MOTOR DESIGN LIMITED
Company registration number 03840137 (England and Wales)
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
PAGES FOR FILING WITH REGISTRAR
MOTOR DESIGN LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 8
MOTOR DESIGN LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
4
118,222
202,180
Investments
5
32,498
118,222
234,678
Current assets
Stocks
-
27,043
Debtors
6
29,783,846
3,731,775
Cash at bank and in hand
2,762,976
1,593,253
32,546,822
5,352,071
Creditors: amounts falling due within one year
7
(7,096,247)
(928,459)
Net current assets
25,450,575
4,423,612
Net assets
25,568,797
4,658,290
Capital and reserves
Called up share capital
9
118
118
Share premium account
75,900
75,900
Equity reserve
2,849,725
2,405,673
Profit and loss reserves
22,643,054
2,176,599
Total equity
25,568,797
4,658,290
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
The financial statements were approved by the board of directors and authorised for issue on ......................... and are signed on its behalf by:
2024-09-24
..............................................
Mr R A Belcher
Director
Company registration number 03840137 (England and Wales)
MOTOR DESIGN LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
1
Accounting policies
Company information
Motor Design Limited is a private company limited by shares incorporated in England and Wales. The registered office is 4th Floor, The Anchorage, 34 Bridge Street, Reading, Berkshire, RG1 2LU.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
The financial statements include comparatives for the period ended December 2022. These cover the accounting transactions between 1st May 2022 and 31st December 2022.
1.2
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.
1.3
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives.
Change in estimate
During the prior year the depreciation methods of tangible fixed assets were re-evaluated to more accurately reflect the diminution in the value of the assets. The following changes have been made:
Fixtures, fittings and equipment from 15% Reducing Balance basis to 33% Reducing Balance.
Computer equipment from 15% Reducing Balance basis to 33% Reducing Balance.
The new depreciation bases are as follows:
Leasehold improvements
Straight line over period of lease
Fixtures, fittings & equipment
33% Reducing Balance
Computer equipment
33% Reducing Balance
Motor vehicles
25% Reducing Balance
MOTOR DESIGN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 3 -
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.4
Fixed asset investments
All investments are measured at cost.
The company has taken advantage of the exemption under section 399 of the Companies Act 2006 not to prepare consolidated accounts, on the basis that the group of which this is the parent qualifies as a small group. The financial statements present information about the company as an individual entity and not about its group.
1.5
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
1.6
Stocks
Stocks and work in progress are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.7
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.8
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally 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.
1.9
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.10
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
MOTOR DESIGN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 4 -
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
1.11
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense.
1.12
Retirement benefits
The company operates a defined contribution scheme for the benefit of its employees. Contributions payable are charged to the profit and loss account in the year they are payable.
1.13
Share-based payments
Equity-settled share-based payments are measured at fair value at the date of grant by reference to the fair value of the equity instruments granted using the Black-Scholes pricing model. The fair value determined at the grant date is expensed on a straight-line basis over the vesting period, based on the estimate of shares that will eventually vest. The company makes payments to the ultimate parent company which represent the costs of the option grants and exercises. These costs are deducted from the provision created by the fair value calculation above.
When the terms and conditions of equity-settled share-based payments at the time they were granted are subsequently modified, the fair value of the share-based payment under the original terms and conditions and under the modified terms and conditions are both determined at the date of the modification. Any excess of the modified fair value over the original fair value is recognised over the remaining vesting period in addition to the grant date fair value of the original share-based payment. The share-based payment expense is not adjusted if the modified fair value is less than the original fair value.
Cancellations or settlements (including those resulting from employee redundancies) are treated as an acceleration of vesting and the amount that would have been recognised over the remaining vesting period is recognised immediately.
Restricted Stock Units
The Company accounts for stock-based compensation in accordance with share-based payment accounting guidance. The guidance requires an entity to measure the cost of employee services received in exchange for and award of equity instruments based on the grant-date fair value of the award. The cost is recognised over the period during which an employee is required to provide service in exchange for the award, typically the vesting period.
1.14
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
MOTOR DESIGN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 5 -
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Estimates have been identified in the forms of accruals, prepayments and depreciation. These are not classed as significant.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
30
31
4
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 1 January 2023
52,347
281,856
334,203
Additions
11,568
31,513
43,081
Disposals
(162,609)
(162,609)
At 31 December 2023
63,915
150,760
214,675
Depreciation and impairment
At 1 January 2023
27,300
104,723
132,023
Depreciation charged in the year
5,718
61,028
66,746
Eliminated in respect of disposals
(102,316)
(102,316)
At 31 December 2023
33,018
63,435
96,453
Carrying amount
At 31 December 2023
30,897
87,325
118,222
At 31 December 2022
25,047
177,133
202,180
MOTOR DESIGN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 6 -
5
Fixed asset investments
2023
2022
£
£
Shares in group undertakings and participating interests
32,498
Movements in fixed asset investments
Shares in subsidiaries
£
Cost or valuation
At 1 January 2023
32,498
Disposals
(32,498)
At 31 December 2023
-
Carrying amount
At 31 December 2023
-
At 31 December 2022
32,498
6
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
26,802
Other debtors
29,783,846
3,704,973
29,783,846
3,731,775
7
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
13,424
45,709
Taxation and social security
6,793,202
670,238
Other creditors
289,621
212,512
7,096,247
928,459
MOTOR DESIGN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
8
Share-based payment transactions
Restricted Share Units (RSUs)
During the period the company granted 783 RSUs at a weighted average price of $310.37. These were all outstanding at the end of the period.
2023
Weighted average
Number of RSUs vesting price (US$)
Granted during the year 783 310.37
_________ __________
Outstanding at the end of the year 18,770 260.07
Liabilities and expenses
During the year, the company recognised total share-based payment expenses of £2,418,643 (2022 - £2,405,673) which related to equity settled share based payment transactions.
9
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary Class A Shares of 1p each
5,000
5,000
50
50
Ordinary Class B Shares of 1p each
5,000
5,000
50
50
Ordinary Class C Shares of 1p each
589
589
6
6
Ordinary Class D Shares of 1p each
589
589
6
6
Ordinary Class E Shares of 1p each
589
589
6
6
Ordinary Class Z Shares of 1p each
12
12
-
-
11,779
11,779
118
118
All share classes shall have attached to them full voting rights and capital distribution (including on winding up) rights; they shall have the right to a dividend as declared from time to time for that class of share but so that all classes of share shall not rank pari passu for dividend entitlement purposes.
10
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
Senior Statutory Auditor:
Andrew Young FCA
Statutory Auditor:
Dyke Yaxley Limited
Date of audit report:
Date: .............................................
2024-09-24
MOTOR DESIGN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
11
Operating lease commitments
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2023
2022
£
£
135,000
12
Related party transactions
Transactions with fellow group undertakings
The company has taken advantage of the exemptions under FRS102 1A from disclosing transactions with related parties as there were no material transactions outside the normal course of business during the year.
13
Parent company
The immediate parent company is Grove Acquisition Sub Limited a UK registered company. The ultimate parent company and ultimate controlling party is ANSYS, Inc, of Southpointe, 2600 Ansys Drive, Canonsburg, PA 15317, USA, a company incorporated in the United States of America. This is the largest and smallest group of which the company is a member and for which group financial statements are drawn up and their registered offices are listed above. Copies of the group financial statements are available from www.ansys.com.