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 |
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: |
Secretary: |
Registered office: |
Registered number: |
Auditors: |
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: |
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. |
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: |
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. |
for and on behalf of |
Statutory Auditor |
178 Buckingham Avenue |
Slough |
Berkshire |
SL1 4RD |
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 |
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 |
Current assets |
Debtors | 16 |
Creditors |
Amounts falling due within one year | 17 |
Net current liabilities | ( |
) | ( |
) |
Total assets less current liabilities |
Capital and reserves |
Called up share capital | 21 |
Retained earnings | 22 |
Shareholders' funds |
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 |
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 |
Changes in equity |
Profit for the year | - | 1,009,397 | 1,009,397 |
Total comprehensive income | - |
Balance at 31 December 2022 |
Changes in equity |
Profit for the year | - | - | - |
Balance at 31 December 2023 |
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 |
2. | Accounting policies |
Basis of preparing the financial statements |
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 |
Plant and machinery | - |
Fixtures and fittings | - |
Computer equipment | - |
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 |
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 |
Net book value |
At 31 December 2023 |
At 31 December 2022 |
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 |
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 |
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 |
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 |
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: | £ | £ |
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 |
Profit for the year |
At 31 December 2023 |
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. |