REGISTERED NUMBER: |
Strategic Report, |
Report of the Directors and |
Financial Statements |
for the Year Ended 31 December 2023 |
for |
SUTTON PARK MOTOR COMPANY LIMITED |
REGISTERED NUMBER: |
Strategic Report, |
Report of the Directors and |
Financial Statements |
for the Year Ended 31 December 2023 |
for |
SUTTON PARK MOTOR COMPANY LIMITED |
SUTTON PARK MOTOR COMPANY LIMITED (REGISTERED NUMBER: 00852710) |
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 Comprehensive Income | 8 |
Statement of Financial Position | 9 |
Statement of Changes in Equity | 10 |
Notes to the Financial Statements | 11 |
SUTTON PARK MOTOR COMPANY LIMITED |
Company Information |
for the year ended 31 December 2023 |
Directors: |
Secretary: |
Registered office: |
Registered number: |
Auditors: |
Northern Assurance Buildings |
9-21 Princess Street |
Manchester |
M2 4DN |
SUTTON PARK MOTOR COMPANY LIMITED (REGISTERED NUMBER: 00852710) |
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 |
Sutton Park Motor Company Ltd is a privately owned Motor Dealer Group with 7 locations across the Midlands, representing 3 Brands. |
The business continues to show solid growth in the year and was able to repay all long term debt. |
The change in Manufacturer's new car production impacted upon used vehicle values particularly in the last quarter and adjustments have been made to trading to eliminate excess stockholding in the first quarter post year end. |
The Directors remain confident in the stability of the business moving forward, which allows for consideration should future opportunities arise. |
Principal risks and uncertainties |
a) GENERAL ECONOMIC CONDITIONS |
The group and company operate in a retail environment and are therefore reliant on consumer spending. |
The UK government has currently increased interest rates to curb the rising inflation and to reduce consumer spending. As a result, the directors have adapted the business over the previous 12 months, and will continue to monitor economic conditions and further government announcements in these areas to mitigate the impact on the group and company. |
b) MANUFACTURER RELATIONSHIPS AND SUPPLY |
The group relies on the strength of its relationships with the vehicle manufacturers to deliver a significant component of group trading. Changes in the strategy of those key manufacturers could materially impact the group's results. Linked to this the group is reliant on new vehicle products from its franchise partners and therefore there are risks regarding available, quality and pricing of new products set by the manufacturers. It is in the manufacturers best interests to be competitive in this area and therefore the risk is considered low, and is offset by other core areas such as used vehicles sales, parts sales and service work. |
c) USED VEHICLE PRICES |
Used vehicles price movements can present a significant risk in the event that the market price moves rapidly between the point of purchase and point of sale of a used vehicle which impacts anticipated margins. Used vehicles stocks are regularly monitored with a focus on stock turn to reduce the length of time that used vehicles are in stock, and review prices to ensure they remain competitive to achieve this. |
d) COMPETITION AND PEOPLE |
The market is highly competitive with various alternatives that customers can look to. The company is proud of its reputation for customer service, quality and value to mitigate this risk.This reputation is due to investment in people and training over the years, to reinforce the Sutton Park brand. The group undertakes regular reviews of remuneration and packages to ensure that it attracts and retains its best people. |
On behalf of the board: |
SUTTON PARK MOTOR COMPANY LIMITED (REGISTERED NUMBER: 00852710) |
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 a car dealership. |
Dividends |
The total distributions of dividends for the year ended 31 December 2023 will be £nil (2022: £1,500,000) |
Future developments |
The directors consider that the business will be well placed to take advantage of any future opportunities which may present themselves. |
Directors |
The directors shown below have held office during the whole of the period from 1 January 2023 to the date of this report. |
Financial instruments |
The company use various financial instruments including overdrafts, cash and various items such as trade debtors and trade creditors that arise directly from its operations. The company does not use derivative financial instruments to manage these risk. |
The existence of these financial instruments expose the company to a number of financial risks including liquidity risk, interest rate risk and credit risk which are described in more detail below: |
Liquidity risk |
The company makes efforts to manage the financial risk by the monitoring of cashflow to ensure that the company is able to meet its foreseeable debts as they fall due and to invest any cash asset profitability. |
Interest rate risk |
The company sometimes uses bank borrowings to finance its operations during peak periods. |
Due to the limited use of facility, and the historically low prevailing interest rate, the director do not deem it necessary to hedge against interest rate fluctuations. |
Credit risk |
The company's principal assets are cash and trade debtors. The credit risk associated with the cash is minimal. |
The principal credit risk therefore arises from its trade debtors. |
In order to manage credit risk the directors have implemented processes to ensure receipt of cleared funds for vehicles sales before the vehicle is released. |
Other trade debtors require approved credit in advance which is supported by references and payments is required within the company's credit terms therefore minimising credit risk. |
Disclosure in the Strategic Report |
The directors' review of the business, and their consideration of the risk and uncertainties surrounding the business, may be found in the Strategic Report. |
SUTTON PARK MOTOR COMPANY LIMITED (REGISTERED NUMBER: 00852710) |
Report of the Directors |
for the year ended 31 December 2023 |
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), 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 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. |
On behalf of the board: |
Report of the Independent Auditors to the Members of |
Sutton Park Motor Company Limited |
Opinion |
We have audited the financial statements of Sutton Park Motor Company Limited (the 'company') for the year ended 31 December 2023 which comprise the Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity and 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 |
Sutton Park Motor Company 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 four, 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 assessed the susceptibility of the company's financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the engagement team included: |
- identifying and assessing the design and effectiveness of controls that management has in place to prevent and detect fraud; |
- understanding how those charged with governance considered and considered and assessed the potential for override of controls or other inappropriate influence over the reporting process; |
- challenging assumptions and judgements made by management in its significant accounting estimates, in particular stock provision by reference to events after date and e,g, CAP guide; |
- identifying and testing journal entries, in particular any journals posted we considered to be unusual. This included the use of audit data analytic software; |
- performing extended substantive testing on revenue streams, with a focus on existence and cut-off; |
- assessing the extent of compliance with applicable laws and regulations. |
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 |
Sutton Park Motor Company 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. |
for and on behalf of |
Northern Assurance Buildings |
9-21 Princess Street |
Manchester |
M2 4DN |
SUTTON PARK MOTOR COMPANY LIMITED (REGISTERED NUMBER: 00852710) |
Statement of Comprehensive |
Income |
for the year ended 31 December 2023 |
2023 | 2022 |
Notes | £ | £ |
Turnover | 4 |
Cost of sales | ( |
) | ( |
) |
Gross profit |
Administrative expenses | ( |
) | ( |
) |
Operating profit | 6 |
Interest payable and similar expenses | 7 | ( |
) | ( |
) |
Profit before taxation |
Tax on profit | 8 | ( |
) | ( |
) |
Profit for the financial year |
Other comprehensive income | - | - |
Total comprehensive income for the year |
SUTTON PARK MOTOR COMPANY LIMITED (REGISTERED NUMBER: 00852710) |
Statement of Financial Position |
31 December 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
Fixed assets |
Tangible assets | 10 |
Current assets |
Stocks | 11 |
Debtors | 12 |
Cash at bank and in hand |
Creditors |
Amounts falling due within one year | 13 |
Net current assets |
Total assets less current liabilities |
Provisions for liabilities | 17 |
Net assets |
Capital and reserves |
Called up share capital | 18 |
Retained earnings | 19 |
Shareholders' funds |
The financial statements were approved by the Board of Directors and authorised for issue on |
SUTTON PARK MOTOR COMPANY LIMITED (REGISTERED NUMBER: 00852710) |
Statement of Changes in Equity |
for the year ended 31 December 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 January 2022 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 December 2022 |
Changes in equity |
Total comprehensive income | - |
Balance at 31 December 2023 |
SUTTON PARK MOTOR COMPANY LIMITED (REGISTERED NUMBER: 00852710) |
Notes to the Financial Statements |
for the year ended 31 December 2023 |
1. | Statutory information |
Sutton Park Motor Company Limited is a |
2. | Statement of compliance |
3. | Accounting policies |
Going concern |
The directors have assessed and concluded that the group have adequate resources to meet its debts as they fall due for the period of 12 months after the approval of these financial statements. |
In light of the statement above, the directors have therefore prepared the financial statements on a going concern basis. |
Basis of preparation of financial statements |
The preparation of the financial statements in compliance with FRS 102 require the use of certain critical accounting estimates. It also requires management to exercise judgment, in applying the company's accounting policies (see judgements in applying accounting policies and key sources of estimation uncertainty below). |
Financial Reporting Standard 102 - reduced disclosure exemptions |
The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland": |
• | the requirements of Section 7 Statement of Cash Flows; |
• | the requirement of paragraph 3.17(d); |
• | the requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c); |
• | the requirement of paragraph 33.7. |
This information is included in the consolidated financial statements of Sutton Park Holdings Limited as at 31 December 2023 and the financial statements may be obtained from Companies House, Crown Way, Cardiff, CF14 3UZ. |
Related party exemption |
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. |
SUTTON PARK MOTOR COMPANY LIMITED (REGISTERED NUMBER: 00852710) |
Notes to the Financial Statements - continued |
for the year ended 31 December 2023 |
3. | Accounting policies - continued |
Judgments in applying accounting policies and key sources of estimation |
The preparation of the financial statements require management to make judgements, estimates and assumptions that effect the amounts reported for assets and liabilities at the reporting date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. |
The following judgments have been made by the directors in applying the company's accounting policies: |
a) Stock valuation |
Stock valuation is regularly monitored against age profile and market demand Management use a number of market tools during the appraisal process including Glass' and CAP valuation guides. The directors maintain oversight the ageing stock profiles and monthly review of any provision required is performed. |
b) Property improvements, plant & machinery and fixtures & fittings |
At each reporting date property improvements, plant and machinery and fixtures and fittings are assessed for any indication of impairment. If such indication exists the recoverable amount of the asset is determined based on value in use calculations which require estimates to be made of future cash flows. An impairment loss is recognised where the carrying amount exceeds the recoverable amount. |
c) Brand Incentives |
The company receives income in the form of various incentives which are determined by the company's brand partners. The amount receivable is generally based on achieving specific objectives such as a specified sales volume, as well as other objectives including maintaining brand partner standards which may include, but are not limited to, retail centre image and design requirements, customer satisfaction survey results and training standards. Objectives are generally set and measured on either a quarterly on annual basis. |
Where incentives are based on a specific sales volume or number of registrations, the related income is recognised as a reduction in cost of sales when it is reasonably certain that the income has been earned. This is generally the later of the date the related vehicles are sold or registered when it is reasonably certain the related target will be met. |
Where incentives are linked to retail centre image and design requirements, customer satisfaction survey results or training standards. They are recognised as a reduction in cost of sales when it is reasonably certain that the incentives will be received for the relevant period. |
The company may also receive contributions towards facilities' capital expenditure, advertising and promotion. Where the expenditure is received relative to an item of expenditure it is recognised within the Statement of Comprehensive Income to match the cost of that item of expenditure or depreciation of that asset class. |
Turnover |
Turnover from the sales of goods is recognised in the Statement of Comprehensive Income, net of discounts and value added tax, when the significant risks and rewards of ownership have been transferred to the buyer. In general this occurs when vehicles or parts have been supplied or when a service has been completed. |
Commission income is recognised on a receivable basis. |
SUTTON PARK MOTOR COMPANY LIMITED (REGISTERED NUMBER: 00852710) |
Notes to the Financial Statements - continued |
for the year ended 31 December 2023 |
3. | Accounting policies - continued |
Tangible fixed assets |
Leasehold improvements | - |
Plant and machinery | - |
Fixtures and fittings | - |
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulation 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. |
The company adds to the carrying amount of an item of fixed assets the cost of replacing part of such an item when the cost is incurred, if the replacement part is expected to be provide incremental future benefits to the company. Repairs and maintenance are charged to the Statement of Comprehensive Income during the period in which they are incurred. |
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. |
Gain and loss on disposals are determined by comparing the proceeds with the carrying amount and are recognised within the Statement of Comprehensive Income. |
Stocks |
Stocks are stated at the lower of cost and net realisable value, after making due to allowance for obsolete and slow moving stocks. |
At each reporting date, inventories are assessed for impairment. If inventory is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss recognised immediately in the Statement of Comprehensive Income. |
Consignment stocks |
Consignment vehicles which bear considerably more of the risks and responsibilities of ownership are regarded effectively as being under the control of the company and, in accordance with FRS 102 are included in stocks on the Statement of Financial Position, although legal title has not passed to the company. The corresponding liability is included as new vehicle funding is creditors and is secured directly on these vehicles. |
Financial instrument |
The company only has basic financial instruments, which are recognised at amortised cost. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, 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 statement of financial position date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in period different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have need enacted or substantively enacted by the year 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 recoverable against the reversal of deferred tax liabilities or other future taxable profit. |
SUTTON PARK MOTOR COMPANY LIMITED (REGISTERED NUMBER: 00852710) |
Notes to the Financial Statements - continued |
for the year ended 31 December 2023 |
3. | Accounting policies - continued |
Leasing commitments |
Rentals paid under operating leases are charged to the Statement of Comprehensive Income 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 the Statement of Comprehensive Income in the period to which they relate. |
Debtors |
Short term debtors are measured at transaction price, less any impairment. |
Creditors |
Short term creditors are measured at the transaction price. Other financial liabilities, including bank overdrafts, are measured amortised cost. |
Finance cost |
Finance costs are charged to the Statement of Comprehensive Income over the term of the debt. |
Dividends |
Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final dividends are recognised when they are approved by the shareholders. |
4. | Turnover |
The turnover and profit before taxation are attributable to the one principal activity of the company. |
An analysis of turnover by class of business is given below: |
2023 | 2022 |
£ | £ |
5. | Employees and directors |
2023 | 2022 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
2023 | 2022 |
Sales, servicing and parts | 123 | 117 |
Administration | 20 | 20 |
SUTTON PARK MOTOR COMPANY LIMITED (REGISTERED NUMBER: 00852710) |
Notes to the Financial Statements - continued |
for the year ended 31 December 2023 |
5. | Employees and directors - continued |
2023 | 2022 |
£ | £ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes |
Information regarding the highest paid director is as follows: |
2023 | 2022 |
£ | £ |
Emoluments etc |
Pension contributions to money purchase schemes |
Directors' remuneration has been allocated on time usage between group companies. |
6. | Operating profit |
The operating profit is stated after charging: |
2023 | 2022 |
£ | £ |
Other operating leases |
Depreciation - owned assets |
Loss on disposal of fixed assets |
Auditors' remuneration |
Auditors' remuneration for non audit work |
7. | Interest payable and similar expenses |
2023 | 2022 |
£ | £ |
Bank interest |
Stocking loan interest |
8. | 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 |
(Over)/under provision PY | 252 | - |
Total current tax |
Deferred tax |
Tax on profit |
SUTTON PARK MOTOR COMPANY LIMITED (REGISTERED NUMBER: 00852710) |
Notes to the Financial Statements - continued |
for the year ended 31 December 2023 |
8. | 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 |
Profit multiplied by the standard rate of corporation tax in the UK of (2022 - |
Effects of: |
Expenses not deductible for tax purposes |
Capital allowances in excess of depreciation | ( |
) | ( |
) |
Adjustments to tax charge in respect of previous periods |
Change in tax rates | (4,909 | ) | - |
Deferred tax movement | 132,200 | 5,100 |
Total tax charge | 190,726 | 317,759 |
Since 1 April 2023, profits have been charged a corporation tax rate of 25% compared to 19% previously. |
9. | Dividends |
The total distribution of dividends for the year ended 31 December 2023 was £nil. |
10. | Tangible fixed assets |
Fixtures |
Leasehold | Plant and | and |
improvements | machinery | fittings | Totals |
£ | £ | £ | £ |
Cost |
At 1 January 2023 |
Additions |
At 31 December 2023 |
Depreciation |
At 1 January 2023 |
Charge for year |
At 31 December 2023 |
Net book value |
At 31 December 2023 |
At 31 December 2022 |
All fixed assets are pledged as security for the company's bank overdraft. |
SUTTON PARK MOTOR COMPANY LIMITED (REGISTERED NUMBER: 00852710) |
Notes to the Financial Statements - continued |
for the year ended 31 December 2023 |
11. | Stocks |
2023 | 2022 |
£ | £ |
Vehicle stock | 16,197,444 | 10,221,378 |
Parts stock |
The movements on the stock provision during the year for the group was as follows: |
2023 | 2022 |
£ | £ |
Balance at 1 January | 330,409 | 531,616 |
Provided in year | 688,653 | 300,545 |
Utilised in year | (158,630 | ) | (231,752 | ) |
Balance at 31 December | 860,432 | 330,409 |
All stock is pledged as security for the vehicle funding and bank facilities. |
12. | Debtors: amounts falling due within one year |
2023 | 2022 |
£ | £ |
Trade debtors |
Other debtors |
VAT |
Prepayments |
13. | Creditors: amounts falling due within one year |
2023 | 2022 |
£ | £ |
Bank loans and overdrafts (see note 14) |
Trade creditors |
Amounts owed to group undertakings |
Corporation tax |
Social security and other taxes |
Other creditors |
Accruals and deferred income |
14. | Loans |
An analysis of the maturity of loans is given below: |
2023 | 2022 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank overdrafts |
SUTTON PARK MOTOR COMPANY LIMITED (REGISTERED NUMBER: 00852710) |
Notes to the Financial Statements - continued |
for the year ended 31 December 2023 |
15. | Leasing agreements |
Minimum lease payments under non-cancellable operating leases fall due as follows: |
2023 | 2022 |
£ | £ |
Within one year |
Between one and five years |
In more than five years |
16. | Secured debts |
The following secured debts are included within creditors: |
2023 | 2022 |
£ | £ |
Bank overdraft |
Vehicle funding | 14,269,480 | 8,473,717 |
The vehicle funding, included within trade creditors & other creditors , is secured over the vehicles to which it relates. |
The bank overdraft is secured by a fixed and floating charge over the assets of the company. |
17. | Provisions for liabilities |
2023 | 2022 |
£ | £ |
Deferred tax |
Accelerated capital allowances |
Deferred tax |
£ |
Balance at 1 January 2023 |
Charge to Statement of Comprehensive Income during year |
Balance at 31 December 2023 |
18. | Called up share capital |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary | £1 | 1,000 | 1,000 |
SUTTON PARK MOTOR COMPANY LIMITED (REGISTERED NUMBER: 00852710) |
Notes to the Financial Statements - continued |
for the year ended 31 December 2023 |
19. | Reserves |
Retained |
earnings |
£ |
At 1 January 2023 |
Profit for the year |
At 31 December 2023 |
Called up share capital |
Called up share capital represents the nominal value of the shares issued. |
Retained earnings |
The retained earnings represents cumulative profits or losses, net of any dividends paid and other adjustments. |
20. | Pension commitments |
The company operates a defined contributions pension scheme. 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 £144,676 (2022: £138,653). Contributions totalling £17,621 (2022: £17,592) were payable to the fund at the reporting date. |
21. | Ultimate parent company |
Sutton Park Holdings Limited is regarded by the directors as being the company's ultimate parent company. |
The registered office of Sutton Park Holdings Limited is 37 Lichfield Street, Burton on Trent, Staffordshire, DE14 3RH. |
22. | Contingent liabilities and guarantees |
The company has previously received funds in relation to financial support from a manufacturer.These monies can be reclaimed in the event of franchise termination within the first five years of the financial support being paid on a reducing balance basis. The amount that could potentially be reclaimed at the reporting date was £122,500 (2022: £369,167). During 2023 the company received no further funds (2022: £nil). |
There is an unlimited guarantee in respect of bank borrowings between Sutton Park Holding Limited and Sutton Park Motor Company Limited in favour of Barclays Bank plc. At the reporting date Sutton Park Holdings Limited's borrowings in this respect amounted to £nil (2022: £975,575). |
23. | Related party disclosures |
2023 | 2022 |
£ | £ |
Purchases |
24. | Ultimate controlling party |
The ultimate controlling party during the year of review, and the previous year, was D J A Fulton by virtue of his 100% shareholding in the parent company Sutton Park Holdings Limited. |