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Registration number: 04603145

Armstrong Vehicle Recycling Ltd

Unaudited Filleted Financial Statements

for the Year Ended 31 December 2023

 

Armstrong Vehicle Recycling Ltd

Contents

Company Information

1

Directors' Report

2

Accountants' Report

3

Profit and Loss Account

4

Balance Sheet

5 to 6

Notes to the Unaudited Financial Statements

7 to 14

Detailed Profit and Loss Account

15 to 17

 

Armstrong Vehicle Recycling Ltd

Company Information

Directors

Mrs Lynn Armstrong

Mr Jeffrey Armstrong

Company secretary

Mrs Lynn Armstrong

Registered office

Apedale Industrial Estate
Watermills Road
Chesterton
Newcastle under Lyme
ST5 6BE

Accountants

RL Accountancy
102 The Courtyard
Radway Green Business Centre
Radway Green Road
Near Alsager
Cheshire
CW2 5PR

 

Armstrong Vehicle Recycling Ltd

Directors' Report for the Year Ended 31 December 2023

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

Directors of the company

The directors who held office during the year were as follows:

Mrs Lynn Armstrong - Company secretary and director

Mr Jeffrey Armstrong

Principal activity

The principal activity of the company is that of scrap and sale of vehicles

Small companies provision statement

This report has been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

Approved and authorised by the Board on 20 September 2024 and signed on its behalf by:
 

.........................................
Mrs Lynn Armstrong
Company secretary and director

 

Chartered Accountants' Report to the Board of Directors on the Preparation of the Unaudited Statutory Accounts of
Armstrong Vehicle Recycling Ltd
for the Year Ended 31 December 2023

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the accounts of Armstrong Vehicle Recycling Ltd for the year ended 31 December 2023 as set out on pages 4 to 14 from the company's accounting records and from information and explanations you have given us.

As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed at
http://www.icaew.com/regulation.

This report is made solely to the Board of Directors of Armstrong Vehicle Recycling Ltd, as a body, in accordance with the terms of our engagement letter dated 17 September 2021. Our work has been undertaken solely to prepare for your approval the accounts of Armstrong Vehicle Recycling Ltd and state those matters that we have agreed to state to the Board of Directors of Armstrong Vehicle Recycling Ltd, as a body, in this report in accordance with ICAEW Technical Release 07/16 AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Armstrong Vehicle Recycling Ltd and its Board of Directors as a body for our work or for this report.

It is your duty to ensure that Armstrong Vehicle Recycling Ltd has kept adequate accounting records and to prepare statutory accounts that give a true and fair view of the assets, liabilities, financial position and loss of Armstrong Vehicle Recycling Ltd. You consider that Armstrong Vehicle Recycling Ltd is exempt from the statutory audit requirement for the year.

We have not been instructed to carry out an audit or a review of the accounts of Armstrong Vehicle Recycling Ltd. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory accounts.

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

RL Accountancy
102 The Courtyard
Radway Green Business Centre
Radway Green Road
Near Alsager
Cheshire
CW2 5PR

20 September 2024

 

Armstrong Vehicle Recycling Ltd

Profit and Loss Account for the Year Ended 31 December 2023

Note

2023
£

2022
£

Turnover

 

654,075

725,974

Cost of sales

 

(382,618)

(342,619)

Gross profit

 

271,457

383,355

Administrative expenses

 

(311,631)

(242,132)

Operating (loss)/profit

 

(40,174)

141,223

Interest payable and similar expenses

 

(8,281)

(7,863)

(Loss)/profit before tax

(48,455)

133,360

Tax on (loss)/profit

 

(77,015)

-

(Loss)/profit for the financial year

 

(125,470)

133,360

The above results were derived from continuing operations.

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

 

Armstrong Vehicle Recycling Ltd

(Registration number: 04603145)
Balance Sheet as at 31 December 2023

Note

2023
£

2022
£

Fixed assets

 

Tangible assets

4

390,272

478,937

Current assets

 

Stocks

5

325,000

300,000

Debtors

6

25,151

21,318

Cash at bank and in hand

 

58,556

4,523

 

408,707

325,841

Creditors: Amounts falling due within one year

7

(314,905)

(338,082)

Net current assets/(liabilities)

 

93,802

(12,241)

Total assets less current liabilities

 

484,074

466,696

Creditors: Amounts falling due after more than one year

7

(103,333)

(37,500)

Provisions for liabilities

(68,512)

-

Net assets

 

312,229

429,196

Capital and reserves

 

Called up share capital

8

8,505

2

Retained earnings

303,724

429,194

Shareholders' funds

 

312,229

429,196

For the financial year ending 31 December 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime. As permitted by section 444 (5A) of the Companies Act 2006, the directors have not delivered to the registrar a copy of the Profit and Loss Account.

Approved and authorised by the Board on 20 September 2024 and signed on its behalf by:
 

 

Armstrong Vehicle Recycling Ltd

(Registration number: 04603145)
Balance Sheet as at 31 December 2023

.........................................
Mr Jeffrey Armstrong
Director

 

Armstrong Vehicle Recycling Ltd

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

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Apedale Industrial Estate
Watermills Road
Chesterton
Newcastle under Lyme
ST5 6BE
England

These financial statements were authorised for issue by the Board on 20 September 2024.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Going concern

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

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

Tax

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

 

Armstrong Vehicle Recycling Ltd

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

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

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

Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Land and buildings

15 years straight line

Plant and machinery

20% Reducing balance method

Fixtures and fittings

15% Reducing balance method

Motor vehicles

25% Reducing balance method

Office equipment

33% Straight line basis

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

 

Armstrong Vehicle Recycling Ltd

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

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are 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.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the profit and loss account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

 

Armstrong Vehicle Recycling Ltd

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

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

3

Staff numbers

The average number of persons employed by the company (including directors) during the year, was 3 (2022 - 3).

 

Armstrong Vehicle Recycling Ltd

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

4

Tangible assets

Land and buildings
£

Fixtures and fittings
£

Office equipment
£

Motor vehicles
 £

Other tangible assets
 £

Total
£

Cost or valuation

At 1 January 2023

166,881

13,815

339

260,765

503,526

945,326

Additions

-

-

-

-

14,700

14,700

At 31 December 2023

166,881

13,815

339

260,765

518,226

960,026

Depreciation

At 1 January 2023

117,421

4,983

113

185,237

158,635

466,389

Charge for the year

11,126

1,325

113

18,882

71,919

103,365

At 31 December 2023

128,547

6,308

226

204,119

230,554

569,754

Carrying amount

At 31 December 2023

38,334

7,507

113

56,646

287,672

390,272

At 31 December 2022

49,460

8,832

226

75,528

344,891

478,937

Included within the net book value of land and buildings above is £38,335 (2022 - £49,460) in respect of freehold land and buildings.
 

 

Armstrong Vehicle Recycling Ltd

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

5

Stocks

2023
£

2022
£

Other inventories

325,000

300,000

6

Debtors

Current

Note

2023
£

2022
£

Trade debtors

 

24,920

(1,512)

Amounts owed by related parties

-

3,994

Prepayments

 

231

231

Other debtors

 

-

18,605

   

25,151

21,318

 

Armstrong Vehicle Recycling Ltd

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

7

Creditors

Creditors: amounts falling due within one year

Note

2023
£

2022
£

Due within one year

 

Loans and borrowings

9

23,333

135,700

Trade creditors

 

21,730

11,079

Amounts owed to group undertakings and undertakings in which the company has a participating interest

212,038

186,940

Taxation and social security

 

3,320

2,729

Accruals and deferred income

 

2,823

1,247

Other creditors

 

51,661

387

 

314,905

338,082

Creditors: amounts falling due after more than one year

Note

2023
£

2022
£

Due after one year

 

Loans and borrowings

9

103,333

37,500

8

Share capital

Allotted, called up and fully paid shares

2023

2022

No.

£

No.

£

Ordinary shares of £1 each

2

2

2

2

       

9

Loans and borrowings

Non-current loans and borrowings

2023
£

2022
£

Bank borrowings

27,500

37,500

Hire purchase contracts

75,833

-

103,333

37,500

 

Armstrong Vehicle Recycling Ltd

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

Current loans and borrowings

2023
£

2022
£

Hire purchase contracts

23,333

135,700

 

Armstrong Vehicle Recycling Ltd

Detailed Profit and Loss Account for the Year Ended 31 December 2023

2023
 £

2022
 £

turnover (analysed below)

654,075

725,974

Cost of sales (analysed below)

(382,618)

(342,619)

Gross profit

271,457

383,355

Gross profit (%)

41.5%

52.81%

Administrative expenses

Employment costs (analysed below)

(87,669)

(69,109)

Establishment costs (analysed below)

(37,354)

(20,295)

General administrative expenses (analysed below)

(81,494)

(65,453)

Finance charges (analysed below)

(1,750)

(3,080)

Depreciation costs (analysed below)

(103,364)

(124,195)

Other expenses (analysed below)

-

40,000

(311,631)

(242,132)

Operating (loss)/profit

(40,174)

141,223

Interest payable and similar charges (analysed below)

(8,281)

(7,863)

(Loss)/profit before tax

(48,455)

133,360

 

Armstrong Vehicle Recycling Ltd

Detailed Profit and Loss Account for the Year Ended 31 December 2023

2023
£

2022
£

   

Turnover

Sale of goods, UK

654,075

725,974

   

Cost of sales

Opening finished goods

(300,000)

(200,000)

Purchases

(396,799)

(434,553)

Direct costs

(10,812)

(7,992)

Closing finished goods

325,000

300,000

Freight and carriage

(7)

(74)

(382,618)

(342,619)

   

Employment costs

Wages and salaries (excluding directors)

(84,393)

(68,391)

Staff NIC (Employers)

(2,870)

(80)

Staff pensions (Defined contribution)

(406)

(538)

Casual wages

-

(100)

(87,669)

(69,109)

   

Establishment costs

Rates

(9,523)

(7,860)

Water rates

(250)

(205)

Light, heat and power

(3,547)

(3,996)

Insurance

(5,133)

(1,038)

Use of home as office

(312)

(312)

Repairs and maintenance

(18,589)

(6,884)

(37,354)

(20,295)

   

General administrative expenses

Telephone and fax

(5,993)

(4,663)

Workwear and laundry

(279)

(284)

Computer software and maintenance costs

(100)

(64)

Printing, postage and stationery

(41)

(397)

Trade subscriptions

-

(219)

Charitable donations

(5)

(4)

Hire of plant and machinery (Spot hire)

-

(124)

Sundry expenses

(40)

(7)

Cleaning

(27)

-

Motor expenses

(64,482)

(51,776)

Travel and subsistence

(3,169)

(181)

 

Armstrong Vehicle Recycling Ltd

Detailed Profit and Loss Account for the Year Ended 31 December 2023

2023
£

2022
£

   

Advertising

(1,036)

(5,313)

Accountancy fees

(1,610)

(1,730)

Legal and professional fees

(4,712)

(691)

(81,494)

(65,453)

   

Finance charges

Bank charges

(611)

(805)

Other charges

(1,139)

(2,275)

(1,750)

(3,080)

   

Depreciation costs

Depreciation of freehold property

(11,126)

(11,125)

Depreciation of plant and machinery (owned)

(71,918)

(86,223)

Depreciation of fixtures and fittings (owned)

(1,325)

(1,558)

Depreciation of motor vehicles (owned)

(18,882)

(25,176)

Depreciation of office equipment (owned)

(113)

(113)

(103,364)

(124,195)

   

Other expenses

(Profit)/loss on disposal of tangible fixed assets

-

40,000

   

Interest payable and similar expenses

Bank loan interest payable

(824)

(1,117)

Hire purchase interest

(7,457)

(6,746)

(8,281)

(7,863)