GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
FOR |
EVOGO GROUP LTD |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
FOR |
EVOGO GROUP LTD |
EVOGO GROUP LTD (REGISTERED NUMBER: 11388495) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
for the year ended 31 December 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 6 |
Report of the Independent Auditors | 8 |
Consolidated Statement of Comprehensive Income | 11 |
Consolidated Balance Sheet | 12 |
Company Balance Sheet | 13 |
Consolidated Statement of Changes in Equity | 14 |
Company Statement of Changes in Equity | 15 |
Consolidated Cash Flow Statement | 16 |
Notes to the Consolidated Cash Flow Statement | 17 |
Notes to the Consolidated Financial Statements | 18 |
EVOGO GROUP LTD |
COMPANY INFORMATION |
for the year ended 31 December 2023 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
SENIOR STATUTORY AUDITOR: | James Timothy Card FCCA |
AUDITORS: |
Statutory Auditors |
70-72 Nottingham Road |
Mansfield |
Nottinghamshire |
NG18 1BN |
EVOGO GROUP LTD (REGISTERED NUMBER: 11388495) |
GROUP STRATEGIC REPORT |
for the year ended 31 December 2023 |
The directors present their strategic report of the company and the group for the year ended 31 December 2023. |
About the company |
The principal activities of the business is the sales of motor vehicles and related services and the hiring of motor vehicles. |
The motor vehicle sales and related services operate from a retail site in Sheffield, and trade under the name of 'Mike Brewer Motors'. In addition to the garage itself, customers are served via telephone and email communication channels or via the website www.mikebrewermotors.com where details of vehicles in stock can be viewed. In addition to this the business also operates it's vehicle rental service from the same facility in Sheffield under the Evogo name. |
REVIEW OF BUSINESS |
The directors are pleased with the overall performance of the group for the year, in what has been a challenging environment, both politically and as a result of the ongoing lack of availability of new rental vehicles. |
The key performance indicators by which financial performance is measured are as follows:- |
2023 | 2022 |
Revenue | £41.6m | £42.4m |
Gross profit % | 13.92% | 17.16% |
Number of vehicles sold | 1,508 | 1,552 |
Live vehicle hire agreements | 1,066 | 1,218 |
Total equity | £18.7m | £20.3m |
The directors are confident that the business can maintain the current level of activity, despite their expectation that the economic environment will remain difficult throughout the next year due to the availability of new cars. |
Employee Strategy |
To meet the demand of a such fast paced growing business the directors have continued to recruit new employees to meet customer demand. |
The directors have continued to invest in internal training and all staff are encouraged to attend a minimum level of training workshops within the year. As well as learning new skills the directors feel the training programmes give the employees greater knowledge of the wider business and improve the efficiency in which they can work together. |
The directors feel that the internal training has supported the development of many of the team who have progress to new roles within the company. This also reflect our intention to promote within where possible. |
EVOGO GROUP LTD (REGISTERED NUMBER: 11388495) |
GROUP STRATEGIC REPORT |
for the year ended 31 December 2023 |
PRINCIPAL RISKS AND UNCERTAINTIES |
The management and execution of the business strategy is subject to a number of risks in addition to those noted in the Directors' report. The key risks to delivering the strategy of the business include but are not limited to: |
Competition |
The UK vehicle market is highly competitive and customers have a broad choice of retailers. The company primarily competes on the basis of a customer proposition which is focused on choice, value and service. If it fails to compete effectively in any of these areas, does not adapt effectively and quickly to changes in the competitive landscape, the company may fail to attract new customers and lose repeat customers |
Market risk |
Due to the market the company operates within, the hire and sale of vehicle operations result in the company acquiring and disposing of significant quantities of vehicles and as such the state of the car market, particularly with regards to residual values, is identified as a potential risk. This risk is minimised by an experienced team who control the acquisition and disposal of vehicles to ensure this risk is minimised. |
Brand and reputation |
Developing and maintaining the reputation of the company's brands is of importance to its success, as brand identity is a critical factor in attracting new and repeat customers. Failure to maintain the customer proposition of choice, value and service could damage the company's reputation and brand, result in a loss of customer confidence and impact levels of business. Unfavourable publicity concerning the company or the industry in which it operates could also have an adverse impact. |
Availability and terms of customer finance |
Customer demand and thus vehicle sales revenue is exposed to the risk of lending institutions reducing, terminating or materially altering the terms and conditions on which they are willing to offer consumer credit to the company's customers. Commission income revenue generated by the company acting as a regulated credit broker could be impacted if either the number of such arrangements reduces, or the structure and amount of commissions earned is altered. |
Availability of supply |
As the company continues to grow there is a risk that vehicle supply is insufficient to satisfy customer demand or the company's business plan. Relationships with key suppliers are longstanding, however, the company does not have long-term contractual supply arrangements and a reduction in the supply of vehicles could have a material adverse effect on the business. |
Regulatory risk |
The markets the company operates within are regulated by the FCA. The company has various FCA "permissions" to carry on consumer credit activities from which it derives income. There is a risk that increased regulation or restrictions on the sales process or nature of these products would restrict the income available to the company. |
In addition, whilst the directors believe that the company conducts its business in accordance with all applicable regulations and will endeavour to continue to do so, there remains a risk that the regulator will find that the business has not complied fully with such regulations. In such circumstances, the impact to the business of any regulatory fines and other costs, reputations damage and / or loss of FCA authorisation could be material. |
Disaster Recovery and Business Continuity |
The Company has an understandable reliance on its place of business, IT systems and people. The loss of key components could cause temporary disruption to business processes, whilst the company implements its established and detailed disaster recovery plan, which includes access to offsite facilities available for immediate use. |
EVOGO GROUP LTD (REGISTERED NUMBER: 11388495) |
GROUP STRATEGIC REPORT |
for the year ended 31 December 2023 |
SECTION 172(1) STATEMENT |
The directors consider, both individually and collectively, that in the decisions taken during the financial year they have satisfied the requirements of section 172 of the Companies Act 2006 ("s172") in performing their duties, to promote the success of the group and company for the benefit of its members, as a whole, and in doing so having regard to the stakeholders and matters outlined in that section which will have an impact on the long-term success of the company. |
The directors recognise that they have an important role in assessing and monitoring that the desired culture is embedded in the values, attitudes and behaviours that the group demonstrates, including our activities and stakeholder relationships. |
When making decisions, each director ensures that he considers, in good faith, what would most likely promote the company's success for the benefit of its members as a whole, and in doing so have regard (amongst other matters) to: |
" the likely consequences of any decision in the long term, by setting the regular process of budgeting and reforecasting over the short term in the context of the longer-term strategic plan. |
" the interests of the company's employees, as the directors recognise that employees are fundamental and core to our business and the delivery of our strategic ambitions. The success of our business is dependent upon attracting, retaining and motivating employees and ensuring that we remain a responsible employer, from pay and benefits to our health, safety and workplace environment. The directors factor the implications of decisions on employees and the wider workforce, where relevant and feasible. |
" the need to foster the company's business relationships with suppliers, customers and others, to develop strong, mutually beneficial relationships to deliver our strategy. |
" the impacts of the company's operations on the community and the environment, the directors seek to recognise the effects of their long-term decisions, and the ongoing operational activities in the context of the communities in which it operates, as well as the environment in general. |
" the desirability of the company maintaining a reputation for high standards of business conduct, and in recognising that the company needs to provide its solutions and services in ways which are economically, environmentally and socially responsible and seeks to make its long-term decisions and undertake its daily operations in that context. |
EVOGO GROUP LTD (REGISTERED NUMBER: 11388495) |
GROUP STRATEGIC REPORT |
for the year ended 31 December 2023 |
INDUSTRY RISKS |
Vehicle pricing |
Fluctuations in prices in the nearly-new and used vehicle market could impact the company's business as it rental fleet of vehicles held within property, planet and equipment would be affected by this in addition to significant inventory of such vehicles. |
OEM behaviour |
Although the company stocks a diverse range of OEM's s' (Original Equipment Manufacturer) vehicles, should a key OEM fail or experience a significant adverse reputational issue such as a regulatory non-compliance or health and safety based recall which negatively impacts on the desirability of some or all of its models, the Company could be required to dispose of vehicles at a loss or at a substantial discount. |
In addition, if the current model of vehicle sales changes (for example, if OEMs fundamentally alter the value chain of new vehicles and their routes to market), the Company's customer base might be altered. Similarly, if the current model of individuals purchasing and owning their own vehicles changes significantly, demand for the Company's services could be adversely affected. Technological advancements could create a different model for owning, buying and selling vehicles which could challenge the Company's business. |
Economic conditions |
The Company operates in Great Britain and therefore its business is affected by overall economic conditions and the level of customer confidence and spending in the country, including changes in factors such as unemployment, exchange rates, inflation or deflation and the cost of fuel. Whilst the Company's recent performance has remained robust and customer demand for nearly-new and used vehicles is generally considered to be less cyclical than customer demand for new vehicles, there remains a risk that economic conditions could deteriorate and suppress demand for nearly-new and used vehicles. |
Liquidity and financing |
The Company uses a selection of finance facilities to fund its operations, including a stock financing facility, which is secured against its retail vehicle stocks. A change in the pricing or a reduction in funding parameters and facility limits could significantly constrain the company's ability to trade or the company could be required to dispose of assets at below their market value or at a substantial discount. |
Financial instrument risk |
The company's principal financial instruments consist of cash, cash equivalents and hire purchase contracts. |
Interest rate risk: Hire purchase contracts are entered into with a mix of fixed and variable interest rates, therefore the company can be affected by changes in interest rates. |
Liquidity risk: The company minimises this risk by actively managing cash generated from its ordinary activities. |
ON BEHALF OF THE BOARD: |
EVOGO GROUP LTD (REGISTERED NUMBER: 11388495) |
REPORT OF THE DIRECTORS |
for the year ended 31 December 2023 |
The directors present their report with the financial statements of the company and the group for the year ended 31 December 2023. |
PRINCIPAL ACTIVITY |
The principal activity of the group in the year under review was that of motor vehicle sales and related services, rental of motor vehicles, rental of forklift trucks, hire of lighting equipment and public houses and restaurants. |
DIVIDENDS |
No dividends will be distributed for the year ended 31 December 2023. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 January 2023 to the date of this report. |
Other changes in directors holding office are as follows: |
ENGAGEMENT WITH EMPLOYEES |
It is company policy that there should be effective communication with all employees who, subject to practical and commercial considerations, should be consulted on and involved in decisions that affect their current jobs and future prospects. |
The achievement of this policy has to be treated flexibly in accordance with the varying circumstances and needs of the company but, in all cases, the emphasis is on communication at the local level. |
The company actively encourages the promotion of safe working conditions and procedures and the development of practices which secure and enhance the health and welfare at work of employees. |
STREAMLINED ENERGY AND CARBON REPORTING |
Greenhouse gas emissions, energy consumption and energy efficiency disclosures have not been provided as the company's energy consumption for year ended 31st December 2023 was less than 40,000 kWh. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group 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 the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
EVOGO GROUP LTD (REGISTERED NUMBER: 11388495) |
REPORT OF THE DIRECTORS |
for the year ended 31 December 2023 |
AUDITORS |
The auditors, Hewitt Card Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
EVOGO GROUP LTD |
Opinion |
We have audited the financial statements of Evogo Group Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the group's and of the parent company affairs as at 31 December 2023 and of the group's loss for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Group 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 Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
EVOGO GROUP LTD |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page six, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so. |
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 adopted a risk based approach based upon analytical procedures and knowledge of the clients systems and environment it operates in. |
This enables us to design and perform audit procedures responsive to those risks; and obtain audit evidence that is sufficient and appropriate to provide a basis for the audit opinion. |
To obtain an understanding of internal control where relevant to the audit to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the companys internal control. |
To evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. |
To conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the entity's ability to continue as a going concern. |
The likelihood of detecting irregularities is inherently difficult and we have designed our tests and procedures to reduce this risk. |
- We have enquired of management and the company's solicitors around actual and potential litigation and claims. - Review of company minutes of meetings of those charged with governance. |
- Reviewing financial statements disclosure and testing supporting documentation to assess compliance with applicable laws and regulations |
- Review and testing of management override of controls, including through testing journal entries and other adjustments for appropriateness and evaluating the business rationale of significant transactions. |
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 |
EVOGO GROUP LTD |
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. |
for and on behalf of |
Statutory Auditors |
70-72 Nottingham Road |
Mansfield |
Nottinghamshire |
NG18 1BN |
EVOGO GROUP LTD (REGISTERED NUMBER: 11388495) |
CONSOLIDATED |
STATEMENT OF COMPREHENSIVE |
INCOME |
for the year ended 31 December 2023 |
31.12.23 | 31.12.22 |
Notes | £ | £ |
TURNOVER | 41,583,760 | 42,395,903 |
Cost of sales | 35,793,517 | 35,119,908 |
GROSS PROFIT | 5,790,243 | 7,275,995 |
Administrative expenses | 5,244,311 | 5,545,967 |
545,932 | 1,730,028 |
Other operating income | 113,878 | 162,630 |
GROUP OPERATING PROFIT | 4 | 659,810 | 1,892,658 |
Share of operating profit in |
Joint ventures | 3,457 | 93,141 |
Interest receivable and similar income | 160,770 | 65,933 |
824,037 | 2,051,732 |
Interest payable and similar expenses | 5 | 2,132,039 | 1,253,460 |
(LOSS)/PROFIT BEFORE TAXATION | (1,308,002 | ) | 798,272 |
Tax on (loss)/profit | 6 | 246,607 | 554,799 |
(LOSS)/PROFIT FOR THE FINANCIAL YEAR | ( |
) |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
(1,554,609 |
) |
243,473 |
(Loss)/profit attributable to: |
Owners of the parent | (1,554,609 | ) | 243,473 |
Total comprehensive income attributable to: |
Owners of the parent | (1,551,152 | ) | 336,614 |
Non-controlling interests | (3,457 | ) | (93,141 | ) |
(1,554,609 | ) | 243,473 |
EVOGO GROUP LTD (REGISTERED NUMBER: 11388495) |
CONSOLIDATED BALANCE SHEET |
31 December 2023 |
31.12.23 | 31.12.22 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 8 | 2,122,460 | 2,420,906 |
Tangible assets | 9 | 35,744,310 | 38,748,533 |
Investments | 10 | 100,000 | - |
37,966,770 | 41,169,439 |
CURRENT ASSETS |
Stocks | 11 | 5,663,721 | 5,038,134 |
Debtors | 12 | 6,022,270 | 4,513,481 |
Cash at bank and in hand | 1,964,265 | 2,891,844 |
13,650,256 | 12,443,459 |
CREDITORS |
Amounts falling due within one year | 13 | 21,106,814 | 12,261,654 |
NET CURRENT (LIABILITIES)/ASSETS | (7,456,558 | ) | 181,805 |
TOTAL ASSETS LESS CURRENT LIABILITIES | 30,510,212 | 41,351,244 |
CREDITORS |
Amounts falling due after more than one year | 14 | (11,538,165 | ) | (20,904,421 | ) |
PROVISIONS FOR LIABILITIES | 18 | (261,443 | ) | (178,153 | ) |
NET ASSETS | 18,710,604 | 20,268,670 |
CAPITAL AND RESERVES |
Called up share capital | 19 | 20,000,000 | 20,000,000 |
Share premium | 20 | 6,999,990 | 6,999,990 |
Capital redemption reserve | 20 | 64,806 | 64,806 |
Merger reserve | 20 | (19,964,804 | ) | (19,964,804 | ) |
Retained earnings | 20 | 11,707,210 | 13,261,819 |
SHAREHOLDERS' FUNDS | 18,807,202 | 20,361,811 |
NON-CONTROLLING INTERESTS | (96,598 | ) | (93,141 | ) |
TOTAL EQUITY | 18,710,604 | 20,268,670 |
The financial statements were approved by the Board of Directors and authorised for issue on 24 September 2024 and were signed on its behalf by: |
J D Levine - Director |
EVOGO GROUP LTD (REGISTERED NUMBER: 11388495) |
COMPANY BALANCE SHEET |
31 December 2023 |
31.12.23 | 31.12.22 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 8 |
Tangible assets | 9 |
Investments | 10 |
CURRENT ASSETS |
Debtors | 12 |
Cash in hand |
CREDITORS |
Amounts falling due within one year | 13 |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CAPITAL AND RESERVES |
Called up share capital | 19 |
Retained earnings | ( |
) |
SHAREHOLDERS' FUNDS |
Company's loss for the financial year | (124,526 | ) | - |
The financial statements were approved by the Board of Directors and authorised for issue on |
EVOGO GROUP LTD (REGISTERED NUMBER: 11388495) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
for the year ended 31 December 2023 |
Called up | Capital |
share | Retained | Share | redemption |
capital | earnings | premium | reserve |
£ | £ | £ | £ |
Balance at 1 January 2022 | 20,000,000 | 13,018,346 | 6,999,990 | 64,806 |
Changes in equity |
Total comprehensive income | - | 243,473 | - | - |
Balance at 31 December 2022 | 20,000,000 | 13,261,819 | 6,999,990 | 64,806 |
Changes in equity |
Total comprehensive income | - | (1,554,609 | ) | - | - |
Balance at 31 December 2023 | 20,000,000 | 11,707,210 | 6,999,990 | 64,806 |
Merger | Non-controlling | Total |
reserve | Total | interests | equity |
£ | £ | £ | £ |
Balance at 1 January 2022 | (19,964,804 | ) | 20,118,338 | - | 20,118,338 |
Changes in equity |
Total comprehensive income | - | 243,473 | (93,141 | ) | 150,332 |
Balance at 31 December 2022 | (19,964,804 | ) | 20,361,811 | (93,141 | ) | 20,268,670 |
Changes in equity |
Total comprehensive income | - | (1,554,609 | ) | (3,457 | ) | (1,558,066 | ) |
Balance at 31 December 2023 | (19,964,804 | ) | 18,807,202 | (96,598 | ) | 18,710,604 |
EVOGO GROUP LTD (REGISTERED NUMBER: 11388495) |
COMPANY 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 |
Changes in equity |
Balance at 31 December 2022 |
Changes in equity |
Total comprehensive income | - | ( |
) | ( |
) |
Balance at 31 December 2023 | ( |
) |
EVOGO GROUP LTD (REGISTERED NUMBER: 11388495) |
CONSOLIDATED CASH FLOW STATEMENT |
for the year ended 31 December 2023 |
31.12.23 | 31.12.22 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 4,584,888 | 7,501,616 |
Interest paid | (455,803 | ) | (206,620 | ) |
Interest element of hire purchase payments paid |
(1,676,236 |
) |
(1,046,840 |
) |
Tax paid | (481,821 | ) | (397,465 | ) |
Net cash from operating activities | 1,971,028 | 5,850,691 |
Cash flows from investing activities |
Purchase of intangible fixed assets | - | (2,476,434 | ) |
Purchase of tangible fixed assets | (23,389,496 | ) | (33,926,734 | ) |
Purchase of fixed asset investments | (100,000 | ) | - |
Sale of intangible fixed assets | 1,006 | - |
Sale of tangible fixed assets | 21,148,328 | 19,415,404 |
Interest received | 160,770 | 65,933 |
Net cash from investing activities | (2,179,392 | ) | (16,921,831 | ) |
Cash flows from financing activities |
New loans in year | - | 8,983,779 |
Amounts owed to associates | - | 3,496,575 |
Capital repayments in year | (9,954,577 | ) | - |
Amount introduced by directors | 9,235,362 | 160,118 |
Amount withdrawn by directors | - | (108,750 | ) |
Net cash from financing activities | (719,215 | ) | 12,531,722 |
(Decrease)/increase in cash and cash equivalents | (927,579 | ) | 1,460,582 |
Cash and cash equivalents at beginning of year |
2 |
2,891,844 |
1,431,262 |
Cash and cash equivalents at end of year | 2 | 1,964,265 | 2,891,844 |
EVOGO GROUP LTD (REGISTERED NUMBER: 11388495) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
for the year ended 31 December 2023 |
1. | RECONCILIATION OF (LOSS)/PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
31.12.23 | 31.12.22 |
£ | £ |
(Loss)/profit before taxation | (1,308,002 | ) | 798,272 |
Depreciation charges | 5,830,440 | 5,402,697 |
(Profit)/loss on disposal of fixed assets | (272,950 | ) | 13,926 |
Share of (profit)/loss in joint ventures | (3,457 | ) | (93,141 | ) |
Government grants | (1,663 | ) | - |
Finance costs | 2,132,039 | 1,253,460 |
Finance income | (160,770 | ) | (65,933 | ) |
6,215,637 | 7,309,281 |
(Increase)/decrease in stocks | (625,587 | ) | 277,723 |
Increase in trade and other debtors | (1,319,461 | ) | (1,082,132 | ) |
Increase in trade and other creditors | 314,299 | 996,744 |
Cash generated from operations | 4,584,888 | 7,501,616 |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31 December 2023 |
31.12.23 | 1.1.23 |
£ | £ |
Cash and cash equivalents | 1,964,265 | 2,891,844 |
Year ended 31 December 2022 |
31.12.22 | 1.1.22 |
£ | £ |
Cash and cash equivalents | 2,891,844 | 1,431,262 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
At 1.1.23 | Cash flow | At 31.12.23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 2,891,844 | (927,579 | ) | 1,964,265 |
2,891,844 | (927,579 | ) | 1,964,265 |
Debt |
Finance leases | (23,337,134 | ) | 5,828,315 | (17,508,819 | ) |
Debts falling due within 1 year | (4,299,081 | ) | 1,312,994 | (2,986,087 | ) |
Debts falling due after 1 year | (2,813,268 | ) | 2,813,268 | - |
(30,449,483 | ) | 9,954,577 | (20,494,906 | ) |
Total | (27,557,639 | ) | 9,026,998 | (18,530,641 | ) |
EVOGO GROUP LTD (REGISTERED NUMBER: 11388495) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
for the year ended 31 December 2023 |
1. | STATUTORY INFORMATION |
Evogo Group Ltd is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006. |
The financial statements are presented in Pound Sterling, which is the currency of the primary economic environment in which the Group operates. Amounts are presented to the nearest Pound, unless otherwise stated. |
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgement in applying the Group's accounting policies. |
The following principal accounting policies have been applied: |
Basis of consolidation |
The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full. |
The consolidated financial statements incorporate the results of business combinations using the purchase method, except as noted in accounting policy . In the Statement of Financial Position, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Comprehensive Income from the date on which control is obtained. They are deconsolidated from the date control ceases. |
EVOGO GROUP LTD (REGISTERED NUMBER: 11388495) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 December 2023 |
2. | ACCOUNTING POLICIES - continued |
Turnover |
Turnover is recognised to the extent that it is probable that the economic benefits will flow to the Group and the turnover can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before turnover is recognised: |
Commissions |
Turnover includes commissions received from third party lenders for brokering the sale of motor finance hire purchase agreements. These are credited to the profit and loss account when the brokerage service has been provided, after taking into account expected refunds payable on customer early settlements and defaulted agreements and are stated net of value added tax. |
Sale of goods |
Turnover from the sale of goods is recognised when all of the following conditions are satisfied: |
- the Group has transferred the significant risks and rewards of ownership to the buyer; |
- the Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold; |
- the amount of turnover can be measured reliably; |
- it is probable that the Group will receive the consideration due under the transaction; and |
- the costs incurred or to be incurred in respect of the transaction can be measured reliably. |
Rendering of services |
Turnover from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied: |
- the amount of turnover can be measured reliably; |
- it is probable that the Group will receive the consideration due under the contract; |
- the stage of completion of the contract at the end of the reporting period can be measured reliably; and |
- the costs incurred and the costs to complete the contract can be measured reliably. |
Goodwill |
Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer's interest in the fair value of the Group's share of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight line basis to the Consolidated Statement of Comprehensive Income over its useful economic life of 10 years. |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
EVOGO GROUP LTD (REGISTERED NUMBER: 11388495) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 December 2023 |
2. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated 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. |
Impairment of fixed assets |
An assessment is made at each reporting date of whether there are indications that a fixed asset may be impaired or that an impairment loss previously recognised has fully or partially reversed. If such indications exist, the Group estimates the recoverable amount of the asset or, for goodwill, the recoverable amount of the cash-generating unit to which the goodwill belongs. |
Shortfalls between the carrying value affixed assets and their recoverable amounts, being the higher of fair value less costs to sell and value-in-use, are recognised as impairment losses. Impairments are recognised in profit or loss. |
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Reversals of impairment losses are recognised in profit or loss. On reversal of an impairment loss, the depreciation or amortisation is adjusted to allocate the asset's revised carrying amount (less any residual value) over its remaining useful life. · |
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment. |
Investments in subsidiaries |
Investments in subsidiaries are measured at cost less accumulated impairment. |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
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 is recognised immediately in profit or loss. |
EVOGO GROUP LTD (REGISTERED NUMBER: 11388495) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 December 2023 |
2. | ACCOUNTING POLICIES - continued |
Financial instruments |
The Group only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares. |
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or financed at a rate of interest that is not a market rate or in the case of an out-right short-term loan not at market rate, the financial asset or liability is measured, initially, at the present value of the future cash flow discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost. |
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Consolidated Statement of Comprehensive Income. |
For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract. |
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Group would receive for the asset if it were to be sold at the reporting date. |
Financial assets and liabilities are offset and the net amount reported in the Balance Sheet when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. |
Classification of financial instruments |
The Group classifies financial instruments, or their component parts, on initial recognition as financial assets, |
financial liabilities or equity instruments according to the substance of the contractual arrangements entered into. |
An equity instrument is any contract that evidences a residual interest in the assets of the Group after deducting all of its liabilities. Equity instruments issued by the Group are recorded at the proceeds received, net of direct issue costs. |
Financial assets |
Financial assets are classified on initial recognition in the following categories: loans and receivables; held at fair value through profit and loss and available for sale. The classification depends upon the purpose for which the assets were acquired. |
Financial assets at fair value through the profit and loss include derivatives classified as held for trading. Derivatives, which can be a financial asset or financial liability are initially recognised at fair value and are subsequently re-measured at fair value. The method of recognising the gain or loss depends upon whether the derivative is designated as a hedging instrument and the nature of the hedge arrangement. The Group currently has no hedge arrangements and the gain or loss is recognised in profit or loss in administrative expenses. |
Financial liabilities |
Financial liabilities are classified on initial recognition as either other financial liabilities measured at amortised cost or at fair value through profit or loss. |
EVOGO GROUP LTD (REGISTERED NUMBER: 11388495) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 December 2023 |
2. | ACCOUNTING POLICIES - continued |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated 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 balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
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 group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
Merger accounting |
The company was incorporated on 30 May 2018 and on 24 January 2019 acquired the entire issued share capital of Evogo Limited (formerly Evolution Funding Limited). The acquisition was made via a share for share exchange, with no changes in the rights or ownership percentages of the equity holders of Evogo Limited. |
Consequently, the previously recognised book values of assets and liabilities of Evogo Limited have been retained and consolidated financial information for periods prior periods have been presented as if Evogo Group Limited had always been the parent of the group. |
In accordance with FRS 102 Section 18 (Business combinations and Goodwill) the assets and liabilities of the acquired group are retained at book value, not fair value, with adjustments made to achieve uniform accounting policies if required. Intangible assets are recognised only to the extent they were recognised by the acquired group, no goodwill is recognised on the acquisition of Evogo Limited. Any expenses of the combination are written off immediately to the income statement and comparative amounts, if applicable, are restated as if the combination had taken place at the beginning of the earliest accounting period presented. |
The result is that the merged group is treated as if they had been combined during the current and comparative periods. Merger accounting principles for this combination gave rise to a merger reserve in the balance sheet, being the difference between the nominal value of the new shares issued by Evogo Group Limited, the fair value of any other consideration given and the nominal value of the shares received in Evogo Limited. |
EVOGO GROUP LTD (REGISTERED NUMBER: 11388495) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 December 2023 |
2. | ACCOUNTING POLICIES - continued |
Provisions |
Provisions are recognised when the Group has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation; and the amount has been reliably estimated, see note 18. |
Operating Leases |
Leases in which a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases (net of any incentives received from the lessor) are charged to the income statement on a straight-line basis over the period of the lease. Lease incentives are recognised over the period of the lease. |
Share Capital |
Ordinary shares are classified as equity. Costs incurred in issuing equity are deducted from the equity instrument. |
Trade receivables |
Trade receivables represent the principal amounts outstanding from finance companies in respect of the financed element of sales to customers for motor vehicle and related products. Trade receivables are recognised net of any provision for impairment. |
Cash and cash equivalents |
Cash and cash equivalents include cash in hand and at bank and deposits held at call with banks. Where applicable, bank overdrafts are shown within borrowings in current liabilities. |
Finance costs |
Finance costs are charged to the Statement of Comprehensive Income over the term of the debt using the effective interest rate method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument. |
Borrowings |
Borrowings are recognised initially at fair value, net of transaction costs incurred. Borrowings are subsequently carried at amortised cost using the effective interest rate method. |
The effective interest rate method is a method of calculating the amortised cost and allocating the interest cost over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the financial instrument. |
Trade payables |
Trade payables 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 presented as non-current liabilities. Trade payables include stocking facilities. These are short term liabilities which are settled on the sale of a vehicle or a fixed maturity not greater than 180 days and as a result form part of the normal business operating cycle. |
Trade payables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method, unless the effect is immaterial. |
Trade payables, including stocking finance facilities; are, recognised initially at fair value and subsequently measured at amortised cost using the effective interest method, unless the effect is immaterial. |
3. | EMPLOYEES AND DIRECTORS |
31.12.23 | 31.12.22 |
£ | £ |
Wages and salaries | 3,595,745 | 2,998,017 |
Social security costs | 257,527 | 169,387 |
Other pension costs | 107,510 | 90,097 |
3,960,782 | 3,257,501 |
EVOGO GROUP LTD (REGISTERED NUMBER: 11388495) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 December 2023 |
3. | EMPLOYEES AND DIRECTORS - continued |
The average number of employees during the year was as follows: |
31.12.23 | 31.12.22 |
Employees |
The average number of employees by undertakings that were proportionately consolidated during the year was 148 (2022 - 128 ) . |
31.12.23 | 31.12.22 |
£ | £ |
Directors' remuneration | 203,430 | 157,084 |
Directors' pension contributions to money purchase schemes | 15,542 | 13,203 |
Information regarding the highest paid director for the year ended 31 December 2023 is as follows: |
31.12.23 |
£ |
Emoluments etc | 60,000 |
Pension contributions to money purchase schemes | 3,000 |
4. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
31.12.23 | 31.12.22 |
£ | £ |
Hire of plant and machinery | 63,700 | 33,578 |
Other operating leases | 6,311 | 6,240 |
Depreciation - owned assets | 1,241,461 | 1,239,256 |
Depreciation - assets on hire purchase contracts | 4,287,313 | 4,021,639 |
(Profit)/loss on disposal of fixed assets | (272,950 | ) | 13,926 |
Goodwill amortisation | 297,440 | 305,356 |
Auditors' remuneration | 15,000 | 15,000 |
5. | INTEREST PAYABLE AND SIMILAR EXPENSES |
31.12.23 | 31.12.22 |
£ | £ |
Bank loan interest | 153,909 | 103,036 |
Stocking loan interest | 149,402 | 101,574 |
Loan | 152,492 | 2,010 |
Hire purchase | 1,676,236 | 1,046,840 |
2,132,039 | 1,253,460 |
EVOGO GROUP LTD (REGISTERED NUMBER: 11388495) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 December 2023 |
6. | TAXATION |
Analysis of the tax charge |
The tax charge on the loss for the year was as follows: |
31.12.23 | 31.12.22 |
£ | £ |
Current tax: |
UK corporation tax | 134,052 | 516,623 |
Prior year corporation tax | 29,265 | 1,240 |
Total current tax | 163,317 | 517,863 |
Deferred tax | 83,290 | 36,936 |
Tax on (loss)/profit | 246,607 | 554,799 |
7. | INDIVIDUAL STATEMENT OF COMPREHENSIVE INCOME |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
8. | INTANGIBLE FIXED ASSETS |
Group |
Goodwill |
£ |
COST |
At 1 January 2023 | 2,947,173 |
Disposals | (1,258 | ) |
At 31 December 2023 | 2,945,915 |
AMORTISATION |
At 1 January 2023 | 526,267 |
Amortisation for year | 297,440 |
Eliminated on disposal | (252 | ) |
At 31 December 2023 | 823,455 |
NET BOOK VALUE |
At 31 December 2023 | 2,122,460 |
At 31 December 2022 | 2,420,906 |
EVOGO GROUP LTD (REGISTERED NUMBER: 11388495) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 December 2023 |
9. | TANGIBLE FIXED ASSETS |
Group |
Improvements |
Freehold | Short | to | Plant and |
property | leasehold | property | machinery |
£ | £ | £ | £ |
COST |
At 1 January 2023 | 6,937,684 | 1,157,588 | 15,185 | 4,099,890 |
Additions | 867,035 | 43,366 | - | 632,735 |
Disposals | (147,446 | ) | (2,465 | ) | - | (370,525 | ) |
At 31 December 2023 | 7,657,273 | 1,198,489 | 15,185 | 4,362,100 |
DEPRECIATION |
At 1 January 2023 | 313,016 | 74,279 | 1,599 | 1,767,124 |
Charge for year | 74,918 | 83,996 | 1,599 | 291,760 |
Eliminated on disposal | (4,792 | ) | (315 | ) | - | (197,210 | ) |
At 31 December 2023 | 383,142 | 157,960 | 3,198 | 1,861,674 |
NET BOOK VALUE |
At 31 December 2023 | 7,274,131 | 1,040,529 | 11,987 | 2,500,426 |
At 31 December 2022 | 6,624,668 | 1,083,309 | 13,586 | 2,332,766 |
Fixtures |
and | Motor | Computer |
fittings | vehicles | equipment | Totals |
£ | £ | £ | £ |
COST |
At 1 January 2023 | 2,411,544 | 29,462,463 | 125,842 | 44,210,196 |
Additions | 278,197 | 21,498,595 | 69,568 | 23,389,496 |
Disposals | (40,253 | ) | (24,913,835 | ) | (17,886 | ) | (25,492,410 | ) |
At 31 December 2023 | 2,649,488 | 26,047,223 | 177,524 | 42,107,282 |
DEPRECIATION |
At 1 January 2023 | 491,994 | 2,721,782 | 91,869 | 5,461,663 |
Charge for year | 290,766 | 4,746,378 | 39,357 | 5,528,774 |
Eliminated on disposal | (12,743 | ) | (4,396,142 | ) | (16,263 | ) | (4,627,465 | ) |
At 31 December 2023 | 770,017 | 3,072,018 | 114,963 | 6,362,972 |
NET BOOK VALUE |
At 31 December 2023 | 1,879,471 | 22,975,205 | 62,561 | 35,744,310 |
At 31 December 2022 | 1,919,550 | 26,740,681 | 33,973 | 38,748,533 |
EVOGO GROUP LTD (REGISTERED NUMBER: 11388495) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 December 2023 |
9. | TANGIBLE FIXED ASSETS - continued |
Group |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Plant and | Motor |
machinery | vehicles | Totals |
£ | £ | £ |
COST |
At 1 January 2023 | 635,597 | 22,307,693 | 22,943,290 |
Additions | - | 16,078,508 | 16,078,508 |
Disposals | - | (19,509,469 | ) | (19,509,469 | ) |
Transfer to ownership | (635,597 | ) | - | (635,597 | ) |
At 31 December 2023 | - | 18,876,732 | 18,876,732 |
DEPRECIATION |
At 1 January 2023 | 436,821 | 1,974,305 | 2,411,126 |
Charge for year | - | 4,287,313 | 4,287,313 |
Eliminated on disposal | - | (3,820,513 | ) | (3,820,513 | ) |
Transfer to ownership | (436,821 | ) | - | (436,821 | ) |
At 31 December 2023 | - | 2,441,105 | 2,441,105 |
NET BOOK VALUE |
At 31 December 2023 | - | 16,435,627 | 16,435,627 |
At 31 December 2022 | 198,776 | 20,333,388 | 20,532,164 |
10. | FIXED ASSET INVESTMENTS |
Group |
Shares in |
group |
undertakings |
£ |
COST |
Additions | 100,000 |
At 31 December 2023 | 100,000 |
NET BOOK VALUE |
At 31 December 2023 | 100,000 |
Company |
Shares in |
group | Other |
undertakings | investments | Totals |
£ | £ | £ |
COST |
At 1 January 2023 |
and 31 December 2023 | 21,642,068 |
NET BOOK VALUE |
At 31 December 2023 | 21,642,068 |
At 31 December 2022 | 21,642,068 |
EVOGO GROUP LTD (REGISTERED NUMBER: 11388495) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 December 2023 |
10. | FIXED ASSET INVESTMENTS - continued |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
Registered office: 201 Upwell Street, Sheffield, S4 8AL |
Nature of business: |
% |
Class of shares: | holding |
Registered office: 201 Upwell Street, Sheffield, S4 8AL |
Nature of business: |
% |
Class of shares: | holding |
Registered office: Unit 2 Redwood Court, Tytherington Business Park, Macclesfield, Cheshire, SK10 2XH |
Nature of business: |
% |
Class of shares: | holding |
Registered office: 201 Upwell Street, Sheffield, S4 8AL |
Nature of business: |
% |
Class of shares: | holding |
Registered office: 201 Upwell Street, Sheffield, S4 8AL |
Nature of business: |
% |
Class of shares: | holding |
Registered office: 201 Upwell Street, Sheffield, S4 8AL |
Nature of business: |
% |
Class of shares: | holding |
Registered office: 201 Upwell Street, Sheffield, S4 8AL |
Nature of business: |
% |
Class of shares: | holding |
Registered office: 201 Upwell Street, Sheffield, S4 8AL |
Nature of business: |
% |
Class of shares: | holding |
EVOGO GROUP LTD (REGISTERED NUMBER: 11388495) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 December 2023 |
10. | FIXED ASSET INVESTMENTS - continued |
Registered office: 201 Upwell Street, Sheffield, S4 8AL |
Nature of business: |
% |
Class of shares: | holding |
11. | STOCKS |
Group |
31.12.23 | 31.12.22 |
£ | £ |
Stocks | 5,663,721 | 5,038,134 |
The replacement cost of inventories is not considered to be materially different from the above values. |
12. | DEBTORS |
Group | Company |
31.12.23 | 31.12.22 | 31.12.23 | 31.12.22 |
£ | £ | £ | £ |
Amounts falling due within one year: |
Trade debtors | 654,248 | 821,890 |
Amounts owed by group undertakings | 55,099 | 25,436 |
Amounts owed by associates | 2,834,144 | 1,495,928 |
Other debtors | 304,960 | 325,121 |
Directors' current accounts | 26,142 | 6,479 | - | - |
Tax | 183,794 | 14,129 |
VAT | 469,394 | 715,833 |
Prepayments and accrued income | 434,155 | 218,635 |
4,961,936 | 3,623,451 |
Amounts falling due after more than one year: |
Other debtors | 552,937 | 382,633 |
Deferred tax | 507,397 | 507,397 |
1,060,334 | 890,030 |
Aggregate amounts | 6,022,270 | 4,513,481 |
EVOGO GROUP LTD (REGISTERED NUMBER: 11388495) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 December 2023 |
13. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
31.12.23 | 31.12.22 | 31.12.23 | 31.12.22 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 15) | - | 228,111 |
Other loans (see note 15) | 2,986,087 | 4,070,970 |
Hire purchase contracts (see note 16) | 5,970,654 | 5,245,981 |
Trade creditors | 1,672,742 | 1,087,552 |
Amounts owed to group undertakings | - | - |
Amounts owed to associates | 220,282 | 103,882 | - | - |
Tax | - | 148,839 |
Social security and other taxes | 75,320 | 66,441 |
Other creditors | 127,977 | 134,350 |
Vehicle servicing provision | 241,813 | 274,603 | - | - |
Directors' current accounts | 9,313,288 | 45,267 | 9,249,376 | - |
Accruals and deferred income | 498,651 | 855,658 |
Accrued expenses | - | - |
21,106,814 | 12,261,654 |
14. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group |
31.12.23 | 31.12.22 |
£ | £ |
Bank loans (see note 15) | - | 2,813,268 |
Hire purchase contracts (see note 16) | 11,538,165 | 18,091,153 |
11,538,165 | 20,904,421 |
15. | LOANS |
An analysis of the maturity of loans is given below: |
Group |
31.12.23 | 31.12.22 |
£ | £ |
Amounts falling due within one year or on | demand: |
Bank loans | - | 228,111 |
Vehicle stocking loan | 2,986,087 | 4,070,970 |
2,986,087 | 4,299,081 |
Amounts falling due between one and two | years: |
Bank loans - 1-2 years | - | 234,882 |
Amounts falling due between two and five | years: |
Bank loans - 2-5 years | - | 2,578,386 |
EVOGO GROUP LTD (REGISTERED NUMBER: 11388495) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 December 2023 |
16. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Hire purchase contracts |
31.12.23 | 31.12.22 |
£ | £ |
Gross obligations repayable: |
Within one year | 6,336,233 | 5,663,054 |
Between one and five years | 12,736,046 | 19,422,358 |
19,072,279 | 25,085,412 |
Finance charges repayable: |
Within one year | 365,579 | 417,073 |
Between one and five years | 1,197,881 | 1,331,205 |
1,563,460 | 1,748,278 |
Net obligations repayable: |
Within one year | 5,970,654 | 5,245,981 |
Between one and five years | 11,538,165 | 18,091,153 |
17,508,819 | 23,337,134 |
Group |
Non-cancellable operating | leases |
31.12.23 | 31.12.22 |
£ | £ |
Within one year | 16,356 | 65,425 |
Between one and five years | - | 16,356 |
16,356 | 81,781 |
17. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group |
31.12.23 | 31.12.22 |
£ | £ |
Bank loans | - | 3,041,379 |
Vehicle stocking loan | 2,986,087 | 4,070,970 |
Hire purchase contracts | 17,508,819 | 23,337,134 |
20,494,906 | 30,449,483 |
Hire purchase and stocking loans are secured against the individual vehicles in which amounts are advanced against. |
Bank loans are secured against the property located at 201 Upwell Street, Sheffield, S4 8AL. |
EVOGO GROUP LTD (REGISTERED NUMBER: 11388495) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 December 2023 |
18. | PROVISIONS FOR LIABILITIES |
Group |
31.12.23 | 31.12.22 |
£ | £ |
Deferred tax | 261,443 | 178,153 |
Group |
Deferred |
tax |
£ |
Balance at 1 January 2023 | 178,153 |
Charge to Statement of Comprehensive Income during year | 83,290 |
Balance at 31 December 2023 | 261,443 |
19. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 31.12.23 | 31.12.22 |
value: | £ | £ |
Ordinary | £1 | 20,000,000 | 20,000,000 |
20. | RESERVES |
Group |
Capital |
Retained | Share | redemption | Merger |
earnings | premium | reserve | reserve | Totals |
£ | £ | £ | £ | £ |
At 1 January 2023 | 13,261,819 | 6,999,990 | 64,806 | (19,964,804 | ) | 361,811 |
Deficit for the year | (1,554,609 | ) | (1,554,609 | ) |
At 31 December 2023 | 11,707,210 | 6,999,990 | 64,806 | (19,964,804 | ) | (1,192,798 | ) |
21. | ULTIMATE CONTROLLING PARTY |
The controlling party is J D Levine. |
22. | AUDIT EXEMPTION FOR SUBSIDIARY UNDERTAKINGS |
For the year ended 31 December 2023, the group has taken advantage of the exemption offered in sections 479A-479C of the Companies Act 2006 and its subsidiary undertakings have not been subject to an individual audit. Evogo Group Ltd has given a statutory guarantee to each of these subsidiary undertakings guaranteeing their liabilities, a copy of which will be filed at Companies House. |
The companies which have taken this exemption are as follows; |
Name Company number |
Alton Fork Truck Services Limited 04711997 |
The Hillsborough Club Ltd 08237059 |
Nexus Dry Hire Limited 09590906 |
Caistor Lakes Limited 09352450 |
JLCS1 Ltd 12857601 |
Copa Cafe Ltd 13249814 |
Extra Time Sports Bar Ltd 13248468 |
JLTS1 Ltd 14119999 |