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E. S. Hartley Limited
 
Reports and Financial Statements
 
for the financial year ended 31 December 2023



E. S. Hartley Limited
DIRECTORS AND OTHER INFORMATION

 
Directors Neil Worrall
Benjamin Molyneux
 
 
Company Registration Number 02909182
 
 
Registered Office and Business Address Ings
Kendal
Cumbria
LA8 9PY
 
 
Independent Auditors Crowley Young
Chartered Accountants
Level 1
Devonshire House
One Mayfair Place
London
W1J 8AJ
 
 
Bankers Royal Bank of Scotland
  36 St Andrew Square
  Edinburgh
  EH2 2AD
 
   
Solicitors Temple Heelis
  Bridge Mills
  Stramongate
  Kendal
  Cumbria
  LA9 4UB



E. S. Hartley Limited
STRATEGIC REPORT
for the financial year ended 31 December 2023

 
The directors present their strategic report on the company for the financial year ended 31 December 2023.
 
Review of the Company's Business
The company performed well during 2023 with the restricted new vehicle supply and the related shortage of good quality used vehicles. New vehicle unit sales were in line with the previous year.

Despite the positive trading performance of the company, this has been offset by increased operating costs which has contributed to decreased profitability in the year.

Net assets have increased to £1.71m from £1.54m in the previous year. The directors are pleased with the overall performance of the company.
       
Principal Risks and Uncertainties
The directors are aware of the inherent risks within the motor industry. The company monitors and manages these risks through internal controls and maintaining awareness of the markets within which it operates.

Economic Risk
Significant political events and changing economic landscape in the UK and overseas can impact the company's business through, for example, supply chain disruption, labour costs and supply as well as the introduction of policies that may directly impact the company's business model. These risks are considered when setting the company's business strategy and operating model as well as working closely with our key suppliers to mitigate any supply chain risks.

Government regulations
Changes in the regulatory environment may affect trading conditions. Consultation with government agencies and our involvement with leading industry groups and stakeholders help to monitor, understand, and plan for proposed changes.

Health and safety
The directors consider this to be an area of critical importance with the company promoting a positive safety culture, ensuring the wellbeing of all parties involved with our work. Health and safety or environmental breaches can impact employees and undermine the creation of a great place to work.

       
Financial Key Performance Indicators
Each new and used unit sale has budgetary and financial reporting procedures, supported by appropriate key performance indicators to manage credit, liquidity and other financial risk. Key performance indicators used by management include turnover and profitability per vehicle. The business continually assesses performance against budget.
       
Section 172 Statement
The board of directors plan for the business is designed to have a long term beneficial impact on the company and to contribute to its success.

Our employees are fundamental to the delivery of our plan. We aim to be a responsible employer in our approach to the pay and benefits our employees receive. The health, safety and well-being of our employees is one of our primary considerations in the way we do business.

We act responsibly and fairly in our dealings with our suppliers and co-operate with our regulators, all of whom are integral to the successful delivery of our plan.

We consider how our business impacts the community and the environment.

As the Board of Directors, our intention is to behave responsibly and we ensure that all employees at management level act in a responsible manner, operating within the high standards of business conduct and good governance expected for a a business such as ours.

Our intention is to behave responsibly towards our shareholders and treat them fairly so they too may benefit from the successful delivery of our plan.
       
       
On behalf of the board
       
       
___________________________      
Neil Worrall      
Director      
       
       
___________________________
Benjamin Molyneux
Director
       
25 September 2024      



E. S. Hartley Limited
DIRECTORS' REPORT
for the financial year ended 31 December 2023

 
The directors present their report and the audited financial statements for the financial year ended 31 December 2023.
 
Principal Activity
Sale of motorhomes.
     
Results and Dividends
The profit for the financial year after providing for depreciation and taxation amounted to £241,439 (2022 - £637,195).
The directors have paid an interim dividend amounting to £72,000 and they do not recommend payment of a final dividend.
     
Directors
The directors who served during the financial year are as follows:
     
Neil Worrall
Benjamin Molyneux
   
There were no changes in shareholdings between 31 December 2023 and the date of signing the financial statements.
     
Future Developments
The company plans to continue its present activities and current trading levels. Employees are kept as fully informed as practicable about developments within the business.
     
Events After the End of the Reporting Period
There have been no significant events affecting the company since the financial year-end.
     
Political Contributions
The company did not make any disclosable political donations in the current financial year.
     
Statement of Directors' Responsibilities
             
The directors are responsible for preparing the Strategic Report, Directors' 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 FRS 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 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.
                 
Disclosure of Information to Auditor
Each persons who are directors at the date of approval of this report confirms that:
In so far as the directors are aware:
■there is no relevant audit information (information needed by the company's auditor in connection with preparing the auditor's report) of which the company's auditor is unaware, and
■the directors have taken all the steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.
     
Auditors
Crowley Young, (Chartered Accountants), were appointed auditors by the directors to fill the casual vacancy and they have expressed their willingness to continue in office in accordance with the provisions of Section 485 of the Companies Act 2006.
     
     
On behalf of the board
     
     
___________________________
Neil Worrall
Director
     
     
___________________________
Benjamin Molyneux
Director
     
25 September 2024



INDEPENDENT AUDITOR'S REPORT
to the Shareholders of E. S. Hartley Limited

 
Report on the audit of the financial statements
 
Opinion
We have audited the financial statements of E. S. Hartley Limited ('the company') for the financial year ended 31 December 2023 which comprise the Income Statement, the Statement of Financial Position, the Statement of Changes in Equity, the Statement of Cash Flows and the related notes to the financial statements, including significant accounting policies set out in note . The financial reporting framework that has been applied in their preparation is applicable Law and United Kingdom Accounting Standards, including FRS 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 profit for the financial 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 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 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 the date when the financial statements are authorised for issue.
 
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
 
Other Information
The other information comprises the information included in the annual report other than the financial statements and our Auditor's Report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
 
Opinion 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
 
Matters on which we are required to report by exception
In the light of our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified any material misstatements in the Strategic Report and the Directors' Report.
 
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
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 for the financial statements
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 they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
 
In preparing the financial statements, the directors are responsible for assessing the 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 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:
 
Our procedures included: enquiry of management and those charged with Governance around actual and potential litigation and claims; enquiry of entity staff in tax and compliance functions to identify any instances of non-compliance with laws and regulations; reviewing minutes of meetings of those charged with governance; reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations; auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness.
 
A further description of our responsibilities for the audit of the financial statements is contained in the appendix to this report, located at page , which is to be read as an integral part of our report.
 
Use of our report
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
 
 
 
__________________________________
Fintan Crowley (Senior Statutory Auditor)
for and on behalf of
CROWLEY YOUNG
Chartered Accountants
Level 1
Devonshire House
One Mayfair Place
London
W1J 8AJ
 
25 September 2024



E. S. Hartley Limited
APPENDIX TO THE INDEPENDENT AUDITOR'S REPORT

Further information regarding the scope of our responsibilities as auditor
 
As part of an audit in accordance with ISAs (UK), we exercise professional judgement and maintain professional scepticism throughout the audit. We also:
 
Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
 
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company's internal control.
 
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.
 
Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our Auditor's Report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our Auditor's Report. However, future events or conditions may cause the company to cease to continue as a going concern.
 
Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
 
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.



E. S. Hartley Limited
INCOME STATEMENT
for the financial year ended 31 December 2023
2023 2022
Notes £ £

Turnover 3 20,437,275 20,289,788
 
Cost of sales (19,178,695) (18,889,289)
───────── ─────────
Gross profit 1,258,580 1,400,499
 
Administrative expenses (660,470) (506,388)
───────── ─────────
Operating profit 4 598,110 894,111
 
Interest receivable and similar income 5 2,445 253
Interest payable and similar expenses 6 (265,219) (94,098)
───────── ─────────
Profit before taxation 335,336 800,266
 
Tax on profit 8 (93,897) (163,071)
───────── ─────────
Profit for the financial year 18 241,439 637,195
───────── ─────────
Total comprehensive income 241,439 637,195
    ═════════   ═════════



E. S. Hartley Limited
Company Registration Number: 02909182
STATEMENT OF FINANCIAL POSITION
as at 31 December 2023

2023 2022
Notes £ £
 
Non-Current Assets
Property, plant and equipment 10 80,938 30,659
───────── ─────────
 
Current Assets
Stocks 11 7,768,129 5,056,520
Debtors 12 348,054 125,099
Cash and cash equivalents 13 288,435 119,781
───────── ─────────
8,404,618 5,301,400
───────── ─────────
Creditors: amounts falling due within one year 14 (6,415,120) (3,576,443)
───────── ─────────
Net Current Assets 1,989,498 1,724,957
───────── ─────────
Total Assets less Current Liabilities 2,070,436 1,755,616
 
Creditors:
amounts falling due after more than one year 15 (361,859) (216,478)
───────── ─────────
Net Assets 1,708,577 1,539,138
═════════ ═════════
 
Capital and Reserves
Called up share capital 17 150,000 150,000
Retained earnings 18 1,558,577 1,389,138
───────── ─────────
Equity attributable to owners of the company 1,708,577 1,539,138
═════════ ═════════
 
           
Approved by the Board and authorised for issue on 25 September 2024 and signed on its behalf by
           
           
________________________________          
Neil Worrall          
Director          
           
           
________________________________
Benjamin Molyneux
Director
           



E. S. Hartley Limited
STATEMENT OF CHANGES IN EQUITY
as at 31 December 2023

Called up Retained Total
share earnings
capital
£ £ £
 
At 1 January 2022 150,000 823,943 973,943
───────── ───────── ─────────
Profit for the financial year - 637,195 637,195
───────── ───────── ─────────
Payment of dividends - (72,000) (72,000)
  ───────── ───────── ─────────
At 31 December 2022 150,000 1,389,138 1,539,138
  ───────── ───────── ─────────
Profit for the financial year - 241,439 241,439
  ───────── ───────── ─────────
Payment of dividends - (72,000) (72,000)
  ───────── ───────── ─────────
At 31 December 2023 150,000 1,558,577 1,708,577
  ═════════ ═════════ ═════════



E. S. Hartley Limited
STATEMENT OF CASH FLOWS
for the financial year ended 31 December 2023
2023 2022
Notes £ £

Cash flows from operating activities
Profit for the financial year 241,439 637,195
Adjustments for:
Interest receivable and similar income (2,445) (253)
Interest payable and similar expenses 265,219 94,098
Tax on profit on ordinary activities 93,897 163,071
Depreciation 15,197 7,602
───────── ─────────
613,307 901,713
Movements in working capital:
Movement in stocks (2,711,609) (2,135,950)
Movement in debtors (222,955) 144,349
Movement in creditors 1,042,005 264,022
───────── ─────────
Cash used in operations (1,279,252) (825,866)
Interest paid (30,721) (18,691)
Tax paid (160,378) (130,606)
───────── ─────────
Net cash used in operating activities (1,470,351) (975,163)
───────── ─────────
Cash flows from investing activities
Interest received   2,445 253
Interest element of finance lease rental payments   (234,498) (75,407)
Payments to acquire property, plant and equipment   89,905 17,393
    ───────── ─────────
Net cash used in investment activities   (142,148) (57,761)
    ───────── ─────────
Cash flows from financing activities
New long term loan   (10,000) (10,000)
New short term loan   1,937,558 870,100
Capital element of hire purchase contracts   11,097 (117,380)
Movement in funding from connected parties   (85,502) -
Dividends paid   (72,000) (72,000)
    ───────── ─────────
Net cash generated from financing activities   1,781,153 670,720
    ───────── ─────────
       
Net increase/(decrease) in cash and cash equivalents   168,654 (362,204)
Cash and cash equivalents at beginning of financial year   119,781 481,985
    ───────── ─────────
Cash and cash equivalents at end of financial year 13 288,435 119,781
    ═════════ ═════════



E. S. Hartley Limited
NOTES TO THE FINANCIAL STATEMENTS
for the financial year ended 31 December 2023

   
1. General Information
 
E. S. Hartley Limited is a company limited by shares incorporated and registered in the United Kingdom. The registered number of the company is 02909182. The registered office of the company is Ings, Kendal, Cumbria, LA8 9PY which is also the principal place of business of the company. The nature of the company's operations and its principal activities are set out in the Directors' Report. The financial statements have been presented in Pound (£) which is also the functional currency of the company.
         
2. Summary of Significant Accounting Policies
 
The following accounting policies have been applied consistently in dealing with items which are considered material in relation to the company's financial statements.
 
Statement of compliance
The financial statements of the company for the financial year ended 31 December 2023 have been prepared in accordance with the Financial Reporting Standard applicable in the United Kingdom and the Republic of Ireland (FRS 102) issued by the Financial Reporting Council and in accordance with the Companies Act 2006.
 
Basis of preparation
The financial statements have been prepared on the going concern basis and in accordance with the historical cost convention except for certain properties and financial instruments that are measured at revalued amounts or fair values, as explained in the accounting policies below. Historical cost is generally based on the fair value of the consideration given in exchange for assets.
 
Turnover
Turnover comprises the invoice value of goods supplied by the company, exclusive of trade discounts and value added tax.
 
Property, plant and equipment and depreciation
Property, plant and equipment are stated at cost or at valuation, less accumulated depreciation. The charge to depreciation is calculated to write off the original cost or valuation of property, plant and equipment, less their estimated residual value, over their expected useful lives as follows:
 
  Short leasehold property - Over the period of the lease of 16 years
  Plant and machinery - 10% Straight line
  Fixtures, fittings and equipment - 20% Straight line
  Motor vehicles - 20% Reducing balance
 
The carrying values of tangible fixed assets are reviewed annually for impairment in periods if events or changes in circumstances indicate the carrying value may not be recoverable.
 
Leasing and hire purchases
Property, plant and equipment held under leasing and Hire Purchases arrangements which transfer substantially all the risks and rewards of ownership to the company are capitalised and included in the Statement of Financial Position at their cost or valuation, less depreciation. The corresponding commitments are recorded as liabilities. Payments in respect of these obligations are treated as consisting of capital and interest elements, with interest charged to the Income Statement.
 
Stocks
Stocks are valued at the lower of cost and net realisable value. Stocks are determined on a first-in first-out basis. Cost comprises expenditure incurred in the normal course of business in bringing stocks to their present location and condition.  Full provision is made for obsolete and slow moving items. Net realisable value comprises actual or estimated selling price (net of trade discounts) less all further costs to completion or to be incurred in marketing and selling.
 
Trade and other debtors
Trade and other debtors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest method less impairment losses for bad and doubtful debts except where the effect of discounting would be immaterial. In such cases the receivables are stated at cost less impairment losses for bad and doubtful debts.
 
Borrowing costs
Borrowing costs relating to the acquisition of assets are capitalised at the appropriate rate by adding them to the cost of assets being acquired. Investment income earned on the temporary investment of specific borrowings pending their expenditure on the assets is deducted from the borrowing costs eligible for capitalisation. All other borrowing costs are recognised in profit or loss in the period in which they are incurred.
 
Trade and other creditors
Trade and other creditors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest rate method, unless the effect of discounting would be immaterial, in which case they are stated at cost.
 
Employee benefits
The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund.
 
Taxation and deferred taxation
Current tax represents the amount expected to be paid or recovered in respect of taxable profits for the financial year and is calculated using the tax rates and laws that have been enacted or substantially enacted at the Statement of Financial Position date.

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date where transactions or events have occurred at that date that will result in an obligation to pay more tax in the future, or a right to pay less tax in the future. Timing differences are temporary differences between the company's taxable profits and its results as stated in the financial statements. Deferred tax is measured on an undiscounted basis at the tax rates that are anticipated to apply in the periods in which the timing differences are expected to reverse, based on tax rates and laws that have been enacted or substantively enacted by the Statement of Financial Position date.
 
Foreign currencies
Monetary assets and liabilities denominated in foreign currencies are translated at the rates of exchange ruling at the Statement of Financial Position date. Non-monetary items that are measured in terms of historical cost in a foreign currency are translated at the rates of exchange ruling at the date of the transaction. Non-monetary items that are measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was determined. The resulting exchange differences are dealt with in the Income Statement.
 
Share capital of the company
 
Ordinary share capital
The ordinary share capital of the company is presented as equity.
 
Preference share capital
The dividend rights of the preference shares are non-cumulative and payment is at the discretion of the company. The preference shares carry voting rights at meetings. Based on their characteristics the preference shares are considered to be presented as equity and not liabilities. There is no option to redeem the preference shares.
       
3. Turnover
 
The whole of the company's turnover is attributable to its market in the United Kingdom and is derived from the principal activity of
       
4. Operating profit 2023 2022
  £ £
Operating profit is stated after charging/(crediting):
Depreciation of property, plant and equipment 15,197 7,602
Profit on foreign currencies (10,640) (46,994)
Auditor's remuneration
- audit services 5,400 -
  ═════════ ═════════
       
5. Interest receivable and similar income 2023 2022
  £ £
 
Bank interest 2,445 253
  ═════════ ═════════
       
6. Interest payable and similar expenses 2023 2022
  £ £
 
On bank loans and overdrafts - 1,021
Finance lease charges and hire purchase interest 265,219 93,077
  ───────── ─────────
  265,219 94,098
  ═════════ ═════════
       
7. Employees and remuneration
 
Number of employees
The average number of persons employed (including executive directors) during the financial year was as follows:
 
  2023 2022
  Number Number
 
Management 2 2
Sales and administration 18 18
  ───────── ─────────
  20 20
  ═════════ ═════════
 
The staff costs (inclusive of directors' salaries) comprise: 2023 2022
  £ £
 
Wages and salaries 619,324 579,560
Social security costs 57,054 53,185
Pension costs 11,988 10,621
  ───────── ─────────
  688,366 643,366
  ═════════ ═════════
       
8. Tax on profit
  2023 2022
  £ £
(a)     Analysis of charge in the financial year
 
Current tax:
Corporation tax at 23.52% (2022 - 19.00%) (Note 8 (b)) 93,897 163,071
  ═════════ ═════════
 
(b)     Factors affecting tax charge for the financial year
 
The tax assessed for the financial year differs from the standard rate of corporation tax in the United Kingdom 23.52% (2022 - 19.00%). The differences are explained below:
  2023 2022
  £ £
 
Profit taxable at 23.52% 335,336 800,266
  ═════════ ═════════
Profit before tax
multiplied by the standard rate of corporation tax
in the United Kingdom at 23.52% (2022 - 19.00%) 78,871 152,051
Effects of:
Expenses not deductible for tax purposes 13,232 10,166
Depreciation in excess of capital allowances for period 1,794 854
  ───────── ─────────
Total tax charge for the financial year (Note 8 (a)) 93,897 163,071
  ═════════ ═════════
 
       
9. Dividends 2023 2022
  £ £
Dividends on equity shares:
 
A Ordinary shares - Interim paid 72,000 72,000
  ═════════ ═════════
             
10. Property, plant and equipment
  Short Plant and Fixtures, Motor Total
  leasehold machinery fittings and vehicles  
  property   equipment    
  £ £ £ £ £
Cost
At 1 January 2023 224,036 133,810 141,770 32,247 531,863
Additions - 584 3,700 61,192 65,476
  ───────── ───────── ───────── ───────── ─────────
At 31 December 2023 224,036 134,394 145,470 93,439 597,339
  ───────── ───────── ───────── ───────── ─────────
Depreciation
At 1 January 2023 224,036 124,290 138,807 14,071 501,204
Charge for the financial year - 1,800 4,020 9,377 15,197
  ───────── ───────── ───────── ───────── ─────────
At 31 December 2023 224,036 126,090 142,827 23,448 516,401
  ───────── ───────── ───────── ───────── ─────────
Net book value
At 31 December 2023 - 8,304 2,643 69,991 80,938
  ═════════ ═════════ ═════════ ═════════ ═════════
At 31 December 2022 - 9,520 2,963 18,176 30,659
  ═════════ ═════════ ═════════ ═════════ ═════════
       
11. Stocks 2023 2022
  £ £
 
Finished goods and goods for resale 7,768,129 5,056,520
  ═════════ ═════════
       
12. Debtors 2023 2022
  £ £
 
Trade debtors 169,114 86,021
Amounts owed by connected parties (Note 21) 9,500 9,500
Other debtors 167 107
Taxation  (Note 16) 56,730 -
Prepayments and accrued income 112,543 29,471
  ───────── ─────────
  348,054 125,099
  ═════════ ═════════
       
13. Cash and cash equivalents 2023 2022
  £ £
 
Cash and bank balances 282,489 119,781
Cash equivalents 5,946 -
  ───────── ─────────
  288,435 119,781
  ═════════ ═════════
       
14. Creditors 2023 2022
Amounts falling due within one year £ £
 
Bank loan 10,000 10,000
Vehicle stock finance 2,973,058 1,035,500
Net obligations under finance leases
and hire purchase contracts 29,214 18,117
Trade creditors 3,105,244 1,905,563
Amounts owed to connected parties (Note 21) - 85,502
Taxation  (Note 16) 108,829 173,767
Directors' current accounts (Note 20) 177,620 208,814
Other creditors 2,216 129,404
Accruals:
Pension accrual 2,904 2,904
Other accruals 6,035 6,872
  ───────── ─────────
  6,415,120 3,576,443
  ═════════ ═════════
       
15. Creditors 2023 2022
Amounts falling due after more than one year £ £
 
Bank loan 15,000 25,000
Finance leases and hire purchase contracts 346,859 191,478
  ───────── ─────────
  361,859 216,478
  ═════════ ═════════
 
Loans
Repayable in one year or less, or on demand (Note 14) 2,983,058 1,045,500
Repayable between one and two years 15,000 25,000
  ───────── ─────────
  2,998,058 1,070,500
  ═════════ ═════════
 
 
Net obligations under finance leases
and hire purchase contracts
Repayable within one year 29,214 18,117
Repayable between one and five years 346,859 191,478
  ───────── ─────────
  376,073 209,595
  ═════════ ═════════
       
16. Taxation 2023 2022
  £ £
 
Debtors:
VAT 56,730 -
  ═════════ ═════════
Creditors:
VAT - 892
Corporation tax 93,897 160,378
PAYE / NI 14,932 12,497
  ───────── ─────────
  108,829 173,767
  ═════════ ═════════
           
17. Share capital     2023 2022
      £ £
Description Number of shares Value of units    
 
Allotted, called up and fully paid
A Ordinary shares 137,500 £1.00 each 137,500 137,500
B Ordinary shares 10,000 £1.00 each 10,000 10,000
Preference shares 2,500 £1.00 each 2,500 2,500
      ───────── ─────────
      150,000 150,000
      ═════════ ═════════
       
18. Income Statement
     
  2023 2022
  £ £
 
At 1 January 2023 1,389,138 823,943
Profit for the financial year 241,439 637,195
Payment of dividends (72,000) (72,000)
  ───────── ─────────
At 31 December 2023 1,558,577 1,389,138
  ═════════ ═════════
       
19. Capital commitments
 
The company had no material capital commitments at the financial year-ended 31 December 2023.
       
20. Directors' remuneration and transactions 2023 2022
  £ £
 
Remuneration 11,000 11,000
  ═════════ ═════════
           
The following amounts are repayable to the directors:
      2023 2022
      £ £
 
Neil Worrall     177,620 208,814
      ═════════ ═════════
       
21. Related party transactions
  Balance Balance
  2023 2022
  £ £
 
JVM Combi Limited 9,500 9,500
 
The following amounts are due to other connected parties:
  2023 2022
  £ £
 
E S Hartley Leisure Limited - 85,502
  ═════════ ═════════
 
Net balances with other connected parties:
  2023 2022
  £ £
 
E S Hartley Leisure Limited - (85,502)
JVM Combi Limited 9,500 9,500
  ───────── ─────────
  9,500 (76,002)
  ═════════ ═════════
   
22. Events After the End of the Reporting Period
 
There have been no significant events affecting the company since the financial year-end.
           
23 Reconciliation of Net Cash Flow to Movement in Net Debt
  Opening Cash Other Closing
  balance flows changes balance
         
  £ £ £ £
 
Long-term borrowings (35,000) 10,000 10,000 (15,000)
Short-term borrowings (1,035,500) (1,937,558) (10,000) (2,983,058)
Finance lease and hire purchase (209,595) (11,097) (155,381) (376,073)
  ───────── ───────── ───────── ─────────
Total liabilities from financing activities (1,280,095) (1,938,655) (155,381) (3,374,131)
  ═════════ ═════════ ═════════ ─────────
Total Cash and cash equivalents (Note 13)       288,435
        ─────────
Total net debt       (3,085,696)
        ═════════