Litchfield Imports (Gloucestershire) Limited 07135006 false 2023-01-01 2023-12-31 2023-12-31 The principal activity of the company is Maintenance and repair of motor vehicles Digita Accounts Production Advanced 6.30.9574.0 true 07135006 2023-01-01 2023-12-31 07135006 2023-12-31 07135006 core:FurtherSpecificItem1DeferredTaxComponentTotalForDeferredTax 2023-12-31 07135006 core:FurtherSpecificItem2DeferredTaxComponentTotalForDeferredTax 2023-12-31 07135006 core:CurrentFinancialInstruments 2023-12-31 07135006 core:CurrentFinancialInstruments core:WithinOneYear 2023-12-31 07135006 core:Non-currentFinancialInstruments 2023-12-31 07135006 core:Non-currentFinancialInstruments core:AfterOneYear 2023-12-31 07135006 core:FurnitureFittingsToolsEquipment 2023-12-31 07135006 core:LandBuildings 2023-12-31 07135006 core:MotorVehicles 2023-12-31 07135006 bus:SmallEntities 2023-01-01 2023-12-31 07135006 bus:AuditExemptWithAccountantsReport 2023-01-01 2023-12-31 07135006 bus:FullAccounts 2023-01-01 2023-12-31 07135006 bus:SmallCompaniesRegimeForAccounts 2023-01-01 2023-12-31 07135006 bus:RegisteredOffice 2023-01-01 2023-12-31 07135006 bus:Director1 2023-01-01 2023-12-31 07135006 bus:PrivateLimitedCompanyLtd 2023-01-01 2023-12-31 07135006 core:FurnitureFittings 2023-01-01 2023-12-31 07135006 core:FurnitureFittingsToolsEquipment 2023-01-01 2023-12-31 07135006 core:LandBuildings 2023-01-01 2023-12-31 07135006 core:LeaseholdImprovements 2023-01-01 2023-12-31 07135006 core:MotorVehicles 2023-01-01 2023-12-31 07135006 countries:EnglandWales 2023-01-01 2023-12-31 07135006 2022-12-31 07135006 core:FurnitureFittingsToolsEquipment 2022-12-31 07135006 core:LandBuildings 2022-12-31 07135006 core:MotorVehicles 2022-12-31 07135006 2022-01-01 2022-12-31 07135006 2022-12-31 07135006 core:FurtherSpecificItem1DeferredTaxComponentTotalForDeferredTax 2022-12-31 07135006 core:FurtherSpecificItem2DeferredTaxComponentTotalForDeferredTax 2022-12-31 07135006 core:CurrentFinancialInstruments 2022-12-31 07135006 core:CurrentFinancialInstruments core:WithinOneYear 2022-12-31 07135006 core:Non-currentFinancialInstruments 2022-12-31 07135006 core:Non-currentFinancialInstruments core:AfterOneYear 2022-12-31 07135006 core:FurnitureFittingsToolsEquipment 2022-12-31 07135006 core:LandBuildings 2022-12-31 07135006 core:MotorVehicles 2022-12-31 iso4217:GBP xbrli:pure

Registration number: 07135006

Prepared for the registrar

Litchfield Imports (Gloucestershire) Limited

Annual Report and Unaudited Financial Statements

for the Year Ended 31 December 2023

 

Litchfield Imports (Gloucestershire) Limited

(Registration number: 07135006)
Balance Sheet as at 31 December 2023

Note

2023
£

2022
£

Fixed assets

 

Tangible assets

4

436,164

349,370

Current assets

 

Stocks

5

1,794,129

1,964,704

Debtors

6

938,081

770,444

Cash at bank and in hand

 

210,066

91,568

 

2,942,276

2,826,716

Creditors: Amounts falling due within one year

7

(828,537)

(852,196)

Net current assets

 

2,113,739

1,974,520

Total assets less current liabilities

 

2,549,903

2,323,890

Creditors: Amounts falling due after more than one year

7

(379,680)

(211,169)

Deferred tax liabilities

9

(42,226)

(27,925)

Net assets

 

2,127,997

2,084,796

Capital and reserves

 

Called up share capital

1

1

Profit and loss account

2,127,996

2,084,795

Shareholders' funds

 

2,127,997

2,084,796

For the financial year ending 31 December 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the Profit and Loss Account has been taken.

Approved and authorised by the Board on 26 September 2024 and signed on its behalf by:
 

Mr I Litchfield
Director

   
     
 

Litchfield Imports (Gloucestershire) Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

 

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Highfield Farmhouse
Tewkesbury Road
Deerhurst
GL19 4BP

 

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).

Basis of preparation

These financial statements have been prepared using the historical cost convention except for, where disclosed in these accounting policies, certain items that are shown at fair value.

The presentational currency of the financial statements is Pounds Sterling, being the functional currency of the primary economic environment in which the company operates. Monetary amounts in these financial statements are rounded to the nearest Pound.

Judgements and key sources of estimation uncertainty

No significant judgements or key sources of estimation uncertainty have been made by management in preparing these financial statements.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts and after eliminating sales within the company.

The company recognises revenue when: The amount of revenue can be reliably measured; it is probable that future economic benefits will flow to the entity; and specific criteria have been met for each of the company's activities.

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rates prevailing on the initial transaction dates.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

 

Litchfield Imports (Gloucestershire) Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in the profit and loss account, except that a charge attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current corporation tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred income tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

Tangible assets

Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Furniture fittings and equipment

33/25% straight line

Land and buildings

Over 5 or 12 years

Motor vehicles

25% straight line

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. All trade debtors are repayable within one year and hence are included at the undiscounted cost of cash expected to be received. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the debtors.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

 

Litchfield Imports (Gloucestershire) Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

Trade creditors

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 the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and all are repayable within one year and hence are included at the undiscounted amount of cash expected to be paid.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the Balance Sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the Profit and Loss Account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

Financial instruments


Classification
Financial instruments are classified and accounted for according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Where shares are issued, any component that creates a financial liability of the company is presented as a liability on the balance sheet. The corresponding dividends relating to the liability component are charged as interest expenses in the profit and loss account.

 Recognition and measurement
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

 Impairment
Assets, other than those measured at fair value, are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss as described.

 

Litchfield Imports (Gloucestershire) Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

 

3

Staff numbers

The average number of persons employed by the company (including directors) during the year, was 37 (2022 - 36).

 

4

Tangible assets

Land and buildings
£

Furniture, fittings and equipment
 £

Motor vehicles
 £

Total
£

Cost

At 1 January 2023

220,688

963,293

104,168

1,288,149

Additions

74,973

90,287

76,408

241,668

Disposals

-

(795)

(22,969)

(23,764)

At 31 December 2023

295,661

1,052,785

157,607

1,506,053

Depreciation

At 1 January 2023

49,089

796,371

93,319

938,779

Charge for the year

30,379

102,751

20,961

154,091

Eliminated on disposal

-

(200)

(22,781)

(22,981)

At 31 December 2023

79,468

898,922

91,499

1,069,889

Carrying amount

At 31 December 2023

216,193

153,863

66,108

436,164

At 31 December 2022

171,599

166,922

10,849

349,370

 

5

Stocks

2023
 £

2022
 £

Stocks

1,794,129

1,964,704

 

6

Debtors

Note

2023
 £

2022
 £

Trade debtors

 

238,280

174,073

Amounts owed by related parties

11

582,308

495,627

Other debtors

 

46,055

41,007

Prepayments

 

71,438

59,737

   

938,081

770,444

 

Litchfield Imports (Gloucestershire) Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

 

7

Creditors

Note

2023
 £

2022
 £

Due within one year

 

Loans and borrowings

8

168,704

103,923

Trade creditors

 

159,865

240,758

Amounts due to related parties

11

146,658

100,410

Social security and other taxes

 

162,853

100,060

Outstanding defined contribution pension costs

 

5,570

5,355

Other creditors

 

91,000

232,392

Accrued expenses

 

45,529

11,675

Corporation tax liability

48,358

57,623

 

828,537

852,196

Note

2023
£

2022
£

Due after one year

 

Loans and borrowings

8

379,680

211,169

 

8

Loans and borrowings

2023
£

2022
£

Current loans and borrowings

Bank borrowings (secured)

50,000

50,000

HP and finance lease liabilities (secured)

118,704

53,923

168,704

103,923

2023
£

2022
£

Non-current loans and borrowings

Bank borrowings (secured)

66,667

116,667

HP and finance lease liabilities (secured)

313,013

94,502

379,680

211,169

Finance lease liabilities are secured on the related asset being financed.

The £116,667 (2022: £166,667) bank borrowings (£50,000 due within one year and £66,667 due after one year) represent a Bounce Back loan which is guaranteed by the UK Government.
 

 

Litchfield Imports (Gloucestershire) Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

 

9

Deferred tax

Deferred tax assets and liabilities

2023

Liability
£

Accelerated tax depreciation

42,768

Short term timing differences

(542)

42,226

2022

Liability
£

Accelerated tax depreciation

28,462

Short term timing differences

(537)

27,925

 

10

Financial commitments, guarantees and contingencies

Amounts not provided for in the balance sheet

The total amount of financial commitments not included in the balance sheet is £63,737 (2022 - £43,373).

 

11

Related party transactions

Summary of transactions with parent
At the balance sheet date, Litchfield Imports (Gloucestershire) Limited loaned their parent company, Movit UK Limited, £582,308 (2022: £495,627). This is an interest free loan and is repayable on demand.

Summary of transactions with other related parties
At the balance sheet date, Litchfield Imports (Gloucestershire) Limited owed Litchfield Motors Limited, a company under common control, £146,658 (2022: £100,410). This is an interest free loan and is repayable on demand.

 

12

Parent and ultimate parent undertaking

The company's immediate parent is Movit (UK) Limited, incorporated in United Kingdom.