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REGISTERED NUMBER: 08231834 (England and Wales)


















GROUP STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

AUDITED

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

FOR

2 MOTO LIMITED

2 MOTO LIMITED (REGISTERED NUMBER: 08231834)






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 4

Report of the Independent Auditors 6

Consolidated Profit and loss account 10

Consolidated Other 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


2 MOTO LIMITED

COMPANY INFORMATION
for the Year Ended 31 December 2023







DIRECTORS: L J Mason
Mrs E Mason



REGISTERED OFFICE: White Bear Yard
Park Road
Adlington
Chorley
Lancashire
PR7 4HZ



REGISTERED NUMBER: 08231834 (England and Wales)



AUDITORS: Fairhurst
Statutory Auditor
Chartered Accountants
Douglas Bank House
Wigan Lane
Wigan
Lancashire
WN1 2TB



BANKERS: Yorkshire Bank plc
3 Orchard Street
Preston
PR1 2EN

2 MOTO LIMITED (REGISTERED NUMBER: 08231834)

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.

REVIEW OF BUSINESS
The 2 Moto Group has recorded sales in excess of £85million and operating profits of £5million for the year 2023, which is pleasing.

In 2021/22 the financial position of the group was greatly increased due to the public being able to realign their spending priorities & leisure activities, which ultimately led to a significant increase in our profitability. Upon reflection from 2021/22 our profit and growth has returned to its normal pre-Covid levels, as profits remain healthy but not to the extent of the extraordinary levels of the previous two years.

We are still experiencing pressures in utility and transport costs that have affected everyone, which has also had an impact on people's priority of spending.

The 2 Moto Group are able to offer a range of new and used motorcycles from all the leading manufacturers and offer a wide range of services from finance, MOT and servicing, parts and accessories, along with delivery and collection options.

We continue to offer our discerning customers value for money and customer satisfaction & hopefully keep a strong position within our marketplace & continue to improve our website thus enabling us to give our potential customers a competitive price and strive to give a positive & informative overall sales experience

We will always be fully committed to providing our customers with the best and ultimate motorcycling experience. We are appreciative & grateful for our loyal customers support and we hope to keep our standards high to give our customers the service they deserve.

We also continue to have good working relationships with our suppliers & we are adding to the number of make & models we sell, to give the public a more varied choice that may also help to accommodate their budget at a time when household costs continue to rise.

We will endeavour to be fully committed to our customers and their needs and look forward to continuing our success moving into 2024 & beyond.


Key Performance Indicators
KPI's include sales, margins, wages and overheads and cash flow which are monitored by senior management by retail outlet and also at the warehouse and head office.

2023 2022
£'000 £'000

Turnover 85,650 100,075
Gross profit 16,634 19,696
Gross margin (%) 19.4% 19.7%
Operating profit 5,025 8,472
EBITDA 5,364 8,727
Net assets 38,670 35,016

Senior management also monitor performance by reference to certain non financial KPI's, including customer, supplier and employee satisfaction, supply lead times and technology advancement, both internally and externally.


2 MOTO LIMITED (REGISTERED NUMBER: 08231834)

GROUP STRATEGIC REPORT
for the Year Ended 31 December 2023

PRINCIPAL RISKS AND UNCERTAINTIES
The principal financial risks and uncertainties associated with the group and company's ability to monitor and manage:

Cashflow
The group has certain transactions in foreign currencies but is not exposed to any material risks relating to exchange fluctuations. The group has a shared bank facility with fellow subsidiary companies operating within the agreed facility. The group's exposure to interest rate movements is not considered material and hence it is not believed to be necessary to hedge against rates.

Credit Risk
The group's principal financial asset is in stock. The credit risk is limited by an exposure to a number of major customers on whom either credit reports are obtained or whose annual accounts are regularly reviewed. Supplier terms are reviewed regularly, so as to take advantage of price and exchange rates, where appropriate.

Liquidity Risk
The cash facilities available to the group and company have been compared to their likely credit requirements over the next 12 months, from the date of signing these financial statements and are deemed to be adequate.

Price Risk
The group is exposed to a price risk arising on its bike purchases; we constantly monitor the markets, both at home and abroad, to ensure our buying and selling price structures are well managed and competitive.

Other risks including supply and stock holding constraints, commercial and contractual, are managed internally by holding regular senior managers meetings and also meetings with key suppliers.

HEALTH, SAFETY AND ENVIRONMENTAL ISSUES
The group and company is committed to outstanding performance in health, safety and environmental matters through a policy of training, communication and co-operation applied consistently throughout all operations.

SECTION 172(1) STATEMENT
The directors consider that they have acted in the way they consider, in good faith, would be most likely to promote the success of the group and company for the benefit of its members as a whole (having regard to the stakeholders and the matters set out in s172(1)(a-f) of the Companies Act 2006) in the decisions taken in the year ended 31 December 2023.

Customer and supplier engagement and satisfaction is at the heart of everything we do and any decision made by the directors are made with full consideration of the impact on the group's customers and suppliers.

The group has a small number of key supplier partners with which directors and senior management maintain close relationships on an ongoing basis through regular dialogue, formal meetings and conferences.

The directors seek to promote a culture of environmental sustainability within the business which primarily focuses on an energy efficient approach to the design and management of our retail outlets and head office/warehouse. This includes fitting out our retail outlets and head office/warehouse with mechanical and electrical systems that comply with government energy saving schemes, water-saving bathroom facilities, installing LED energy saving lighting and using energy-efficient equipment.

ON BEHALF OF THE BOARD:





L J Mason - Director


25 September 2024

2 MOTO LIMITED (REGISTERED NUMBER: 08231834)

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 wholesale and retail distribution of motorcycles and accessories. The principal activity of the company in the period under review was that of a holding company.

DIVIDENDS
The total distribution of dividends for the year ended 31 December 2023 will be £ 1,000 .

DIRECTORS
L J Mason has 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:

K J Mason - resigned 31 May 2023
Mrs E Mason - appointed 12 May 2023

BUSINESS RELATIONSHIPS
Business relationships are discussed within the Strategic Report on page 3, in accordance with the provisions of s172(1)(c) of the Companies Act 2006.

STREAMLINED ENERGY AND CARBON REPORTING
As a large company and group, under the Companies (Directors' Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018, we are required to prepare a Streamlined Energy Carbon Reporting Report. This report contains details of the Group's annual energy usage (in kWh) and the relevant greenhouse gas emissions (in tonnes of carbon dioxide equivalent (CO2e)).





2023 Energy
Usage in kWh
2023Greenhouse
Gas Emissions in
CO2e
2022 Energy
Usage in
kWh
2022Greenhouse
Gas Emissions in
CO2e

Gas 1,192,943 253,298 1,016,713 215,879
Electricity 843,309 179,060 881,715 187,215
Transport 2,032,453 514,961 2,106,114 533,625
Total 4,068,705 947,319 4,004,542 936,719

The conversion factors used in the above table are taken from the UK Government GHG Conversion Factors for Company Reporting. In the year the group used 4,068,705 kWh of energy for its warehouse, retail outlets and transport. This equates to 947,319 kg of CO2e emissions across the following subsidiaries: Moto GB Limited, Chorley Yamaha Centre Limited, Motorcycle Centre Orrell Limited and KJM Superbikes Limited.

The total turnover for the group for the year is £85,649,774 (2022: £100,074,912), which when compared to the CO2e emissions of the year, gives us an intensity ratio of 11.06 Kg (2022: 9.36 Kg) of CO2e emissions per £1,000 of turnover.


2 MOTO LIMITED (REGISTERED NUMBER: 08231834)

REPORT OF THE DIRECTORS
for the Year Ended 31 December 2023

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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and 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;
- state whether applicable accounting standards have been followed, subject to any material departures disclosed and
explained in the financial statements;
- 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 or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

ON BEHALF OF THE BOARD:





L J Mason - Director


25 September 2024

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
2 MOTO LIMITED

Opinion
We have audited the financial statements of 2 Moto Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the Consolidated Profit and loss account, Consolidated Other 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 profit for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the 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
2 MOTO LIMITED


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 five, 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.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
2 MOTO LIMITED


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 identified the laws and regulations applicable to the company and group through discussions with directors and other management, focusing on those that had a direct effect on the financial statements or that had a fundamental effect on it's operations. Key laws and regulations that we identified included the UK Companies Act, tax legislation, employment legislation and Health and Safety regulations.

- we enquired of the directors and reviewed correspondence with HMRC for evidence of non-compliance with laws and regulations. We also reviewed controls the directors have in place to ensure compliance.

We assessed the susceptibility of the company's and group's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and

- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

- performed analytical procedures to identify any unusual or unexpected relationships;

- tested journal entries to identify unusual transactions;

- assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias.

- we reviewed financial statements disclosures and tested to supporting documentation to assess compliance with relevant laws and regulations discussed above;

- we enquired of the directors about actual and potential litigation and claims.

Due to inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing fraud or non-compliance with laws and regulations and cannot be expected to detect all fraud and non-compliance with laws and regulations.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
2 MOTO LIMITED


Use of our report
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.




John B S Fairhurst BA(Hons) FCA (Senior Statutory Auditor)
for and on behalf of Fairhurst
Statutory Auditor
Chartered Accountants
Douglas Bank House
Wigan Lane
Wigan
Lancashire
WN1 2TB

25 September 2024

2 MOTO LIMITED (REGISTERED NUMBER: 08231834)

CONSOLIDATED
PROFIT AND LOSS ACCOUNT
for the Year Ended 31 December 2023

2023 2022
Notes £    £   

TURNOVER 85,649,774 100,074,912

Cost of sales 69,015,904 80,378,794
GROSS PROFIT 16,633,870 19,696,118

Administrative expenses 11,710,460 11,252,876
4,923,410 8,443,242

Other operating income 101,138 28,922
OPERATING PROFIT 5,024,548 8,472,164


Interest payable and similar expenses 4 154,481 215,667
PROFIT BEFORE TAXATION 5 4,870,067 8,256,497

Tax on profit 6 1,214,711 1,587,574
PROFIT FOR THE FINANCIAL YEAR 3,655,356 6,668,923
Profit attributable to:
Owners of the parent 3,655,356 6,668,923

2 MOTO LIMITED (REGISTERED NUMBER: 08231834)

CONSOLIDATED
OTHER COMPREHENSIVE INCOME
for the Year Ended 31 December 2023

2023 2022
Notes £    £   

PROFIT FOR THE YEAR 3,655,356 6,668,923


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

3,655,356

6,668,923

Total comprehensive income attributable to:
Owners of the parent 3,655,356 6,668,923

2 MOTO LIMITED (REGISTERED NUMBER: 08231834)

CONSOLIDATED BALANCE SHEET
31 December 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 9 322,678 484,017
Tangible assets 10 1,330,158 1,301,689
Investments 11 - -
Investment property 12 400,000 400,000
2,052,836 2,185,706

CURRENT ASSETS
Stocks 13 40,518,715 35,955,976
Debtors 14 9,137,022 16,394,341
Cash at bank and in hand 205,308 22,798
49,861,045 52,373,115
CREDITORS
Amounts falling due within one year 15 13,187,181 19,500,335
NET CURRENT ASSETS 36,673,864 32,872,780
TOTAL ASSETS LESS CURRENT
LIABILITIES

38,726,700

35,058,486

PROVISIONS FOR LIABILITIES 18 56,369 42,511
NET ASSETS 38,670,331 35,015,975

CAPITAL AND RESERVES
Called up share capital 19 1,000 1,000
Share premium 20 2,359,002 2,359,002
Non distributable reserves 20 309,266 309,266
Retained earnings 20 36,001,063 32,346,707
SHAREHOLDERS' FUNDS 38,670,331 35,015,975

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





L J Mason - Director


2 MOTO LIMITED (REGISTERED NUMBER: 08231834)

COMPANY BALANCE SHEET
31 December 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 9 - -
Tangible assets 10 - -
Investments 11 5,360,000 5,360,000
Investment property 12 - -
5,360,000 5,360,000

CURRENT ASSETS
Debtors 14 605,629 559,608
Cash in hand 2 2
605,631 559,610
CREDITORS
Amounts falling due within one year 15 2,606,629 2,559,608
NET CURRENT LIABILITIES (2,000,998 ) (1,999,998 )
TOTAL ASSETS LESS CURRENT
LIABILITIES

3,359,002

3,360,002

CAPITAL AND RESERVES
Called up share capital 19 1,000 1,000
Share premium 20 2,359,002 2,359,002
Retained earnings 20 999,000 1,000,000
SHAREHOLDERS' FUNDS 3,359,002 3,360,002

Company's profit for the financial year - 1,004,000

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





L J Mason - Director


2 MOTO LIMITED (REGISTERED NUMBER: 08231834)

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the Year Ended 31 December 2023

Called up Non
share Retained Share distributable Total
capital earnings premium reserves equity
£    £    £    £    £   
Balance at 1 January 2022 1,000 25,681,784 2,359,002 309,266 28,351,052

Changes in equity
Dividends - (4,000 ) - - (4,000 )
Total comprehensive income - 6,668,923 - - 6,668,923
Balance at 31 December 2022 1,000 32,346,707 2,359,002 309,266 35,015,975

Changes in equity
Dividends - (1,000 ) - - (1,000 )
Total comprehensive income - 3,655,356 - - 3,655,356
Balance at 31 December 2023 1,000 36,001,063 2,359,002 309,266 38,670,331

2 MOTO LIMITED (REGISTERED NUMBER: 08231834)

COMPANY STATEMENT OF CHANGES IN EQUITY
for the Year Ended 31 December 2023

Called up
share Retained Share Total
capital earnings premium equity
£    £    £    £   
Balance at 1 January 2022 1,000 - 2,359,002 2,360,002

Changes in equity
Dividends - (4,000 ) - (4,000 )
Total comprehensive income - 1,004,000 - 1,004,000
Balance at 31 December 2022 1,000 1,000,000 2,359,002 3,360,002

Changes in equity
Dividends - (1,000 ) - (1,000 )
Balance at 31 December 2023 1,000 999,000 2,359,002 3,359,002

2 MOTO LIMITED (REGISTERED NUMBER: 08231834)

CONSOLIDATED CASH FLOW STATEMENT
for the Year Ended 31 December 2023

2023 2022
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 9,096,282 (6,274,067 )
Interest paid (154,481 ) (215,667 )
Tax paid (3,277,967 ) (552,439 )
Net cash from operating activities 5,663,834 (7,042,173 )

Cash flows from investing activities
Purchase of tangible fixed assets (228,904 ) (114,640 )
Sale of tangible fixed assets 33,450 -
Net cash from investing activities (195,454 ) (114,640 )

Cash flows from financing activities
Loan repayments in year - (159,372 )
Amount introduced by directors 1,427,460 376,873
Amount withdrawn by directors (323,592 ) (523,604 )
Movement in related party loans (337,349 ) 957,555
Equity dividends paid (1,000 ) (4,000 )
Net cash from financing activities 765,519 647,452

Increase/(decrease) in cash and cash equivalents 6,233,899 (6,509,361 )
Cash and cash equivalents at beginning of
year

2

(6,901,669

)

(392,308

)

Cash and cash equivalents at end of year 2 (667,770 ) (6,901,669 )

2 MOTO LIMITED (REGISTERED NUMBER: 08231834)

NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT
for the Year Ended 31 December 2023

1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS
2023 2022
£    £   
Profit before taxation 4,870,067 8,256,497
Depreciation charges 339,418 254,736
Profit on disposal of fixed assets (11,094 ) -
Finance costs 154,481 215,667
5,352,872 8,726,900
Increase in stocks (4,562,739 ) (12,838,509 )
Decrease/(increase) in trade and other debtors 7,594,668 (2,160,987 )
Increase/(decrease) in trade and other creditors 711,481 (1,471 )
Cash generated from operations 9,096,282 (6,274,067 )

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 205,308 22,798
Bank overdrafts (873,078 ) (6,924,467 )
(667,770 ) (6,901,669 )
Year ended 31 December 2022
31/12/22 1/1/22
£    £   
Cash and cash equivalents 22,798 656,619
Bank overdrafts (6,924,467 ) (1,048,927 )
(6,901,669 ) (392,308 )


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 22,798 182,510 205,308
Bank overdrafts (6,924,467 ) 6,051,389 (873,078 )
(6,901,669 ) 6,233,899 (667,770 )
Total (6,901,669 ) 6,233,899 (667,770 )

2 MOTO LIMITED (REGISTERED NUMBER: 08231834)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
for the Year Ended 31 December 2023

1. STATUTORY INFORMATION

2 Moto Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the General Information page.

2. ACCOUNTING POLICIES

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

Basis of consolidation
The consolidated financial statements include the results of 2 Moto Limited and its subsidiary undertakings drawn up to 31 December 2023.

The consolidated financial statements include the results of the activities described in the Report of the Directors. The company does not trade in its own right, but acts as a holding company for its trading subsidiaries KJM Trade Limited, Motorcycle Centre Orrell Limited, Moto GB Limited, Chorley Yahama Centre Limited (and its 100% subsidiary company, Walkdens of Chorley Limited), and KJM Superbikes Limited.

In the company's financial statements, investments in subsidiary undertakings are included at cost less any impairment.

Significant judgements and estimates
Preparation of the financial statements requires management to make significant judgements and estimates. The items in the financial statements where these judgements and estimates have been made include:

(a) Stock provision
Stock provisions have been estimated by senior management where the anticipated net realisable value of stock items is lower than cost. Net realisable value has been determined by considering the stock items current and expected sales value, overall stock quantity and sales volume.

(b) Useful economic lives
The useful economic lives of fixed assets are assessed on an annual basis based on the latest available information. Management believe that the useful economic lives being used currently are still appropriate.

Turnover
Turnover represents the fair value of income received from the sale of new and used motor bikes and accessories, for retail to the general public and wholesale to other companies, excluding discounts and value added tax.

Finance commission is received monthly based on the volume of bikes sold.

The group recognises revenue when the goods have been delivered and the title of goods has passed.

Intangible fixed assets
Intangible fixed assets are stated at cost less accumulated amortisation and any accumulated impairment losses.

Goodwill arising on an acquisition of a subsidiary undertaking is the difference between the fair value of the consideration paid and the fair value of the net assets and liabilities acquired. It is capitalised and amortised through the profit and loss account over the directors estimate of its useful economic life, which is ten years, less impairment.

2 MOTO LIMITED (REGISTERED NUMBER: 08231834)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
for the Year Ended 31 December 2023

2. ACCOUNTING POLICIES - continued

Tangible fixed assets
Tangible fixed assets are stated at cost less accumulated depreciation and any accumulated impairment losses.

Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life.

Freehold property- 2% on cost
Improvements to property- 20% on reducing balance and 10% on cost
Plant and machinery- 20% - 25% on cost and 20% - 25% reducing balance
Fixtures and fittings- 20% - 25% on reducing balance and 20% on cost
Motor vehicles- 20% - 25% on reducing balance and 20% on cost
Computer equipment- 10% - 25% on cost and 20% reducing balance

Impairment of assets
At each reporting date fixed assets are reviewed to determine whether there is any indication that those assets have suffered an impairment loss. If there is an indication of possible impairment, the recoverable amount of any affected asset is estimated and compared with its carrying amount. If the recoverable amount is lower, the carrying amount of the asset is reduced to its recoverable amount and an impairment loss is recognised immediately in the profit or loss.

If an impairment loss is subsequently reversed, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but not to exceed the amount that would have been determined had no impairment loss been recognised for the asset in prior periods. A reversal of an impairment loss is recognised immediately in the profit or loss.

Investment property
Investment property is initially recorded at cost then subsequently at fair value. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss.

Stocks
Stocks are stated at the lower of cost and selling price after any provision for obsolete and slow moving items.

Financial instruments
Short term financial assets, including trade debtors are measured at transaction price less impairment. Short term financial liabilities, including trade creditors are measured at the transaction price. Other loans and bank overdrafts are measured at the undiscounted amount due.

Financial assets and liabilities payable after one year are initially measured at fair value and are measured subsequently at amortised cost using the effective interest rate method.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Profit and loss account, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.


2 MOTO LIMITED (REGISTERED NUMBER: 08231834)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
for the Year Ended 31 December 2023

2. ACCOUNTING POLICIES - continued
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.

Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Leases
Rentals payable under operating leases are charged to the profit or loss on a straight-line basis over the lease term. The aggregate benefit of lease incentives are recognised as a reduction to the expense recognised over the lease term on a straight line basis.

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.

Government income
Government income comprises grants and subsidies provided as a direct result of the Covid-19 pandemic.

3. EMPLOYEES AND DIRECTORS
2023 2022
£    £   
Wages and salaries 6,701,219 6,631,936
Social security costs 619,804 629,468
Other pension costs 343,697 264,175
7,664,720 7,525,579

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

Sales and administration 228 223

2023 2022
£    £   
Directors' remuneration - -
Directors' pension contributions to money purchase schemes 80,000 -

2 MOTO LIMITED (REGISTERED NUMBER: 08231834)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
for the Year Ended 31 December 2023

4. INTEREST PAYABLE AND SIMILAR EXPENSES
2023 2022
£    £   
Bank interest 152,941 136,679
Interest on tax paid 1,540 78,988
154,481 215,667

5. PROFIT BEFORE TAXATION

The profit is stated after charging/(crediting):

2023 2022
£ £
Rentals under operating leases - buildings 671,377 527,134
Depreciation - owned assets 178,079 93,397
Goodwill amortisation 161,339 161,339
Auditors' remuneration 60,000 61,950
Government income - (6,288 )

6. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2023 2022
£    £   
Current tax:
UK corporation tax 1,224,874 1,637,815
(Over)/underprovision in prior year (24,021 ) (3,340 )
Total current tax 1,200,853 1,634,475

Deferred tax:
Deferred tax - current year 13,858 (56,250 )
Deferred tax - prior year - 9,349
Total deferred tax 13,858 (46,901 )

Tax on profit 1,214,711 1,587,574

2 MOTO LIMITED (REGISTERED NUMBER: 08231834)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
for the Year Ended 31 December 2023

6. TAXATION - continued

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

2023 2022
£    £   
Profit before tax 4,870,067 8,256,497
Profit multiplied by the standard rate of corporation tax in the UK of
23.520 % (2022 - 19 %)

1,145,440

1,568,734

Effects of:
Expenses not deductible for tax purposes 62,407 41,511
Adjustments to tax charge in respect of previous periods - (3,340 )
Fixed asset differences (3,109 ) (15,179 )
Adjustments in respect of prior periods (24,021 ) 9,348
Remeasurement of deferred tax for changes in tax rates (1,266 ) (13,500 )
Other tax adjustments, reliefs and transfers (38 ) -
Movement in deferred tax not recognised 35,251 -
Other movements 47 -
Total tax charge 1,214,711 1,587,574

7. INDIVIDUAL PROFIT AND LOSS ACCOUNT

As permitted by Section 408 of the Companies Act 2006, the Profit and loss account of the parent company is not presented as part of these financial statements.


8. DIVIDENDS
2023 2022
£    £   
Final 1,000 4,000

9. INTANGIBLE FIXED ASSETS

Group
Goodwill
£   
COST
At 1 January 2023
and 31 December 2023 1,926,436
AMORTISATION
At 1 January 2023 1,442,419
Amortisation for year 161,339
At 31 December 2023 1,603,758
NET BOOK VALUE
At 31 December 2023 322,678
At 31 December 2022 484,017

2 MOTO LIMITED (REGISTERED NUMBER: 08231834)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
for the Year Ended 31 December 2023

10. TANGIBLE FIXED ASSETS

Group
Improvements
Freehold Vehicles to Plant and
property on rental property machinery
£    £    £    £   
COST
At 1 January 2023 966,377 66,959 43,427 165,274
Additions - - - 95,251
Disposals - - - -
At 31 December 2023 966,377 66,959 43,427 260,525
DEPRECIATION
At 1 January 2023 18,583 66,959 37,802 109,527
Charge for year 3,202 - 1,125 37,171
Eliminated on disposal - - - -
At 31 December 2023 21,785 66,959 38,927 146,698
NET BOOK VALUE
At 31 December 2023 944,592 - 4,500 113,827
At 31 December 2022 947,794 - 5,625 55,747

Fixtures
and Motor Computer
fittings vehicles equipment Totals
£    £    £    £   
COST
At 1 January 2023 40,189 513,711 75,110 1,871,047
Additions - 133,653 - 228,904
Disposals - (56,315 ) - (56,315 )
At 31 December 2023 40,189 591,049 75,110 2,043,636
DEPRECIATION
At 1 January 2023 25,887 238,240 72,360 569,358
Charge for year 8,741 125,506 2,334 178,079
Eliminated on disposal - (33,959 ) - (33,959 )
At 31 December 2023 34,628 329,787 74,694 713,478
NET BOOK VALUE
At 31 December 2023 5,561 261,262 416 1,330,158
At 31 December 2022 14,302 275,471 2,750 1,301,689

2 MOTO LIMITED (REGISTERED NUMBER: 08231834)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
for the Year Ended 31 December 2023

11. FIXED ASSET INVESTMENTS

Company
Shares in
group
undertakings
£   
COST
At 1 January 2023
and 31 December 2023 5,360,000
NET BOOK VALUE
At 31 December 2023 5,360,000
At 31 December 2022 5,360,000


The company's investments at the balance sheet date in the share capital of companies registered in England and Wales include the following:


Subsidiaries

Principal Activity

%Holding
Direct/Indirect
Holding
Moto GB Limited Wholesale and retail distributor of
motorcycles and accessories
100% Direct

Chorley Yamaha Centre Limited Motorcycles and accessories retailer 100% Direct

KJM Superbikes Limited Wholesale and retail distributor of
motorcycles and accessories
100% Direct

KJM Trade Limited Dormant 100% Direct

Motorcycle Centre Orrell Limited Motorcycles and accessories retailer 100% Direct

Walkdens of Chorley Limited Property 100% Indirect


12. INVESTMENT PROPERTY

Group
Total
£   
FAIR VALUE
At 1 January 2023
and 31 December 2023 400,000
NET BOOK VALUE
At 31 December 2023 400,000
At 31 December 2022 400,000

2 MOTO LIMITED (REGISTERED NUMBER: 08231834)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
for the Year Ended 31 December 2023

13. STOCKS

Group
2023 2022
£    £   
Goods for resale 40,518,715 35,955,976

14. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group Company
2023 2022 2023 2022
£    £    £    £   
Trade debtors 5,972,603 11,804,531 - -
Amounts owed by group undertakings - - 605,629 559,608
Amounts owed by related parties 2,919,457 2,582,108 - -
Other debtors 184,549 1,940,814 - -
Prepayments 60,413 66,888 - -
9,137,022 16,394,341 605,629 559,608

15. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group Company
2023 2022 2023 2022
£    £    £    £   
Bank loans and overdrafts (see note 16) 873,078 6,924,467 - -
Trade creditors 8,059,475 5,353,583 - -
Amounts owed to group undertakings - - 1,399,119 2,455,966
Tax 602,030 2,679,144 - -
Social security and other taxes 744,671 3,057,361 - -
Other creditors 1,481,126 1,167,116 - -
Directors' current accounts 1,207,510 103,642 1,207,510 103,642
Accrued expenses 219,291 215,022 - -
13,187,181 19,500,335 2,606,629 2,559,608

16. LOANS

An analysis of the maturity of loans is given below:

Group
2023 2022
£    £   
Amounts falling due within one year or on demand:
Bank overdrafts 873,078 6,924,467

2 MOTO LIMITED (REGISTERED NUMBER: 08231834)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
for the Year Ended 31 December 2023

17. SECURED DEBTS

The following secured debts are included within creditors:

Group
2023 2022
£    £   
Bank overdrafts 873,078 6,924,467

The group overdraft facility is secured by debentures over the assets of each company in the 2Moto group, an unlimited intercompany guarantee between the group companies and by a £2.2 million guarantee from the Mason family.

18. PROVISIONS FOR LIABILITIES

Group
2023 2022
£    £   
Deferred tax
Accelerated capital allowances 33,647 27,251
Capital gains 37,513 37,513
Short term timing differences (14,791 ) (22,253 )
56,369 42,511

Group
Deferred
tax
£   
Balance at 1 January 2023 42,511
Charge to Profit and loss account during year 13,858
Balance at 31 December 2023 56,369

19. CALLED UP SHARE CAPITAL

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

20. RESERVES

Group
Non
Retained Share distributable
earnings premium reserves Totals
£    £    £    £   

At 1 January 2023 32,346,707 2,359,002 309,266 35,014,975
Profit for the year 3,655,356 - - 3,655,356
Dividends (1,000 ) - - (1,000 )
At 31 December 2023 36,001,063 2,359,002 309,266 38,669,331

2 MOTO LIMITED (REGISTERED NUMBER: 08231834)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
for the Year Ended 31 December 2023

20. RESERVES - continued

Company
Retained Share
earnings premium Totals
£    £    £   

At 1 January 2023 1,000,000 2,359,002 3,359,002
Profit for the year - - -
Dividends (1,000 ) - (1,000 )
At 31 December 2023 999,000 2,359,002 3,358,002

The retained earnings reserve includes all current and prior period retained profits and losses.

The share premium reserve includes any premiums received on issue of share capital. Any transaction costs associated with the issuing of the shares are deducted from share premium.

Non distributable reserves relates to the revaluation amount of investment properties.

21. RELATED PARTY DISCLOSURES

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

Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements.

Rental charges
During the year, the group paid rental charges of £670,496 (2022: £525,079) for use of business premises to the directors.

Loans with related parties
During the year the company made loan payments of £737,350 and received loan repayments of £400,000 from a related party, the total loan outstanding at the year end was £2,919,457 (2022: £2,582,108).

Dividends were paid during the year to Mrs E Mason of £1,000 (2022: £2,000), a director of 2 Moto Limited.

22. ULTIMATE CONTROLLING PARTY

The ultimate controlling party of 2 Moto Limited is the board of directors.