Company registration number 06257951 (England and Wales)
CORKILLS NORTHWICH LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
PAGES FOR FILING WITH REGISTRAR
CORKILLS NORTHWICH LIMITED
CONTENTS
Page
Balance sheet
1
Statement of changes in equity
2
Notes to the financial statements
3 - 11
CORKILLS NORTHWICH LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
4
187,503
237,503
Tangible assets
5
78,066
91,764
265,569
329,267
Current assets
Stocks
6
1,637,801
1,339,041
Debtors
7
252,165
108,997
Cash at bank and in hand
78,869
2,726
1,968,835
1,450,764
Creditors: amounts falling due within one year
8
(1,919,947)
(1,613,570)
Net current assets/(liabilities)
48,888
(162,806)
Total assets less current liabilities
314,457
166,461
Creditors: amounts falling due after more than one year
9
(1,457,593)
(1,367,316)
Net liabilities
(1,143,136)
(1,200,855)
Capital and reserves
Called up share capital
11
100,001
100,001
Profit and loss reserves
(1,243,137)
(1,300,856)
Total equity
(1,143,136)
(1,200,855)

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the board of directors and authorised for issue on 12 September 2024 and are signed on its behalf by:
A B M Kermode
Director
Company registration number 06257951 (England and Wales)
CORKILLS NORTHWICH LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 January 2022
100,001
(1,655,239)
(1,555,238)
Year ended 31 December 2022:
Profit and total comprehensive income
-
354,383
354,383
Balance at 31 December 2022
100,001
(1,300,856)
(1,200,855)
Year ended 31 December 2023:
Profit and total comprehensive income
-
57,719
57,719
Balance at 31 December 2023
100,001
(1,243,137)
(1,143,136)
CORKILLS NORTHWICH LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
1
Accounting policies
Company information

Corkills Northwich Limited is a private company limited by shares incorporated in England and Wales. The registered office is Middlewich Road, Northwich, Cheshire, CW9 7BL.

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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

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
Going concern

During the year ended 31 December 202true3, the company had a net current asset position of £48,888 (2022 net current liabilities: £162,806) and net liabilities of £1,143,136 (2022: £1,200,855). Based on current bank balances and facilities, current funding and current trading, the directors believe that the company will be able to meet its debts as they fall due for the period of 12 months after the approval of these financial statements.

 

On that basis the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
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.

Sale of motor vehicles, parts and accessories are recognised on the earlier of full payment by, or delivery date to, the customer. Any other manufacturer income in relation to achieving targets is recognised on an accruals basis. Servicing revenue is recognised on the completion of the agreed work.

Revenue from commission's receivable is recognised when the amount can be reliably measured and it is probable that the company will receive the consideration.

1.4
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of unincorporated businesses 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 10 years.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.5
Tangible fixed assets

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

CORKILLS NORTHWICH LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 4 -

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

Plant and equipment
20% on cost
Fixtures and fittings
10% - 20% on cost
Computers
25% - 33% on cost
Motor vehicles
25% on cost

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 credited or charged to profit or loss.

1.6
Impairment of fixed assets

At each reporting period end date, the company 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.

1.7
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.

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.

All stock is pledged as security for the company's vehicle funding and bank facilities.

1.8
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.

1.9
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with 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.

CORKILLS NORTHWICH LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 5 -
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 company 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.

1.10
Equity instruments

Equity instruments issued by the company 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 company.

1.11
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 company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has 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.

CORKILLS NORTHWICH LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 6 -
1.12
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.

1.13
Retirement benefits

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

1.14
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

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

2
Judgements and key sources of estimation uncertainty

In the application of the company’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.

CORKILLS NORTHWICH LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
2
Judgements and key sources of estimation uncertainty
(Continued)
- 7 -
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 valuation

The company sells vehicles that are subject to changes in market demands. As a result it is necessary to consider the recoverability of the cost of stock and the associated provisioning required. When calculating the stock provision, management considered the nature and condition of the stock, as well as applying assumptions around anticipated saleability of finished goods.

Consignment stock

Vehicles held on consignment have been included in 'vehicle stocks' within 'stocks' on the basis that the company has determined that it holds the significant risks and rewards attached to these vehicles.

Useful economic life of tangible and intangible assets

The annual depreciation change for tangible and intangible assets is sensitive to changes in the estimated useful economics lives and residual values of assets. The useful economic lives and residual values are re-assessed annually. They are amended where necessary to reflect current estimates.

3
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2023
2022
Number
Number
Total
20
18
4
Intangible fixed assets
Goodwill
£
Cost
At 1 January 2023 and 31 December 2023
500,000
Amortisation and impairment
At 1 January 2023
262,497
Amortisation charged for the year
50,000
At 31 December 2023
312,497
Carrying amount
At 31 December 2023
187,503
At 31 December 2022
237,503
CORKILLS NORTHWICH LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
5
Tangible fixed assets
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 January 2023
78,789
86,695
32,587
60,912
258,983
Additions
13,694
8,320
-
0
-
0
22,014
Disposals
(1,000)
-
0
-
0
-
0
(1,000)
At 31 December 2023
91,483
95,015
32,587
60,912
279,997
Depreciation and impairment
At 1 January 2023
60,892
43,342
30,367
32,618
167,219
Depreciation charged in the year
14,720
7,565
1,706
11,388
35,379
Eliminated in respect of disposals
(667)
-
0
-
0
-
0
(667)
At 31 December 2023
74,945
50,907
32,073
44,006
201,931
Carrying amount
At 31 December 2023
16,538
44,108
514
16,906
78,066
At 31 December 2022
17,897
43,353
2,220
28,294
91,764

At the reporting date the net book value of assets held on hire purchase agreements is £1,183 (2022: £8,736).

6
Stocks
2023
2022
£
£
Parts stock
30,912
29,410
Vehicle stock
1,606,889
1,309,631
1,637,801
1,339,041

All stock is pledged as security for the company's vehicle funding and bank facilities.

 

Included within vehicle stock are consignment vehicles amounting to £490,185 (2022: £136,140).

7
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
115,190
68,245
Other debtors
99,937
1,422
Prepayments and accrued income
37,038
39,330
252,165
108,997
CORKILLS NORTHWICH LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
8
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Bank loans and overdrafts
10
42,933
191,524
Obligations under finance leases
1,183
8,736
Trade creditors
1,498,056
729,300
Amounts owed to group undertakings
273,222
485,222
Taxation and social security
14,517
26,883
Accruals and deferred income
90,036
171,905
1,919,947
1,613,570

The bank loan and overdraft are secured by a first legal charge over the company and groups freehold and leasehold land, buildings, charges and debentures over all of the company's assets and guarantees provided by the ultimate parent and director.

 

Vehicle funding is secured over the vehicles to which it relates.

 

The hire purchase liability is secured over the assets to which it relates.

9
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Bank loans and overdrafts
10
14,980
1,366,133
Obligations under finance leases
-
0
1,183
Other borrowings
10
1,442,613
-
0
1,457,593
1,367,316
Amounts included above which fall due after five years are as follows:
Payable by instalments
-
904,112
10
Loans and overdrafts
2023
2022
£
£
Bank loans
24,913
1,485,716
Bank overdrafts
33,000
71,941
Loans from group undertakings
1,442,613
-
0
1,500,526
1,557,657
Payable within one year
42,933
191,524
Payable after one year
1,457,593
1,366,133
CORKILLS NORTHWICH LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
10
Loans and overdrafts
(Continued)
- 10 -

A bank loan, with a current balance of £24,913 (2022: £33,140) is a loan underwritten by the Bounce Back Loan Scheme, in which the UK government had offered to cover the first 12 months of interest payments under the UK Government's Business Interruption Payment (BIP). In addition to this, no repayments needed to be made over the first 12 months. The loan is now being repaid in equal monthly instalments of £887 until 2026. Interest is charged at 2.5%.

 

Loans from group undertakings relate to an amount owed to the parent company, Corkills Group Holdings Limited. No interest is charged on this balance.

11
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100,001
100,001
100,001
100,001
12
Audit report information

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:

The auditor's report was unqualified.

Senior Statutory Auditor:
Ian McMahon FCCA FMAAT
Statutory Auditor:
UHY Hacker Young Manchester LLP
Date of audit report:
12 September 2024
13
Financial commitments, guarantees and contingent liabilities

National Westminster Bank Plc holds an unlimited multi-lateral guarantee over the assets of Corkills Group (Holdings) Limited, Corkills Volkswagen Limited and Corkills Northwich Limited for security of the overdraft facility and bank loan. At 31 December 2023 the total contingent liability in respect of this guarantee amounted to £3,019,737 (2022: £2,096,591).

14
Capital commitments

Amounts contracted for but not provided in the financial statements:

2023
2022
£
£
Acquisition of tangible fixed assets
462,003
199,163

The company has a commitment at the reporting date totalling £462,003 (2022: £199,163) to repurchase vehicles from CBS, at agreed values. The group makes provisions for any vehicles it expects market value to be below repurchase commitment.

 

At the reporting date legal title had passed to CBS and the group does not have the risks and responsibilities of ownership.

 

 

CORKILLS NORTHWICH LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
15
Related party transactions

The parent company Corkills Group Holdings Limited owns 100% of the issued share capital in the company and in Corkills Volkswagen Limited.

 

At the year end the company owed £304,356 (2022: £516,513) to Corkills Volkswagen Limited, a fellow subsidiary. The amount consists of the balance within amounts owed to group companies and a separate trade creditor account with the same company. At the year end £2,341 (2022: 2,454) was due from the same fellow subsidiary. This amount being included in trade debtors.

 

At the year end the company owed £1,442,613 (2022: £nil) to Corkills Group Holdings Limited, the ultimate parent company.

16
Ultimate controlling party

The ultimate parent company is Corkills Group Holdings Limited which is controlled by the Trahat Trust, based in the Isle of Man.

 

Corkills Group Holdings Limited own 100% of the issued share capital in the company and is incorporated and registered in the Isle of Man. Group accounts are not available to the public.

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