Caseware UK (AP4) 2023.0.135 2023.0.135 2023-07-312023-07-31At each reporting date the company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount. At each reporting date the Company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.0Not depreciated 50 years straight lineNot depreciated 33% straight line 10% straight line, once in production28826902410117954747232170833117183033524253832287356308844747921223No description of principal activitytruetruetruetruetrue372022-04-01false93truefalse 06666769 2022-04-01 2023-07-31 06666769 2021-04-01 2022-03-31 06666769 2023-07-31 06666769 2022-03-31 06666769 2021-04-01 06666769 3 2022-04-01 2023-07-31 06666769 3 2021-04-01 2022-03-31 06666769 4 2022-04-01 2023-07-31 06666769 4 2021-04-01 2022-03-31 06666769 5 2021-04-01 2022-03-31 06666769 1 2022-04-01 2023-07-31 06666769 e:CompanySecretary1 2022-04-01 2023-07-31 06666769 e:Director1 2022-04-01 2023-07-31 06666769 e:Director2 2022-04-01 2023-07-31 06666769 e:Director2 2023-07-31 06666769 e:Director3 2022-04-01 2023-07-31 06666769 e:Director4 2022-04-01 2023-07-31 06666769 e:Director5 2022-04-01 2023-07-31 06666769 e:Director5 2023-07-31 06666769 e:RegisteredOffice 2022-04-01 2023-07-31 06666769 d:Buildings 2022-04-01 2023-07-31 06666769 d:Buildings 2023-07-31 06666769 d:Buildings 2022-03-31 06666769 d:Buildings d:OwnedOrFreeholdAssets 2022-04-01 2023-07-31 06666769 d:Buildings d:LongLeaseholdAssets 2022-04-01 2023-07-31 06666769 d:Buildings d:LongLeaseholdAssets 2023-07-31 06666769 d:Buildings d:LongLeaseholdAssets 2022-03-31 06666769 d:PlantMachinery 2022-04-01 2023-07-31 06666769 d:PlantMachinery 2023-07-31 06666769 d:PlantMachinery 2022-03-31 06666769 d:PlantMachinery d:OwnedOrFreeholdAssets 2022-04-01 2023-07-31 06666769 d:MotorVehicles 2022-04-01 2023-07-31 06666769 d:MotorVehicles 2023-07-31 06666769 d:MotorVehicles 2022-03-31 06666769 d:MotorVehicles d:OwnedOrFreeholdAssets 2022-04-01 2023-07-31 06666769 d:FurnitureFittings 2022-04-01 2023-07-31 06666769 d:FurnitureFittings 2023-07-31 06666769 d:FurnitureFittings 2022-03-31 06666769 d:FurnitureFittings d:OwnedOrFreeholdAssets 2022-04-01 2023-07-31 06666769 d:ComputerEquipment 2022-04-01 2023-07-31 06666769 d:ComputerEquipment 2023-07-31 06666769 d:ComputerEquipment 2022-03-31 06666769 d:ComputerEquipment d:OwnedOrFreeholdAssets 2022-04-01 2023-07-31 06666769 d:OtherPropertyPlantEquipment 2022-04-01 2023-07-31 06666769 d:OtherPropertyPlantEquipment 2023-07-31 06666769 d:OtherPropertyPlantEquipment 2022-03-31 06666769 d:OtherPropertyPlantEquipment d:OwnedOrFreeholdAssets 2022-04-01 2023-07-31 06666769 d:OwnedOrFreeholdAssets 2022-04-01 2023-07-31 06666769 d:DevelopmentCostsCapitalisedDevelopmentExpenditure 2022-04-01 2023-07-31 06666769 d:DevelopmentCostsCapitalisedDevelopmentExpenditure 2023-07-31 06666769 d:DevelopmentCostsCapitalisedDevelopmentExpenditure 2022-03-31 06666769 d:CurrentFinancialInstruments 2023-07-31 06666769 d:CurrentFinancialInstruments 2022-03-31 06666769 d:Non-currentFinancialInstruments 2023-07-31 06666769 d:Non-currentFinancialInstruments 2022-03-31 06666769 d:CurrentFinancialInstruments d:WithinOneYear 2023-07-31 06666769 d:CurrentFinancialInstruments d:WithinOneYear 2022-03-31 06666769 d:Non-currentFinancialInstruments d:AfterOneYear 2023-07-31 06666769 d:Non-currentFinancialInstruments d:AfterOneYear 2022-03-31 06666769 d:UKTax 2022-04-01 2023-07-31 06666769 d:UKTax 2021-04-01 2022-03-31 06666769 d:ShareCapital 2022-04-01 2023-07-31 06666769 d:ShareCapital 2023-07-31 06666769 d:ShareCapital 2021-04-01 2022-03-31 06666769 d:ShareCapital 2022-03-31 06666769 d:ShareCapital 2021-04-01 06666769 d:RevaluationReserve 2022-04-01 2023-07-31 06666769 d:RevaluationReserve 2023-07-31 06666769 d:RevaluationReserve 2021-04-01 2022-03-31 06666769 d:RevaluationReserve 2022-03-31 06666769 d:RevaluationReserve 2021-04-01 06666769 d:RevaluationReserve 5 2021-04-01 2022-03-31 06666769 d:RetainedEarningsAccumulatedLosses 2022-04-01 2023-07-31 06666769 d:RetainedEarningsAccumulatedLosses 2023-07-31 06666769 d:RetainedEarningsAccumulatedLosses 2021-04-01 2022-03-31 06666769 d:RetainedEarningsAccumulatedLosses 2022-03-31 06666769 d:RetainedEarningsAccumulatedLosses 2021-04-01 06666769 d:AcceleratedTaxDepreciationDeferredTax 2023-07-31 06666769 d:AcceleratedTaxDepreciationDeferredTax 2022-03-31 06666769 d:TaxLossesCarry-forwardsDeferredTax 2023-07-31 06666769 d:TaxLossesCarry-forwardsDeferredTax 2022-03-31 06666769 d:OtherDeferredTax 2023-07-31 06666769 d:OtherDeferredTax 2022-03-31 06666769 e:FRS102 2022-04-01 2023-07-31 06666769 e:Audited 2022-04-01 2023-07-31 06666769 e:FullAccounts 2022-04-01 2023-07-31 06666769 e:PrivateLimitedCompanyLtd 2022-04-01 2023-07-31 06666769 d:DevelopmentCostsCapitalisedDevelopmentExpenditure d:ExternallyAcquiredIntangibleAssets 2022-04-01 2023-07-31 06666769 2 2022-04-01 2023-07-31 06666769 5 2022-04-01 2023-07-31 iso4217:GBP xbrli:pure

Registered number: 06666769









GORDON MURRAY AUTOMOTIVE LIMITED









DIRECTORS' REPORT AND FINANCIAL STATEMENTS

FOR THE 16 MONTH PERIOD ENDED 31 JULY 2023

 
GORDON MURRAY AUTOMOTIVE LIMITED
 
 
COMPANY INFORMATION


Directors
Prof. I G Murray 
J A McLaren (resigned 12 June 2023)
C-P E M Forster 
J Feiber 
P Lee (appointed 16 March 2023)




Company secretary
J M Fraser (appointed 30 April 2024)



Registered number
06666769



Registered office
Wharfside
Broadford Park Business Centre

Shalford

Guildford

GU4 8EP




Independent auditors
Forvis Mazars LLP
Chartered Accountants & Statutory Auditor

2 Chamberlain Square

Birmingham

B3 3AX





 
GORDON MURRAY AUTOMOTIVE LIMITED
 

CONTENTS



Page
Directors' Report
1 - 2
Independent Auditors' Report
3 - 6
Statement of Comprehensive Income
7
Balance Sheet
8 - 9
Statement of Changes in Equity
10
Notes to the Financial Statements
11 - 26


 
GORDON MURRAY AUTOMOTIVE LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE 16 MONTH PERIOD ENDED 31 JULY 2023

The directors present their report and the financial statements for the 16 month period ended 31 July 2023 (2022: year ended 31 March 2022). The Company changed its accounting period to coincide with the acquisition.

Directors' responsibilities statement

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

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


select suitable accounting policies for the Company's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

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

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

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

Results and dividends

The loss for the 16 month period, after taxation, amounted to £7,756,899 (2022 - profit £309,879).

Directors

The directors who served during the 16 month period and to the date of signing were:

Prof. I G Murray 
J A McLaren (resigned 12 June 2023)
C-P E M Forster 
J Feiber 
P Lee (appointed 16 March 2023)

Going Concern
The Company is a subsidiary of Gordon Murray Group Limited and relies on its own performance and cash, as well as those of Gordon Murray Group and its subsidiaries ('the Group'), to meet its day to day working capital requirements. The Company generated a loss of £7,756,899 (2022 profit of: £309,879) and had net assets of £5,555,730 (2022: £13,312,629).
The Company will continue to receive support from the rest of the Gordon Murray Group Limited. 

Page 1

 
GORDON MURRAY AUTOMOTIVE LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE 16 MONTH PERIOD ENDED 31 JULY 2023

Disclosure of information to auditors

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

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

Post balance sheet events

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

Auditors

The auditorsForvis Mazars LLPwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

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





P Lee
Director

Date: 2 October 2024

Page 2

 
GORDON MURRAY AUTOMOTIVE LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF GORDON MURRAY AUTOMOTIVE LIMITED
 

Opinion

We have audited the financial statements of Gordon Murray Automotive Limited (the ‘Company’) for the 16 month period ended 31 July 2023 which comprise the Statement of Comprehensive Income, the Balance Sheet, the 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 FRS 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 July 2023 and of its loss for the 16 month period 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’s 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 directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the directors' report and financial statements, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information contained within the directors' report. 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.
Page 3

 
GORDON MURRAY AUTOMOTIVE LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF GORDON MURRAY AUTOMOTIVE LIMITED
 

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Directors' Report has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

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

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

adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies’ exemption in preparing the Directors' Report and from the requirement to prepare a Strategic Report.

Responsibilities of Directors

As explained more fully in the Directors' Responsibilities Statement set out on page 1, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors intend either to liquidate the Company or to cease operations, or have no realistic alternative but to do so.
Page 4

 
GORDON MURRAY AUTOMOTIVE LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF GORDON MURRAY AUTOMOTIVE LIMITED
 

Auditor's 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.
 
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. 

Based on our understanding of the company and its industry, we considered that non-compliance with the following laws and regulations might have a material effect on the financial statements: employment regulation, health and safety regulation and anti-money laundering regulation.

To help us identify instances of non-compliance with these laws and regulations, and in identifying and assessing the risks of material misstatement in respect to non-compliance, our procedures included, but were not limited to:
Inquiring of management and, where appropriate, those charged with governance, as to whether the company is in compliance with laws and regulations, and discussing their policies and procedures regarding compliance with laws and regulations;
Inspecting correspondence, if any, with relevant licensing or regulatory authorities;
Communicating identified laws and regulations to the engagement team and remaining alert to any indications of non-compliance throughout our audit; and
Considering the risk of acts by the company which were contrary to applicable laws and regulations, including fraud.  

We also considered those laws and regulations that have a direct effect on the preparation of the financial statements, such as tax legislation, pension legislation, the Companies Act 2006. 

In addition, we evaluated the directors' and management’s incentives and opportunities for fraudulent manipulation of the financial statements, including the risk of override of controls, and determined that the principal risks were related to posting manual journal entries to manipulate financial performance, management bias through judgements and assumptions in significant accounting estimates, revenue recognition (which we pinpointed to the cut-off assertion, and significant one-off or unusual transactions.

Our audit procedures in relation to fraud included but were not limited to:
Making enquiries of the directors and management on whether they had knowledge of any actual, suspected or alleged fraud;
Gaining an understanding of the internal controls established to mitigate risks related to fraud;
Discussing amongst the engagement team the risks of fraud; and
Addressing the risks of fraud through management override of controls by performing journal entry testing.

There are inherent limitations in the audit procedures described above and the primary responsibility for the prevention and detection of irregularities including fraud rests with management. As with any audit, there remained a risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal controls.
Page 5

 
GORDON MURRAY AUTOMOTIVE LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF GORDON MURRAY AUTOMOTIVE LIMITED
 

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 auditor’s report.

Use of the audit 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.




Elisa Howe (Senior statutory auditor)
  
for and on behalf of
Forvis Mazars LLP
Chartered Accountants and Statutory Auditor 
2 Chamberlain Square
Birmingham
B3 3AX

3 October 2024
Page 6

 
GORDON MURRAY AUTOMOTIVE LIMITED
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE 16 MONTH PERIOD ENDED 31 JULY 2023

16 month period ended 31 July 2023
Year ended 31 March 2022
Note
£
£

  

Cost of sales
  
(2,029,597)
-

Gross (loss)/profit
  
(2,029,597)
-

Administrative expenses
  
(12,460,371)
(2,399,948)

Other operating income
 4 
1,388,370
2,173,428

Operating loss
  
(13,101,598)
(226,520)

Interest receivable and similar income
 7 
121,756
25,941

Interest payable and similar expenses
 8 
(242,037)
-

Loss before tax
  
(13,221,879)
(200,579)

Tax on loss
 9 
5,464,980
510,458

(Loss)/profit for the financial 16 month period
  
(7,756,899)
309,879

Other comprehensive income for the 16 month period
  

Gain on revaluation of land and buildings
  
-
6,160,943

Other comprehensive income for the 16 month period
  
-
6,160,943

Total comprehensive income for the 16 month period
  
(7,756,899)
6,470,822

All amount relate to continuing operations.

The notes on pages 11 to 26 form part of these financial statements.

Page 7

 
GORDON MURRAY AUTOMOTIVE LIMITED
REGISTERED NUMBER: 06666769

BALANCE SHEET
AS AT 31 JULY 2023

31 July
31 March
2023
2022
Note
£
£

Fixed assets
  

Intangible assets
 10 
244,712,134
143,166,482

Tangible assets
 11 
49,988,738
25,625,498

  
294,700,872
168,791,980

Current assets
  

Stocks
 12 
34,666,451
-

Debtors: amounts falling due within one year
 13 
42,429,234
26,932,625

Bank
  
40,102
40,784,191

  
77,135,787
67,716,816

Creditors: amounts falling due within one year
 15 
(74,974,056)
(46,397,966)

Net current assets
  
 
 
2,161,731
 
 
21,318,850

Total assets less current liabilities
  
296,862,603
190,110,830

Creditors: amounts falling due after more than one year
 16 
(288,604,204)
(175,448,656)

Provisions for liabilities
  

Deferred tax
 17 
(2,702,669)
(1,349,545)

  
 
 
(2,702,669)
 
 
(1,349,545)

Net assets
  
5,555,730
13,312,629


Capital and reserves
  

Called up share capital 
  
1
1

Revaluation reserve
  
6,160,943
6,160,943

Profit and loss account
  
(605,214)
7,151,685

  
5,555,730
13,312,629


Page 8

 
GORDON MURRAY AUTOMOTIVE LIMITED
REGISTERED NUMBER: 06666769
    
BALANCE SHEET (CONTINUED)
AS AT 31 JULY 2023

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




P Lee
Director

Date: 2 October 2024

The notes on pages 11 to 26 form part of these financial statements.

Page 9

 

 
GORDON MURRAY AUTOMOTIVE LIMITED


 

STATEMENT OF CHANGES IN EQUITY
FOR THE 16 MONTH PERIOD ENDED 31 JULY 2023



Called up share capital
Revaluation reserve
Profit and loss account
Total equity


£
£
£
£



At 1 April 2021
1
-
6,841,806
6,841,807



Comprehensive income for the year


Profit for the year
-
-
309,879
309,879


Revaluation of tangible fixed assets
-
6,160,943
-
6,160,943

Total comprehensive income for the year
-
6,160,943
309,879
6,470,822





At 1 April 2022
1
6,160,943
7,151,685
13,312,629



Comprehensive income for the 16 month period


Loss for the 16 month period
-
-
(7,756,899)
(7,756,899)

Total comprehensive income for the 16 month period
-
-
(7,756,899)
(7,756,899)



At 31 July 2023
1
6,160,943
(605,214)
5,555,730



The notes on pages 11 to 26 form part of these financial statements.

Page 10

 
GORDON MURRAY AUTOMOTIVE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 16 MONTH PERIOD ENDED 31 JULY 2023

1.


General information

Gordon Murray Automotive Limited is a private company limited by shares and incorporated in England and Wales under the Companies Act 2006. The address of the registered office and principal place of business can be found on the Company information page. 

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Section 1A of Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Financial Reporting Standard 102 - reduced disclosure exemptions

The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
the requirements of Section 7 Statement of Cash Flows;
the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A; and
the requirements of Section 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements of Gordon Murray Group Holdings Limited as at 31 July 2023 and these financial statements may be obtained from the Company's registered office.

 
2.3

Going concern

The Company is a subsidiary of Gordon Murray Group Limited and relies on its own performance and cash, as well as those of Gordon Murray Group and its subsidiaries ('the Group'), to meet its day to day working capital requirements. The Company generated a loss of £7,756,899 (2022 profit of: £309,879) and had  net assets of £5,555,730 (2022: £13,312,629).
The Company will continue to receive support from the rest of the Gordon Murray Group Limited. 

Page 11

 
GORDON MURRAY AUTOMOTIVE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 16 MONTH PERIOD ENDED 31 JULY 2023

2.Accounting policies (continued)

 
2.4

Foreign currency translation

Functional and presentation currency

The financial statements have been presented in the Company's functional and presentational currency GBP Pounds Sterling and are rounded to the nearest pound. 

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary balances are translated using the closing rate. Non-monetary balances measured at historical cost are translated using the exchange rate at the date of the transaction

 
2.5

Research and development

In the research phase of a project where it is not possible to demonstrate that the project will generate future economic benefits, all expenditure on research shall be recognised as an expense in the Statement of Comprehensive Income when it is incurred.  
In the development phase an intangible fixed asset is recognised if certain recognition criteria are met, that demonstrate the future economic benefit is probable and the costs can be measured reliably.
Development assets are amortised at the point in which the asset is deemed ready for use, with the intangible asset amortised on a straight line basis. 
If it is not possible to distinguish between the research and the development phases, the expenditure is treated as if it was the research phase and therefore expensed through the Statement of Comprehensive Income when the expenditure is incurred. 

 
2.6

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.7

Finance costs

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

 
2.8

Borrowing costs

All borrowing costs are recognised in profit or loss in the 16 month period in which they are incurred.

Page 12

 
GORDON MURRAY AUTOMOTIVE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 16 MONTH PERIOD ENDED 31 JULY 2023

2.Accounting policies (continued)

 
2.9

Pensions

Defined contribution pension plan

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

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

 
2.10

Current and deferred taxation

The tax expense for the 16 month period comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

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

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

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

Page 13

 
GORDON MURRAY AUTOMOTIVE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 16 MONTH PERIOD ENDED 31 JULY 2023

2.Accounting policies (continued)

 
2.11

Intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

At each reporting date the company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

All intangible assets are considered to have a finite useful life.

 Amortisation is provided on the following bases:

Development costs
-
On a car by car basis once sold

Development expenditure is amortised on a car by car basis once the production car has been collected by the customer. This is deemed to be an appropriate amortisation basis as it matches the costs incurred with developing the production cars with the income recognised. 

 
2.12

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
Historic cost is used on all classes of tangible fixed assets, except for land. With land been recognised at fair value less accumulated impairment. Any re-valuation gains and impairment losses are recognised within Other Comprehensive Income in the Statement of Income.

At each reporting date the Company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

Page 14

 
GORDON MURRAY AUTOMOTIVE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 16 MONTH PERIOD ENDED 31 JULY 2023

2.Accounting policies (continued)


2.12
Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives as below:

Depreciation is provided on the following basis:

Land (Included in Freehold property)
-
Not depreciated
Freehold Property (Excluding land)
-
50 years straight line
Plant and machinery
-
20% reducing balance
Motor vehicles
-
25% reducing balance
Fixtures and fittings
-
20% reducing balance
Computer equipment
-
33% straight line
Assets under construction
-
Not depreciated
Leasehold improvements
-
20% straight line
Display assets
-
33% straight line
Supplier tooling
-
10% straight line, once in production

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
Assets under construction are not depreciated until they are in the state that is ready to use. 

 
2.13

Revaluation of tangible fixed assets

Individual freehold and leasehold properties are carried at fair value at the date of the revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Revaluations are undertaken with sufficient regularity to ensure the carrying amount does not differ materially from that which would be determined using fair value at the balance sheet date.
Fair values are determined from market based evidence normally undertaken by professionally qualified valuers.

Revaluation gains and losses are recognised in other comprehensive income unless losses exceed the previously recognised gains or reflect a clear consumption of economic benefits, in which case the excess losses are recognised in profit or loss.

 
2.14

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

Page 15

 
GORDON MURRAY AUTOMOTIVE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 16 MONTH PERIOD ENDED 31 JULY 2023

2.Accounting policies (continued)

 
2.15

Debtors

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

 
2.16

Cash and cash equivalents

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

 
2.17

Creditors

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


3.


Judgments in applying accounting policies and key sources of estimation uncertainty

In preparing the financial statements, the directors have had to make the following judgements in applying the above accounting policies:
- The directors have exercised judgement when assessing whether there has been an indicator of impairment in connection with the Company's development assets. Factors taken into consideration in reaching such a decision include economic viability and expected future performance of the project. 
- The directors have exercised an element of judgement in the capitalisation of labour and overhead costs associated with development of the intangible asset. Through-out the year the directors review the expenditure incurred to determine if the recognition criteria under FRS 102 has been met. 
- The directors have exercised judgement in concluding on the appropriate valuation of the owned land following the valuation report provided to the Company. 


4.


Other operating income

16 month period ended 31 July 2023
Year ended 31 March 2022
£
£

Other income
170,149
54,135

Research and development tax credit
1,218,221
2,119,293

1,388,370
2,173,428


Page 16

 
GORDON MURRAY AUTOMOTIVE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 16 MONTH PERIOD ENDED 31 JULY 2023

5.


Auditors' remuneration

Fees payable to the Company's auditors and its associates in respect of:


16 month period ended 31 July 2023
Year ended 31 March 2022
£
£

Audit-related assurance services

31,900
7,850


6.


Employees

The average monthly number of employees, including directors, during the 16 month period was 93 (2022: 37). 


7.


Interest receivable

16 month period ended 31 July 2023
Year ended 31 March 2022
£
£


Other interest receivable
121,756
25,941

121,756
25,941


8.


Interest payable and similar expenses

16 month period ended 31 July 2023
Year ended 31 March 2022
£
£


Other loan interest payable
242,037
-

242,037
-

Page 17

 
GORDON MURRAY AUTOMOTIVE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 16 MONTH PERIOD ENDED 31 JULY 2023

9.


Taxation


16 month period ended 31 July 2023
Year ended 31 March 2022
£
£

Corporation tax


Current tax on profits for the year
(6,818,104)
(136,964)

Adjustments in respect of previous periods
-
(1,669,651)


Total current tax
(6,818,104)
(1,806,615)

Deferred tax


Origination and reversal of timing differences
1,351,625
1,255,909

Adjustments in respect of previous periods
1,499
40,248

Total deferred tax
1,353,124
1,296,157


Tax on loss
(5,464,980)
(510,458)
Page 18

 
GORDON MURRAY AUTOMOTIVE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 16 MONTH PERIOD ENDED 31 JULY 2023
 
9.Taxation (continued)


Factors affecting tax charge for the 16 month period/year

The tax assessed for the 16 month period/year is lower than (2022 - lower than) the standard rate of corporation tax in the UK of 20.5% (2022 - 19%). The differences are explained below:

16 month period ended 31 July 2023
Year ended 31 March 2022
£
£


Loss on ordinary activities before tax
(13,221,879)
(200,579)


Loss on ordinary activities multiplied by standard rate of corporation tax in the UK of 20.5% (2022 - 19%)
(2,710,892)
(38,110)

Effects of:


Expenses not deductible
96,060
1,179

Capital allowances for 16 month period/year in excess of depreciation
(216,695)
(459,692)

Additional deduction for R&D expenditure
(4,606,443)
(1,534,819)

Surrender of tax losses for R&D tax credit refund
8,478,138
643,132

R&D expenditure credits
63,719
650,676

Adjustments to prior year corporation tax return
-
(136,964)

Adjustments to prior year deferred tax
1,499
40,248

Group relief surrendered
4,612
-

Remeasurement of deferred tax for changes in tax rates
243,126
323,892

R&D tax credits July 2023
(6,818,104)
-

Total tax charge for the 16 month period/year
(5,464,980)
(510,458)

Page 19

 
GORDON MURRAY AUTOMOTIVE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 16 MONTH PERIOD ENDED 31 JULY 2023

10.


Intangible assets






Development expenditure

£



Cost


At 1 April 2022
143,166,482


Additions
101,545,652



At 31 July 2023

244,712,134






Net book value



At 31 July 2023
244,712,134



At 31 March 2022
143,166,482



Page 20

 


 
GORDON MURRAY AUTOMOTIVE LIMITED


 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 16 MONTH PERIOD ENDED 31 JULY 2023


11.


Tangible fixed assets









Freehold property
Assets under construction
Leasehold improvements
Plant and machinery
Motor vehicles
Fixtures and fittings
Display Assets
Computer equipment
Supplier tooling
Total

£
£
£
£
£
£
£
£
£
£



Cost or valuation


At 1 April 2022
17,137,543
1,115,820
78,092
178,885
-
248,408
388,732
173,430
6,450,195
25,771,105


Additions
537,489
19,458,200
16,610
734,098
191,009
187,562
945,798
107,586
2,813,085
24,991,437



At 31 July 2023

17,675,032
20,574,020
94,702
912,983
191,009
435,970
1,334,530
281,016
9,263,280
50,762,542



Depreciation


At 1 April 2022
2,737
-
6,755
13,867
-
43,220
33,524
45,504
-
145,607


Charge for the 16 month period on owned assets
(2,737)
-
20,630
124,530
50,259
75,573
253,832
106,110
-
628,197



At 31 July 2023

-
-
27,385
138,397
50,259
118,793
287,356
151,614
-
773,804



Net book value



At 31 July 2023
17,675,032
20,574,020
67,317
774,586
140,750
317,177
1,047,174
129,402
9,263,280
49,988,738



At 31 March 2022
17,134,806
1,115,820
71,337
165,018
-
205,188
355,208
127,926
6,450,195
25,625,498

Page 21

 


 
GORDON MURRAY AUTOMOTIVE LIMITED


 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 16 MONTH PERIOD ENDED 31 JULY 2023

           11.Tangible fixed assets (continued)

Included within Land and Freehold property is land owned by the company.
The land included within freehold property is not depreciated.
Assets held under construction and supplier tooling is not depreciated until they become ready for their intended use.

Page 22

 
GORDON MURRAY AUTOMOTIVE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 16 MONTH PERIOD ENDED 31 JULY 2023

12.


Stocks

31 July
31 March
2023
2022
£
£

Raw materials and consumables
34,666,451
-

34,666,451
-



13.


Debtors

31 July
31 March
2023
2022
£
£


Trade debtors
4,182,889
4,169,148

Amounts owed by group undertakings
-
2,002,277

Other debtors
14,373,393
2,259,040

Prepayments and accrued income
17,054,848
7,416,330

Tax recoverable
6,818,104
11,085,830

42,429,234
26,932,625


The bank holds a debenture against all the current and future debts of the company, incorporating fixed and floating charges over all assets of the Company. There is also an unlimited intercompany multilateral guarantee from companies within the Gordon Murray Group. 


14.


Cash and cash equivalents

31 July
31 March
2023
2022
£
£


Cash at bank and in hand
40,102
40,784,191

Less: bank overdrafts
(21,144,346)
-

(21,104,244)
40,784,191

Page 23

 
GORDON MURRAY AUTOMOTIVE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 16 MONTH PERIOD ENDED 31 JULY 2023

15.


Creditors: Amounts falling due within one year

31 July
31 March
2023
2022
£
£

Bank overdrafts
21,144,346
-

Trade creditors
22,295,723
13,881,649

Amounts owed to group undertakings
23,295,650
-

Other taxation and social security
160,812
75,949

Other creditors
842,668
-

Accruals and deferred income
7,234,857
32,440,368

74,974,056
46,397,966


Amount owed by group undertakings are unsecured, interest free and repayable on demand. 


16.


Creditors: Amounts falling due after more than one year

31 July
31 March
2023
2022
£
£

Payments received on account
288,604,204
175,448,656

288,604,204
175,448,656



17.


Deferred taxation






2023


£






At beginning of year
(1,349,545)


Charged to profit or loss
(1,353,124)



At end of year
(2,702,669)

Page 24

 
GORDON MURRAY AUTOMOTIVE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 16 MONTH PERIOD ENDED 31 JULY 2023
 
17.Deferred taxation (continued)

The provision for deferred taxation is made up as follows:

31 July
31 March
2023
2022
£
£


Accelerated capital allowances
(34,958,568)
(27,860,342)

Tax losses carried forward
32,249,750
26,510,797

Short term timing differences
6,149
-

(2,702,669)
(1,349,545)


18.


Capital commitments


At 31 July 2023 the Company had the following capital expenditure commitments which have not been recognised in these financial statements.

31 July
31 March
2023
2022
£
£


Development Property
1,146,217
18,132,402

1,146,217
18,132,402


19.


Pension commitments

The Company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension costs charge represents contribution payable by the Company to the fund and amounted to £309,379 (2022: £54,763). Contributions totalling £Nil (2022: £Nil) were payable to the fund at the reporting date. 


20.Reserves

The Company's reserves are as follows:
Profit and loss accounts
This reserve records retained earnings and accumulated loses net of dividends paid. 

Revaluation reserve
This reserve records the fair value gains and losses made on tangible fixed assets valued at fair value.

Page 25

 
GORDON MURRAY AUTOMOTIVE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 16 MONTH PERIOD ENDED 31 JULY 2023

21.


Related party transactions

The Company has taken advantage of the exemption available under paragraph 33.1A of the Financial Reporting Stadnards 102 not to disclose related party transactions with other wholly owned members of the Gordon Murray Group. 
Gordon Murray Technologies Limited is a related party by virtue of a common shareholder. During the period the company made sales of £133,124 and made purchases of £48,482,806 from Gordon Murray Technologies Limited. At the period end the Company was owed £Nil from Gordon Murray Technologies Limited and owes £3,000,000 to Gordon Murray Technologies Limited.


22.


Controlling party

Gordon Murray Group Limited is the immediate parent undertaking, a company registered in England and Wales. Gordon Murray Group Limited was also the ultimate parent undertaking until 30 June 2023.
On 30th June 2023, Gordon Murray Group Holdings Limited, a company registered in England and Wales, became the ultimate parent undertaking after acquiring 100% of the share capital in Gordon Murray Group Limited. 
Gordon Murray Group Holdings Limited is the parent company of the smallest and largest group for which consolidated accounts are drawn up of which the Company is a member. These consolidated financial statements can be obtained from Companies House, Crown Way, Cardiff, CF14 3UZ. The registered office of Gordon Murray Holdings Group is Wharfside Broadford Park, Shalford, Guildford, GU4 8EP. 
The ultimate controlling party continues to be Prof. I G Murray by virtue of his shareholdings. 

Page 26