way of cash. In the case of credit sales revenue is recognised for accounting purposes at the date of dispatch of the relevant goods. In the case of cash sales, revenue is recognised at the point of sale.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.
Freehold property - not provided
Improvements to property - 33% on cost and 20% on cost
Plant and machinery - 10% on cost
Fixtures and fittings - 33% on cost and 20% on cost
Motor vehicles - 25% on cost
Computer equipment - 20% on cost

The company operate a policy of not depreciating their freehold land and buildings. The Directors have assessed the difference between the residual value and the carrying cost of the building as being not material and have decided not to provide for any depreciation on the grounds that the aggregate depreciation to be provided over the life of the asset is not material. The company incurs expenses each year and ensures that they keep all freehold well maintained. They adopt a revaluation policy where revaluations occur with sufficient regularity to ensure that the carrying amount reflects the current market value.

Revaluation surpluses are recognised in other comprehensive income and accumulated in equity. However, the increase is recognised in profit and loss to the extent that it reverses a revaluation decrease of the same asset previously recognised in profit and loss.
The decrease of an asset's carrying amount on revaluation is recognised in other comprehensive income up to the amount of the previously recognised revaluation surplus accumulated in equity, in respect of that asset. Any excess deficits are charged to the profit and loss account.

Stocks
Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost is calculated using the weighted average method and includes all direct costs.

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 statement of financial position date.


Group Tyre Wholesale Limited (Registered number: 07399286)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023


2. ACCOUNTING POLICIES - continued
Deferred taxation
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position 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.

Foreign currencies
Transactions denominated in foreign currencies are recorded at the rates of exchange ruling at the dates of the transactions, or at an average rate for the period if the rates do not fluctuate significantly. Monetary assets and liabilities are translated at year end exchange rates or, where appropriate, at rates of exchange fixed under the terms of the relevant transaction. The resulting exchange rate differences are charged to the profit and loss account.

Operating lease agreements
Rentals payable under operating leases are charged to profit or loss on a straight-line basis over the lease term, unless the rental payments are structured to increase in line with expected general inflation, in which case the group recognises annual rent expense equal to amounts owed to the lessor. The aggregate benefit of lease incentives are recognised as a reduction to the expense recognised over the lease term on a straight line basis.

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.

Derivatives
Derivative financial instruments are recognised at fair value using a valuation technique with any gains or losses being reported in profit or loss. Outstanding derivatives at reporting date are included under the appropriate format heading depending on the nature of the derivative.

Fixed asset investments
Fixed asset investments are stated at cost less provision for diminution in value.

3. TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by geographical market is given below:

2023 2022
£    £   
United Kingdom 35,504,690 35,133,406
35,504,690 35,133,406

Group Tyre Wholesale Limited (Registered number: 07399286)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023


4. EMPLOYEES AND DIRECTORS
2023 2022
£    £   
Wages and salaries 3,275,686 2,830,055
Social security costs 281,406 243,680
Other pension costs 75,373 68,895
3,632,465 3,142,630

The average number of employees during the year was as follows:
2023 2022

Administration and management staff 21 22
Warehouse and distribution staff 83 83
104 105

2023 2022
£    £   
Directors' remuneration 124,830 99,750
Directors' pension contributions to money purchase schemes 3,354 3,167

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

Money purchase schemes 1 1

5. OPERATING PROFIT

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

2023 2022
£    £   
Hire of plant and machinery 6,209 4,021
Depreciation - owned assets 177,250 165,998
Depreciation - assets on hire purchase contracts 247,752 72,688
Profit on disposal of fixed assets (114 ) (10,758 )
Auditors' remuneration 15,550 18,250
Operating lease cost - land & buildings 205,157 206,337
Operating lease cost - motor vehicles 22,747 182,081

6. INTEREST PAYABLE AND SIMILAR EXPENSES
2023 2022
£    £   
Bank interest 143,982 128,602
Hire purchase 35,547 8,284
179,529 136,886

Group Tyre Wholesale Limited (Registered number: 07399286)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023


7. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2023 2022
£    £   
Current tax:
UK corporation tax 327,837 (109,870 )
Corporation tax prior year (1,692 ) -
Total current tax 326,145 (109,870 )

Deferred tax 56,289 135,803
Tax on profit 382,434 25,933

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 1,292,316 381,972
Profit multiplied by the standard rate of corporation tax in the UK of 23.521%
(2022 - 19%)

303,966

72,575

Effects of:
Expenses not deductible for tax purposes 4,510 547
Capital allowances in excess of depreciation (3,537 ) (47,189 )
Adjustments to tax charge in respect of previous periods (1,692 ) -
Changes in deferred tax rate 79,187 -
Total tax charge 382,434 25,933

Tax effects relating to effects of other comprehensive income

There were no tax effects for the year ended 31 December 2023.

2022
Gross Tax Net
£    £    £   
Freehold property revaluation 2,215,000 - 2,215,000

8. DIVIDENDS
2023 2022
£    £   
Ordinary shares of £1 each
Interim 500,000 -

Group Tyre Wholesale Limited (Registered number: 07399286)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023


9. TANGIBLE FIXED ASSETS
Improvements
Freehold to Plant and
property property machinery
£    £    £   
COST OR VALUATION
At 1 January 2023 4,500,000 134,413 1,158,815
Additions - - -
Disposals - - (9,358 )
At 31 December 2023 4,500,000 134,413 1,149,457
DEPRECIATION
At 1 January 2023 - 111,533 668,057
Charge for year - 16,395 88,254
Eliminated on disposal - - (6,940 )
At 31 December 2023 - 127,928 749,371
NET BOOK VALUE
At 31 December 2023 4,500,000 6,485 400,086
At 31 December 2022 4,500,000 22,880 490,758

Fixtures
and Motor Computer
fittings vehicles equipment Totals
£    £    £    £   
COST OR VALUATION
At 1 January 2023 161,489 943,601 198,016 7,096,334
Additions - 306,123 27,326 333,449
Disposals - - - (9,358 )
At 31 December 2023 161,489 1,249,724 225,342 7,420,425
DEPRECIATION
At 1 January 2023 145,443 117,963 150,467 1,193,463
Charge for year 9,208 295,216 15,929 425,002
Eliminated on disposal - - - (6,940 )
At 31 December 2023 154,651 413,179 166,396 1,611,525
NET BOOK VALUE
At 31 December 2023 6,838 836,545 58,946 5,808,900
At 31 December 2022 16,046 825,638 47,549 5,902,871

Group Tyre Wholesale Limited (Registered number: 07399286)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023


9. TANGIBLE FIXED ASSETS - continued

Cost or valuation at 31 December 2023 is represented by:

Improvements
Freehold to Plant and
property property machinery
£    £    £   
Valuation in 2013 456,063 - -
Valuation in 2018 584,980 - -
Valuation in 2022 2,215,000 - -
Cost 1,243,957 134,413 1,149,457
4,500,000 134,413 1,149,457

Fixtures
and Motor Computer
fittings vehicles equipment Totals
£    £    £    £   
Valuation in 2013 - - - 456,063
Valuation in 2018 - - - 584,980
Valuation in 2022 - - - 2,215,000
Cost 161,489 1,249,724 225,342 4,164,382
161,489 1,249,724 225,342 7,420,425

If freehold property had not been revalued it would have been included at the following historical cost:

2023 2022
£    £   
Cost 1,243,957 1,243,957

Freehold property was valued on an open market basis on 9 December 2022 by Vail Williams LLP .

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:
Motor
vehicles
£   
COST OR VALUATION
At 1 January 2023 736,825
Additions 306,123
At 31 December 2023 1,042,948
DEPRECIATION
At 1 January 2023 72,688
Charge for year 247,752
At 31 December 2023 320,440
NET BOOK VALUE
At 31 December 2023 722,508
At 31 December 2022 664,137

Group Tyre Wholesale Limited (Registered number: 07399286)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023


10. FIXED ASSET INVESTMENTS
Unlisted
investments
£   
COST
At 1 January 2023
and 31 December 2023 2
PROVISIONS
At 1 January 2023
and 31 December 2023 2
NET BOOK VALUE
At 31 December 2023 -
At 31 December 2022 -

11. STOCKS
2023 2022
£    £   
Stocks 4,818,507 5,007,961

12. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade debtors 4,894,280 5,336,349
Amounts owed by group undertakings 61,965 233,389
Other debtors 338,676 378,316
Tax - 109,870
Prepayments 646,834 597,768
5,941,755 6,655,692

13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Bank loans and overdrafts (see note 15) 94,543 270,024
Other loans (see note 15) 956,919 3,307,295
Hire purchase contracts (see note 16) 347,642 245,601
Trade creditors 6,796,827 5,762,433
Tax 327,837 -
Social security and other taxes 70,657 53,268
VAT 431,908 639,787
Other creditors 331,104 306,078
Accruals and deferred income 692,290 145,282
10,049,727 10,729,768

Group Tyre Wholesale Limited (Registered number: 07399286)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023


14. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
2023 2022
£    £   
Bank loans (see note 15) 12,941 560,523
Hire purchase contracts (see note 16) 278,382 404,383
291,323 964,906

15. LOANS

An analysis of the maturity of loans is given below:

2023 2022
£    £   
Amounts falling due within one year or on demand:
Bank loans 94,543 270,024
Invoice finance facility 956,919 3,307,295
1,051,462 3,577,319

Amounts falling due between one and two years:
Bank loans - 1-2 years 12,941 275,269

Amounts falling due between two and five years:
Bank loans - 2-5 years - 285,254

Included within bank loans is a loan taken out in a prior year under the coronavirus business interruption loan scheme (CBILS). The government guarantees 80% of the finance to the lender and pays interest and any fees for the first 12 months after which the rate of interest of 2.54% over base will be applied for the duration of the agreed repayment term.

Bank loans are repayable in instalments by 2024 and carry an interest rate of 1.65% above base rate.

16. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts
2023 2022
£    £   
Net obligations repayable:
Within one year 347,642 245,601
Between one and five years 278,382 404,383
626,024 649,984

Group Tyre Wholesale Limited (Registered number: 07399286)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023


16. LEASING AGREEMENTS - continued

Non-cancellable operating leases
2023 2022
£    £   
Within one year 80,385 255,803
Between one and five years 25,658 69,667
106,043 325,470

17. SECURED DEBTS

The following secured debts are included within creditors:

2023 2022
£    £   
Hire purchase contracts 626,024 649,984
Invoice finance facility 956,919 3,307,295
Bank loan & CBILS loan 107,484 326,548
1,690,427 4,283,827

The invoice finance facility is secured by way of a fixed and floating charge over the assets of the company.

Bank loans (including CBILS) and overdrafts are secured on fixed and floating charges over the assets of the company.

Finance leases are secured against the assets to which they relate.

18. PROVISIONS FOR LIABILITIES
2023 2022
£    £   
Deferred tax 307,050 250,761

Deferred
tax
£   
Balance at 1 January 2023 250,761
Provided during year 56,289
Balance at 31 December 2023 307,050

Group Tyre Wholesale Limited (Registered number: 07399286)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023


19. CALLED UP SHARE CAPITAL

Allotted, called up and fully paid:

2021 2020
Number £ Number £
Ordinary A shares of £1 each 333,333 333,333 333,333 333,333
Ordinary C shares of £1 each 333,333 333,333 333,333 333,333
Ordinary D shares of £1 each 333,334 333,334 333,334 333,334
1,000,000 1,000,000 1,000,000 1,000,000


20. RESERVES
Retained Revaluation
earnings reserve Totals
£    £    £   

At 1 January 2023 1,376,247 3,256,044 4,632,291
Profit for the year 909,882 909,882
Dividends (500,000 ) (500,000 )
At 31 December 2023 1,786,129 3,256,044 5,042,173

21. CAPITAL COMMITMENTS

At the year end Group Tyre Wholesale Limited had committed to capital spend of £130,598 (2022 - £130,598 excluding VAT).

22. RELATED PARTY DISCLOSURES

During the year the company made sales totalling £93,052 (2022 - £112,119) to, and purchases totalling £35,588 (2022 - £26,930) from, BA Bush & Son Limited, a company incorporated in England & Wales which is related by virtue of its joint control over the company. Included within creditors due in one year is a balance due to BA Bush & Son Limited at the year end of £5,038 (2022 - £49,198 due from BA Bush & Son Limited).

During the year the company made sales totalling £694,741 (2022 - £1,026,210) to, and purchases totalling £191,659 (2022 - £397,366) from, S&M Tyres Holdings Limited, a company incorporated in England & Wales which is related by virtue of its joint control over the company. Included within debtors due in one year is a balance due from S&M Tyres Holdings Limited at the year end of £67,003 (2022 - £184,191).

During the year the company made sales totalling £262,209 (2022 - £168,160) to, and purchases totalling £6,734 (2022 - £4,573) from, Tyres Direct On-line Limited, a company incorporated in England & Wales which is related by virtue of its family connection to MD Gary Oliver. Included within debtors due in one year is a balance due from Tyres Direct On-line Limited at the year end of £57,135 (2022 - £15,927).

During the year the company made sales totalling £nil (2022 - £491) from Abbey Tyre Co. (Cambridge) Limited, a company incorporated in England & Wales which is related by virtue of its common directorship with N Bush.

During the year, a total of key management personnel compensation of £ 222,710 (2022 - £ 171,104 ) was paid.

Group Tyre Wholesale Limited (Registered number: 07399286)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023


23. ULTIMATE CONTROLLING PARTY

At the balance sheet date the directors consider the ultimate controlling party to be the owners of the joint venture investors BA Bush & Son Limited and S&M Tyres Holdings Limited.

All joint venture companies are registered in England & Wales.