Company registration number 01730603 (England and Wales)
GENERAL TRAFFIC LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
GENERAL TRAFFIC LIMITED
COMPANY INFORMATION
Directors
I H Umarji
A H Umarji
M H Umarji
A I Umarji
A A Umarji
Secretary
I H Umarji
Company number
01730603
Registered office
Rutland Mill
Adelaide Street
Bolton
Lancs
BL3 3NY
Auditor
Sumer Auditco Limited
The Beehive
City Place
Gatwick
RH6 0PA
Bankers
NatWest
24 Deansgate
Bolton
BL1 1BN
GENERAL TRAFFIC LIMITED
CONTENTS
Page
Strategic report
1 - 4
Directors' report
5 - 7
Independent auditor's report
8 - 10
Group statement of comprehensive income
11
Group balance sheet
12
Company balance sheet
13
Group statement of changes in equity
14
Company statement of changes in equity
15
Group statement of cash flows
16
Company statement of cash flows
17
Notes to the financial statements
18 - 33
GENERAL TRAFFIC LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

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

Principal Activity

General Traffic supplies and distributes high quality components to the automotive industry at competitive prices through a comprehensive and efficient distribution service.

Review of the Business

The group’s sales totalled £83,192,479 in 2023 (2022: £58,294,785) with a profit before tax of £13,504,426 (2022: £10,274,978). The directors are satisfied with the overall performance of the company in a fast-changing and increasingly cost-competitive marketplace.

The growth in sales of £24,897,694 (42.7%) has been driven through the expansion of General Traffic’s network to 43 branches with the addition of one new greenfield site and the acquisition of N.P. Alliance Ltd, consisting of eleven sites.

Principal risks and uncertainties

The directors monitor business performance through tracking key performance and strategic indicators monthly and quarterly to agree on actions which either mitigate against negative movements or exploit opportunities.

Risk & Impact

Mitigation

General Traffic's acquisition of N.P. Alliance Ltd, a well-established business in the North East, brings with it several integration risks. The differing cultures, systems, and processes between the two companies can lead to challenges in aligning operations. There is a risk of losing key staff who may be resistant to change or feel uncertain about the future. Additionally, integrating the customer bases could result in losing key customers if the transition is not managed smoothly. Other potential risks include discrepancies in financial reporting, incompatibility of IT systems, and disruptions to daily operations.

When completing an acquisition, we develop a comprehensive integration plan that addresses the alignment of different cultures, systems and processes. We maintain open communication with key staff to ensure transparency throughout the integration process in order to alleviate uncertainty and resistance whilst also promoting a more cohesive work environment. We proactively engage with key customers to reassure them of our continued service level and address any concerns they may have during the transition in the interest of retaining their business. We ensure compatibility of IT systems through careful planning and potential upgrades in order to prevent technical disruptions. Finally, we conduct regular reviews and audits of financial reporting to identify and resolve discrepancies early, whilst maintaining operational stability.

The ongoing conflict in the Middle East has led to significant disruptions in the supply chain as cargo ships have been re-routing via the southern tip of Africa to avoid attacks in the Red Sea. This has resulted in increased freight costs as well as delays in receiving goods due to fewer sailings and reduced capacity to transport goods from the Far East to the UK.

To mitigate the risk of supply chain disruptions, we work with multiple suppliers and diversify our transportation routes. By working with suppliers and logistics providers who offer alternative shipping lanes and have robust contingency plans, we can minimise delays and costs increases. We maintain higher inventory levels of critical components and strategically place stock in multiple warehouses to ensure availability for our customers. Regular communication with suppliers and logistics partners allows us to anticipate and address potential disruptions early. Additionally, investing in technology to improve supply chain visibility and agility helps us respond swiftly to changing conditions.

GENERAL TRAFFIC LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -

Economic uncertainty, rising inflation and interest rates, pose significant risks to consumer spending habits. With reduced disposable income, consumers may postpone necessary repairs or seek cheaper alternatives to save costs. This shift could lead to a decrease in demand for car parts, as consumers may delay purchases or shop around for the best deals.

 

We continue to expand our product range to include a variety of price points. By offering both premium and value-for-money options, we are able to cater for customers with different budget constraints. We leverage our purchasing power and financial stability to negotiate improved pricing with manufacturers and suppliers, enabling us to offer competitive prices without compromising quality. We continue to educate customers about the importance of timely repairs and the potential consequences of delaying maintenance.

Inflation trends for commodities, raw materials and energy are currently on the rise and are likely to continue to escalate. This trend will ultimately increase the cost of finished goods, particularly for imports from the Far East which are further impacted by supply chain disruptions. Wage inflation in the UK is also increasing, which will affect profitability as well as the cost of goods purchased from local suppliers.

We continually review our processes and operations to drive efficiencies and improvements, however if inflation risks materialise, we may have to raise our selling prices to offset the impact. Nevertheless, these inflationary pressures will also affect our competitors and therefore we should remain competitive in the marketplace.

General Traffic, like any other business, faces the risk of non-payment, which can arise due to factors such as economic downturns, insolvency, or customer disputes. The credit risk of customers failing to pay their bills is likely to increase during times of economic uncertainty and rising costs as customers may be unable or unwilling to fulfil their payment obligations.

We conduct thorough credit checks on customers before approving credit facilities. We set appropriate credit limits and terms for each customer based on their creditworthiness and financial stability. We monitor and adjust these limits periodically to ensure customers are not granted excessive credit that could pose a higher risk. We maintain a strict credit control policy that outlines clear consequences for late or non-payment and where necessary we implement effective debt recovery processes.

In an attempt to gain a competitive edge and maintain or increase market share, competitors may engage in aggressive price reductions, leading to a downward spiral of prices across the industry. This can erode margins, reduce profitability and hinder the ability to invest in innovation and growth. Price wars may also create a perception of lower quality or value among customers, affecting brand reputation.

Instead of solely competing on price, we differentiate ourselves by offering value-added services to customers such as technical support, training programs, warranties, efficient order processing and reliable delivery services. We maintain a strong emphasis on providing a comprehensive selection of high-quality components and we prefer to work with industry leading suppliers that are known for certain product categories. This helps us to attract customers who value expertise, specific brands and solutions, rather than just the lowest price.

Historically the UK aftermarket was largely dominated by independently run businesses. However, significant M&A activity in recent years has transformed the independent aftermarket as a handful of larger players have sought to consolidate their market position at every level of the supply chain. This trend looks set to continue at an accelerated pace fundamentally reshaping the structure and dynamic of the automotive aftermarket.

We are able to alleviate competitive pressure arising from consolidation through maintaining strategic partnerships with other distributors via RAPID Group membership and with supply partners through leveraging our affiliation with TEMOT International.

 

GENERAL TRAFFIC LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
Key performance indicators

The key performance indicators that the company regards as important are:

KPI

2023

2022

1. Gross profit margin

50.9%

50.9%

2. Ratio of operating expenses to turnover

34.7%

33.3%

3. Ratio of operating profit to turnover

16.2%

17.6%

4. Earnings before interest, tax, depreciation and amortisation (EBITDA)

£15,435,318

£11,203,211

 

1. The gross profit margin has maintained as a result of sourcing a wider range of products directly from factory gates whilst also negotiating bulk order discounts and cultivating long-term partnerships with suppliers.

 

2. The increase in the ratio of operating expenses to turnover can be attributed to inflationary pressures impacting the cost of conducting business operations.

 

3. The increase in operating expenses has outweighed the increase in gross profit margin thus decreasing the ratio of operating profit to turnover by 1.4%.

 

4. Although there was a significant increase in the operating costs the increase in sales and gross profit enabled another year of successive growth in the EBITDA.

GENERAL TRAFFIC LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
Future Developments

In the medium and long term, the business will endeavour to focus on:

  1. Supply Chain Resilience – Recognising the impact of supply chain disruptions caused by the macro-economic factors and geopolitical events, General Traffic will proactively diversify its supplier base, maintain close communication with key partners and implement demand forecasting and inventory management strategies to ensure continuity of supply and to minimise disruptions.

  2. Customer Relationship Management – General Traffic will continue to focus on strengthening customer relationships by providing excellent customer service, personalised support and value-added services in order to enhance customer satisfaction, loyalty and retention.

  3. Market Differentiation – By positioning itself as a trusted and reliable motor factor, General Traffic aims to differentiate from competitors solely focused on price. The company will continue to invest in research and development, innovation and market intelligence to identify emerging trends and customer needs.

  4. Digital Transformation – General Traffic recognises the importance of embracing digital technologies to enhance operational efficiency and improve customer experience. The company will invest in digital platforms, e-commerce capabilities and data analytics to streamline processes, optimise inventory management and improve online ordering and support services.

  5. Operational Efficiencies – General Traffic acknowledges the significance of sustainability and environmental responsibility. The company will prioritise sustainable sourcing, waste reduction, energy efficiency and responsible manufacturing practices.

  6. Talent Development – General Traffic recognises the value of its employees and their contributions to the company’s success. The company will continue to invest in talent development programs, training initiatives and fostering a positive work culture to attract, retain and motivate skilled professionals.

  7. Market Expansion – General Traffic will continue to explore opportunities for geographic expansion in order to enhance its market position.

On behalf of the board

A A Umarji
Director
15 August 2024
GENERAL TRAFFIC LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 5 -

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 the provision of motor vehicle parts and accessories.

Results and dividends

The results for the year are set out on page 11.

Ordinary dividends were paid amounting to £3,957,900. 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:

I H Umarji
A H Umarji
M H Umarji
A I Umarji
A A Umarji
Disabled persons

Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the group continues and that the appropriate training is arranged. It is the policy of the group that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.

Employee involvement

The group's policy is to consult and discuss with employees, through unions, staff councils and at meetings, matters likely to affect employees' interests.

 

Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the group's performance.

 

There is no employee share scheme at present, but the directors are considering the introduction of such a scheme as a means of further encouraging the involvement of employees in the company's performance.

Auditor

Sumer Auditco Limited were appointed as auditor in the year and are deemed to be reappointed under section 487(2) of the Companies Act 2006.

Energy and carbon report

Following the change in reporting requirements our report on energy consumption and greenhouse gas emissions is set out below:

2023
2022
Energy consumption
kWh
kWh
Aggregate of energy consumption in the year
9,480,130
7,179,774
GENERAL TRAFFIC LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 6 -
2023
2022
Emissions of CO2 equivalent
metric tonnes
metric tonnes
Scope 1 - direct emissions
- Gas combustion
65.50
54.95
- Fuel consumed for owned transport
1,953.85
1,515.39
2,019.35
1,570.34
Scope 2 - indirect emissions
- Electricity purchased
174.06
115.01
Scope 3 - other indirect emissions
- Fuel consumed for transport not owned by the group
-
-
Total gross emissions
2,193.41
1,685.35
Intensity ratio
Tonnes CO2e per £100,000 turnover
2.91
2.89
Quantification and reporting methodology

The group has followed the 2019 HM Government Environmental Reporting Guidelines. The group has also used the GHG Reporting Protocol – Corporate Standard and have used the 2020 UK Government’s Conversion Factors for Company Reporting

Intensity measurement

The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2e per £100,000 of turnover, the recommended ratio for the sector.

Measures taken to improve energy efficiency

In order to meet our ESOS (Energy Savings Opportunities Scheme) compliance responsibilities, site and transport surveys have been carried out to identify cost effective energy saving opportunities.

 

The following energy saving measures have been identified and are currently being considered:

GENERAL TRAFFIC LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
Statement of directors' responsibilities

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:

 

 

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.

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
A A Umarji
Director
15 August 2024
GENERAL TRAFFIC LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF GENERAL TRAFFIC LIMITED
- 8 -
Opinion

We have audited the financial statements of General Traffic 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, the company statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent 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 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.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

GENERAL TRAFFIC LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF GENERAL TRAFFIC LIMITED
- 9 -
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 their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or 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:

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.

 

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.

 

We identified areas of laws and regulations that could reasonably be expected to have a material effect on the

financial statements from our general commercial and sector experience, and through discussions with the directors

(as required by auditing standards) and discussed with the directors the policies and procedures regarding

compliance with laws and regulations. We communicated identified laws and regulations throughout our team and

remained alert to any indications of non-compliance throughout the audit. The potential effect of these laws and

regulations on the financial statements varies considerably.

 

Firstly, the company is subject to laws and regulations that directly affect the financial statements including financial

reporting legislation and taxation legislation. We assessed the extent of compliance with these laws and regulations

as part of our procedures on the related financial statement items.

 

Secondly, the company is subject to many other laws and regulations where the consequences of non-compliance

could have a material effect on amounts or disclosures in the financial statements, for instance through the

imposition of fines or litigation. We identified the following areas as those most likely to have such an effect: laws

related to health and safety, employment laws, gender pay gap, consumer protection and COSHH for the handling

of chemicals and hazardous materials.

 

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to

enquiry of the directors and inspection of regulatory and legal correspondence, if any. Through these procedures we

did not become aware of any actual or suspected non-compliance.

GENERAL TRAFFIC LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF GENERAL TRAFFIC LIMITED
- 10 -

Owing 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, the further removed non-compliance with laws and regulations

(irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently

limited procedures required by auditing standards would identify it. In addition, 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 non-compliance and

cannot be expected to detect non-compliance with all laws and regulations.

 

We design procedures in line with our responsibilities, outlined below to detect material misstatement due to fraud:

• Matters are discussed amongst the audit engagement team regarding how and where fraud might occur in the

financial statements and any potential indicators of fraud

• Identifying and assessing the design and effectiveness of controls that management have in place to prevent and

detect fraud

• Detecting and responding to the risks of fraud following discussions with management and enquiring as to whether

management have knowledge of any actual, suspected or alleged fraud;

 

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

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Alex Hesketh (Senior Statutory Auditor)
For and on behalf of Sumer Auditco Limited
15 August 2024
Statutory Auditor
The Beehive
City Place
Gatwick
RH6 0PA
GENERAL TRAFFIC LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
2023
2022
Notes
£
£
Turnover
3
83,192,479
58,294,785
Cost of sales
(40,885,893)
(28,645,502)
Gross profit
42,306,586
29,649,283
Administrative expenses
(28,872,406)
(19,381,045)
Other operating income
5,554
6,740
Operating profit
4
13,439,734
10,274,978
Interest receivable and similar income
8
64,692
-
0
Profit before taxation
13,504,426
10,274,978
Tax on profit
9
(3,319,150)
(1,908,295)
Profit for the financial year
10,185,276
8,366,683
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.
GENERAL TRAFFIC LIMITED
GROUP BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 12 -
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
11
2,912,826
-
0
Tangible assets
12
3,610,936
3,816,636
6,523,762
3,816,636
Current assets
Stocks
13
11,714,187
10,056,435
Debtors
14
8,522,830
5,717,382
Cash at bank and in hand
11,622,897
10,399,833
31,859,914
26,173,650
Creditors: amounts falling due within one year
15
(6,943,644)
(4,891,392)
Net current assets
24,916,270
21,282,258
Total assets less current liabilities
31,440,032
25,098,894
Provisions for liabilities
Deferred tax liability
16
742,798
629,036
(742,798)
(629,036)
Net assets
30,697,234
24,469,858
Capital and reserves
Called up share capital
18
100,200
100,200
Share premium account
3,110
3,110
Capital redemption reserve
3,746
3,746
Profit and loss reserves
30,590,178
24,362,802
Total equity
30,697,234
24,469,858
The financial statements were approved by the board of directors and authorised for issue on 15 August 2024 and are signed on its behalf by:
15 August 2024
A I Umarji
A A Umarji
Director
Director
Company registration number 01730603 (England and Wales)
GENERAL TRAFFIC LIMITED
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 13 -
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
11
2,912,826
-
0
Tangible assets
12
3,610,936
3,816,636
6,523,762
3,816,636
Current assets
Stocks
13
11,714,187
10,056,435
Debtors
14
8,522,830
5,717,382
Cash at bank and in hand
11,622,897
10,399,833
31,859,914
26,173,650
Creditors: amounts falling due within one year
15
(7,742,386)
(4,891,392)
Net current assets
24,117,528
21,282,258
Total assets less current liabilities
30,641,290
25,098,894
Provisions for liabilities
Deferred tax liability
16
742,798
629,036
(742,798)
(629,036)
Net assets
29,898,492
24,469,858
Capital and reserves
Called up share capital
18
100,200
100,200
Share premium account
3,110
3,110
Capital redemption reserve
3,746
3,746
Profit and loss reserves
29,791,436
24,362,802
Total equity
29,898,492
24,469,858

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 £9,386,534 (2022 - £8,366,683 profit).

The financial statements were approved by the board of directors and authorised for issue on 15 August 2024 and are signed on its behalf by:
15 August 2024
A I Umarji
A A Umarji
Director
Director
Company registration number 01730603 (England and Wales)
GENERAL TRAFFIC LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
Share capital
Share premium account
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 January 2022
100,200
3,110
3,746
19,603,319
19,710,375
Year ended 31 December 2022:
Profit and total comprehensive income
-
-
-
8,366,683
8,366,683
Dividends
10
-
-
-
(3,607,200)
(3,607,200)
Balance at 31 December 2022
100,200
3,110
3,746
24,362,802
24,469,858
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
-
10,185,276
10,185,276
Dividends
10
-
-
-
(3,957,900)
(3,957,900)
Balance at 31 December 2023
100,200
3,110
3,746
30,590,178
30,697,234
GENERAL TRAFFIC LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
Share capital
Share premium account
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 January 2022
100,200
3,110
3,746
19,603,319
19,710,375
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
-
-
8,366,683
8,366,683
Dividends
10
-
-
-
(3,607,200)
(3,607,200)
Balance at 31 December 2022
100,200
3,110
3,746
24,362,802
24,469,858
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
-
9,386,534
9,386,534
Dividends
10
-
-
-
(3,957,900)
(3,957,900)
Balance at 31 December 2023
100,200
3,110
3,746
29,791,436
29,898,492
GENERAL TRAFFIC LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 16 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
23
15,089,681
8,573,853
Income taxes paid
(2,899,498)
(2,000,791)
Net cash inflow from operating activities
12,190,183
6,573,062
Investing activities
Purchase of intangible assets
(6,943,292)
-
Purchase of tangible fixed assets
(1,214,243)
(1,065,739)
Proceeds from disposal of tangible fixed assets
1,083,624
1,690,465
Interest received
64,692
-
0
Net cash (used in)/generated from investing activities
(7,009,219)
624,726
Financing activities
Dividends paid to equity shareholders
(3,957,900)
(3,607,200)
Net cash used in financing activities
(3,957,900)
(3,607,200)
Net increase in cash and cash equivalents
1,223,064
3,590,588
Cash and cash equivalents at beginning of year
10,399,833
6,809,245
Cash and cash equivalents at end of year
11,622,897
10,399,833
GENERAL TRAFFIC LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 17 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
24
11,388,595
8,573,853
Income taxes paid
(2,060,685)
(2,000,791)
Net cash inflow from operating activities
9,327,910
6,573,062
Investing activities
Purchase of intangible assets
(9,670,515)
-
0
Purchase of tangible fixed assets
(2,840,024)
(1,065,739)
Proceeds from disposal of tangible fixed assets
1,075,684
1,690,465
Interest received
40,011
-
0
Dividends received
7,247,898
-
0
Net cash (used in)/generated from investing activities
(4,146,946)
624,726
Financing activities
Dividends paid to equity shareholders
(3,957,900)
(3,607,200)
Net cash used in financing activities
(3,957,900)
(3,607,200)
Net increase in cash and cash equivalents
1,223,064
3,590,588
Cash and cash equivalents at beginning of year
10,399,833
6,809,245
Cash and cash equivalents at end of year
11,622,897
10,399,833
GENERAL TRAFFIC LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 18 -
1
Accounting policies
Company information

General Traffic Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Rutland Mill, Adelaide Street, Bolton, Lancs, BL3 3NY.

 

The group consists of General Traffic 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 £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

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.

1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company General Traffic Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

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.

Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.

GENERAL TRAFFIC LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 19 -
1.4
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group 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.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.6
Research and development expenditure

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

1.7
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, which is is 5 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.

1.8
Tangible fixed assets

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

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

Freehold land and buildings
Straight line over 50 years
Leasehold land and buildings
10% straight line
Fixtures and fittings
10% reducing balance/33.3% straight line
Motor vehicles
25% straight line

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.

GENERAL TRAFFIC LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 20 -
1.9
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

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.

1.10
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.

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 (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) 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 (or cash-generating unit) 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 (or cash-generating unit) 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.

1.11
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.

GENERAL TRAFFIC LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 21 -
1.12
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.

1.13
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.

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.

GENERAL TRAFFIC LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 22 -
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.

Other financial liabilities

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

 

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

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.14
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.

1.15
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.

GENERAL TRAFFIC LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 23 -
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.

1.16
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.

1.17
Retirement benefits

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

1.18
Leases

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

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

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.

GENERAL TRAFFIC LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
2
Judgements and key sources of estimation uncertainty
(Continued)
- 24 -
Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Stock provision

The management devise an annual estimate of provisions for stock items based on historical customer data for the products that are held by the business. The value of the stock provision is £626,175 at 31 December 2023.

3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Provision of motor vehicle parts and accessories
83,192,479
58,294,785
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
83,192,479
58,294,785
2023
2022
£
£
Other revenue
Interest income
64,692
-
Rental income
5,554
6,470
4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Research and development costs
2,769
2,858
Depreciation of owned tangible fixed assets
1,341,684
928,233
Profit on disposal of tangible fixed assets
(311,551)
(359,501)
Amortisation of intangible assets
653,900
-
Operating lease charges
1,424,346
856,306
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
35,500
22,000
GENERAL TRAFFIC LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 25 -
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
Administration
44
27
30
27
Selling and distribution
907
497
704
497
Total
951
524
734
524

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
17,579,767
12,373,686
16,123,823
12,373,686
Social security costs
1,492,996
1,128,717
1,379,378
1,128,717
Pension costs
257,255
188,956
229,210
188,956
19,330,018
13,691,359
17,732,411
13,691,359
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
798,912
760,940

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 3 (2022 - 3).

Remuneration disclosed above includes the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
390,850
332,000
GENERAL TRAFFIC LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 26 -
8
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
47,689
-
0
Other interest income
17,003
-
Total income
64,692
-
0
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
47,689
-
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
3,315,247
1,816,465
Deferred tax
Origination and reversal of timing differences
3,903
91,830
Total tax charge
3,319,150
1,908,295

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

2023
2022
£
£
Profit before taxation
13,504,426
10,274,978
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2022: 19.00%)
3,376,107
1,952,246
Tax effect of expenses that are not deductible in determining taxable profit
178,572
11,406
Effect of change in corporation tax rate
(193,769)
-
Permanent capital allowances in excess of depreciation
(50,860)
(55,357)
Capital gain
9,100
-
0
Taxation charge
3,319,150
1,908,295
GENERAL TRAFFIC LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 27 -
10
Dividends
2023
2022
Recognised as distributions to equity holders:
£
£
Interim paid
3,957,900
3,607,200

A dividend of £39.50 (2022: £36.00) per ordinary share was paid during the year.

11
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 January 2023
1,053,500
Additions
3,566,726
At 31 December 2023
4,620,226
Amortisation and impairment
At 1 January 2023
1,053,500
Amortisation charged for the year
653,900
At 31 December 2023
1,707,400
Carrying amount
At 31 December 2023
2,912,826
At 31 December 2022
-
0
Company
Goodwill
£
Cost
At 1 January 2023
1,053,500
Additions
3,566,726
At 31 December 2023
4,620,226
Amortisation and impairment
At 1 January 2023
1,053,500
Amortisation charged for the year
653,900
At 31 December 2023
1,707,400
Carrying amount
At 31 December 2023
2,912,826
At 31 December 2022
-
0
GENERAL TRAFFIC LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 28 -
12
Tangible fixed assets
Group
Freehold land and buildings
Leasehold land and buildings
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
£
Cost
At 1 January 2023
901,337
229,800
-
0
3,346,580
-
0
2,799,923
7,277,640
Additions
1,033,456
6,156
95,933
374,541
5,077
1,472,038
2,987,201
Disposals
(1,934,793)
-
0
(95,933)
(456,964)
(5,077)
(366,461)
(2,859,228)
At 31 December 2023
-
0
235,956
-
0
3,264,157
-
0
3,905,500
7,405,613
Depreciation and impairment
At 1 January 2023
143,733
54,326
-
0
1,863,427
-
0
1,399,518
3,461,004
Depreciation charged in the year
2,332
24,727
9,992
299,060
1,862
1,003,711
1,341,684
Eliminated in respect of disposals
(146,065)
-
0
(9,992)
(456,964)
(1,862)
(393,128)
(1,008,011)
At 31 December 2023
-
0
79,053
-
0
1,705,523
-
0
2,010,101
3,794,677
Carrying amount
At 31 December 2023
-
0
156,903
-
0
1,558,634
-
0
1,895,399
3,610,936
At 31 December 2022
757,604
175,474
-
0
1,483,153
-
0
1,400,405
3,816,636
GENERAL TRAFFIC LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
12
Tangible fixed assets
(Continued)
- 29 -
Company
Freehold land and buildings
Leasehold land and buildings
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 January 2023
901,337
229,800
3,346,580
2,799,923
7,277,640
Additions
1,033,456
6,156
374,541
1,425,871
2,840,024
Disposals
(1,934,793)
-
0
(456,964)
(320,294)
(2,712,051)
At 31 December 2023
-
0
235,956
3,264,157
3,905,500
7,405,613
Depreciation and impairment
At 1 January 2023
143,733
54,326
1,863,427
1,399,518
3,461,004
Depreciation charged in the year
2,332
24,727
299,060
918,111
1,244,230
Eliminated in respect of disposals
(146,065)
-
0
(456,964)
(307,528)
(910,557)
At 31 December 2023
-
0
79,053
1,705,523
2,010,101
3,794,677
Carrying amount
At 31 December 2023
-
0
156,903
1,558,634
1,895,399
3,610,936
At 31 December 2022
757,604
175,474
1,483,153
1,400,405
3,816,636
13
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Finished goods and goods for resale
11,714,187
10,056,435
11,714,187
10,056,435
14
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
5,912,606
3,952,920
5,912,606
3,952,920
Other debtors
255,897
282,007
255,897
282,007
Prepayments and accrued income
2,354,327
1,482,455
2,354,327
1,482,455
8,522,830
5,717,382
8,522,830
5,717,382
GENERAL TRAFFIC LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 30 -
15
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
£
£
£
£
Trade creditors
4,362,780
3,588,851
4,362,780
3,588,851
Amounts owed to group undertakings
-
0
-
0
798,742
-
0
Corporation tax payable
1,374,549
501,908
1,374,549
501,908
Other taxation and social security
925,924
559,453
925,924
559,453
Other creditors
47,798
41,400
47,798
41,400
Accruals and deferred income
232,593
199,780
232,593
199,780
6,943,644
4,891,392
7,742,386
4,891,392
16
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
742,798
629,036
Liabilities
Liabilities
2023
2022
Company
£
£
Accelerated capital allowances
742,798
629,036
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 January 2023
629,036
629,036
Charge to profit or loss
3,903
3,903
Other
109,859
109,859
Liability at 31 December 2023
742,798
742,798
GENERAL TRAFFIC LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 31 -
17
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
257,255
188,956

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.

18
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A shares of £1 each
76,600
76,600
76,600
76,600
Ordinary B shares of £1 each
23,400
23,400
23,400
23,400
Ordinary C shares of £1 each
200
200
200
200
100,200
100,200
100,200
100,200
19
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
1,437,217
743,391
1,437,217
743,391
Between two and five years
4,133,963
2,587,410
4,133,963
2,587,410
In over five years
1,159,761
1,639,046
1,159,761
1,639,046
6,730,941
4,969,847
6,730,941
4,969,847
20
Related party transactions

The company paid rent on commercial terms of £316,800 (2022: £204,480) to Asante Investment Limited, £150,900 (2022: £Nil) to Yara International Limited and £274,560 (2022: £238,080) Southern Island Investment Limited during the year.

 

The company also sold land and buildings on commercial terms amounting to £Nil (2022: £1,530,000) to Asante Investment Limited, and £1,993,456 (2022: £Nil) to Yara International Limited.

 

A H Umarji and I H Umarji are individual beneficial owners of these companies.

 

The company has availed exemptions available under FRS 102 paragraph 33.1A not to disclose transactions undertaken with wholly owned group companies.

GENERAL TRAFFIC LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 32 -
21
Directors' transactions

During the year the following dividends were paid to the directors:

I H Umarji £146,150 (2022: £133,200)

A H Umarji £379,200 (2022: £345,600)

M H Umarji £201,450 (2022: £183,600)

A I Umarji £102,700 (2022: £ 93,600)

A A Umarji £169,850 (2022: £154,800).

 

22
Controlling party

There is no individual or company that is the ultimate controlling party of the company.

23
Cash generated from group operations
2023
2022
£
£
Profit for the year after tax
10,185,276
8,366,683
Adjustments for:
Taxation charged
3,319,150
1,908,295
Investment income
(64,692)
-
0
Gain on disposal of tangible fixed assets
(311,551)
(359,501)
Amortisation and impairment of intangible assets
653,900
-
Depreciation and impairment of tangible fixed assets
1,341,684
928,233
Movements in working capital:
Decrease/(increase) in stocks
1,189,217
(1,794,803)
Increase in debtors
(520,139)
(244,720)
Decrease in creditors
(703,164)
(230,334)
Cash generated from operations
15,089,681
8,573,853
GENERAL TRAFFIC LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 33 -
24
Cash generated from operations - company
2023
2022
£
£
Profit for the year after tax
9,386,534
8,366,683
Adjustments for:
Taxation charged
3,047,088
1,908,295
Investment income
(7,287,909)
-
0
Gain on disposal of tangible fixed assets
(307,646)
(359,501)
Amortisation and impairment of intangible assets
653,900
-
Depreciation and impairment of tangible fixed assets
1,244,230
928,233
Impairment of investment in subsidiary
7,137,246
-
Movements in working capital:
Increase in stocks
(1,657,752)
(1,794,803)
Increase in debtors
(2,805,449)
(244,720)
Increase/(decrease) in creditors
1,978,353
(230,334)
Cash generated from operations
11,388,595
8,573,853
25
Analysis of changes in net funds - group
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
10,399,833
1,223,064
11,622,897
26
Analysis of changes in net funds - company
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
10,399,833
1,223,064
11,622,897
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