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REGISTERED NUMBER: 04318009 (England and Wales)















Grafise Holdings Limited

Group Strategic Report,

Directors' Report and

Consolidated Financial Statements

for the Year Ended 31 December 2023






Grafise Holdings Limited (Registered number: 04318009)

Contents of the Consolidated Financial Statements
for the year ended 31 December 2023










Page

Company Information 1

Group Strategic Report 2

Directors' Report 4

Independent Auditors' Report 6

Consolidated Income Statement 9

Consolidated Other Comprehensive Income 10

Consolidated Balance Sheet 11

Company Balance Sheet 12

Consolidated Statement of Changes in Equity 13

Company Statement of Changes in Equity 14

Notes to the Consolidated Financial Statements 15


Grafise Holdings Limited

Company Information
for the year ended 31 December 2023







Directors: C A Slaughter
P Nott





Secretary: C A Slaughter





Registered office: 178 Buckingham Avenue
Slough
Berkshire
SL1 4RD





Registered number: 04318009 (England and Wales)





Auditors: Cooper Parry Group Limited
Statutory Auditor
178 Buckingham Avenue
Slough
Berkshire
SL1 4RD

Grafise Holdings Limited (Registered number: 04318009)

Group Strategic Report
for the year ended 31 December 2023


The directors present their strategic report of the company and the group for the year ended 31 December 2023.

We aim to present a balanced and comprehensive review of the development and performance of our business during the year and its position at the year end. Our review is consistent with the size and non-complex nature of our business and is written in the context of the risks and uncertainties we face.

Review of business
The principal activity of Grafise Group Holdings Limited is that of an investment holding company holding investments in companies that trade Volvo motor vehicles. As one of the largest Volvo dealer groups operating in the UK, the group continues to deal in new and used motor vehicles, provide vehicle servicing and repairs and sell spare parts for Volvo vehicles. The group's activities are organised into the following five divisions:

- Sales of new vehicles
- Sales of used vehicles
- Sales of fleet vehicles
- Servicing and repairs
- Sales of spare parts

We consider that our key financial performance indicators are those that communicate the financial performance and strength of the group as a whole, these being turnover and gross margin.

The turnover of the group by division was as follows:
2023 £'000 2022 £'000

Sales of new vehicles 25.200 37,381
Sales of used vehicles 67,631 48,809
Sales of fleet vehicles 35,179 23,055
Servicing and repairs 5,174 5,852
Sales of spare parts 10,054 8,438
Other 3,523 2,484
146,761 127,019


Whilst the business environment in which we operate continues to be challenging with the car market in the UK remaining highly competitive with an increase in choice for consumers via the increasing number of brands available particularly in the EV sector the Directors' remain confident that the company will continue to trade profitably. The Company will therefore continue to invest in improvements to sites, facilities and staff training over the next few years. Despite the inevitable increases in operating costs this will cause we believe it is necessary to enable us to continue to grow our sales volumes and satisfy or exceed our customers' expectations and meet the criteria required of the Volvo Retail Experience.


Grafise Holdings Limited (Registered number: 04318009)

Group Strategic Report
for the year ended 31 December 2023

Principal risks and uncertainties
The company's operations expose it to a variety of financial risks which include credit risk, liquidity risk and interest rate risk. The company has in place risk management policies which are implemented by the company's finance department. These policies, which are consistent with those from the previous year, seek to limit the adverse effects on the financial performance of the company by monitoring levels of debt finance and related finance costs.

Interest rate risk
The company's liquidity position does not place reliance on short term borrowings and hence such perceived risk is considered to be minimal.

Liquidity risk
The company makes efforts to manage the financial risk by the monitoring of cash flow to ensure that the company is able to meet its foreseeable debts as they fall due and to invest any cash assets profitably. A mixture of long-term and short-term debt finance is designed to ensure the company has sufficient funds available for operations and planned expansions.

Credit risk
The company's principal financial assets are stock and trade debtors. The credit risk associated with stock is limited and therefore the principal credit risk arises from its trade debtors.

In order to manage credit risk the directors set limits for customers based on a combination of payment history and third party credit references. These credit limits are reviewed regularly by the directors together with the aged debtors and collection history.

With these risks and uncertainties in mind, we are aware that any plans for the future development of the business may be subject to unforeseen future events outside of our control.

Section 172(1) statement
The directors are accountable to shareholders for the management, performance and long-term success of the group and we consider they are constantly focused on the key stakeholders who are vital and to a great degree depend on the success of the business. These include:-

Our workforce which remains our greatest asset and of which retention and motivation of is essential. The group always aims therefore to be a reasonable employer in its approach to its employees in key areas including pay, benefits, safety, training, health and well-being.

We aim to create a culture of diversity and inclusion and to ensure that employment and progression within the group is based on equality, aptitude and the ability and willingness to work and not on the basis, of race, individual characteristics, creed or political opinion.

The franchise nature of our business means there is constant focus on working with our suppliers and business partners to ensure the balance is maintained of strong relationships and the need to obtain value for the business.

Being a retail business the retention and growth of customers is vital to our success and we take great pride in maintaining the excellent reputation for high standards of business conduct that has taken many years to achieve. Great attention is also given to measuring customer satisfaction and taking action as appropriate to ensure that our standards remains high and continues to improve whether measured against our competitors or internal objectives.

On behalf of the board:





C A Slaughter - Director


2 October 2024

Grafise Holdings Limited (Registered number: 04318009)

Directors' Report
for the year ended 31 December 2023


The directors present their report with the financial statements of the company and the group for the year ended 31 December 2023.

Principal activity
The principal activity of the group in the year under review was that of a motor trader.

Dividends
No dividends will be distributed for the year ended 31 December 2023.

Directors
The directors shown below have held office during the whole of the period from 1 January 2023 to the date of this report.

C A Slaughter
P Nott

Streamlined energy and carbon reporting


Type

2022 Consumed
kwh
2022 Emissions
metric tonnes
CO2e

2023 Consumed
kwh
2023 Emissions
metric tonnes
CO2e
Gas (Scope 1) 801,035 145.9 695,981 127.1
Electric (Scope 2) 680,752 131.6 713,269 147.6
Transport (Scope 1) 1,267,621 295.5 1,197,279 277.11
Total 2,749,408 573.0 2,606,529 551.8

Intensity Ratio 4.5 3.7

The methodology used in the calculation of these disclosures was based on the HM Government Environmental Reporting Guidelines 2019 and the Greenhouse Gas Reporting conversion factors of 2023.

Consumption data was extracted from supplier invoices across all sites.

The intensity ratio has been calculated by applying metric tonnes equivalent per £m turnover (tCO2e/£m)

Energy efficiency actions taken
We continue to make ongoing improvements to plant and equipment as we refurbish our current sites and seek to improve efficiency and reduce the use of energy and waste wherever possible.

Along with the UK's transition to electric vehicles, of which the Volvo brand which we represent is at the forefront, we continue to invest heavily in improvements to our vehicle charging infrastructure across all our sites and have significantly increased our own use of electric and hybrid vehicles. We installed solar energy panels at our Tonbridge location during 2023 and also commenced the installation at Eltham at the end of 2023 which will be active from January 2024.

Statement of directors' responsibilities
The directors are responsible for preparing the Group 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

- select suitable accounting policies and then apply them consistently;
- make judgements and accounting estimates that are reasonable and prudent;
- state whether applicable accounting standards have been followed, subject to any material departures disclosed and
explained in the financial statements;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.


Grafise Holdings Limited (Registered number: 04318009)

Directors' Report
for the year ended 31 December 2023

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

Statement as to disclosure of information to auditors
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

On behalf of the board:





C A Slaughter - Director


2 October 2024

Independent Auditors' Report to the Members of
Grafise Holdings Limited


Opinion
We have audited the financial statements of Grafise Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity 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 of the parent company 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 Auditors' 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 directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

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

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

Other information
The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Directors' Report, but does not include the financial statements and our Auditors' 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 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.

Opinions 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 Group 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 Group Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.

Independent Auditors' Report to the Members of
Grafise Holdings Limited


Matters on which we are required to report by exception
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Directors' 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 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 Statement of Directors' Responsibilities, 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 necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so.

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.

We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates, and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We discussed with the Directors the policies and procedures in place regarding compliance with laws and regulations. We discussed amongst the audit team the identified laws and regulations, and remained alert to any indications of non-compliance.

During the audit we focussed on laws and regulations which could reasonably be expected to give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006 and UK tax legislation.

Our procedures in relation to fraud, included but were not limited to: inquires of management whether they have any knowledge of any actual, suspected or alleged fraud, and discussions amongst the audit team regarding risk of fraud such as opportunities for fraudulent manipulation of financial statements. We determined that the principal risks related to posting manual journal entries to manipulate financial performance and management bias through judgements in accounting estimates and challenged the assumptions and judgements made by management in its significant accounting estimates. We also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud. Our tests included agreeing the financial statement disclosures to underlying supporting documentation.

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.

Independent Auditors' Report to the Members of
Grafise Holdings Limited


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 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.




Jane Wills (Senior Statutory Auditor)
for and on behalf of Cooper Parry Group Limited
Statutory Auditor
178 Buckingham Avenue
Slough
Berkshire
SL1 4RD

2 October 2024

Grafise Holdings Limited (Registered number: 04318009)

Consolidated
Income Statement
for the year ended 31 December 2023

2023 2022
Notes £ £

Turnover 3 146,760,782 127,018,914

Cost of sales (137,323,214 ) (117,045,185 )
Gross profit 9,437,568 9,973,729

Administrative expenses (5,279,904 ) (6,002,589 )
4,157,664 3,971,140

Other operating income 4 1,191,666 872,334
Operating profit 5,349,330 4,843,474

Interest receivable and similar income 91,799 11,999
5,441,129 4,855,473

Interest payable and similar expenses 7 (203,065 ) (94,472 )
Profit before taxation 8 5,238,064 4,761,001

Tax on profit 10 (535,709 ) (689,370 )
Profit for the financial year 4,702,355 4,071,631
Profit attributable to:
Owners of the parent 4,702,355 4,071,631

Grafise Holdings Limited (Registered number: 04318009)

Consolidated
Other Comprehensive Income
for the year ended 31 December 2023

2023 2022
Notes £ £

Profit for the year 4,702,355 4,071,631


Other comprehensive income - -
Total comprehensive income for the year 4,702,355 4,071,631

Total comprehensive income attributable to:
Owners of the parent 4,702,355 4,071,631

Grafise Holdings Limited (Registered number: 04318009)

Consolidated Balance Sheet
31 December 2023

2023 2022
Notes £ £ £ £
Fixed assets
Intangible assets 12 - -
Tangible assets 13 2,902,563 1,839,038
Investments 14 239,513 239,513
3,142,076 2,078,551

Current assets
Stocks 15 11,512,525 7,672,973
Debtors 16 16,665,510 14,028,624
Cash in hand 5,858,856 6,485,289
34,036,891 28,186,886
Creditors
Amounts falling due within one year 17 11,762,395 11,312,666
Net current assets 22,274,496 16,874,220
Total assets less current liabilities 25,416,572 18,952,771

Creditors
Amounts falling due after more than one
year

18

(1,817,071

)

(142,083

)

Provisions for liabilities 20 (1,551,179 ) (1,464,721 )
Net assets 22,048,322 17,345,967

Capital and reserves
Called up share capital 21 9,618 9,618
Capital redemption reserve 22 20,000 20,000
Retained earnings 22 22,018,704 17,316,349
Shareholders' funds 22,048,322 17,345,967

The financial statements were approved by the Board of Directors and authorised for issue on 2 October 2024 and were signed on its behalf by:





C A Slaughter - Director


Grafise Holdings Limited (Registered number: 04318009)

Company Balance Sheet
31 December 2023

2023 2022
Notes £ £ £ £
Fixed assets
Intangible assets 12 - -
Tangible assets 13 - -
Investments 14 1,453,561 1,453,561
1,453,561 1,453,561

Current assets
Debtors 16 2,455,344 2,455,344

Creditors
Amounts falling due within one year 17 2,889,890 2,889,890
Net current liabilities (434,546 ) (434,546 )
Total assets less current liabilities 1,019,015 1,019,015

Capital and reserves
Called up share capital 21 9,618 9,618
Retained earnings 22 1,009,397 1,009,397
Shareholders' funds 1,019,015 1,019,015

Company's profit for the financial year - 1,009,397

The financial statements were approved by the Board of Directors and authorised for issue on 2 October 2024 and were signed on its behalf by:





C A Slaughter - Director


Grafise Holdings Limited (Registered number: 04318009)

Consolidated Statement of Changes in Equity
for the year ended 31 December 2023

Called up Capital
share Retained redemption Total
capital earnings reserve equity
£ £ £ £
Balance at 1 January 2022 9,618 13,244,718 20,000 13,274,336

Changes in equity
Total comprehensive income - 4,071,631 - 4,071,631
Balance at 31 December 2022 9,618 17,316,349 20,000 17,345,967

Changes in equity
Total comprehensive income - 4,702,355 - 4,702,355
Balance at 31 December 2023 9,618 22,018,704 20,000 22,048,322

Grafise Holdings Limited (Registered number: 04318009)

Company Statement of Changes in Equity
for the year ended 31 December 2023

Called up
share Retained Total
capital earnings equity
£ £ £
Balance at 1 January 2022 9,618 - 9,618

Changes in equity
Profit for the year - 1,009,397 1,009,397
Total comprehensive income - 1,009,397 1,009,397
Balance at 31 December 2022 9,618 1,009,397 1,019,015

Changes in equity
Profit for the year - - -
Balance at 31 December 2023 9,618 1,009,397 1,019,015

Grafise Holdings Limited (Registered number: 04318009)

Notes to the Consolidated Financial Statements
for the year ended 31 December 2023


1. Statutory information

Grafise Holdings Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the General Information page.

2. Accounting policies

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

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

Going concern
The directors have a reasonable expectation that the company and group have adequate resources to continue in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis of accounting in preparing the annual financial statements.

Financial Reporting Standard 102 - reduced disclosure exemptions
The group has taken advantage of the following disclosure exemption in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

the requirements of Section 7 Statement of Cash Flows.

Basis of consolidation
The financial statements consolidate the accounts of Grafise Holdings Limited and all of its subsidiary undertakings ('subsidiaries').

Significant judgements and estimates
The preparation of financial statements in conformity with generally accepted accounting practice requires management to make estimates and judgement that affect the reported amounts of assets and liabilities as well as the disclosure of contingent assets and liabilities at the balance sheet date and the reported amounts of revenues and expenses during the reporting period.

There is estimation uncertainty in calculating bad debt provisions. A full line by line review of trade debtors is carried out at the end of each month. Whilst every attempt is made to ensure that the bad debt provisions are as accurate as possible, there remains a risk that the provision do not match the level of debts which ultimately prove to be uncollectable.

There is also estimation uncertainty in calculating stock provisions. Slow moving and obsolete stocks are monitored during the year. Whilst every attempt is made to ensure that the stock provisions are as accurate as possible, there remain a risk that the provisions do not match the ultimate unrealised value of stock held.

There is estimation uncertainty in calculating estimated useful life of tangible and intangible fixed assets. Estimated useful lives are based on management's knowledge of historic useful life of similar assets and industry averages. Whilst every attempt is made to ensure that the depreciation provision is as accurate as possible, there remains a risk that the depreciation provision does not match the actual life of the asset.

There is also estimation uncertainty in calculating deferred tax liability due to temporary timing differences. Unrelieved tax losses and other deferred tax assets are only recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Grafise Holdings Limited (Registered number: 04318009)

Notes to the Consolidated Financial Statements - continued
for the year ended 31 December 2023


2. Accounting policies - continued

Turnover
Turnover comprises revenue recognised by the company in respect of goods and services supplied during the year, exclusive of Value Added Tax and trade discounts.

Sales of motor vehicles and accessories are recognised on the earlier of full payment by, or delivery date to, the customer together with associated manufacturer vehicle bonus income. Any other manufacturer income in relation to achieving targets is recognised on an accrual basis. Servicing revenue is recognised on the completion of the agreed work.

Intangible assets
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Goodwill
Goodwill is the difference between amounts paid on the acquisition of a business and the fair value of the identifiable assets and liabilities. It is amortised to the profit and loss account over its estimated economic life.

Amortisation on goodwill is provided on a 10% straight line basis.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Plant and machinery - 15% on cost
Fixtures and fittings - 10% on cost
Computer equipment - 25% on cost

Stocks
Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads.

Hire purchase and leasing commitments
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate.

Investments
Investments held as fixed assets are shown at cost less provision for impairment.

Basic financial instruments
A financial asset held as an equity instrument is recognised initially at the transaction price (including transaction costs).

At the end of each reporting period, unlisted equity investments are recorded at fair value, where appropriate, or at cost less impairment if their fair value cannot be reliably measured. Objective evidence of the impairment of financial assets is assessed at each period end and any impairment loss recognised in the profit or loss immediately. Impairment loss is calculated as the difference between the carrying amount of the instrument and the best estimate of the cash flows expected to be derived from the asset (including sales proceeds if sold) at the balance sheet date.

Investment income is recognised in the financial statements when the company becomes entitled to its share of profits from the financial instrument.

Grafise Holdings Limited (Registered number: 04318009)

Notes to the Consolidated Financial Statements - continued
for the year ended 31 December 2023


2. Accounting policies - continued

Financial instruments
Financial assets and financial liabilities are recognised in the balance sheet when the company becomes a party to the contractual provisions of the instrument.

Trade and other debtors and creditors are classified as basic financial instruments and measured at initial recognition at transaction price. Debtors and creditors are subsequently measured at amortised cost using the effective interest rate method. A provision is established when there is objective evidence that the company will not be able to collect all amounts due.

Cash and cash equivalents are classified as basic financial instruments and comprise cash in hand and at bank and bank overdrafts which are an integral part of the company's cash management.

Financial liabilities and equity instruments issued by the company are classified in accordance with the substance of the contractual arrangements entered into and the definitions of a financial liability and an equity instrument. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Provisions
A provision is recognised where there is a present obligation, whether legal or constructive, as a result of a past event for which it is probable that a transfer of economic benefits will be required to settle the obligation.

3. Turnover

The turnover and profit before taxation are attributable to the one principal activity of the group.

All turnover arose within the United Kingdom.

4. Other operating income
2023 2022
£ £
Sundry receipts 223,200 -
Finance commission 968,466 872,334
1,191,666 872,334

5. Employees and directors
2023 2022
£ £
Wages and salaries 5,472,714 5,293,296
Social security costs 390,746 387,801
Other pension costs 105,714 99,112
5,969,174 5,780,209

The average number of employees during the year was as follows:
2023 2022

Sales 52 50
Service and parts 84 93
Administration 22 22
158 165

The average number of employees by undertakings that were proportionately consolidated during the year was 158 (2022 - 165 ) .

Grafise Holdings Limited (Registered number: 04318009)

Notes to the Consolidated Financial Statements - continued
for the year ended 31 December 2023


6. Directors' emoluments
2023 2022
£ £
Directors' remuneration 191,550 228,619
Directors' pension contributions to money purchase schemes 23,967 20,156

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 1 1

7. Interest payable and similar expenses
2023 2022
£ £
Other loan interest payable 203,065 94,472

8. Profit before taxation

The profit is stated after charging:

2023 2022
£ £
Hire of plant and machinery 8,524 9,488
Other operating leases 1,083,728 986,031
Depreciation - owned assets 292,896 111,203

9. Auditors' remuneration

2023 £ 2022 £

Fees payable to the company's auditor for the audit of the company's
annual accounts

4,725


4,500
Fees payable to the company's auditor in respect of the auditing of
accounts of associates of the company

44,104


42,004
Fees payable to the company's auditor in respect of taxation compliance
and other services

3,750


3,750
52,579 50,259

10. Taxation

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2023 2022
£ £
Current tax:
UK corporation tax 535,150 544,382
Under/(over) tax provision 559 -
Total current tax 535,709 544,382

Deferred tax - 144,988
Tax on profit 535,709 689,370

Grafise Holdings Limited (Registered number: 04318009)

Notes to the Consolidated Financial Statements - continued
for the year ended 31 December 2023


10. Taxation - continued

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

2023 2022
£ £
Profit before tax 5,238,064 4,761,001
Profit multiplied by the standard rate of corporation tax in the UK of 25 %
(2022 - 19 %)

1,309,516

904,590

Effects of:
Expenses not deductible for tax purposes 21,615 22,772
Income not taxable for tax purposes (215,587 ) -
Capital allowances in excess of depreciation (21,546 ) -

Group relief (525,186 ) (296,156 )
Prior year (over)/under provision 559 -
Impact of change in Corporation Tax rates on deferred tax (33,662 ) 58,164
Total tax charge 535,709 689,370

11. Individual income statement

As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements.


12. Intangible fixed assets

Group
Goodwill
£
Cost
At 1 January 2023
and 31 December 2023 658,485
Amortisation
At 1 January 2023
and 31 December 2023 658,485
Net book value
At 31 December 2023 -
At 31 December 2022 -

Grafise Holdings Limited (Registered number: 04318009)

Notes to the Consolidated Financial Statements - continued
for the year ended 31 December 2023


13. Tangible fixed assets

Group
Fixtures
Plant and and Computer
machinery fittings equipment Totals
£ £ £ £
Cost
At 1 January 2023 1,259,095 2,279,853 232,735 3,771,683
Additions 17,112 1,338,014 1,295 1,356,421
At 31 December 2023 1,276,207 3,617,867 234,030 5,128,104
Depreciation
At 1 January 2023 1,028,587 689,023 215,035 1,932,645
Charge for year 100,963 188,980 2,953 292,896
At 31 December 2023 1,129,550 878,003 217,988 2,225,541
Net book value
At 31 December 2023 146,657 2,739,864 16,042 2,902,563
At 31 December 2022 230,508 1,590,830 17,700 1,839,038

14. Fixed asset investments

Group
Other
investments
£
Cost
At 1 January 2023
and 31 December 2023 239,513
Net book value
At 31 December 2023 239,513
At 31 December 2022 239,513
Company
Shares in
group
undertakings
£
Cost
At 1 January 2023
and 31 December 2023 1,453,561
Net book value
At 31 December 2023 1,453,561
At 31 December 2022 1,453,561


Principal subsidiaries

Company name Country % Shareholding Description
Grafise Limited England and Wales 100 Volvo dealership
Squire Furneaux Maidenhead Limited England and Wales 100 Non-trading
Squire Furneaux Cobham Limited England and Wales 100 Volvo dealership

Grafise Holdings Limited (Registered number: 04318009)

Notes to the Consolidated Financial Statements - continued
for the year ended 31 December 2023


15. Stocks

Group
2023 2022
£ £
Goods for resale 11,512,525 7,672,973

16. Debtors: amounts falling due within one year

Group Company
2023 2022 2023 2022
£ £ £ £
Trade debtors 3,249,028 2,263,526 - -
Amounts owed by group undertakings 10,373,209 8,334,209 2,455,344 2,455,344
Other debtors 1,464,041 1,642,328 - -
Tax 819,244 719,075 - -
Prepayments and accrued income 759,988 1,069,486 - -
16,665,510 14,028,624 2,455,344 2,455,344

17. Creditors: amounts falling due within one year

Group Company
2023 2022 2023 2022
£ £ £ £
Other loans (see note 19) 507,044 81,330 - -
Trade creditors 5,252,919 4,462,688 - -
Amounts owed to group undertakings 3,019,890 3,019,890 2,889,890 2,889,890
Amounts owed to participating interests 77,509 77,509 - -
Tax 249,997 247,819 - -
Social security and other taxes 377,926 477,122 - -
VAT 477,836 340,138 - -
Other creditors 1,152,491 1,447,171 - -
Accruals and deferred income 646,783 1,158,999 - -
11,762,395 11,312,666 2,889,890 2,889,890

The bank loan is secured by a cross guarantee with other group companies and legal charges over the properties held by group companies.

Within other creditors is a vehicle funding balance of £937,791 (2022: £1,338,295) which is secured over the stock items to which it relates.

18. Creditors: amounts falling due after more than one year

Group
2023 2022
£ £
Other loans (see note 19) 1,817,071 70,000
Accruals and deferred income - 72,083
1,817,071 142,083

The bank loan is secured by a cross guarantee with other group companies and legal charges over the properties held by group companies.

Grafise Holdings Limited (Registered number: 04318009)

Notes to the Consolidated Financial Statements - continued
for the year ended 31 December 2023


19. Loans

An analysis of the maturity of loans is given below:

Group
2023 2022
£ £
Amounts falling due within one year or on demand:
Other loans 507,044 81,330
Amounts falling due between one and two years:
Other loans - 1-2 years 355,714 70,000
Amounts falling due between two and five years:
Other loans - 2-5 years 1,008,976 -
Amounts falling due in more than five years:
Repayable by instalments
Other loans more 5yrs instal 452,381 -

Other loans is secured by a cross guarantee with other group companies.

20. Provisions for liabilities

Group
2023 2022
£ £
Deferred tax
Accelerated capital allowances 242,348 242,348

Other provisions 1,308,831 1,222,373

Aggregate amounts 1,551,179 1,464,721

Group
Deferred Other
tax provisions
£ £
Balance at 1 January 2023 242,348 1,222,373
Balance at 31 December 2023 242,348 1,222,373

The other provision relates to a Unfunded Unapproved Retirement Benefit pension for the directors.

21. Called up share capital

Allotted and issued:
Number: Class: Nominal 2023 2022
value: £ £
9,618 Ordinary £1 9,618 9,618

Grafise Holdings Limited (Registered number: 04318009)

Notes to the Consolidated Financial Statements - continued
for the year ended 31 December 2023


22. Reserves

Group
Capital
Retained redemption
earnings reserve Totals
£ £ £

At 1 January 2023 17,316,349 20,000 17,336,349
Profit for the year 4,702,355 - 4,702,355
At 31 December 2023 22,018,704 20,000 22,038,704

Company
Retained
earnings
£

At 1 January 2023 1,009,397
Profit for the year -
At 31 December 2023 1,009,397


23. Pension commitments

The Group operates a defined contribution pension scheme for the benefit of directors and senior employees. The assets of the scheme are administered by trustees in funds which are independent from those of the Group.

The total contribution paid in the year amounted to £69,765 (2022: £66,208).

24. Capital commitments

At the year end the group had capital commitments of £643,107 (2022: £1,500,000).

25. Guarantees

Grafise Holdings Limited and its subsidiaries provided a cross guarantee to National Westminster Bank PLC in respect of C S Astra Limited bank loans up to £3,900,000.

26. Related party disclosures

The company has taken advantage of the exemption available under FRS102 not to disclose transactions with 100% group subsidiaries.

Included in debtors is £11,049,542 (2022: £8,334,209) owed by the parent company. Included in creditors is £2,889,890 (2022: £2,889,890) owed to the parent company.

The company also rents a property from Squire Furneaux LLP, a subsidiary of the parent company. During the course of the year, the company was charged £150,000 (2020: £150,000) by the LLP. Included in creditors at the year end is £130,000 owed to the LLP.

Included in creditors is £77,509 (2022: £77,509) owed to companies controlled by a director. There was no movement on these balance during the year.

27. Ultimate controlling party

The immediate parent company is CS Astra Limited.

The ultimate controlling party is the Slaughter family.