Registered Number:
ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
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CONTENTS
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COMPANY INFORMATION
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GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 30 APRIL 2024
The Director presents his Strategic Report together with the audited financial statements for the year ended 30 April 2024.
Gladwell Commercial Holdings Limited continues to be a holding company for the Group's investments in its subsidiary undertakings, investment property and the Group's freehold properties.
Waterhouse was the only subsidiary with any external trade and ceased operations during the year. At the period end the group had net assets of £1,996,176.
The following principal risks and uncertainties impact the business in the foreseeable future:
Business The sole remaining business activity of the group is the letting of its main investment property located in Chelmsford. Liquidity and cashflow The Group prepares financial forecasts to ensure it will meet its financial obligations as they fall due: at the period end the group had cash at bank of £1,512,647.
The financial key performance indicators for the Group were revenue and gross profit.
2024 2023 Revenue £318,182 £34,368,557 Gross profit £418,610 £2,453,635 Gross margin 131.56% 7.14% Operating costs £176,402 £1,375,905 Exceptional items £199,099 £291,977 Other operating income £92,920 £Nil Operating profit £136,029 £785,753 Operating margin 42.75% 2.23% Interest payable £30,701 £37,849 Profit before tax £136,246 £747,904 Cash at bank and in hand £1,512,647 £1,659,734 Net assets £1,996,176 £2,032,312 The table of Financial Key Performance Indicators for the Group demonstrates the very substantial reduction in business activity.
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GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
This report was approved by the Board on 20 September 2024 and signed on its behalf.
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DIRECTOR'S REPORT
FOR THE YEAR ENDED 30 APRIL 2024
The Director presents his report and the financial statements for the year ended 30 April 2024.
On 29 February 2024 the Company changed its name to GCH Associates Ltd.
The Director is responsible for preparing the Group Strategic Report, the Director's Report and the consolidated financial statements in accordance with applicable law and regulations.
Company law requires the Director to prepare financial statements for each financial year. Under that law the Director has 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 Director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the Company and the Group and of the profit or loss of the Group for that period.
In preparing these financial statements, the Director is required to:
∙select suitable accounting policies for the Group'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 Group will continue in business.
The Director is 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 the Group and to enable him to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The profit for the year, after taxation, amounted to £32,232 (2023 - £608,631).
During the period, the Company declared interim dividends amounting to £163,800 (16 months ended 31 December 2023 - £163,800). The Director does not recommend the payment of a final dividend (16 months ended 31 December 2023 - £Nil).
The Director who served during the year was:
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GCH ASSOCIATES LTD (FORMERLY GLADWELL COMMERCIAL HOLDINGS LIMITED)
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
Details of the Group's principal risks and uncertainties to which it is exposed are included in the Strategic Report.
There have been no significant events affecting the Group since 30 April 2024 to the date of this report.
On 28 March 2024 our auditor, SB Audit LLP, merged with Sumer Auditco Limited.
Accordingly SB Audit LLP formally resigned as the Company's auditor with the directors duly appointing Sumer Auditco Limited to fill the vacancy arising. The auditor, Sumer Auditco Limited, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the Board on
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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF GCH ASSOCIATES LTD (FORMERLY GLADWELL COMMERCIAL HOLDINGS LIMITED)
We have audited the financial statements of Gladwell Commercial Holdings Limited (the 'Parent Company') and its subsidiaries (the 'Group') for the year ended 30 April 2024, which comprise the Consolidated Statement of Comprehensive Income, the Consolidated and Company Balance Sheets, the Consolidated and Company Statement of Changes in Equity, the Consolidated Statement of Cash Flows and the related notes, 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).
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 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.
We draw your attention to the disclosures in note 18 of the financial statements. As described in this note, the Directors have not obtained an independent value of the Company’s investment property and have based the property valuation of £764,118 on the historic depreciated rate of the asset. Our opinion is not modified in respect of this matter.
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GCH ASSOCIATES LTD (FORMERLY GLADWELL COMMERCIAL HOLDINGS LIMITED)
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF GCH ASSOCIATES LTD (FORMERLY GLADWELL COMMERCIAL HOLDINGS LIMITED) (CONTINUED)
In auditing the financial statements, we have concluded that the Director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group's or the parent Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the Director with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the Annual Report other than the financial statements and our Auditor's Report thereon. The Director is responsible for the other information contained within the Annual Report. 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. 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.
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Group Strategic Report and the Director's Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Group Strategic Report and the Director's Report have been prepared in accordance with applicable legal requirements.
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GCH ASSOCIATES LTD (FORMERLY GLADWELL COMMERCIAL HOLDINGS LIMITED)
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF GCH ASSOCIATES LTD (FORMERLY GLADWELL COMMERCIAL HOLDINGS LIMITED) (CONTINUED)
In the light of the knowledge and understanding of the Group and the Parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Director's Report.
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GCH ASSOCIATES LTD (FORMERLY GLADWELL COMMERCIAL HOLDINGS LIMITED)
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF GCH ASSOCIATES LTD (FORMERLY GLADWELL COMMERCIAL HOLDINGS LIMITED) (CONTINUED)
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 Group 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:
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 experience and through discussions and enquiries of the Director and management. During the engagement team briefing, the outcomes of these discussions were shared with the team, as well as consideration as to where and how fraud may occur in the Group. The following laws and regulations were identified as being of significance to the Group: • Those laws and regulations considered to have a direct effect on the consolidated financial statements including UK financial reporting standards, UK Company Law and taxation legislation; and • Those laws and regulations considered to have an indirect effect on the financial statements including The Health & Safety Act 1974, vehicle inspection regulations, GDPR, anti-bribery and corruption, human rights and Employment law. Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised of: enquiries of management and those charged with governance as to whether the Group complies with such regulations; enquiries of management and those charged with governance concerning any actual or potential litigation or claims, inspection of relevant legal documentation, review of Board minutes, testing the appropriateness of journal entries and the performance of analytical review to identify any unexpected movements in account balances which may be indicative of fraud. There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the consolidated financial statements, the less likely we would become aware of it. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).
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 Auditor's Report.
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GCH ASSOCIATES LTD (FORMERLY GLADWELL COMMERCIAL HOLDINGS LIMITED)
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF GCH ASSOCIATES LTD (FORMERLY GLADWELL COMMERCIAL HOLDINGS LIMITED) (CONTINUED)
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.
for and on behalf of
Statutory Auditor
Fitzroy House
Crown Street
Suffolk
IP1 3LG
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CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 APRIL 2024
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CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
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CONSOLIDATED BALANCE SHEET
AS AT 30 APRIL 2024
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CONSOLIDATED BALANCE SHEET (CONTINUED)
AS AT 30 APRIL 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 20 September 2024.
The notes on pages 22 to 47 form part of these financial statements.
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COMPANY BALANCE SHEET
AS AT 30 APRIL 2024
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COMPANY BALANCE SHEET (CONTINUED)
AS AT 30 APRIL 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf on
The notes on pages 22 to 47 form part of these financial statements.
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CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2024
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COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2024
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CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 APRIL 2024
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CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
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CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 30 APRIL 2024
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
GCH Associates Ltd (the "Company") is a private company limited by shares incorporated and domiciled in England and Wales. The address of its registered office is 2 Water Lane, Bures, Suffolk CO8 5DE.
The Company's principal activities during the year were that of an investment holding company, holding of investment property. Following the sale of its trade and assets within on the subsidiaries, the group ceased operating as a franchised dealer for Volvo Sales and Aftersales and Mercedes-Benz Aftersales: used car sales are primarily associated with the Volvo franchise. The Group's principal acitivity going forward is the management of investment property.
2.Accounting policies
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 Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements.
The Parent Company is included in the consolidated financial statements and has taken advantage of the exemption available to qualifying entities under FRS 102 from presenting its own Statement of Cash Flows in these financial statements.
The discontinued operations reflect the final income and costs of discontinuing the car sales and aftersales businesses. The continuing operations reflect income and costs of the investment property business.
The consolidated financial statements present the results of the Company and its own subsidiaries (the "Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance Sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Comprehensive Income from the date on which control is obtained. They are deconsolidated from the date control ceases. In accordance with the transitional exemption available in FRS 102, the Group has chosen not to retrospectively apply the standard to business combinations that occurred before the date of transition to FRS 102, being 1 January 2015.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
2.Accounting policies (continued)
The Director has prepared cashflow forecasts for the foreseeable future, being a period of at least 12 months from the date of approval of these financial statements, which indicate that the Group and the Company has sufficient resources available to meet its liabilities as they fall due and to continue to trade in its current form. Accordingly, the Director considers that it is appropriate to prepare the financial statements on a going concern basis.
Revenue from vehicle servicing and repairs is recognised when work has been performed and the Group becomes entitled to the income. Revenue in the form of rent receivable is recognised on a straight-line basis over the term of the leases to which it relates.
The Group operates a defined contribution pension scheme for its employees. A defined contribution pension scheme is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group 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 other creditors as a liability in the Balance Sheet. The assets of the plan are held separately from the Group in independently administered funds.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
2.Accounting policies (continued)
At each reporting date the Group assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
2.Accounting policies (continued)
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:
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.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
2.Accounting policies (continued)
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. The Group purchased vehicles under a consignment arrangement under which the risks and rewards of ownership do not pass to the Group until the vehicles are delivered to its premises. Accordingly, neither the stock nor the corresponding liabilities are recognised in respect of any vehicles which have been consigned to the company but not received at the year end. Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
2.Accounting policies (continued)
The Group has elected to apply the provisions of Section 11 “Basic Financial Instruments” 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, with 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
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 Group's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.
Impairment of financial assets
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.
Financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instruments any contract that evidences a residual interest in the assets of the Group after the deduction of all its liabilities.
Basic financial liabilities, which include trade and other payables, bank loans, other loans and loans due to fellow group companies are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument 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.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
2.Accounting policies (continued)
Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.
Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.
Derecognition of financial assets
Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Group transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Group will continue to recognise the value of the portion of the risks and rewards retained.
Derecognition of financial liabilities
Financial liabilities are derecognised when the Group's contractual obligations expire or are discharged or cancelled.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
Useful economic lives of tangible fixed assets The annual depreciation charge for tangible fixed assets is sensitive to changes in the useful economic lives and residual values of assets. The economic lives and residual values are re-assessed annually. They are revised when necessary to reflect current estimates, based on recoverability, expected economic utilisation of the asset and the physical condition of the assets. Valuation of stocks Until 28 April 2023 the Group sold vehicles and (as part of its servicing and repairs department) vehicle parts. It was therefore subject to changing consumer demands and manufacturer requirements. As a result it is necessary to consider the recoverability of the cost of stock and the associated provisioning required. When calculating the stock provision, management considers the nature and condition of the stock, as well as applying assumptions around anticipated saleability of vehicles and parts, and future usage of them. Lease provisions Certain of the Group's property leases contain clauses requiring reinstatement and repair of premises upon termination. The Director has estimated the present value of the costs to meet this requirement and a provision has been included in the financial statements. The Director keeps the condition and cost of reinstatement under review with the aim of maintaining their best estimate at each period end. The onerous lease provision relates to the estimated costs that will be incurred in respect of a lease in excess of expected cash flows. The provision is the estimated present value of the rent and rates that will be incurred between vacant possession and expiration of the lease agreement. Investment property The freehold investment property is valued at the Director's estimate of fair value. The valuation of property is inherently subjective due to the estimation and judgement involved, as such the amount achieved in a third party sale could differ to the amount disclosed in the financial statements
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
13.Taxation (continued)
In the Spring Budget 2021 the UK Government announced that the rate of UK Corporation tax would increase to 25% from 1 April 2023 with an introduction of a small profits rate of 19% at the same point in time. These changes were substantively enacted into law when the Finance Act 2021 was given Royal Assent on 10 June 2021.
Accordingly deferred tax assets and liabilities are stated at 25% (30 April 2023 - 25%).
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements. The profit after tax of the Parent Company for the year/period was £
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
16.Tangible fixed assets (continued)
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
Direct subsidiary undertaking (continued)
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
The 2024 valuation was made by Mr R J Butler, a Director who is not a professionally qualified valuer, on an open market value for existing use basis.
The restatement at 1 May 2023 reflects the reclassification of freehold property as investment property (see note 27).
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
- 42 -
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
- 44 -
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
- 45 -
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
Capital redemption reserve
Profit and loss account
During the year, it was identified that accruals in previous periods had been materially overstated in respect of overheads. Accordingly the comparatives have been restated resulting in a decrease to overheads and accruals of £22,119, resulting in a net increase to profit of £22,119. Equity brought forward as at 1 May 2023 has been adjusted accordingly.
Furthermore, following a review of the arrangements and recognition criteria as set out within FRS 102 in respect of the Freehold property, it was determined that the freehold property held pertains to investment property as following the sale of trade and assets to Lookers Motor Group Limited, the property was held to obtain income under an operating lease arrangement. Accordingly, the comparatives have been restated to transfer freehold property costs of £1,089,454 and freehold property depreciation of £475,336, resulting in an increase of investment property of £614,118. There is no impact on equity brought forward as at 1 May 2023 as a result.
The Group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Group in an independently administered fund. The pension cost charge for the period represents contributions payable by the Group to the fund and amounted to £148,519 (16 months ended 30 April 2023 - £164,894). Contributions amounting to £Nil (2023 - £13,031) were payable to the fund at the balance sheet date and are included in Other Creditors.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
The Group's ultimate controlling parties are Mr R J Butler, Mrs A Wood and Mr H Butler by virtue of their shareholding in the Company.
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