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REGISTERED NUMBER: 09645661 (England and Wales)
















RATESFORD STORE LIMITED

GROUP STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023






RATESFORD STORE LIMITED (REGISTERED NUMBER: 09645661)






CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023




Page

Company Information 1

Chairman's Report 2

Group Strategic Report 3

Report of the Directors 4

Report of the Independent Auditors 6

Consolidated Statement of Income and Retained
Earnings

10

Consolidated Balance Sheet 11

Company Balance Sheet 13

Consolidated Cash Flow Statement 14

Notes to the Consolidated Cash Flow Statement 15

Notes to the Consolidated Financial Statements 17


RATESFORD STORE LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31 DECEMBER 2023







DIRECTORS: C.J. Rate
Mrs C.A.M. Rate
S.J. Rate





REGISTERED OFFICE: 21 Lodge Lane
Grays
Essex
RM17 5RY





REGISTERED NUMBER: 09645661 (England and Wales)





AUDITORS: CR Bland Baker Limited
Chartered Accountants and
Registered Auditor
21 Lodge Lane
Grays
Essex
RM17 5RY

RATESFORD STORE LIMITED (REGISTERED NUMBER: 09645661)

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.



C.J. Rate - Chairman
Date: 30th July 2024

RATESFORD STORE LIMITED (REGISTERED NUMBER: 09645661)

GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

The directors present their strategic report of the company and the group 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:





S.J. Rate - Director


30 July 2024

RATESFORD STORE LIMITED (REGISTERED NUMBER: 09645661)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 DECEMBER 2023

The directors present their report with the financial statements of the company and the group for the year ended 31 December 2023.

DIVIDENDS
Total 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.

C.J. Rate
Mrs C.A.M. Rate

Other changes in directors holding office are as follows:

S.J. Rate - appointed 20 September 2023

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). 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 the group and of the profit or loss of the group 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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 group'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 group's auditors are aware of that information.

RATESFORD STORE LIMITED (REGISTERED NUMBER: 09645661)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 DECEMBER 2023


AUDITORS
The auditors, CR Bland Baker Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





S.J. Rate - Director


30 July 2024

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
RATESFORD STORE LIMITED

Opinion
We have audited the financial statements of RatesFord Store Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the Consolidated Statement of Income and Retained Earnings, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, 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 group's and of the parent company affairs as at 31 December 2023 and of the group's 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 group 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 group's and the parent 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
RATESFORD STORE 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 Group 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 Group 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 group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
- the parent company 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 four, 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 group's and the parent 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 group or the parent company or to cease operations, or have no realistic alternative but to do so.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
RATESFORD STORE 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
RATESFORD STORE 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.




D.M. Baker (Senior Statutory Auditor)
for and on behalf of CR Bland Baker Limited
Chartered Accountants and
Registered Auditor
21 Lodge Lane
Grays
Essex
RM17 5RY

31 July 2024

RATESFORD STORE LIMITED (REGISTERED NUMBER: 09645661)

CONSOLIDATED
STATEMENT OF INCOME AND
RETAINED EARNINGS
FOR THE YEAR ENDED 31 DECEMBER 2023

2023 2022
as restated
Notes £    £    £    £   

TURNOVER 3 88,937,188 89,528,665

Cost of sales 87,239,120 85,623,926
GROSS PROFIT 1,698,068 3,904,739

Administrative expenses 2,255,189 2,422,238
(557,121 ) 1,482,501

Other operating income 4 36,697 34,870
OPERATING (LOSS)/PROFIT 6 (520,424 ) 1,517,371

Income from fixed asset investments 1,433 1,165
Interest receivable and similar income 10,347 1,375
11,780 2,540
(508,644 ) 1,519,911
Gain/loss on revaluation of investments 6,959 690
(501,685 ) 1,520,601

Interest payable and similar expenses 7 106,749 38,457
(LOSS)/PROFIT BEFORE TAXATION (608,434 ) 1,482,144

Tax on (loss)/profit 8 (81,530 ) 325,308
(LOSS)/PROFIT FOR THE
FINANCIAL YEAR

(526,904

)

1,156,836

Retained earnings at beginning of year 7,889,694 6,866,998

Dividends on equity shares 10 (298,640 ) (134,140 )

RETAINED EARNINGS FOR THE
GROUP AT END OF YEAR

7,064,150

7,889,694

(Loss)/profit attributable to:
Owners of the parent (526,904 ) 1,156,836

RATESFORD STORE LIMITED (REGISTERED NUMBER: 09645661)

CONSOLIDATED BALANCE SHEET
31 DECEMBER 2023

2023 2022
as restated
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 12 4,028,735 4,040,883
Investments 13 1,348 1,348
4,030,083 4,042,231

CURRENT ASSETS
Stocks 14 9,016,133 8,147,430
Debtors 15 1,866,032 1,659,074
Investments 16 40,116 33,158
Cash at bank and in hand 46,531 184,273
10,968,812 10,023,935
CREDITORS
Amounts falling due within one year 17 6,199,207 4,371,908
NET CURRENT ASSETS 4,769,605 5,652,027
TOTAL ASSETS LESS CURRENT
LIABILITIES

8,799,688

9,694,258

CREDITORS
Amounts falling due after more than one
year

18

(1,409,638

)

(1,496,164

)

PROVISIONS FOR LIABILITIES 22 (98,000 ) (80,500 )
NET ASSETS 7,292,050 8,117,594

RATESFORD STORE LIMITED (REGISTERED NUMBER: 09645661)

CONSOLIDATED BALANCE SHEET - continued
31 DECEMBER 2023

2023 2022
as restated
Notes £    £    £    £   
CAPITAL AND RESERVES
Called up share capital 23 2,200 2,200
Share premium 24 290 290
Revaluation reserve 24 215,511 215,511
Capital redemption reserve 24 3,333 3,333
Merger reserve 24 6,566 6,566
Retained earnings 24 7,064,150 7,889,694
SHAREHOLDERS' FUNDS 7,292,050 8,117,594


The financial statements were approved by the Board of Directors and authorised for issue on 30 July 2024 and were signed on its behalf by:





S.J. Rate - Director


RATESFORD STORE LIMITED (REGISTERED NUMBER: 09645661)

COMPANY BALANCE SHEET
31 DECEMBER 2023

2023 2022
as restated
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 12 - -
Investments 13 4,576,319 4,576,319
4,576,319 4,576,319

CURRENT ASSETS
Debtors 15 1,900 1,900
Cash in hand 100 100
2,000 2,000
NET CURRENT ASSETS 2,000 2,000
TOTAL ASSETS LESS CURRENT
LIABILITIES

4,578,319

4,578,319

CAPITAL AND RESERVES
Called up share capital 23 2,200 2,200
Merger reserve 24 4,576,119 4,576,119
SHAREHOLDERS' FUNDS 4,578,319 4,578,319

Company's profit for the financial year 298,640 134,140

The financial statements were approved by the Board of Directors and authorised for issue on 30 July 2024 and were signed on its behalf by:





S.J. Rate - Director


RATESFORD STORE LIMITED (REGISTERED NUMBER: 09645661)

CONSOLIDATED CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023

2023 2022
as restated
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 256,930 (25,959 )
Interest paid (106,749 ) (38,457 )
Tax paid (276,370 ) (255,483 )
Net cash from operating activities (126,189 ) (319,899 )

Cash flows from investing activities
Purchase of tangible fixed assets (270,540 ) (580,543 )
Sale of tangible fixed assets 74,527 285,767
Interest received 10,347 1,375
Dividends received 1,433 1,165
Net cash from investing activities (184,233 ) (292,236 )

Cash flows from financing activities
New loans in year 305,923 512,343
Loan repayments in year (114,642 ) (141,918 )
Amount introduced by directors 40,227 -
Amount withdrawn by directors - (77,625 )
Equity dividends paid (271,500 ) (105,000 )
Ordinary A share dividends paid (27,140 ) (29,140 )
Net cash from financing activities (67,132 ) 158,660

Decrease in cash and cash equivalents (377,554 ) (453,475 )
Cash and cash equivalents at
beginning of year

2

184,273

637,748

Cash and cash equivalents at end of
year

2

(193,281

)

184,273

RATESFORD STORE LIMITED (REGISTERED NUMBER: 09645661)

NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT
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 (608,434 ) 1,482,144
Depreciation charges 199,937 202,343
Loss/(profit) on disposal of fixed assets 8,226 (34,398 )
Gain on revaluation of fixed assets (6,959 ) (690 )
Finance costs 106,749 38,457
Finance income (11,780 ) (2,540 )
(312,261 ) 1,685,316
Increase in stocks (868,703 ) (233,651 )
Increase in trade and other debtors (106,558 ) (429,359 )
Increase/(decrease) in trade and other creditors 1,544,452 (1,048,265 )
Cash generated from operations 256,930 (25,959 )

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 December 2023
31.12.23 1.1.23
£    £   
Cash and cash equivalents 46,531 184,273
Bank overdrafts (239,812 ) -
(193,281 ) 184,273
Year ended 31 December 2022
31.12.22 1.1.22
as restated
£    £   
Cash and cash equivalents 184,273 637,748


RATESFORD STORE LIMITED (REGISTERED NUMBER: 09645661)

NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT
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 184,273 (137,742 ) 46,531
Bank overdrafts - (239,812 ) (239,812 )
184,273 (377,554 ) (193,281 )

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 (2,443,485 ) (561,878 ) (3,005,363 )

RATESFORD STORE LIMITED (REGISTERED NUMBER: 09645661)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1. STATUTORY INFORMATION

RatesFord Store Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the General Information page.

The presentation currency of the financial statements is the Pound Sterling (£).


2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

Parent company disclosure exemptions
Advantage has been taken of the following disclosure exemptions available under FRS 102:

(i) from preparing a separate statement of cashflow on the basis that the consolidated cash flow included in these financial statements includes the parent company's cash flows.

(ii) No disclosure has been given for the aggregate remuneration of the key management personnel of the parent as their remuneration is included in the totals for the group as a whole.

Basis of consolidation
The consolidated financial statements present the results of the group and its subsidiary as if they formed a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.

RATESFORD STORE LIMITED (REGISTERED NUMBER: 09645661)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

2. ACCOUNTING POLICIES - continued

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.

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.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Freehold property - 2% on cost
Plant and machinery - at variable rates on reducing balance
Motor vehicles - 25% on reducing balance

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.

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.

RATESFORD STORE LIMITED (REGISTERED NUMBER: 09645661)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

2. ACCOUNTING POLICIES - continued

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, 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 balance sheet date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet 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 group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate.

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 statement of comprehensive income when receivable.

3. TURNOVER

The turnover and loss (2022 - profit) before taxation are attributable to the one principal activity of the group.

Turnover includes operating lease income totalling £52,441 (2022 - £44,097).

RATESFORD STORE LIMITED (REGISTERED NUMBER: 09645661)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

4. OTHER OPERATING INCOME
2023 2022
as restated
£    £   
Rents received 10,380 10,380
Sundry receipts 2,292 1,493
Rebates and commissions - 16,732
Management charge income 24,025 6,265
36,697 34,870

5. EMPLOYEES AND DIRECTORS
2023 2022
as restated
£    £   
Wages and salaries 3,178,429 3,331,286
Social security costs 404,294 372,150
Other pension costs 90,982 87,326
3,673,705 3,790,762

The average number of employees during the year was as follows:
2023 2022
as restated

Sales 22 26
Operatives 23 27
Administrative 22 27
Directors 3 2
70 82

2023 2022
as restated
£    £   
Directors' remuneration 124,828 98,898
Directors' pension contributions to money purchase schemes 4,432 -

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 3 2

RATESFORD STORE LIMITED (REGISTERED NUMBER: 09645661)

NOTES TO THE CONSOLIDATED 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 (52,441 ) (44,097 )
Depreciation - owned assets 199,931 202,341
Loss/(profit) on disposal of fixed assets 8,226 (34,398 )
Auditors' remuneration 18,220 21,000
Other non- audit services 21,500 18,800
Operating leases - land and buildings 157,000 157,000

7. INTEREST PAYABLE AND SIMILAR EXPENSES
2023 2022
as restated
£    £   
Bank loan interest 106,749 38,457

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 - 275,000
Adjustment to prior year corporation tax (99,030 ) 608
Total current tax (99,030 ) 275,608

Deferred tax 17,500 49,700
Tax on (loss)/profit (81,530 ) 325,308

UK corporation tax has been charged at 25 % .

RATESFORD STORE LIMITED (REGISTERED NUMBER: 09645661)

NOTES TO THE CONSOLIDATED 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 (608,434 ) 1,482,144
(Loss)/profit multiplied by the standard rate of corporation tax in
the UK of 25 % (2022 - 19 %)

(152,109

)

281,607

Effects of:
Adjustments to tax charge in respect of previous periods 1,370 608
Adjustment to reflect tax actually provided in financial statements 7 (979 )
Expenses not allowable for tax purposes 49,698 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. INDIVIDUAL INCOME STATEMENT

As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements.


10. DIVIDENDS ON EQUITY SHARES

2023 2022
£ £
Dividends in cash 298,640 134,140
298,640 159,140

RATESFORD STORE LIMITED (REGISTERED NUMBER: 09645661)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

11. 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.

12. TANGIBLE FIXED ASSETS

Group
Freehold Short Plant and Motor
property leasehold machinery vehicles Totals
£    £    £    £    £   
COST
At 1 January 2023 2,948,729 764,570 1,254,359 294,645 5,262,303
Additions - 70,633 92,518 107,385 270,536
Disposals - (4,612 ) (23,674 ) (93,139 ) (121,425 )
At 31 December 2023 2,948,729 830,591 1,323,203 308,891 5,411,414
DEPRECIATION
At 1 January 2023 243,602 106,411 808,219 63,188 1,221,420
Charge for year 19,870 16,035 101,883 62,143 199,931
Eliminated on disposal - (830 ) (21,159 ) (16,683 ) (38,672 )
At 31 December 2023 263,472 121,616 888,943 108,648 1,382,679
NET BOOK VALUE
At 31 December 2023 2,685,257 708,975 434,260 200,243 4,028,735
At 31 December 2022 2,705,127 658,159 446,140 231,457 4,040,883

Motor vehicle cost and depreciation above includes assets leased to customers under operating leases.

RATESFORD STORE LIMITED (REGISTERED NUMBER: 09645661)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

12. TANGIBLE FIXED ASSETS - continued

Group

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.

13. FIXED ASSET INVESTMENTS

Group
Unlisted
investments
£   
COST
At 1 January 2023
and 31 December 2023 1,348
NET BOOK VALUE
At 31 December 2023 1,348
At 31 December 2022 1,348

RATESFORD STORE LIMITED (REGISTERED NUMBER: 09645661)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

13. FIXED ASSET INVESTMENTS - continued

Company
Shares in
group
undertakings
£   
COST
At 1 January 2023
and 31 December 2023 4,576,319
NET BOOK VALUE
At 31 December 2023 4,576,319
At 31 December 2022 4,576,319

The group or the company's investments at the Balance Sheet date in the share capital of companies include the following:

Subsidiaries

R.T. Rate Limited
Registered office: inside the United Kingdom
Nature of business: Ford dealership
%
Class of shares: holding
Ordinary 100.00

Rates Fast Lane Limited
Registered office: inside the United Kingdom
Nature of business: Dormant
%
Class of shares: holding
Ordinary 100.00


RATESFORD STORE LIMITED (REGISTERED NUMBER: 09645661)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

14. STOCKS

Group
2023 2022
as restated
£    £   
Stocks 8,833,279 7,997,706
Parts, accessories and consumables 182,854 149,724
9,016,133 8,147,430

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 17.

15. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group Company
2023 2022 2023 2022
as restated as restated
£    £    £    £   
Trade debtors 1,656,035 1,553,569 - -
Amounts owed by group undertakings - - 1,900 1,900
Other debtors 22,126 21,919 - -
Tax 100,400 - - -
Prepayments 87,471 83,586 - -
1,866,032 1,659,074 1,900 1,900

16. CURRENT ASSET INVESTMENTS

Group
2023 2022
as restated
£    £   
Listed investments 40,116 33,158

Market value of listed investments held by the group at 31 December 2023 - £40,116 (2022 - £33,158).

Current asset investments have been valued at their closing price at the balance sheet date.

RATESFORD STORE LIMITED (REGISTERED NUMBER: 09645661)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

17. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group
2023 2022
as restated
£    £   
Bank loans and overdrafts (see note 19) 285,595 73,898
Other loans (see note 19) 1,396,777 1,090,854
Trade creditors - consignment 2,574,909 682,268
Trade creditors- other 884,063 819,459
Tax - 275,000
Social security and other taxes 92,483 114,080
Other creditors 631,689 988,069
Directors' current accounts 71,231 4,683
Accrued expenses 262,460 323,597
6,199,207 4,371,908

Trade creditors include £2,574,909 (2022 - £682,268) in accordance with Financial Reporting Standard 102 as explained in note 14.

18. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN
ONE YEAR

Group
2023 2022
as restated
£    £   
Bank loans (see note 19) 1,409,638 1,496,164

RATESFORD STORE LIMITED (REGISTERED NUMBER: 09645661)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

19. LOANS

An analysis of the maturity of loans is given below:

Group
2023 2022
as restated
£    £   
Amounts falling due within one year or on demand:
Bank overdrafts 239,812 -
Bank loans 45,783 73,898
Stocking loans 1,116,777 810,854
Other loans 280,000 280,000
1,682,372 1,164,752
Amounts falling due between one and two years:
Bank loans - 1-2 years 49,166 75,503
Amounts falling due between two and five years:
Bank loans - 2-5 years 170,388 236,488
Amounts falling due in more than five years:
Repayable by instalments
Bank loans more 5 yr by instal 1,190,084 1,184,173

20. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Group
Non-cancellable operating leases
2023 2022
as restated
£    £   
Within one year 113,798 157,000
Between one and five years 360,000 383,798
473,798 540,798

RATESFORD STORE LIMITED (REGISTERED NUMBER: 09645661)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

21. SECURED DEBTS

The following secured debts are included within creditors:

Group
2023 2022
as restated
£    £   
Bank loans 1,455,421 1,570,062
Stocking loans 1,116,777 810,854
Consignment stock 2,574,911 682,270
5,147,109 3,063,186

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.

22. PROVISIONS FOR LIABILITIES

Group
2023 2022
as restated
£    £   
Deferred tax 98,000 80,500

Group
Deferred
tax
£   
Balance at 1 January 2023 80,500
Provided during year 17,500
Balance at 31 December 2023 98,000

23. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: as restated
£    £   
200 Ordinary £1 200 200
2,000 Non Voting Ordinary A £1 2,000 2,000
2,200 2,200

RATESFORD STORE LIMITED (REGISTERED NUMBER: 09645661)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

24. RESERVES

Group
Retained Share Revaluation
earnings premium reserve
£    £    £   

At 1 January 2023 7,889,694 290 215,511
Deficit for the year (526,904 )
Dividends on equity shares (298,640 )
At 31 December 2023 7,064,150 290 215,511

Group
Capital
redemption Merger
reserve reserve Totals
£    £    £   

At 1 January 2023 3,333 6,566 8,115,394
Deficit for the year (526,904 )
Dividends on equity shares (298,640 )
At 31 December 2023 3,333 6,566 7,289,850

Company
Retained Merger
earnings reserve Totals
£    £    £   

At 1 January 2023 - 4,576,119 4,576,119
Profit for the year 298,640 298,640
Dividends on equity shares (298,640 ) (298,640 )
At 31 December 2023 - 4,576,119 4,576,119

The parent company did not trade during the current or previous year and only received dividend income from its subsidiary.

25. 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 - £11,852).

RATESFORD STORE LIMITED (REGISTERED NUMBER: 09645661)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

26. RELATED PARTY DISCLOSURES

Entities with control, joint control or significant influence over the entity
2023 2022
as restated
£    £   
Rent paid to related party 90,000 90,000
Amount due to related party 71,232 33,003

Entities over which the entity has control, joint control or significant influence
2023 2022
as restated
£    £   
Amount due from related party 1,900 1,900

Key management personnel of the entity or its parent (in the aggregate)
2023 2022
as restated
£    £   
Amount due from related party 3,725 -

The loans were unsecured, interest free and repayable on demand.

27. ULTIMATE CONTROLLING PARTY

The ultimate controlling party is C.J. Rate.