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REGISTERED NUMBER: 00852710 (England and Wales)















Strategic Report,

Report of the Directors and

Financial Statements

for the Year Ended 31 December 2023

for

SUTTON PARK MOTOR COMPANY LIMITED

SUTTON PARK MOTOR COMPANY LIMITED (REGISTERED NUMBER: 00852710)

Contents of the Financial Statements
for the year ended 31 December 2023










Page

Company Information 1

Strategic Report 2

Report of the Directors 3

Report of the Independent Auditors 5

Statement of Comprehensive Income 8

Statement of Financial Position 9

Statement of Changes in Equity 10

Notes to the Financial Statements 11


SUTTON PARK MOTOR COMPANY LIMITED

Company Information
for the year ended 31 December 2023







Directors: D Fulton
J L Shannon
C Thomas
M P Yarwood





Secretary: J L Shannon





Registered office: 37 Lichfield Street
Burton On Trent
Staffordshire
DE14 3RH





Registered number: 00852710 (England and Wales)





Auditors: Haines Watts, Stautory Auditor
Northern Assurance Buildings
9-21 Princess Street
Manchester
M2 4DN

SUTTON PARK MOTOR COMPANY LIMITED (REGISTERED NUMBER: 00852710)

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
Sutton Park Motor Company Ltd is a privately owned Motor Dealer Group with 7 locations across the Midlands, representing 3 Brands.

The business continues to show solid growth in the year and was able to repay all long term debt.

The change in Manufacturer's new car production impacted upon used vehicle values particularly in the last quarter and adjustments have been made to trading to eliminate excess stockholding in the first quarter post year end.

The Directors remain confident in the stability of the business moving forward, which allows for consideration should future opportunities arise.

Principal risks and uncertainties
a) GENERAL ECONOMIC CONDITIONS
The group and company operate in a retail environment and are therefore reliant on consumer spending.
The UK government has currently increased interest rates to curb the rising inflation and to reduce consumer spending. As a result, the directors have adapted the business over the previous 12 months, and will continue to monitor economic conditions and further government announcements in these areas to mitigate the impact on the group and company.

b) MANUFACTURER RELATIONSHIPS AND SUPPLY
The group relies on the strength of its relationships with the vehicle manufacturers to deliver a significant component of group trading. Changes in the strategy of those key manufacturers could materially impact the group's results. Linked to this the group is reliant on new vehicle products from its franchise partners and therefore there are risks regarding available, quality and pricing of new products set by the manufacturers. It is in the manufacturers best interests to be competitive in this area and therefore the risk is considered low, and is offset by other core areas such as used vehicles sales, parts sales and service work.

c) USED VEHICLE PRICES
Used vehicles price movements can present a significant risk in the event that the market price moves rapidly between the point of purchase and point of sale of a used vehicle which impacts anticipated margins. Used vehicles stocks are regularly monitored with a focus on stock turn to reduce the length of time that used vehicles are in stock, and review prices to ensure they remain competitive to achieve this.

d) COMPETITION AND PEOPLE
The market is highly competitive with various alternatives that customers can look to. The company is proud of its reputation for customer service, quality and value to mitigate this risk.This reputation is due to investment in people and training over the years, to reinforce the Sutton Park brand. The group undertakes regular reviews of remuneration and packages to ensure that it attracts and retains its best people.

On behalf of the board:





C Thomas - Director


1 August 2024

SUTTON PARK MOTOR COMPANY LIMITED (REGISTERED NUMBER: 00852710)

Report of the Directors
for the year ended 31 December 2023


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

Principal activity
The principal activity of the company in the year under review was that of a car dealership.

Dividends
The total distributions of dividends for the year ended 31 December 2023 will be £nil (2022: £1,500,000)

Future developments
The directors consider that the business will be well placed to take advantage of any future opportunities which may present themselves.

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

D Fulton
J L Shannon
C Thomas
M P Yarwood

Financial instruments
The company use various financial instruments including overdrafts, cash and various items such as trade debtors and trade creditors that arise directly from its operations. The company does not use derivative financial instruments to manage these risk.

The existence of these financial instruments expose the company to a number of financial risks including liquidity risk, interest rate risk and credit risk which are described in more detail below:

Liquidity risk
The company makes efforts to manage the financial risk by the monitoring of cashflow to ensure that the company is able to meet its foreseeable debts as they fall due and to invest any cash asset profitability.

Interest rate risk
The company sometimes uses bank borrowings to finance its operations during peak periods.

Due to the limited use of facility, and the historically low prevailing interest rate, the director do not deem it necessary to hedge against interest rate fluctuations.

Credit risk
The company's principal assets are cash and trade debtors. The credit risk associated with the cash is minimal.
The principal credit risk therefore arises from its trade debtors.

In order to manage credit risk the directors have implemented processes to ensure receipt of cleared funds for vehicles sales before the vehicle is released.

Other trade debtors require approved credit in advance which is supported by references and payments is required within the company's credit terms therefore minimising credit risk.

Disclosure in the Strategic Report
The directors' review of the business, and their consideration of the risk and uncertainties surrounding the business, may be found in the Strategic Report.


SUTTON PARK MOTOR COMPANY LIMITED (REGISTERED NUMBER: 00852710)

Report of the Directors
for the year ended 31 December 2023

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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

- select suitable accounting policies and then apply them consistently;
- make judgements and accounting estimates that are reasonable and prudent;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Statement as to disclosure of information to auditors
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

On behalf of the board:





C Thomas - Director


1 August 2024

Report of the Independent Auditors to the Members of
Sutton Park Motor Company Limited


Opinion
We have audited the financial statements of Sutton Park Motor Company 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.

Report of the Independent Auditors to the Members of
Sutton Park Motor Company Limited


Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page 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 assessed the susceptibility of the company's financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the engagement team included:

- identifying and assessing the design and effectiveness of controls that management has in place to prevent and detect fraud;
- understanding how those charged with governance considered and considered and assessed the potential for override of controls or other inappropriate influence over the reporting process;
- challenging assumptions and judgements made by management in its significant accounting estimates, in particular stock provision by reference to events after date and e,g, CAP guide;
- identifying and testing journal entries, in particular any journals posted we considered to be unusual. This included the use of audit data analytic software;
- performing extended substantive testing on revenue streams, with a focus on existence and cut-off;
- assessing the extent of compliance with applicable laws and regulations.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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
Sutton Park Motor Company 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.




Antony Sassen (Senior Statutory Auditor)
for and on behalf of Haines Watts, Stautory Auditor
Northern Assurance Buildings
9-21 Princess Street
Manchester
M2 4DN

1 August 2024

SUTTON PARK MOTOR COMPANY LIMITED (REGISTERED NUMBER: 00852710)

Statement of Comprehensive
Income
for the year ended 31 December 2023

2023 2022
Notes £ £

Turnover 4 146,037,665 116,300,717

Cost of sales (141,066,356 ) (110,991,471 )
Gross profit 4,971,309 5,309,246

Administrative expenses (4,069,493 ) (3,604,272 )
Operating profit 6 901,816 1,704,974


Interest payable and similar expenses 7 (232,168 ) (68,741 )
Profit before taxation 669,648 1,636,233

Tax on profit 8 (190,726 ) (317,759 )
Profit for the financial year 478,922 1,318,474

Other comprehensive income - -
Total comprehensive income for the year 478,922 1,318,474

SUTTON PARK MOTOR COMPANY LIMITED (REGISTERED NUMBER: 00852710)

Statement of Financial Position
31 December 2023

2023 2022
Notes £ £ £ £
Fixed assets
Tangible assets 10 708,139 205,197

Current assets
Stocks 11 16,400,777 10,374,638
Debtors 12 3,067,676 3,089,454
Cash at bank and in hand 3,141 566,156
19,471,594 14,030,248
Creditors
Amounts falling due within one year 13 16,782,056 11,448,890
Net current assets 2,689,538 2,581,358
Total assets less current liabilities 3,397,677 2,786,555

Provisions for liabilities 17 142,000 9,800
Net assets 3,255,677 2,776,755

Capital and reserves
Called up share capital 18 1,000 1,000
Retained earnings 19 3,254,677 2,775,755
Shareholders' funds 3,255,677 2,776,755

The financial statements were approved by the Board of Directors and authorised for issue on 1 August 2024 and were signed on its behalf by:





C Thomas - Director


SUTTON PARK MOTOR COMPANY LIMITED (REGISTERED NUMBER: 00852710)

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 2,957,281 2,958,281

Changes in equity
Dividends - (1,500,000 ) (1,500,000 )
Total comprehensive income - 1,318,474 1,318,474
Balance at 31 December 2022 1,000 2,775,755 2,776,755

Changes in equity
Total comprehensive income - 478,922 478,922
Balance at 31 December 2023 1,000 3,254,677 3,255,677

SUTTON PARK MOTOR COMPANY LIMITED (REGISTERED NUMBER: 00852710)

Notes to the Financial Statements
for the year ended 31 December 2023


1. Statutory information

Sutton Park Motor Company 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.

2. Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006.

3. Accounting policies

Going concern
The directors have assessed and concluded that the group have adequate resources to meet its debts as they fall due for the period of 12 months after the approval of these financial statements.

In light of the statement above, the directors have therefore prepared the financial statements on a going concern basis.

Basis of preparation of financial statements
The preparation of the financial statements in compliance with FRS 102 require the use of certain critical accounting estimates. It also requires management to exercise judgment, in applying the company's accounting policies (see judgements in applying accounting policies and key sources of estimation uncertainty below).

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);
the requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and
11.48(c);
the requirement of paragraph 33.7.

This information is included in the consolidated financial statements of Sutton Park Holdings Limited as at 31 December 2023 and the financial statements may be obtained from Companies House, Crown Way, Cardiff, CF14 3UZ.

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.

SUTTON PARK MOTOR COMPANY LIMITED (REGISTERED NUMBER: 00852710)

Notes to the Financial Statements - continued
for the year ended 31 December 2023


3. Accounting policies - continued

Judgments in applying accounting policies and key sources of estimation
The preparation of the financial statements require management to make judgements, estimates and assumptions that effect the amounts reported for assets and liabilities at the reporting date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates.

The following judgments have been made by the directors in applying the company's accounting policies:

a) Stock valuation
Stock valuation is regularly monitored against age profile and market demand Management use a number of market tools during the appraisal process including Glass' and CAP valuation guides. The directors maintain oversight the ageing stock profiles and monthly review of any provision required is performed.

b) Property improvements, plant & machinery and fixtures & fittings
At each reporting date property improvements, plant and machinery and fixtures and fittings are assessed for any indication of impairment. If such indication exists the recoverable amount of the asset is determined based on value in use calculations which require estimates to be made of future cash flows. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

c) Brand Incentives
The company receives income in the form of various incentives which are determined by the company's brand partners. The amount receivable is generally based on achieving specific objectives such as a specified sales volume, as well as other objectives including maintaining brand partner standards which may include, but are not limited to, retail centre image and design requirements, customer satisfaction survey results and training standards. Objectives are generally set and measured on either a quarterly on annual basis.

Where incentives are based on a specific sales volume or number of registrations, the related income is recognised as a reduction in cost of sales when it is reasonably certain that the income has been earned. This is generally the later of the date the related vehicles are sold or registered when it is reasonably certain the related target will be met.

Where incentives are linked to retail centre image and design requirements, customer satisfaction survey results or training standards. They are recognised as a reduction in cost of sales when it is reasonably certain that the incentives will be received for the relevant period.

The company may also receive contributions towards facilities' capital expenditure, advertising and promotion. Where the expenditure is received relative to an item of expenditure it is recognised within the Statement of Comprehensive Income to match the cost of that item of expenditure or depreciation of that asset class.

Turnover
Turnover from the sales of goods is recognised in the Statement of Comprehensive Income, net of discounts and value added tax, when the significant risks and rewards of ownership have been transferred to the buyer. In general this occurs when vehicles or parts have been supplied or when a service has been completed.

Commission income is recognised on a receivable basis.

SUTTON PARK MOTOR COMPANY LIMITED (REGISTERED NUMBER: 00852710)

Notes to the Financial Statements - continued
for the year ended 31 December 2023


3. Accounting policies - continued

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Leasehold improvements - 33% straight line and 10% straight line
Plant and machinery - 33% straight line and 10% straight line
Fixtures and fittings - 25% straight line and 10% straight line

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulation impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

The company adds to the carrying amount of an item of fixed assets the cost of replacing part of such an item when the cost is incurred, if the replacement part is expected to be provide incremental future benefits to the company. Repairs and maintenance are charged to the Statement of Comprehensive Income during the period in which they are incurred.

The assets' residual values useful lives and depreciation methods are reviewed and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gain and loss on disposals are determined by comparing the proceeds with the carrying amount and are recognised within the Statement of Comprehensive Income.

Stocks
Stocks are stated at the lower of cost and net realisable value, after making due to allowance for obsolete and slow moving stocks.

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

Consignment stocks
Consignment vehicles which bear considerably more of the risks and responsibilities of ownership are regarded effectively as being under the control of the company and, in accordance with FRS 102 are included in stocks on the Statement of Financial Position, although legal title has not passed to the company. The corresponding liability is included as new vehicle funding is creditors and is secured directly on these vehicles.

Financial instrument
The company only has basic financial instruments, which are recognised at amortised cost.

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 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 period different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have need enacted or substantively enacted by the year 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 recoverable against the reversal of deferred tax liabilities or other future taxable profit.

SUTTON PARK MOTOR COMPANY LIMITED (REGISTERED NUMBER: 00852710)

Notes to the Financial Statements - continued
for the year ended 31 December 2023


3. Accounting policies - continued

Leasing commitments
Rentals paid under operating leases are charged to the Statement of Comprehensive Income 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 the Statement of Comprehensive Income in the period to which they relate.

Debtors
Short term debtors are measured at transaction price, less any impairment.

Creditors
Short term creditors are measured at the transaction price. Other financial liabilities, including bank overdrafts, are measured amortised cost.

Finance cost
Finance costs are charged to the Statement of Comprehensive Income over the term of the debt.

Dividends
Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final dividends are recognised when they are approved by the shareholders.

4. 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
£ £
Sale of goods 143,644,284 113,801,578
Rendering of services 1,347,762 1,265,711
Commissions 942,809 1,133,078
Other 102,810 100,350
146,037,665 116,300,717

5. Employees and directors
2023 2022
£ £
Wages and salaries 5,056,819 4,727,696
Social security costs 495,536 487,778
Other pension costs 144,676 138,653
5,697,031 5,354,127

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

Sales, servicing and parts 123 117
Administration 20 20
143 137

SUTTON PARK MOTOR COMPANY LIMITED (REGISTERED NUMBER: 00852710)

Notes to the Financial Statements - continued
for the year ended 31 December 2023


5. Employees and directors - continued

2023 2022
£ £
Directors' remuneration 337,571 288,386
Directors' pension contributions to money purchase schemes 54,730 50,230

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

Money purchase schemes 3 3

Information regarding the highest paid director is as follows:
2023 2022
£ £
Emoluments etc 120,730 100,000
Pension contributions to money purchase schemes 20,000 20,000

Directors' remuneration has been allocated on time usage between group companies.

6. Operating profit

The operating profit is stated after charging:

2023 2022
£ £
Other operating leases 897,943 885,756
Depreciation - owned assets 111,425 55,882
Loss on disposal of fixed assets - 951
Auditors' remuneration 23,000 22,500
Auditors' remuneration for non audit work 3,500 3,000

7. Interest payable and similar expenses
2023 2022
£ £
Bank interest 2,500 2,400
Stocking loan interest 229,668 66,341
232,168 68,741

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 58,274 312,659
(Over)/under provision PY 252 -
Total current tax 58,526 312,659

Deferred tax 132,200 5,100
Tax on profit 190,726 317,759

SUTTON PARK MOTOR COMPANY LIMITED (REGISTERED NUMBER: 00852710)

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 higher than the standard rate of corporation tax in the UK. The difference is explained below:

2023 2022
£ £
Profit before tax 669,648 1,636,233
Profit multiplied by the standard rate of corporation tax in the UK of 25%
(2022 - 19%)

167,412

310,884

Effects of:
Expenses not deductible for tax purposes 2,702 10,035
Capital allowances in excess of depreciation (106,931 ) (8,260 )
Adjustments to tax charge in respect of previous periods 252 -
Change in tax rates (4,909 ) -
Deferred tax movement 132,200 5,100
Total tax charge 190,726 317,759

Since 1 April 2023, profits have been charged a corporation tax rate of 25% compared to 19% previously.

9. Dividends

The total distribution of dividends for the year ended 31 December 2023 was £nil.

10. Tangible fixed assets
Fixtures
Leasehold Plant and and
improvements machinery fittings Totals
£ £ £ £
Cost
At 1 January 2023 517,050 421,752 578,194 1,516,996
Additions - 37,488 576,879 614,367
At 31 December 2023 517,050 459,240 1,155,073 2,131,363
Depreciation
At 1 January 2023 507,760 304,620 499,419 1,311,799
Charge for year 2,905 29,895 78,625 111,425
At 31 December 2023 510,665 334,515 578,044 1,423,224
Net book value
At 31 December 2023 6,385 124,725 577,029 708,139
At 31 December 2022 9,290 117,132 78,775 205,197

All fixed assets are pledged as security for the company's bank overdraft.

SUTTON PARK MOTOR COMPANY LIMITED (REGISTERED NUMBER: 00852710)

Notes to the Financial Statements - continued
for the year ended 31 December 2023


11. Stocks
2023 2022
£ £
Vehicle stock 16,197,444 10,221,378
Parts stock 203,333 153,260
16,400,777 10,374,638

The movements on the stock provision during the year for the group was as follows:

20232022
£   £   
Balance at 1 January330,409531,616
Provided in year688,653300,545
Utilised in year(158,630)(231,752)
Balance at 31 December860,432330,409

All stock is pledged as security for the vehicle funding and bank facilities.

12. Debtors: amounts falling due within one year
2023 2022
£ £
Trade debtors 1,697,162 2,239,951
Other debtors 745,074 553,330
VAT 277,160 -
Prepayments 348,280 296,173
3,067,676 3,089,454

13. Creditors: amounts falling due within one year
2023 2022
£ £
Bank loans and overdrafts (see note 14) 144,109 -
Trade creditors 14,305,683 9,187,353
Amounts owed to group undertakings 419,192 1,101,303
Corporation tax 58,295 175,965
Social security and other taxes 138,329 223,328
Other creditors 1,439,866 530,600
Accruals and deferred income 276,582 230,341
16,782,056 11,448,890

14. Loans

An analysis of the maturity of loans is given below:

2023 2022
£ £
Amounts falling due within one year or on demand:
Bank overdrafts 144,109 -

SUTTON PARK MOTOR COMPANY LIMITED (REGISTERED NUMBER: 00852710)

Notes to the Financial Statements - continued
for the year ended 31 December 2023


15. Leasing agreements

Minimum lease payments under non-cancellable operating leases fall due as follows:
2023 2022
£ £
Within one year 934,500 885,750
Between one and five years 2,017,000 2,293,500
In more than five years 2,871,750 3,341,000
5,823,250 6,520,250

16. Secured debts

The following secured debts are included within creditors:

2023 2022
£ £
Bank overdraft 144,109 -
Vehicle funding 14,269,480 8,473,717
14,413,589 8,473,717

The vehicle funding, included within trade creditors & other creditors , is secured over the vehicles to which it relates.
The bank overdraft is secured by a fixed and floating charge over the assets of the company.

17. Provisions for liabilities
2023 2022
£ £
Deferred tax
Accelerated capital allowances 142,000 9,800

Deferred tax
£
Balance at 1 January 2023 9,800
Charge to Statement of Comprehensive Income during year 132,200
Balance at 31 December 2023 142,000

18. Called up share capital

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

SUTTON PARK MOTOR COMPANY LIMITED (REGISTERED NUMBER: 00852710)

Notes to the Financial Statements - continued
for the year ended 31 December 2023


19. Reserves
Retained
earnings
£

At 1 January 2023 2,775,755
Profit for the year 478,922
At 31 December 2023 3,254,677

Called up share capital

Called up share capital represents the nominal value of the shares issued.

Retained earnings

The retained earnings represents cumulative profits or losses, net of any dividends paid and other adjustments.

20. Pension commitments

The company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and amounted to £144,676 (2022: £138,653). Contributions totalling £17,621 (2022: £17,592) were payable to the fund at the reporting date.

21. Ultimate parent company

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

The registered office of Sutton Park Holdings Limited is 37 Lichfield Street, Burton on Trent, Staffordshire, DE14 3RH.

22. Contingent liabilities and guarantees

The company has previously received funds in relation to financial support from a manufacturer.These monies can be reclaimed in the event of franchise termination within the first five years of the financial support being paid on a reducing balance basis. The amount that could potentially be reclaimed at the reporting date was £122,500 (2022: £369,167). During 2023 the company received no further funds (2022: £nil).


There is an unlimited guarantee in respect of bank borrowings between Sutton Park Holding Limited and Sutton Park Motor Company Limited in favour of Barclays Bank plc. At the reporting date Sutton Park Holdings Limited's borrowings in this respect amounted to £nil (2022: £975,575).

23. Related party disclosures

Other related parties
2023 2022
£ £
Purchases 93,750 85,000

24. Ultimate controlling party

The ultimate controlling party during the year of review, and the previous year, was D J A Fulton by virtue of his 100% shareholding in the parent company Sutton Park Holdings Limited.