Registered number:
For the Year Ended
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O C MOTOR REPAIR LIMITED
Company Information
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O C MOTOR REPAIR LIMITED
Contents
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O C MOTOR REPAIR LIMITED
Strategic Report
For the Year Ended 31 December 2023
The directors present their strategic report for the year ended 31 December 2023. The principal activity of the company during the year was the provision of motor repair services.
The results for the period and financial position of the company are shown in the financial statements.
The company strengthened its sales with £23.5m turnover in 2023, a 50% increase on the prior period. Most notably due to the expansion of its repair centre network in Scotland. The company exceeded its expected forecasted turnover for the current year. Despite inflationary pressures on the vehicle parts supply chain, cost of sales margin has been maintained at 53%, in line with revenue growth. Admin expenses have increased by 20% due to inflationary rises in overheads. The company strengthened its position with retained earnings of £4.95m (2022: £4.43m). There has been improvements in its current ratio increasing to 1.05 (2022: 1.03) and its return in capital employed to 20% in the current period. The company has strengthened its capital investment, with a 10% increase in tangible asset growth. Investments have been made to it's current fleet of trucks and it's environmental responsibilties through installation of solar panels. The results for the financial year are within board expectations. The directors have confidence in the continued investment in the business and future profitability that will see growth continue into the future. Given the straightforward nature of the business, the company’s directors are of the opinion that analysis of key performance indicators below gives an understanding of the development, performance, and position of the business.
The company is reliant on the work supplied by the group for a material amount of its turnover, posing a key risk. This has been managed by continually reviewing the management information reported on within the other companies. As further growth is forecast there is further risk to achieve the same level of growth to efficiently service the group. Investment in our staff and methods of operation paired with close co-ordination between the companies ensuring appropriate resources are allocated will ensure that the company is well positioned to meet the increasing demand from the group, and achieve the future targets of growth.
Profit and loss analysis (expressed as a percentage of sales):
2023 2022 Cost of sales 54% 52% Gross profit 46% 48% Administrative expenses 42% 52% Balance sheet analysis: Current ratio 1.05 1.03 Return on capital employed 20% -12%
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O C MOTOR REPAIR LIMITED
Strategic Report (continued)
For the Year Ended 31 December 2023
This report was approved by the board and signed on its behalf.
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O C MOTOR REPAIR LIMITED
Directors' Report
For the Year Ended 31 December 2023
The directors present their report and the financial statements for the year ended 31 December 2023.
The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Company's financial statements and then apply them consistently;
∙make judgments and accounting estimates that are reasonable and prudent;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 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.
The profit for the year, after taxation, amounted to £510,560 (2022 - loss £607,848).
The directors who served during the year were:
OC Motor Repair continues to seek additional repair centre locations in the United Kingdom to expand capacity and coverage to continue growth trajectories.
Management have identified an opportunity to expand into smart mobile repairs. This will reduce lead time on minor repairs and be more convenient for the customer providing a better all-round customer service experience.
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O C MOTOR REPAIR LIMITED
Directors' Report (continued)
For the Year Ended 31 December 2023
There have been no significant events affecting the Company since the year end.
The auditors, PKF Smith Cooper Audit 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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O C MOTOR REPAIR LIMITED
Independent Auditors' Report to the Members of O C Motor Repair Limited
We have audited the financial statements of O C Motor Repair Limited (the 'Company') for the year ended 31 December 2023, which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Cash Flows, the Statement of Changes in Equity and the related notes, including a summary of significant accounting 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
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.
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual 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.
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O C MOTOR REPAIR LIMITED
Independent Auditors' Report to the Members of O C Motor Repair Limited (continued)
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.
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O C MOTOR REPAIR LIMITED
Independent Auditors' Report to the Members of O C Motor Repair 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 Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Based on our understanding of the company and industry, we identify the key laws and regulations affecting the company. We identified that the principal risk of fraud or non-compliance with laws and regulations related to: • management bias in respect of accounting estimates and judgements made; • management override of control; • posting of unusual journals or transactions. We focussed on those areas that could give rise to a material misstatement in the company financial statements. Our procedures included, but were not limited to: • Enquiry of management and those charged with governance around actual and potential litigation and claims, including instances of non-compliance with laws and regulations and fraud; • Reviewing minutes of meetings of those charged with governance where available; • Reviewing legal expenditure in the year to identify instances of non-compliance with laws and regulations and fraud; • Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations; • Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias. In particular the valuation of debtors and estimations relating to revenue recognition and deferral. It is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.
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O C MOTOR REPAIR LIMITED
Independent Auditors' Report to the Members of O C Motor Repair 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 Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.
for and on behalf of
Statutory Auditors
2 Lace Market Square
NG1 1PB
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O C MOTOR REPAIR LIMITED
Statement of Comprehensive Income
For the Year Ended 31 December 2023
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O C MOTOR REPAIR LIMITED
Registered number: 06243389
Balance Sheet
As at
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 13 to 23 form part of these financial statements.
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O C MOTOR REPAIR LIMITED
Statement of Changes in Equity
For the Year Ended 31 December 2023
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O C MOTOR REPAIR LIMITED
Statement of Cash Flows
For the Year Ended 31 December 2023
Page 12
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O C MOTOR REPAIR LIMITED
Notes to the Financial Statements
For the Year Ended 31 December 2023
O C Motor Repair Limited is a company, limited by shares, registered in England and Wales. The company's registered number and office address can be found on the company information page.
The presentational currency of the financial statements is Pounds Sterling (£), which is the functional currency of the company. The financial statements have been rounded to the nearest £1.
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 preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).
The following principal accounting policies have been applied:
a) the amount of revenue can be measured reliably; b) it is probable that the economic benefits associated with the transaction will flow to the entity; c) stage of completion of the transaction at the end of the period can be measured reliably; and d) costs incurred for the transaction and costs to complete the transaction can be measured reliably. Invoices raised which do not meet the recognition criteria are recorded within creditors as deferred income, at the estimated value of realisation. Turnover excludes discounts, rebates, value added tax and other sales taxes. Turnover is wholly attributable to the rendering of services in pursuit of the principal activity of the company and arises solely in the United Kingdom. Grants of a revenue nature are recognised in the Statement of Comprehensive Income in the same period as the related expenditure.
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O C MOTOR REPAIR LIMITED
Notes to the Financial Statements
For the Year Ended 31 December 2023
2.Accounting policies (continued)
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O C MOTOR REPAIR LIMITED
Notes to the Financial Statements
For the Year Ended 31 December 2023
2.Accounting policies (continued)
Depreciation is provided on the following basis:
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. Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.
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O C MOTOR REPAIR LIMITED
Notes to the Financial Statements
For the Year Ended 31 December 2023
2.Accounting policies (continued)
The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below. Debtor valuation Bad debt provisions are estimated based on post year-end recoveries of similar debts. Deferred income Revenue is recognised and deferred income calculated based on estimated profit margins on sales as at the year end.
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O C MOTOR REPAIR LIMITED
Notes to the Financial Statements
For the Year Ended 31 December 2023
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O C MOTOR REPAIR LIMITED
Notes to the Financial Statements
For the Year Ended 31 December 2023
Page 18
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O C MOTOR REPAIR LIMITED
Notes to the Financial Statements
For the Year Ended 31 December 2023
Page 19
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O C MOTOR REPAIR LIMITED
Notes to the Financial Statements
For the Year Ended 31 December 2023
Page 20
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O C MOTOR REPAIR LIMITED
Notes to the Financial Statements
For the Year Ended 31 December 2023
Page 21
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O C MOTOR REPAIR LIMITED
Notes to the Financial Statements
For the Year Ended 31 December 2023
Page 22
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O C MOTOR REPAIR LIMITED
Notes to the Financial Statements
For the Year Ended 31 December 2023
Profit and loss account
In relation to the year ended 31 December 2022, a prior year adjustment has been made due to the Company historically declaring output VAT on the full sales value of used cars. The VAT margin scheme has now been retrospectively applied and this adjustment is reflected within the comparative figures.
As a result of the adjustment, Sales in 2022 has increased by £466,217, Other Debtors has increased by £1,063,602 and brought forward reserves has increased by £597,385.
The parent company as of 31 December 2023 is RSCPBR B Ltd, a company incorporated in England and Wales and with a registered office address of Saturn Firstpoint, Balby Carr Bank, Doncaster, England, DN4 5JQ. Consolidated accounts are not available for the current period, with the first period of consolidation to be prepared for the period ended 31 December 2024.
The controlling party is Mr J L Radford.
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