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Registered number: 02670615










AUTOMOTIVE GROUP (NEWCASTLE UPON TYNE) LIMITED










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2023

 
AUTOMOTIVE GROUP (NEWCASTLE UPON TYNE) LIMITED
 
 
COMPANY INFORMATION


Directors
Mr P Hind 
Mr J Hind 




Company secretary
Mr J Hind



Registered number
02670615



Registered office
Segedunum Domus
Fisher Street

Newcastle upon Tyne

NE6 4NH




Independent auditors
Ryecroft Glenton
Chartered Accountants & Statutory Auditors

32 Portland Terrace

Jesmond

Newcastle upon Tyne

NE2 1QP





 
AUTOMOTIVE GROUP (NEWCASTLE UPON TYNE) LIMITED
 

CONTENTS



Page
Strategic Report
1 - 2
Directors' Report
3 - 4
Independent Auditors' Report
5 - 8
Statement of Comprehensive Income
9
Balance Sheet
10
Statement of Changes in Equity
11
Statement of Cash Flows
12
Analysis of Net Debt
13
Notes to the Financial Statements
14 - 27

 
AUTOMOTIVE GROUP (NEWCASTLE UPON TYNE) LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 OCTOBER 2023

Introduction
 
 The directors present their report and financial statements for the year ended 31 October 2023.

Business review
 
The results of the company for the year as set out on page 9 show a profit on ordinary activities before tax of £1,097,052 (2022: profit of £675,600).  The shareholders' funds of the company total £13,318,968 (2022: £12,441,129).
The performance of the company during 2023 was acceptable, bearing in mind the external influences affecting the customer base and funding options for those customers.  
As mentioned below, the company is affected by the UK economy generally and by significant price pressures from wheelchair accessible vehicle competitors and the market, which is, in effect, significantly controlled by government bodies.  Despite these pressures, the company has invested heavily in research and development and has minimised the reduction in margin mentioned below.

Going concern
 
Despite the longer term affects of the global pandemic, resulting in lower car sales and higher purchase prices, the company is fortunate to be in a strong financial position with healthy cash reserves to manage such situations and remains a very strong and profitable business with excellent credit ratings and continued profitable trading.
Principal risks and uncertainties
The process of risk management is addressed through a framework of policies, procedures and internal controls.  All policies are subject to review and approval by the directors and compliance with regulation, legal and ethical standards are a high priority for the board.
As indicated below, three simple key performance indicators are used in monitoring performance of the business which in turn assist the board in managing generic risk of business performance within the current economic climate, together with specific risk as appertains to the wheelchair accessible vehicle market.
Pricing is therefore vital and the board keep close control of margin through shrewd purchasing and accurate sales pricing, ensuring staff are always aware of this crucial element to the business.  
Additionally, the board monitor the cash position on a daily basis ensuring the business always has sufficient funds to manage its extensive working capital requirements.

Page 1

 
AUTOMOTIVE GROUP (NEWCASTLE UPON TYNE) LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023

Financial key performance indicators
 
Although the board monitors many elements of the business, the three main factors used in monitoring performance and their status are as follows:
Element          2023                   2022
       
Turnover   £15.95m                 £14.66m      
Gross margin         10.3%                   8.2%
 
Cash at Bank           £6.04m                       £10.13m      
The company became a wholly owned subsidiary of Hind Holdings (Newcastle upon Tyne) Limited in 2022 with the intention to redistribute cash for other projects while maintaining enough working capital to meet the significant requirements of bulk vehicle purchasing.

Business environment
 
The UK wheelchair accessible vehicle market is highly price sensitive and extremely competitive.  New products enter the market annually and significant investment is required in research and development to acquire the appropriate European safety standard on any modified vehicle.  The company takes strategic decisions in selecting appropriate vehicles periodically and undertaking the appropriate research and development in order to provide market leading design and quality, helping it to maintain its position against competitors.


This report was approved by the board on 30 September 2024 and signed on its behalf.



Mr P Hind
Director
Page 2

 
AUTOMOTIVE GROUP (NEWCASTLE UPON TYNE) LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 OCTOBER 2023

The directors present their report and the financial statements for the year ended 31 October 2023.

Directors' responsibilities statement

The directors are responsible for preparing the 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 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;

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.

Principal activity

The principal activity of the company continued to be that of the manufacture of wheelchair accessible vehicles. 

Results and dividends

The profit for the year, after taxation, amounted to £877,839 (2022 - £569,734).

The directors do not recommend a final dividend in respect of the year (2022 - £nil). 

Directors

The directors who served during the year were:

Mr P Hind 
Mr J Hind 

Page 3

 
AUTOMOTIVE GROUP (NEWCASTLE UPON TYNE) LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023

Future developments

As in previous years, the risks to UK economic growth remains significant and the additional market pressure on achievable margins in the wheelchair accessible vehicle arena mean that the board need to constantly monitor margins and look to increase turnover in order to maintain profitability as margins are squeezed.
To date, the board have been able to manage this risk very well and there is no indication of a change in the market place which is not capable of management through this careful policy of monitoring and maintaining margin levels whilst continuing to grow sales through building a reputation for quality, value and market leading products.

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 auditorsRyecroft Glentonwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 30 September 2024 and signed on its behalf.
 





Mr P Hind
Director
Page 4

 
AUTOMOTIVE GROUP (NEWCASTLE UPON TYNE) LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF AUTOMOTIVE GROUP (NEWCASTLE UPON TYNE) LIMITED
 

Opinion


We have audited the financial statements of Automotive Group (Newcastle upon Tyne) Limited (the 'Company') for the year ended 31 October 2023, which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Cash Flows, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the Company's affairs as at 31 October 2023 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' 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 United Kingdom, including the Financial Reporting Council'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.


Page 5

 
AUTOMOTIVE GROUP (NEWCASTLE UPON TYNE) LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF AUTOMOTIVE GROUP (NEWCASTLE UPON TYNE) LIMITED (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual ReportOur 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. 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.


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


Matters on which we are required to report by exception
 

In the 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 Strategic Report or 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.


Responsibilities of directors
 

As explained more fully in the Directors' Responsibilities Statement set out on page 3, 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 either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.


Page 6

 
AUTOMOTIVE GROUP (NEWCASTLE UPON TYNE) LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF AUTOMOTIVE GROUP (NEWCASTLE UPON TYNE) LIMITED (CONTINUED)


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.
 
The extent to which the audit was considered capable of detecting irregularities including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

• the responsible individual ensured that the engagement team collectively had the appropriate                                competence, capabilities and skills to identify or recognise non-compliance with applicable laws and    regulations;
• we identified the laws and regulations applicable to the Company through discussions with directors and
         other management, and from our commercial knowledge and experience of the sector in which the    company operates;
• we focused on specific laws and regulations which we considered may have a direct material effect on    the financial statements or the operations of the Company, including the Companies Act 2006, taxation
          legislation and Motability approval 
• we assessed the extent of compliance with the laws and regulations identified above through making    enquiries of management, inspecting legal correspondence and examining online approval lists; and
• we ensured that the identified laws and regulations were communicated within the audit team regularly    and the team remained alert to instances of non-compliance throughout the audit.
We assessed the susceptibility of the Company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: -
• making enquiries of management as to where they considered there was susceptibility to fraud and      their knowledge of actual, suspected and alleged fraud.
• considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and    regulations.
To address the risk of fraud through management bias and override of controls, we: -
• performed analytical procedures to identify any unusual or unexpected relationships;
• tested journal entries to identify unusual transactions;
• assessed whether judgements and assumptions made in determining the accounting estimates were    indicative of potential bias.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: -
• agreeing financial statement disclosures to underlying supporting documentation;
• reading the minutes of meetings of those charged with governance;
• enquiring of management as to actual and potential litigation and claims;
• reviewing correspondence with HMRC, and the Company’s legal advisers where appropriate.
 
Page 7

 
AUTOMOTIVE GROUP (NEWCASTLE UPON TYNE) LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF AUTOMOTIVE GROUP (NEWCASTLE UPON TYNE) LIMITED (CONTINUED)


There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be more difficult to detect than those that arise from error as they may involve deliberate concealment or collusion.


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.


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 2006Our 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.





Ian Smith (Senior Statutory Auditor)
  
for and on behalf of
Ryecroft Glenton
 
Chartered Accountants
Statutory Auditors
  
32 Portland Terrace
Jesmond
Newcastle upon Tyne
NE2 1QP

30 September 2024
Page 8

 
AUTOMOTIVE GROUP (NEWCASTLE UPON TYNE) LIMITED
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 OCTOBER 2023

2023
2022
Note
£
£

  

Turnover
 4 
15,950,593
14,664,850

Cost of sales
  
(14,313,238)
(13,464,440)

Gross profit
  
1,637,355
1,200,410

Administrative expenses
  
(555,049)
(655,936)

Other operating income
 5 
-
3,144

Fair value movements
  
-
124,874

Operating profit
  
1,082,306
672,492

Interest receivable and similar income
 9 
14,746
3,108

Profit before tax
  
1,097,052
675,600

Tax on profit
 10 
(219,213)
(105,866)

Profit for the financial year
  
877,839
569,734

There was no other comprehensive income for 2023 (2022:£NIL).

The notes on pages 14 to 27 form part of these financial statements.
Page 9

 
AUTOMOTIVE GROUP (NEWCASTLE UPON TYNE) LIMITED
REGISTERED NUMBER: 02670615

BALANCE SHEET
AS AT 31 OCTOBER 2023

2023
2022
Note
£
£

Fixed assets
  

Tangible assets
 12 
751,317
766,571

Investment property
 13 
425,000
425,000

  
1,176,317
1,191,571

Current assets
  

Stocks
 14 
3,489,406
1,949,017

Debtors
 15 
4,609,076
744,680

Cash at bank and in hand
 16 
6,041,489
10,134,517

  
14,139,971
12,828,214

Creditors: amounts falling due within one year
 17 
(1,966,101)
(1,547,437)

Net current assets
  
 
 
12,173,870
 
 
11,280,777

Total assets less current liabilities
  
13,350,187
12,472,348

Provisions for liabilities
  

Deferred tax
 19 
(31,219)
(31,219)

  
 
 
(31,219)
 
 
(31,219)

Net assets
  
13,318,968
12,441,129


Capital and reserves
  

Called up share capital 
 20 
2
2

Other reserves
 21 
124,874
124,874

Profit and loss account
 21 
13,194,092
12,316,253

  
13,318,968
12,441,129


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 30 September 2024.




Mr P Hind
Director

The notes on pages 14 to 27 form part of these financial statements.
Page 10

 
AUTOMOTIVE GROUP (NEWCASTLE UPON TYNE) LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 OCTOBER 2023


Called up share capital
Other reserves
Profit and loss account
Total equity

£
£
£
£


At 1 November 2021
2
-
11,871,393
11,871,395



Profit for the year
-
-
569,734
569,734

Revaluation of investment properties
-
124,874
(124,874)
-



At 1 November 2022
2
124,874
12,316,253
12,441,129



Profit for the year
-
-
877,839
877,839


At 31 October 2023
2
124,874
13,194,092
13,318,968


The notes on pages 14 to 27 form part of these financial statements.
Page 11

 
AUTOMOTIVE GROUP (NEWCASTLE UPON TYNE) LIMITED
 

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 OCTOBER 2023

2023
2022
£
£

Cash flows from operating activities

Profit for the financial year
877,839
569,734

Adjustments for:

Depreciation of tangible assets
45,332
49,766

Interest received
(14,746)
(3,108)

Taxation charge
219,213
105,867

(Increase) in stocks
(1,540,389)
(779,839)

Decrease in debtors
28,730
379,239

Increase in creditors
266,832
316,552

Net fair value losses/(gains) recognised in P&L
-
(124,874)

Corporation tax (paid)
(74,648)
(485,058)

Net cash generated from operating activities

(191,837)
28,279


Cash flows from investing activities

Purchase of tangible fixed assets
(30,079)
(12,096)

Interest received
14,746
3,108

Loans given
9,600
-

Loans to staff
(29,030)
-

Loans to directors repaid
15,999
-

Net cash from investing activities

(18,764)
(8,988)

Cash flows from financing activities

Loans to group companies
(3,882,427)
-

Net cash used in financing activities
(3,882,427)
-

Net (decrease)/increase in cash and cash equivalents
(4,093,028)
19,291

Cash and cash equivalents at beginning of year
10,134,517
10,115,226

Cash and cash equivalents at the end of year
6,041,489
10,134,517


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
6,041,489
10,134,517

6,041,489
10,134,517


Page 12

 
AUTOMOTIVE GROUP (NEWCASTLE UPON TYNE) LIMITED
 

ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 OCTOBER 2023




At 1 November 2022
Cash flows
At 31 October 2023
£

£

£

Cash at bank and in hand

10,134,517

(4,093,028)

6,041,489


-

-

-


10,134,517
(4,093,028)
6,041,489

The notes on pages 14 to 27 form part of these financial statements.
Page 13

 
AUTOMOTIVE GROUP (NEWCASTLE UPON TYNE) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023

1.


General information

The Company is a private company limited by shares and is incorporated in England and Wales. The address of its registered office is Segedunum Domus, Fisher Street, Newcastle upon Tyne, NE6 4NH. The Company's number is 02670615. The Company's principal activity is disclosed in the Strategic Report.

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 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 financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The following principal accounting policies have been applied:

 
2.2

Going concern

The Company has considerable financial resources and as a consequence, the directors believe that the Company is well placed to manage it's business risks successfully and continue in existence for the foreseeable future. For this reason the directors continue to adopt the going concern basis of preparation for these financial statements. 

 
2.3

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the Company has transferred the significant risks and rewards of ownership to the buyer;
the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

 
2.4

Interest income

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

Page 14

 
AUTOMOTIVE GROUP (NEWCASTLE UPON TYNE) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023

2.Accounting policies (continued)

 
2.5

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.

 
2.6

Current and deferred taxation

The tax expense for the year 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.

 
2.7

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.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

 The estimated useful lives range as follows:

Database
-
5
years straight line

Page 15

 
AUTOMOTIVE GROUP (NEWCASTLE UPON TYNE) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023

2.Accounting policies (continued)

 
2.8

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.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method and reducing balance method.

Depreciation is provided on the following basis:

Long-term leasehold property
-
2.5% straight line
Short-term leasehold property
-
12.5% straight line
Plant and machinery
-
20% reducing balance / 20% straight line
Motor vehicles
-
25% straight line
Fixtures and fittings
-
15% reducing balance / 20% straight line

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.

 
2.9

Investment property

Investment property is carried at fair value determined annually by external valuers and derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset. No depreciation is provided. Changes in fair value are recognised in profit or loss.

  
2.10

Stocks

Stocks, other than vehicles, 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.
The company values stocks of cars based upon cost, which is written down by 25% per annum, straight line, for any vehicle held for more than one year, as this is considered to be a fair reflection of the value ascribed to second hand wheelchair accessible vehicles.

  
2.11

Debtors

Short term debtors are measured at transaction price, less any impairment. 

Page 16

 
AUTOMOTIVE GROUP (NEWCASTLE UPON TYNE) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023

2.Accounting policies (continued)

 
2.12

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.

In the Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Company's cash management.

  
2.13

Creditors

Short term creditors are measured at the transaction price.

  
2.14

Financial instruments

The Company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors and loans to related parties.
Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or financed at a rate of interest that is not a market rate or in case of an out-right short-term loan not at market rate, the financial asset or liability is measured, initially, at the present value of the future cash flow discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost.
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the balance sheet date.

 
2.15

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.


3.


Judgments in applying accounting policies and key sources of estimation uncertainty

The directors are satisfied that there are no critical judgements used in applying the accounting policies applied or any key sources of estimation uncertainty in these financial statements

Page 17

 
AUTOMOTIVE GROUP (NEWCASTLE UPON TYNE) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023

4.


Turnover

All turnover arose within the United Kingdom.


5.


Other operating income

2023
2022
£
£

Net rents receivable
-
3,144

-
3,144



6.


Auditors' remuneration

During the year, the Company obtained the following services from the Company's auditors:


2023
2022
£
£

Fees payable to the Company's auditors for the audit of the Company's financial statements
10,700
10,395

7.


Employees

Staff costs, including directors' remuneration, were as follows:


2023
2022
£
£

Wages and salaries
1,859,002
1,691,348

Social security costs
182,141
158,973

Cost of defined contribution scheme
29,386
32,020

2,070,529
1,882,341


The average monthly number of employees, including the directors, during the year was as follows:


        2023
        2022
            No.
            No.







Production
34
34



Administration
29
29

63
63

Page 18

 
AUTOMOTIVE GROUP (NEWCASTLE UPON TYNE) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023

8.


Directors' remuneration

2023
2022
£
£

Directors' emoluments
46,557
14,400

46,557
14,400



9.


Interest receivable

2023
2022
£
£


Other interest receivable
14,746
3,108

14,746
3,108


10.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
249,387
74,648

Adjustments in respect of previous periods
(30,174)
-


219,213
74,648


Total current tax
219,213
74,648

Deferred tax


Origination and reversal of timing differences
-
31,218

Total deferred tax
-
31,218


Taxation on profit on ordinary activities
219,213
105,866
Page 19

 
AUTOMOTIVE GROUP (NEWCASTLE UPON TYNE) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023
 
10.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is higher than (2022 - lower than) the standard rate of corporation tax in the UK of 22.52% (2022 - 19%). The differences are explained below:

2023
2022
£
£


Profit on ordinary activities before tax
1,097,052
675,600


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 22.52% (2022 - 19%)
247,056
128,364

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
124
-

Capital allowances for year in excess of depreciation
4,284
3,498

Overprovision from prior year
(30,174)
-

Research and development
-
(38,391)

Non-taxable income
-
(23,726)

Other differences leading to an increase (decrease) in the tax charge
(2,077)
36,121

Total tax charge for the year
219,213
105,866


Factors that may affect future tax charges

There were no factors that may affect future tax charges.

Page 20

 
AUTOMOTIVE GROUP (NEWCASTLE UPON TYNE) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023

11.


Intangible assets




Computer software

£



Cost


At 1 November 2022
75,000



At 31 October 2023

75,000



Amortisation


At 1 November 2022
75,000



At 31 October 2023

75,000



Net book value



At 31 October 2023
-



At 31 October 2022
-



Page 21

 


 
AUTOMOTIVE GROUP (NEWCASTLE UPON TYNE) LIMITED


 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023


12.


Tangible fixed assets






Long-term leasehold property
Short-term leasehold property
Plant and machinery
Motor vehicles
Fixtures and fittings
Total

£
£
£
£
£
£



Cost or valuation


At 1 November 2022
844,189
87,356
276,208
113,812
191,331
1,512,896


Additions
-
-
28,091
-
1,988
30,079



At 31 October 2023

844,189
87,356
304,299
113,812
193,319
1,542,975



Depreciation


At 1 November 2022
160,574
57,771
256,408
113,812
157,761
746,326


Charge for the year on owned assets
21,107
1,402
11,953
-
10,870
45,332



At 31 October 2023

181,681
59,173
268,361
113,812
168,631
791,658



Net book value



At 31 October 2023
662,508
28,183
35,938
-
24,688
751,317



At 31 October 2022
683,615
29,585
19,800
-
33,571
766,571

Page 22

 
AUTOMOTIVE GROUP (NEWCASTLE UPON TYNE) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023

13.


Investment property


Freehold investment property

£



Valuation


At 1 November 2022
425,000



At 31 October 2023
425,000

The 2023 valuations were made by the directors, on an open market value for existing use basis.



If the Investment properties had been accounted for under the historic cost accounting rules, the properties would have been measured as follows:

2023
2022
£
£


Historic cost
300,126
300,126

Accumulated depreciation and impairments
(21,719)
(15,716)

278,407
284,410


14.


Stocks

2023
2022
£
£

Finished goods and goods for resale
3,489,406
1,949,017

3,489,406
1,949,017


Page 23

 
AUTOMOTIVE GROUP (NEWCASTLE UPON TYNE) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023

15.


Debtors


2023
2022
£
£

Due after more than one year

Financial instruments
37,151
46,751

37,151
46,751

Due within one year

Trade debtors
313,903
470,580

Amounts owed by group undertakings
3,982,427
-

Other debtors
81,865
161,569

Prepayments and accrued income
164,640
50,527

Amounts recoverable on long-term contracts
29,090
15,253

4,609,076
744,680



16.


Cash and cash equivalents

2023
2022
£
£

Cash at bank and in hand
6,041,489
10,134,517

6,041,489
10,134,517



17.


Creditors: Amounts falling due within one year

2023
2022
£
£

Trade creditors
1,171,206
741,842

Corporation tax
245,470
96,700

Other taxation and social security
145,476
235,770

Other creditors
178,246
172,756

Accruals and deferred income
225,703
300,369

1,966,101
1,547,437


Page 24

 
AUTOMOTIVE GROUP (NEWCASTLE UPON TYNE) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023

18.


Financial instruments

2023
2022
£
£

Financial assets


Financial assets measured at fair value through profit or loss
6,078,640
10,181,268

Financial assets that are debt instruments measured at amortised cost
313,903
470,580

6,392,543
10,651,848


Financial liabilities


Financial liabilities measured at amortised cost
1,396,908
1,042,481


Financial assets measured at fair value through profit or loss comprise of bank balances and financial instruments.


Financial assets that are debt instruments measured at amortised cost comprise trade debtors.


Financial liabilities measured at amortised cost comprise trade creditors and accruals.


19.


Deferred taxation




2023


£






At beginning of year
(31,219)



At end of year
(31,219)

The provision for deferred taxation is made up as follows:

2023
2022
£
£


Revaluation of investment properties
(31,219)
(31,219)

(31,219)
(31,219)

Page 25

 
AUTOMOTIVE GROUP (NEWCASTLE UPON TYNE) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023

20.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



Nil (2022 - 2) Ordinary shares of £1.00 each
-
2
200 (2022 - nil) Ordinary shares of £0.01 each
2
-

2

2

On 16 November 2022 the ordinary shares of £1 each were subdivided into 200 ordinary shares of £0.01 each.



21.


Reserves

Other reserves

Other reserves include all current revaluations of investment properties.

Profit and loss account

The profit and loss account includes all current and prior period retained profits and losses and net of distributions to owners.


22.


Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held
separately from those of the Company  in an independently administered fund. The pension cost charge
represents contributions payable by the Company to the fund and amounted to £29,386 (2022 - £32,020).
Contributions totalling £8,074 (2022 - £9,140) were payable to the fund at the balance sheet date and are
included in creditors.


23.


Transactions with directors

During the year the P Hind, a director, repaid amounts totalling £16,000 (2022 - £nil) to the Company. The largest amount outstanding throughout the period was £12,940 (2022 - £12,940). At the year end £3,060 was due from the Company and included within other creditors (2022 - £12,940 due to the Company).


24.


Related party transactions

As a wholly owned subsidiary of Hind Holdings (Newcastle upon Tyne) Limited, the Company has taken advantage of the exemption under FRS102 Section 33 not to disclose related party transactions with 100% group companies.

Page 26

 
AUTOMOTIVE GROUP (NEWCASTLE UPON TYNE) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023

25.


Controlling party

In November 2022, Hind Holdings (Newcastle upon Tyne) Limited acquired the entire share capital of the Company and is now the parent company. P Hind is now the ultimate controlling party by virtue of his majority shareholding in Hind Holdings (Newcastle upon Tyne) Limited. 

 
Page 27