The directors present the strategic report for the period ended 31 March 2023.
The principal activity of Autoguard is the provision of administration services, repair request and claims handling, and the management of all products, ensuring all services and support are to the high standard expected by our customers. Our in-house administration and claims teams ensure services are provided in to clear and auditable standard.
The group consists of:
Autoguard Group Limited - a non - trading holding company.
Autoguard Warranties Limited - operating as a provider and administrator of motor vehicle warranties and service contracts.
Warranty Administration Services Limited - operating as a motor vehicle administrator
Sentience Automotive Solutions Ltd - operating as a consultancy service provider.
Business performance
The group has experienced an excellent year of business performance. The group has demonstrated consistent growth in turnover during the financial year 2022/23 of 15%. Net profit has reduced a little this year as it has been a year of investment for the group. We have doubled the size of our offices, due to expansion of our workforce. We have seen our B2C team andour B2B sales team increase. We have heavily invested in our international business, cementing some strong relationships overseas, for which will see growth in this sector in future years of the business.
Although the used car market in the UK remained challenging, our online B2C business, through our Best4 brand at Autoguard Warranties Ltd, grew significantly. We feel this growth reflects our view that consumers are keeping their cars for longer and that points to an increasing demand for warranties and service and maintenance plans.
The group has also seen significant growth in the international automobile market having won several large contracts with well know Global OEM brands across over 25 countries. With the right investment, we expect continued growth in this area of the business. Internationally, Autoguard have partnered with Global insurance companies to underwrite the risks.
Autoguard continues in its strategy of investment in training, marketing and technology, as well as looking for new opportunities worldwide. This will enable the company to continue its growth. In line with this, our employee numbers increased from 47 to 63 during the year enforcing our commitment to grow our workforce team to ensure continued success for the future
Change in policy for recognition of revenue
Whilst we have seen good growth in 2022 and 2023, our policy to recognise revenue has changed and the 2022 comparative accounts were restated in Autoguard Warranties Ltd to reflect this change. £3m of revenue has been deferred and shows as a liability on the balance sheet. This will be recognised as turnover in future years and has affected our balance sheet by this value. This does not affect the companies cashflow, which remains in a strong and stable position.
The directors consider the principal risks and uncertainties facing the business to be:
Credit Risk
Credit risk is the risk that a customer or provider fails to perform its financial obligations.
The group's principal financial assets are bank balances, trade and debtors. The group's exposure to credit risk is mitigated by the large numbers of individual motor dealers in their network. In addition, the financial position of the group is continually reviewed to limit any risk.
Liquidity Risk
Liquidity risk is the risk that the group is unable to meets its financial obligations as they fall due.
The group's exposure to liquidity risk is mitigated by the regular review of cash forecasts, actual cash flows and ensuring adequate cash reserves. There is also regular analysis of loss ratios to ensure adequate funds remain in place for future warranty claims.
Commercial Risk
Commercial risks include economic conditions and competition factors that may impact the group's financial performance.
The group regularly reviews and, where appropriate, updates its vehicle warranty plan terms to ensure they meet changing requirements of customers and their vehicles. This includes competitive pricing and reviews of products. The group is fully aware of economic conditions and regularly reviews key financial performance indicators to identify any emerging trends.
The directors use the following key financial performance measures to monitor performance:
2023 2022
Turnover £12,566,607 £10,954,978
Profit before tax £1,224,501 £1,577,614
The directors are confident that the group and the company will continue to maintain and improve performance through its leading warranty plans and service and maintenance plans, strong relationships with motor vehicle dealers and continued investment in its people. They will continue to seek and explore new opportunities to maintain and increase its presence in the motor warranty and service contract sector.
On behalf of the board
The results for the period are set out on page 12.
Ordinary dividends were paid amounting to £930,130. The directors do not recommend payment of a further dividend.
The directors who held office during the period and up to the date of signature of the financial statements were as follows:
Verallo Advisory LLP were appointed as auditor to the group and in accordance with section 485 of the Companies Act 2006
Qualified opinion
We have audited the financial statements of Autoguard Group Limited for the year ended 31 March 2023 which comprise the Group Statement of comprehensive income, the Group and Company balance sheet, the Group and Company Statement of Changes in Equity, the Group and Company statement of cash flows 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 FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
Basis for qualified opinion
We were not appointed as auditor of the group until October 2023, as a result of the live systems in place, we were unable to obtain sufficient audit evidence over the historic spreading of the revenue for the periods prior to 22 March 2022. The prior year adjustments are based on the evidence available, but are not considered to be complete. We were unable to satisfy ourselves by alternative means concerning the total revenue split between years, up until 22 March 2022, and therefore the completeness of the deferred income balance at 22 March 2022 and consequently 31 March 2023.
Consequently, we were unable to determine whether any adjustment to this amount was necessary.
It should be noted that the revenue spreading was required in accordance with the clients revised revenue policy.
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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent 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 qualified opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
The directors are responsible for the other information contained within the annual report. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report 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 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.
As described in the basis for qualified opinion section of our report we were unable to satisfy ourselves concerning the revenue split and therefore the deferred revenue prior to 22 March 2022. We have concluded that where the other information refers to the revenue, it may be materially misstated for the same reason.
Opinions on other matters prescribed by the Companies Act 2006
We were not appointed as auditor of the group and parent company until October 2023, as a result of the live systems in place, we were unable to obtain sufficient audit evidence over the historic spreading of the revenue for the periods prior to 22 March 2022. The prior year adjustments are based on the evidence available, but are not considered to be complete. We were unable to satisfy ourselves by alternative means concerning the total revenue split up until 22 March 2022, and therefore the completeness of the deferred income balance at 22 March 2022 and 31 March 2023.
Consequently, we were unable to determine whether any adjustment to this amount was necessary. In addition, were any adjustment to the revenue required, the strategic report would also need to be amended.
Except for the possible effects of the matter described in the basis for qualified opinion section of our report, in our opinion, based on the work undertaken in the course of our audit:
the information given in the Strategic Report and Director's Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic Report and Directors’ Report have been prepared in accordance with applicable legal requirements.
Except for the matter described in the basis for qualified opinion section of our report, in the light of the knowledge and understanding of the group and parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors’ Report.
Arising solely from the limitation of scope of our work relating to smoothing of revenue, referred to above:
we have not obtained all the information and explanations that we considered necessary for the purpose of our audit; and
we were unable to determine whether adequate accounting records have been kept.
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:
returns adequate for our audit have not been received from branches not visited by us; or
the parent company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors remuneration specified by law are not made.
As explained more fully in the Director's Responsibilities Statement, 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 group and parent company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the parent company or to cease operations, or have no realistic alternative but to do so.
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 auditor’s 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. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Extent to which the audit was considered capable of detecting irregularities, including fraud
The objectives of our audit, in respect to fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses; and to respond appropriately to fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and its management. Our approach was as follows
We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience, and discussed with the directors and other management the policies and procedures regarding compliance with laws and regulations; :
We considered the legal and regulatory frameworks directly applicable to the financial statements reporting framework (FRS102 and the Companies Act 2006) and the relevant tax compliance regulations in the UK;
We considered the nature of the industry, the control environment and business performance, including the key drivers for management’s remuneration;
We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit;
We considered the procedures and controls that the group and parent company has established to address risks identified, or that otherwise prevent, deter and detect fraud; and how senior management monitors those programmes and controls.
Auditor's response to risks identified
Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Where the risk was considered to be higher, we performed audit procedures to address each identified fraud risk. These procedures included: testing manual journals; reviewing the financial statement disclosures and testing to supporting documentation; performing analytical procedures; and enquiring of management, and were designed to provide reasonable assurance that the financial statements were free from fraud or error.
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/Our-Work/Audit/Audit-and-assurance/Standards-and-guidance/Standards-and-guidance-for-auditors/Auditors-responsibilities-for-audit/Description-of-auditors-responsibilities-for-audit.aspx. This description forms part of our auditor’s report.
Other matters
The prior year Autoguard Group Limited balances to 22 March 2022 were unaudited.
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 an auditor's 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 members as a body, for our audit work, for this report, or for the opinions we have formed.
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £930,130 (2022 - £0 profit).
Autoguard Group Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Building 5, Archipelago Office Park, Lyon Way, Camberley, Surrey, United Kingdom, GU16 7ER.
The group consists of Autoguard Group Limited and all of its subsidiaries, which it acquired on 22 March 2022, as part of a group reorganisation. Ownership of the group remained the same pre and post re-organistion.
The period end has been changed to 31 December resulting in this being a 12 month and 9 day period. The prior year figures cover 4 months and 5 days and as such, cannot be considered to be entirely comparable.
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
As permitted by s408 of the Companies Act 2006, the company has chosen not to present its own profit and loss account and related notes. The company’s profit for the period was £930,130.
In preparing the financial statements of the parent company, advantage has been taken of the following disclosure exemptions available in FRS 102:
Only one reconciliation of the number of shares outstanding at the beginning and end of the period has been presented as the reconciliations for the Group and the Parent Company would be identical;
No cash flow statement has been presented for the Parent Company;
Disclosures in respect of the parent company's financial instruments have not been presented as equivalent disclosures have been provided in respect of the Group as a whole; and
No disclosure has been given for the aggregate remuneration of the key management personnel of the parent company as their remuneration is included in the totals for the Group as a whole.
The consolidated group financial statements consist of the financial statements of the parent company Autoguard Group Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.
All financial statements are made up to 31 March 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.
Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.
Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.
If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.
Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.
At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
In reaching this conclusion, the directors have specifically considered the provision of regulated and non-regulated income, within the group and have sought guidance to ensure that the services provided are in accordance with the FCA, to whom the trading entities report on a regular basis. The directors are confident in their application of the guidance, but should this be further clarified or expanded, there is potential for this to impact the business. The directors continue to review the latest guidance.
Turnover for the group represents regulated income, non-regulated service contracts, admin services and recovery and breakdown services, all are excluding Value Added Tax.
Regulated policies
The group acts as agent to all insured transactions. The group recognises the turnover in line with the cost to the business on inception, the remaining commission is deferred over the term of the policy to reflect the Group’s obligation to fulfil claims handling.
Non-Regulated service contracts
Turnover from non regulated service contracts is recognised in line with the cost to the business on inception, the remaining turnover is deferred to reflect the Group’s obligation to fulfil claims handling. The deferred income is released over the term of the agreement.
Admin Services
Turnover from non-regulated admin services is recognised in line with cost, the remaining turnover is deferred and released over the term of the contract. Turnover is deferred to reflect the Group’s obligation to fulfil administration services for our dealer partners.
Recovery and Breakdown
Turnover from recovery and breakdown services is recognised in line with cost, the remaining turnover is deferred over the length of the contract in order to meet the Group’s obligations.
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.
Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.
In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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. Financial assets classified as receivable within one year are not amortised.
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.
The tax expense represents the sum of the tax currently payable and deferred tax.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss
In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Depreciation
Fixed assets are depreciated over the course of their useful economic life. In order to calculate the depreciation charge, judgements are required on the length of the likely useful life and the likely proceeds, if any, of the asset if sold at the end of its life.
Investment and Goodwill impairment
The investment in subsidiary companies and the goodwill arising on consolidation are reviewed on an annual basis by the directors for impairment, and an adjustment made through the profit and loss, if required. The impairment is based on the review of the costs generating unit of the future cashflows of the investments.
Deferred Income and warranty provisions
The directors understand that they need to recognise turnover over the period of the contract, taking into
account contract start dates and length of contract. The initial non regulated revenue from a service contract
is recognised to match the estimated costs and the remaining revenue deferred and released over the terms
of the contract. The estimated costs are calculated based on an average cost of a non regulated service
contract, any variance is released on an annual basis to the profit and loss. The commission received from
our regulated activity is recognised over the terms of the contract. Income is deferred into the correct
accounting year which enables the Group to fulfil its obligations, primarily claims handling, to it’s dealer
partners for the life of the contract.
The average monthly number of persons (including directors) employed by the group and company during the period was:
Their aggregate remuneration comprised:
Investment income includes the following:
The actual charge for the period can be reconciled to the expected charge for the period based on the profit or loss and the standard rate of tax as follows:
The assets held under purchase contracts were disposed of during the year ended 22 March 2022.
Details of the company's subsidiaries at 31 March 2023 are as follows:
Note 1
The parent company has given a guarantee of all the outstanding liabilities to which the subsidiary is subject at the end of the financial year until they are satisfied in full. The subsidiary is exempt from the requirements of the Act relating to the audit of individual accounts by virtue of s479A.
On 22 March 2022, Autoguard Group Limited, acquired 100% of the Autoguard Warranties Limited group, via a share for share exchange.
The provision for liabilities relates to a warranty provision, based upon historic data over anticipated claims.
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
Contingent liability
A VAT inspection commenced in 2022 and has resulted in a liability owed to HMRC of £112,000 due to a
change in policy. This has been included in these financial statements.
At the date of signing this report the investigation remains ongoing, no provision has been made in these
financial statements for the continued review, as the conclusions relate to industry wide regulation, as
opposed to this entity alone. The possible financial impact to the company cannot be reliably measured at
this time.
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
During the period there were transactions with Warranty Administration Services Limited, a UK registered company in which the group owns 80% of the issued share capital.
During the period the group provided services to Warrant Administration Services Limited totalling £61,716 (2022: £61,157)
The amount due from Warranty Administration Services Limited at the balance sheet date is £nil (2022: £nil),
Dividends totalling £699,862 (2022 - £554,742) were paid in the period in respect of shares held by the company's directors.
At the start of the year, one of the directors owed the company £251,642. During the year, repayments were made totalling £19,054 and additional drawings made amounted to £10,000. Interest amounting to £4,993 was charged on the balance throughout the year. At the year end, the director owed the company £247,581. This amount is included in other debtors.
At the start of the year, a second director owed the company £63,821. Repayments were made totalling £10,375. Interest amounting to £1,181 was charged on the balance throughout the year. At the year end, the director owed the company £54,627. This amount is included in other debtors.
Two companies under the control of the same director charged Autoguard Warranties Limited for services provided. The total amount charged by the two companies in the period are £259,718 (2022 - £257,182). No amounts were owed at the end of the accounting periods.
On 22 March 2022, Autoguard Group Limited, acquired 100% of the Autoguard Warranties Limited group, via a share for share exchange, this was accounted for using merger accounting rules. The comparative for the prior year represent the group as if it had always existed
On 7 June 2023, 36 £1 ordinary shares in Autoguard Group Limited were cancelled, for a total value of £1,016,932.
The directors identified that the prior year trading company financial statements of Autoguard Warranties Limited needed to be adjusted for deferred income. Within these financial statements the directors have included changes to the accounting policy, adjusting the balances. In respect of the financial statements for the year ended 31 March 2023, deferred income has been restated to increase by £3,042,521.
Prior year group financial statements were not prepared and therefore there is no restatement to previously reported group figures, the impact on the Autoguard Warranties Limited financial statements and therefore the impact that would have been observed on the group is as follows: