Company registration number 00702156 (England and Wales)
D. STOKER GROUP LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
D. STOKER GROUP LIMITED
COMPANY INFORMATION
Directors
Mr I L Stoker
Mrs M E Stoker
Secretary
Mrs M E Stoker
Company number
00702156
Registered office
1 Ironworks Road
Barrow-in-Furness
LA14 2PG
Auditor
MHA
14 Mannin Way
Lancaster Business Park
Lancaster
LA1 3SW
D. STOKER GROUP LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Directors' responsibilities statement
5
Independent auditor's report
6 - 8
Profit and loss account
9
Statement of comprehensive income
10
Balance sheet
11
Statement of changes in equity
12
Statement of cash flows
13
Notes to the financial statements
14 - 26
D. STOKER GROUP LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

The directors present the strategic report for the year ended 31 December 2023.

Review of business, development and performance

We are pleased to report increased turnover on the previous year, however profitability in 2023 was impacted in Barrow by the unexpected expenditure of a new roof to the entire building. If this had not been the case it would, alongside Morecambe, have exceeded its budget.

 

New car supplies continued to be problematic alongside the continued short supply of used vehicles which often put margins under pressure.

 

With the continued cost of living issues and associated high interest rates in the UK the directors are pleased with this year’s performance but also are aware of potential UK trading difficulties in 2024 hopefully settling in 2025 and beyond.

Principal risks and uncertainties

There are certain risks which could materially and adversely impact the company’s results compared to expectation. A summary of the key risks is set out below. This is not an exhaustive list.

 

Current events

The fallout of the COVID era and continuing war in Ukraine continues to create supply chain issues which can undermine both supply of new vehicles and vehicle parts which could impact on turnover & profitability. Manufactures can be affected differently depending on their regional purchasing policies.

There are presently two main points of litigation in the motor industry; the ongoing diesel emissions litigation, and more recently the FCA investigation into discretionary car finance commission.

Emission claims being made via the dealer network are being handled by the manufacturers involved.  This has been rumbling on for a number of years but all indications appear that the claims will be dealt with and settled with the manufacturers involved using major High Court rulings so it is unlikely there will be any direct involvement financially for the dealer networks.

The FCA has not published its conclusions yet about the discretionary finance commission investigation but it is highly possible they may take action against individual finance houses. Once again, up to this point, there has been no indication that the FCA are looking to involve motor dealers directly in any possible compensation awards. The situation will be clarified once the report is published.

The cost-of-living crisis continues and with it the impact of new vehicle stocking charges, there are signs however that interest rates may begin to fall.

Consumer confidence may be temporarily hit by the impending UK General Election.

Manufacturer relationships

The company relies on the strength of its relationships with the vehicle manufacturers to deliver a significant component of company profitability. Changes in the fortunes and strategy of the company's key manufacturer partners could directly and materially impact the company's result. The directors are confident that the future new products from its manufacturers /​ suppliers will continue to be competitively priced and high quality therefore consider that this 'manufacturer risk' is minimal. This risk is further mitigated by the fact that the company represents a number of different brands, thereby reducing exposure to any one manufacturer partner and by the other core business areas of the company, including used vehicle sales, parts sales and service & repair work.

 

Used vehicle prices

Used vehicle price volatility can present a significant risk in the event that the market price moves rapidly between the point of purchase and the point of sale of a used vehicle. This leads to reduced margins and increased provisions on unsold stock. This risk is mitigated by a combination of regular monitoring of the used vehicle market by the company used car buyers, a focus on stock turn to reduce the length of time that used vehicles are held in stock, and regular review and re-pricing to ensure that vehicles are priced competitively in the market.

D. STOKER GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Development and performance

Company people and reputation

The company has invested heavily in its people and its reputation over a number of years. It is therefore reliant on these individuals to a degree in delivering the company result and reinforcing the underlying DSG brand. The company undertakes a regular review of remuneration and packages to ensure that it attracts and retains the best people.

 

Competition

The company competes with other franchised vehicle dealerships, independent used vehicle sellers, private buyers and sellers, internet based dealers, independent service and repair shops and vehicle manufacturers who have entered the retail market. The company competes for the sale of new and used vehicles, the performance of warranty repairs, non-warranty repairs, routine maintenance business and for the provision of spare parts. The principal competitive factors in service and parts sales are price, familiarity with a manufacturer's brands and models, and the quality of the customer service.

Key performance indicators

Directors and senior management monitor the progress of the business through KPIs in each of the main areas of the business.

 

Sales of new vehicles increased by 22.13% compared to 2022. The increase in units sold reflects increased supply from the manufacturers.

Numbers of retail used vehicles sold on the other hand fell by 1.53% compared to 2022 as we are still seeing the effects of the continued shortage of used vehicles. Used vehicle margins decreased by 11.4% and this was mainly due to the losses felt on used EV sales which continue to be challenging.

Sales in monetary terms continue to increase in both the service and parts departments with an increase of 7.06% in service labour sales and an increase of 15.89% in parts sales.

On behalf of the board

Mr I L Stoker
Director
12 September 2024
D. STOKER GROUP LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -

The directors present their annual report and financial statements for the year ended 31 December 2023.

Principal activities

The principal activity of the company continued to be that of operating within the motor retail industry. The Morecambe branch operates as a Renault, Hyundai and Dacia dealer and the Barrow branch offers a range of used vehicles. In addition to this, the company also provides the servicing of car and commercial vehicles and the sale and distribution of parts.

Results and dividends

The results for the year are set out on page 9.

Ordinary dividends were paid amounting to £288,091. The directors do not recommend payment of a final dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr I L Stoker
Mrs M E Stoker
Financial instruments
Liquidity risk

The company seeks to manage risk by ensuring sufficient liquidity is available to meet foreseeable needs and to invest cash assets safely and profitably.

 

The company's policy throughout the year has been to achieve this objective through the day to day involvement of management in business decisions rather than through setting maximum or minimum liquidity ratios.

Interest rate risk

The company finances its operations through a mixture of bank and other stocking loans. The company has relatively low bank borrowings and can more easily manage the amount of interest bearing short term stocking loans . As a result the directors consider the interest rate risk to be fairly low.

Credit risk

The company's principal financial assets are cash and trade debtors. The credit risk associated with the cash is limited as the counterparts have high credit ratings assigned by international credit-rating agencies. The principal credit risk therefore arises from its trade debtors.

 

In order to manage credit risk, the directors set credit limits for customers based on a combination of payment history and third party credit references. Credit limits are reviewed by the finance director on a regular basis in conjunction with debt aging and collection history.

Future developments

The company will continue to invest in the dealership environment to ensure compliance with manufacturer partner standards.

Auditor

Following the merger of MHA Moore & Smalley with MHA, the company's independent auditor has now become MHA. A resolution to reappoint MHA as independent auditor will be proposed at the next Annual General Meeting.

D. STOKER GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
Strategic report

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of principal risks and uncertainties.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

On behalf of the board
Mr I L Stoker
Director
12 September 2024
D. STOKER GROUP LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 5 -

The directors are responsible for preparing the annual 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 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:

 

 

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.

D. STOKER GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF D. STOKER GROUP LIMITED
- 6 -
Opinion

We have audited the financial statements of D. Stoker Group Limited (the 'company') for the year ended 31 December 2023 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including 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:

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 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 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. 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 course of 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.

D. STOKER GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF D. STOKER GROUP LIMITED
- 7 -

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

 

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.

Matters on which we are required to report by exception

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:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, 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.

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 specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud, are detailed below:

 

D. STOKER GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF D. STOKER GROUP LIMITED
- 8 -

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 is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

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 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.

Jenny McCabe FCA
Senior Statutory Auditor
For and on behalf of MHA, Statutory Auditor
Lancaster, United Kingdom
12 September 2024
MHA is the trading name of MacIntyre Hudson LLP, a limited liability partnership in England and Wales (registered number OC312313)
D. STOKER GROUP LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
2023
2022
Notes
£
£
Turnover
3
31,420,002
27,598,207
Cost of sales
(29,841,458)
(25,932,017)
Gross profit
1,578,544
1,666,190
Administrative expenses
(1,005,977)
(1,018,156)
Other operating income
938
2,651
Operating profit
4
573,505
650,685
Interest payable and similar expenses
7
(119,531)
(35,293)
Profit before taxation
453,974
615,392
Tax on profit
8
(108,104)
(113,702)
Profit for the financial year
345,870
501,690

The profit and loss account has been prepared on the basis that all operations are continuing operations.

D. STOKER GROUP LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
2023
2022
£
£
Profit for the year
345,870
501,690
Other comprehensive income
-
-
Total comprehensive income for the year
345,870
501,690
D. STOKER GROUP LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 11 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
10
2,092,706
2,015,869
Investments
11
2
2
2,092,708
2,015,871
Current assets
Stocks
14
5,179,231
4,454,647
Debtors
13
636,457
552,963
Cash at bank and in hand
282,157
989,408
6,097,845
5,997,018
Creditors: amounts falling due within one year
15
(3,290,843)
(3,146,176)
Net current assets
2,807,002
2,850,842
Total assets less current liabilities
4,899,710
4,866,713
Creditors: amounts falling due after more than one year
16
(213,486)
(257,971)
Provisions for liabilities
Deferred tax liability
18
144,414
124,711
(144,414)
(124,711)
Net assets
4,541,810
4,484,031
Capital and reserves
Called up share capital
20
53,550
53,550
Revaluation reserve
438,997
438,997
Capital redemption reserve
51,450
51,450
Profit and loss reserves
3,997,813
3,940,034
Total equity
4,541,810
4,484,031
The financial statements were approved by the board of directors and authorised for issue on 12 September 2024 and are signed on its behalf by:
Mr I L Stoker
Director
Company Registration No. 00702156
D. STOKER GROUP LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
Share capital
Revaluation reserve
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 January 2022
53,550
438,997
51,450
3,700,668
4,244,665
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
-
-
501,690
501,690
Dividends
9
-
-
-
(262,324)
(262,324)
Balance at 31 December 2022
53,550
438,997
51,450
3,940,034
4,484,031
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
-
-
345,870
345,870
Dividends
9
-
-
-
(288,091)
(288,091)
Balance at 31 December 2023
53,550
438,997
51,450
3,997,813
4,541,810
D. STOKER GROUP LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
26
(4,641)
670,524
Interest paid
(119,531)
(35,293)
Income taxes paid
(116,239)
(140,270)
Net cash (outflow)/inflow from operating activities
(240,411)
494,961
Investing activities
Purchase of tangible fixed assets
(134,264)
(47,530)
Net cash used in investing activities
(134,264)
(47,530)
Financing activities
Repayment of bank loans
(44,485)
(46,982)
Dividends paid
(288,091)
(262,324)
Net cash used in financing activities
(332,576)
(309,306)
Net (decrease)/increase in cash and cash equivalents
(707,251)
138,125
Cash and cash equivalents at beginning of year
989,408
851,283
Cash and cash equivalents at end of year
282,157
989,408
D. STOKER GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
1
Accounting policies
Company information

D. Stoker Group Limited is a private company limited by shares incorporated in England and Wales. The registered office is 1 Ironworks Road, Barrow-in-Furness, LA14 2PG.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties. The principal accounting policies adopted are set out below.

1.2
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Turnover represents the amounts receivable for goods and services net of VAT and trade discounts, to the extent that the company has a right to consideration arising from the performance of its contractual arrangements. Turnover also includes volume bonuses from manufacturers.

 

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably. In general this occurs when vehicles or parts have been supplied or when a service has been completed.

 

Commission income is accounted for on a receivable basis.

1.4
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold land and buildings
Not provided
Leasehold land and buildings
Not provided
Plant and equipment
Between 10 - 33% on cost
Motor vehicles
7 years straight line basis

Although the Companies Act 2006 requires all assets to be depreciated, in the directors' opinion, this would result in an inappropriate carrying value being stated in the accounts. The residual value of the buildings is considered to be similar to or in excess of the cost, and therefore any depreciation is immaterial. Long leasehold property is held at deemed cost.

D. STOKER GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.5
Fixed asset investments

Interests in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.6
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

Recoverable amount is the higher of fair value less costs to sell and value in use. If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss.

1.7
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.8
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand and deposits held at call with banks.

1.9
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

D. STOKER GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -
Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

D. STOKER GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -
Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.10
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.11
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes 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 reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date 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 is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.12
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense. The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

D. STOKER GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -
1.13
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.14
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

 

The directors do not consider any of the estimates and assumptions to have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities.

3
Turnover
2023
2022
£
£
Turnover analysed by class of business
Sale of vehicles, parts and other goods
29,534,650
25,851,582
Rendering of services
1,680,584
1,537,312
Commissions receivable
204,768
209,313
31,420,002
27,598,207
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
31,420,002
27,598,207
D. STOKER GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 19 -
4
Operating profit
2023
2022
Operating profit for the year is stated after charging:
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
11,250
10,300
Depreciation of owned tangible fixed assets
57,427
54,922
Operating lease charges
48,396
44,190
5
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2023
2022
Number
Number
Sales
21
21
Parts and services
35
35
Administration
5
4
Directors
2
2
Total
63
62

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
1,932,753
1,713,096
Social security costs
183,031
169,592
Pension costs
62,371
268,238
2,178,155
2,150,926
6
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
46,401
36,430
Company pension contributions to defined contribution schemes
31,674
235,363
78,075
271,793

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2022 - 2).

D. STOKER GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
7
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
20,929
13,018
Other finance costs:
Other interest
98,602
22,275
119,531
35,293
8
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
88,400
116,239
Adjustments in respect of prior periods
1
-
0
Total current tax
88,401
116,239
Deferred tax
Origination and reversal of timing differences
19,703
(2,537)
Total tax charge
108,104
113,702

The standard rate of tax applied to reported profit on ordinary activities is 23.52% (2023: 19%). The Finance Act 2021, which was substantively enacted on 24 May 2021, created a 25% main rate, 19% small profits rate and a marginal rate which is effective from 1 April 2023. Deferred tax has been calculated at 25% (2023: 25%) which is the rate that the deferred tax liabilities and assets are expected to crystallise.

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Profit before taxation
453,974
615,392
Expected tax charge based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
106,777
116,924
Tax effect of expenses that are not deductible in determining taxable profit
160
94
Tax effect of income not taxable in determining taxable profit
-
0
(2,708)
Under/(over) provided in prior years
1
-
0
Tax rate changes
1,166
(608)
Taxation charge for the year
108,104
113,702
D. STOKER GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
9
Dividends
2023
2022
£
£
Interim paid
288,091
262,324
10
Tangible fixed assets
Freehold land and buildings
Leasehold land and buildings
Plant and equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 January 2023
834,553
1,007,692
850,617
25,447
2,718,309
Additions
-
0
-
0
134,264
-
0
134,264
Disposals
-
0
-
0
(6,562)
-
0
(6,562)
At 31 December 2023
834,553
1,007,692
978,319
25,447
2,846,011
Depreciation and impairment
At 1 January 2023
-
0
-
0
685,823
16,617
702,440
Depreciation charged in the year
-
0
-
0
52,627
4,800
57,427
Eliminated in respect of disposals
-
0
-
0
(6,562)
-
0
(6,562)
At 31 December 2023
-
0
-
0
731,888
21,417
753,305
Carrying amount
At 31 December 2023
834,553
1,007,692
246,431
4,030
2,092,706
At 31 December 2022
834,553
1,007,692
164,794
8,830
2,015,869
11
Fixed asset investments
2023
2022
Notes
£
£
Investments in subsidiaries
12
2
2
12
Subsidiaries

Details of the company's subsidiaries at 31 December 2023 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Nowjet Limited
England & Wales
Ordinary
50.00
D. STOKER GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
13
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
494,494
370,487
Other debtors
11,781
110,398
Prepayments and accrued income
130,182
72,078
636,457
552,963
14
Stocks
2023
2022
£
£
Parts and accessories
157,112
140,782
Vehicle stock
5,022,119
4,313,865
5,179,231
4,454,647
15
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Bank loans
17
57,960
57,960
Trade creditors
2,685,238
2,460,218
Corporation tax
88,400
116,238
Other taxation and social security
145,241
37,960
Other creditors
217,678
387,577
Accruals and deferred income
96,326
86,223
3,290,843
3,146,176

Trade creditors includes vehicle creditors of £2,521,438 (2022: £2,350,890) which are secured on the vehicles to which they relate.

16
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Bank loans and overdrafts
17
213,486
257,971
Amounts included above which fall due after five years are as follows:
Payable by instalments
-
26,131
D. STOKER GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
17
Loans and overdrafts
2023
2022
£
£
Bank loans
271,446
315,931
Payable within one year
57,960
57,960
Payable after one year
213,486
257,971

The bank loans are secured by fixed and floating charges over all fixed assets of the company.

The bank loans bear interest at a rate of 2.5% per annum above the Bank of England base rate and is due to be repaid by November 2028.

18
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
144,414
124,711
2023
Movements in the year:
£
Liability at 1 January 2023
124,711
Charge to profit or loss
19,703
Liability at 31 December 2023
144,414

The deferred tax liability set out above is not expected to reverse within 12 months and relates to accelerated capital allowances and revaluations that are expected to mature upon the sale of those assets.

19
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
62,371
268,238

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

D. STOKER GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 24 -
20
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
A Ordinary of £1 each
42,800
42,800
42,800
42,800
B Ordinary of £1 each
40
40
40
40
C Ordinary of £1 each
5,355
5,355
5,355
5,355
D Ordinary of £1 each
5,315
5,315
5,315
5,315
E Ordinary of £1 each
40
40
40
40
53,550
53,550
53,550
53,550

The shares all rank equally for voting purposes, for repayment and for distributions made on winding up. Shares are eligible for full dividends and dividends may be varied according to class of share.

21
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2023
2022
£
£
Within one year
50,500
26,397
Between two and five years
124,583
32,083
175,083
58,480
22
Capital commitments

Amounts contracted for but not provided in the financial statements:

2023
2022
£
£
Acquisition of tangible fixed assets
-
92,736
23
Related party transactions
Transactions with related parties

During the year the company entered into the following transactions with related parties:

D. STOKER GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
23
Related party transactions
(Continued)
- 25 -
Sales
Sales
Purchases
Purchases
2023
2022
2023
2022
£
£
£
£
Individuals with control, joint control or significant influence over the company
41,800
44,000
44,000
46,428
Other related parties
33,300
64,200
64,200
26,285
2023
2022
Amounts due to related parties
£
£
Individuals with control, joint control or significant influence over the company
2,450
10,600
Other related parties
79,494
108,250

The following amounts were outstanding at the reporting end date:

2023
2022
Amounts due from related parties
£
£
Individuals with control, joint control or significant influence over the company
41,800
44,000
Other related parties
33,300
67,424
24
Directors' transactions

Dividends totalling £58,911 (2022 - £67,392) were paid in the year in respect of shares held by the company's directors.

25
Ultimate controlling party

The ultimate controlling party is Mr I L Stoker by virtue of his majority shareholding.

D. STOKER GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 26 -
26
Cash (absorbed by)/generated from operations
2023
2022
£
£
Profit for the year after tax
345,870
501,690
Adjustments for:
Taxation charged
108,104
113,702
Finance costs
119,531
35,293
Depreciation and impairment of tangible fixed assets
57,427
54,922
Movements in working capital:
Increase in stocks
(724,584)
(253,193)
(Increase)/decrease in debtors
(83,494)
8,834
Increase in creditors
172,505
209,276
Cash (absorbed by)/generated from operations
(4,641)
670,524
27
Analysis of changes in net funds
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
989,408
(707,251)
282,157
Borrowings excluding overdrafts
(315,931)
44,485
(271,446)
673,477
(662,766)
10,711
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