Company registration number 01725426 (England and Wales)
MOTOR WHEEL SERVICE LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
PAGES FOR FILING WITH REGISTRAR
MOTOR WHEEL SERVICE LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 8
MOTOR WHEEL SERVICE LIMITED
BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
5
1,651,973
1,593,063
Investments
6
100
100
1,652,073
1,593,163
Current assets
Debtors
8
792,626
1,152,533
Cash at bank and in hand
2,549,251
1,372,449
3,341,877
2,524,982
Creditors: amounts falling due within one year
9
(1,020,959)
(110,718)
Net current assets
2,320,918
2,414,264
Total assets less current liabilities
3,972,991
4,007,427
Provisions for liabilities
(6,756)
(9,331)
Net assets
3,966,235
3,998,096
Capital and reserves
Called up share capital
10
100
100
Profit and loss reserves
3,966,135
3,997,996
Total equity
3,966,235
3,998,096

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 25 September 2024 and are signed on its behalf by:
O. G. Smith
Director
Company registration number 01725426 (England and Wales)
MOTOR WHEEL SERVICE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
1
Accounting policies
Company information

Motor Wheel Service Limited is a private company limited by shares incorporated in England and Wales. The registered office is 55 Station Road, Beaconsfield, Buckinghamshire, United Kingdom, HP9 1QL.

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.

1.2
Going concern

After making enquiries, the directors have a reasonable expectation that the company have adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the annual report and financial statements.true

1.3
Turnover

Turnover represents amounts receivable for rental of land and buildings used in the trade of the subsidiary company and is recognised in the period to which it relates.

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:

Land and buildings freehold
Straight line over 50 years
Motor vehicles
25% reducing balance

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
Fixed asset investments

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

 

1.6
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.

MOTOR WHEEL SERVICE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 3 -
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

Basic financial assets, which include trade and other receivables and cash and bank balances, are initially measured at transaction price including transaction costs. Other financial assets classified as fair value through profit or loss are measured at fair value.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs. Financial assets classified as receivable within one year are not amortised.

Trade debtors, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as 'loans and receivables'.

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. Financial liabilities classified as payable within one year are not amortised.

 

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.

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.

MOTOR WHEEL SERVICE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 4 -
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.

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
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

1.13
Cash flow

The financial statements do not include a cash flow statement because the company, as a small reporting entity, is exempt from the requirement to prepare such a statement under FRS 102 Section 1A.

1.14

Group accounts

The financial statements present information about the company as an individual undertaking and not about its group. The company and its subsidiary undertaking comprise a small-sized group. The company has therefore taken advantage of the exemptions provided by section 399 of the Companies Act 2006 not to prepare group accounts.

2
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Depreciation of tangible fixed assets
37,314
37,476
MOTOR WHEEL SERVICE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 5 -
3
Employees

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

2023
2022
Number
Number
Total
-
0
-
0
4
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
69,405
35,190
Adjustments in respect of prior periods
-
0
(171)
Total current tax
69,405
35,019
Deferred tax
Origination and reversal of timing differences
(2,575)
9,824
Total tax charge
66,830
44,843
5
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 1 January 2023
1,751,138
74,315
1,825,453
Additions
-
0
96,224
96,224
At 31 December 2023
1,751,138
170,539
1,921,677
Depreciation and impairment
At 1 January 2023
209,239
23,151
232,390
Depreciation charged in the year
24,523
12,791
37,314
At 31 December 2023
233,762
35,942
269,704
Carrying amount
At 31 December 2023
1,517,376
134,597
1,651,973
At 31 December 2022
1,541,899
51,164
1,593,063
MOTOR WHEEL SERVICE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 6 -
6
Fixed asset investments
2023
2022
£
£
Investments in subsidiaries
100
100
Movements in fixed asset investments
Shares in group undertakings
£
Cost or valuation
At 1 January 2023 & 31 December 2023
100
Carrying amount
At 31 December 2023
100
At 31 December 2022
100
7
Subsidiaries

These financial statements are separate company financial statements for Motor Wheel Service Limited.

Details of the company's subsidiaries at 31 December 2023 are as follows:

Name of undertaking and country of
Nature of business
Class of
% Held
incorporation or residency
shareholding
Direct
Indirect
Motor Wheel Service International Ltd
England and Wales
Sale of specialist wheels
Ordinary
100.00
-
The aggregate capital and reserves and the result for the year of subsidiaries for the last relevant financial year were as follows:
Name of undertaking
Profit/(Loss)
Capital and Reserves
£
£
Motor Wheel Service International Ltd
178,379
2,796,681
MOTOR WHEEL SERVICE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
8
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
-
0
14,272
Corporation tax recoverable
157,326
144,183
Amounts owed by group undertakings
33,412
534,911
Other debtors
601,888
459,167
792,626
1,152,533
9
Creditors: amounts falling due within one year
2023
2022
£
£
Amounts owed to group undertakings
892,340
-
0
Corporation tax
82,548
35,190
Other taxation and social security
-
0
891
Other creditors
46,071
74,637
1,020,959
110,718
10
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
ordinary "A" shares of £1 each
51
51
51
51
ordinary "B" shares of £1 each
10
10
10
10
ordinary "C" shares of £1 each
10
10
10
10
ordinary "D" shares of £1 each
29
29
29
29
100
100
100
100

The holders of ordinary "A", "B" , "C" and "D" shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at meetings of the Company.

11
Related party transactions

Included in other debtors is a balance of £33,412 (2022: £7,128) owed by a company in which the shareholders have significant influence.

 

Included within other debtors is a balance of £162,824 (2022: £102,519) owed by a director. During the year £57,520 (2022: £Nil) was advanced to the director, £Nil (2022: £16,667) repaid and interest of £2,785 (2022: £3,285) was charged on the balance at a rate of 2.25% (2022: 3.50%) per annum.

 

Included in other debtors is a balance of £428,147 (2022: £289,206) owed by a shareholder. During the year £145,000 (2022: £Nil) was advanced to the shareholder, £14,000 (2022: £24,000) repaid and interest of £7,941 (2022: £10,392) was charged on the balance at a rate of 2.25% (2022: 3.50%) per annum.

MOTOR WHEEL SERVICE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
12
Parent company

In the current and preceding financial year the ultimate controlling party is C. E. Smith who, together with members of his immediate family, owns 100% of the issued share capital.

13
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.

The senior statutory auditor was Leighton Bower.
The auditor was Rouse Audit LLP.
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