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Registration number: 09216857

Advance Motors Limited

Annual Report and Financial Statements

for the Year Ended 31 December 2023

 

Advance Motors Limited

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 9

Profit and Loss Account

10

Statement of Comprehensive Income

11

Balance Sheet

12

Statement of Changes in Equity

13

Notes to the Financial Statements

14 to 26

 

Advance Motors Limited

Company Information

Director

A Moiseeva

Registered office

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

Auditors

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

 

Advance Motors Limited

Strategic Report for the Year Ended 31 December 2023

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

Fair review of the business

The Company 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 £6.7m compared to £5.8m 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 (excluding payroll) rose to £3.05m, up by £353k from 2022, primarily driven by increased operational costs. As a result, the company recorded a net operating profit of £982k, 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 company'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.

 

Advance Motors Limited

Strategic Report for the Year Ended 31 December 2023

d) Impact of brexit related risks

It is recognised that the Brexit outcome affects tariff costs on new products supplied to the retail networks over time. This may put added pressure on the new car market in the short term, however, the Director's expectation is that this is likely to give rise to opportunity in the used car sector.

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

Financial KPIs

Unit

2023

2022

New units

3,024

3,160

Used units

2,151

2,138

Approved and authorised by the director on 7 October 2024
 

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

 

Advance Motors Limited

Director's Report for the Year Ended 31 December 2023

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

Principal activity

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

Director of the company

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.

 

Advance Motors Limited

Director's Report for the Year Ended 31 December 2023

Disclosure of information to the auditors

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 auditors are aware of that information. The director confirms that there is no relevant information that she knows of and of which she knows the auditors are unaware.

Approved and authorised by the director on 7 October 2024
 

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

 

Advance Motors Limited

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 company and of the profit or loss of the company 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 United Kingdom 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 company's transactions and disclose with reasonable accuracy at any time the financial position of 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 company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

 

Advance Motors Limited

Independent Auditor's Report to the Members of Advance Motors Limited

Opinion

We have audited the financial statements of Advance Motors Limited (the 'company') for the year ended 31 December 2023, which comprise the Profit and Loss Account, Statement of Comprehensive Income, Balance Sheet, 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 company's affairs as at 31 December 2023 and of its profit for the year then ended;

have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

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

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

 

Advance Motors Limited

Independent Auditor's Report to the Members of Advance Motors Limited

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, or returns adequate for our audit have not been received from branches not visited by us; or

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

certain disclosures of 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:

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.
 

 

Advance Motors Limited

Independent Auditor's Report to the Members of Advance Motors Limited

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.

......................................
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

4 October 2024

 

Advance Motors Limited

Profit and Loss Account for the Year Ended 31 December 2023

Note

2023
£

2022
£

Turnover

3

52,797,411

51,603,873

Cost of sales

 

(46,067,522)

(45,750,648)

Gross profit

 

6,729,889

5,853,225

Administrative expenses

 

(5,747,835)

(4,773,777)

Operating profit

4

982,054

1,079,448

Other interest receivable and similar income

5

5,557

-

Interest payable and similar expenses

6

(111,341)

(67,595)

   

(105,784)

(67,595)

Profit before tax

 

876,270

1,011,853

Tax on profit

10

(239,911)

(193,145)

Profit for the financial year

 

636,359

818,708

The above results were derived from continuing operations.

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

 

Advance Motors Limited

Statement of Comprehensive Income for the Year Ended 31 December 2023

2023
£

2022
£

Profit for the year

636,359

818,708

Total comprehensive income for the year

636,359

818,708

 

Advance Motors Limited

(Registration number: 09216857)
Balance Sheet as at 31 December 2023

Note

2023
£

2022
£

Fixed assets

 

Intangible assets

11

12,000

13,500

Tangible assets

12

596,398

577,914

 

608,398

591,414

Current assets

 

Stocks

13

3,921,358

6,117,845

Debtors

14

1,638,531

1,155,964

Cash at bank and in hand

 

573,533

2,234,562

 

6,133,422

9,508,371

Creditors: Amounts falling due within one year

16

(3,467,104)

(7,467,759)

Net current assets

 

2,666,318

2,040,612

Total assets less current liabilities

 

3,274,716

2,632,026

Provisions for liabilities

17

(144,429)

(138,098)

Net assets

 

3,130,287

2,493,928

Capital and reserves

 

Called up share capital

968,820

968,820

Retained earnings

2,161,467

1,525,108

Shareholders' funds

 

3,130,287

2,493,928

Approved and authorised by the director on 7 October 2024
 

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

 

Advance Motors Limited

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

Share capital
£

Profit and loss account
£

Total
£

At 1 January 2022

968,820

706,400

1,675,220

Profit for the year

-

818,708

818,708

At 31 December 2022

968,820

1,525,108

2,493,928

Share capital
£

Profit and loss account
£

Total
£

At 1 January 2023

968,820

1,525,108

2,493,928

Profit for the year

-

636,359

636,359

At 31 December 2023

968,820

2,161,467

3,130,287

 

Advance Motors Limited

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

These financial statements were authorised for issue by the director on 7 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.

Summary of disclosure exemptions

The company is a qualifying entity for the purposes of FRS102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including the company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

- Section 7 ‘Statement of Cash Flows’ – Presentation of a statement of cash flow and related notes and disclosures.

Going concern

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

 

Advance Motors Limited

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

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 AutoTrader 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 vehicles and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

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 company operates and generates taxable income.

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

Long term leasehold property

over the life of the lease

Plant and machinery

8-33% staight line

Furniture and fittings

5-10% straight line

Office equipment

20-33% straight line

 

Advance Motors Limited

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

Goodwill

Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the company’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.

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

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.

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.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company 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.

 

Advance Motors Limited

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

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.

 

Advance Motors Limited

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

3

Turnover

The analysis of the company'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

7,500,220

6,479,113

Other revenue

56,322

-

Commissions received

1,263,885

1,049,203

52,797,411

51,603,873

4

Operating profit

Arrived at after charging/(crediting)

2023
£

2022
£

Depreciation expense

172,204

160,431

Amortisation expense

1,500

1,500

Operating lease expense - property

921,622

824,033

Profit on disposal of property, plant and equipment

-

(2,750)

5

Other interest receivable and similar income

2023
£

2022
£

Other finance income

5,557

-

6

Interest payable and similar expenses

2023
£

2022
£

Interest expense on other finance liabilities

111,341

67,595

 

Advance Motors Limited

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 company (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 money purchase pension scheme

1

1

9

Auditors' remuneration

2023
£

2022
£

Audit of the financial statements

22,250

21,750

 

Advance Motors Limited

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


 

10

Taxation

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

2023
£

2022
£

Current taxation

UK corporation tax

233,580

192,231

Deferred taxation

Arising from origination and reversal of timing differences

6,331

914

Tax expense in the income statement

239,911

193,145

The tax on profit before tax for the year is lower than 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

876,270

1,011,853

Corporation tax at standard rate

219,068

192,252

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

40,856

-

Deferred tax expense relating to changes in tax rates or laws

6,796

914

Tax decrease from effect of capital allowances and depreciation

(16,610)

(21)

Tax decrease from changes in tax provisions due to legislation

(10,199)

-

Total tax charge

239,911

193,145

 

Advance Motors Limited

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

11

Intangible assets

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

 

Advance Motors Limited

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

12

Tangible assets

Long leasehold land and buildings
£

Fixtures and fittings
£

Plant and machinery
£

Office equipment
£

Total
£

Cost or valuation

At 1 January 2023

992,579

210,367

693,204

136,979

2,033,129

Additions

59,981

1,979

71,962

56,766

190,688

At 31 December 2023

1,052,560

212,346

765,166

193,745

2,223,817

Depreciation

At 1 January 2023

630,280

172,133

524,416

128,386

1,455,215

Charge for the year

100,481

23,442

42,568

5,713

172,204

At 31 December 2023

730,761

195,575

566,984

134,099

1,627,419

Carrying amount

At 31 December 2023

321,799

16,771

198,182

59,646

596,398

At 31 December 2022

362,299

38,234

168,788

8,593

577,914

Included within the net book value of land and buildings above is £321,799 (2022 - £362,299) in respect of long leasehold land and buildings.
 

 

Advance Motors Limited

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

13

Stocks

2023
£

2022
£

Vehicles stock

3,520,812

5,690,097

Parts stock

400,546

427,748

3,921,358

6,117,845

Impairment of stocks

The amount of impairment loss included in profit or loss is £103,047 (2022 - £47,820).

14

Debtors

Current

2023
£

2022
£

Trade debtors

715,884

287,052

Other debtors

308,211

253,223

Prepayments

614,436

615,689

 

1,638,531

1,155,964

15

Cash and cash equivalents

2023
£

2022
£

Cash at bank

573,533

2,234,562

 

Advance Motors Limited

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

16

Creditors

Note

2023
£

2022
£

Due within one year

 

Trade creditors

 

1,174,257

4,186,953

Amounts due to related parties

21

136,482

1,687,684

Social security and other taxes

 

306,319

292,928

Outstanding defined contribution pension costs

 

17,164

27,342

Other payables

 

617,568

788,005

Accruals

 

993,606

237,104

Income tax liability

10

221,708

247,743

 

3,467,104

7,467,759

17

Provisions for liabilities

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.

The net deferred tax liability expected to reverse in 2023 is £nil.

There are no unused tax losses or unused tax credits.

18

Pension and other schemes

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company 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.

 

Advance Motors Limited

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

19

Share capital

Allotted, called up and fully paid shares

 

2023

2022

 

No.

£

No.

£

Ordinary shares of £1 each

920,379

920,379

920,379

920,379

Ordinary A shares of £1 each

48,441

48,441

48,441

48,441

 

968,820

968,820

968,820

968,820

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.

Ordinary A 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.

20

Obligations under leases and hire purchase contracts

Operating leases

The total of future minimum lease payments is as follows:

2023
£

2022
£

Not later than one year

717,983

693,210

Later than one year and not later than five years

929,167

1,554,167

1,647,150

2,247,377

The amount of non-cancellable operating lease payments recognised as an expense during the year was £921,622 (2022 - £824,033).

 

Advance Motors Limited

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

21

Related party transactions

Summary of transactions with parent

The company has taken advantage of the exemption available under Section 33 of FRS 102 and not disclosed related party transactions with wholly owned members of the group.
 

22

Parent and ultimate parent undertaking

The company's immediate parent is Azimuth Motors Holdings Limited, incorporated in England and Wales.

 The most senior parent entity producing publicly available financial statements is Azimuth Motors Holdings Limited. These financial statements are available upon request from Clifton Ingram LLP, 22-24 Broad Street, Wokingham, RG40 1BA.

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