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2021-12-31 iso4217:GBP xbrli:pure xbrli:shares

Registration number: 09490423

Azimuth Motors Holdings Ltd.

Annual Report and Consolidated Financial Statements

for the Year Ended 31 December 2023

 

Azimuth Motors Holdings Ltd.

Contents

Company Information

1

Strategic Report

2 to 3

Director's Report

4 to 5

Statement of Director's Responsibilities

6

Independent Auditor's Report

7 to 10

Consolidated Profit and Loss Account

11

Consolidated Balance Sheet

12

Balance Sheet

13

Consolidated Statement of Changes in Equity

14

Statement of Changes in Equity

15

Consolidated Statement of Cash Flows

16

Notes to the Financial Statements

17 to 32

 

Azimuth Motors Holdings Ltd.

Company Information

Director

A Moiseeva

Registered office

C/O Clifton Ingram Llp
22-24 Broad Street
Wokingham
Berkshire
RG40 1BA

Auditors

UHY Ross Brooke
Chartered Accountants and Registered Auditors
2 Old Bath Road
Newbury
Berkshire
RG14 1QL

 

Azimuth Motors Holdings Ltd.

Strategic Report for the Year Ended 31 December 2023

The director presents her strategic report for the year ended 31 December 2023.

Principal activity

The principal activity of the company is that of a holding company. The group conducts the purchasing, selling, and repairing motor vehicles and other ancillary services.

Fair review of the business

The Group delivered positive results in the financial year 2023, showing steady performance despite certain challenges. The turnover (excluding commissions and other) increased slightly to £51.45m from £50.5m in 2022, reflecting the company's ability to maintain strong sales. Gross profit saw a marginal increase, reaching £6.8m compared to £5.9m in the previous year.

The total number of new vehicles sold declined slightly from 3,160 units in 2022 to 3,024 in 2023, indicating some softness in the new vehicle market. However, this decline was offset by the strength in used vehicle sales, with a total of 2,151 units sold in 2023 compared to 2,138 in 2022. Notably, retail sales of used vehicles were stable at 1,592 units, similar to the previous year, while trade sales also remained consistent at 559 units.

The aftersales departments continued to perform well, with the parts department achieving a turnover of £3.56m , an increase of £600k compared to 2022, and a profit of £404k. Similarly, the service department's turnover rose to £3.68m, up by £380k, with profits increasing by £12k, reflecting strong demand in these areas.

Despite these improvements, indirect expenses rose to £3.04m, up by £579k from 2022, primarily driven by increased operational costs. As a result, the company recorded a net operating profit of £1,076k, which represents a decrease compared to the previous year. The reduction in profit can be attributed to a combination of factors, including lower new vehicle sales and the rise in indirect expenses, which outpaced the growth in overall revenue.

Principal risks and uncertainties

The management of the business and the nature of the group's strategy are subject to a number of risks. The directors have set out below the principal risks facing the business.

a) Manufacturers supply of new and improved products
The company remains reliant on its manufacturer, Vauxhall, for the supply of new vehicles. Despite a slight decline in new vehicle sales in 2023, the directors remain confident in the continued availability, pricing, and quality of new vehicle products from the manufacturer. Risks related to supply are mitigated by strong performance in the used vehicle, parts, and service departments.

b) Economic downturn
Given that consumer spending is vital to the company's success, any economic downturn presents a risk. In 2023, while overall turnover increased, the decline in new vehicle sales and rising operational costs highlight the potential challenges of an economic slowdown. Management continues to monitor economic conditions closely, adjusting marketing and pricing strategies where necessary to protect revenue streams.

c) Development and performance
The company's strategy remains focused on maintaining its strong market position and leveraging its partnership with Vauxhall. The slight dip in new vehicle sales emphasizes the importance of adapting to market trends, but the company remains committed to introducing new models and expanding its service and parts departments.

d) Impact of Brexit-related risks
The effects of Brexit continue to be monitored, particularly with respect to tariffs on new vehicles. While these factors may pressure the new car market in the short term, the directors believe that the used car market presents a significant opportunity, which the company is well-positioned to capitalize on.

The group's key financial and other performance indicators during the year were as follows:

 

Azimuth Motors Holdings Ltd.

Strategic Report for the Year Ended 31 December 2023

Financial KPIs

Unit

2023

2022

New units

3,024

3,160

Used units

2,151

2,138

Approved and authorised by the director on 3 October 2024
 

.........................................
A Moiseeva
Director

 

Azimuth Motors Holdings Ltd.

Director's Report for the Year Ended 31 December 2023

The director presents her report and the for the year ended 31 December 2023.

Director of the group

The director who held office during the year was as follows:

A Moiseeva

Financial instruments

Objectives and policies

The company uses various financial instruments which include stocking loans, loans from the director, cash, trade debtors and trade crediotrs that arise directly from operations. The main purpose of these financial instruments is to raise finance for the company's operations. Their existance exposes the company to a number of financial risks.

The main risks arising from the company's financial instruments are interest rate risk, liquidity risk and credit risk. The directors review and agree policies for managing each of these risks which are summarised below. These policies have remained unchanged from previous years.

Price risk, credit risk, liquidity risk and cash flow risk

Liquidity risk
The comapny seeks to manage risk by ensuring sufficient liquidity is available to meet forseeable needs to invest cash assets safelt and profitably.

The company's policy throughout the year has been to achieve this objective through the day to day involvement of management in business decisions rather than through setting maximum or minimum liquidity ratios.

Interest rate risk
The company finances its operations through a mixture of shareholder funding and other external borrowings. The company's exposure to interest rate fluctuations on its borrowings is managed through day to day involvement of management in business decisions rather than through setting maximum and minimum levels of the level of fixed interest rate borrowings.

Credit risk
The company's pricipal financial assets are cash and trade debtors. The credit risk associated with the cash is limited as counterparts have high credit ratings assigned by international credit-rating agencies. The principal credit risk therefore arises from its trade debtors.

In order to manage credit risk, the director sets credit limits for customers based on a combination of payment history and third party credit references. Credit limits are reviewed by the director on a regular basis in conjunction with debt ageing and collection history.

 

Azimuth Motors Holdings Ltd.

Director's Report for the Year Ended 31 December 2023

Disclosure of information to the auditor

The director has taken steps that she ought to have taken as a director in order to make herself aware of any relevant audit information and to establish that the company's auditor is aware of that information. The director confirms that there is no relevant information that she knows of and of which she knows the auditor is unaware.

Approved and authorised by the director on 3 October 2024
 

.........................................
A Moiseeva
Director

 

Azimuth Motors Holdings Ltd.

Statement of Director's Responsibilities

The director acknowledges her responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

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

select suitable accounting policies and apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

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

 

Azimuth Motors Holdings Ltd.

Independent Auditor's Report to the Members of Azimuth Motors Holdings Ltd.

Opinion

We have audited the financial statements of Azimuth Motors Holdings Ltd. (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023, which comprise the Consolidated Profit and Loss Account, Consolidated Balance Sheet, Balance Sheet, Consolidated Statement of Changes in Equity, Statement of Changes in Equity, Consolidated 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 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 group's and the parent company's affairs as at 31 December 2023 and of the group's 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 auditor responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the 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 opinion.

Conclusions relating to going concern

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

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

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

Other information

The director are responsible for the other information. 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

Opinion on other matter prescribed by the Companies Act 2006

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

 

Azimuth Motors Holdings Ltd.

Independent Auditor's Report to the Members of Azimuth Motors Holdings Ltd.

the information given in the Strategic Report and Director's Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and Director's Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of our 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 and the Director's Report.

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:

adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

the parent company financial statements are not in agreement with the accounting records and returns; or

certain disclosures of director's remuneration specified by law are not made; or

we have not received all the information and explanations we require for our audit.

Responsibilities of the director

As explained more fully in the Statement of Director's Responsibilities [set out on page 6], the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

 

Azimuth Motors Holdings Ltd.

Independent Auditor's Report to the Members of Azimuth Motors Holdings Ltd.

Detecting irregularities, including fraud
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. As such, we have considered:

• the nature of the industry and sector, control environment and business performance including the group's remuneration policies, bonus levels, and performance targets;
• the group's own assessment, including assessments made by key management, of the risks that irregularities may occur either as a result of fraud or error;
• any matters we identified having reviewed the company's policies and procedures relating to:

- identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance;
- detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or
alleged fraud; and
- the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations;

• the matters discussed amongst the audit engagement team.

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the areas in which management is required to exercise significant judgement, such as the disclosure of adjusting items. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.

We also obtained an understanding of the legal and regulatory framework that the company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context were the Companies Act, tax legislation and regulations concerning importing and exporting to and from the UK.

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

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.

 

Azimuth Motors Holdings Ltd.

Independent Auditor's Report to the Members of Azimuth Motors Holdings Ltd.

......................................
Dean Blunden BFP FCA (Senior Statutory Auditor)
For and on behalf of UHY Ross Brooke, Statutory Auditor

2 Old Bath Road
Newbury
Berkshire
RG14 1QL

7 October 2024

 

Azimuth Motors Holdings Ltd.

Consolidated Profit and Loss Account for the Year Ended 31 December 2023

Note

2023
£

2022
£

Turnover

3

52,885,328

51,692,629

Cost of sales

 

(46,067,522)

(45,750,648)

Gross profit

 

6,817,806

5,941,981

Administrative expenses

 

(5,849,628)

(4,532,117)

Other operating income

108,000

-

Operating profit

4

1,076,178

1,409,864

Other interest receivable and similar income

5

210,115

-

Interest payable and similar expenses

6

(404,591)

(292,095)

   

(194,476)

(292,095)

Profit before tax

 

881,702

1,117,769

Tax on profit

10

(296,625)

(229,703)

Profit for the financial year

 

585,077

888,066

Profit/(loss) attributable to:

 

Owners of the company

 

585,077

888,066

The group has no recognised gains or losses for the year other than the results above.

 

Azimuth Motors Holdings Ltd.

(Registration number: 09490423)
Consolidated Balance Sheet as at 31 December 2023

Note

2023
£

2022
£

Fixed assets

 

Intangible assets

11

12,000

13,500

Tangible assets

12

7,270,049

5,412,787

Investment property

13

1,414,538

1,414,538

 

8,696,587

6,840,825

Current assets

 

Stocks

15

3,921,358

6,117,845

Debtors

16

1,768,131

1,160,219

Cash at bank and in hand

 

6,609,103

4,738,306

 

12,298,592

12,016,370

Creditors: Amounts falling due within one year

19

(8,374,130)

(9,827,540)

Net current assets

 

3,924,462

2,188,830

Total assets less current liabilities

 

12,621,049

9,029,655

Creditors: Amounts falling due after more than one year

19

(7,489,972)

(4,489,986)

Provisions for liabilities

20

(144,429)

(138,098)

Net assets

 

4,986,648

4,401,571

Capital and reserves

 

Called up share capital

22

141

141

Share premium reserve

2,812,100

2,812,100

Retained earnings

2,174,407

1,589,330

Equity attributable to owners of the company

 

4,986,648

4,401,571

Shareholders' funds

 

4,986,648

4,401,571

Approved and authorised by the director on 3 October 2024
 

.........................................
A Moiseeva
Director

 

Azimuth Motors Holdings Ltd.

(Registration number: 09490423)
Balance Sheet as at 31 December 2023

Note

2023
£

2022
£

Fixed assets

 

Tangible assets

12

6,673,651

4,834,873

Investment property

13

1,414,538

1,414,538

Investments

14

968,820

968,820

 

9,057,009

7,218,231

Current assets

 

Debtors

16

266,082

1,691,939

Cash at bank and in hand

 

6,035,570

2,503,744

 

6,301,652

4,195,683

Creditors: Amounts falling due within one year

19

(5,043,508)

(4,047,465)

Net current assets

 

1,258,144

148,218

Total assets less current liabilities

 

10,315,153

7,366,449

Creditors: Amounts falling due after more than one year

19

(7,489,972)

(4,489,986)

Net assets

 

2,825,181

2,876,463

Capital and reserves

 

Called up share capital

22

141

141

Share premium reserve

2,812,100

2,812,100

Retained earnings

12,940

64,222

Shareholders' funds

 

2,825,181

2,876,463

The company made a loss after tax for the financial year of £51,282 (2022 - profit of £69,358).

Approved and authorised by the director on 3 October 2024
 

.........................................
A Moiseeva
Director

 

Azimuth Motors Holdings Ltd.

Consolidated Statement of Changes in Equity for the Year Ended 31 December 2023
Equity attributable to the parent company

Share capital
£

Share premium
£

Retained earnings
£

Total
£

Total equity
£

At 1 January 2022

100

1,295,369

701,264

1,996,733

1,996,733

Profit for the year

-

-

888,066

888,066

888,066

New share capital subscribed

41

1,516,731

-

1,516,772

1,516,772

At 31 December 2022

141

2,812,100

1,589,330

4,401,571

4,401,571

Share capital
£

Share premium
£

Retained earnings
£

Total
£

Total equity
£

At 1 January 2023

141

2,812,100

1,589,330

4,401,571

4,401,571

Profit for the year

-

-

585,077

585,077

585,077

At 31 December 2023

141

2,812,100

2,174,407

4,986,648

4,986,648

 

Azimuth Motors Holdings Ltd.

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

Share capital
£

Share premium
£

Retained earnings
£

Total
£

At 1 January 2022

100

1,295,369

(5,136)

1,290,333

Profit for the year

-

-

69,358

69,358

New share capital subscribed

41

1,516,731

-

1,516,772

At 31 December 2022

141

2,812,100

64,222

2,876,463

Share capital
£

Share premium
£

Retained earnings
£

Total
£

At 1 January 2023

141

2,812,100

64,222

2,876,463

Loss for the year

-

-

(51,282)

(51,282)

At 31 December 2023

141

2,812,100

12,940

2,825,181

 

Azimuth Motors Holdings Ltd.

Consolidated Statement of Cash Flows for the Year Ended 31 December 2023

Note

2023
£

2022
£

Cash flows from operating activities

Profit for the year

 

585,077

888,066

Adjustments to cash flows from non-cash items

 

Depreciation and amortisation

4

424,426

191,681

Profit on disposal of tangible assets

-

(2,750)

Finance income

5

(210,115)

-

Finance costs

6

404,591

292,095

Income tax expense

10

296,625

229,703

 

1,500,604

1,598,795

Working capital adjustments

 

Decrease/(increase) in stocks

15

2,196,487

(621,400)

(Increase)/decrease in trade debtors

16

(607,912)

349,901

(Decrease)/increase in trade creditors

19

(1,751,563)

888,648

Cash generated from operations

 

1,337,616

2,215,944

Income taxes paid

 

(285,391)

(189,712)

Interest paid

 

(111,341)

(292,095)

Net cash flow from operating activities

 

940,884

1,734,137

Cash flows from investing activities

 

Interest received

210,115

-

Acquisitions of tangible assets

(2,280,188)

(161,839)

Proceeds from sale of tangible assets

 

-

2,750

Net cash flows from investing activities

 

(2,070,073)

(159,089)

Cash flows from financing activities

 

Proceeds from issue of ordinary shares, net of issue costs

 

-

1,516,772

New loans

 

2,999,986

-

Net cash flows from financing activities

 

2,999,986

1,516,772

Net increase in cash and cash equivalents

 

1,870,797

3,091,820

Cash and cash equivalents at 1 January

 

4,738,306

1,646,486

Cash and cash equivalents at 31 December

 

6,609,103

4,738,306

 

Azimuth Motors Holdings Ltd.

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

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
C/O Clifton Ingram Llp
22-24 Broad Street
Wokingham
Berkshire
RG40 1BA

The principal place of business is:
Slough House
87-89 Farnham Road
Slough
Berkshire
SL1 4UN
England

These financial statements were authorised for issue by the director on 3 October 2024.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

The financial statements are prepared in sterling, which is the functional currency of the company, and rounded to the nearest pound.

Basis of consolidation

The consolidated financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 31 December 2023.

No Profit and Loss Account is presented for the company as permitted by section 408 of the Companies Act 2006. The company made a loss after tax for the financial year of £51,282 (2022 - profit of £69,358).

 

Azimuth Motors Holdings Ltd.

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

A subsidiary is an entity controlled by the company. Control is achieved where the company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.

The results of subsidiaries acquired or disposed of during the year are included in the Profit and Loss Account from the effective date of acquisition or up to the effective date of disposal, as appropriate. Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the group.

The purchase method of accounting is used to account for business combinations that result in the acquisition of subsidiaries by the group. The cost of a business combination is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the business combination. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. Any excess of the cost of the business combination over the acquirer’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognised is recorded as goodwill.

Inter-company transactions, balances and unrealised gains on transactions between the company and its subsidiaries, which are related parties, are eliminated in full.

Intra-group losses are also eliminated but may indicate an impairment that requires recognition in the consolidated financial statements.

Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group. Non-controlling interests in the net assets of consolidated subsidiaries are identified separately from the group’s equity therein. Non-controlling interests consist of the amount of those interests at the date of the original business combination and the non-controlling shareholder’s share of changes in equity since the date of the combination.

Going concern

The financial statements have been prepared on a going concern basis.

Judgements

In the application of the company'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.

Key sources of estimation uncertainty

Stock valuation is regularly monitored against age profile and market demand. Management use a number of market tools during the appraisal process including Glass' and CAP valuation guides. The director maintains oversight of ageing stock profiles and a monthly review of any provision required is performed. Used vehicles had a carrying amount of £2,923,440 (2022 -£2,987,886).

Vauxhall bonus valuation is regualarly monitored against through the performance feedback provided by Vauxhall, which enables the company to estimate the probable income that they will receive in respect of commission bonus for the year. The commission earned in the year is disclosed in the notes to the financial statements.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the group’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

 

Azimuth Motors Holdings Ltd.

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

Tax

The tax expense for the period comprises current tax payable and deferred tax.

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

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the consolidated financial statements.

Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Land and buildings

10% straight line

Plant and machinery

8-33% straight line

Fixtures and fittings

5-10% straight line

Office equipment

20-33% straight line

Leasehold property

over the life of the lease

Investment property

Investment property is carried at fair value, derived from the current market prices for comparable real estate determined annually by external valuers. The valuers use observable market prices, adjusted if necessary for any difference in the nature, location or condition of the specific asset. Changes in fair value are recognised in profit or loss.

Business combinations

Business combinations are accounted for using the purchase method. The consideration for each acquisition is measured at the aggregate of the fair values at acquisition date of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquired, plus any costs directly attributable to the business combination. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the group includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably.

Goodwill

Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the group’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date. Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.

 

Azimuth Motors Holdings Ltd.

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

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class

Amortisation method and rate

Goodwill

10% straight line

Investments

Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.


Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Profit and Loss Account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the group has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

 

Azimuth Motors Holdings Ltd.

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

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the group has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Financial instruments

Classification
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 third parties and investments in non-puttable ordinary shares. They are classified according to the substance of the contractual arrangements entered into.

 Recognition and measurement
All financial assets and liabilities are initially measured at transaction price (including transaction costs) unless the arrangement constitutes a financing arrangement. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Financial assets are only offset in the Balance Sheet when there exists a legally enforceable right to set off the recognised amounts and the company intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled; or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party; or (c) despite having retained some significant risks and rewards of ownership, control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.

Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.

 Impairment
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been effected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset's original effective interest rate. The impairment loss is recognised in profit or loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

 

Azimuth Motors Holdings Ltd.

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

3

Turnover

The analysis of the group's Turnover for the year from continuing operations is as follows:

2023
£

2022
£

Sale of goods

43,976,984

44,075,557

Rendering of services

7,502,647

6,483,369

Rental income from investment property

85,490

84,500

Other revenue

56,322

-

Commissions received

1,263,885

1,049,203

52,885,328

51,692,629

4

Operating profit

Arrived at after charging/(crediting)

2023
£

2022
£

Depreciation expense

422,926

190,181

Amortisation expense

1,500

1,500

Operating lease expense - property

619,539

549,033

Profit on disposal of property, plant and equipment

-

(2,750)

5

Other interest receivable and similar income

2023
£

2022
£

Interest income on bank deposits

204,558

-

Other finance income

5,557

-

210,115

-

6

Interest payable and similar expenses

2023
£

2022
£

Interest expense on other finance liabilities

404,591

292,095

 

Azimuth Motors Holdings Ltd.

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

7

Staff costs

The aggregate payroll costs (including director's remuneration) were as follows:

2023
£

2022
£

Wages and salaries

3,639,039

3,292,803

Social security costs

344,814

326,453

Pension costs, defined contribution scheme

72,683

62,642

Other employee expense

54,523

44,402

4,111,059

3,726,300

The average number of persons employed by the group (including the director) during the year, analysed by category was as follows:

2023
No.

2022
No.

Administration and support

19

18

Sales

30

29

Distribution

66

62

115

109

8

Director's remuneration

The director's remuneration for the year was as follows:

2023
£

2022
£

Remuneration

28,450

26,300

Contributions paid to money purchase schemes

666

602

29,116

26,902

During the year the number of directors who were receiving benefits and share incentives was as follows:

2023
No.

2022
No.

Accruing benefits under defined benefit pension scheme

1

1

9

Auditors' remuneration

2023
£

2022
£

Audit of these financial statements

22,250

21,750

 

Azimuth Motors Holdings Ltd.

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


 

10

Taxation

Tax charged/(credited) in the consolidated profit and loss account

2023
£

2022
£

Current taxation

UK corporation tax

301,075

218,008

UK corporation tax adjustment to prior periods

(10,781)

10,781

290,294

228,789

Deferred taxation

Arising from origination and reversal of timing differences

6,331

914

Tax expense in the income statement

296,625

229,703

The tax on profit before tax for the year is the same as the standard rate of corporation tax in the UK (2022 - the same as the standard rate of corporation tax in the UK) of 25% (2022 - 19%).

The differences are reconciled below:

2023
£

2022
£

Profit before tax

881,702

1,117,769

Corporation tax at standard rate

220,425

212,376

Effect of expense not deductible in determining taxable profit (tax loss)

104,662

-

Deferred tax expense relating to changes in tax rates or laws

6,796

914

Tax (decrease)/increase from effect of capital allowances and depreciation

(13,852)

5,632

Tax decrease from changes in tax provisions due to legislation

(10,625)

-

Other tax effects for reconciliation between accounting profit and tax expense (income)

(10,781)

10,781

Total tax charge

296,625

229,703

 

Azimuth Motors Holdings Ltd.

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

11

Intangible assets

Group

Goodwill
 £

Total
£

Cost or valuation

At 1 January 2023

15,000

15,000

At 31 December 2023

15,000

15,000

Amortisation

At 1 January 2023

1,500

1,500

Amortisation charge

1,500

1,500

At 31 December 2023

3,000

3,000

Carrying amount

At 31 December 2023

12,000

12,000

At 31 December 2022

13,500

13,500

12

Tangible assets

Group

Land and buildings
£

Furniture, fittings and equipment
 £

Total
£

Cost or valuation

At 1 January 2023

5,875,541

1,040,550

6,916,091

Additions

2,149,481

130,707

2,280,188

At 31 December 2023

8,025,022

1,171,257

9,196,279

Depreciation

At 1 January 2023

678,369

824,935

1,503,304

Charge for the year

351,203

71,723

422,926

At 31 December 2023

1,029,572

896,658

1,926,230

Carrying amount

At 31 December 2023

6,995,450

274,599

7,270,049

At 31 December 2022

5,197,172

215,615

5,412,787

Included within the net book value of land and buildings above is £4,805,123 (2022 - £4,834,873) in respect of freehold land and buildings and £2,190,327 (2022 - £362,299) in respect of long leasehold land and buildings.
 

 

Azimuth Motors Holdings Ltd.

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

Company

Land and buildings
£

Total
£

Cost or valuation

At 1 January 2023

4,882,962

4,882,962

Additions

2,089,500

2,089,500

At 31 December 2023

6,972,462

6,972,462

Depreciation

At 1 January 2023

48,089

48,089

Charge for the year

250,722

250,722

At 31 December 2023

298,811

298,811

Carrying amount

At 31 December 2023

6,673,651

6,673,651

At 31 December 2022

4,834,873

4,834,873

Included within the net book value of land and buildings above is £4,805,123 (2022 - £4,834,873) in respect of freehold land and buildings and £1,868,528 (2022 - £Nil) in respect of long leasehold land and buildings.
 

13

Investment properties

Group

2023
£

At 1 January

1,414,538

At 31 December

1,414,538

There has been no valuation of investment property by an independent valuer.

Company

2023
£

At 1 January

1,414,538

At 31 December

1,414,538

There has been no valuation of investment property by an independent valuer.

14

Investments

Company

2023
£

2022
£

Investments in subsidiaries

968,820

968,820

 

Azimuth Motors Holdings Ltd.

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

Subsidiaries

£

Cost or valuation

At 1 January 2023

968,820

Provision

Carrying amount

At 31 December 2023

968,820

At 31 December 2022

968,820

Details of undertakings

Details of the investments (including principal place of business of unincorporated entities) in which the company holds 20% or more of the nominal value of any class of share capital are as follows:

Undertaking

Registered office

Holding

Proportion of voting rights and shares held

     

2023

2022

Subsidiary undertakings

Advance Motors Ltd

Slough House, 87-89 Farnham Road, Slough, Berkshire, SL1 4UN

England and Wales

Ordinary shares

100%

100%

Subsidiary undertakings

Advance Motors Ltd

The principal activity of Advance Motors Ltd is that of purchasing, selling and repairing motor vehicles and other ancillary services.

15

Stocks

 

Group

Company

2023
£

2022
£

2023
£

2022
£

Raw materials and consumables

400,546

427,748

-

-

Other inventories

3,520,812

5,690,097

-

-

3,921,358

6,117,845

-

-

 

Azimuth Motors Holdings Ltd.

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

16

Debtors

   

Group

Company

Current

Note

2023
£

2022
£

2023
£

2022
£

Trade debtors

 

845,484

291,307

129,600

4,255

Amounts owed by related parties

26

-

-

136,482

1,687,684

Other debtors

 

308,211

253,223

-

-

Prepayments

 

614,436

615,689

-

-

   

1,768,131

1,160,219

266,082

1,691,939

17

Current asset investments

18

Cash and cash equivalents

 

Group

Company

2023
£

2022
£

2023
£

2022
£

Cash at bank

6,609,103

4,738,306

6,035,570

2,503,744

19

Creditors

   

Group

Company

Note

2023
£

2022
£

2023
£

2022
£

Due within one year

 

Trade creditors

 

1,184,132

4,204,973

9,875

18,020

Social security and other taxes

 

306,319

292,928

-

-

Outstanding defined contribution pension costs

 

17,164

27,342

-

-

Other payables

 

4,878,202

4,368,639

4,260,634

3,580,634

Accruals

 

1,699,110

649,358

705,504

412,254

Corporation Tax liability

10

289,203

284,300

67,495

36,557

 

8,374,130

9,827,540

5,043,508

4,047,465

Due after one year

 

Loans and borrowings

23

7,489,972

4,489,986

7,489,972

4,489,986

 

Azimuth Motors Holdings Ltd.

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

20

Provisions for liabilities

Group

Deferred tax
£

Total
£

At 1 January 2023

138,098

138,098

Increase (decrease) in existing provisions

6,331

6,331

At 31 December 2023

144,429

144,429

All of the provision for deferred tax relates to timing differences arising between capital allowances and depreciation.

There are no unused tax losses or unused tax credits.

21

Pension and other schemes

Defined contribution pension scheme

The group operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the group to the scheme and amounted to £72,683 (2022 - £62,642).

Contributions totalling £17,164 (2022 - £27,342) were payable to the scheme at the end of the year and are included in creditors.

22

Share capital

Allotted, called up and fully paid shares

 

2023

2022

 

No.

£

No.

£

Ordinary shares of £1 each

141

141

141

141

         

Rights, preferences and restrictions

Ordinary Shares have the following rights, preferences and restrictions:
Each Ordinary share is entitled to one vote, right to recieve dividends and right to return of par value and to participate in the distribution of any surplus in event of liquidation.

23

Loans and borrowings

 

Group

Company

2023
£

2022
£

2023
£

2022
£

Non-current loans and borrowings

Other borrowings

7,489,972

4,489,986

7,489,972

4,489,986

 

Azimuth Motors Holdings Ltd.

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

The company borrowings are:

1) A loan for £4,490,000. The amount is unsecured and interest charged at 5% per annum. The loan is fully repayable in 2027.

2) Two Loan with another lender, taken out in the year for £2,500,000 and £500,000. These amounts are unsecured and interest charged at 3% per annum. The loans are fully repayable in 2028.

24

Obligations under leases and hire purchase contracts

Group

Operating leases

The total of future minimum lease payments is as follows:

2023
£

2022
£

Not later than one year

417,183

418,210

Later than one year and not later than five years

580,042

866,667

997,225

1,284,877

The amount of non-cancellable operating lease payments recognised as an expense during the year was £654,622 (2022 - £549,033).

Operating leases - lessor

The total of future minimum lease payments is as follows:

2023
£

2022
£

Not later than one year

86,750

85,750

Later than one year and not later than five years

111,750

198,500

198,500

284,250

Total contingent rents recognised as income in the period are £85,490 (2022 - £84,500).

Company

Operating leases - lessor

The total of future minimum lease payments is as follows:

2023
£

2022
£

Not later than one year

426,750

360,750

Later than one year and not later than five years

715,500

359,500

1,142,250

720,250

Total contingent rents recognised as income in the period are £387,833 (2022 - £359,500).

 

Azimuth Motors Holdings Ltd.

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

25

Analysis of changes in net debt

Group

At 1 January 2023
£

Cash Flows
£

Non-cash movement
£

At 31 December 2023
£

Cash and cash equivalents

Cash

4,738,306

1,870,797

-

6,609,103

Borrowings

Long term borrowings

(4,489,986)

(2,999,986)

-

(7,489,972)

Other payables

(3,580,634)

(680,000)

-

(4,260,634)

Accrued Interest

(389,338)

-

(293,250)

(682,588)

(8,459,958)

(3,679,986)

(293,250)

(12,433,194)

 

(3,721,652)

(1,809,189)

(293,250)

(5,824,091)

 

Azimuth Motors Holdings Ltd.

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

26

Related party transactions

Group

Other transactions with the director

The company has an interest free loan from the director. At the balance sheet date the value of this loan was £4,260,634 (2022: £3,580,634).

Company

Summary of transactions with other related parties

Included in loans are two balances with related parties:

1) In the prior year, £4,489,986 was loaned from a company incorporated in the British Virgin Islands and with common directors. At the balance sheet date £4,489,986 (2022: £4,489,986) remained outstanding in respect of the principal loan balance. Included in accruals is an amount of £613,838 (2022: £389,338) relating to unpaid interest on this loan.

2) During the year £2,999,986 was loaned from a company incorporated in Cyprus and with common directors. At the balance sheet date £2,999,986 remaing outstanding in respect of the principal loan balance. Included in accruals is an amount of £68,750 (2022: £nil) relating to unpaid interest on this loan.

27

Parent and ultimate parent undertaking

The ultimate controlling party is A Moiseeva, a director of the company by virtue of holding the majority of the issued share capital of the parent company.

28

Non adjusting events after the financial period

After the balance sheet date the company purchased two additional sites.

On 23 May 2024 a site was purchased in Watford for £3,561,552. On 12 June 2024 a site was purchased in Romford for £4,129,586.