REGISTERED NUMBER: |
R.T. RATE LIMITED |
STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
REGISTERED NUMBER: |
R.T. RATE LIMITED |
STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
R.T. RATE LIMITED (REGISTERED NUMBER: 00553972) |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
Page |
Company Information | 1 |
Chairman's Report | 2 |
Strategic Report | 4 |
Report of the Directors | 5 |
Report of the Independent Auditors | 7 |
Statement of Income and Retained Earnings | 11 |
Statement of Financial Position | 12 |
Statement of Cash Flows | 14 |
Notes to the Statement of Cash Flows | 15 |
Notes to the Financial Statements | 17 |
R.T. RATE LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants and |
Statutory Auditors |
21 Lodge Lane |
Grays |
Essex |
RM17 5RY |
R.T. RATE LIMITED (REGISTERED NUMBER: 00553972) |
CHAIRMAN'S REPORT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
I would like to start by congratulating the team at Rates Ford for the hard work and dedication they have put in and winning the Prestige Ford Chairman's award for the 18th consecutive year. |
Now to the business part of the accounts. |
To say it has been a challenging year would be an understatement, with the delayed effects of Covid and various business closures. |
With the collapse of used car values at the end of 2023, there had to come a stage when values of vehicles fell and as soon as manufacturing recommenced and discounts started to enter the market there was every possibility that used values would get affected. |
The electrification confusion continues along with a change of government, customers are looking for a path to follow regarding total electric, Hybrid, Petrol and Diesel powered vehicles. |
The cost of living in respect of car purchases has also been heavily affected, with higher interest rates in 2023 and cost to change has hampered New Vehicle sales. |
Used vehicle sales have been lacking due to delayed New Vehicle supply and the cost increase of finance, PCP's have been affected by higher interest rates. |
There is no sugar coating of what has happened, and the net result is a loss. |
I am pleased to report that Aftersales has held up, thus enhancing parts profitability, combined with commercial vehicle maintenance, and has played a major part of the business. |
There is a brighter side to one bad year, the company has always made sure that profits are re invested for downturns in the market. |
I believe in price re-alignment, and we are experiencing that now, several businesses did not see it coming and paid the ultimate price, we have seen car supermarkets enter the market and leave. |
The year starting 2024 is still suffering the after effects of 2023, but I believe that by late 2024 most of the re-alignment would have washed out the electrification will have settled down and we will be back to profitable trading. |
The internet will play a major part of growth and profit retention, as many manufacturers have turned their attention to internet sales and with a reduction of sales outlets and I am proud to say Rates were selected as a Business Partner by Ford. |
I am also excited at the vast range of Ford vehicles that are entering the market now and in the future which includes commercial vehicles. |
I feel very confident that 2024 will be a start of building Growth, Sales and a continuation of the Aftermarket department. |
Whilst the 2023 results are disappointing, I am confident of a return to profitability in 2024. |
R.T. RATE LIMITED (REGISTERED NUMBER: 00553972) |
CHAIRMAN'S REPORT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
C.J. Rate - Chairman |
Date: 30th July 2024 |
R.T. RATE LIMITED (REGISTERED NUMBER: 00553972) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
The directors present their strategic report for the year ended 31 December 2023. |
REVIEW OF BUSINESS |
A review of the business is contained within the Chairman's Report which forms part of this Strategic Report. |
The directors consider that whilst the company has identified certain specific business risks below, they are of the opinion that suitable measures are in place to address them to ensure that ongoing operations do not affect the company's day to day obligations. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The company faces the following principal risks: |
Liquidity risk: |
The company primarily self funds its operations although periodically it utilises short term borrowing to fund any short term liquidity issues. The company's general expansion naturally creates increased pressure on its cash reserves but it has substantial support from its bankers. Additionally, the company has an existing bank loan that was taken out to fund the acquisition of land from which the company operates. |
Economic risk: |
Rising interest rates have created uncertainties for the company, but expenses and other outgoings are regularly reviewed by management to ensure that the company is operating efficiently. |
Environmental risk: |
Concerns regarding CO2 emissions and the corresponding pressure on manufacturers to develop and improve alternate engine profiles and, in particular, the Government's official policy towards combustion-engined vehicles. |
Competition risk: |
As always competition is strong in the new and used car sector with ever increasing pressure on margins and after market sales and servicing. |
GOING CONCERN |
Since the balance sheet date, the company has continued to manage cashflows and has been able to meet its financial obligations as they become due. |
The directors have reasonable grounds to assume that this will not change in the future and as such the directors continue to adopt the going concern basis of preparation of the financial statements. |
ON BEHALF OF THE BOARD: |
R.T. RATE LIMITED (REGISTERED NUMBER: 00553972) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
The directors present their report with the financial statements of the company for the year ended 31 December 2023. |
PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of a Ford main dealership, including new and used car sales, parts sales and servicing. |
DIVIDENDS |
Dividends voted in the year ended 31 December 2023 were £298,640 (2022 - £134,140). |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 January 2023 to the date of this report. |
PRIOR YEAR ADJUSTMENT |
A material adjustment has been made to the value of consignment stock held in the previous year. The directors regard this to be an appropriate adjustment on the basis that it provides a more accurate reflection of stock held at the balance sheet date. Further details of this adjustment can be seen in note 10 of the financial statements. |
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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
R.T. RATE LIMITED (REGISTERED NUMBER: 00553972) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
AUDITORS |
The auditors, CR Bland Baker Ltd, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
R.T. RATE LIMITED |
Opinion |
We have audited the financial statements of R.T. Rate Limited (the 'company') for the year ended 31 December 2023 which comprise the Statement of Income and Retained Earnings, Statement of Financial Position, Statement of Cash Flows and Notes to the Statement of Cash Flows, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, 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: |
- | give a true and fair view of the state of the company's affairs as at 31 December 2023 and of its loss for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the 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 directors are responsible for the other information. The other information comprises the information in the Annual Report, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
R.T. RATE LIMITED |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
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 Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page five, 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 necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
R.T. RATE LIMITED |
Auditors' 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 a Report of the Auditors 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. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
- We have reviewed whether there were areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our sector experience through discussion with the officers and other management (as required by auditing standards). |
- We had regard to laws and regulations in areas that directly affect the financial statements including financial reporting and taxation legislation. We considered that extent of compliance with those laws and regulations as part of our procedures on the related financial statement items. |
- With the exception of any known or possible non-compliance, and as required by auditing standards, our work in respect of these was limited to enquiry of the officers. |
- We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit. |
- We addressed the risk of fraud through management override of controls, by testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business. |
Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that 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, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed 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 are to become aware of it. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
R.T. RATE LIMITED |
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 a Report of the Auditors 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. |
for and on behalf of |
Chartered Accountants and |
Statutory Auditors |
21 Lodge Lane |
Grays |
Essex |
RM17 5RY |
R.T. RATE LIMITED (REGISTERED NUMBER: 00553972) |
STATEMENT OF INCOME AND |
RETAINED EARNINGS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2023 | 2022 |
as restated |
Notes | £ | £ | £ | £ |
TURNOVER | 3 |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
(557,120 | ) | 1,482,499 |
Other operating income | 4 |
OPERATING (LOSS)/PROFIT | 6 | ( |
) |
Income from fixed asset investments |
Interest receivable and similar income |
11,780 | 2,540 |
(508,643 | ) | 1,519,909 |
Gain/loss on revaluation of investments | 6,959 | 690 |
(501,684 | ) | 1,520,599 |
Interest payable and similar expenses | 7 |
(LOSS)/PROFIT BEFORE TAXATION | ( |
) |
Tax on (loss)/profit | 8 | ( |
) |
(LOSS)/PROFIT FOR THE FINANCIAL YEAR |
( |
) |
Retained earnings at beginning of year |
Dividends on equity shares | 9 | ( |
) | ( |
) |
RETAINED EARNINGS AT END OF YEAR |
R.T. RATE LIMITED (REGISTERED NUMBER: 00553972) |
STATEMENT OF FINANCIAL POSITION |
31 DECEMBER 2023 |
2023 | 2022 |
as restated |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 11 |
Investments | 12 |
CURRENT ASSETS |
Stocks | 13 |
Debtors | 14 |
Investments | 15 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 16 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
17 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 21 | ( |
) | ( |
) |
NET ASSETS |
R.T. RATE LIMITED (REGISTERED NUMBER: 00553972) |
STATEMENT OF FINANCIAL POSITION - continued |
31 DECEMBER 2023 |
2023 | 2022 |
as restated |
Notes | £ | £ | £ | £ |
CAPITAL AND RESERVES |
Called up share capital | 22 |
Share premium | 23 |
Revaluation reserve - fixed |
assets | 23 |
Capital redemption reserve | 23 |
Retained earnings | 23 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
R.T. RATE LIMITED (REGISTERED NUMBER: 00553972) |
STATEMENT OF CASH FLOWS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2023 | 2022 |
as restated |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 |
Interest paid | ( |
) | ( |
) |
Tax paid | ( |
) | ( |
) |
Net cash from operating activities | ( |
) | ( |
) |
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Sale of tangible fixed assets |
Interest received |
Dividends received |
Net cash from investing activities | ( |
) | ( |
) |
Cash flows from financing activities |
New loans in year |
Loan repaid in year | ( |
) | ( |
) |
Amount introduced by directors | 36,503 | - |
Amount withdrawn by directors | - | (109,509 | ) |
Equity dividends paid | ( |
) | ( |
) |
Net cash from financing activities | ( |
) |
Decrease in cash and cash equivalents | ( |
) | ( |
) |
Cash and cash equivalents at beginning of year |
2 |
637,648 |
Cash and cash equivalents at end of year |
2 |
( |
) |
184,173 |
R.T. RATE LIMITED (REGISTERED NUMBER: 00553972) |
NOTES TO THE STATEMENT OF CASH FLOWS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
1. | RECONCILIATION OF (LOSS)/PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2023 | 2022 |
as restated |
£ | £ |
(Loss)/profit before taxation | ( |
) |
Depreciation charges |
Loss/(profit) on disposal of fixed assets | ( |
) |
Gain on revaluation of fixed assets | (6,959 | ) | (690 | ) |
Finance costs | 106,749 | 38,457 |
Finance income | (11,780 | ) | (2,540 | ) |
(312,260 | ) | 1,685,314 |
Increase in stocks | ( |
) | ( |
) |
Increase in trade and other debtors | ( |
) | ( |
) |
Increase/(decrease) in trade and other creditors | ( |
) |
Cash generated from operations |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts: |
Year ended 31 December 2023 |
31.12.23 | 1.1.23 |
£ | £ |
Cash and cash equivalents | 46,431 | 184,173 |
Bank overdrafts | ( |
) |
(193,381 | ) | 184,173 |
Year ended 31 December 2022 |
31.12.22 | 1.1.22 |
as restated |
£ | £ |
Cash and cash equivalents | 184,173 | 637,648 |
R.T. RATE LIMITED (REGISTERED NUMBER: 00553972) |
NOTES TO THE STATEMENT OF CASH FLOWS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
At 1.1.23 | Cash flow | At 31.12.23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 184,173 | (137,742 | ) | 46,431 |
Bank overdrafts | - | (239,812 | ) | (239,812 | ) |
184,173 | ( |
) | (193,381 | ) |
Liquid resources |
Current asset investments | 33,158 | 6,958 | 40,116 |
33,158 | 6,958 | 40,116 |
Debt |
Debts falling due within 1 year | (1,164,752 | ) | (277,808 | ) | (1,442,560 | ) |
Debts falling due after 1 year | (1,496,164 | ) | 86,526 | (1,409,638 | ) |
(2,660,916 | ) | (191,282 | ) | (2,852,198 | ) |
Total | (2,443,585 | ) | (561,878 | ) | (3,005,463 | ) |
R.T. RATE LIMITED (REGISTERED NUMBER: 00553972) |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
1. | STATUTORY INFORMATION |
R.T. Rate Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Significant judgements and estimates |
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 the current and future periods. |
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 provisions |
New vehicle consignment inventory is held at consignment value, where financial risks are borne by the company. Due to the nature of consignment stock, items of this class can be removed by the dealer at any time and therefore no longer become an asset of the company. |
Used vehicle inventory is a depreciating stock item and devalues monthly, making the estimated stock vale uncertain. |
Consideration of the above factors have been given by the directors for any level of provisions against vehicle stock values. In determining the provisions required, the directors have used guidance from independent valuation tools and their knowledge of the industry. |
R.T. RATE LIMITED (REGISTERED NUMBER: 00553972) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2. | ACCOUNTING POLICIES - continued |
Turnover |
Turnover represents net invoiced sale of goods and work done, excluding value added tax together with commissions receivable and rental income receivable in respect of operating leases. |
Turnover from the sale of new vehicles is recognised at the point in which the customer vehicle is registered. Additionally, Ford offers bonuses and incentives when selling new vehicles. Bonuses are subsequently recognised as part of revenue when Ford confirms the value of each bonus payable. |
Turnover is recognised on used vehicles at the point that the vehicle is delivered to, or collected by the customer. |
Turnover generated from servicing and repairs is recognised at the point in which the service is performed. |
Tangible fixed assets |
Freehold property | - |
Plant and machinery | - |
Motor vehicles | - |
Motor vehicle depreciation is in respect of assets leased to customers. |
Stocks |
Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow moving items. |
Consignment vehicles are new, unregistered vehicles owned by the manufacturers. New consignment vehicles are included as an asset in the balance sheet at consignment value where they are bearing a finance charge at the balance sheet date. New consignment vehicles which are not bearing a finance charge are not included as an asset in the Statement of Financial Position. |
The directors consider that consignment stocks of new vehicles held by the company on behalf of the Ford Motor Company, meet the criteria of Financial Reporting Standard 102 to be recognised as assets. Accordingly, such new vehicles are shown as stock in the accounts with a corresponding liability being shown within creditors falling due within one year. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date. |
R.T. RATE LIMITED (REGISTERED NUMBER: 00553972) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2. | ACCOUNTING POLICIES - continued |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable for the year are charged to the profit and loss account. |
Current asset investments |
Current asset investments are stated at their mid-price at the statement of financial position date. Surpluses or deficits are recognised in the statement of comprehensive income. |
Vehicles leased to customers |
Vehicles leased to customers are included in fixed assets and depreciated in accordance with the policy stated above. Operating lease income is accounted for on a straight line basis and is included within the comprehensive income statement when receivable. |
3. | TURNOVER |
The turnover and loss (2022 - profit) before taxation are attributable to the one principal activity of the company. |
Turnover includes operating lease income totalling £52,441 (2022 - £44,097). |
4. | OTHER OPERATING INCOME |
2023 | 2022 |
as restated |
£ | £ |
Rents received |
Sundry receipts | 2,292 | 1,493 |
Rebates and commissions |
Management charge income |
36,697 | 34,870 |
R.T. RATE LIMITED (REGISTERED NUMBER: 00553972) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
5. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
as restated |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
2023 | 2022 |
as restated |
Sales | 22 | 26 |
Operatives | 23 | 27 |
Administrative | 21 | 25 |
Directors | 4 | 4 |
2023 | 2022 |
as restated |
£ | £ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes |
Information regarding the highest paid director is as follows: |
2023 | 2022 |
as restated |
£ | £ |
Emoluments etc |
Pension contributions to money purchase schemes |
R.T. RATE LIMITED (REGISTERED NUMBER: 00553972) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
6. | OPERATING (LOSS)/PROFIT |
The operating loss (2022 - operating profit) is stated after charging/(crediting): |
2023 | 2022 |
as restated |
£ | £ |
Operating lease income | ( |
) | ( |
) |
Depreciation - owned assets |
Loss/(profit) on disposal of fixed assets | ( |
) |
Auditors' remuneration |
Other non- audit services |
Operating leases - land and buildings |
7. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
as restated |
£ | £ |
Bank loan interest |
8. | TAXATION |
Analysis of the tax (credit)/charge |
The tax (credit)/charge on the loss for the year was as follows: |
2023 | 2022 |
as restated |
£ | £ |
Current tax: |
UK corporation tax |
Adjustment to previous years corporation tax provision |
(99,030 |
) |
608 |
Total current tax | ( |
) |
Deferred tax |
Tax on (loss)/profit | ( |
) |
UK corporation tax has been charged at 25% . |
R.T. RATE LIMITED (REGISTERED NUMBER: 00553972) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
8. | TAXATION - continued |
Reconciliation of total tax (credit)/charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
2023 | 2022 |
as restated |
£ | £ |
(Loss)/profit before tax | ( |
) |
(Loss)/profit multiplied by the standard rate of corporation tax in the UK of |
( |
) |
Effects of: |
Adjustments to tax charge in respect of previous periods |
Adjustment to reflect tax actually provided in financial statements | 7 | (979 | ) |
Expenses not allowable for tax purposes | 49,697 | 35,551 |
Capital allowances | (32,236 | ) | (43,420 | ) |
Balancing charge | 2,533 | 2,241 |
Tax carried back to the earlier year and recoverable at lower rate of tax | 31,707 |
- |
Movement in deferred taxation | 17,500 | 49,700 |
Total tax (credit)/charge | (81,530 | ) | 325,308 |
9. | DIVIDENDS ON EQUITY SHARES |
2023 | 2022 |
£ | £ |
Dividends in cash | 298,640 | 134,140 |
298,640 | 134,140 |
R.T. RATE LIMITED (REGISTERED NUMBER: 00553972) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
10. | PRIOR YEAR ADJUSTMENT |
The financial statements contain a prior year restatement in relation to the original measurement of consignment stock and the associated creditor reflected in the financial statements. A reassessment of the methodology used with regards to the measurement of consignment stock has identified a material difference in both the stock and creditor values reflected on the statement of financial position. The directors have corrected this as a prior year adjustment, as the directors concluded that this information should reasonably have been available in 2022, and allows for greater comparability with other companies in the same sector. |
The impact of this adjustment in the financial statements to 31st December 2022 is to reduce the value of consignment stock by £6.1m and to similarly reduce the corresponding consignment liability by £6.1m. |
There is no impact on the comparative period income statement, cash flow statement or overall net asset position of the company. |
11. | TANGIBLE FIXED ASSETS |
Improvements |
Freehold | to | Plant and | Motor |
property | property | machinery | vehicles | Totals |
£ | £ | £ | £ | £ |
COST OR VALUATION |
At 1 January 2023 |
Additions |
Disposals | ( |
) | ( |
) | ( |
) | ( |
) |
At 31 December 2023 |
DEPRECIATION |
At 1 January 2023 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) | ( |
) | ( |
) |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
Motor vehicle cost and depreciation above includes assets leased to customers under operating leases. |
R.T. RATE LIMITED (REGISTERED NUMBER: 00553972) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
11. | TANGIBLE FIXED ASSETS - continued |
Cost or valuation at 31 December 2023 is represented by: |
Trading premises | Plant and machinery etc | Totals |
£ | £ | £ |
Stated at cost | 3,429,319 | 1,632,094 | 5,061,413 |
Stated at valuation in 1999 | 350,000 | - | 350,000 |
3,779,319 | 1,632,094 | 5,411,413 |
If freehold land and buildings had not been revalued they would have been included at the following historical cost: |
2023 | 2022 |
£ | £ |
Cost | 3,897,666 | 3,831,646 |
Aggregate depreciation | 781,120 | 714,308 |
Approximate cost of land in freehold land and buildings | 1,975,260 | 1,975,260 |
Freehold land and buildings were valued, on an open market basis, on 1 April 1999 by Messrs Lambert Smith Hampton. |
12. | FIXED ASSET INVESTMENTS |
Unlisted |
investments |
£ |
COST |
At 1 January 2023 |
and 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
R.T. RATE LIMITED (REGISTERED NUMBER: 00553972) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
13. | STOCKS |
2023 | 2022 |
as restated |
£ | £ |
Motor vehicles - new and used |
Parts, accessories and consumables | 182,854 | 149,724 |
There is no material difference between the balance sheet value of stocks and their replacement cost. |
Motor vehicles - new and used includes the stock of vehicles held on consignment from Ford Motor Company. These stocks have been included in the balance sheet in accordance with Financial Reporting Standard 102. The total value of consignment vehicles included within stocks is £2,489,310 (2022 - £506,510). A corresponding liability is shown within trade creditors, see note 16. |
14. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
as restated |
£ | £ |
Trade debtors |
Other debtors |
Directors' current accounts | 3,725 | - |
Taxation |
Prepayments |
15. | CURRENT ASSET INVESTMENTS |
2023 | 2022 |
as restated |
£ | £ |
Listed investments | 40,116 | 33,158 |
Market value of listed investments at 31 December 2023 - £ 40,116 (2022 - £ 33,158 ). |
Current asset investments have been valued at their closing price at the balance sheet date. |
R.T. RATE LIMITED (REGISTERED NUMBER: 00553972) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
16. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
as restated |
£ | £ |
Bank loans and overdrafts (see note 18) |
Other loans (see note 18) | 1,396,777 | 1,090,854 |
Trade creditors - consignment stock |
Trade creditors - other | 884,061 | 819,459 |
Amounts owed to group undertakings |
Taxation |
Social security and other taxes |
Other creditors | 631,689 | 961,748 |
Directors' current accounts | 71,231 | 31,003 |
Accruals |
Trade creditors include £2,574,911 (2022 - £682,270) in accordance with Financial Reporting Standard 102 as explained in note 13. |
17. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2023 | 2022 |
as restated |
£ | £ |
Bank loans (see note 18) |
18. | LOANS |
An analysis of the maturity of loans is given below: |
2023 | 2022 |
as restated |
£ | £ |
Amounts falling due within one year or on demand: |
Bank overdrafts |
Bank loans |
Stocking loans | 1,116,777 | 810,854 |
Other loans | 280,000 | 280,000 |
Amounts falling due between one and two years: |
Bank loans - 1-2 years |
R.T. RATE LIMITED (REGISTERED NUMBER: 00553972) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
18. | LOANS - continued |
2023 | 2022 |
as restated |
£ | £ |
Amounts falling due between two and five years: |
Bank loans - 2-5 years |
Amounts falling due in more than five years: |
Repayable by instalments |
Bank loans more 5 yr by instal | 1,190,084 | 1,184,173 |
19. | LEASING AGREEMENTS |
Minimum lease payments under non-cancellable operating leases fall due as follows: |
2023 | 2022 |
as restated |
£ | £ |
Within one year |
Between one and five years |
20. | SECURED DEBTS |
The following secured debts are included within creditors: |
2023 | 2022 |
as restated |
£ | £ |
Bank loans |
Stocking loans | 1,116,777 | 810,854 |
Consignment stock | 2,574,911 | 682,270 |
The stocking loan is secured against individual units of vehicle stock. |
FCE Bank Plc has registered a debenture over all assets of the company, both fixed and floating charges, as security for any amounts owing from time to time thereon. |
The bank loan is secured against the company's land and buildings. |
R.T. RATE LIMITED (REGISTERED NUMBER: 00553972) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
21. | PROVISIONS FOR LIABILITIES |
2023 | 2022 |
as restated |
£ | £ |
Deferred tax | 98,000 | 80,500 |
Deferred |
tax |
£ |
Balance at 1 January 2023 |
Provided during year |
Balance at 31 December 2023 |
22. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | as restated |
£ | £ |
Ordinary | £1 | 6,666 | 6,666 |
23. | RESERVES |
Revaluation |
reserve - | Capital |
Retained | Share | fixed | redemption |
earnings | premium | assets | reserve | Totals |
£ | £ | £ | £ | £ |
At 1 January 2023 | 8,108,829 |
Deficit for the year | ( |
) | ( |
) |
Dividends on equity shares | ( |
) | ( |
) |
At 31 December 2023 | 7,283,286 |
24. | PENSION COMMITMENTS |
The company operates two separate defined contribution pension schemes for the directors and staff. The assets of each scheme are held separately from those of the company in independently administered funds. The pension cost charge represents contributions payable by the company to the schemes and amounted to £90,982 (2022 - £87,326). At the balance sheet date there were £2,360 unpaid contributions (2022 - £11,552). |
R.T. RATE LIMITED (REGISTERED NUMBER: 00553972) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
25. | ULTIMATE PARENT COMPANY |
RatesFord Store Limited is regarded by the directors as being the company's ultimate parent company. |
26. | RELATED PARTY DISCLOSURES |
2023 | 2022 |
as restated |
£ | £ |
Rent paid to related party | 90,000 | 90,000 |
Amount due to related parties |
2023 | 2022 |
as restated |
£ | £ |
Amount due from related party |
During the year, a total of key management personnel compensation of £ |
27. | ULTIMATE CONTROLLING PARTY |
The ultimate controlling party is |