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REGISTERED NUMBER: 04153063 (England and Wales)















VELLCO LIMITED

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023






VELLCO LIMITED (REGISTERED NUMBER: 04153063)






CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023




Page

Company Information 1

Strategic Report 2

Report of the Directors 3

Report of the Independent Auditors 5

Statement of Income and Retained Earnings 8

Balance Sheet 9

Cash Flow Statement 10

Notes to the Cash Flow Statement 11

Notes to the Financial Statements 12


VELLCO LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31 DECEMBER 2023







DIRECTORS: Mrs S J Fell
C G Fell
H J Fell





SECRETARY: Mrs S J Fell





REGISTERED OFFICE: Suite B2 Joseph's Well
Hanover Walk
Leeds
LS3 1AB





REGISTERED NUMBER: 04153063 (England and Wales)





AUDITORS: DSC Accountants Ltd
Chartered Accountants
Statutory Auditors
Tattersall House
East Parade
Harrogate
North Yorkshire
HG1 5LT

VELLCO LIMITED (REGISTERED NUMBER: 04153063)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

The directors present their strategic report for the year ended 31 December 2023.

REVIEW OF BUSINESS
Turnover for the year ended 31 December 2023 was £10,050,886 which was an increase of £36,218 compared with last year (2022: £10,014,668). Operating profit for the year ended 31 December 2023 was £922,683 which is an increase of £5324,718 compared with the prior year (2022: £387,965).

PRINCIPAL RISKS AND UNCERTAINTIES
Liquidity risk
The company seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs and to invest cash assets safely and profitably.

Credit risk
The principal credit risk arises from the company's trade debtors. In order to manage the risk, the company uses third party credit references and customer payment history to establish the correct credit limit for each customer. These credit limits are reviewed on a regular basis and take into account the most recent collection history and spend.

ON BEHALF OF THE BOARD:





C G Fell - Director


25 September 2024

VELLCO LIMITED (REGISTERED NUMBER: 04153063)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 DECEMBER 2023

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

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of dealing in tyre casings and the provision of tyre management services.

DIVIDENDS
An interim dividend of £30,000 per share was paid on 21 September 2023. The directors recommend that no final dividend be paid.

The total distribution of dividends for the year ended 31 December 2023 will be £ 60,000 .

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

Mrs S J Fell
C G Fell
H J Fell

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

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

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

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

VELLCO LIMITED (REGISTERED NUMBER: 04153063)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 DECEMBER 2023


AUDITORS
The auditors, DSC Accountants Ltd, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





C G Fell - Director


25 September 2024

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
VELLCO LIMITED

Opinion
We have audited the financial statements of Vellco Limited (the 'company') for the year ended 31 December 2023 which comprise the Statement of Income and Retained Earnings, Balance Sheet, Cash Flow Statement and Notes to the 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 company's affairs as at 31 December 2023 and of its profit for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
VELLCO LIMITED


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

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

Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page three, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We focused on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006 and UK tax legislation. Our tests included agreeing the financial statement disclosures to underlying supporting documentation, a review of Environment Agency compliance assessment reports, enquiries with management and the inspection of other regulatory and legal correspondence. We addressed the risk of management override of internal controls, including testing journals and estimates and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud and the completeness of incoming resources by reference to the source document for each income stream. We did not identify any key audit matters relating to irregularities, including fraud.

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

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

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
VELLCO 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.




Graham French (Senior Statutory Auditor)
for and on behalf of DSC Accountants Ltd
Chartered Accountants
Statutory Auditors
Tattersall House
East Parade
Harrogate
North Yorkshire
HG1 5LT

25 September 2024

VELLCO LIMITED (REGISTERED NUMBER: 04153063)

STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 DECEMBER 2023

2023 2022
Notes £    £    £    £   

TURNOVER 3 10,050,886 10,014,668

Cost of sales 3,494,394 4,576,013
GROSS PROFIT 6,556,492 5,438,655

Distribution costs 1,064,459 966,555
Administrative expenses 4,635,870 4,089,110
5,700,329 5,055,665
856,163 382,990

Other operating income 66,520 4,975
OPERATING PROFIT 5 922,683 387,965

Interest receivable and similar income 8,384 967
931,067 388,932

Interest payable and similar expenses 6 4,906 6,179
PROFIT BEFORE TAXATION 926,161 382,753

Tax on profit 7 223,991 74,380
PROFIT FOR THE FINANCIAL YEAR 702,170 308,373

Retained earnings at beginning of year 2,594,111 2,345,738

Dividends 8 (60,000 ) (60,000 )

RETAINED EARNINGS AT END OF
YEAR

3,236,281

2,594,111

VELLCO LIMITED (REGISTERED NUMBER: 04153063)

BALANCE SHEET
31 DECEMBER 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 9 2,675,036 2,537,812
Investments 10 36,673 36,673
2,711,709 2,574,485

CURRENT ASSETS
Stocks 11 5,000 5,000
Debtors 12 1,667,985 1,693,232
Cash at bank 1,320,747 1,036,599
2,993,732 2,734,831
CREDITORS
Amounts falling due within one year 13 2,175,074 2,477,044
NET CURRENT ASSETS 818,658 257,787
TOTAL ASSETS LESS CURRENT
LIABILITIES

3,530,367

2,832,272

CREDITORS
Amounts falling due after more than one year 14 (47,045 ) (11,466 )

PROVISIONS FOR LIABILITIES 17 (247,039 ) (226,693 )
NET ASSETS 3,236,283 2,594,113

CAPITAL AND RESERVES
Called up share capital 18 2 2
Retained earnings 19 3,236,281 2,594,111
SHAREHOLDERS' FUNDS 3,236,283 2,594,113

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:





C G Fell - Director


VELLCO LIMITED (REGISTERED NUMBER: 04153063)

CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023

2023 2022
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 1,099,274 928,704
Interest paid (2 ) (39 )
Interest element of hire purchase payments
paid

(4,904

)

(6,140

)
Tax paid (55,390 ) (85,889 )
Net cash from operating activities 1,038,978 836,636

Cash flows from investing activities
Purchase of tangible fixed assets (352,989 ) (367,399 )
Sale of tangible fixed assets 16,684 32,340
Interest received 8,384 967
Net cash from investing activities (327,921 ) (334,092 )

Cash flows from financing activities
Capital repayments in year (125,809 ) (214,466 )
Amount introduced by directors 60,000 60,000
Amount withdrawn by directors (301,100 ) (345,363 )
Equity dividends paid (60,000 ) (60,000 )
Net cash from financing activities (426,909 ) (559,829 )

Increase/(decrease) in cash and cash equivalents 284,148 (57,285 )
Cash and cash equivalents at beginning of
year

2

1,036,599

1,093,884

Cash and cash equivalents at end of year 2 1,320,747 1,036,599

VELLCO LIMITED (REGISTERED NUMBER: 04153063)

NOTES TO THE 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 926,161 382,753
Depreciation charges 357,493 345,405
Profit on disposal of fixed assets (3,735 ) (27,697 )
Finance costs 4,906 6,179
Finance income (8,384 ) (967 )
1,276,441 705,673
Decrease in trade and other debtors 25,247 256,137
Decrease in trade and other creditors (202,414 ) (33,106 )
Cash generated from operations 1,099,274 928,704

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 1,320,747 1,036,599
Year ended 31 December 2022
31.12.22 1.1.22
£    £   
Cash and cash equivalents 1,036,599 1,093,884


3. ANALYSIS OF CHANGES IN NET FUNDS

Other
non-cash
At 1.1.23 Cash flow changes At 31.12.23
£    £    £    £   
Net cash
Cash at bank 1,036,599 284,148 1,320,747
1,036,599 284,148 1,320,747
Debt
Finance leases (110,436 ) 125,809 (154,677 ) (139,304 )
(110,436 ) 125,809 (154,677 ) (139,304 )
Total 926,163 409,957 (154,677 ) 1,181,443

VELLCO LIMITED (REGISTERED NUMBER: 04153063)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1. STATUTORY INFORMATION

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

2. 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.

Preparation of consolidated financial statements
The financial statements contain information about Vellco Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 400 of the Companies Act 2006 from the requirements to prepare consolidated financial statements as it and its subsidiary undertaking are included by full consolidation in the consolidated financial statements of its parent, Vellco Holdings Limited, Suite B2, Joseph's Well, Hanover Walk, Leeds, LS3 1AB.

Turnover
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.
Improvements to property - 10% on cost
Plant and machinery - 25% on reducing balance
Fixtures and fittings - 25% on reducing balance
Motor vehicles - 25% on reducing balance

Investments in subsidiaries
Investments in subsidiary undertakings are recognised at cost.

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

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, 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.


VELLCO LIMITED (REGISTERED NUMBER: 04153063)

NOTES TO THE 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.

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 company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

3. TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by geographical market is given below:

2023 2022
£    £   
United Kingdom 8,025,030 7,860,708
Europe 1,478,237 1,539,417
United States of America 205 6,375
South America 414,454 445,817
Africa 132,960 162,351
10,050,886 10,014,668

VELLCO LIMITED (REGISTERED NUMBER: 04153063)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

4. EMPLOYEES AND DIRECTORS
2023 2022
£    £   
Wages and salaries 2,084,314 1,880,631
Social security costs 154,819 142,360
Other pension costs 34,730 30,830
2,273,863 2,053,821

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

Operations 86 84

2023 2022
£    £   
Directors' remuneration 65,339 85,096
Directors' pension contributions to money purchase schemes 686 1,590

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

Money purchase schemes 1 2

5. OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2023 2022
£    £   
Other operating leases 70,454 79,372
Depreciation - owned assets 269,079 275,613
Depreciation - assets on hire purchase contracts 88,414 69,792
Profit on disposal of fixed assets (3,735 ) (27,697 )
Auditors' remuneration 9,050 13,550
Foreign exchange differences 2,996 (7,826 )

6. INTEREST PAYABLE AND SIMILAR EXPENSES
2023 2022
£    £   
Bank interest 2 39
Hire purchase 4,904 6,140
4,906 6,179

VELLCO LIMITED (REGISTERED NUMBER: 04153063)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

7. 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 203,645 55,519

Deferred tax 20,346 18,861
Tax on profit 223,991 74,380

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

2023 2022
£    £   
Profit before tax 926,161 382,753
Profit multiplied by the standard rate of corporation tax in the UK of 25%
(2022 - 19%)

231,540

72,723

Effects of:
Expenses not deductible for tax purposes 2,254 1,387
Depreciation on non-qualifying assets 5,588 4,977
Capital allowances superdeduction (2,583 ) (9,233 )
Change of rate of tax (12,808 ) 4,526

Total tax charge 223,991 74,380

8. DIVIDENDS
2023 2022
£    £   
Ordinary shares of £1 each
Interim 60,000 60,000

VELLCO LIMITED (REGISTERED NUMBER: 04153063)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

9. TANGIBLE FIXED ASSETS
Improvements
Freehold to Plant and
property property machinery
£    £    £   
COST
At 1 January 2023 724,298 689,496 1,029,935
Additions - - 115,811
Disposals - - (3,640 )
At 31 December 2023 724,298 689,496 1,142,106
DEPRECIATION
At 1 January 2023 13,457 36,301 679,549
Charge for year 7,243 9,250 116,428
Eliminated on disposal - - (3,154 )
At 31 December 2023 20,700 45,551 792,823
NET BOOK VALUE
At 31 December 2023 703,598 643,945 349,283
At 31 December 2022 710,841 653,195 350,386

Fixtures
and Motor
fittings vehicles Totals
£    £    £   
COST
At 1 January 2023 573,064 1,785,989 4,802,782
Additions 142,506 249,349 507,666
Disposals - (52,750 ) (56,390 )
At 31 December 2023 715,570 1,982,588 5,254,058
DEPRECIATION
At 1 January 2023 329,291 1,206,372 2,264,970
Charge for year 20,614 203,958 357,493
Eliminated on disposal - (40,287 ) (43,441 )
At 31 December 2023 349,905 1,370,043 2,579,022
NET BOOK VALUE
At 31 December 2023 365,665 612,545 2,675,036
At 31 December 2022 243,773 579,617 2,537,812

The net book value of tangible fixed assets includes £ 265,241 (2022 - £ 209,377 ) in respect of assets held under hire purchase contracts.

VELLCO LIMITED (REGISTERED NUMBER: 04153063)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

10. FIXED ASSET INVESTMENTS
Shares in
group
undertakings
£   
COST
At 1 January 2023
and 31 December 2023 36,673
NET BOOK VALUE
At 31 December 2023 36,673
At 31 December 2022 36,673

The company's investments at the Balance Sheet date in the share capital of companies include the following:

Paul James Tyres Limited
Registered office: Suite B2, Joseph's Well, Hanover Walk, Leeds, LS3 1AB
Nature of business: Dormant company
%
Class of shares: holding
Ordinary 100.00

11. STOCKS
2023 2022
£    £   
Stocks 5,000 5,000

12. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade debtors 1,526,810 1,569,943
Amounts owed by group undertakings - 1,482
Other debtors 51,075 50,850
Prepayments and accrued income 90,100 70,957
1,667,985 1,693,232

VELLCO LIMITED (REGISTERED NUMBER: 04153063)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Hire purchase contracts (see note 15) 92,259 98,970
Trade creditors 1,170,968 1,447,742
Amounts owed to group undertakings 237,086 236,670
Tax 203,645 55,390
Social security and other taxes 38,302 33,694
VAT 73,410 87,590
Other creditors 38,310 34,043
Directors' current accounts 80,031 321,131
Accruals and deferred income 241,063 161,814
2,175,074 2,477,044

14. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
2023 2022
£    £   
Hire purchase contracts (see note 15) 47,045 11,466

15. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts
2023 2022
£    £   
Net obligations repayable:
Within one year 92,259 98,970
Between one and five years 47,045 11,466
139,304 110,436

Non-cancellable operating leases
2023 2022
£    £   
Within one year 20,862 20,862
Between one and five years 3,477 24,339
24,339 45,201

VELLCO LIMITED (REGISTERED NUMBER: 04153063)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

16. SECURED DEBTS

The following secured debts are included within creditors:

2023 2022
£    £   
Hire purchase contracts 139,304 110,436

17. PROVISIONS FOR LIABILITIES
2023 2022
£    £   
Deferred tax
Accelerated capital allowances 247,039 226,693

Deferred
tax
£   
Balance at 1 January 2023 226,693
Charge to Income Statement during year 20,346
Balance at 31 December 2023 247,039

18. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
2 Ordinary £1 2 2

19. RESERVES
Retained
earnings
£   

At 1 January 2023 2,594,111
Profit for the year 702,170
Dividends (60,000 )
At 31 December 2023 3,236,281

20. ULTIMATE CONTROLLING PARTY

The ultimate controlling party is Vellco Holdings Limited, a company registered in England and Wales whose registered office is Suite B2, Joseph's Well, Hanover Walk, Leeds LS3 1AB.