Caseware UK (AP4) 2023.0.135 2023.0.135 193false2023-01-01182falseNo description of principal activityfalsefalse 06243389 2023-01-01 2023-12-31 06243389 2022-01-01 2022-12-31 06243389 2023-12-31 06243389 2022-12-31 06243389 2022-01-01 06243389 1 2023-01-01 2023-12-31 06243389 1 2022-01-01 2022-12-31 06243389 2 2023-01-01 2023-12-31 06243389 2 2022-01-01 2022-12-31 06243389 5 2023-01-01 2023-12-31 06243389 5 2022-01-01 2022-12-31 06243389 d:CompanySecretary1 2023-01-01 2023-12-31 06243389 d:Director1 2023-01-01 2023-12-31 06243389 d:Director2 2023-01-01 2023-12-31 06243389 d:RegisteredOffice 2023-01-01 2023-12-31 06243389 e:Buildings 2023-01-01 2023-12-31 06243389 e:Buildings 2023-12-31 06243389 e:Buildings 2022-12-31 06243389 e:Buildings e:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 06243389 e:Buildings e:ShortLeaseholdAssets 2023-01-01 2023-12-31 06243389 e:Buildings e:ShortLeaseholdAssets 2023-12-31 06243389 e:Buildings e:ShortLeaseholdAssets 2022-12-31 06243389 e:PlantMachinery 2023-01-01 2023-12-31 06243389 e:PlantMachinery 2023-12-31 06243389 e:PlantMachinery 2022-12-31 06243389 e:PlantMachinery e:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 06243389 e:MotorVehicles 2023-01-01 2023-12-31 06243389 e:MotorVehicles 2023-12-31 06243389 e:MotorVehicles 2022-12-31 06243389 e:MotorVehicles e:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 06243389 e:FurnitureFittings 2023-01-01 2023-12-31 06243389 e:FurnitureFittings 2023-12-31 06243389 e:FurnitureFittings 2022-12-31 06243389 e:FurnitureFittings e:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 06243389 e:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 06243389 e:CurrentFinancialInstruments 2023-12-31 06243389 e:CurrentFinancialInstruments 2022-12-31 06243389 e:CurrentFinancialInstruments e:WithinOneYear 2023-12-31 06243389 e:CurrentFinancialInstruments e:WithinOneYear 2022-12-31 06243389 f:UnitedKingdom 2023-01-01 2023-12-31 06243389 f:UnitedKingdom 2022-01-01 2022-12-31 06243389 e:UKTax 2023-01-01 2023-12-31 06243389 e:UKTax 2022-01-01 2022-12-31 06243389 e:ShareCapital 2023-12-31 06243389 e:ShareCapital 2022-12-31 06243389 e:ShareCapital 2022-01-01 06243389 e:RetainedEarningsAccumulatedLosses 2023-01-01 2023-12-31 06243389 e:RetainedEarningsAccumulatedLosses 2023-12-31 06243389 e:RetainedEarningsAccumulatedLosses 2022-01-01 2022-12-31 06243389 e:RetainedEarningsAccumulatedLosses 2022-12-31 06243389 e:RetainedEarningsAccumulatedLosses 2022-01-01 06243389 e:FinancialAssetsDesignatedFairValueThroughProfitOrLoss 2023-12-31 06243389 e:FinancialAssetsDesignatedFairValueThroughProfitOrLoss 2022-12-31 06243389 e:FinancialLiabilitiesFairValueThroughProfitOrLoss e:ListedExchangeTraded 2023-12-31 06243389 e:FinancialLiabilitiesFairValueThroughProfitOrLoss e:ListedExchangeTraded 2022-12-31 06243389 e:AcceleratedTaxDepreciationDeferredTax 2023-12-31 06243389 e:AcceleratedTaxDepreciationDeferredTax 2022-12-31 06243389 d:OrdinaryShareClass1 2023-01-01 2023-12-31 06243389 d:OrdinaryShareClass1 2023-12-31 06243389 d:OrdinaryShareClass1 2022-12-31 06243389 d:FRS102 2023-01-01 2023-12-31 06243389 d:Audited 2023-01-01 2023-12-31 06243389 d:FullAccounts 2023-01-01 2023-12-31 06243389 d:PrivateLimitedCompanyLtd 2023-01-01 2023-12-31 06243389 e:WithinOneYear 2023-12-31 06243389 e:WithinOneYear 2022-12-31 06243389 g:PoundSterling 2023-01-01 2023-12-31 xbrli:shares iso4217:GBP xbrli:pure

Registered number: 06243389










O C MOTOR REPAIR LIMITED










Annual Report and Financial Statements

For the Year Ended 31 December 2023

 
O C MOTOR REPAIR LIMITED
 

Company Information


Directors
J M Parker 
J L Radford 




Company secretary
A M Sherriff



Registered number
06243389



Registered office
Saturn Building
First Point

Balby Carr Bank

Doncaster

South Yorkshire

DN4 5JQ




Independent auditors
PKF Smith Cooper Audit Limited
Statutory Auditors

2 Lace Market Square

Nottingham

NG1 1PB





 
O C MOTOR REPAIR LIMITED
 

Contents



Page
Strategic Report
1 - 2
Directors' Report
3 - 4
Independent Auditors' Report
5 - 8
Statement of Comprehensive Income
9
Balance Sheet
10
Statement of Changes in Equity
11
Statement of Cash Flows
12
Notes to the Financial Statements
13 - 23


 
O C MOTOR REPAIR LIMITED
 

Strategic Report
For the Year Ended 31 December 2023

Introduction
 
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. 

Business review
 
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.

Principal risks and uncertainties
 
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. 

Financial key performance indicators
 
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%

Page 1

 
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.



................................................
J M Parker
Director

Date: 30 September 2024

Page 2

 
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.

Directors' responsibilities statement

The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.
 
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.

 In preparing these financial statements, the directors are required to:


select suitable accounting policies 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 2006They 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.

Results and dividends

The profit for the year, after taxation, amounted to £510,560 (2022 - loss £607,848).

Directors

The directors who served during the year were:

J M Parker 
J L Radford 

Future developments

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.

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Page 3

 
O C MOTOR REPAIR LIMITED
 

 
Directors' Report (continued)
For the Year Ended 31 December 2023

Post balance sheet events

There have been no significant events affecting the Company since the year end.

Auditors

The auditorsPKF Smith Cooper Audit Limitedwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 30 September 2024 and signed on its behalf.
 





................................................
J M Parker
Director

Page 4

 
O C MOTOR REPAIR LIMITED
 

 
Independent Auditors' Report to the Members of O C Motor Repair Limited
 

Opinion


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 policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the Company's affairs as at 31 December 2023 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the 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.


Conclusions relating to going concern


In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.


Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.


Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.


Other information


The 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 ReportOur 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.


Page 5

 
O C MOTOR REPAIR LIMITED
 

 
Independent Auditors' Report to the Members of O C Motor Repair Limited (continued)


Opinion on other matters prescribed by the Companies Act 2006
 

In our opinion, based on the work undertaken in the course of the audit:


the information given in the Strategic Report and the 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.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.


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


adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

As explained more fully in the Directors' Responsibilities Statement set out on page 3, 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 Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.


Page 6

 
O C MOTOR REPAIR LIMITED
 

 
Independent Auditors' Report to the Members of O C Motor Repair Limited (continued)


Auditors' responsibilities for the audit of the financial statements
 

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


Page 7

 
O C MOTOR REPAIR LIMITED
 

 
Independent Auditors' Report to the Members of O C Motor Repair Limited (continued)


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 2006Our 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.





James Bagley (Senior Statutory Auditor)
for and on behalf of
PKF Smith Cooper Audit Limited
Statutory Auditors
2 Lace Market Square
Nottingham
NG1 1PB

30 September 2024
Page 8

 
O C MOTOR REPAIR LIMITED
 

Statement of Comprehensive Income
For the Year Ended 31 December 2023

As restated
2023
2022
Note
£
£

  

Turnover
 4 
23,502,874
15,735,868

Cost of sales
  
(12,724,977)
(8,130,022)

Gross profit
  
10,777,897
7,605,846

Administrative expenses
  
(9,792,728)
(8,136,226)

Other operating income
 5 
500
1,500

Operating profit/(loss)
 6 
985,669
(528,880)

Interest payable and similar expenses
  
(7,788)
(13,465)

Profit/(loss) before tax
  
977,881
(542,345)

Tax on profit/(loss)
 8 
(467,321)
(65,503)

Profit/(loss) for the financial year
  
510,560
(607,848)

There were no recognised gains and losses for 2023 or 2022 other than those included in the statement of comprehensive income.

There was no other comprehensive income for 2023 (2022:£NIL).

The notes on pages 13 to 23 form part of these financial statements.

Page 9

 
O C MOTOR REPAIR LIMITED
Registered number: 06243389

Balance Sheet
As at 31 December 2023

As restated
2023
2022
Note
£
£

Fixed assets
  

Tangible assets
 10 
4,891,870
4,461,510

  
4,891,870
4,461,510

Current assets
  

Stocks
 11 
129,478
70,533

Debtors: amounts falling due within one year
 12 
9,121,550
7,539,840

Cash at bank and in hand
 13 
173,910
30,248

  
9,424,938
7,640,621

Creditors: amounts falling due within one year
 14 
(8,948,167)
(7,385,106)

Net current assets
  
 
 
476,771
 
 
255,515

Total assets less current liabilities
  
5,368,641
4,717,025

Provisions for liabilities
  

Deferred tax
 16 
(418,200)
(277,067)

Net assets
  
4,950,441
4,439,958


Capital and reserves
  

Called up share capital 
 17 
10,000
10,000

Profit and loss account
 18 
4,940,441
4,429,958

  
4,950,441
4,439,958


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




................................................
J M Parker
Director

Date: 30 September 2024

The notes on pages 13 to 23 form part of these financial statements.

Page 10

 
O C MOTOR REPAIR LIMITED
 

Statement of Changes in Equity
For the Year Ended 31 December 2023


Called up share capital
Profit and loss account
Total equity

£
£
£


As restated at 1 January 2022
10,000
5,037,806
5,047,806



Loss for the year
-
(607,848)
(607,848)



As restated at 1 January 2023
10,000
4,429,958
4,439,958



Profit for the year
-
510,560
510,560


Contributions by and distributions to owners

Dividends: Equity capital
-
(77)
(77)


At 31 December 2023
10,000
4,940,441
4,950,441


The notes on pages 13 to 23 form part of these financial statements.

Page 11

 
O C MOTOR REPAIR LIMITED
 

Statement of Cash Flows
For the Year Ended 31 December 2023

2023
2022
£
£

Cash flows from operating activities

Profit/(loss) for the financial year
510,560
(607,848)

Adjustments for:

Depreciation of tangible assets
553,110
456,130

Loss on disposal of tangible assets
4,086
(159)

Government grants
(500)
(1,500)

Interest paid
7,788
13,465

Taxation charge
467,321
65,503

(Increase)/decrease in stocks
(58,945)
78,904

(Increase) in debtors
(125,002)
(955,150)

Decrease/(increase) in amounts owed by groups
385,280
(385,280)

(Increase)/decrease in amounts owed by companies under common control
(2,168,176)
-

Increase in creditors
1,345,757
574,480

(Decrease)/increase in amounts owed to groups
(4,086,672)
1,875,324

Increase in amounts owed to join ventures
4,303,975
-

Net cash generated from operating activities

1,138,582
1,113,869


Cash flows from investing activities

Purchase of tangible fixed assets
(1,019,649)
(1,185,129)

Sale of tangible fixed assets
32,094
44,242

Government grants received
500
1,500

Net cash from investing activities

(987,055)
(1,139,387)

Cash flows from financing activities

Dividends paid
(77)
-

Interest paid
(7,788)
(13,465)

Net cash used in financing activities
(7,865)
(13,465)

Net increase/(decrease) in cash and cash equivalents
143,662
(38,983)

Cash and cash equivalents at beginning of year
30,248
69,231

Cash and cash equivalents at the end of year
173,910
30,248


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
173,910
30,248

173,910
30,248


The notes on pages 13 to 23 form part of these financial statements.

Page 12

 
O C MOTOR REPAIR LIMITED
 

 
Notes to the Financial Statements
For the Year Ended 31 December 2023

1.


General information

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

 
2.1

Basis of preparation of financial statements

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:

 
2.2

Revenue

When the outcome of a transaction involving the rendering of services can be estimated reliably, the company recognises revenue associated with the transaction by reference to the stage of completion of the transaction at the end of the reporting period. The outcome of a transaction can be estimated reliably when all of the following conditions are satisfied:
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.

 
2.3

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

 
2.4

Government grants

Grants are accounted under the accruals model as permitted by FRS 102. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the Statement of Comprehensive Income in the same period as the related expenditure.

Page 13

 
O C MOTOR REPAIR LIMITED
 

 
Notes to the Financial Statements
For the Year Ended 31 December 2023

2.Accounting policies (continued)

 
2.5

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.6

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.

 
2.7

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

 
2.8

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Page 14

 
O C MOTOR REPAIR LIMITED
 

 
Notes to the Financial Statements
For the Year Ended 31 December 2023

2.Accounting policies (continued)


2.8
Tangible fixed assets (continued)

Depreciation is provided on the following basis:

Freehold property
-
2%
on a straight line basis
Short-term leasehold property
-
2%
on a straight line basis
Plant and machinery
-
10%
on a straight line basis
Motor vehicles
-
25%
on a reducing balance basis
Fixtures and fittings
-
10%
to 20% on a straight line basis

 
2.9

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out 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.

 
2.10

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.11

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Company's cash management.

 
2.12

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.13

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

 
2.14

Financial instruments

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.

Page 15

 
O C MOTOR REPAIR LIMITED
 

 
Notes to the Financial Statements
For the Year Ended 31 December 2023

2.Accounting policies (continued)

 
2.15

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.


3.


Judgements in applying accounting policies and key sources of estimation uncertainty

The directors make estimates and assumptions concerning the future. The directors are also required to exercise judgement in the process of applying the company’s accounting policies. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
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.


4.


Turnover

2023
2022
£
£

Motor repair services
23,502,874
15,735,868


All turnover arose within the United Kingdom.


5.


Other operating income

2023
2022
£
£

Government grants receivable
500
1,500


Page 16

 
O C MOTOR REPAIR LIMITED
 

 
Notes to the Financial Statements
For the Year Ended 31 December 2023

6.


Operating profit/(loss)

The operating profit/(loss) is stated after charging:

2023
2022
£
£

Auditors remuneration
12,600
13,000

(Profit)/loss on disposal of fixed assets
4,086
(159)

Other operating lease rentals
239,600
202,432

Depreciation
553,109
456,130


7.


Employees

Staff costs were as follows:


2023
2022
£
£

Wages and salaries
6,237,889
5,167,532

Social security costs
633,806
521,313

Cost of defined contribution scheme
155,987
110,747

7,027,682
5,799,592


The average monthly number of employees, including the directors, during the year was as follows:


        2023
        2022
            No.
            No.







Administrative
27
25



Bodyshop and drivers
166
157

193
182

Page 17

 
O C MOTOR REPAIR LIMITED
 

 
Notes to the Financial Statements
For the Year Ended 31 December 2023

8.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
75,789
-

Adjustments in respect of previous periods
250,399
-


Total current tax
326,188
-

Deferred tax


Origination and reversal of timing differences
141,133
65,503

Total deferred tax
141,133
65,503


Taxation on profit on ordinary activities
467,321
65,503

Factors affecting tax charge for the year

The tax assessed for the year is lower than (2022 - higher than) the standard rate of corporation tax in the UK of 23.52% (2022 - 19%). The differences are explained below:

2023
2022
£
£


Profit/(loss) on ordinary activities before tax
977,881
(542,345)


Profit/(loss) on ordinary activities multiplied by standard rate of corporation tax in the UK of 23.52% (2022 - 19%)
229,998
(103,046)

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
1,755
2,210

Capital allowances for year in excess of depreciation
(151,630)
(82,987)

Adjustments to tax charge in respect of prior periods
250,399
-

Short term timing difference leading to an increase (decrease) in taxation
141,133
65,503

Group relief
(4,334)
183,823

Total tax charge for the year
467,321
65,503

Page 18

 
O C MOTOR REPAIR LIMITED
 

 
Notes to the Financial Statements
For the Year Ended 31 December 2023

9.


Dividends

2023
2022
£
£


Dividends analysis - user input
77
-

77
-

Page 19

 
O C MOTOR REPAIR LIMITED
 

 
Notes to the Financial Statements
For the Year Ended 31 December 2023

10.


Tangible fixed assets





Freehold property
Short-term leasehold property
Plant and machinery
Motor vehicles
Fixtures and fittings
Total

£
£
£
£
£
£



Cost


At 1 January 2023
2,286,536
89,553
1,226,407
1,926,020
788,965
6,317,481


Additions
37,026
79,769
243,167
637,035
22,652
1,019,649


Disposals
-
-
(32,250)
(26,383)
-
(58,633)



At 31 December 2023

2,323,562
169,322
1,437,324
2,536,672
811,617
7,278,497



Depreciation


At 1 January 2023
205,680
13,134
356,496
898,208
382,453
1,855,971


Charge for the year on owned assets
46,986
2,273
131,481
308,533
63,836
553,109


Disposals
-
-
(5,900)
(16,553)
-
(22,453)



At 31 December 2023

252,666
15,407
482,077
1,190,188
446,289
2,386,627



Net book value



At 31 December 2023
2,070,896
153,915
955,247
1,346,484
365,328
4,891,870



At 31 December 2022
2,080,856
76,419
869,911
1,027,812
406,512
4,461,510


11.


Stocks

2023
2022
£
£

Salvage vehicles
129,478
70,533


Page 20

 
O C MOTOR REPAIR LIMITED
 

 
Notes to the Financial Statements
For the Year Ended 31 December 2023

12.


Debtors

As restated
2023
2022
£
£


Trade debtors
6,340,758
5,993,622

Amounts owed by group undertakings
-
385,280

Amounts owed by companies under common control
2,168,176
-

Other debtors
87,782
855,303

Prepayments and accrued income
524,834
305,635

9,121,550
7,539,840



13.


Cash and cash equivalents

2023
2022
£
£

Cash at bank and in hand
173,910
30,248



14.


Creditors: Amounts falling due within one year

As restated
2023
2022
£
£

Trade creditors
236,150
819,191

Amounts owed to group undertakings
-
4,086,672

Amounts owed to companies under common control
4,303,975
-

Other taxation and social security
480,797
-

Other creditors
11,585
11,282

Accruals and deferred income
3,915,660
2,467,961

8,948,167
7,385,106


Page 21

 
O C MOTOR REPAIR LIMITED
 

 
Notes to the Financial Statements
For the Year Ended 31 December 2023

15.


Financial instruments

2023
2022
£
£

Financial assets


Financial assets that are debt instruments measured at amortised cost
8,508,934
6,378,902


Financial liabilities


Financial liabilities measured at amortised cost
(4,540,048)
(4,905,863)


Financial assets that are debt instruments measured at amortised cost comprise trade debtors, amounts owed by group undertakings and amounts owed by companies under common control.


Financial liabilities measured at amortised cost comprise trade creditors, amounts owed to companies under common control and amounts owed to group undertakings.


16.


Deferred taxation




2023


£






At beginning of year
(277,067)


Charged to profit or loss
(141,133)



At end of year
(418,200)

The provision for deferred taxation is made up as follows:

2023
2022
£
£


Accelerated capital allowances
(418,200)
(277,067)


17.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



100,000 (2022 - 100,000) Ordinary shares of £0.10 each
10,000
10,000


Page 22

 
O C MOTOR REPAIR LIMITED
 

 
Notes to the Financial Statements
For the Year Ended 31 December 2023

18.


Reserves

Profit and loss account

The profit and loss account represents cumulative profits and losses net of dividends and other adjustments.


19.


Prior year adjustment

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.


20.


Commitments under operating leases

At 31 December 2023 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2023
2022
£
£


Not later than 1 year
-
11,000

-
11,000


21.


Related party transactions

Sales to a company with a director in common totalled £2,492,828 (2022: £1,259,818). There is a debtor of £157,190 (2022: £149,846) owing from the related party.
Purchases from a company with directors in common totalled £128,333.
Sponsorship costs paid to a company with a director in common totalled £60,000 (2022: £60,000).
Sales to a company with directors in common totalled £12,668. Purchases from the related company totalled £7,041,161. There is a creditor of £4,303,898 owing to the related party.
Sales to a company with directors in common totalled £4,443. Purchases from the related company totalled £297,490. There is a debtor of £2,168,176 owing from the related party.
Key management personnel are directors only and none are remunerated through this company.


22.


Controlling party

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.

Page 23