IRIS Accounts Production v24.1.4.33 03698373 Board of Directors 1.1.23 31.12.23 31.12.23 The principal activity of the company in the year is that of a franchised motor dealer. true false true true false false false true true false Ordinary 1.00000 Ordinary 1.00000 iso4217:GBPiso4217:USDiso4217:EURxbrli:sharesxbrli:pureutr:tonnesutr:kWh036983732022-12-31036983732023-12-31036983732023-01-012023-12-31036983732021-12-31036983732022-01-012022-12-31036983732022-12-3103698373ns15:EnglandWales2023-01-012023-12-3103698373ns14:PoundSterling2023-01-012023-12-3103698373ns10:Director12023-01-012023-12-3103698373ns10:PrivateLimitedCompanyLtd2023-01-012023-12-3103698373ns10:FRS1022023-01-012023-12-3103698373ns10:Audited2023-01-012023-12-3103698373ns10:LargeMedium-sizedCompaniesRegimeForDirectorsReport2023-01-012023-12-3103698373ns10:LargeMedium-sizedCompaniesRegimeForAccounts2023-01-012023-12-3103698373ns10:FullAccounts2023-01-012023-12-310369837312023-01-012023-12-3103698373ns10:OrdinaryShareClass12023-01-012023-12-3103698373ns10:Director22023-01-012023-12-3103698373ns10:Director32023-01-012023-12-3103698373ns10:CompanySecretary12023-01-012023-12-3103698373ns10:RegisteredOffice2023-01-012023-12-3103698373ns5:RetainedEarningsAccumulatedLosses2022-12-3103698373ns5:RetainedEarningsAccumulatedLosses2021-12-3103698373ns5:RetainedEarningsAccumulatedLosses2023-12-3103698373ns5:RetainedEarningsAccumulatedLosses2022-12-3103698373ns5:CurrentFinancialInstruments2023-12-3103698373ns5:CurrentFinancialInstruments2022-12-3103698373ns5:Non-currentFinancialInstruments2023-12-3103698373ns5:Non-currentFinancialInstruments2022-12-3103698373ns5:ShareCapital2023-12-3103698373ns5:ShareCapital2022-12-3103698373ns5:IntangibleAssetsOtherThanGoodwill2023-01-012023-12-3103698373ns5:ReportableOperatingSegment12023-01-012023-12-3103698373ns5:ReportableOperatingSegment12022-01-012022-12-3103698373ns5:ReportableOperatingSegment22023-01-012023-12-3103698373ns5:ReportableOperatingSegment22022-01-012022-12-3103698373ns5:TotalReportableOperatingSegmentsIncludingAnyUnallocatedAmount2023-01-012023-12-3103698373ns5:TotalReportableOperatingSegmentsIncludingAnyUnallocatedAmount2022-01-012022-12-3103698373ns10:HighestPaidDirector2023-01-012023-12-3103698373ns10:HighestPaidDirector2022-01-012022-12-3103698373ns5:OwnedAssets2023-01-012023-12-3103698373ns5:OwnedAssets2022-01-012022-12-310369837312023-01-012023-12-310369837312022-01-012022-12-310369837322023-01-012023-12-310369837322022-01-012022-12-3103698373ns5:ComputerSoftware2022-12-3103698373ns5:ComputerSoftware2023-12-3103698373ns5:ComputerSoftware2022-12-3103698373ns5:LandBuildings2022-12-3103698373ns5:PlantMachinery2022-12-3103698373ns5:FurnitureFittings2022-12-3103698373ns5:ComputerEquipment2022-12-3103698373ns5:LandBuildings2023-01-012023-12-3103698373ns5:PlantMachinery2023-01-012023-12-3103698373ns5:FurnitureFittings2023-01-012023-12-3103698373ns5:ComputerEquipment2023-01-012023-12-3103698373ns5:LandBuildings2023-12-3103698373ns5:PlantMachinery2023-12-3103698373ns5:FurnitureFittings2023-12-3103698373ns5:ComputerEquipment2023-12-3103698373ns5:LandBuildings2022-12-3103698373ns5:PlantMachinery2022-12-3103698373ns5:FurnitureFittings2022-12-3103698373ns5:ComputerEquipment2022-12-3103698373ns5:CurrentFinancialInstrumentsns5:WithinOneYear2023-12-3103698373ns5:CurrentFinancialInstrumentsns5:WithinOneYear2022-12-3103698373ns5:CurrentFinancialInstrumentsns5:FinanceLeasesns5:WithinOneYear2023-12-3103698373ns5:CurrentFinancialInstrumentsns5:FinanceLeasesns5:WithinOneYear2022-12-3103698373ns5:BetweenOneFiveYearsns5:FinanceLeases2023-12-3103698373ns5:BetweenOneFiveYearsns5:FinanceLeases2022-12-3103698373ns5:FinanceLeases2023-12-3103698373ns5:FinanceLeases2022-12-3103698373ns5:DeferredTaxation2022-12-3103698373ns5:DeferredTaxation2023-01-012023-12-3103698373ns5:DeferredTaxation2023-12-3103698373ns10:OrdinaryShareClass12023-12-31
REGISTERED NUMBER: 03698373 (England and Wales)















STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

FOR

PINKSTONE CARS LIMITED

PINKSTONE CARS LIMITED (REGISTERED NUMBER: 03698373)

CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023










Page

Company Information 1

Strategic Report 2 to 3

Report of the Directors 4 to 5

Report of the Independent Auditors 6 to 9

Statement of Income and Retained Earnings 10

Statement of Financial Position 11

Notes to the Financial Statements 12 to 22


PINKSTONE CARS LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31 DECEMBER 2023







DIRECTORS: S N Pinkstone
N E Pinkstone
I C Frost



SECRETARY: I C Frost



REGISTERED OFFICE: Stanley Matthews Way
Trentham Lakes
Stoke On Trent
Staffordshire
ST4 4DD



REGISTERED NUMBER: 03698373 (England and Wales)



AUDITORS: DPC Accountants Ltd
Chartered accountants & statutory auditors
Stone House
Stone Road Business Park
Stoke-On-Trent
ST4 6SR



BANKERS: HSBC UK Bank PLC
Crown Bank
Hanley
Stoke-on-Trent
Staffordshire
ST1 1DA

PINKSTONE CARS LIMITED (REGISTERED NUMBER: 03698373)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023


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

The principal activity of the company in the year is that of a franchised motor dealer.

REVIEW OF BUSINESS
The profit for the year before taxation was £750,861 (2022: £1,958,442).

Interim dividends of £nil have been paid in 2023 (2022: £nil).

The company's turnover increased in the financial year across the board with another strong increase in Used Vehicle Sales. We did continue to benefit from favourable market conditions with regard to Used Vehicle Sales although the market did see a correction in prices causing a difficult final quarter. We also saw an increase in New Vehicle Sales too as a result of better vehicle supply. These favourable conditions had a positive effect on our Service and Parts departments too.

Overall turnover increased by £9.1m to £75.9m from £66.8m.

Impacted by the Used Vehicle price correction in the final quarter, the company gross profit dropped slightly by £0.2m to £8.0m from £8.2m.

Selling and distribution costs were managed effectively however they did increase resulting in profit before taxation this year of £0.75m compared to £1.96m in the prior year.

Net assets of the company increased due to the increase in profitability and focus has been maintained to ensure a continuing healthy trading position with all financial obligations met.

PRINCIPAL RISKS AND UNCERTAINTIES
The management of the business and the nature of the company's strategy are subject to a number of risks. As with many businesses of our size and nature, the business environment in which we operate continues to be challenging. In particular, the vehicle market in the UK is highly competitive and margins continue to be tight. Ultimately levels of business activity will be dependent on factors such as economic cycles consumer confidence, consumer's overall level of disposable income, growth of the economy and product cycles with our Franchise partners.

Manufacturers supply of new and improved products
The company is reliant on new vehicle products and supply from its Manufacturer Partners. This exposes the company to risks in a number of areas as the company is dependent on its manufacturer/supplier in respect of:

- Availability of new vehicle products
- Quality of new vehicle products
- Pricing of new vehicle products

The directors are confident that future new products from its manufacturer/supplier will continue to be competitively priced and high quality and therefore consider that this "manufacturer risk" is minimal.

Economic downturn
The success of the business is reliant on consumer spending. An economic downturn, resulting in a reduction of consumer spending power, will have a direct impact on the income achieved by the company. In response to this risk, management aim to keep abreast of economic conditions. In cases of severe economic downturn, marketing and pricing strategies are modified to reflect the new market conditions.


PINKSTONE CARS LIMITED (REGISTERED NUMBER: 03698373)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

KEY PERFORMANCE INDICATORS
The company has established key performance indicators to measure the progress of the company in achieving both its business objectives and strategy. The management team reviews performance against these measures on a regular basis.

The company's key financial indicators during the year are as follows:

2023 2022
Turnover £75,935,278 £66,830,254
Operating profit £716,510 £1,961,552
Operating profit return on turnover 0.94% 2.94%
Profit before taxation £750,861 £1,958,442
Net assets £8,121,434 £7,561,644

FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
The company uses various financial instruments which include stocking loans, cash and various items, such as consignment stock, trade debtors and trade creditors that arise directly from operations. The main purpose of these financial instruments is to raise finance for the company's operations. Their existence exposes the company to a number of financial risks.

The main risks arising from the company's financial instruments are price risk, interest rate risk, liquidity risk and cash flow risk. The directors review and agree policies for managing each of these risks which are summarised below. These policies have remained unchanged.

Price
Toyota, Lexus and MG continue to produce vehicles to be sold in a very competitive market, however prices and bonus structures are constantly reviewed and revised throughout the year to remain competitive.

Interest rate risk
The company finances its operations through a mixture of its own cash liquidity and other external borrowings. The company's exposure to interest rate fluctuations on its borrowings is managed by the use of floating facilities.

The company policy throughout the year has been to achieve its objective of managing interest rate risk through day to day involvement of management in business decisions rather than through setting maximum or minimum levels for the level of fixed interest rate borrowings

Liquidity and cashflows
It is the policy of the company to minimise levels of funding and maximise liquidity. The company finances its longer-term activities with loans and finance leases from the funding departments of its manufacturers. The company uses its cash liquidity for day to day transactions and invests surpluses for higher rates of return.

FUTURE DEVELOPMENTS
The company will continue to benchmark itself against its peers to ensure achievement of its future goals.

The company continues to trade profitably, is well funded and will continue to capitalise on new business opportunities as they arise.

ON BEHALF OF THE BOARD:





S N Pinkstone - Director


31 July 2024

PINKSTONE CARS LIMITED (REGISTERED NUMBER: 03698373)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 DECEMBER 2023


The directors present their report with the financial statements of the company for the year ended 31 December 2023.

DIVIDENDS
There were no dividends paid in the year.

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

S N Pinkstone
N E Pinkstone
I C Frost

DISCLOSURE IN THE STRATEGIC REPORT
The company has chosen in accordance with section 414C(11) of the Companies Act 2006 (Strategic
Report and Directors' Report) Regulations 2013 to set out in the company's strategic report information
required by schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports)
Regulations 2008 including future developments of the company.

The strategic report can be found on page 2 of these financial statements.

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

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

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

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

PINKSTONE CARS LIMITED (REGISTERED NUMBER: 03698373)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 DECEMBER 2023


STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

ON BEHALF OF THE BOARD:



S N Pinkstone - Director


31 July 2024

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
PINKSTONE CARS LIMITED


Opinion
We have audited the financial statements of Pinkstone Cars Limited (the 'company') for the year ended 31 December 2023 which comprise the Statement of Income and Retained Earnings, Statement of Financial Position 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 company's affairs as at 31 December 2023 and of its profit for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
PINKSTONE CARS LIMITED


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

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

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

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

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
PINKSTONE CARS LIMITED


Auditors' responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit
evidence that is sufficient and appropriate to provide a basis for our opinion.

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

the nature of the industry and sector, control environment and business performance including the design of the company remuneration policies, key drivers for directors' remuneration, bonus levels and performance targets;
results of our enquiries of management about their own identification and assessment of the risks of irregularities;
any matters we identified having obtained and reviewed the company documentation of their policies and procedures relating to:
- identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of noncompliance;
- detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud;
- the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations;
the matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.

Based on this approach, we were able to assess the company risks and ensure the risks were considered throughout all areas of audit testing. The audit team was professionally sceptical throughout the audit and remained alert for inaccurate or misleading information.

Audit response to risks identified

As a result of performing the above, we did not identify any key audit matters related to the potential risk of
fraud or irregularities. Our procedures to respond to risks identified included the following:

• reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;
• enquiring of management concerning actual and potential litigation and claims;
• performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;
• obtaining an understanding of provisions and held discussions with management to understand the basis of recognition or non-recognition of tax provisions; and
• in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.


REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
PINKSTONE CARS LIMITED

Audit testing was completed on a targeted sample basis based on our assessment of risk and materiality. Due to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing fraud or non-compliance with laws and regulations and cannot be expected to detect all fraud and non-compliance with laws and regulations.

As part of an audit in accordance with ISAs (UK), we exercise professional judgement and maintain professional scepticism throughout the audit. We also:
- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company's internal control.
- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.
- Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our Report of the Auditors to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our Report of the Auditors. However, future events or conditions may cause the company to cease to continue as a going concern.
- Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Use of our report
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters 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.




Helen Tidyman (Senior Statutory Auditor)
for and on behalf of DPC Accountants Ltd
Chartered accountants & statutory auditors
Stone House
Stone Road Business Park
Stoke-On-Trent
ST4 6SR

31 July 2024

PINKSTONE CARS LIMITED (REGISTERED NUMBER: 03698373)

STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 DECEMBER 2023

31.12.23 31.12.22
as restated
Notes £    £   

REVENUE 3 75,935,278 66,830,254

Cost of sales (67,933,011 ) (58,646,839 )
GROSS PROFIT 8,002,267 8,183,415

Administrative expenses (7,288,757 ) (6,221,863 )
713,510 1,961,552

Other operating income 3,000 -
OPERATING PROFIT 5 716,510 1,961,552

Interest receivable and similar income 38,778 3,939
755,288 1,965,491

Interest payable and similar expenses 6 (4,427 ) (7,049 )
PROFIT BEFORE TAXATION 750,861 1,958,442

Tax on profit 7 (191,071 ) (400,920 )
PROFIT FOR THE FINANCIAL YEAR 559,790 1,557,522

Retained earnings at beginning of year 7,226,644 5,669,122

RETAINED EARNINGS AT END OF
YEAR

7,786,434

7,226,644

PINKSTONE CARS LIMITED (REGISTERED NUMBER: 03698373)

STATEMENT OF FINANCIAL POSITION
31 DECEMBER 2023

31.12.23 31.12.22
as restated
Notes £    £   
FIXED ASSETS
Intangible assets 9 - -
Property, plant and equipment 10 3,231,448 3,347,868
3,231,448 3,347,868

CURRENT ASSETS
Inventories 11 6,507,464 7,450,633
Debtors 12 2,605,432 2,100,469
Cash at bank 2,796,237 425,883
11,909,133 9,976,985
CREDITORS
Amounts falling due within one year 13 (7,017,011 ) (5,748,451 )
NET CURRENT ASSETS 4,892,122 4,228,534
TOTAL ASSETS LESS CURRENT
LIABILITIES

8,123,570

7,576,402

CREDITORS
Amounts falling due after more than one
year

14

-

(12,054

)

PROVISIONS FOR LIABILITIES 17 (2,136 ) (2,704 )
NET ASSETS 8,121,434 7,561,644

CAPITAL AND RESERVES
Called up share capital 18 335,000 335,000
Retained earnings 19 7,786,434 7,226,644
SHAREHOLDERS' FUNDS 8,121,434 7,561,644

The financial statements were approved by the Board of Directors and authorised for issue on 31 July 2024 and were signed on its behalf by:





S N Pinkstone - Director


PINKSTONE CARS LIMITED (REGISTERED NUMBER: 03698373)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023


1. STATUTORY INFORMATION

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

The presentation currency of the financial statements is the Pound Sterling (£).


The principal activity of the company in the year is that of a franchised motor dealer.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The accounts have been prepared under the going concern basis.

Financial Reporting Standard 102 - reduced disclosure exemptions
The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

the requirements of Section 7 Statement of Cash Flows;
the requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and
11.48(c);
the requirement of paragraph 33.7.

Significant judgements and estimates
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Judgements

The judgements (apart from those involving estimations) that management has made in the process of applying the entity's accounting policies and that have the most significant effect on the amounts recognised in the financial statements are set out in the policies below.

Key sources of estimation uncertainty

Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. The key assumptions and other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are as follows:

In recognising consignment stock, management makes judgements as to whether substantially all of the principal benefits and inherent risks rest with the Company.

Depreciation of tangible and intangible fixed assets has been based on estimated useful lives and residual values deemed appropriate by the directors. Estimated useful lives and residual values are reviewed annually and revised as appropriate. Revisions take into account estimated useful lives used by other companies operating in the sector and actual asset lives and residual values, as evidenced by disposals during the current and prior accounting periods.

PINKSTONE CARS LIMITED (REGISTERED NUMBER: 03698373)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


2. ACCOUNTING POLICIES - continued

Revenue recognition
Revenue is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Sale of goods
Turnover is recognised when it and the associated costs can be measured reliably, future economic benefits are probable, and the risks and rewards of ownership have been transferred to the customer. Sales of vehicles and parts are recognised when goods are delivered and legal title has passed and the Company has no continuing managerial involvement associated with ownership or effective control of the goods sold. This is generally when goods have been checked and accepted by the customer on delivery at the specified location.

Sale of services
Turnover from contracts for the provision of vehicle services is recognised on completion of the service being performed.

Intangible assets
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Computer software is being amortised at a rate of 33.33% straight line.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life.

Freehold property-2% straight line
Plant and machinery-20 - 50% straight line
Fixtures and fittings-3 - 7 years straight line
Computer equipment-25 - 33.3% straight line

No depreciation is provided on freehold land.

Residual value is calculated on prices prevailing at the reporting date, after estimated costs of disposal, for the asset as if it were at the age and in the condition expected at the end of its useful life.

Land and buildings are accounted for separately even when acquired together.

Stocks
Stocks are stated at the lower of cost and net realisable value. Cost is determined on an actual basis in respect of new vehicles, on a net realisable basis in respect of used vehicles and on a first in, first out basis in respect of other stocks.

Vehicles on consignment are included in stock when substantially all of the principal benefits and inherent risks rest with the company. The corresponding liability is included within creditors.

At each reporting date, the company assesses whether stocks are impaired or if an impairment loss recognised in prior periods has reversed. Any excess of the carrying amount of stock 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.

PINKSTONE CARS LIMITED (REGISTERED NUMBER: 03698373)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


2. ACCOUNTING POLICIES - continued

Financial instruments
A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument.

Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Debt instruments are subsequently measured at amortised cost.

Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately.

For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics.

Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.

Where the contractual obligations of financial instruments (including share capital) are equivalent to a similar debt instrument, those financial instruments are classed as financial liabilities. Financial liabilities are presented as such in the balance sheet. Finance costs and gains or losses relating to financial liabilities are included in the profit and loss account. Finance costs are calculated so as to produce a constant rate of return on the outstanding liability.

Where the contractual terms of share capital do not have any terms meeting the definition of a financial liability then this is classed as an equity instrument. Dividends and distributions relating to equity instruments are debited direct to equity.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date.

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.

PINKSTONE CARS LIMITED (REGISTERED NUMBER: 03698373)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


2. ACCOUNTING POLICIES - continued

Hire purchase and leasing commitments
An asset and corresponding liability are recognised for leasing agreements that transfer to the company substantially all of the risks and rewards incidental to ownership ("finance leases"). The amount capitalised is the fair value of the leased asset or, if lower, the present value of the minimum lease payments payable during the lease term, both determined at the inception of the lease. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit and loss so as to produce a constant perodic rate of interest on the remaining balance of the liability.

All other leases are operating leases and the annual rentals are charged to profit and loss on a straight line basis over the lease term.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Government grants
Government grants are recognised using the accrual model.

Under the accrual model, government grants relating to revenue are recognised on a systematic basis over the periods in which the company recognises the related costs for which the grant is intended to compensate. Grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs are recognised in income in the period in which is becomes receivable.

Employee benefits
The company provides a range of benefits to employees.

Short term benefits, including holiday pay, are recognised as an expenses in the profit and loss account in the period in which they are incurred.

3. REVENUE

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

An analysis of revenue by class of business is given below:

31.12.23 31.12.22
as restated
£    £   
Sale of goods 73,868,451 65,062,944
Sale of services 2,066,827 1,767,310
75,935,278 66,830,254

PINKSTONE CARS LIMITED (REGISTERED NUMBER: 03698373)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


4. EMPLOYEES AND DIRECTORS
31.12.23 31.12.22
as restated
£    £   
Wages and salaries 3,458,522 2,977,731
Social security costs 454,054 392,605
Other pension costs 106,879 149,515
4,019,455 3,519,851

The average number of employees during the year was as follows:
31.12.23 31.12.22
as restated

Vehicle sales 51 54
Parts and service 41 34
Office and management 12 14
104 102

31.12.23 31.12.22
as restated
£    £   
Directors' remuneration 358,688 351,029

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

Money purchase schemes 2 2

Information regarding the highest paid director is as follows:
31.12.23 31.12.22
as restated
£    £   
Emoluments etc 250,000 250,000

In addition to the directors remuneration above, the directors received additional benefits of £44,228 (2022: £81,609).

PINKSTONE CARS LIMITED (REGISTERED NUMBER: 03698373)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


5. OPERATING PROFIT

The operating profit is stated after charging:

31.12.23 31.12.22
as restated
£    £   
Other operating leases 100,000 87,000
Depreciation - owned assets 162,429 146,481
Auditors' remuneration 16,590 14,850

6. INTEREST PAYABLE AND SIMILAR EXPENSES
31.12.23 31.12.22
as restated
£    £   
Stock finance interest 4,427 6,631
Other interest - 418
4,427 7,049

7. 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 191,639 400,451

Deferred tax (568 ) 469
Tax on profit 191,071 400,920

PINKSTONE CARS LIMITED (REGISTERED NUMBER: 03698373)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


7. TAXATION - continued

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 750,861 1,958,442
Profit multiplied by the standard rate of corporation tax in the UK of
23.500% (2022 - 19%)

176,452

372,104

Effects of:
Expenses not deductible for tax purposes (10,575 ) 15,218
Depreciation in excess of capital allowances 25,762 13,129
Adjustment for future changes in tax rate (559 ) 469
Over under provision of tax (9 ) -
Total tax charge 191,071 400,920

8. PRIOR YEAR ADJUSTMENT

The accounts have been restated to remove internal sales and services.

Summary of prior year accounting impact


£
Decrease in sales 4,693,500
Decrease in cost of sales 4,693,500

9. INTANGIBLE FIXED ASSETS
Computer
software
£   
COST
At 1 January 2023
and 31 December 2023 72,416
AMORTISATION
At 1 January 2023
and 31 December 2023 72,416
NET BOOK VALUE
At 31 December 2023 -
At 31 December 2022 -

PINKSTONE CARS LIMITED (REGISTERED NUMBER: 03698373)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


10. PROPERTY, PLANT AND EQUIPMENT
Fixtures
Freehold Plant and and Computer
property machinery fittings equipment Totals
£    £    £    £    £   
COST
At 1 January 2023 4,479,208 195,115 598,639 171,564 5,444,526
Additions - 4,319 22,744 18,946 46,009
At 31 December 2023 4,479,208 199,434 621,383 190,510 5,490,535
DEPRECIATION
At 1 January 2023 1,282,753 156,310 506,029 151,566 2,096,658
Charge for year 63,994 16,363 67,134 14,938 162,429
At 31 December 2023 1,346,747 172,673 573,163 166,504 2,259,087
NET BOOK VALUE
At 31 December 2023 3,132,461 26,761 48,220 24,006 3,231,448
At 31 December 2022 3,196,455 38,805 92,610 19,998 3,347,868

Included within freehold property is freehold land carried at £1,050,000 (2022: £1,050,000) which is not depreciated.

Included within the assets above are assets held under finance lease contracts as follows:

Fixtures and fittings: £6,027 (2022: £42,189)

11. INVENTORIES
31.12.23 31.12.22
as restated
£    £   
Stocks 6,507,464 7,450,633

12. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.12.23 31.12.22
as restated
£    £   
Trade debtors 1,450,886 829,755
Other debtors 436,310 853,476
VAT 219,350 96,203
Prepayments 498,886 321,035
2,605,432 2,100,469

PINKSTONE CARS LIMITED (REGISTERED NUMBER: 03698373)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.12.23 31.12.22
as restated
£    £   
Finance leases (see note 15) 12,054 36,162
Payments on account 317,237 437,259
Trade creditors 4,346,571 3,001,221
Tax 95,358 267,173
Social security and other taxes 83,445 80,602
Other creditors 86,610 12,389
Accruals and deferred income 2,075,736 1,913,645
7,017,011 5,748,451

14. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
31.12.23 31.12.22
as restated
£    £   
Finance leases (see note 15) - 12,054

15. LEASING AGREEMENTS

Minimum lease payments under finance leases fall due as follows:

Finance leases
31.12.23 31.12.22
as restated
£    £   
Net obligations repayable:
Within one year 12,054 36,162
Between one and five years - 12,054
12,054 48,216

16. SECURED DEBTS

The following secured debts are included within creditors:

31.12.23 31.12.22
as restated
£    £   
Finance leases 12,054 48,216

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

A legal charge is held, incorporating a fixed and floating charge over the freehold land compromising Plot A and Plot B off Gordon Banks Drive, Trentham Lakes dated 9 November 2007.

PINKSTONE CARS LIMITED (REGISTERED NUMBER: 03698373)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


17. PROVISIONS FOR LIABILITIES
31.12.23 31.12.22
as restated
£    £   
Deferred tax 2,136 2,704

Deferred
tax
£   
Balance at 1 January 2023 2,704
Credit to Income Statement during year (568 )
Balance at 31 December 2023 2,136

18. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 31.12.23 31.12.22
value: as
restated
£    £   
335,000 Ordinary £1 335,000 335,000

19. RESERVES

The retained earnings for the company represents the accumulated profits less accumulated losses and distributions up to the reporting date. This is a distributable reserve.

20. ULTIMATE PARENT COMPANY

The company is a wholly owned subsidiary undertaking of Pinkstone Retail Limited. The smallest and largest Group which consolidated accounts are prepared are in the Group headed by Pinkstone Retail Limited. Copies of the accounts can be obtained from The Registrar of Companies. The registered office of the parent undertaking is: 499 Newcastle Road Trent Vale, Stoke On Trent, Staffordshire,
ST4 6PJ.

Pinkstone Retail Limited is under the joint control of Mr N E Pinkstone and Mr S N Pinkstone.

21. CAPITAL COMMITMENTS
31.12.23 31.12.22
as restated
£    £   
Contracted but not provided for in the
financial statements 44,845 -

PINKSTONE CARS LIMITED (REGISTERED NUMBER: 03698373)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


22. 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.

The key personnel of the Company are the directors. Directors' remuneration is disclosed in note 4 of the financial statements.

All transactions undertaken with the directors are deemed to be conducted under normal market
conditions and/or are not material.