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REGISTERED NUMBER: 06175803 (England and Wales)















OPICO LIMITED

STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

AUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023






OPICO LIMITED (REGISTERED NUMBER: 06175803)






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




Page

Company Information 1

Strategic Report 2 to 3

Report of the Directors 4

Report of the Independent Auditors 5 to 7

Statement of Comprehensive Income 8

Statement of Financial Position 9

Statement of Changes in Equity 10

Notes to the Financial Statements 11 to 18


OPICO LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31 DECEMBER 2023







DIRECTORS: J A Woolway
C M Bedforth
D A Steven





REGISTERED OFFICE: Cherry Holt Road
Bourne
Lincolnshire
PE10 9LA





REGISTERED NUMBER: 06175803 (England and Wales)





AUDITORS: Duncan & Toplis Audit Limited, Statutory Auditor
Enterprise Way
Pinchbeck
Spalding
Lincolnshire
PE11 3YR

OPICO LIMITED (REGISTERED NUMBER: 06175803)

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
Once again, the company started the year with a record order book, this was a result of a very strong market in 2022 and shortage in machinery supply. However, agricultural commodity prices started to fall at the end of 2022 as a result of oversupply and this continued during early 2023.

Milk prices were the first to start moving downwards having reached an all time record in the middle of 2022, they fell over 20% at the end of 2022 and continued to trend downwards in the first half of 2023. Wheat Prices held into the start of 2023 but then fell by nearly 40% in the first half of the year.

Input prices for Livestock and Arable businesses finally stabilised at a high level and then eventually started to fall in late 2023. With output prices falling earlier in the year than inputs, and as Milk and Wheat are the key drivers of profitability for OPICO's customers, these moves had a significant effect on demand for machinery from late spring and resulted in a reduction in orders in the second half of the year.

In late spring 2023 OPICO signed the Sale and Purchase Agreement to end its distribution of Maschio Gaspardo equipment in the UK and assist the Italian company in setting up an independent Maschio Gaspardo UK Limited. There was a considerable amount of work involved to complete the transaction by 31st October. The stock of Maschio Gaspardo machines moved to the new company in early November and the spare parts followed at the end of the year.

The company was busy throughout the year, initially delivering the record order book and then competing hard to maintain sales and reduce stock levels whilst working on the separation with Maschio Gaspardo.

KEY PERFORMANCE INDICATORS
To gain an understanding of the development, performance and financial strength of the company, the management relies on the following key performance indicators:

2023 2022
Movement in turnover 1,190,090 (497,863)
Gross profit % 20.4% 24.5%
Shareholders' funds 4,422,932 4,020,872


OPICO LIMITED (REGISTERED NUMBER: 06175803)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

PRINCIPAL RISKS AND UNCERTAINTIES
The management of the business and the execution of the group's strategy are subject to a number of risks. Risks are formally reviewed by the board and appropriate processes put in place to monitor and mitigate them.
The key risks affecting the company are set out below:

VIABILITY OF AGRICULTURE
The major risk that the company faces is from volatility in agricultural output prices and input costs combined with farming productivity, each of which affect the viability of agricultural businesses and their ability to invest in equipment. This can be impacted by local factors, such as weather in key growing and harvesting periods, and international factors on world markets. The company attempts to mitigate such a risk by having a diverse range of equipment available and also through aftersales activities such as servicing and part sales.

FOREIGN EXCHANGE RISK
The company imports machinery from around the world and is exposed to fluctuations in the foreign exchange rate. A blend of forward contracts and various hedging strategies are utilised to mitigate these risks.

WAR
The ongoing war between Russia and Ukraine is having knock on effects on commodity and energy prices but the majority of supply chains have now been reorganised so, until there is a fundamental change in the course of the war, OPICO are not likely to feel the effect as significantly as in Mid-2022. However, as both countries are large agricultural commodity, energy and steel producers and also significant markets for agricultural machinery the ongoing situation will be watched carefully.

POLITICS & SUBSIDIES
The Political situation in the UK is also important to agriculture, the drive to net Zero, trade deals with other nations and lack of desire for home grown food security are all of concern to the agricultural industry so the direction of travel is being monitored closely by the management.

Government policy is also changing, diminishing BPS subsidy payments are being replaced by different types of funding to encourage farmers to utilise more environmentally friendly farming practices. The Farming and Equipment Technology Fund (FETF) and Sustainable Farming Incentive (SFI) have been introduced and will be expanded over the coming years. The management have noted that these subsidies are distorting the market by changing the timings and types of machinery purchased.

WEATHER
The extremes of weather experienced in the UK over the past few years are a concern as weather directly affects crops and causes issues for OPICO's customers. The management are now noticing Farmers taking longer term decisions about their businesses to mitigate some of the impact of the difficulties they have had over the past few years. Changes in farming strategy are also being monitored by management.

ON BEHALF OF THE BOARD:





J A Woolway - Director


25 June 2024

OPICO LIMITED (REGISTERED NUMBER: 06175803)

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 agricultural machinery distributors.

DIVIDENDS
Dividends totalling £825,000 (2022: £400,000) were paid during the year.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 January 2023 to the date of this report.

J A Woolway
C M Bedforth
D A Steven

DIRECTORS' INDEMNITIES
A qualifying third party indemnity provision is in place for the directors of the company. This covers liability for the actions of directors and officers of the company and associated costs including legal costs.

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors 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 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.

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 ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

ON BEHALF OF THE BOARD:





J A Woolway - Director


25 June 2024

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
OPICO LIMITED

Opinion
We have audited the financial statements of OPICO Limited (the 'company') for the year ended 31 December 2023 which comprise the Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity and 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 profit 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 Strategic Report and the Report of the Directors, 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.

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.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
OPICO LIMITED


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 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.

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 identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial experience, knowledge of the sector, a review of regulatory and legal correspondence and through discussions with Directors and other management obtained as part of the work required by auditing standards. We have also discussed with the Directors and other management the policies and procedures relating to compliance with laws and regulations. We communicated laws and regulations throughout the team and remained alert to any indications of non-compliance throughout the audit.

The potential impact of different laws and regulations varies considerably. Firstly, the company is subject to laws and regulations that directly impact the financial statements (for example financial reporting legislation) and we have assessed the extent of compliance with such laws as part of our financial statements audit. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including risk of override of controls) and determined that the principal risks were related to management bias in accounting estimates and judgemental areas of the financial statements such as the valuation and impairment of stock, as well as the risk of inappropriate journal entries to increase reported profitability. Audit procedures performed by the engagement team included the identification and testing of material and unusual journal entries and challenging management on key accounting estimates, assumptions and judgements made in the preparation of the financial statements. We carried out detailed substantive tests on accounting estimates, including reviewing the methods used by management to make those estimates, re-performing the calculation, and reviewing the outcome of prior year estimates.

Secondly, the company is subject to other laws and regulations where the consequence for non-compliance could have a material effect on the amounts or disclosures in the financial statements. We identified the following areas as those most likely to have such an effect: Health and Safety regulations and Employment laws.

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Directors and other management and inspection. This inspection included a review of the internal health and safety reporting documentation within the year for any evidence of ongoing claims, in addition to an assessment of the company's employment and health and safety controls. Through these procedures, if we became aware of any non-compliance, we considered the impact on the procedures performed on the related financial statement items.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. The further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. As with any audit, there is a greater risk of non-detection of irregularities as these may involve collusion, intentional omissions of the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

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
OPICO 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.




Alistair Main FCA (Senior Statutory Auditor)
for and on behalf of Duncan & Toplis Audit Limited, Statutory Auditor
Enterprise Way
Pinchbeck
Spalding
Lincolnshire
PE11 3YR

25 June 2024

OPICO LIMITED (REGISTERED NUMBER: 06175803)

STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023

2023 2022
Notes £    £    £    £   

TURNOVER 3 18,803,709 17,613,619

Cost of sales 14,976,132 13,293,987
GROSS PROFIT 3,827,577 4,319,632

Distribution costs 220,317 246,572
Administrative expenses 2,992,371 2,541,472
3,212,688 2,788,044
614,889 1,531,588

Other operating income 4,901 3,741
OPERATING PROFIT 5 619,790 1,535,329

Profit/(loss) on sale of investment 6 825,000 -
1,444,790 1,535,329

Interest receivable and similar income 221 -
1,445,011 1,535,329

Interest payable and similar expenses 7 111,320 46,222
PROFIT BEFORE TAXATION 1,333,691 1,489,107

Tax on profit 8 106,631 253,207
PROFIT FOR THE FINANCIAL YEAR 1,227,060 1,235,900

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR THE YEAR 1,227,060 1,235,900

OPICO LIMITED (REGISTERED NUMBER: 06175803)

STATEMENT OF FINANCIAL POSITION
31 DECEMBER 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 10 - -
Tangible assets 11 388,823 354,465
388,823 354,465

CURRENT ASSETS
Stocks 12 4,217,122 5,180,635
Debtors 13 1,360,946 1,806,819
Cash at bank 325,545 227,161
5,903,613 7,214,615
CREDITORS
Amounts falling due within one year 14 1,786,015 3,484,613
NET CURRENT ASSETS 4,117,598 3,730,002
TOTAL ASSETS LESS CURRENT LIABILITIES 4,506,421 4,084,467

PROVISIONS FOR LIABILITIES 19 83,489 63,595
NET ASSETS 4,422,932 4,020,872

CAPITAL AND RESERVES
Called up share capital 20 1,000 1,000
Retained earnings 4,421,932 4,019,872
SHAREHOLDERS' FUNDS 4,422,932 4,020,872

The financial statements were approved by the Board of Directors and authorised for issue on 25 June 2024 and were signed on its behalf by:





J A Woolway - Director


OPICO LIMITED (REGISTERED NUMBER: 06175803)

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023

Called up
share Retained Total
capital earnings equity
£    £    £   
Balance at 1 January 2022 1,000 3,183,972 3,184,972

Changes in equity
Dividends - (400,000 ) (400,000 )
Total comprehensive income - 1,235,900 1,235,900
Balance at 31 December 2022 1,000 4,019,872 4,020,872

Changes in equity
Dividends - (825,000 ) (825,000 )
Total comprehensive income - 1,227,060 1,227,060
Balance at 31 December 2023 1,000 4,421,932 4,422,932

OPICO LIMITED (REGISTERED NUMBER: 06175803)

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

1. STATUTORY INFORMATION

OPICO 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 Company 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 Report 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.

Financial Reporting Standard 102 - reduced disclosure exemptions
The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

the requirements of Section 7 Statement of Cash Flows;
the requirement of paragraph 3.17(d).

Related party exemption
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Significant judgements and estimates
In the application of the company's accounting policies, management is required to make judgements, estimates and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and underlying 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

i) Stock provisions

The estimation and assumptions used to assess that stock is valued in line with the applicable accounting framework are based on the relevant aging of each stock item since the date the company took ownership of the individual item(s).
Management then assess the level of impairment required on each item using a standardised methodology which is
regularly reviewed.

Turnover
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Revenue is recognised at the point risk and reward of ownership of a product is passed to the customer, usually this is on despatch for goods sales, on completion for servicing and repair work and for specified periods for service agreements.

Goodwill
Goodwill, being the amount paid in connection with the acquisition of a business in 2007, has been amortised evenly over its estimated useful life of three years.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Improvements to property - 15% on cost
Plant and machinery - 25% on cost, 20% on cost and Straight line over 15 years

Tangible fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended.

OPICO LIMITED (REGISTERED NUMBER: 06175803)

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

2. ACCOUNTING POLICIES - continued

Stocks
Stocks and work in progress are valued at the lower of cost and estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a weighted average costing method.

At each financial reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in the Income Statement .

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.

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.

Foreign currencies
The company's functional currency is the same as the presentational currency for these financial statements.

Foreign currency transactions are initially recognised by applying the foreign currency amount at spot exchange rate between the functional currency and the foreign currency at the date of transaction.

At each period end, foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when the fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the Income Statement.

Foreign exchange gains and losses that relate to borrowings of cash and cash equivalents are presented in the Income Statement within 'financial income or costs'. All other foreign exchange gains and losses are presented in the Income Statement within 'administrative expenses'.

Hire purchase and leasing commitments
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

OPICO LIMITED (REGISTERED NUMBER: 06175803)

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

2. ACCOUNTING POLICIES - continued

Financial instruments
The company has adopted Sections 11 and 12 of FRS 102 in respect of financial instruments.

Basic financial assets, including trade and other debtors and cash and bank balances are initially recognised at transaction price, unless the arrangement constitutes a financing transaction where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cashflows discounted at the asset's original effective interest rate. The impairment loss is recognised in profit or loss.

Basic financial liabilities, including trade and other creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price,unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if payment is due within one year or less. If not, they are measured at amortised cost using the effective interest method.

3. TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by class of business is given below:

2023 2022
£    £   
Wholegoods 16,444,548 15,369,345
Parts 2,252,192 2,130,075
Carriage 106,969 114,199
18,803,709 17,613,619

4. EMPLOYEES AND DIRECTORS
2023 2022
£    £   
Wages and salaries 1,701,091 1,542,433
Social security costs 191,956 178,942
Other pension costs 59,093 55,562
1,952,140 1,776,937

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

Directors 3 3
Administration and Production 39 39
42 42

2023 2022
£    £   
Directors' remuneration 190,413 181,943
Directors' pension contributions to money purchase schemes 6,732 6,016

OPICO LIMITED (REGISTERED NUMBER: 06175803)

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

4. EMPLOYEES AND DIRECTORS - continued

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

Money purchase schemes 2 2

5. OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2023 2022
£    £   
Other operating leases 210,000 168,000
Depreciation - owned assets 112,694 54,341
Profit on disposal of fixed assets (49,320 ) (44,538 )
Auditors' remuneration 11,550 10,764
Auditors' remuneration for non audit work 6,855 5,687
Foreign exchange differences (110,752 ) (177,999 )

6. EXCEPTIONAL ITEMS
2023 2022
£    £   
Profit/(loss) on sale of investment 825,000 -

7. INTEREST PAYABLE AND SIMILAR EXPENSES
2023 2022
£    £   
Bank interest 111,320 46,222

8. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2023 2022
£    £   
Current tax:
UK corporation tax 128,830 236,747
Over provided in prior year (42,093 ) -
Total current tax 86,737 236,747

Deferred tax 19,894 16,460
Tax on profit 106,631 253,207

OPICO LIMITED (REGISTERED NUMBER: 06175803)

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

8. TAXATION - continued

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

2023 2022
£    £   
Profit before tax 1,333,691 1,489,107
Profit multiplied by the standard rate of corporation tax in the UK of 25% (2022 -
19%)

333,423

282,930

Effects of:
Expenses not deductible for tax purposes 7,201 1,315
Depreciation in excess of capital allowances - 2,321
Adjustments to tax charge in respect of previous periods (42,093 ) -
Research & development tax credit - (25,109 )
Change in tax rate 13,567 (8,250 )
Capital disposal relief (205,467 ) -
Total tax charge 106,631 253,207

Factors that may affect future tax charges

The statutory UK corporation tax rate is currently 25%, with a small profits rate of 19%.

Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled, or the asset is realised, based on tax law and the corporation tax rates that have been enacted, or substantially enacted, at the year end date.

9. DIVIDENDS
2023 2022
£    £   
Ordinary shares of £1 each
Interim 825,000 400,000

10. INTANGIBLE FIXED ASSETS
Goodwill
£   
COST
At 1 January 2023
and 31 December 2023 20,003
AMORTISATION
At 1 January 2023
and 31 December 2023 20,003
NET BOOK VALUE
At 31 December 2023 -
At 31 December 2022 -

OPICO LIMITED (REGISTERED NUMBER: 06175803)

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

11. TANGIBLE FIXED ASSETS
Improvements
to Plant and
property machinery Totals
£    £    £   
COST
At 1 January 2023 168,049 817,854 985,903
Additions - 201,732 201,732
Disposals - (213,007 ) (213,007 )
At 31 December 2023 168,049 806,579 974,628
DEPRECIATION
At 1 January 2023 153,840 477,598 631,438
Charge for year 3,969 108,725 112,694
Eliminated on disposal - (158,327 ) (158,327 )
At 31 December 2023 157,809 427,996 585,805
NET BOOK VALUE
At 31 December 2023 10,240 378,583 388,823
At 31 December 2022 14,209 340,256 354,465

12. STOCKS
2023 2022
£    £   
Stocks 4,217,122 5,180,635

13. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade debtors 1,029,117 1,594,649
Amounts owed by group undertakings 13,604 29,105
Other debtors 47,699 54,038
VAT 135,481 -
Prepayments and accrued income 135,045 129,027
1,360,946 1,806,819

14. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Bank loans and overdrafts (see note 15) 2 197,563
Trade creditors 607,809 2,484,900
Amounts owed to group undertakings 680,000 -
Taxation 128,748 268,899
Other taxes and social security 52,514 52,650
VAT - 109,106
Other creditors 11,847 18,627
Factoring advances 148,450 210,928
Accruals and deferred income 156,645 141,940
1,786,015 3,484,613

OPICO LIMITED (REGISTERED NUMBER: 06175803)

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

15. LOANS

An analysis of the maturity of loans is given below:

2023 2022
£    £   
Amounts falling due within one year or on demand:
Bank overdrafts 2 197,563

16. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
2023 2022
£    £   
Within one year 188,572 170,302
Between one and five years 632,010 672,000
In more than five years - 126,000
820,582 968,302

17. SECURED DEBTS

The following secured debts are included within creditors:

2023 2022
£    £   
Bank overdrafts 2 197,563
Factoring advances 148,450 210,928
148,452 408,491

The bank borrowings are secured as follows:

By fixed and floating charge over the undertakings and all property and assets present and future including goodwill, book debts, uncalled capital, buildings, fixtures and fixed plant & machinery.

18. FINANCIAL INSTRUMENTS

The company has the following financial instruments:
2023 2022
£ £
Financial assets that are debt instruments measured at amortised cost
Trade debtors 1,594,649 1,594,649
Other debtors 54,038 54,038
Financial liabilities measured at amortised cost
Trade creditors 607,809 2,484,900
Bank loans and overdrafts 2 197,563
Factoring advances 148,450 210,928


There is no interest income or expense for financial assets and liabilities that are not measured at fair value through profit and loss.

19. PROVISIONS FOR LIABILITIES
2023 2022
£    £   
Deferred tax
Accelerated capital allowances 83,489 63,595

OPICO LIMITED (REGISTERED NUMBER: 06175803)

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

19. PROVISIONS FOR LIABILITIES - continued

Deferred
tax
£   
Balance at 1 January 2023 63,595
Charge to Statement of Comprehensive Income during year 19,894
Balance at 31 December 2023 83,489

20. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
1,000 Ordinary £1 1,000 1,000

21. CONTINGENT LIABILITIES

The company has an inter-company guarantee in place with its parent company Driftview Holdings Limited to secure the bank borrowings, which were £865,229 (2022 - £1,030,419) at the financial position date. Security given is as specified in the secured debts note to the financial statements.

22. CAPITAL COMMITMENTS
2023 2022
£    £   
Contracted but not provided for in the
financial statements 113,777 267,877

23. OTHER FINANCIAL COMMITMENTS

At the balance sheet date, the company had outstanding currency forward contract deals of a sterling equivalent of £2,971,165 (2022 - £5,676,817). This is in respect of forward contracts in Euros purchased as a hedge against fluctuations in the currency.

24. RELATED PARTY DISCLOSURES

Entities over which the entity has control, joint control or significant influence
2023 2022
£    £   
Sales 33,419 6,826

During the year, a total of key management personnel compensation of £ 218,484 (2022 - £ 189,419 ) was paid.

Driftview Holdings Limited is regarded by the directors as being the company's ultimate parent company.

The ultimate controlling party is J A Woolway.