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Registered number: NI626334










PRENTICE PORTADOWN LIMITED










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

 
PRENTICE PORTADOWN LIMITED
 

COMPANY INFORMATION


Directors
Joanne Houston 
Peter Houston 




Registered number
NI626334



Registered office
Suite 2.06, Custom House
Custom House Square

Belfast

Antrim

BT1 3ET




Independent auditors
UHY Hacker Young Fitch Limited

Suite 2.06, Custom House

Custom House Square

Belfast

Antrim

BT1 3ET





 
PRENTICE PORTADOWN LIMITED
 

CONTENTS



Page
Strategic Report
1 - 2
Directors' Report
3 - 4
Independent Auditors' Report
5 - 8
Statement of Comprehensive Income
9
Balance Sheet
10
Statement of Changes in Equity
11
Statement of Cash Flows
12
Analysis of Net Debt
13
Notes to the Financial Statements
14 - 30


 
PRENTICE PORTADOWN LIMITED
 

STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

Introduction
 
The Company is pleased to present its Strategic Report for the year ended 31st December 2023. The Company is the main trading subsidiary of a Group and as such the Strategic Report details all relevant group matters.

Business review
 
The Company's principal activity is the sale and service of motor vehicles during the year. 
The trading results for the year and the financial position at the end of the year were considered to be satisfactory by the directors.  Operating profits before interest of £1,148,563 (2022 : £562,448) were achieved, and operating profits after exceptional items and interest amounted to £907,091 (2022 : £439,256).  The Company finished the trading year with net assets of £1,873,425. 
The Company continues to manage the challenges of new car supply issues due to component shortages and also restricted used car supply, which has led to used wholesale prices growing at a high rate. This has resulted in lower used car stock holdings at times and increased stock turnaround times.
Despite the demanding trading conditions, the business continued to strengthen its balance sheet and is pleased to report contuined profitability.

Principal risks and uncertainties
 
The process of risk acceptance and risk management is addressed through a framework of policies, procedures and internal controls.  Management have assessed the major risks to which the Company is exposed, and have set in place policies which are subject to ongoing review by management.
Compliance with regulation, legal and ethical standards is a high priority for the Company and management take on an important oversight role in this regard.
The automotive sector remains competitive. The Company seeks to maintain an advantage over competitors by offering the highest level of customer services. 
The Company has recognised the risks posed by the current Brexit uncertainty in Northern Ireland, and the withdrawal of the used car VAT margin scheme in May 2023 and has implemented various contingency measures and mitigating actions to address the threat.
The success of the business is reliant on consumer spending, and an economic downturn will have a direct impact on the income of the Company. In response, the directors keep a close watch on wider economic conditions and modify strategies to reflect the market.

Financial key performance indicators
 
The key performance indicators of turnover, cars sold, operating profit percentage, net profit percentage, stock levels, debtor days and debt position are reviewed on a regular basis and were all considered to be in line with the directors' expectations.

Other key performance indicators
 
Customer satisfaction is a key performance indicator and is measured using customer feedback and after-sales care. Customer satisfaction is reviewed regularly and considered to be at a high level by the directors.
Going concern
The Company's financial forecasts and sensitivities show the Company is expected to continue to be cash generative taking account of the anticipated changes in trading performance, and it will operate within its facilities and meet its obligations as they fall due. Consequently, the Directors continue to adopt the going concern basis of accounting in preparing the annual financial statements.

Page 1

 
PRENTICE PORTADOWN LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Directors' statement of compliance with duty to promote the success of the Company
 
The directors are aware of their duty under s.172 of the Companies Act 2006 to act in the way they would
consider, in good faith, would be most likely to promote the success of the Company for the benefit of its members as a whole and, in doing so, to have regard (amongst other matters) to:
The likely consequences of its decisions in the long-term
 - The directors have developed plans for the business that have been designed to have a long-term beneficial impact for the group as a whole and will assist in the decision-making process to deliver a high quality of service.
The interests of the Company’s employees
 - The directors consider the employees to be fundamental to the delivery of their plans and the success of the group. The company is a responsible employer and places the health, safety and well-being of its team members at the front of the way it conducts business.
A need to foster the Company’s business relationships with suppliers, customers and others
 - The directors recognise the relationships it has with its suppliers and customers as being the key to a successful future. We meet with our BMW and Mini partners regularly throughout the year and continuously monitors the satisfaction and experiences of our customers. The directors recognise the need to take corrective action where necessary to prevent involvement in modern slavery, corruption, bribery and breaches of competition laws.
The impact of the Company’s operations on the community and the environment
 - The directors' plans give the highest regard to the impact of the business operations on the community and the environment. Consideration is also given to our wider social responsibilities and how we comply with environmental legislation and exceed those requirements. The company is currently implementing the BMW sustainability project and its electric vehicles project as plans to reduce its environmental impact.
The desirability of the Company maintaining a reputation for high standards of business conduct and the need to act fairly as between members of the Company
 - The Directors ensure that the group as a whole behaves responsibly and that the managers operate the business as such. We intend to operate with high standards of business conduct, good corporate governance and to act fairly between each other, as we recognise this will nurture our reputation in the local community and throughout the BMW and Mini network.


This report was approved by the board on 28 June 2024 and signed on its behalf.





Joanne Houston
Director

Page 2

 
PRENTICE PORTADOWN LIMITED
 

 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

The directors present their report and the financial statements for the year ended 31 December 2023.

Directors' responsibilities statement

The directors are responsible for preparing the Strategic Report, the Directors' Report 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), 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 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 for the Company's financial statements and then apply them consistently;

make judgments 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 to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

Results and dividends

The profit for the year, after taxation, amounted to £683,135 (2022 - £335,085).

The directors do not recommend a dividend payment for the year.

Directors

The directors who served during the year were:

Joanne Houston 
Peter Houston 

Future developments

The directors are satisfied with the trading results, and it is anticipated future profitability will materialise through investment in continually improving the trading facilities and their continued commitment to growing the business.

Matters covered in the Strategic Report

Under Schedule 7.1A "Large and Medium-Sized Companies and Groups (Accounts and Reports) Regulations 2008", the Company has elected to disclose the following directors' report information in the Strategic Report: 
•             Principal activities and business review;
•             Principal risks and uncertainties;
•             Financial key performance indicators; and
•             Events since the balance sheet date.

Page 3

 
PRENTICE PORTADOWN LIMITED
 

 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

This report was approved by the board on 28 June 2024 and signed on its behalf.
 





Joanne Houston
Director

Page 4

 
 
 
 
INDEPENDENT AUDITORS' REPORT TO 
THE SHAREHOLDER OF PRENTICE PORTADOWN LIMITED
 
 
 
 
 

Opinion


We have audited the financial statements of Prentice Portadown Limited (the 'Company') for the year ended 31 December 2023, which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Cash Flows, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe 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 United Kingdom, including the Financial Reporting Council'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.


Page 5

 
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PRENTICE PORTADOWN LIMITED (CONTINUED)

Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual ReportOur 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. 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 course of 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.


Opinion 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.


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 Directors' Report.


We have nothing to report in respect of the following matters in relation to which 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 Directors' Responsibilities Statement set out on page 3, 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 is 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.


Page 6

 
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PRENTICE PORTADOWN LIMITED (CONTINUED)

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 an Auditors' Report 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.


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows. 
The engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations. As part of the audit in accordance with ISAs (UK) we exercised professional judgement and maintained professional scepticism throughout the audit. We identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the sector and we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006,  Schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, taxation legislation and data protection, anti-bribery, employment, environmental and health and safety legislation.
We assessed the susceptibility of the Company’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. We obtained an understanding of internal controls relevant to the audit in order to design audit procedures that were appropriate in the circumstances but not for the purpose of expressing an opinion of the effectiveness of the Company’s internal controls.
 
Page 7

 
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PRENTICE PORTADOWN LIMITED (CONTINUED)


To address the risk of fraud through management bias and override of controls, we performed analytical procedures to identify any unusual or unexpected relationships;  tested journal entries to identify unusual transactions; evaluated the appropriateness of accounting policies used, including managements’ use of the going concern basis of accounting, and the reasonableness of accounting estimates and related disclosures made by management; and investigated the rationale behind significant or unusual transactions.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included but were not limited to agreeing financial statement disclosures to underlying supporting documentation; reading the minutes of meetings of those charged with governance; and enquiring of management as to actual and potential litigation and claims.


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 Auditors' Report.


Use of our report
 

This report is made solely to the Company's shareholders, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006Our audit work has been undertaken so that we might state to the Company's shareholders those matters we are required to state to them in an Auditors' Report 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 shareholders, as a body, for our audit work, for this report, or for the opinions we have formed.





Michael Fitch (Senior Statutory Auditor)
  
for and on behalf of
UHY Hacker Young Fitch Limited
 
Suite 2.06, Custom House
Custom House Square
Belfast
Antrim
BT1 3ET

28 June 2024

Page 8

 
PRENTICE PORTADOWN LIMITED
 

STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
Note
£
£

  

Turnover
 3 
44,486,281
43,693,027

Cost of sales
  
(39,644,591)
(39,160,177)

Gross profit
  
4,841,690
4,532,850

Administrative expenses
  
(3,697,086)
(3,975,396)

Other operating income
 4 
3,959
4,994

Operating profit
 5 
1,148,563
562,448

Interest payable and similar expenses
 9 
(241,472)
(123,192)

Profit before tax
  
907,091
439,256

Tax on profit
 10 
(223,956)
(104,171)

Profit for the financial year
  
683,135
335,085

There were no recognised gains and losses for 2023 or 2022 other than those included in the statement of comprehensive income.

There was no other comprehensive income for 2023 (2022:£NIL).

The notes on pages 14 to 30 form part of these financial statements.

Page 9

 
PRENTICE PORTADOWN LIMITED
REGISTERED NUMBER: NI626334

BALANCE SHEET
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Intangible assets
 11 
32,502
35,002

Tangible assets
 12 
998,835
793,679

  
1,031,337
828,681

Current assets
  

Stocks
 13 
7,621,365
7,147,977

Debtors
 14 
1,589,405
1,319,549

Cash at bank and in hand
 15 
402,320
476,233

  
9,613,090
8,943,759

Creditors: amounts falling due within one year
 16 
(8,595,923)
(8,449,025)

Net current assets
  
 
 
1,017,167
 
 
494,734

Total assets less current liabilities
  
2,048,504
1,323,415

Creditors: amounts falling due after more than one year
 17 
(19,623)
(29,876)

Provisions for liabilities
  

Deferred tax
 20 
(155,356)
(103,149)

  
 
 
(155,356)
 
 
(103,149)

Net assets
  
1,873,525
1,190,390


Capital and reserves
  

Called up share capital 
 21 
100
100

Profit and loss account
 22 
1,873,425
1,190,290

  
1,873,525
1,190,390


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 28 June 2024.




Joanne Houston
Director

The notes on pages 14 to 30 form part of these financial statements.

Page 10

 
PRENTICE PORTADOWN LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 January 2022
100
855,205
855,305


Comprehensive income for the year

Profit for the year

-
335,085
335,085


Other comprehensive income for the year
-
-
-


Total comprehensive income for the year
-
335,085
335,085


Total transactions with owners
-
-
-



At 1 January 2023
100
1,190,290
1,190,390


Comprehensive income for the year

Profit for the year

-
683,135
683,135


Other comprehensive income for the year
-
-
-


Total comprehensive income for the year
-
683,135
683,135


Total transactions with owners
-
-
-


At 31 December 2023
100
1,873,425
1,873,525


The notes on pages 14 to 30 form part of these financial statements.

Page 11

 
PRENTICE PORTADOWN LIMITED
 

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
£
£

Cash flows from operating activities

Profit for the financial year
683,135
335,085

Adjustments for:

Amortisation of intangible assets
2,500
2,500

Depreciation of tangible assets
127,430
99,247

Profit on disposal of tangible assets
-
(14,438)

Interest paid
241,472
123,192

Taxation charge
223,956
104,172

(Increase) in stocks
(473,387)
(2,835,199)

(Increase)/decrease in debtors
(113,677)
65,570

(Increase) in amounts owed by groups
(156,180)
(405,820)

Increase in creditors
42,805
3,247,174

Corporation tax (paid)
(67,658)
(68,992)

Net cash generated from operating activities

510,396
652,491


Cash flows from investing activities

Purchase of tangible fixed assets
(332,587)
(168,924)

Sale of tangible fixed assets
-
19,000

Net cash from investing activities

(332,587)
(149,924)

Cash flows from financing activities

Repayment of loans
(10,250)
(10,000)

Interest paid
(241,472)
(123,192)

Net cash used in financing activities
(251,722)
(133,192)

Net (decrease)/increase in cash and cash equivalents
(73,913)
369,375

Cash and cash equivalents at beginning of year
476,233
106,858

Cash and cash equivalents at the end of year
402,320
476,233


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
402,320
476,233

402,320
476,233


Page 12

 
PRENTICE PORTADOWN LIMITED
 

ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 DECEMBER 2023




At 1 January 2023
Cash flows
At 31 December 2023
£

£

£

Cash at bank and in hand

476,233

(73,913)

402,320

Debt due after 1 year

(29,875)

10,250

(19,625)

Debt due within 1 year

(10,125)

-

(10,125)


436,233
(63,663)
372,570

The notes on pages 14 to 30 form part of these financial statements.

Page 13

 
PRENTICE PORTADOWN LIMITED
 

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

1.


General information

Prentice Portadown Limited is a private company, limited by shares, incorporated in Northern Ireland with Company Registration Number NI626334.  
The registered office is situated at 27-29 Gordon Street, Belfast, Co. Antrim, BT1 2LG. The Company's principal activity is the sale and service of motor vehicles.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies.

The following principal accounting policies have been applied:

 
2.2

Going concern

The financial statements have been prepared under the going concern basis.
The Company's financial forecasts and sensitivities show the Company is expected to continue to be cash generative taking account of the anticipated changes in trading performance as a result of suppy issues and brexit uncertainties and the effects of mitigating actions taken or available to the Company, and it will operate within its facilities and meet its obligations as they fall due. Consequently, the directors continue to adopt the going concern basis of accounting in preparing the annual financial statements.

 
2.3

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the Company has transferred the significant risks and rewards of ownership to the buyer;
the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

 
2.4

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Page 14

 
PRENTICE PORTADOWN LIMITED
 

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

2.Accounting policies (continued)

 
2.5

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.6

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

 
2.7

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.

 
2.8

Current and deferred taxation

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

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

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Page 15

 
PRENTICE PORTADOWN LIMITED
 

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

2.Accounting policies (continued)

 
2.9

Intangible assets

Goodwill

Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the Statement of Comprehensive Income over its useful economic life.

Other intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

 
2.10

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Long-term leasehold property
-
2%
Straight line
Plant and machinery
-
2%
- 10% Straight line
Fixtures and fittings
-
2%
- 10% Straight line
Computer equipment
-
20%
Straight line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.11

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

Page 16

 
PRENTICE PORTADOWN LIMITED
 

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

2.Accounting policies (continued)

 
2.12

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.13

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Company's cash management.

 
2.14

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.15

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

 
2.16

Financial instruments

Basic financial assets

Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

Other financial assets

Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.

Impairment of financial assets

Page 17

 
PRENTICE PORTADOWN LIMITED
 

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

2.Accounting policies (continued)


2.16
Financial instruments (continued)

Financial assets are assessed for indicators of impairment at each reporting date. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.


3.


Turnover

An analysis of turnover by class of business is as follows:


2023
2022
£
£

Vehicle sales
35,646,441
36,271,173

Parts sales
4,558,718
3,429,224

Service sales
2,623,883
1,950,142

Other sales
1,657,238
2,042,488

44,486,280
43,693,027


Analysis of turnover by country of destination:

2023
2022
£
£

United Kingdom
44,486,281
43,693,027

44,486,281
43,693,027


All turnover arose within the United Kingdom.


4.


Other operating income

2023
2022
£
£

Other operating income
3,959
4,994

3,959
4,994


Page 18

 
PRENTICE PORTADOWN LIMITED
 

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

5.


Operating profit

The operating profit is stated after charging:

2023
2022
£
£

Other operating lease rentals
349,000
314,000

Settlement agreement
-
425,000

The settlement agreement is material to the prior year financial statements. During the previous year the Company entered into a mediation process and a commercial settlement was agreed and paid in the post balance sheet period in relation to legal disputes that had been ongoing since 2017. The underlying disputes related to the terms of a contract relating to the purchase of assets made in 2016. The Company made no admission of liability in the settlement. The Directors believe the decision to settle would be most  likely to promote the success of the Company. The decision to settle was made to avoid any long term uncertainty about potentially substantial future legal, professional and other costs and mitigated the risks of litigation.


6.


Auditors' remuneration

During the year, the Company obtained the following services from the Company's auditors:


2023
2022
£
£

Fees payable for the audit of the Company's annual financial statements
12,320
11,850

Fees payable in respect of all other services
27,720
29,034

Page 19

 
PRENTICE PORTADOWN LIMITED
 

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

7.


Employees

Staff costs, including directors' remuneration, were as follows:


2023
2022
£
£

Wages and salaries
2,435,973
2,073,084

Social security costs
250,245
201,270

Cost of defined contribution scheme
129,496
107,753

2,815,714
2,382,107


The average monthly number of employees, including the directors, during the year was as follows:


        2023
        2022
            No.
            No.







Administration
12
5



Sales
15
19



Parts and workshops
43
31

70
55


8.


Directors' remuneration

2023
2022
£
£

Directors' emoluments
204,990
169,221

Company contributions to defined contribution pension schemes
62,000
62,000

266,990
231,221


During the year retirement benefits were accruing to 1 director (2022 - 1) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £204,990 (2022 - £171,447).

The value of the Company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £62,000 (2022 - £62,000).

Page 20

 
PRENTICE PORTADOWN LIMITED
 

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

9.


Interest payable and similar expenses

2023
2022
£
£


Bank interest payable
1,997
(17)

Other loan interest payable
239,475
123,209

241,472
123,192


10.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
171,750
67,658


171,750
67,658


Total current tax
171,750
67,658

Deferred tax


Origination and reversal of timing differences
52,206
36,513

Total deferred tax
52,206
36,513


Taxation on profit on ordinary activities
223,956
104,171
Page 21

 
PRENTICE PORTADOWN LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
 
10.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is lower than (2022 - lower than) the standard rate of corporation tax in the UK of 25% (2022 - 19%). The differences are explained below:

2023
2022
£
£


Profit on ordinary activities before tax
907,091
439,256


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2022 - 19%)
226,773
83,459

Effects of:


Non-tax deductible amortisation of goodwill and impairment
475
475

Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
3,625
91

Capital allowances for year in excess of depreciation
(47,844)
(8,602)

Other timing differences leading to an increase (decrease) in taxation
52,205
36,514

Other differences leading to an increase (decrease) in the tax charge
(11,278)
-

Group relief
-
(4,931)

Other factors to balance charge
-
(2,835)

Total tax charge for the year
223,956
104,171


Factors that may affect future tax charges

There were no factors that may affect future tax charges.

Page 22

 
PRENTICE PORTADOWN LIMITED
 

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

11.


Intangible assets




Goodwill

£



Cost


At 1 January 2023
50,003



At 31 December 2023

50,003



Amortisation


At 1 January 2023
15,001


Charge for the year on owned assets
2,500



At 31 December 2023

17,501



Net book value



At 31 December 2023
32,502



At 31 December 2022
35,002



Page 23

 
PRENTICE PORTADOWN LIMITED
 

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

12.


Tangible fixed assets





Long-term leasehold property
Plant and machinery
Fixtures and fittings
Computer equipment
Total

£
£
£
£
£



Cost or valuation


At 1 January 2023
123,400
718,700
215,553
74,395
1,132,048


Additions
5,918
78,641
243,684
4,343
332,586



At 31 December 2023

129,318
797,341
459,237
78,738
1,464,634



Depreciation


At 1 January 2023
24,530
250,228
35,195
28,416
338,369


Charge for the year on owned assets
30,735
25,700
44,655
26,340
127,430



At 31 December 2023

55,265
275,928
79,850
54,756
465,799



Net book value



At 31 December 2023
74,053
521,413
379,387
23,982
998,835



At 31 December 2022
98,870
468,472
180,358
45,979
793,679




The net book value of land and buildings may be further analysed as follows:


2023
2022
£
£

Long leasehold
74,053
98,871

74,053
98,871


Page 24

 
PRENTICE PORTADOWN LIMITED
 

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

13.


Stocks

2023
2022
£
£

Parts stock
260,483
457,274

Consignment stock
2,923,831
1,501,958

Vehicle stock
4,437,051
5,188,745

7,621,365
7,147,977


The carrying value of stocks are stated net of impairment losses totalling £nil (2022 - £nil). Impairment losses totalling £nil (2022 - £nil) were recognised in profit and loss.


14.


Debtors

2023
2022
£
£

Due after more than one year

Amounts owed by group undertakings
684,507
528,327

684,507
528,327

Due within one year

Trade debtors
505,556
456,936

Amounts owed by group undertakings
100
100

Other debtors
362,766
215,745

Prepayments and accrued income
36,476
118,441

1,589,405
1,319,549



15.


Cash and cash equivalents

2023
2022
£
£

Cash at bank and in hand
402,320
476,233

402,320
476,233


Page 25

 
PRENTICE PORTADOWN LIMITED
 

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

16.


Creditors: Amounts falling due within one year

2023
2022
£
£

Bank loans
10,125
10,125

Trade creditors
7,672,347
6,800,600

Corporation tax
171,750
67,658

Other taxation and social security
76,560
277,501

Other creditors
322,690
288,312

Accruals and deferred income
342,451
1,004,829

8,595,923
8,449,025


The following liabilities were secured:

2023
2022
£
£



Vehicle consignment creditor
2,923,831
1,501,958

2,923,831
1,501,958

Details of security provided:

The vehicle consignment creditor is secured on the consignment stock to which the liability relates.


17.


Creditors: Amounts falling due after more than one year

2023
2022
£
£

Bank loans
19,623
29,876

19,623
29,876


Page 26

 
PRENTICE PORTADOWN LIMITED
 

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

18.


Loans


Analysis of the maturity of loans is given below:


2023
2022
£
£

Amounts falling due within one year

Bank loans
10,125
10,125


10,125
10,125

Amounts falling due 1-2 years

Bank loans
10,125
10,125


10,125
10,125

Amounts falling due 2-5 years

Bank loans
9,500
19,750


9,500
19,750


29,750
40,000



19.


Financial instruments

2023
2022
£
£

Financial assets


Financial assets measured at fair value through profit or loss
402,320
476,233




Financial assets measured at fair value through profit or loss comprise cash at the bank.

Page 27

 
PRENTICE PORTADOWN LIMITED
 

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

20.


Deferred taxation




2023


£






At beginning of year
(103,150)


Charged to profit or loss
(52,206)



At end of year
(155,356)

The provision for deferred taxation is made up as follows:

2023
2022
£
£


Accelerated capital allowances
(155,355)
(103,150)

(155,355)
(103,150)


21.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



100 (2022 - 100) Ordinary shares of £1.00 each
100
100



22.


Reserves

Profit and loss account

The profit and loss account includes all current period retained profits and losses.


23.


Pension commitments

The Company operates a defined contributions pension schemes. The assets of the scheme are held separately from those of the Company  in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £129,496 (2022: £107,753) There were no contributions payable to the fund at the balance sheet date.

The Company made an employer pension contribution on behalf of the director of which £nil was payable at the balance sheet date.

Page 28

 
PRENTICE PORTADOWN LIMITED
 

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

24.


Commitments under operating leases

At 31 December 2023 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2023
2022
£
£


Not later than 1 year
349,000
349,000

Later than 1 year and not later than 5 years
1,396,000
1,396,000

Later than 5 years
2,792,000
3,141,000

4,537,000
4,886,000


25.


Related party transactions

Prentice Portadown Limited is a subsidiary of WIFCO Limited.
Prentice Portadown Limited also rents a building from Strathden Limited, which is a fellow subsidiary of WIFCO Limited.
During the year the company made purchases of £nil (2022 : £25,000) on agreed terms from a company associated by virtue of key management personnel. At the balance sheet date the company was owed £256,620 from this associated company. This amount is included in note 14 of the financial statements
During the year the company advanced monies to a director. At the balance sheet date £106,146 was owed to the company by the director. These amounts were repaid within 9 months of the year-end.

Page 29

 
PRENTICE PORTADOWN LIMITED
 

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

26.


Controlling party

The parent company is WIFCO Limited, a company registered in Northern Ireland.
The ultimate controlling party is Mrs J Houston by virtue of her shareholding in WIFCO Limited.


Page 30