Company registration number 08026251 (England and Wales)
CAR TIME MOTOR COMPANY UK LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
CAR TIME MOTOR COMPANY UK LIMITED
COMPANY INFORMATION
Director
M C Kay
Company number
08026251
Registered office
C/O UHY Hacker Young
St James' Building
79 Oxford Street
Manchester
M1 6HT
Auditor
UHY Hacker Young Manchester LLP
St James Building
79 Oxford Street
Manchester
M1 6HT
Business address
Bell Lane
Bury
Lancs
BL9 6HH
CAR TIME MOTOR COMPANY UK LIMITED
CONTENTS
Page
Strategic report
1 - 2
Director's report
3 - 5
Independent auditor's report
6 - 8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Notes to the financial statements
12 - 23
CAR TIME MOTOR COMPANY UK LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 APRIL 2024
- 1 -

The director presents the strategic report for the Year ended 30 April 2024.

Principal activities

Car Time Motor Company UK Ltd specialise in retailing used vehicles to a diverse customer base. Our dealership offers a wide range of pre-owned cars, catering to various preferences and budgets. Customers have the flexibility to purchase vehicles outright with cash or through tailored finance options. We strive to provide exceptional customer service and a seamless purchasing experience, ensuring that our customers find the right vehicle that meets their needs and financial situation.

Review of the business

The financial year ended 30 April 2024 remained a challenging year overall for the business, with challenges surrounding electric vehicles and general market uncertainty surrounding JLR products. The turnover for the year was £70,162,870, which represents a decrease of 4.2% compared to the previous year. The gross profit was £8,389,350, and the net profit before tax was £219,634.

 

We are pleased to see the company has returned to profit for the financial year with some structural changes.

Principal risks and uncertainties

The company is exposed to various risks and uncertainties, including:

Development and performance

Within the year the business made key developments and reprofiled its stock to better match its customer based. Ensuring our stock matches the requirements within the market. The business also started plans on improving its digital presence in the marketplace. With major website development and the digitalisation of its documents, ready for major developments in the next financial year.

On a more operational level, the business has reviewed the skills shortages and invested in staff to fill those skills gaps. Bringing in better more qualified staff and IT to help enhance its efficiency. Investment has been agreed and the operational restructure will take place into the financial year 24/25.

Future Developments

We are really pleased the new financial year has already made a positive start and the changes across the business are starting to take effect, with positive profit returns already being achieved.

Looking ahead, the company aims to:

Promoting the success of the company

The board of directors of Car Time Motor Company UK Limited consider that they have acted in good faith and in a manner likely to promote the success of the company for the benefit of all its members (having regard to the stakeholders and matters set out in s172(1)(a)-(f) of the Companies Act 2006) in the decisions taken during the year ended 30 April 2024. Our primary considerations and decisions are designed to have a long-term beneficial impact on the company and one that focuses on delivering high quality service across all departments of the business.

CAR TIME MOTOR COMPANY UK LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 2 -

On behalf of the board

M C Kay
Director
20 September 2024
CAR TIME MOTOR COMPANY UK LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 30 APRIL 2024
- 3 -

The director presents his annual report and financial statements for the Year ended 30 April 2024.

Principal activities

Car Time Motor Company UK Ltd specialise in retailing used vehicles to a diverse customer base. Our dealership offers a wide range of pre-owned cars, catering to various preferences and budgets. Customers have the flexibility to purchase vehicles outright with cash or through tailored finance options. We strive to provide exceptional customer service and a seamless purchasing experience, ensuring that our customers find the right vehicle that meets their needs and financial situation.

Results and dividends

The results for the Year are set out on page 9.

No ordinary dividends were payable. The director does not recommend payment of a final dividend.

Director

The director who held office during the Year and up to the date of signature of the financial statements was as follows:

M C Kay
D R Wood
(Resigned 23 May 2023)
Financial instruments

The company has a normal level of exposure to price, credit, liquidity and cash flow risks arising from its trading activities which are only conducted in sterling. The company does not enter into hedging transactions.

Liquidity risk

The company manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring the company has sufficient liquid resources to meet the operating needs of the business.

Interest rate risk

The company is exposed to fair value interest rate risk on its fixed rate borrowings and cash flow interest rate risk on floating rate deposits, bank overdrafts and loans. The company manages the mix of fixed and variable rate debt so as to reduce its exposure to changes in interest rates.

Credit risk

Investments of cash surpluses and borrowings are made through banks and companies which must fulfil credit rating criteria approved by the Board.

 

All customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are monitored on an ongoing basis and provision is made for doubtful debts where necessary.

Auditor

The auditor, UHY Hacker Young Manchester LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Energy and carbon report

This section includes our mandatory reporting of energy and greenhouse gas emissions for the period 1 May 2023 to 30 April 2024, pursuant to the Companies (Directors’ Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018, implementing the government’s Streamlined Energy and Carbon Reporting (SECR) policy.

The table below includes total energy consumption (reported as kWh) and greenhouse gas emissions for the sources required by the regulations, along with our intensity ratio.

CAR TIME MOTOR COMPANY UK LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 4 -
2024
2023
Energy consumption
kWh
kWh
Aggregate of energy consumption in the year
1,228,629
547,001
2024
2023
Emissions of CO2 equivalent
metric tonnes
metric tonnes
Scope 1 - direct emissions
- Gas combustion
152.00
15.00
- Fuel consumed for owned transport
-
-
152.00
15.00
Scope 2 - indirect emissions
- Electricity purchased
82.00
92.00
Scope 3 - other indirect emissions
- Fuel consumed for transport not owned by the Fuel consumed for transport not owned by Company
-
-
Total gross emissions
234.00
107.00
Intensity ratio
Tonnes CO2e / Turnover £1m
3.32
1.25
Quantification and reporting methodology

We have followed the 2019 HM Government Environmental Reporting Guidelines. We have 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 £1m turnover.

Measures taken to improve energy efficiency

We have installed smart meters to monitor kwh usage on a half hourly basis and increased video conferencing technology and working from home , to reduce the need for travel between sites.

CAR TIME MOTOR COMPANY UK LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 5 -
Statement of director's responsibilities

The director is responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the director is required to:

 

 

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

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 company’s auditor 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 company’s auditor is aware of that information.

On behalf of the board
M C Kay
Director
20 September 2024
CAR TIME MOTOR COMPANY UK LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF CAR TIME MOTOR COMPANY UK LIMITED
- 6 -
Opinion

We have audited the financial statements of Car Time Motor Company UK Limited (the 'company') for the Year ended 30 April 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity 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 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 director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

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

 

Our responsibilities and the responsibilities of the director 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 director is 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:

CAR TIME MOTOR COMPANY UK LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF CAR TIME MOTOR COMPANY UK LIMITED (CONTINUED)
- 7 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the director's 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 director

As explained more fully in the director's responsibilities statement, the director is 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 director determines 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 director is responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the company or to cease operations, or has 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:-

Extent to which the audit was considered capable of detecting irregularities including fraud

In identifying and assessing risks of material misstatement in respect if irregularities, including fraud, we considered the following:

 

 

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas: valuation of used vehicle stocks; and recognition of supplier incentives. In common with all audits under ISA’s (UK), we are also required to perform specific procedures to respond to the risk of management override.

CAR TIME MOTOR COMPANY UK LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF CAR TIME MOTOR COMPANY UK LIMITED (CONTINUED)
- 8 -

We also obtained an understanding of the legal and regularity frameworks the company operates in, focussing on provisions of those laws and regulations that had a direct effect in the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included UK Companies Act and tax legislation.

 

In addition, we considered the provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company’s ability to operate or to avoid material penalty. These included the company’s FCA regulatory requirements.

Identifying and assessing potential risks related to irregularities

Our procedures to respond to risks identified included the following:

 

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

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 member 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 member those matters we are required to state to the member 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 member, for our audit work, for this report, or for the opinions we have formed.

Paul Daly BEng FCA
Senior Statutory Auditor
For and on behalf of UHY Hacker Young Manchester LLP
20 September 2024
Chartered Accountants
Statutory Auditor
St James Building
79 Oxford Street
Manchester
M1 6HT
CAR TIME MOTOR COMPANY UK LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 APRIL 2024
- 9 -
Year
Year
ended
ended
30 April
30 April
2024
2023
Notes
£
£
Turnover
3
70,162,870
73,244,886
Cost of sales
(61,773,520)
(65,743,833)
Gross profit
8,389,350
7,501,053
Administrative expenses
(7,130,740)
(7,120,705)
Other operating expenses
-
0
(90)
Operating profit
4
1,258,610
380,258
Interest payable and similar expenses
8
(1,038,976)
(877,768)
Profit/(loss) before taxation
219,634
(497,510)
Tax on profit/(loss)
9
(77,747)
87,861
Profit/(loss) for the financial Year
141,887
(409,649)

The statement of comprehensive income account has been prepared on the basis that all operations are continuing operations.

CAR TIME MOTOR COMPANY UK LIMITED
BALANCE SHEET
AS AT
30 APRIL 2024
30 April 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
10
1,194,097
1,212,409
Current assets
Stocks
12
12,000,677
14,306,223
Debtors
13
2,818,755
2,806,899
Cash at bank and in hand
1,649,679
1,191,808
16,469,111
18,304,930
Creditors: amounts falling due within one year
14
(15,072,468)
(17,016,734)
Net current assets
1,396,643
1,288,196
Total assets less current liabilities
2,590,740
2,500,605
Creditors: amounts falling due after more than one year
15
(1,078,125)
(1,125,000)
Provisions for liabilities
Deferred tax liability
18
72,790
77,667
(72,790)
(77,667)
Net assets
1,439,825
1,297,938
Capital and reserves
Called up share capital
17
100
100
Profit and loss reserves
1,439,725
1,297,838
Total equity
1,439,825
1,297,938
The financial statements were approved by the board of directors and authorised for issue on 20 September 2024 and are signed on its behalf by:
M C Kay
Director
Company registration number 08026251 (England and Wales)
CAR TIME MOTOR COMPANY UK LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2024
- 11 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 May 2022
100
2,583,689
2,583,789
Year ended 30 April 2023:
Loss and total comprehensive income
-
(409,649)
(409,649)
Dividends
11
-
(876,202)
(876,202)
Balance at 30 April 2023
100
1,297,838
1,297,938
Period ended 30 April 2024:
Profit and total comprehensive income
-
141,887
141,887
Balance at 30 April 2024
100
1,439,725
1,439,825
CAR TIME MOTOR COMPANY UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
- 12 -
1
Accounting policies
Company information

Car Time Motor Company UK Limited is a private company limited by shares incorporated in England and Wales. The registered office is C/O UHY Hacker Young, St James' Building, 79 Oxford Street, Manchester, M1 6HT. The principal place of business is Bell Lane, Bury, Lancs, BL9 6HH.

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.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

 

 

The financial statements of the company are consolidated in the financial statements of Christian Property UK Limited. These consolidated financial statements are available from its registered office, c/o UHY Hacker Young, St James Building, 79 Oxford Street, Manchester, United Kingdom, M1 6HT.

1.2
Going concern

Atruet the time of approving the financial statements, the director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues 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 vehicles and parts and services provided in the normal course of business, and is shown net of VAT and other sales related taxes.

Sales of motor vehicles, parts and accessories are recognised when the significant risks and rewards of ownership of the goods have been transferred to the buyer, 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. In general this occurs when vehicles or parts are delivered to the customer and title has passed.

 

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.

 

Revenue from warranties will be recognised in line with the performance obligation, i.e. the period in which the customer can exercise their rights under the warranty, and therefore recognised over the life of the warranty.

CAR TIME MOTOR COMPANY UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 13 -
1.4
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:

Leasehold improvements
20% reducing balance and 5% on cost
Plant and machinery
20 - 25% reducing balance
Fixtures, fittings & equipment
20 - 25% reducing balance
Computer equipment
20 - 25% reducing balance
Motor vehicles
3 years straight line with a residual value of £1k

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.

1.5
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible 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.

1.6
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises vehicles, 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.

1.7
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.

1.8
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.

CAR TIME MOTOR COMPANY UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 14 -
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.

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 company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies that are classified as debt, are initially recognised at transaction price. 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.

CAR TIME MOTOR COMPANY UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 15 -
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 company’s contractual obligations expire or are discharged or cancelled.

1.9
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.

1.10
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.

CAR TIME MOTOR COMPANY UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 16 -
1.11
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.

1.12
Retirement benefits

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

1.13
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 leases asset are consumed.

1.14
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the director is 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.

CAR TIME MOTOR COMPANY UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
2
Judgements and key sources of estimation uncertainty
(Continued)
- 17 -
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.

Used vehicle stock

Used vehicle stock is a depreciating stock item and devalues monthly, making the estimated stock value uncertain. The carrying value of used vehicle stock at the year end of the period was £12,000,677 (2023: £14,306,223). Consideration has been given by the directors to the level of provision against vehicle stocks. In determining the provision required the directors have used guidance from independent valuation tools and their knowledge of the industry.

Debit backs

Debit backs are provided against finance commissions which could potentially be clawed back by the manufacturers. The carrying value of the debit back provision at the year end of the period was £113,500 (2023: £244,965).

 

The directors have taken these estimates from their knowledge of the industry and guidance from industry experts.

Warranty income

The company receives income from the sale of warranty packages and recognises them as revenue when they are earned. Specifically, a proportion of the total warranty package is recognised when the associated vehicle sale is recognised as revenue with the remainder of the package recognised in the profit and loss account over the remaining life of the warranty.

Deferred warranty income included in other creditors was £1,029,160 (2023: £881,392).

 

3
Turnover
2024
2023
£
£
Turnover analysed by class of business
Sale of vehicles and parts
67,523,246
70,465,369
Commissions
2,639,624
2,779,517
70,162,870
73,244,886
4
Operating profit
2024
2023
Operating profit for the period is stated after charging:
£
£
Government grants
-
90
Depreciation of owned tangible fixed assets
177,320
205,848
Operating lease charges
766,000
337,318
CAR TIME MOTOR COMPANY UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 18 -
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
24,450
9,755
6
Director's remuneration
2024
2023
£
£
Remuneration for qualifying services
10,905
110,414
Company pension contributions to defined contribution schemes
-
23,333
10,905
133,747
7
Employees

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

2024
2023
Number
Number
Administration and sales
101
84
Directors
1
1
Total
102
85

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
3,336,403
3,326,123
Social security costs
316,934
326,539
Pension costs
68,252
23,333
3,721,589
3,675,995
8
Interest payable and similar expenses
2024
2023
£
£
Interest on invoice finance arrangements
112,359
276,725
Other interest on financial liabilities
924,856
597,235
Other interest
1,761
3,808
1,038,976
877,768
CAR TIME MOTOR COMPANY UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 19 -
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
72,803
-
0
Adjustments in respect of prior periods
9,821
(22,648)
Benefit arising from a previously unrecognised tax loss or credit
-
0
(59,811)
Total current tax
82,624
(82,459)
Deferred tax
Origination and reversal of timing differences
(9,988)
(5,402)
Adjustment in respect of prior periods
5,111
-
0
Total deferred tax
(4,877)
(5,402)
Total tax charge/(credit)
77,747
(87,861)

The actual charge/(credit) for the Year can be reconciled to the expected charge/(credit) for the Year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
Profit/(loss) before taxation
219,634
(497,510)
Expected tax charge/(credit) based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.49%)
54,909
(96,965)
Tax effect of expenses that are not deductible in determining taxable profit
172
2,942
Adjustments in respect of prior years
9,821
(22,648)
Permanent capital allowances in excess of depreciation
7,046
-
0
Effect of change in tax rate on deferred tax
688
(7,790)
Adjustment for deferred tax not recognised in prior year
5,111
29,962
Losses carried back
-
0
6,638
Taxation charge/(credit) for the period
77,747
(87,861)
CAR TIME MOTOR COMPANY UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 20 -
10
Tangible fixed assets
Leasehold improvements
Plant and machinery
Fixtures, fittings & equipment
Computer equipment
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 May 2023
1,463,529
365,581
463,478
137,155
-
0
2,429,743
Additions
11,302
10,161
13,999
22,338
101,208
159,008
At 30 April 2024
1,474,831
375,742
477,477
159,493
101,208
2,588,751
Depreciation and impairment
At 1 May 2023
590,453
261,715
288,892
76,274
-
0
1,217,334
Depreciation charged in the Year
90,030
23,379
42,826
16,474
4,611
177,320
At 30 April 2024
680,483
285,094
331,718
92,748
4,611
1,394,654
Carrying amount
At 30 April 2024
794,348
90,648
145,759
66,745
96,597
1,194,097
At 30 April 2023
873,076
103,866
174,586
60,881
-
0
1,212,409
11
Dividends
2024
2023
£
£
Interim paid
-
0
876,202
12
Stocks
2024
2023
£
£
Finished goods and goods for resale
12,000,677
14,306,223
13
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
700,498
632,945
Amounts owed by group undertakings
1,837,076
1,911,551
Other debtors
82,562
87,947
Prepayments and accrued income
198,619
174,456
2,818,755
2,806,899
CAR TIME MOTOR COMPANY UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 21 -
14
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans
16
137,500
500,000
Trade creditors
13,207,027
14,551,291
Corporation tax
242,757
170,133
Other taxation and social security
262,669
470,216
Other creditors
1,145,870
1,144,738
Accruals and deferred income
76,645
180,356
15,072,468
17,016,734

Included within trade creditors are vehicle stocking finance creditors totalling £10,924,029 (2023: £11,799,425). Vehicle stocking finance creditors are secured against the vehicles concerned.

15
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans and overdrafts
16
1,078,125
1,125,000

During the financial year 30 April 2021, the company received £2,500,000 in respect of the Coronavirus Business Interruption Loan Scheme (CBILS).

Included in creditors: amounts due within one year is £137,500 (2023: £500,000) and included in creditors: amounts due after one year is £1,078,125 (2023: £1,125,000).

On 12 January 2024, the loan was extended by 4 years and payments adjusted from £125,000 per quarter to £34,375 per quarter with final payment expected on 13 May 2030. Interest on the loan is charge at 3.8% plus the base rate.

 

The loan is partially secured under the CBIL Scheme guarantee.

Amounts included above which fall due after five years are as follows:
Payable by instalments
528,125
-
16
Loans and overdrafts
2024
2023
£
£
Bank loans
1,215,625
1,625,000
Payable within one year
137,500
500,000
Payable after one year
1,078,125
1,125,000
CAR TIME MOTOR COMPANY UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 22 -
17
Share capital
2024
2023
£
£
Ordinary share capital
Issued and fully paid
100 Ordinary shares of £1 each
100
100
18
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
74,757
77,667
Short term timing differences
(1,967)
-
72,790
77,667
2024
Movements in the Year:
£
Liability at 1 May 2023
77,667
Credit to profit or loss
(4,877)
Liability at 30 April 2024
72,790
19
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
68,252
23,333

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

CAR TIME MOTOR COMPANY UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 23 -
20
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2024
2023
£
£
Within one year
-
0
5,333
21
Related party transactions

The company has taken advantage of the exemption from disclosing transactions with 100% owned group companies under FRS102 Section 33.

22
Ultimate controlling party

The immediate and ultimate parent company is Christian Property UK Limited a company registered in England and Wales.

2024-04-302023-05-01falseCCH SoftwareCCH Accounts Production 2024.210M C KayD R Woodfalsefalse080262512023-05-012024-04-3008026251bus:Director12023-05-012024-04-3008026251bus:Director22023-05-012024-04-3008026251bus:RegisteredOffice2023-05-012024-04-30080262512024-04-30080262512022-05-012023-04-3008026251core:RetainedEarningsAccumulatedLosses2022-05-012023-04-3008026251core:RetainedEarningsAccumulatedLosses2023-05-012024-04-30080262512023-04-3008026251core:LeaseholdImprovements2024-04-3008026251core:PlantMachinery2024-04-3008026251core:FurnitureFittings2024-04-3008026251core:ComputerEquipment2024-04-3008026251core:MotorVehicles2024-04-3008026251core:LeaseholdImprovements2023-04-3008026251core:PlantMachinery2023-04-3008026251core:FurnitureFittings2023-04-3008026251core:ComputerEquipment2023-04-3008026251core:MotorVehicles2023-04-3008026251core:CurrentFinancialInstrumentscore:WithinOneYear2024-04-3008026251core:CurrentFinancialInstrumentscore:WithinOneYear2023-04-3008026251core:Non-currentFinancialInstrumentscore:AfterOneYear2024-04-3008026251core:Non-currentFinancialInstrumentscore:AfterOneYear2023-04-3008026251core:CurrentFinancialInstruments2024-04-3008026251core:CurrentFinancialInstruments2023-04-3008026251core:ShareCapital2024-04-3008026251core:ShareCapital2023-04-3008026251core:RetainedEarningsAccumulatedLosses2024-04-3008026251core:RetainedEarningsAccumulatedLosses2023-04-3008026251core:ShareCapital2022-04-3008026251core:RetainedEarningsAccumulatedLosses2022-04-3008026251core:LeaseholdImprovements2023-05-012024-04-3008026251core:PlantMachinery2023-05-012024-04-3008026251core:FurnitureFittings2023-05-012024-04-3008026251core:ComputerEquipment2023-05-012024-04-3008026251core:MotorVehicles2023-05-012024-04-300802625112023-05-012024-04-300802625112022-05-012023-04-3008026251core:UKTax2023-05-012024-04-3008026251core:UKTax2022-05-012023-04-300802625122023-05-012024-04-300802625122022-05-012023-04-300802625132023-05-012024-04-300802625132022-05-012023-04-3008026251core:LeaseholdImprovements2023-04-3008026251core:PlantMachinery2023-04-3008026251core:FurnitureFittings2023-04-3008026251core:ComputerEquipment2023-04-3008026251core:MotorVehicles2023-04-30080262512023-04-3008026251core:Non-currentFinancialInstruments2024-04-3008026251core:Non-currentFinancialInstruments2023-04-3008026251core:WithinOneYear2024-04-3008026251core:WithinOneYear2023-04-3008026251bus:PrivateLimitedCompanyLtd2023-05-012024-04-3008026251bus:FRS1022023-05-012024-04-3008026251bus:Audited2023-05-012024-04-3008026251bus:FullAccounts2023-05-012024-04-30xbrli:purexbrli:sharesiso4217:GBP