Company Registration No. 13746196 (England and Wales)
AUTOGUARD GROUP LIMITED
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE PERIOD 22 MARCH 2022 to 31 MARCH 2023
AUTOGUARD GROUP LIMITED
CONTENTS
Page
Company information
1
Strategic report
2 - 4
Directors' report
5 - 6
Independent auditor's report
7 - 11
Group statement of comprehensive income
12
Group balance sheet
13 - 14
Company balance sheet
15
Group statement of changes in equity
16
Company statement of changes in equity
17
Group statement of cash flows
18
Company statement of cash flows
19
Notes to the financial statements
20 - 43
AUTOGUARD GROUP LIMITED
COMPANY INFORMATION
- 1 -
Directors
Mr R J Dockerill
Mr A H May-Khalil
Company number
13746196
Registered office
Building 5 Archipelago Office Park
Lyon Way
Frimley
Camberley
Surrey
England
GU16 7ER
Auditor
Verallo Advisory LLP
Century House
Wargrave Road
Henley-on-Thames
Oxfordshire
RG9 2LT
AUTOGUARD GROUP LIMITED
STRATEGIC REPORT
FOR THE PERIOD ENDED 31 MARCH 2023
- 2 -

The directors present the strategic report for the period ended 31 March 2023.

Fair review of the business

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:

 

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.

 

AUTOGUARD GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
- 3 -
Principal risks and uncertainties

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.

Key performance indicators

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.

AUTOGUARD GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
- 4 -

On behalf of the board

Mr R J Dockerill
Director
30 September 2024
AUTOGUARD GROUP LIMITED
DIRECTORS' REPORT
FOR THE PERIOD ENDED 31 MARCH 2023
- 5 -
The directors present their annual report and financial statements for the period 22 March 2022 to 31 March 2023.
Principal activities

The principal activity of the company continued to be that of a holding company.

 

The principal activity of the group is detailed on page 2.

Results and dividends

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.

Directors

The directors who held office during the period and up to the date of signature of the financial statements were as follows:

Mr R J Dockerill
Mr A H May-Khalil
Mr D L Robinson
(Resigned 1 April 2024)
Auditor

Verallo Advisory LLP were appointed as auditor to the group and in accordance with section 485 of the Companies Act 2006

AUTOGUARD GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
- 6 -
Statement of directors' responsibilities

The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable laws and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

On behalf of the board
Mr R J Dockerill
Director
30 September 2024
AUTOGUARD GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF AUTOGUARD GROUP LIMITED
- 7 -

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).

In our opinion, except for the possible effects of the matter described in the basis for qualified opinion section of our report, the financial statements:

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.

AUTOGUARD GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF AUTOGUARD GROUP LIMITED
- 8 -

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:

 

AUTOGUARD GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF AUTOGUARD GROUP LIMITED
- 9 -
Matters on which we are required to report by exception

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 nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

 

Responsibilities of directors

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.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an 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.

AUTOGUARD GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF AUTOGUARD GROUP LIMITED
- 10 -

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

 

 

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.

AUTOGUARD GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF AUTOGUARD GROUP LIMITED
- 11 -

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.

Michelle Hewitt-Dutton (Senior Statutory Auditor)
For and on behalf of Verallo Advisory LLP
Statutory Auditor
30 September 2024
Office: Henley-on-Thames
AUTOGUARD GROUP LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 31 MARCH 2023
- 12 -
Period
Period
ended
ended
31 March
21 March
2023
2022
as restated
Notes
£
£
Turnover
3
12,566,607
10,954,978
Cost of sales
(7,795,620)
(7,014,814)
Gross profit
4,770,987
3,940,164
Administrative expenses
(3,642,089)
(2,370,133)
Other operating income
78,585
-
Operating profit
4
1,207,483
1,570,031
Interest receivable and similar income
7
17,018
21,701
Interest payable and similar expenses
8
-
0
(14,118)
Profit before taxation
1,224,501
1,577,614
Tax on profit
9
(233,658)
(72,534)
Profit for the financial period
990,843
1,505,080
Profit for the financial period is attributable to:
- Owners of the parent company
943,644
1,451,022
- Non-controlling interests
47,199
54,058
990,843
1,505,080
Total comprehensive income for the period is attributable to:
- Owners of the parent company
943,644
1,451,022
- Non-controlling interests
47,199
54,058
990,843
1,505,080
AUTOGUARD GROUP LIMITED
GROUP BALANCE SHEET
AS AT 31 MARCH 2023
31 March 2023
- 13 -
2023
2022
as restated
Notes
£
£
£
£
Fixed assets
Goodwill
11
962,224
1,073,379
Other intangible assets
11
253,142
139,219
Total intangible assets
1,215,366
1,212,598
Tangible assets
12
174,734
157,903
1,390,100
1,370,501
Current assets
Stocks
15
52,998
83,253
Debtors
16
2,655,258
2,320,645
Investments
17
750,000
-
0
Cash at bank and in hand
1,991,763
2,268,905
5,450,019
4,672,803
Creditors: amounts falling due within one year
18
(4,599,887)
(3,813,235)
Net current assets
850,132
859,568
Total assets less current liabilities
2,240,232
2,230,069
Creditors: amounts falling due after more than one year
19
(992,489)
(1,013,134)
Provisions for liabilities
Provisions
20
1,493,932
1,498,057
Deferred tax liability
21
25,767
41,547
(1,519,699)
(1,539,604)
Net liabilities
(271,956)
(322,669)
AUTOGUARD GROUP LIMITED
GROUP BALANCE SHEET (CONTINUED)
AS AT 31 MARCH 2023
31 March 2023
2023
2022
as restated
Notes
£
£
£
£
- 14 -
Capital and reserves
Called up share capital
23
188
188
Profit and loss reserves
(353,742)
(367,256)
Equity attributable to owners of the parent company
(353,554)
(367,068)
Non-controlling interests
81,598
44,399
(271,956)
(322,669)
The financial statements were approved by the board of directors and authorised for issue on 30 September 2024 and are signed on its behalf by:
30 September 2024
Mr R J Dockerill
Director
Company registration number 13746196 (England and Wales)
AUTOGUARD GROUP LIMITED
COMPANY BALANCE SHEET
AS AT 31 MARCH 2023
31 March 2023
- 15 -
2023
2022
as restated
Notes
£
£
£
£
Fixed assets
Investments
13
188
188
Capital and reserves
Called up share capital
23
188
188

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).

The financial statements were approved by the board of directors and authorised for issue on 30 September 2024 and are signed on its behalf by:
30 September 2024
Mr R J Dockerill
Director
Company registration number 13746196 (England and Wales)
AUTOGUARD GROUP LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 MARCH 2023
- 16 -
Share capital
Profit and loss reserves
Total controlling interest
Non-controlling interest
Total
Notes
£
£
£
£
£
Balance at 01 April 2021
188
(1,109,368)
(1,109,180)
6,030
(1,103,150)
Period ended 21 March 2022:
Profit and total comprehensive income for the period
-
1,451,022
1,451,022
54,058
1,505,080
Dividends
10
-
(708,910)
(708,910)
(15,689)
(724,599)
Balance at 21 March 2022
188
(367,256)
(367,068)
44,399
(322,669)
Period ended 31 March 2023:
Profit and total comprehensive income for the period
-
943,644
943,644
47,199
990,843
Dividends
10
-
(930,130)
(930,130)
(10,000)
(940,130)
Balance at 31 March 2023
188
(353,742)
(353,554)
81,598
(271,956)
AUTOGUARD GROUP LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 MARCH 2023
- 17 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 01 March 2021
188
-
0
188
Period ended 21 March 2022:
Profit and total comprehensive income for the period
-
708,910
708,910
Dividends
10
-
(708,910)
(708,910)
Balance at 21 March 2022
188
-
0
188
Period ended 31 March 2023:
Profit and total comprehensive income for the period
-
930,130
930,130
Dividends
10
-
(930,130)
(930,130)
Balance at 31 March 2023
188
-
0
188
AUTOGUARD GROUP LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 31 MARCH 2023
- 18 -
2023
2022
as restated
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
30
1,927,858
5,308,914
Interest paid
-
0
(14,118)
Income taxes paid
(307,221)
(479,315)
Net cash inflow from operating activities
1,620,637
4,815,481
Investing activities
Purchase of intangible assets
(162,721)
(1,111,543)
Proceeds from disposal of intangibles
(1)
(189,197)
Purchase of tangible fixed assets
(66,925)
(665,367)
Proceeds from disposal of tangible fixed assets
(2,713)
432,142
Proceeds from disposal of investments
(750,000)
-
Repayment of loans
13,255
(315,463)
Interest received
7,018
6,012
Dividends received
10,000
15,689
Net cash used in investing activities
(952,087)
(1,827,727)
Financing activities
Proceeds from issue of shares
-
188
Payment of finance leases obligations
(5,562)
5,562
Dividends paid to equity shareholders
(930,130)
(708,910)
Dividends paid to non-controlling interests
(10,000)
(15,689)
Net cash used in financing activities
(945,692)
(718,849)
Net (decrease)/increase in cash and cash equivalents
(277,142)
2,268,905
Cash and cash equivalents at beginning of period
2,268,905
-
0
Cash and cash equivalents at end of period
1,991,763
2,268,905
AUTOGUARD GROUP LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 31 MARCH 2023
- 19 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Investing activities
Dividends received
930,130
708,910
Net cash generated from investing activities
930,130
708,910
Financing activities
Dividends paid to equity shareholders
(930,130)
(708,910)
Net cash used in financing activities
(930,130)
(708,910)
Net increase in cash and cash equivalents
-
-
Cash and cash equivalents at beginning of period
-
0
-
0
Cash and cash equivalents at end of period
-
0
-
0
AUTOGUARD GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2023
- 20 -
1
Accounting policies
Company information

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.

1.1
Reporting period

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.

1.2
Accounting convention

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.

1.3
Parent company disclosure exemptions

In preparing the financial statements of the parent company, advantage has been taken of the following disclosure exemptions available in FRS 102:

 

AUTOGUARD GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 21 -
1.4
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

1.5
Basis of consolidation

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.

AUTOGUARD GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 22 -

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.

1.6
Going concern

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.

1.7
Turnover

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.

AUTOGUARD GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 23 -
1.8
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is ten years.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.9
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

IT Developm'nt
7 years straight line
1.10
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Leasehold improv'nts
5 years straight line
Fixtures and fittings
4 or 5 years straight line
Computer equipment
4 or 7 years straight line
Motor vehicles
5 years straight line

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.

AUTOGUARD GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 24 -
1.11
Fixed asset investments

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.

1.12
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.13
Cash at bank and in hand

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

 

Included in the cash at bank figure at year end is monies held on behalf of clients totaling £104,013 (2022 - £224,210).

1.14
Financial instruments

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.

AUTOGUARD GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 25 -
Basic financial assets

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.

Classification of financial liabilities

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

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.

1.15
Equity instruments

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.

1.16
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current 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.

AUTOGUARD GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 26 -
Deferred tax

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.

1.17
Provisions

Provisions are recognised when the group has a legal or constructive present obligation as a result of a past event, it is probable that the group will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

 

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

1.18
Employee benefits

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.

1.19
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

AUTOGUARD GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 27 -
1.20
Leases

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.

1.21
Foreign exchange

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

AUTOGUARD GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
- 28 -
2
Judgements and key sources of estimation uncertainty

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.

 

3
Turnover and other revenue
2023
2022
as restated
£
£
Turnover analysed by class of business
Regulated
486,336
405,675
Non regulated
9,847,933
9,103,180
Recovery and breakdown
1,371,037
1,010,691
Administration
802,559
407,223
Training
47,755
8,861
Other
10,987
19,348
12,566,607
10,954,978
AUTOGUARD GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
3
Turnover and other revenue
(Continued)
- 29 -
2023
2022
as restated
£
£
Turnover analysed by geographical market
United Kingdom
12,555,685
10,935,685
Rest of the World
10,922
19,293
12,566,607
10,954,978
2023
2022
£
£
Other revenue
Interest income
7,018
6,012
Underwriting profit release
78,585
-
Dividends received
10,000
15,689
4
Operating profit
2023
2022
£
£
Operating profit for the period is stated after charging/(crediting):
Exchange (gains)/losses
(3,859)
557
Fees payable to the company's auditor for the audit of the group's financial statements
23,000
Depreciation of owned tangible fixed assets
51,851
50,492
Depreciation of tangible fixed assets held under finance leases
-
32,079
Loss/(profit) on disposal of tangible fixed assets
956
(6,427)
Amortisation of intangible assets
156,394
88,142
Loss on disposal of intangible assets
3,560
-
Operating lease charges
153,123
74,000
AUTOGUARD GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
- 30 -
5
Employees

The average monthly number of persons (including directors) employed by the group and company during the period was:

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Directors
5
6
3
3
Administration
14
11
-
-
Claims
10
8
-
-
IT
2
1
-
-
Finance
2
2
-
-
Risk compliance
1
1
-
-
Sales and marketing
28
17
-
-
Total
62
46
3
3

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
1,729,110
1,307,001
-
0
-
0
Social security costs
214,143
142,828
-
-
Pension costs
41,145
28,529
-
0
-
0
1,984,398
1,478,358
-
0
-
0
6
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
63,485
32,673
AUTOGUARD GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
- 31 -
7
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
844
23
Other interest income
6,174
5,989
Total interest revenue
7,018
6,012
Income from fixed asset investments
Income from shares in group undertakings
10,000
15,689
Total income
17,018
21,701

Investment income includes the following:

Interest on financial assets not measured at fair value through profit or loss
844
23
8
Interest payable and similar expenses
2023
2022
£
£
Other finance costs:
Interest on finance leases and hire purchase contracts
-
14,118
9
Taxation
2023
2022
as restated
£
£
Current tax
UK corporation tax on profits for the current period
247,348
260,288
Adjustments in respect of prior periods
-
0
(198,641)
Total current tax
247,348
61,647
Deferred tax
Origination and reversal of timing differences
(13,690)
10,887
Total tax charge
233,658
72,534
AUTOGUARD GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
9
Taxation
(Continued)
- 32 -

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:

2023
2022
as restated
£
£
Profit before taxation
1,224,501
1,577,614
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
232,655
299,747
Tax effect of expenses that are not deductible in determining taxable profit
29,454
3,553
Tax effect of income not taxable in determining taxable profit
(3,800)
(2,981)
Tax effect of utilisation of tax losses not previously recognised
-
0
(9,063)
Change in unrecognised deferred tax assets
-
0
103
Adjustments in respect of prior years
-
0
(105,602)
Effect of change in corporation tax rate
3,772
-
Permanent capital allowances in excess of depreciation
(3,379)
(9,807)
Depreciation on assets not qualifying for tax allowances
732
1,774
Research and development tax credit
-
0
(38,864)
Under/(over) provided in prior years
-
0
(66,326)
Deferred tax adjustments in respect of prior years
(26,452)
-
0
Loss on disposal on assets not qualifying for tax allowances
676
-
0
Taxation charge
233,658
72,534
10
Dividends
2023
2022
Recognised as distributions to equity holders:
£
£
Final paid
930,130
708,910
AUTOGUARD GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
- 33 -
11
Intangible fixed assets
Group
Goodwill
IT Developm'nt
Total
£
£
£
Cost
At 22 March 2022
1,111,543
380,313
1,491,856
Additions
-
0
162,721
162,721
Disposals
-
0
(150,847)
(150,847)
At 31 March 2023
1,111,543
392,187
1,503,730
Amortisation and impairment
At 22 March 2022
38,164
241,094
279,258
Amortisation charged for the period
111,155
45,239
156,394
Disposals
-
0
(147,288)
(147,288)
At 31 March 2023
149,319
139,045
288,364
Carrying amount
At 31 March 2023
962,224
253,142
1,215,366
At 22 March 2022
1,073,379
139,219
1,212,598
AUTOGUARD GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
- 34 -
12
Tangible fixed assets
Group
Leasehold improv'nts
Fixtures and fittings
Computer equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 22 March 2022
92,452
62,889
92,925
108,978
357,244
Additions
7,580
42,190
17,155
-
0
66,925
Disposals
(18,741)
(39,573)
(36,796)
-
0
(95,110)
At 31 March 2023
81,291
65,506
73,284
108,978
329,059
Depreciation and impairment
At 22 March 2022
81,231
47,753
68,088
2,269
199,341
Depreciation charged in the period
11,743
10,935
8,631
20,542
51,851
Eliminated in respect of disposals
(18,741)
(39,573)
(38,553)
-
0
(96,867)
At 31 March 2023
74,233
19,115
38,166
22,811
154,325
Carrying amount
At 31 March 2023
7,058
46,391
35,118
86,167
174,734
At 22 March 2022
11,221
15,136
24,837
106,709
157,903
The company had no tangible fixed assets at 31 March 2023 or 22 March 2022.

The assets held under purchase contracts were disposed of during the year ended 22 March 2022.

13
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
14
-
0
-
0
188
188
AUTOGUARD GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
13
Fixed asset investments
(Continued)
- 35 -
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 22 March 2022 and 31 March 2023
188
Carrying amount
At 31 March 2023
188
At 22 March 2022
188
14
Subsidiaries

Details of the company's subsidiaries at 31 March 2023 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Indirect
Autoguard Warranties Limited
Building 5 Archipelago Office Park, Surrey, GU16 7ER, UK
Ordinary
100.00
-
Sentience Automotive Solutions Ltd - Note 1
As above
Ordinary
0
100.00
Warranty Administration Services Limited - Note 1
Otago House, Allenby Business Village, Lincolnshire, LN3 4NL, UK
Ordinary
0
80.00

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.

15
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Finished goods and goods for resale
52,998
83,253
-
0
-
0
AUTOGUARD GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
- 36 -
16
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
1,536,094
1,386,047
-
0
-
0
Corporation tax recoverable
673,874
449,861
-
0
-
0
Directors loan accounts
302,208
315,463
-
-
Other debtors
50,000
50,285
-
0
-
0
Prepayments
93,082
116,899
-
0
-
0
2,655,258
2,318,555
-
-
Amounts falling due after more than one year:
Deferred tax asset (note 21)
-
0
2,090
-
0
-
0
Total debtors
2,655,258
2,320,645
-
-
17
Current asset investments
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank treasury account
750,000
-
-
-
18
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Obligations under finance leases
-
0
5,562
-
0
-
0
Trade creditors
139,570
146,655
-
0
-
0
Corporation tax payable
167,763
3,623
-
0
-
0
Other taxation and social security
759,586
488,831
-
-
Deferred income
2,472,009
2,149,400
-
0
-
0
Other creditors
856,651
929,054
-
0
-
0
Accruals and deferred income
204,308
90,110
-
0
-
0
4,599,887
3,813,235
-
0
-
0
AUTOGUARD GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
- 37 -
19
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Deferred income
819,155
666,467
-
0
-
0
Deferred consideration
173,334
346,667
-
0
-
0
992,489
1,013,134
-
-
20
Provisions for liabilities
Group
Company
2023
2022
2023
2022
£
£
£
£
1,493,932
1,498,057
-
-
Movements on provisions:
Group
£
Reduction in provisions in the year
4,125

The provision for liabilities relates to a warranty provision, based upon historic data over anticipated claims.

21
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
Assets
Assets
2023
2022
2023
2022
Group
£
£
£
£
Accelerated capital allowances
26,479
42,586
-
(795)
Tax losses
-
-
-
2,885
Retirement benefit obligations
(712)
(1,039)
-
-
25,767
41,547
-
2,090
The company has no deferred tax assets or liabilities.
AUTOGUARD GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
21
Deferred taxation
(Continued)
- 38 -
Group
Company
2023
2023
Movements in the period:
£
£
Liability at 22 March 2022
39,457
-
Credit to profit or loss
(13,690)
-
Liability at 31 March 2023
25,767
-

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.

AUTOGUARD GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
- 39 -
22
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
41,145
28,529

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.

23
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
188
188
188
188
24
Financial commitments, guarantees and contingent liabilities

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.

25
Operating lease commitments
Lessee

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:

Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
138,828
63,657
-
-
Between two and five years
497,467
-
-
-
636,295
63,657
-
-
AUTOGUARD GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
- 40 -
26
Related party transactions
Transactions with related parties

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),

27
Directors' transactions

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.

28
Merger Accounting

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

29
Post balance sheet events

On 7 June 2023, 36 £1 ordinary shares in Autoguard Group Limited were cancelled, for a total value of £1,016,932.

AUTOGUARD GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
- 41 -
30
Cash generated from group operations
2023
2022
£
£
Profit for the period after tax
990,843
1,505,080
Adjustments for:
Taxation charged
233,658
72,534
Finance costs
-
0
14,118
Investment income
(17,018)
(21,701)
Loss/(gain) on disposal of tangible fixed assets
956
(6,427)
Loss on disposal of intangible assets
3,560
-
Amortisation and impairment of intangible assets
156,394
88,142
Depreciation and impairment of tangible fixed assets
51,851
82,571
(Decrease)/increase in provisions
(4,125)
1,498,057
Movements in working capital:
Decrease/(increase) in stocks
30,255
(83,253)
Increase in debtors
(125,945)
(1,553,231)
Increase in creditors
132,132
897,157
Increase in deferred income
475,297
2,815,867
Cash generated from operations
1,927,858
5,308,914
31
Cash absorbed by operations - company
2023
2022
£
£
Profit for the period after tax
930,130
708,910
Adjustments for:
Investment income
(930,130)
(708,910)
Cash absorbed by operations
-
-
AUTOGUARD GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
- 42 -
32
Analysis of changes in net funds - group
22 March 2022
Cash flows
31 March 2023
£
£
£
Cash at bank and in hand
2,268,905
(277,142)
1,991,763
Obligations under finance leases
(5,562)
5,562
-
2,263,343
(271,580)
1,991,763
33
Analysis of changes in net funds - company
22 March 2022
31 March 2023
£
£
Cash at bank and in hand
-
-
Obligations under finance leases
-
-
AUTOGUARD GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
- 43 -
34
Prior period adjustment

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:

Changes to the balance sheet of Autoguard Warranties Limited
As previously reported
Adjustment at 1 Apr 2021
Adjustment at 31 Mar 2022
As restated at 31 Mar 2022
£
£
£
£
Fixed assets
Other intangibles
-
-
139,219
139,219
Tangible assets
285,042
-
(139,219)
145,823
Current assets
Trade debtors
1,239,289
-
(2)
1,239,287
Corp tax debtor
138,893
139,015
67,235
345,143
Creditors due within one year
Trade creditors
(2,111,897)
-
1,986,061
(125,836)
Corp tax creditor
(328,732)
328,732
-
-
Other tax and ss
(492,226)
-
54,843
(437,383)
Other creditors
(255,520)
-
(591,381)
(846,901)
Accruals
(186,623)
-
103,378
(83,245)
Deferred income
-
(2,461,828)
257,762
(2,204,066)
Warranty provision
(1,498,057)
(1,498,057)
Creditors due after one year
Deferred income
-
-
(666,467)
(666,467)
Net assets
2,036,328
(1,994,081)
(286,628)
(244,381)
Capital and reserves
Profit and loss reserves
2,192,999
(1,994,081)
(286,628)
(87,710)
Changes to the profit and loss of Autoguard Warranties Limited
As previously reported
Adjustment
As restated
Period ended 31 March 2022
£
£
£
Turnover
13,288,788
(2,735,812)
10,552,976
Cost of sales
(9,118,894)
2,172,708
(6,946,186)
Administrative expenses
(2,336,158)
209,242
(2,126,916)
Taxation
(273,293)
67,234
(206,059)
Profit for the financial period
1,909,783
(286,628)
1,623,155
2023-03-312022-03-22falseCCH SoftwareCCH Accounts Production 2024.210Mr R J DockerillMr A H May-KhalilMr D L Robinsonfalsefalse137461962022-03-222023-03-3113746196bus:Director12022-03-222023-03-3113746196bus:Director22022-03-222023-03-3113746196bus:Director32022-03-222023-03-3113746196bus:RegisteredOffice2022-03-222023-03-3113746196bus:Consolidated2023-03-31137461962023-03-3113746196bus:Consolidated2022-03-222023-03-3113746196bus:Consolidated2021-11-162022-03-2113746196core:Goodwillbus:Consolidated2023-03-3113746196core:Goodwillbus:Consolidated2022-03-2113746196core:OtherResidualIntangibleAssetsbus:Consolidated2023-03-3113746196core:OtherResidualIntangibleAssetsbus:Consolidated2022-03-2113746196core:ComputerSoftwarebus:Consolidated2023-03-3113746196core:ComputerSoftwarebus:Consolidated2022-03-2113746196bus:Consolidated2022-03-2113746196core:LeaseholdImprovementsbus:Consolidated2023-03-3113746196core:FurnitureFittingsbus:Consolidated2023-03-3113746196core:ComputerEquipmentbus:Consolidated2023-03-3113746196core:MotorVehiclesbus:Consolidated2023-03-3113746196core:LeaseholdImprovementsbus:Consolidated2022-03-2113746196core:FurnitureFittingsbus:Consolidated2022-03-2113746196core:ComputerEquipmentbus:Consolidated2022-03-2113746196core:MotorVehiclesbus:Consolidated2022-03-2113746196core:ShareCapitalbus:Consolidated2023-03-3113746196core:ShareCapitalbus:Consolidated2022-03-2113746196core:ShareCapital2023-03-3113746196core:ShareCapital2022-03-2113746196core:Non-controllingInterestsbus:Consolidated2022-03-2113746196core:RetainedEarningsAccumulatedLosses2021-11-1513746196core:RetainedEarningsAccumulatedLosses2022-03-2113746196core:RetainedEarningsAccumulatedLosses2023-03-31137461962022-03-2113746196bus:Consolidated2021-11-15137461962021-11-1513746196core:Goodwill2022-03-222023-03-3113746196core:IntangibleAssetsOtherThanGoodwill2022-03-222023-03-3113746196core:ComputerSoftware2022-03-222023-03-3113746196core:LeaseholdImprovements2022-03-222023-03-3113746196core:FurnitureFittings2022-03-222023-03-3113746196core:ComputerEquipment2022-03-222023-03-3113746196core:MotorVehicles2022-03-222023-03-31137461962021-11-162022-03-2113746196core:UKTaxbus:Consolidated2022-03-222023-03-3113746196core:UKTaxbus:Consolidated2021-11-162022-03-2113746196bus:Consolidated12022-03-222023-03-3113746196bus:Consolidated12021-11-162022-03-2113746196bus:Consolidated22022-03-222023-03-3113746196bus:Consolidated22021-11-162022-03-2113746196core:Goodwillbus:Consolidated2022-03-2113746196core:Goodwillcore:ExternallyAcquiredIntangibleAssetsbus:Consolidated2022-03-222023-03-3113746196core:ComputerSoftwarecore:ExternallyAcquiredIntangibleAssetsbus:Consolidated2022-03-222023-03-3113746196core:ExternallyAcquiredIntangibleAssetsbus:Consolidated2022-03-222023-03-3113746196core:Goodwillbus:Consolidated2022-03-222023-03-3113746196core:ComputerSoftwarebus:Consolidated2022-03-222023-03-3113746196core:MotorVehiclesbus:Consolidated2022-03-2113746196core:LeaseholdImprovementsbus:Consolidated2022-03-222023-03-3113746196core:ComputerEquipmentbus:Consolidated2022-03-222023-03-3113746196core:MotorVehiclesbus:Consolidated2022-03-222023-03-3113746196core:FurnitureFittingsbus:Consolidated2022-03-222023-03-3113746196core:Subsidiary12022-03-222023-03-3113746196core:Subsidiary22022-03-222023-03-3113746196core:Subsidiary32022-03-222023-03-3113746196core:Subsidiary112022-03-222023-03-3113746196core:Subsidiary212022-03-222023-03-3113746196core:Subsidiary312022-03-222023-03-3113746196core:CurrentFinancialInstruments2023-03-3113746196core:CurrentFinancialInstruments2022-03-2113746196core:CurrentFinancialInstrumentsbus:Consolidated2023-03-3113746196core:CurrentFinancialInstrumentsbus:Consolidated2022-03-2113746196core:Non-currentFinancialInstrumentsbus:Consolidated2023-03-3113746196core:Non-currentFinancialInstrumentsbus:Consolidated2022-03-2113746196core:Non-currentFinancialInstruments2023-03-3113746196core:Non-currentFinancialInstruments2022-03-2113746196core:CurrentFinancialInstrumentscore:WithinOneYearbus:Consolidated2023-03-3113746196core:CurrentFinancialInstrumentscore:WithinOneYearbus:Consolidated2022-03-2113746196core:CurrentFinancialInstrumentscore:WithinOneYear2023-03-3113746196core:CurrentFinancialInstrumentscore:WithinOneYear2022-03-2113746196core:Non-currentFinancialInstrumentscore:AfterOneYearbus:Consolidated12023-03-3113746196core:Non-currentFinancialInstrumentscore:AfterOneYearbus:Consolidated12022-03-2113746196core:Non-currentFinancialInstrumentscore:AfterOneYear22023-03-3113746196core:Non-currentFinancialInstrumentscore:AfterOneYear22022-03-2113746196bus:PrivateLimitedCompanyLtd2022-03-222023-03-3113746196bus:FRS1022022-03-222023-03-3113746196bus:Audited2022-03-222023-03-3113746196bus:ConsolidatedGroupCompanyAccounts2022-03-222023-03-3113746196bus:FullAccounts2022-03-222023-03-31xbrli:purexbrli:sharesiso4217:GBP