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REGISTERED NUMBER: 01619456 (England and Wales)















Financial Statements for the Year Ended 31 December 2023

for

LMC OF FARNHAM LTD.

LMC OF FARNHAM LTD. (REGISTERED NUMBER: 01619456)

Contents of the Financial Statements
for the Year Ended 31 December 2023










Page

Company Information 1

Balance Sheet 2

Notes to the Financial Statements 3


LMC OF FARNHAM LTD.

Company Information
for the Year Ended 31 December 2023







DIRECTOR: R E Powell





SECRETARY: H Powell





REGISTERED OFFICE: Farnham Road
Bordon
Hampshire
GU35 0QP





REGISTERED NUMBER: 01619456 (England and Wales)

LMC OF FARNHAM LTD. (REGISTERED NUMBER: 01619456)

Balance Sheet
31 December 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 4 837,049 911,056

CURRENT ASSETS
Stocks 5 3,292,926 3,197,103
Debtors 6 98,735 412,776
Cash at bank and in hand 1,909 183,196
3,393,570 3,793,075
CREDITORS
Amounts falling due within one year 7 2,715,094 3,024,526
NET CURRENT ASSETS 678,476 768,549
TOTAL ASSETS LESS CURRENT
LIABILITIES

1,515,525

1,679,605

CREDITORS
Amounts falling due after more than one
year

8

(126,667

)

(206,667

)

PROVISIONS FOR LIABILITIES 10 (180,643 ) (162,900 )
NET ASSETS 1,208,215 1,310,038

CAPITAL AND RESERVES
Called up share capital 10,300 10,300
Retained earnings 1,197,915 1,299,738
1,208,215 1,310,038

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Statement of Income and Retained Earnings has not been delivered.

The financial statements were approved by the director and authorised for issue on 16 October 2024 and were signed by:





R E Powell - Director


LMC OF FARNHAM LTD. (REGISTERED NUMBER: 01619456)

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


1. STATUTORY INFORMATION

Lmc Of Farnham Ltd. is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The Company’s functional and presentational currency is Sterling.

Critical accounting judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities at the reporting date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes might differ from those estimates.

The following judgements have been made by the director in applying the company's accounting policies:

Property, plant and equipment
Property, plant and equipment are reviewed for impairment if events or circumstances indicate that the carrying value may not be recoverable. When an impairment review is carried out the recoverable value is determined based on value in use calculations which require estimates to be made of future cash flows.

Stock valuation
Stock valuation is regularly monitored against age profile and market demand. Management use a number of market tools during the appraisal process including CAP valuation guides. The director maintains oversight of aged stock profiles and perform a monthly review for any provision required.

Brand incentives
The company receives income in the form of various incentives which are determined by the company's brand partner. The amount receivable is generally based on achieving specific objectives such as a specified sales volume, as well as other objectives including maintaining brand partner standards which may include, but are not limited to, retail centre image and design requirements, customer satisfaction survey results and training standards. Objectives are generally set and measured on either a quarterly or annual basis.

Where incentives are based on a specific sales volume or number of registrations, the related income is recognised as a reduction in cost of sales when it is reasonably certain that the income has been earned. This is generally the later of the date the related vehicles are sold or registered or when it is reasonably certain that the related target will be met. Where incentives are linked to retail centre image and design requirements, customer satisfaction survey results or training standards, they are recognised as a reduction in cost of sales when it is reasonably certain that the incentive will be received for the relevant period.

The company may also receive contributions towards advertising, promotional and rent expenditure. Where such contributions are received they are recognised as a reduction in the related expenditure in the period to which they relate.

LMC OF FARNHAM LTD. (REGISTERED NUMBER: 01619456)

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


2. ACCOUNTING POLICIES - continued

Turnover
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Turnover from the sale of goods is recognised in the Statement of Income and Retained Earnings, net of discounts and value added tax, when the significant risks and rewards of ownership have been transferred to the buyer. In general this occurs when vehicles or parts have been supplied or when a service has been completed.

Commission income is accounted for on a receivable basis.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Land and buildings - Straight line over the life of the lease
Plant and machinery etc - 33% on cost, 20% on cost and at varying rates on cost

Stocks
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

At each reporting 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 the Statement of Income and Retained Earnings.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Income and Retained Earnings, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

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

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

LMC OF FARNHAM LTD. (REGISTERED NUMBER: 01619456)

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


2. ACCOUNTING POLICIES - continued

Provisions
Standard warranties provided at the time of sale assure customers that the company will rectify or replace items not fit for purpose. These warranties cover defects that may become apparent within a specified period (three months to two years from sale). A provision is set up for expected future warranty costs triggered by the sale of defective goods. The provision is determined by estimating the expected level of claims, relying on historical experience.

Payments made in full or part settlement, or the cost of carrying out repairs in-house, are set off against the related provision and reported as amounts utilised in the notes to the accounts.

Deferred tax liabilities are also presented within provisions but are measured in accordance with the company’s accounting policy on taxation.

Financial instruments
The company enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors and loans from banks.

Debt instruments (other than those wholly repayable or receivable within one year), including loans and account receivables and payables, are initially measured at the transaction price (adjusted for transaction cost) and subsequently at amortised cost using the effective interest method. 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 arrangement constitutes a financing transaction, such as a trade debtor or creditor on extended credit terms, initial measurement is at the present value of future cash flows discounted at a market rate of interest. Subsequent measurement is at amortised cost.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If such evidence is identified, an impairment loss is recognised in the statement of comprehensive income.

3. EMPLOYEES AND DIRECTORS

The average number of employees during the year was 45 (2022 - 46 ) .

LMC OF FARNHAM LTD. (REGISTERED NUMBER: 01619456)

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


4. TANGIBLE FIXED ASSETS
Land Short Plant and
improvements leasehold machinery
£    £    £   
COST
At 1 January 2023 115,830 1,014,678 608,327
Additions 3,720 7,922 24,357
Disposals - (15,924 ) (94,106 )
At 31 December 2023 119,550 1,006,676 538,578
DEPRECIATION
At 1 January 2023 4,770 322,719 518,474
Charge for year 9,635 39,856 38,120
Eliminated on disposal - (14,575 ) (78,520 )
At 31 December 2023 14,405 348,000 478,074
NET BOOK VALUE
At 31 December 2023 105,145 658,676 60,504
At 31 December 2022 111,060 691,959 89,853

Motor Computer
vehicles equipment Totals
£    £    £   
COST
At 1 January 2023 32,175 147,398 1,918,408
Additions - 6,177 42,176
Disposals - (29 ) (110,059 )
At 31 December 2023 32,175 153,546 1,850,525
DEPRECIATION
At 1 January 2023 23,638 137,751 1,007,352
Charge for year 6,663 5,489 99,763
Eliminated on disposal - (544 ) (93,639 )
At 31 December 2023 30,301 142,696 1,013,476
NET BOOK VALUE
At 31 December 2023 1,874 10,850 837,049
At 31 December 2022 8,537 9,647 911,056

Land improvements represents works carried out to land used by the company which is owned by the company's shareholders.

LMC OF FARNHAM LTD. (REGISTERED NUMBER: 01619456)

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


5. STOCKS
2023 2022
£    £   
Vehicles stock 3,251,673 3,138,171
Parts stock 41,253 58,932
3,292,926 3,197,103

Included within vehicle stock is consignment stock to the value of £Nil (2022: £628,129).

6. DEBTORS
2023 2022
£    £   
Amounts falling due within one year:
Trade debtors 65,825 352,338
Other debtors 22,177 46,097
88,002 398,435

Amounts falling due after more than one year:
Other debtors 10,733 14,341

Aggregate amounts 98,735 412,776

7. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Bank loans and overdrafts 98,848 80,000
Trade creditors 2,403,420 2,512,846
Taxation and social security 121,671 248,155
Other creditors 91,155 183,525
2,715,094 3,024,526

8. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
2023 2022
£    £   
Bank loans 126,667 206,667

LMC OF FARNHAM LTD. (REGISTERED NUMBER: 01619456)

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


9. SECURED DEBTS

The following secured debts are included within creditors:

2023 2022
£    £   
Bank loans 206,667 286,667

The bank loan of £206,667 (2022: £286,667) is a Coronavirus Business Interruption loan for which the UK Government contributed the first 12 months of interest payments under the UK Government's Business Interruption Payment (BIP). This loan is repayable over 6 years following a capital repayment holiday for the first year. The interest rate is 4.33% for the first five years and 3.96% above base for the final year. The bank loan is secured by a debenture and a first legal charge over the Farnham Road property and its associated assets.

10. PROVISIONS FOR LIABILITIES
2023 2022
£    £   
Deferred tax
Accelerated capital allowances 14,184 18,199
Warranty provision 166,459 144,701
180,643 162,900

Deferred Other
tax provisions
£    £   
Balance at 1 January 2023 18,199 144,701
Provided during year - 202,865
Credit to Statement of Income and Retained Earnings during year (4,015 ) -
Utilised during year - (181,107 )
Balance at 31 December 2023 14,184 166,459

11. DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

James Holland-Leader (Senior Statutory Auditor)
for and on behalf of Knox Cropper LLP

12. OTHER FINANCIAL COMMITMENTS

At the year end the company had future payments due under non-cancellable operating leases of £1,889,083 (2022: £1,546,565).

LMC OF FARNHAM LTD. (REGISTERED NUMBER: 01619456)

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


13. DIRECTOR'S ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to a director subsisted during the years ended 31 December 2023 and 31 December 2022:

2023 2022
£    £   
R E Powell
Balance outstanding at start of year 520 2,900
Amounts advanced 2,915 14,800
Amounts repaid (3,400 ) (17,180 )
Amounts written off - -
Amounts waived - -
Balance outstanding at end of year 35 520

14. RELATED PARTY DISCLOSURES

The company has use of land belonging to its shareholders for which no rent is paid and there is no formal lease in place.

15. PRIOR YEAR RECLASSIFICATION

The Company's warranty provision has been reclassified from creditors due within one year to provision for liabilities in the current year. The comparative figures have been adjusted to be presented on the same basis. There was no adjustment to net assets as at 31 December 2022 nor of the profit for the year then ended.