Acorah Software Products - Accounts Production 15.0.600 false true 31 January 2023 1 February 2022 false 24 September 2024 true 1 February 2023 31 January 2024 31 January 2024 07795271 Mr A J O'Shea Mr A M O'Shea Mrs R M O'Shea P T Nichols iso4217:GBP iso4217:EUR iso4217:USD xbrli:shares xbrli:pure xbrli:pure 07795271 frs-core:CurrentFinancialInstruments frs-core:WithinOneYear 2023-01-31 07795271 frs-core:CurrentFinancialInstruments frs-core:WithinOneYear 2024-01-31 07795271 2023-01-31 07795271 2024-01-31 07795271 2023-02-01 2024-01-31 07795271 frs-core:CurrentFinancialInstruments 2024-01-31 07795271 frs-core:Non-currentFinancialInstruments 2024-01-31 07795271 frs-core:ComputerEquipment 2024-01-31 07795271 frs-core:ComputerEquipment 2023-02-01 2024-01-31 07795271 frs-core:ComputerEquipment 2023-01-31 07795271 frs-core:LandBuildings frs-core:LeasedAssetsHeldAsLessee 2024-01-31 07795271 frs-core:LandBuildings frs-core:LeasedAssetsHeldAsLessee 2023-02-01 2024-01-31 07795271 frs-core:LandBuildings frs-core:LeasedAssetsHeldAsLessee 2023-01-31 07795271 frs-core:LandBuildings frs-core:OwnedOrFreeholdAssets 2024-01-31 07795271 frs-core:LandBuildings frs-core:OwnedOrFreeholdAssets 2023-02-01 2024-01-31 07795271 frs-core:LandBuildings frs-core:OwnedOrFreeholdAssets 2023-01-31 07795271 frs-core:MotorVehicles 2024-01-31 07795271 frs-core:MotorVehicles 2023-02-01 2024-01-31 07795271 frs-core:MotorVehicles 2023-01-31 07795271 frs-core:PlantMachinery 2024-01-31 07795271 frs-core:PlantMachinery 2023-02-01 2024-01-31 07795271 frs-core:PlantMachinery 2023-01-31 07795271 frs-core:CapitalRedemptionReserve 2023-02-01 2024-01-31 07795271 frs-core:CapitalRedemptionReserve 2024-01-31 07795271 frs-core:OtherReservesSubtotal 2023-02-01 2024-01-31 07795271 frs-core:OtherReservesSubtotal 2024-01-31 07795271 frs-core:ShareCapital 2023-02-01 2024-01-31 07795271 frs-core:ShareCapital 2024-01-31 07795271 frs-core:RetainedEarningsAccumulatedLosses 2023-02-01 2024-01-31 07795271 frs-core:RetainedEarningsAccumulatedLosses 2024-01-31 07795271 frs-bus:PrivateLimitedCompanyLtd 2023-02-01 2024-01-31 07795271 frs-bus:FullAccounts 2023-02-01 2024-01-31 07795271 frs-bus:MediumEntities 2023-02-01 2024-01-31 07795271 frs-bus:Audited 2023-02-01 2024-01-31 07795271 frs-bus:Medium-sizedCompaniesRegimeForAccounts 2023-02-01 2024-01-31 07795271 frs-bus:Medium-sizedCompaniesRegimeForDirectorsReport 2023-02-01 2024-01-31 07795271 frs-core:DeferredTaxation 2023-02-01 2024-01-31 07795271 frs-core:DeferredTaxation 2023-01-31 07795271 frs-core:DeferredTaxation 2024-01-31 07795271 frs-bus:Director1 2023-02-01 2024-01-31 07795271 frs-bus:Director2 2023-02-01 2024-01-31 07795271 frs-bus:Director3 2023-02-01 2024-01-31 07795271 frs-bus:CompanySecretary1 2023-02-01 2024-01-31 07795271 1 2023-02-01 2024-01-31 07795271 1 2023-02-01 2024-01-31 07795271 frs-countries:EnglandWales 2023-02-01 2024-01-31 07795271 2022-01-31 07795271 2023-01-31 07795271 2022-02-01 2023-01-31 07795271 frs-core:CurrentFinancialInstruments 2023-01-31 07795271 frs-core:Non-currentFinancialInstruments 2023-01-31 07795271 frs-core:CapitalRedemptionReserve 2022-01-31 07795271 frs-core:CapitalRedemptionReserve 2023-01-31 07795271 frs-core:OtherReservesSubtotal 2022-01-31 07795271 frs-core:OtherReservesSubtotal 2023-01-31 07795271 frs-core:ShareCapital 2022-01-31 07795271 frs-core:ShareCapital 2023-01-31 07795271 frs-core:RetainedEarningsAccumulatedLosses 2022-02-01 2023-01-31 07795271 frs-core:RetainedEarningsAccumulatedLosses frs-core:PreviouslyStatedAmount 2022-01-31 07795271 frs-core:RetainedEarningsAccumulatedLosses 2023-01-31 07795271 1 2022-02-01 2023-01-31
Registered number: 07795271
Boongate Kia Limited
Strategic Report, Directors' Report and
Financial Statements
For The Year Ended 31 January 2024
Contents
Page
Strategic Report 1—2
Directors' Report 3—4
Independent Auditor's Report 5—8
Income Statement 9
Statement of Financial Position 10
Statement of Changes in Equity 11
Statement of Cash Flows 12
Notes to the Statement of Cash Flows 13
Notes to the Financial Statements 14—21
Page 1
Strategic Report
The directors present their strategic report for the year ended 31 January 2024.
Review of the Business
The year ended 31 January 2024 was another successful and profitable year for Boongate Kia. Total turnover increased by 11.5%, with associated gross profit increasing 4.5%. 
Demand for our brand's new cars was strong and registrations were up by 11.6% versus year end 2023.
In the first 6 months of the year used car demand was very strong, and sales increased slightly, however performance was somewhat hindered by short supply. Conditions in the second half of the year were more difficult, whilst prices held firm at the start of the year they declined sharply at the end. This is reflected in the overall profit of used cars.
Aftersales Departments increased turnover by 22.9%, reflecting the increase in the Kia car parc and we are confident there is further demand and opportunity to be realized. 
Inflationary pressures were felt in our operating and administration expenses, increasing 7.2%. However, we are not alone with this challenge and with strong turnover and gross profit, the business maintained a positive return on sales and net profit before tax.
Principal Risks and Uncertainties
The management of the company and the execution of the company and group's strategy are subject to any or all of the following risks and uncertainties:-
Franchise financial stability
The company relies on its franchised motor car dealership. Without a franchise we may be unable to source new car stock or perform service warranty repairs. We have no issues with KIA as our brand partner and they have a very healthy business operation in the UK.
Competition
The retail motor trade is highly competitive and comprises of a number of large dealer networks and independent
retailers. In addition, the aftersales market comprises of similar franchised businesses, supply and fit chains, and a large number of small independent garages and bodyshops. The company therefore offers customers different options depending upon price and quality of service they wish to take; our aftersales business is reliant on our customer service and the ability to adjust pricing in reaction to local competitive conditions.
Human resources and employees
The company's success depends to a large extent upon the effort and abilities of senior management and key employees. Further, our business is dependent upon our ability to continue to attract and retain skilled personnel.
Legislation
A number of regulations affect our business of selling, financing and servicing cars, such as those set out by the
Financial Conduct Authority. Non-compliance can lead to fines or suspension from arranging finance or general insurance products.
Stock value risk
The company  is exposed, as are all businesses in this industry, to the risk of the value of its stock in trade falling due to general economic or industry specific factors, although currently stock values are not falling due to high demand. 
The directors mitigate this risk through a two-fold policy of ensuring the company only carries stock of a suitable profile and price range that is appropriately aged, and by providing for any fall in value through the Income Statement.
General economic conditions
The general economic environment and levels of consumer and business confidence have a direct impact on levels of
demand in the motor retail sector. However the risk has been lessened in recent months with falls in inflation and interest rates.
Page 1
Page 2
Key Performance Indicators ("KPIs")
The directors use the following KPIs:-
2024
2023
Turnover growth
11.5%
5.9%
Gross profit margin
9.3%
10%
Net profit margin
1.8%
2.2%
On behalf of the board
Mr A J O'Shea
Director
24th September 2024
Page 2
Page 3
Directors' Report
The directors present their report and the financial statements for the year ended 31 January 2024.
Principal Activity
The company's principal activity continues to be that of a motor dealership involving the sale, mauntenance and repair of motor vehicles and the supply of related accessories.
Dividends
The value of dividends paid amounted to £101,240 .
The directors recommended a final dividend of £NIL .
Financial Instruments
The company uses various financial instruments, other than derivatives, which include bank, financial institution and
stocking loans, cash and various items, such as 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 significant risks arising from the company's financial
instruments are interest rate risk, liquidity risk, and credit risk.
The directors review and agree policies for the management of each of these risks which are noted below. 
INTEREST RATE RISK
The company sometimes uses stocking loans to finance its operations during peak periods. The Bank of
England base rates were high throughout 2022 - 2024 but have recently fallen to 5% and are expected to fall further in the near future. So we would expect a decrease in the company's interest payments on its variable rate loans tracked to that rate.
LIQUIDITY RISK
The company seeks to manage risk by ensuring sufficient liquidity is available to meet foreseeable needs and to invest cash and assets safely and profitably. The company's policy throughout the year has been to achieve this objective through the day to day involvement of management in business decisions rather than through setting maximum or minimum liquidity ratios.
CREDIT RISK
The company's principal financial assets are cash and trade debtors. The credit risk associated with the cash is minimal as the Nat West Bank has a high credit ratings assigned by international credit-rating agencies. The principal credit risk therefore arises from its trade debtors.
In order to manage credit risk, the directors have implemented processes to ensure receipt of cleared funds for vehicle sales before the vehicle is released. Other trade debtors require an approved credit limit in advance. The directors set credit limits for customers based on a combination of payment history and third party credit references. Credit limits are reviewed by the directors on a regular basis in conjunction with debt ageing and collection history.
Directors
The directors who held office during the year were as follows:
Mr A J O'Shea
Mr A M O'Shea
Mrs R M O'Shea
Post Balance Sheet Events
See note 23 for details of post balance sheet events.
Matters covered in the Strategic Report
Disclosures required under s416(4) of the Companies Act 2006 are commented upon in the Strategic Report as the directors consider them to be of strategic importance to the business.
Page 3
Page 4
Statement of Directors' Responsibilities
The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing the financial statements the directors are required to: 
  • select suitable accounting policies and then apply them consistently;
  • make judgments 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.
The directors are responsible for the maintenance and integrity of the corporate and financial information included on the company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
Statement of Disclosure of Information to Auditors
The directors of the company who held office at the date of approval of this annual report confirm that: 
  • so far as they are aware, there is no relevant audit information of which the company's auditors are unaware; and
  • they have taken all the steps that they ought to have taken as directors in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information.
Independent Auditors
Ascendis Audit Limited will be proposed for re-appointment in accordance with section 485 of the Companies Act 2006.
On behalf of the board
Mr A J O'Shea
Director
24th September 2024
Page 4
Page 5
Independent Auditor's Report
Opinion
We have audited the financial statements of Boongate Kia Limited for the year ended 31 January 2024 which comprise the Income Statement, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and the related notes, 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 (United Kingdom Generally Accepted Accounting Practice), including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland".
In our opinion the financial statements:
  • give a true and fair view of the state of the company's affairs as at 31 January 2024 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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions Relating to Going Concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the entity's ability to continue as a going concern for a period of at least 12 months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other Information
The other information comprises the information included in the annual report, other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
  • the Directors' Report has been prepared in accordance with applicable legal requirements.
Page 5
Page 6
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 Directors' Report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
  • 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 or 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, or
  • the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the Directors' Report and from the requirement to prepare a Strategic Report.
Responsibilities of Directors
As explained more fully in the Directors' Responsibilities Statement set out on pages 3—4, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Page 6
Page 7
Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud.
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: 
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, control environment and business performance including the design of the company's remuneration policies, key drivers for directors' remuneration, bonus levels and performance targets;
- 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's 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 non-compliance, in particular in relation to the FCA;
- detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud;
- 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.
As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas: bank payment processing, payroll, sales processing, used/demo stock valuation, and credit card/cash transactions. In common with all audits under lSAs (UK), we are also required to perform specific procedures to respond to the risk of management override.
We also obtained an understanding of the legal and regulatory framework that the company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the Companies Act 2006, pensions legislation and tax legislation.
In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company's ability to operate or to avoid a material penalty. These included the company's FCA regulatory requirements.
Audit response to risks identified:-
Our procedures to respond to risks identified included the following:
- reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;
- enquiring of management concerning actual and potential litigation and claims;
- performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;
- reviewing correspondence with the FCA 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.
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. 
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Page 7
Page 8
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 that 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.
Paul Allan Byrne BA (Double Hons) FCA (Senior Statutory Auditor)
for and on behalf of Ascendis Audit Limited , Statutory Auditor
24th September 2024
Ascendis Audit Limited
Unit 3 Building 2, The Colony
Altrincham Road
Wilmslow
Cheshire
SK9 4LY
Page 8
Page 9
Income Statement
2024 2023
Notes £ £
TURNOVER 3 29,644,032 26,565,856
Cost of sales (26,880,493 ) (23,920,733 )
GROSS PROFIT 2,763,539 2,645,123
Administrative expenses (2,089,779 ) (1,948,583 )
Other operating income 2,470 -
OPERATING PROFIT 4 676,230 696,540
Profit on disposal of fixed assets 3,169 6,731
Other interest receivable and similar income 9 28,692 19,766
Interest payable and similar charges 10 (7,176 ) (9,799 )
PROFIT BEFORE TAXATION 700,915 713,238
Tax on Profit 11 (173,028 ) (137,385 )
PROFIT AFTER TAXATION BEING PROFIT FOR THE FINANCIAL YEAR 527,887 575,853
The notes on pages 13 to 21 form part of these financial statements.
Page 9
Page 10
Statement of Financial Position
Registered number: 07795271
2024 2023
Notes £ £ £ £
FIXED ASSETS
Tangible Assets 12 653,361 613,704
653,361 613,704
CURRENT ASSETS
Stocks 13 2,654,889 2,594,903
Debtors 14 1,658,017 1,585,729
Cash at bank and in hand 690,145 487,158
5,003,051 4,667,790
Creditors: Amounts Falling Due Within One Year 15 (2,518,942 ) (2,406,659 )
NET CURRENT ASSETS (LIABILITIES) 2,484,109 2,261,131
TOTAL ASSETS LESS CURRENT LIABILITIES 3,137,470 2,874,835
Creditors: Amounts Falling Due After More Than One Year 16 - (163,333 )
PROVISIONS FOR LIABILITIES
Deferred Taxation 17 (70,493 ) (71,172 )
NET ASSETS 3,066,977 2,640,330
CAPITAL AND RESERVES
Called up share capital 19 300 500
Capital redemption reserve 200 -
Other reserves 71,781 71,781
Income Statement 2,994,696 2,568,049
SHAREHOLDERS' FUNDS 3,066,977 2,640,330
On behalf of the board
Mr A J O'Shea
Director
24th September 2024
The notes on pages 13 to 21 form part of these financial statements.
Page 10
Page 11
Statement of Changes in Equity
Share Capital Capital Redemption Other reserves Income Statement Total
£ £ £ £ £
As at 1 February 2022 500 - 71,781 2,013,976 2,086,257
Profit for the year and total comprehensive income - - - 575,853 575,853
Dividends paid - - - (21,780) (21,780)
As at 31 January 2023 and 1 February 2023 500 - 71,781 2,568,049 2,640,330
Profit for the year and total comprehensive income - - - 527,887 527,887
Dividends paid - - - (101,240) (101,240)
Arising on shares issued during the period - - - - -
Purchase of own shares (200 ) 200 - - -
Share capital reduction - - - - -
As at 31 January 2024 300 200 71,781 2,994,696 3,066,977
Page 11
Page 12
Statement of Cash Flows
2024 2023
Notes £ £
Cash flows from operating activities
Net cash generated from operations 1 721,206 422,835
Interest paid (7,176 ) (9,799 )
Tax (paid)/refunded (134,008 ) 1,930
Net cash generated from operating activities 580,022 414,966
Cash flows from investing activities
Purchase of tangible assets (101,094 ) (26,542 )
Proceeds from disposal of tangible assets 15,720 20,892
Interest received 28,692 19,766
Net cash (used in)/generated from investing activities (56,682 ) 14,116
Cash flows from financing activities
Equity dividends paid (101,240 ) (21,780 )
Repayment of bank borrowings (233,333 ) (70,000 )
Repayment of other loans - (250,000)
Amount introduced by directors 14,220 -
Net cash used in financing activities (320,353 ) (341,780 )
Increase in cash and cash equivalents 202,987 87,302
Cash and cash equivalents at beginning of year 2 487,158 399,856
Cash and cash equivalents at end of year 2 690,145 487,158
Page 12
Page 13
Notes to the Statement of Cash Flows
1. Reconciliation of profit for the financial year to cash generated from operations
2024 2023
£ £
Profit for the financial year 527,887 575,853
Adjustments for:
Tax on profit 173,028 137,385
Interest expense 7,176 9,799
Interest income (28,692 ) (19,766 )
Depreciation of tangible assets 48,886 45,153
Profit on disposal of tangible assets (3,169) (6,731)
Movements in working capital:
(Increase)/decrease in stocks (59,986 ) 384,346
Increase in trade and other debtors (72,288 ) (520,555 )
Increase/(decrease) in trade and other creditors 128,364 (182,649 )
Net cash generated from operations 721,206 422,835
2. Cash and cash equivalents
Cash and cash equivalents, as stated in the Statement of Cash Flows, relates to the following items in the Balance Sheet:
2024 2023
£ £
Cash at bank and in hand 690,145 487,158
3. Analysis of changes in net funds
As at 1 February 2023 Cash flows As at 31 January 2024
£ £ £
Cash at bank and in hand 487,158 202,987 690,145
Debts falling due within one year (70,000 ) 70,000 -
Debts falling due after more than one year (163,333) 163,333 -
253,825 436,320 690,145
Page 13
Page 14
Notes to the Financial Statements
1. General Information
Boongate Kia Limited is a private company, limited by shares, incorporated in England & Wales, registered number 07795271 . The registered office is Newark Road , Peterborough, Cambridgeshire, PE1 5UA.
The principal place of business is the same as the registered office.
The principal activity of the company is that of a motor dealership, involving the sale, maintenance and repair of motor vehicies and the supply of related accessories.
The presentational currency of these financial statements is Pound Sterling (£).
Amounts in these financial statemets are rounded to the nearest £.
2. Accounting Policies
2.1. Basis of Preparation of Financial Statements
The financial statements have been prepared under the historical cost convention and in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland'' and the Companies Act 2006.
2.2. Turnover
Turnover from the sale of goods is recognised in the Income Statement, net of discounts and value added tax, when the significant risks and rewards of ownership have been transferred to the buyer. In general this occurs when vehicles or parts have been supplied or when a service has been completed.
Commission income is accounted for on a receivable basis.
2.3. Tangible Fixed Assets and Depreciation
Tangible fixed assets are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes any expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. Depreciation is provided at the following annual rates in order to write off each asset over its expected useful life:
Leasehold 4% straight line
Plant & Machinery 20% reducing balance
Motor Vehicles 25% reducing balance
Computer Equipment 20% reducing balance
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Income Statement.
2.4. Stocks and Work in Progress
Stocks and work in progress are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. 
At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in the Income Statement.
2.5. Cash and Cash Equivalents
Cash and cash equivalents are basic financial assets and include cash in hand and deposits held at call with banks, other short-term highly liquid investments that mature in no more than three months from the date of acquisition and are readily convertible to a known amount of cash with insignificant risk of change in value, and bank overdrafts.
Page 14
Page 15
2.6. Taxation
Income tax expense represents the sum of the tax currently payable and deferred tax.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the Income Statement because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The company's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.
Deferred tax is recognised on timing differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable timing differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible timing differences can be utilised. The carrying amount of deferred tax assets is reviewed at the end of each reporting period 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 assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. Deferred tax liabilities are presented within provisions for liabilities and deferred tax assets within debtors. The measurement of deferred tax liabilities and assets reflect the tax consequences that would follow from the manner in which the company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.
Current or deferred tax for the year is recognised in the Income Statement, except when they related to items that are recognised in Other Comprehensive Income or directly in Equity, in which case, the current and deferred tax is also recognised in Other Comprehensive Income or directly in Equity respectively.
3. Turnover
All turnover arose in the UK. An analysis of turnover by class of business is as follows:
2024 2023
£ £
Commission 108,640 120,974
Service 1,032,129 938,925
Vehicles, parts and accessories 28,503,263 25,505,957
29,644,032 26,565,856
4. Operating Profit
The operating profit is stated after charging:
2024 2023
£ £
Depreciation of tangible fixed assets 48,886 45,153
5. Auditor's Remuneration
Remuneration received by the company's auditors and their associates during the year was as follows:
2024 2023
£ £
Audit Services
Audit of the company's financial statements 7,700 7,400
Page 15
Page 16
6. Staff Costs
Staff costs, including directors' remuneration, were as follows:
2024 2023
£ £
Wages and salaries 1,258,067 1,177,948
Social security costs 120,685 117,887
Other pension costs 30,496 29,656
1,409,248 1,325,491
7. Average Number of Employees
Average number of employees, including directors, during the year was as follows:
2024 2023
Office and administration 39 37
Directors 3 3
42 40
8. Directors' remuneration
2024 2023
£ £
Emoluments 103,551 103,764
Company contributions to money purchase pension schemes 1,869 1,917
105,420 105,681
The number of directors to whom retirement benefits were accruing was as follows:
2024 2023
Money purchase pension schemes 2 2
9. Interest Receivable and Similar Income
2024 2023
£ £
Bank interest receivable 1,384 505
Other interest 27,308 19,261
28,692 19,766
10. Interest Payable and Similar Charges
2024 2023
£ £
Bank loans and overdrafts 7,176 9,799
Page 16
Page 17
11. Tax on Profit
The tax charge on the profit for the year was as follows:
Tax Rate 2024 2023
2024 2023 £ £
Current tax
UK Corporation Tax 24.0% 19.0% 173,707 134,008
Deferred Tax
Deferred taxation (679 ) 3,377
Total tax charge for the period 173,028 137,385
The actual charge for the year can be reconciled to the expected charge for the year based on the profit and the standard rate of corporation tax as follows:
2024 2023
£ £
Profit before tax 700,915 713,238
Tax on profit at 24% (UK standard rate) 168,220 135,515
Goodwill/depreciation not allowed for tax 11,747 8,579
Expenses not deductible for tax purposes 1,157 -
Capital allowances (6,866 ) (8,807 )
Difference in tax rates 211 -
Revenue exempt from taxation (762 ) (1,279 )
Deferred tax relating to changes in tax rates or laws (679 ) 3,377
Total tax charge for the period 173,028 137,385
The rate of corporation tax increased from 19% to 25% from 1 April 2023.
12. Tangible Assets
Land & Property
Freehold Leasehold Plant & Machinery Motor Vehicles
£ £ £ £
Cost
As at 1 February 2023 - 626,961 152,422 19,045
Additions - 68,057 13,033 18,273
Disposals - - - (19,045 )
As at 31 January 2024 - 695,018 165,455 18,273
Depreciation
As at 1 February 2023 - 99,473 102,669 2,711
Provided during the period - 27,801 12,558 4,162
Disposals - - - (6,494 )
As at 31 January 2024 - 127,274 115,227 379
Net Book Value
As at 31 January 2024 - 567,744 50,228 17,894
As at 1 February 2023 - 527,488 49,753 16,334
Page 17
Page 18
Computer Equipment Total
£ £
Cost
As at 1 February 2023 77,431 875,859
Additions 1,731 101,094
Disposals - (19,045 )
As at 31 January 2024 79,162 957,908
Depreciation
As at 1 February 2023 57,302 262,155
Provided during the period 4,365 48,886
Disposals - (6,494 )
As at 31 January 2024 61,667 304,547
Net Book Value
As at 31 January 2024 17,495 653,361
As at 1 February 2023 20,129 613,704
13. Stocks
2024 2023
£ £
Stock - parts and accessories 101,436 73,223
Stock - vehicles 2,553,453 2,521,680
2,654,889 2,594,903
The movement on the stock provision for the year was:-
2024
2023
£
£
At 1 February
98,527
70,352
Provided in the year
62,626
28,175
image
image
At 31 January
161,153
image
98,527
image
14. Debtors
2024 2023
£ £
Due within one year
Trade debtors 1,001,711 937,695
Other debtors 106,306 98,034
1,108,017 1,035,729
Due after more than one year
Other debtors 550,000 550,000
1,658,017 1,585,729
Page 18
Page 19
The movement on the bad debt provision for the year was:-
2024
2023
£
£
At 1 February
52,254
45,309
Provided in year
-
6,945
Released in year
(48,529)
-
image
image
At 31 January
3,995
image
52,254
image
15. Creditors: Amounts Falling Due Within One Year
2024 2023
£ £
Trade creditors 2,032,335 1,860,665
Bank loans and overdrafts - 70,000
Corporation tax 173,707 134,008
Other taxes and social security 30,404 150,434
VAT 140,399 -
Other creditors 127,877 191,552
Directors' loan accounts 14,220 -
2,518,942 2,406,659
16. Creditors: Amounts Falling Due After More Than One Year
2024 2023
£ £
Bank loans - 163,333
The bank loan of £nil (2023: £233,333) was a Coronavirus Business Interruption Loan which was fully settled in 2024.
Of the creditors falling due within and after more than one year the following amounts are secured:-
2024 2023
£ £
Trade Creditors 1,601,199 1,362,715
Bank loans and overdrafts - 233,333
The secured trade creditors represent vehicle funding balances which are secured on the vehicle stock they finance.
The bank loan was secured by a debenture over the company's assets.
17. Deferred Taxation
The provision for deferred tax is made up as follows:
2024 2023
£ £
Other timing differences 70,493 71,172
Page 19
Page 20
18. Provisions for Liabilities
Deferred Tax Total
£ £
As at 1 February 2023 71,172 71,172
Reversals (679 ) (679)
Balance at 31 January 2024 70,493 70,493
19. Share Capital
2024 2023
£ £
Allotted, Called up and fully paid 300 500
Share capital by class of share is as follows:-
2024
2023
£
£
300 (2023: nil) Ordinary shares of £1 each
300
-
Nil (2023: 200) Ordinary B shares of £1 each
-
200
Nil (2023: 300) Preference A shares of £1 each
-
300
image
image
300
500
image
image
On 5 April 2023 the company purchased its 200 Ordinary B shares at par.
On 31 January 2024 the company redesignated its existing 300 Preference A shares as 300 Ordinary shares.
20. Contingent Liabilities
At the reporting date the company had a commitment to repurchase vehicles from a fleet vehicle leasing company with a value of £698,449 (2023: £132,781).
21. Pension Commitments
During the year the company made payments to its defined contribution pension scheme. The pension cost charge represents contributions payable by the company to the scheme and amounted to £29,656 (2022: £24,661). Contributions totalling £6,643 (2022: £7,139) were payable to the scheme at the reporting date.
22. Dividends
2024 2023
£ £
On equity shares:
Final dividend paid 101,240 21,780
23. Post Balance Sheet Events
On 1 February 2024 the company became a 100% subsidiary undertaking of Boongate Holdings Limited with the creation of a new group.
Page 20
Page 21
24. Related Party Disclosures
During the year the company paid rent amounting to £120,000 (2023: £108,000) to Boongate Property Limited, a company under common control. 
Included within other debtors over one year is a loan to Boongate Property Limited of £550,000 (2023: £550,000), which is repayable on 1 December 2025 and attracts interest at 2.1% p.a over bank base rate. Interest receivable in the year was £27,308 (2023: £19,261).
A dividend of £101,240 (2023: £21,780) was paid to the directors in the year.
Page 21