Company registration number 08308302 (England and Wales)
BATCHELORS MOTOR GROUP LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
BATCHELORS MOTOR GROUP LIMITED
COMPANY INFORMATION
Directors
Mr A M Denton
Mrs K L Denton
Secretary
Mr A M Denton
Company number
08308302
Registered office
Camp Hill Close
Dallamires Lane
Ripon
HG4 1TT
Auditor
Azets Audit Services Limited
Triune Court
Monks Cross Drive
York
YO32 9GZ
BATCHELORS MOTOR GROUP LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Group statement of comprehensive income
8
Group balance sheet
9
Company balance sheet
10
Group statement of changes in equity
11
Company statement of changes in equity
12
Group statement of cash flows
13
Notes to the financial statements
14 - 33
BATCHELORS MOTOR 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.
Business review and principal activities
The principal activity of the group is that of motor vehicle dealerships supplying new and used cars and light commercials, along with servicing, repair, MoT, parts, and accessories. There have been no major changes in the group’s principal activities in the year under review. At the date of this report we have secured additional franchise partners being, OMODA and JAECOO. These two new franchises will initially operate from an existing showroom facility in York. In 2023 the group represented Suzuki, Renault, Dacia, Nissan and Mitsubishi. On the 1st September 2024 we added OMODA and JAECOO. This takes our franchise partners to seven. We operate out of four showrooms in the locations of Ripon, York and Otley. The group enjoyed an increase in revenue of 22.67% to £26,204,722 (2022 - £21,362,038). Our gross profit margin increased to 11.65% (2022 - 11.43%). The availability of new car product has remained challenging and the group suffered reasonably large Electric Vehicle depreciation in Q4 2023. These two points severely affected both our revenue and profitability. We are extremely pleased that we saw a 22.67% increase in revenue and a small improvement in GP considering the headwinds we faced in the latter part of the year. Since the turn of the year (2023 to 2024) we have focused our efforts on Used Cars and Aftersales. Some of our franchise partners are well ahead of the curve with respect of the 2035 ZEV Mandate and there is no restriction on supply. We are capitalising on this. We anticipate our revenue to grow to in excess of £30 million in 2024. Whilst our GP% remains stable to improving. Costs have been, and remain a challenge but there does appear to be some settling. We are a family business who continue to have remarkable staff retention levels. Staff are trained well and we utilise apprenticeship schemes where possible. Customer care remains paramount and we continue to carefully monitor major review platforms. |
Principal risks and uncertainties
The directors actively review and monitor risk which is of course an inherent part of being in business. We assess the business regularly by department, have a tight management mechanism and have daily operating controls. The major strategic, business and operational risks which the company faces are:
We mitigate risk by having seven franchises, three locations and spread funding.
The group doesn’t use any financial instruments.
Key performance indicators
The group use a number of KPI’s to monitor a variety of business aspects these include, monthly management accounts, weekly financial operating controls, customer care surveys, staff reviews, website search data and price checks.
BATCHELORS MOTOR GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Future developments
Sales and profitability are expected to significantly improve as the new franchise(s) create significant additional volume. The Directors are in the advanced stages of negotiation, with regards to franchised representations in other Yorkshire cities. We believe that there are significant cost savings associated with scale and we have worked hard on our infrastructure in anticipation and readiness for growth.
The directors would like to thank all employees for their hard work and our franchise partners for their support in the year. We look forward to working with you all in the coming years.
Mr A M Denton
Director
21 September 2024
BATCHELORS MOTOR 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 and group continued to be that of a motor vehicle dealership.
Results and dividends
The results for the year are set out on page 8.
Ordinary dividends were paid amounting to £107,500. The directors do not recommend payment of a further 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 A M Denton
Mrs K L Denton
Auditor
The auditor, Azets Audit Services Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
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 auditor of the company 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 auditor of the company is aware of that information.
On behalf of the board
Mr A M Denton
Director
21 September 2024
BATCHELORS MOTOR GROUP LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
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 group and company, 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;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the ;
prepare the on the going concern basis unless it is inappropriate to presume that the group and company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
BATCHELORS MOTOR GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF BATCHELORS MOTOR GROUP LIMITED
- 5 -
Opinion
We have audited the financial statements of Batchelors Motor Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group 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:
give a true and fair view of the state of the group's and the parent company's affairs as at 31 December 2023 and of the group's loss for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
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 group and 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 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.
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.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
BATCHELORS MOTOR GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF BATCHELORS MOTOR GROUP LIMITED
- 6 -
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 strategic report and the directors' report.
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 group and 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 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 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 parent 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.
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.
BATCHELORS MOTOR GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF BATCHELORS MOTOR GROUP LIMITED
- 7 -
Extent to which the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.
We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.
In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:
Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud;
Reviewing minutes of meetings of those charged with governance;
Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the entity through enquiry and inspection;
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias.
Performing audit work over the timing and recognition of revenue and in particular whether it has been recorded in the correct accounting period.
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 of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
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.
Martin Davey (Senior Statutory Auditor)
For and on behalf of Azets Audit Services Limited
23 September 2024
Chartered Accountants
Statutory Auditor
Triune Court
Monks Cross Drive
York
YO32 9GZ
BATCHELORS MOTOR GROUP LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
2023
2022
Notes
£
£
Turnover
3
26,204,722
21,362,038
Cost of sales
(23,150,648)
(18,920,308)
Gross profit
3,054,074
2,441,730
Administrative expenses
(2,969,908)
(2,396,295)
Other operating income
141,815
323,641
Operating profit
4
225,981
369,076
Interest receivable and similar income
8
146
25,693
Interest payable and similar expenses
9
(304,297)
(190,780)
(Loss)/profit before taxation
(78,170)
203,989
Tax on (loss)/profit
10
27,075
(5,982)
(Loss)/profit for the financial year
(51,095)
198,007
Other comprehensive income
Revaluation of tangible fixed assets
200,000
Tax relating to other comprehensive income
(50,000)
Total comprehensive income for the year
(51,095)
348,007
(Loss)/profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.
The profit and loss account has been prepared on the basis that all operations are continuing operations.
BATCHELORS MOTOR GROUP LIMITED
GROUP BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Negative goodwill
12
(232,013)
(298,302)
Tangible assets
13
2,767,749
2,879,547
Investments
14
163,366
168,366
2,699,102
2,749,611
Current assets
Stocks
16
4,377,919
4,042,198
Debtors
17
718,622
526,525
Cash at bank and in hand
13,480
58,187
5,110,021
4,626,910
Creditors: amounts falling due within one year
18
(5,753,183)
(5,100,249)
Net current liabilities
(643,162)
(473,339)
Total assets less current liabilities
2,055,940
2,276,272
Creditors: amounts falling due after more than one year
19
(728,926)
(765,663)
Provisions for liabilities
Deferred tax liability
22
207,000
232,000
(207,000)
(232,000)
Net assets
1,120,014
1,278,609
Capital and reserves
Called up share capital
24
100,000
100,000
Revaluation reserve
195,755
195,755
Profit and loss reserves
824,259
982,854
Total equity
1,120,014
1,278,609
The financial statements were approved by the board of directors and authorised for issue on 21 September 2024 and are signed on its behalf by:
21 September 2024
Mr A M Denton
Director
Company registration number 08308302 (England and Wales)
BATCHELORS MOTOR GROUP LIMITED
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
13
2,050,000
Investments
14
965,366
1,880,251
3,015,366
1,880,251
Current assets
Debtors
17
285,371
Cash at bank and in hand
1,138
878
286,509
878
Creditors: amounts falling due within one year
18
(1,257,657)
(1,170,316)
Net current liabilities
(971,148)
(1,169,438)
Total assets less current liabilities
2,044,218
710,813
Creditors: amounts falling due after more than one year
19
(625,190)
(295,151)
Provisions for liabilities
Deferred tax liability
22
224,000
(224,000)
-
Net assets
1,195,028
415,662
Capital and reserves
Called up share capital
24
100,000
100,000
Profit and loss reserves
1,095,028
315,662
Total equity
1,195,028
415,662
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £886,866 (2022 - £177,317 profit).
The financial statements were approved by the board of directors and authorised for issue on 21 September 2024 and are signed on its behalf by:
21 September 2024
Mr A M Denton
Director
Company registration number 08308302 (England and Wales)
BATCHELORS MOTOR GROUP LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 January 2022
100,000
45,755
931,847
1,077,602
Year ended 31 December 2022:
Profit for the year
-
-
198,007
198,007
Other comprehensive income:
Revaluation of tangible fixed assets
-
200,000
-
200,000
Tax relating to other comprehensive income
-
(50,000)
(50,000)
Total comprehensive income
-
150,000
198,007
348,007
Dividends
11
-
-
(147,000)
(147,000)
Balance at 31 December 2022
100,000
195,755
982,854
1,278,609
Year ended 31 December 2023:
Loss and total comprehensive income
-
-
(51,095)
(51,095)
Dividends
11
-
-
(107,500)
(107,500)
Balance at 31 December 2023
100,000
195,755
824,259
1,120,014
BATCHELORS MOTOR GROUP LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 January 2022
100,000
285,345
385,345
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
177,317
177,317
Dividends
11
-
(147,000)
(147,000)
Balance at 31 December 2022
100,000
315,662
415,662
Year ended 31 December 2023:
Profit and total comprehensive income
-
886,866
886,866
Dividends
11
-
(107,500)
(107,500)
Balance at 31 December 2023
100,000
1,095,028
1,195,028
BATCHELORS MOTOR GROUP LIMITED
GROUP 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
27
(430,421)
108,987
Interest paid
(300,382)
(190,780)
Income taxes paid
(625)
(101,455)
Net cash outflow from operating activities
(731,428)
(183,248)
Investing activities
Purchase of business
-
37,347
Purchase of tangible fixed assets
(28,033)
(78,074)
Proceeds from disposal of tangible fixed assets
19,998
-
Proceeds from disposal of investments
5,000
(6,554)
Interest received
146
25,555
Dividends received
138
Net cash used in investing activities
(2,889)
(21,588)
Financing activities
Movement on borrowings
699,689
149,760
Proceeds from new bank loans
380,770
-
Repayment of bank loans
(297,843)
(74,210)
Payment of finance leases obligations
(46,425)
(123,101)
Dividends paid to equity shareholders
(107,500)
(147,000)
Net cash generated from/(used in) financing activities
628,691
(194,551)
Net decrease in cash and cash equivalents
(105,626)
(399,387)
Cash and cash equivalents at beginning of year
(39,241)
360,146
Cash and cash equivalents at end of year
(144,867)
(39,241)
Relating to:
Cash at bank and in hand
13,480
58,187
Bank overdrafts included in creditors payable within one year
(158,347)
(97,428)
BATCHELORS MOTOR GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
1
Accounting policies
Company information
Batchelors Motor Group Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Camp Hill Close, Dallamires Lane, Ripon, HG4 1TT.
The group consists of Batchelors Motor Group Limited and all of its subsidiaries.
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 £1.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and certain financial instruments. The principal accounting policies adopted are set out below.
The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’: Interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The company has applied section 33.1A of FRS 102 permitting it to not disclose related party transactions with wholly owned group companies.
1.2
Business combinations
In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.
Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.
BATCHELORS MOTOR GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -
1.3
Basis of consolidation
The consolidated group financial statements consist of the financial statements of the parent company Batchelors Motor Group Limited together with all entities controlled by the parent company (its subsidiaries).
All financial statements are made up to 31 December 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.
1.4
Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the group and parent 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.
1.5
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Sale of motor vehicles, parts and accessories are recognised on the earlier of full payment by, or delivery date to, the customer together with the associate manufacturer vehicle bonus income. Any other manufacturer income in relation to achieving targets is recognised on an accruals basis. Servicing and bodyshop revenue is recognised on the completion of agreed work.
1.6
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, between 5 and 10 years.
For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.
1.7
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.
BATCHELORS MOTOR GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -
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
See below
Leasehold land and buildings
Straight line over the life of the lease
Plant and equipment
Straight line over 3 - 10 years
Fixtures and fittings
Straight line over 7 - 10 years
Computers
Straight line over 3 - 5 years
Motor vehicles
Straight line over 5 years
Freehold land is not depreciated.
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 recognised in the profit and loss account.
Properties whose fair value can be measured reliably are held under the revaluation model and are carried at a revalued amount, being their fair value at the date of valuation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. The fair value of the land and buildings is usually considered to be their market value. In respect of revalued freehold land and building, an assessment was completed to estimate the carrying amount split between land and buildings. The majority was considered to relate to land and as such, no depreciation has been charged.
Revaluation gains and losses are recognised in other comprehensive income and accumulated in equity, except to the extent that a revaluation gain reverses a revaluation loss previously recognised in profit or loss or a revaluation loss exceeds the accumulated revaluation gains recognised in equity; such gains and losses are recognised in profit or loss.
1.8
Fixed asset investments
Equity investments are measured at fair value through profit or loss.
In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
Other investments are vintage cars which are held at fair value and reviewed for impairment at each reporting year end.
1.9
Impairment of fixed assets
At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible 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). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.
BATCHELORS MOTOR GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
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, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.10
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
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.
Consignment Stock
Consignment vehicles are regarded as being effectively under the control of the group and are included within stock on the balance sheet as the group has the significant risks and rewards of ownership even though legal title has not yet passed. The corresponding liability is within creditors.
1.11
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.12
Financial instruments
The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and 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.
BATCHELORS MOTOR GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -
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.
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, other than those held at fair value through profit and loss, 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 group 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 group after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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.
BATCHELORS MOTOR GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 19 -
Derecognition of financial liabilities
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
1.13
Equity instruments
Equity instruments issued by the group 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 group.
1.14
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 group’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, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is 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.
1.15
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
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.
1.16
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
BATCHELORS MOTOR GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 20 -
1.17
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
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 leased asset are consumed.
2
Judgements and key sources of estimation uncertainty
In the application of the group’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.
3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Car sales
23,832,116
18,752,243
Service and part sales
2,372,606
2,609,795
26,204,722
21,362,038
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
26,204,722
21,362,038
2023
2022
£
£
Other revenue
Interest income
146
25,555
Dividends received
-
138
BATCHELORS MOTOR GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Depreciation of owned tangible fixed assets
116,478
102,834
Depreciation of tangible fixed assets held under finance leases
16,996
26,230
Profit on disposal of tangible fixed assets
(13,641)
-
Amortisation of intangible assets
(66,289)
(85,492)
Operating lease charges
203,758
161,300
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
1,500
1,500
Audit of the financial statements of the company's subsidiaries
25,700
25,900
27,200
27,400
6
Employees
The average monthly number of persons (including directors) employed by the group and company during the year was:
Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Sales, garage and administration
65
70
-
-
Directors
2
2
2
2
Total
67
72
2
2
Their aggregate remuneration comprised:
Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
1,928,394
1,797,312
Social security costs
180,572
171,824
-
-
Pension costs
41,379
30,039
2,150,345
1,999,175
BATCHELORS MOTOR GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
15,672
18,344
The directors of the group are considered to be the same as key management personnel.
8
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
146
238
Other interest income
-
25,317
Total interest revenue
146
25,555
Other income from investments
Dividends received
138
Total income
146
25,693
9
Interest payable and similar expenses
2023
2022
£
£
Interest on bank overdrafts and loans
30,304
33,874
Other interest on financial liabilities
227,181
141,507
Interest on finance leases and hire purchase contracts
42,897
15,399
Finance costs for financial instruments measured at fair value through profit or loss
3,915
Total finance costs
304,297
190,780
10
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
2,700
Adjustments in respect of prior periods
(2,075)
782
Total current tax
(2,075)
3,482
Deferred tax
Origination and reversal of timing differences
(25,000)
2,500
Total tax (credit)/charge
(27,075)
5,982
BATCHELORS MOTOR GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
10
Taxation
(Continued)
- 23 -
The actual (credit)/charge for the year can be reconciled to the expected (credit)/charge for the year based on the profit or loss and the standard rate of tax as follows:
2023
2022
£
£
(Loss)/profit before taxation
(78,170)
203,989
Expected tax (credit)/charge based on the standard rate of corporation tax in the UK of 25.00% (2022: 19.00%)
(19,543)
38,758
Adjustments in respect of prior years
(2,075)
782
Depreciation on assets not qualifying for tax allowances
4,238
Amortisation on assets not qualifying for tax allowances
(16,243)
Other
(5,457)
(21,553)
Taxation (credit)/charge
(27,075)
5,982
In addition to the amount charged to the profit and loss account, the following amounts relating to tax have been recognised directly in other comprehensive income:
2023
2022
£
£
Deferred tax arising on:
Revaluation of property
-
50,000
The UK corporation tax rate was 19% throughout the year.
In the March 2021 Budget, a change to the future UK corporation tax rate was announced, the rate changed to 25% from April 2023. Deferred tax balances at the reporting date are therefore measured at 25% (2022 - 25%)
11
Dividends
2023
2022
Recognised as distributions to equity holders:
£
£
Interim paid
107,500
147,000
BATCHELORS MOTOR GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 24 -
12
Intangible fixed assets
Group
Negative goodwill
£
Cost
At 1 January 2023 and 31 December 2023
(854,926)
Amortisation and impairment
At 1 January 2023
(556,624)
Amortisation charged for the year
(66,289)
At 31 December 2023
(622,913)
Carrying amount
At 31 December 2023
(232,013)
At 31 December 2022
(298,302)
The company had no intangible fixed assets at 31 December 2023 or 31 December 2022.
BATCHELORS MOTOR GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 25 -
13
Tangible fixed assets
Group
Freehold land and buildings
Leasehold land and buildings
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
£
Cost or valuation
At 1 January 2023
2,082,977
392,997
585,598
480,954
80,186
84,414
3,707,126
Additions
11,741
11,722
1,570
3,000
28,033
Disposals
(31,820)
(31,820)
Transfers
(32,977)
32,977
At 31 December 2023
2,050,000
392,997
630,316
492,676
81,756
55,594
3,703,339
Depreciation and impairment
At 1 January 2023
9,441
117,482
366,416
238,488
63,157
32,595
827,579
Depreciation charged in the year
21,606
37,454
59,420
5,051
9,943
133,474
Eliminated in respect of disposals
(25,463)
(25,463)
Transfers
(9,441)
9,441
At 31 December 2023
139,088
413,311
297,908
68,208
17,075
935,590
Carrying amount
At 31 December 2023
2,050,000
253,909
217,005
194,768
13,548
38,519
2,767,749
At 31 December 2022
2,073,536
275,515
219,182
242,466
17,029
51,819
2,879,547
BATCHELORS MOTOR GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 26 -
Company
Freehold land and buildings
£
Cost or valuation
At 1 January 2023
Additions
2,050,000
At 31 December 2023
2,050,000
Depreciation and impairment
At 1 January 2023 and 31 December 2023
Carrying amount
At 31 December 2023
2,050,000
The carrying value of land comprises:
Group
Company
2023
2022
2023
2022
£
£
£
£
Freehold
1,373,536
Long leasehold
29,189
30,378
29,189
1,403,914
-
-
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
Group
Company
2023
2022
2023
2022
£
£
£
£
Plant and equipment
36,062
89,679
Motor vehicles
23,180
35,232
59,242
124,911
-
-
Land and buildings held at the beginning of the year were revalued to £1,400,000 at 4 November 2022 by a RICS accredited independent valuer who are not connected with the company and on the basis of market value. The valuation conforms to International Valuation Standards and was based on recent market transactions on arm's length terms for similar properties. The directors are of the opinion that there is no material change in this valuation as at 31 December 2022.
Freehold property is carried at valuation. If freehold property were measured using the cost model, the carrying amounts for the group would have been £196,026 (2022 - £209,473), being cost £457,527 (2022 - £457,527) less accumulated depreciation £261,501 (2022 - £253,815).
BATCHELORS MOTOR GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 27 -
14
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
15
802,000
1,711,885
Unlisted investments
163,366
168,366
163,366
168,366
163,366
168,366
965,366
1,880,251
Movements in fixed asset investments
Group
Investments
£
Cost or valuation
At 1 January 2023
168,366
Disposals
(5,000)
At 31 December 2023
163,366
Carrying amount
At 31 December 2023
163,366
At 31 December 2022
168,366
Movements in fixed asset investments
Company
Shares in subsidiaries
Other investments
Total
£
£
£
Cost or valuation
At 1 January 2023
1,711,885
168,366
1,880,251
Disposals
-
(5,000)
(5,000)
At 31 December 2023
1,711,885
163,366
1,875,251
Impairment
At 1 January 2023
-
-
-
Impairment losses
909,885
-
909,885
At 31 December 2023
909,885
-
909,885
Carrying amount
At 31 December 2023
802,000
163,366
965,366
At 31 December 2022
1,711,885
168,366
1,880,251
15
Subsidiaries
Details of the company's subsidiaries at 31 December 2023 are as follows:
BATCHELORS MOTOR GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
15
Subsidiaries
(Continued)
- 28 -
Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Batchelors of Ripon Limited
England and Wales
Motor vehicle dealership
Ordinary
100.00
Batchelors of York Limited
England and Wales
Motor vehicle dealership
Ordinary
100.00
Signature Motors Limited
England and Wales
Sale of motor vehicles
Ordinary
100.00
Signature Contract Hire & Leasing Limited
England and Wales
Renting and leasing of motor vehicles
Ordinary
100.00
Kineholme Garage Limited
England and Wales
Motor vehicle dealership
Ordinary
100.00
All of the subsidiaries have the same registered office addresses as the parent company.
16
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Consignment stock
1,912,298
607,409
-
-
Vehicle Stock
2,337,749
3,311,586
-
-
Parts stock
127,872
123,203
4,377,919
4,042,198
-
-
The carrying amount of stocks includes £3,830,918 (2022 - £3,186,838) pledged as security for liabilities.
17
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
104,267
106,192
Other debtors
542,087
309,082
281,741
Prepayments and accrued income
72,268
111,251
3,630
718,622
526,525
285,371
-
BATCHELORS MOTOR GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 29 -
18
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
20
226,267
173,298
41,253
Obligations under finance leases
21
65,980
107,519
Other borrowings
20
4,148,446
3,374,753
19,126
19,228
Trade creditors
542,661
779,120
17
Amounts owed to group undertakings
1,074,963
1,033,666
Corporation tax payable
2,700
Other taxation and social security
256,897
87,110
2,167
-
Other creditors
269,017
302,058
117,049
116,971
Accruals and deferred income
243,915
273,691
3,082
451
5,753,183
5,100,249
1,257,657
1,170,316
Included within other borrowings are vehicle stocking finance liabilities of £3,830,918 (2022- £3,186,838) which are secured over the related company and group assets.
Obligations under finance leases are secured against the assets to which they relate.
The bank loans and overdrafts are secured by legal charge over the freehold property of the group and a debenture over all assets of the group.
19
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
20
481,945
391,068
452,767
Obligations under finance leases
21
74,558
79,444
Other borrowings
20
60,874
77,439
60,874
77,439
Other creditors
111,549
217,712
111,549
217,712
728,926
765,663
625,190
295,151
Obligations under finance leases are secured against the assets to which they relate.
Amounts included above which fall due after five years are as follows:
Payable by instalments
248,999
182,908
-
-
BATCHELORS MOTOR GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 30 -
20
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
549,865
466,938
494,020
Bank overdrafts
158,347
97,428
Other loans
4,209,320
3,452,192
80,000
96,667
4,917,532
4,016,558
574,020
96,667
Payable within one year
4,374,713
3,548,051
60,379
19,228
Payable after one year
542,819
468,507
513,641
77,439
21
Finance lease obligations
Group
Company
2023
2022
2023
2022
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
65,980
121,999
In two to five years
89,610
80,545
155,590
202,544
-
-
Less: future finance charges
(15,052)
(15,581)
140,538
186,963
22
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
Liabilities
Liabilities
2023
2022
Group
£
£
Accelerated capital allowances
(17,000)
18,500
Tax losses
-
(9,000)
Property revaluations
224,000
224,000
Provisions
-
(1,500)
207,000
232,000
BATCHELORS MOTOR GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
22
Deferred taxation
(Continued)
- 31 -
Liabilities
Liabilities
2023
2022
Company
£
£
Revaluations
224,000
-
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 January 2023
232,000
-
Credit to profit or loss
(25,000)
-
Other
-
224,000
Liability at 31 December 2023
207,000
224,000
23
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
41,379
30,039
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
24
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100,000
100,000
100,000
100,000
BATCHELORS MOTOR GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 32 -
25
Operating lease commitments
Lessee
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
139,041
146,241
-
-
Between two and five years
497,374
513,781
-
-
In over five years
1,254,180
1,376,814
-
-
1,890,595
2,036,836
-
-
26
Controlling party
The company is jointly controlled by Mr A M Denton and Mrs K L Denton, who are both directors of the company.
27
Cash (absorbed by)/generated from group operations
2023
2022
£
£
(Loss)/profit for the year after tax
(51,095)
198,007
Adjustments for:
Taxation (credited)/charged
(27,075)
5,982
Finance costs
304,297
190,780
Investment income
(146)
(25,693)
Gain on disposal of tangible fixed assets
(13,641)
-
Amortisation and impairment of intangible assets
(66,289)
(85,492)
Depreciation and impairment of tangible fixed assets
133,474
129,064
Decrease in provisions
-
(420,000)
Movements in working capital:
Increase in stocks
(335,721)
(302,704)
Increase in debtors
(138,573)
(225,279)
(Decrease)/increase in creditors
(235,652)
644,322
Cash (absorbed by)/generated from operations
(430,421)
108,987
BATCHELORS MOTOR GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 33 -
28
Analysis of changes in net debt - group
1 January 2023
Cash flows
Market value movements
31 December 2023
£
£
£
£
Cash at bank and in hand
58,187
(44,707)
-
13,480
Bank overdrafts
(97,428)
(60,919)
-
(158,347)
(39,241)
(105,626)
-
(144,867)
Borrowings excluding overdrafts
(3,919,130)
(836,140)
(3,915)
(4,759,185)
Obligations under finance leases
(186,963)
46,425
-
(140,538)
(4,145,334)
(895,341)
(3,915)
(5,044,590)
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