REGISTERED NUMBER: 13801971 (England and Wales) |
Group Strategic Report, Report of the Directors and |
Consolidated Financial Statements |
for the Year Ended 31st December 2023 |
for |
THAMES MOTOR GROUP LIMITED |
REGISTERED NUMBER: 13801971 (England and Wales) |
Group Strategic Report, Report of the Directors and |
Consolidated Financial Statements |
for the Year Ended 31st December 2023 |
for |
THAMES MOTOR GROUP LIMITED |
THAMES MOTOR GROUP LIMITED (REGISTERED NUMBER: 13801971) |
Contents of the Consolidated Financial Statements |
for the year ended 31st December 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 4 |
Statement of Directors' Responsibilities | 6 |
Report of the Independent Auditors | 7 |
Consolidated Statement of Comprehensive Income | 10 |
Consolidated Statement of Financial Position | 11 |
Company Statement of Financial Position | 12 |
Consolidated Statement of Changes in Equity | 13 |
Company Statement of Changes in Equity | 14 |
Consolidated Statement of Cash Flows | 15 |
Notes to the Consolidated Financial Statements | 16 |
THAMES MOTOR GROUP LIMITED |
Company Information |
for the year ended 31st December 2023 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants & Statutory Auditors |
Suffolk House |
George Street |
Croydon |
Surrey |
CR0 0YN |
THAMES MOTOR GROUP LIMITED (REGISTERED NUMBER: 13801971) |
Group Strategic Report |
for the year ended 31st December 2023 |
The directors present their strategic report of the company and the group for the year ended 31st December 2023. |
REVIEW OF BUSINESS |
The group report revenues of £60,578,566 (2022 - £73,992,331), and profit before tax of £226,792 (2022 - £3,772,183). |
Vehicle trading and servicing |
The group’s revenues in the sale of new and used vehicles decreased in the year by 14.3%, from £70,161,795 in 2022 to £60,085,315. This fall was largely due to a fall in the number of units sold in the year. |
Property |
The group continued to market its property stock in the year, with the aim to sell over the next few years. Due to market conditions there have been no sales made within the year. One property however was purchased by a director for its market value generating revenue of £431,034. |
At the year end date, the group reports a net asset balance of £16,417,007 (£16,393,285). |
PRINCIPAL RISKS AND UNCERTAINTIES |
The principal risks and uncertainties facing the group include the following: |
Product cycle risk |
As new vehicles move through their natural life cycle, the group's ability to maintain adequate margins can be impaired. In order to minimise the impact of this the Board has developed broad based income sources with multiple new franchises and the generation of significant contributions from non franchise operations including used vehicle sales, accident repair, service repair and component sales. |
Competition risk |
The markets in which the group operates are highly competitive and there is a risk that the group's customers will look to alternative sources for products and services offered by the group. The Board has mitigated this risk by building a strong reputation for customer services, expanding its manufacturer representation, constantly monitoring quality of work and value for money. The group continues to monitor competitor activity, customer views and their level of satisfaction and invests significantly in staff training and skills development, from full apprenticeships to continual improvement of all managers. |
Stock value risk |
The group is exposed, as are all businesses in the motor industry, to the risk of the value of its stock in trade falling, due to general economic or industry specific factors. The Directors mitigate this risk through a two-fold policy of ensuring the group only carries stock of a suitable profile and price range that is appropriately aged, and by a strict monthly write-down policy that immediately recognises any fall in value through its income statement. |
Property market risk |
The group will be open to risks created by the property market which affects UK property prices. These are affected by factors such as credit availability, employment levels, interest rates and consumer confidence. Changes in this market may lead to falling demand and property prices.The group will continue to monitor the market and perform regular reviews of pricing in the local areas. |
THAMES MOTOR GROUP LIMITED (REGISTERED NUMBER: 13801971) |
Group Strategic Report |
for the year ended 31st December 2023 |
KEY PERFORMANCE INDICATORS |
The directors constantly monitor a number of key performance indicators to ensure optimal business performance. For example, within the group's motor trade, gross profit margins, like for like sales, and comparisons of the ratio of new and used vehicle sales against industry averages, and the ageing of stock is regularly reviewed, on at least a monthly basis. |
For the group's property development business, analysis is maintained through reviews of budget and forecast of rental income against actuals, and the review of the completion and subsequent sale of its development property stock. |
ON BEHALF OF THE BOARD: |
THAMES MOTOR GROUP LIMITED (REGISTERED NUMBER: 13801971) |
Report of the Directors |
for the year ended 31st December 2023 |
The directors present their report with the financial statements of the company and the group for the year ended 31st December 2023. |
PRINCIPAL ACTIVITIES |
The principal activity of the company continued to be that of a holding company. The principal activities of the group continued to be that of the trading in new and used motor vehicles. and their related servicing, and of property development. |
DIVIDENDS |
The total distribution of dividends for the year ended 31st December 2023 will be £120,000 (2022 - £120,000). |
FUTURE DEVELOPMENTS |
The main focus of the group will be to continue to build on business performance. The directors believe that the group is in a good financial position and that the risks that have been identified are being well managed. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1st January 2023 to the date of this report. |
FINANCIAL INSTRUMENTS |
The group's operations also expose it to a variety of financial risks which include credit risk and liquidity risk. |
Credit Risk |
The group's credit risk relates to bank loan, overdraft and vehicle stocking loan facilities held by the holding company and other group companies. These facilities are secured against the assets of all group companies and are reviewed annually. |
Liquidity Risk |
The group ensures that sufficient liquidity is available to meet forseeable needs. The group of companies is liable to its bankers in respect of overdrafts and loans operated by group companies under the terms of an unlimited multilateral guarantee. |
Interest Risk |
Bank borrowings are used in peak periods, however due to limited use of this facility and recent stability in low interest rate provision, the Board does not believe it appropriate to hedge against interest rate fluctuations. |
STREAMLINED ENERGY AND CARBON REPORTING |
The company and group are exempt from reporting on their energy consumption and associated greenhouse gas emissions on the basis of their size. |
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 group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
THAMES MOTOR GROUP LIMITED (REGISTERED NUMBER: 13801971) |
Report of the Directors |
for the year ended 31st December 2023 |
AUDITORS |
The auditors, Simpson Wreford & Partners, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
THAMES MOTOR GROUP LIMITED (REGISTERED NUMBER: 13801971) |
Statement of Directors' Responsibilities |
for the year ended 31st December 2023 |
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
Report of the Independent Auditors to the Members of |
Thames Motor Group Limited |
Opinion |
We have audited the financial statements of Thames Motor Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31st December 2023 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Statement of Financial Position, Company Statement of Financial Position, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Statement of Cash Flows and 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 group's and of the parent company affairs as at 31st December 2023 and of the group's 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 group 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 group's and the parent 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 Group Strategic Report, the Report of the Directors and the Statement of Directors' Responsibilities, 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 Group 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 Group 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 |
Thames Motor Group Limited |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company 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 six, 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 group's and the parent 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 group or the parent company or to cease operations, or have no realistic alternative but to do so. |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
- | We obtained an understanding of the legal and regulatory framework applicable to the group and the sector in which it operates, through discussions with management and those charged with governance, and also from our detailed understanding of the sector. We identified the Data Protection Act 2018, The Consumer Rights Act 2015, The Trade Descriptions Act 1968, The Health and Safety at Work Act 1974, Landlord and Tenant Act 1985, Tenant Fees Act 2019 and the Housing Act 2004 as all being of significance in the context of Thames Motor Group Limited and its ongoing activities. |
- | We made enquiries with management and those charged with governance to confirm our understanding that the group continued to comply with the applicable legal and regulatory frameworks, and also to confirm our understanding of the specific policies and procedures enlisted by the group to ensure ongoing compliance. |
- | We assessed the susceptibility of the group's financial statements to material misstatement, including how fraud may occur, and gained an understanding of the group's policies and procedures on fraud risks through discussion with the group's management. |
- | We considered the risk of material misstatement due to fraud as a result of possible management override of controls, and improper revenue recognition. To address these risks we tested the appropriateness of journal entries posted, reviewed those judgements made in making accounting estimates, and tested the application of revenue recognition and the cut-off of revenue. |
Report of the Independent Auditors to the Members of |
Thames Motor Group Limited |
- | We communicated those laws and regulations considered relevant to the group, and potential fraud risks to all engagement team members, and consider that the engagement team had the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations, and remained alert to any indications of fraud throughout the audit. |
Due to 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. |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Chartered Accountants & Statutory Auditors |
Suffolk House |
George Street |
Croydon |
Surrey |
CR0 0YN |
THAMES MOTOR GROUP LIMITED (REGISTERED NUMBER: 13801971) |
Consolidated |
Statement of Comprehensive |
Income |
for the year ended 31st December 2023 |
31.12.23 | 31.12.22 |
as restated |
Notes | £ | £ |
REVENUE | 4 | 60,578,566 | 73,992,331 |
Cost of sales | (58,545,097 | ) | (68,063,011 | ) |
GROSS PROFIT | 2,033,469 | 5,929,320 |
Administrative expenses | (2,121,707 | ) | (2,344,625 | ) |
(88,238 | ) | 3,584,695 |
Other operating income | 313,322 | 191,086 |
OPERATING PROFIT | 6 | 225,084 | 3,775,781 |
Interest receivable and similar income | 19,645 | - |
244,729 | 3,775,781 |
Interest payable and similar expenses | 7 | (17,938 | ) | (3,598 | ) |
PROFIT BEFORE TAXATION | 226,791 | 3,772,183 |
Tax on profit | 8 | (83,069 | ) | (1,126,413 | ) |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
143,722 |
2,645,770 |
Profit attributable to: |
Owners of the parent | 130,846 | 2,566,892 |
Non-controlling interests | 12,876 | 78,878 |
143,722 | 2,645,770 |
Total comprehensive income attributable to: |
Owners of the parent | 130,846 | 2,566,892 |
Non-controlling interests | 12,876 | 78,878 |
143,722 | 2,645,770 |
THAMES MOTOR GROUP LIMITED (REGISTERED NUMBER: 13801971) |
Consolidated Statement of Financial Position |
31st December 2023 |
31.12.23 | 31.12.22 |
as restated |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Property, plant and equipment | 12 | 10,950,443 | 10,911,809 |
Investments | 13 | - | - |
10,950,443 | 10,911,809 |
CURRENT ASSETS |
Inventories | 14 | 9,757,000 | 9,567,705 |
Debtors | 15 | 2,970,332 | 2,043,152 |
Cash at bank and in hand | 90,615 | 1,074,474 |
12,817,947 | 12,685,331 |
CREDITORS |
Amounts falling due within one year | 16 | 6,358,360 | 6,246,120 |
NET CURRENT ASSETS | 6,459,587 | 6,439,211 |
TOTAL ASSETS LESS CURRENT LIABILITIES | 17,410,030 | 17,351,020 |
PROVISIONS FOR LIABILITIES | 19 | 993,023 | 957,735 |
NET ASSETS | 16,417,007 | 16,393,285 |
CAPITAL AND RESERVES |
Called up share capital | 20 | 1,000 | 1,000 |
Merger reserve | 21 | 2,814,831 | 2,814,831 |
Retained earnings | 21 | 13,275,929 | 13,265,083 |
SHAREHOLDERS' FUNDS | 16,091,760 | 16,080,914 |
NON-CONTROLLING INTERESTS | 22 | 325,247 | 312,371 |
TOTAL EQUITY | 16,417,007 | 16,393,285 |
The financial statements were approved by the Board of Directors and authorised for issue on 20th September 2024 and were signed on its behalf by: |
K P Khanna - Director |
THAMES MOTOR GROUP LIMITED (REGISTERED NUMBER: 13801971) |
Company Statement of Financial Position |
31st December 2023 |
31.12.23 | 31.12.22 |
as restated |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Property, plant and equipment | 12 |
Investments | 13 |
CURRENT ASSETS |
Debtors | 15 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 16 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
PROVISIONS FOR LIABILITIES | 19 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 20 |
Retained earnings | 21 |
SHAREHOLDERS' FUNDS |
Company's (loss)/profit for the financial year | (421,600 | ) | 899,999 |
The financial statements were approved by the Board of Directors and authorised for issue on |
THAMES MOTOR GROUP LIMITED (REGISTERED NUMBER: 13801971) |
Consolidated Statement of Changes in Equity |
for the year ended 31st December 2023 |
Called up |
share | Retained | Merger |
capital | earnings | reserve |
£ | £ | £ |
Balance at 1st January 2022 | - | 9,232,036 | 3,246,486 |
Changes in equity |
Increase in share capital | 1,000 | - | - |
Reduction in share capital | - | 1,199,500 | - |
Dividends | - | (120,000 | ) | - |
Total comprehensive income | - | 2,566,892 | - |
Merger reserve movement | - | - | (45,000 | ) |
Deferred tax movement on revaluation |
- |
233,169 |
(233,169 |
) |
Change in deferred tax rate | - | 153,486 | (153,486 | ) |
Balance at 31st December 2022 | 1,000 | 13,265,083 | 2,814,831 |
Changes in equity |
Dividends | - | (120,000 | ) | - |
Total comprehensive income | - | 130,846 | - |
Balance at 31st December 2023 | 1,000 | 13,275,929 | 2,814,831 |
Non-controlling | Total |
Total | interests | equity |
£ | £ | £ |
Balance at 1st January 2022 | 12,478,522 | 233,493 | 12,712,015 |
Changes in equity |
Increase in share capital | 1,000 | - | 1,000 |
Reduction in share capital | 1,199,500 | - | 1,199,500 |
Dividends | (120,000 | ) | - | (120,000 | ) |
Total comprehensive income | 2,566,892 | 78,878 | 2,645,770 |
Merger reserve movement | (45,000 | ) | - | (45,000 | ) |
Balance at 31st December 2022 | 16,080,914 | 312,371 | 16,393,285 |
Changes in equity |
Dividends | (120,000 | ) | - | (120,000 | ) |
Total comprehensive income | 130,846 | 12,876 | 143,722 |
Balance at 31st December 2023 | 16,091,760 | 325,247 | 16,417,007 |
THAMES MOTOR GROUP LIMITED (REGISTERED NUMBER: 13801971) |
Company Statement of Changes in Equity |
for the year ended 31st December 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Changes in equity |
Issue of share capital | - |
Total comprehensive income | - |
Balance at 31st December 2022 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - | ( |
) | ( |
) |
Dividend in specie | - | 10,560,000 | 10,560,000 |
Balance at 31st December 2023 |
THAMES MOTOR GROUP LIMITED (REGISTERED NUMBER: 13801971) |
Consolidated Statement of Cash Flows |
for the year ended 31st December 2023 |
31.12.23 | 31.12.22 |
as restated |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 26 | (1,803,224 | ) | 2,269,565 |
Interest paid | (17,938 | ) | (3,598 | ) |
Tax paid | (709,641 | ) | (688,870 | ) |
Net cash from operating activities | (2,530,803 | ) | 1,577,097 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (192,989 | ) | (196,541 | ) |
Interest received | 19,645 | - |
Net cash from investing activities | (173,344 | ) | (196,541 | ) |
Cash flows from financing activities |
Amount introduced by directors | 133,193 | - |
Amount withdrawn by directors | - | (131,517 | ) |
Share issue | - | 500 |
Equity dividends paid | (120,000 | ) | - |
Net cash from financing activities | 13,193 | (131,017 | ) |
(Decrease)/increase in cash and cash equivalents | (2,690,954 | ) | 1,249,539 |
Cash and cash equivalents at beginning of year |
27 |
1,074,474 |
(175,065 |
) |
Cash and cash equivalents at end of year | 27 | (1,616,480 | ) | 1,074,474 |
THAMES MOTOR GROUP LIMITED (REGISTERED NUMBER: 13801971) |
Notes to the Consolidated Financial Statements |
for the year ended 31st December 2023 |
1. | STATUTORY INFORMATION |
Thames Motor Group Limited is a |
The principal activity of the company continued to be that of a holding company. The principal activities of the group continued to be that of the trading in new and used motor vehicles. and their related servicing, and of property development. |
The financial statements have been prepared in pound sterling, the functional currency of the company, and monetary amounts in these financial statements have been rounded to the nearest £. |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Basis of consolidation |
The consolidated financial statements present the results of Thames Motor Group Limited and all of its subsidiary undertakings up to 31 December each year. Intercompany transactions and balances between group companies are therefore eliminated in full. |
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities |
The consolidated financial statements incorporate the results of business combinations using the purchase method. |
These financial statements have applied merger accounting. |
Merger reserve |
The merger reserve on consolidation arose from the acquisition of the shares in T S S Group Limited on 26 July 2022 as part of the group restructure. |
Turnover |
Turnover is recognised to the extent that it is probable the economic benefits will flow to the group and the turnover can be reliably measured. Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of vehicles and from the rendering of services. |
Sale of vehicles |
Revenue from the sale of goods is recognised when all of the following conditions are satisfied: |
- | the group has transferred the significant risks and rewards of ownership to the buyer; |
- | the group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold; |
- | the amount of revenue can be measured reliably; |
- | it is probable that the group will receive the consideration due under the transaction; |
- | the costs incurred or to be incurred in respect of the transaction can be measured reliably. |
THAMES MOTOR GROUP LIMITED (REGISTERED NUMBER: 13801971) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31st December 2023 |
2. | ACCOUNTING POLICIES - continued |
Turnover - continued |
Rendering of services |
Revenue from a contract to provide services is recognised in the period in which the services are provided, when all of the following conditions are satisfied: |
- | the amount of revenue can be measured reliably; |
- | it is probable that the group will receive the consideration due under the contract; |
- | the stage of completion of the contract at the end of the reporting period can be measured reliably, and; |
- | the costs incurred and the costs to complete the contract can be measured reliably. |
Manufacturer bonuses and commission income |
Manufacturer bonuses are considered to be a reduction in the cost of the vehicles sold and are credited against cost of sales in the Statement of Comprehensive Income. Commissions receivable for arranging vehicle financing are included in turnover. |
Property income |
Turnover comprises: |
- | Gross rental income receivable; and |
- | The value of stock sold during the year. |
Revenue from sales of development properties is recognised on completion of contracts. Rental income is recognised when due. Any amounts received in advance or arrears are included in debtors or creditors as applicable. |
Tangible fixed assets |
Land and buildings held are stated in the statement of financial position at their revalued amounts. The revalued amounts equate to the fair value at the date of revaluation, less any depreciation or impairment losses subsequently accumulated. Revaluations are carried out regularly so that the carrying amounts do not materially differ from using the fair value at the date of the statement of financial position. |
Any revaluation increase or decrease on land and buildings is credited to the property revaluation reserve in ‘other reserves’. |
Once a revalued property is sold or retired any attributable revaluation surplus that is remaining in the property revaluation reserve is transferred to retained earnings. No transfer is made from the revaluation reserve to retained earnings unless an asset is derecognised. |
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost included expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. |
At each reporting date the group assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount. |
THAMES MOTOR GROUP LIMITED (REGISTERED NUMBER: 13801971) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31st December 2023 |
2. | ACCOUNTING POLICIES - continued |
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on the following basis: |
Freehold property improvements | - 5 years straight line |
Plant and machinery | - 5 - 10 years straight line |
Fixtures and fittings | - 5 - 10 years straight line |
Gains and losses on disposals are determined by comparing the proceeds with the carrying amounts and are recognised in the Statement of Comprehensive Income. |
Investments in subsidiaries |
Investment in subsidiary undertakings are recognised at cost less accumulated impairment. |
Stocks |
Vehicle stock |
Stocks are stated at the lower of cost and the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads. |
Property stock |
Stocks are stated at the lower of cost and net relisable value, being the estimated selling price less costs to complete and sell. Cost is based on the costs of developing a site, these costs are then allocated to individual plots to achieve a consistent margin for the site. Work in progress and development property include labour and attributable overheads. |
At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in the Statement of Comprehensive Income. |
Financial instruments |
The group enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities such as trade and other debtors and creditors, loans from financial institutions and loans to and from related parties. |
Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transactions, like the payment of a trade debt deferred beyond normal business terms or financed at a rate of interest that is not a market rate or in case of an out-right short-term loan not at market value, the financial asset or liability is measured, initially, at the present value of the future cash flow discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost. |
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of Comprehensive Income. |
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the group would receive for the asset if it were to be sold at the balance sheet date. |
THAMES MOTOR GROUP LIMITED (REGISTERED NUMBER: 13801971) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31st December 2023 |
2. | ACCOUNTING POLICIES - continued |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Statement of Comprehensive Income, 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. |
Deferred tax |
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 |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the statement of financial position date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the group has no further payment obligations. |
The contributions are recognised as an expense in the Statement of Comprehensive Income when they fall due. Amounts not paid are shown in other creditors as a liability in the balance sheet. The assets of the plan are held separately from the group in independently administered funds. |
THAMES MOTOR GROUP LIMITED (REGISTERED NUMBER: 13801971) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31st December 2023 |
2. | ACCOUNTING POLICIES - continued |
Dividends |
Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders. |
Debtors |
Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment. |
Creditors |
Short term trade creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method. |
Cash and cash equivalents |
Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. |
Provisions for liabilities |
Provisions are recognised when the company has a present obligation (legal or constructive) as a result of a past event, it is probable that the company will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. |
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. |
3. | CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY |
In applying the group's accounting policies, the directors are required to make judgements, estimates and assumptions in determining the carrying value of assets and liabilities. The directors' judgement, estimates and assumptions are based on the best and most reliable evidence at the time when the decisions are made and are based on historical experience and other factors that are considered to be applicable. Due to the inherent sensitivity involved in making judgements, estimates and assumptions, the actual results and outcomes may differ. |
The estimates and underlying assumptions are reviewed on an ongoing basis. Any revisions to accounting estimates are recognised prospectively. |
In assessing whether there have been any indicators of impairment to assets, the directors consider both external and internal sources of information such as market conditions and experience of recoverability and establish a provision for receivables that are estimated not to be recoverable. |
THAMES MOTOR GROUP LIMITED (REGISTERED NUMBER: 13801971) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31st December 2023 |
Incentives and other rebates from brand partners |
The group receives income in the form of various incentives which are determined by the brand partners. The amount received is generally based on achieving specific sales volume, as well as other objectives including maintaining brand partner standards which may include retail centre image and design requirements, customer satisfaction survey results and trading standards. Objectives are generally set and measured on either a quarterly or annual basis. |
Where incentives are based on specific sales volume or number of registrations, the related income is recognised as a reduction in cost of sales when it is reasonably certain that the income has been earned. This is generally the later of the date the vehicles are sold or registered or when it is reasonably certain that the related target will be met. Where incentives are linked to retail centre image and design requirements, customer satisfaction survey results or trading standards, they are recognised as a reduction in cost of sales when it is reasonably certain that the incentive will be received for the relevant period. |
The group may also receive contributions towards advertising and promotional expenditure. Where such contributions are received they are recognised as a reduction to the related expenditure in the period to which they relate. |
Product warranty provision |
The product warranty provision requires an estimation of the number of expected warranty claims and the expected cost of labour and parts necessary to satisfy them. |
Provisions against slow moving inventory |
The group establishes a provision for slow moving inventory. When determining the provision, the directors consider factors such as the amount of the inventory holding and subsequent sales. |
Determining residual values and useful economic lives of property, plant and equipment |
The group depreciates tangible assets over their estimated useful lives. The estimation of the useful lives of assets is based on historic performance as well as expectations about future use and therefore requires estimates and assumptions to be applied by management. The actual lives of these assets can vary depending on a variety of factors, including technical innovation, product life cycles and maintenance programmes. |
Determining the cost price of developed properties |
The company recognises the cost of a property to be the cost of developing a site. This cost is allocated to individual plots to achieve a consistent margin for the site. The consistent margin is based on expectations about future sales and therefore requires estimates and assumptions to be applied by management. The actual margins of these properties can vary depending on the property market. |
4. | REVENUE |
The revenue and profit before taxation are attributable to the principal activities of the group. |
An analysis of revenue by class of business is given below: |
31.12.23 | 31.12.22 |
as restated |
£ | £ |
Motor trading | 60,085,315 | 70,161,975 |
Property development | 493,251 | 3,830,356 |
60,578,566 | 73,992,331 |
All revenue in the year and the prior year arose in the United Kingdom. |
THAMES MOTOR GROUP LIMITED (REGISTERED NUMBER: 13801971) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31st December 2023 |
5. | EMPLOYEES AND DIRECTORS |
31.12.23 | 31.12.22 |
as restated |
£ | £ |
Wages and salaries | 2,100,475 | 2,211,754 |
Social security costs | 285,117 | 313,238 |
Other pension costs | 54,278 | 51,935 |
2,439,870 | 2,576,927 |
The average number of employees during the year was as follows: |
31.12.23 | 31.12.22 |
as restated |
Workshop | 34 | 32 |
Office and management | 37 | 30 |
Sales | 23 | 28 |
Key management personnel are considered to be the directors of the company. Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the entity, directly or indirectly. |
31.12.23 | 31.12.22 |
as restated |
£ | £ |
Directors' remuneration | 130,720 | 244,170 |
6. | OPERATING PROFIT |
The operating profit is stated after charging: |
31.12.23 | 31.12.22 |
as restated |
£ | £ |
Other operating leases | 35,000 | 35,000 |
Depreciation - owned assets | 54,355 | 47,465 |
Auditor remuneration | 38,884 | 28,200 |
Auditor remuneration for non audit work | 6,000 | 5,500 |
Defined contribution pension cost | 54,278 | 51,935 |
7. | INTEREST PAYABLE AND SIMILAR EXPENSES |
31.12.23 | 31.12.22 |
as restated |
£ | £ |
Bank interest | 17,938 | - |
Bank loan interest | - | 3,598 |
17,938 | 3,598 |
THAMES MOTOR GROUP LIMITED (REGISTERED NUMBER: 13801971) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31st December 2023 |
8. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
31.12.23 | 31.12.22 |
as restated |
£ | £ |
Current tax: |
UK corporation tax | 47,781 | 696,255 |
Deferred tax: |
Timing differences | 35,288 | 430,158 |
Tax on profit | 83,069 | 1,126,413 |
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: |
31.12.23 | 31.12.22 |
as restated |
£ | £ |
Profit before tax | 226,791 | 3,772,183 |
Profit multiplied by the standard rate of corporation tax in the UK of 23.521 % (2022 - 19 %) |
53,344 |
716,715 |
Effects of: |
Expenses not deductible for tax purposes | 6,976 | 13,032 |
Capital allowances in excess of depreciation | (12,339 | ) | (7,438 | ) |
Adjustments to tax charge in respect of previous periods | - | (15,490 | ) |
Other differences | (200 | ) | (10,565 | ) |
Deferred tax movement | 35,288 | 430,159 |
Total tax charge | 83,069 | 1,126,413 |
Changes to the UK corporation tax rates were introduced by the Finance Bill 2021. These changes include an increase in the corporation tax rate from 19% to 25% from 1 April 2023. |
9. | INDIVIDUAL STATEMENT OF COMPREHENSIVE INCOME |
As permitted by Section 408 of the Companies Act 2006, the Statement of Comprehensive Income of the parent company is not presented as part of these financial statements. |
THAMES MOTOR GROUP LIMITED (REGISTERED NUMBER: 13801971) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31st December 2023 |
10. | DIVIDENDS |
31.12.23 | 31.12.22 |
£ | £ |
Ordinary A shares of £1 each interim | 30,000 | 30,000 |
Ordinary B shares of £1 each interim | 30,000 | 30,000 |
Ordinary C shares of £1 each interim | 30,000 | 30,000 |
Ordinary D shares of £1 each interim | 30,000 | 30,000 |
120,000 | 120,000 |
11. | PRIOR YEAR ADJUSTMENT |
The prior period comparatives have been restated as follows: |
Changes to the consolidated balance sheet |
At 31 December 2022 |
As previously reported |
Adjustments |
As restated |
£ | £ | £ |
Stock |
Property stock | 1,210,099 | (82,594 | ) | 1,127,505 |
Debtors |
Directors' loan account | 120,000 | 11,517 | 131,517 |
Corporation tax debtor | - | 13,386 | 13,386 |
Net assets | 16,450,976 | (57,691 | ) | 16,393,285 |
Reserves |
Profit and loss account | 13,322,774 | (57,691 | ) | 13,265,083 |
Total reserves | 16,450.976 | (57,691 | ) | 16,393,285 |
Reconciliation of changes in retained earnings |
31 December 2022 |
£ |
Adjustments made |
Repairs and renewals | (71,077 | ) |
Corporation tax expense | 13,386 |
57,691 |
Retained earnings | 57,691 |
57,691 |
THAMES MOTOR GROUP LIMITED (REGISTERED NUMBER: 13801971) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31st December 2023 |
Property stock movement |
Having reviewed the costs relating to the investment properties held within T S S Group Limited, as subsidiary company, the directors have found that certain repair costs in previous years had been misclassified as stock. This has been corrected in these accounts by way of a prior year adjustment, reducing the brought forward group retained profit by £71,077. This correction triggers a corporation tax repayment of £13,386 that has also been adjusted through opening reserves. Costs of £11,517 have also been identified that should have been attributed to a director. A prior year adjustment has been included to transfer these to the director's current account. |
12. | PROPERTY, PLANT AND EQUIPMENT |
Group |
Improvements | Fixtures |
Freehold | to | Plant and | and |
property | property | machinery | fittings | Totals |
£ | £ | £ | £ | £ |
COST OR VALUATION |
At 1st January 2023 | 12,615,000 | 487,277 | 522,960 | 748,295 | 14,373,532 |
Additions | - | 96,298 | 66,569 | 30,122 | 192,989 |
Appropriation to stock | (2,055,000 | ) | - | - | - | (2,055,000 | ) |
At 31st December 2023 | 10,560,000 | 583,575 | 589,529 | 778,417 | 12,511,521 |
DEPRECIATION |
At 1st January 2023 | 1,955,000 | 325,762 | 462,034 | 718,927 | 3,461,723 |
Charge for year | - | - | 34,890 | 19,465 | 54,355 |
Reclassification/transfer | (1,955,000 | ) | - | - | - | (1,955,000 | ) |
At 31st December 2023 | - | 325,762 | 496,924 | 738,392 | 1,561,078 |
NET BOOK VALUE |
At 31st December 2023 | 10,560,000 | 257,813 | 92,605 | 40,025 | 10,950,443 |
At 31st December 2022 | 10,660,000 | 161,515 | 60,926 | 29,368 | 10,911,809 |
Cost or valuation at 31st December 2023 is represented by: |
Improvements | Fixtures |
Freehold | to | Plant and | and |
property | property | machinery | fittings | Totals |
£ | £ | £ | £ | £ |
Valuation in 2015 | 2,558,108 | - | - | - | 2,558,108 |
Valuation in 2022 | 1,035,000 | - | - | - | 1,035,000 |
Cost | 6,966,892 | 583,575 | 589,529 | 778,417 | 8,918,413 |
10,560,000 | 583,575 | 589,529 | 778,417 | 12,511,521 |
Freehold property was transferred to the parent company from one of the subsidiaries. This transfer took place at fair value. Fair value was determined using the most recent valuation.This valuation took place on 6 December 2022 with the freehold property being revalued to £10,560,000 by an independent chartered surveyor. If freehold property were included in the balance sheet on an historical cost basis, then the carrying amount would be £6,966,892 (2022 - £7,066,892). |
THAMES MOTOR GROUP LIMITED (REGISTERED NUMBER: 13801971) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31st December 2023 |
12. | PROPERTY, PLANT AND EQUIPMENT - continued |
Company |
Freehold |
property |
£ |
COST |
Transfer from group undertaking | 10,560,000 |
At 31st December 2023 |
NET BOOK VALUE |
At 31st December 2023 |
13. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1st January 2023 |
and 31st December 2023 |
NET BOOK VALUE |
At 31st December 2023 |
At 31st December 2022 |
Subsidiary undertakings |
The following were subsidiary undertakings of the company at 31 December 2023 and included within the consolidated accounts: |
Name | Country ofIncorporation |
Class ofShares |
Holding | PrincipalActivity |
T S S Group Limited | England and Wales |
Ordinary | 100% | Property development |
Thames Motor Group (Slough) Ltd | England and Wales |
Ordinary | 90% | Motor trading |
Thames Motor Group (Tunbridge Wells) Ltd | England and Wales |
Ordinary | 100% | Motor trading |
Thames Contemporary Homes (Oval) Ltd | England and Wales |
Ordinary | 100% | Property development |
The registered office of all subsidiary undertakings is North Farm Industrial Estate, Longfield Road, Tunbridge Wells, Kent, TN2 3EY. |
THAMES MOTOR GROUP LIMITED (REGISTERED NUMBER: 13801971) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31st December 2023 |
14. | STOCKS |
Group |
31.12.23 | 31.12.22 |
as restated |
£ | £ |
Property stock | 716,393 | 1,127,505 |
Work-in-progress | 114,626 | 50,117 |
Vehicle stock | 8,581,854 | 7,937,834 |
Parts stock | 344,127 | 452,249 |
9,757,000 | 9,567,705 |
Vehicle stock is subject to stock finance agreements. Obligations under these agreements are secured and details of the security are given in note 17. |
The group has arrangements with manufacturers of motor vehicles to obtain stock of new vehicles under the terms of consignment agreements. Stocks subject to these agreements are not treated as assets of the group until legal title is transferred. At the year end consignment stock held by the group was £7,035,258 (2022 - £2,950,534). The group does not usually pay a deposit when stock is consigned. Payment for the stock falls due at the earlier of: |
- | the date when the stock is sold to a third party, and |
- | six months from the date of consignment. |
The group is able to return stock (subject to an administration fee) and is not subject to obsolescence or slow movement risk. The price of stock is determined when it is sold to a third party. |
Consignment stock is therefore not included in the balance sheet. |
Included within stock is a provision against slow-moving and obsolete vehicle stock. The provision has increased in the year creating an impairment loss of £107,066 (2022 - £130,925) which was recognised in the Statement of Comprehensive Income. |
15. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
31.12.23 | 31.12.22 | 31.12.23 | 31.12.22 |
as restated | as restated |
£ | £ | £ | £ |
Trade debtors | 1,633,366 | 1,818,720 |
Amounts owed by group undertakings | - | - |
Other debtors | 1,262,387 | 8,393 |
Directors' current accounts | - | 131,517 | - | - |
Tax | 13,386 | 13,386 |
VAT | - | - |
Prepayments and accrued income | 61,193 | 71,136 |
2,970,332 | 2,043,152 |
THAMES MOTOR GROUP LIMITED (REGISTERED NUMBER: 13801971) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31st December 2023 |
16. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
31.12.23 | 31.12.22 | 31.12.23 | 31.12.22 |
as restated | as restated |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 17) | 1,707,095 | - |
Vehicle stocking loan (see note 17) | 2,003,593 | 459,749 |
Trade creditors | 2,323,095 | 3,225,318 |
Amounts owed to group undertakings | - | - |
Tax | 47,781 | 709,641 |
Social security and other taxes | 95,380 | 84,693 |
VAT | 6,932 | 307,876 | - | - |
Other creditors | 40,969 | 1,220,810 |
Directors' current accounts | 1,676 | - | - | - |
Accruals and deferred income | 131,839 | 238,033 |
6,358,360 | 6,246,120 |
17. | LOANS |
An analysis of the maturity of loans is given below: |
Group |
31.12.23 | 31.12.22 |
as restated |
£ | £ |
Amounts falling due within one year or on | demand: |
Bank overdrafts | 1,707,095 | - |
Vehicle stocking loan | 2,003,593 | 459,749 |
3,710,688 | 459,749 |
The group is liable in respect of vehicle stocking loans The full potential liability as at the balance sheet date was £2,003,593 (2022 - 459,749), which is secured against the two motor trade companies' vehicle stock of £8,581,854 (2022 - £7,937,834) outstanding. |
THAMES MOTOR GROUP LIMITED (REGISTERED NUMBER: 13801971) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31st December 2023 |
18. | FINANCIAL INSTRUMENTS |
Group | Company |
31.12.23 | 31.12.22 | 31.12.23 | 31.12.22 |
£ | £ | £ | £ |
Financial assets |
Financial assets measured at fair value through profit or loss |
90,615 |
1,074,474 |
57,321 |
499 |
Financial assets that are debt instruments measured at amortised cost |
2,895,753 |
1,827,113 |
1,285,000 |
900,000 |
2,986,368 | 2,901,587 | 1,342,321 | 900,499 |
Financial liabilities |
Financial liabilities measured at amortised cost |
6,206,589 |
5,135,558 |
242,064 |
208,100 |
Financial assets measured at fair value through profit or loss comprise cash and bank in hand. |
Financial assets measured at amortised cost comprise trade debtors, amounts due from related undertakings, other debtors and accrued income. |
Financial liabilities measured at amortised cost include bank facilities, vehicle stocking loans, trade creditors, other creditors, amounts owed to related undertakings, and accruals. |
19. | PROVISIONS FOR LIABILITIES |
Group | Company |
31.12.23 | 31.12.22 | 31.12.23 | 31.12.22 |
as restated | as restated |
£ | £ | £ | £ |
Deferred tax |
Accelerated capital allowances | 993,023 | 957,735 |
Group |
Deferred |
tax |
£ |
Balance at 1st January 2023 | 957,735 |
Provided during year | 35,288 |
Balance at 31st December 2023 | 993,023 |
THAMES MOTOR GROUP LIMITED (REGISTERED NUMBER: 13801971) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31st December 2023 |
19. | PROVISIONS FOR LIABILITIES - continued |
Company |
Deferred |
tax |
£ |
Provided during year |
Balance at 31st December 2023 |
All deferred tax amounts relate to fixed asset timing differences and are payable in more than 12 months. |
20. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid |
Number | Class | Nominal Value | 31.12.23 | 31.12.22 |
100 | Ordinary A | £1 | 100 | 100 |
700 | Ordinary B | £1 | 700 | 700 |
100 | Ordinary C | £1 | 100 | 100 |
100 | Ordinary D | £1 | 100 | 100 |
1,000 | 1,000 |
All allotted shares carry full voting, dividend and capital distribution rights. |
21. | RESERVES |
Group |
Retained | Merger |
earnings | reserve | Totals |
£ | £ | £ |
At 1st January 2023 | 13,265,083 | 2,814,831 | 16,079,914 |
Profit for the year | 130,846 | 130,846 |
Dividends | (120,000 | ) | (120,000 | ) |
At 31st December 2023 | 13,275,929 | 2,814,831 | 16,090,760 |
Company |
Retained |
earnings |
£ |
At 1st January 2023 |
Deficit for the year | ( |
) |
Dividends | ( |
) |
Dividend in specie | 10,560,000 |
At 31st December 2023 |
THAMES MOTOR GROUP LIMITED (REGISTERED NUMBER: 13801971) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31st December 2023 |
21. | RESERVES - continued |
The merger reserve on consolidation arose from the acquisition of the shares in T S S Group Limited on 26 July 2022 as part of the group restructure. |
In the year a subsidiary company transferred its freehold property to Thames Motor Group Limited via a dividend in specie. |
22. | NON-CONTROLLING INTERESTS |
The non-controlling interest of £325,247 (2022 - £312,371) represents a 10% stake held in a subsidiary company, Thames Motor Group (Slough) Limited. |
23. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
In the year a loan amount of £131,517 was repaid from a director. |
During the year the group sold a property to a director and shareholder for £431,034, a value that is in excess of the property's market value. The property had been valued by a qualified independent third party before the sale took place. |
24. | RELATED PARTY DISCLOSURES |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements. |
At the balance sheet date an amount of £36,000 was owed to Thames Motor Group (Slough) Limited, a subsidiary company. This amount is interest free and repayable on demand. |
At 31 December 2023, an amount of £1,125,000 was owed from Thames Contemporary Homes (Wimbledon) Limited, a company under common control. This amount is interest free and repayable on demand . |
At the year end the company was owed an amount of £22,000 from Thames Contemporary Homes (Clapham) Ltd, a company under common control (2022 - £789,297 owed to). This amount is interest free and repayable on demand. |
25. | ULTIMATE CONTROLLING PARTY |
The ultimate controlling party is V Khanna, a director. |
THAMES MOTOR GROUP LIMITED (REGISTERED NUMBER: 13801971) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31st December 2023 |
26. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
31.12.23 | 31.12.22 |
as restated |
£ | £ |
Profit before taxation | 226,791 | 3,772,183 |
Depreciation charges | 54,355 | 47,466 |
Movement on vehicle stocking loans | 1,543,844 | (2,708,746 | ) |
Finance costs | 17,938 | 3,598 |
Finance income | (19,645 | ) | - |
1,823,283 | 1,114,501 |
(Increase)/decrease in inventories | (89,295 | ) | 843,636 |
(Increase)/decrease in trade and other debtors | (1,058,697 | ) | 1,886,241 |
Decrease in trade and other creditors | (2,478,515 | ) | (1,574,813 | ) |
Cash generated from operations | (1,803,224 | ) | 2,269,565 |
27. | 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 31st December 2023 |
31.12.23 | 1.1.23 |
£ | £ |
Cash and cash equivalents | 90,615 | 1,074,474 |
Bank overdrafts | (1,707,095 | ) | - |
(1,616,480 | ) | 1,074,474 |
Year ended 31st December 2022 |
31.12.22 | 1.1.22 |
as restated |
£ | £ |
Cash and cash equivalents | 1,074,474 | 1,412,335 |
Bank overdrafts | - | (1,587,400 | ) |
1,074,474 | (175,065 | ) |
THAMES MOTOR GROUP LIMITED (REGISTERED NUMBER: 13801971) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31st December 2023 |
28. | ANALYSIS OF CHANGES IN NET FUNDS/(DEBT) |
At 1.1.23 | Cash flow | At 31.12.23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 1,074,474 | (983,859 | ) | 90,615 |
Bank overdrafts | - | (1,707,095 | ) | (1,707,095 | ) |
1,074,474 | (2,690,954 | ) | (1,616,480 | ) |
Debt |
Debts falling due within 1 year | (459,749 | ) | (1,543,844 | ) | (2,003,593 | ) |
(459,749 | ) | (1,543,844 | ) | (2,003,593 | ) |
Total | 614,725 | (4,234,798 | ) | (3,620,073 | ) |