Caseware UK (AP4) 2023.0.135 2023.0.135 2023-09-302023-09-302022-10-0188falsefalseNo description of principal activity88true 01231854 2022-10-01 2023-09-30 01231854 2021-10-01 2022-09-30 01231854 2023-09-30 01231854 2022-09-30 01231854 2021-10-01 01231854 5 2022-10-01 2023-09-30 01231854 1 2022-10-01 2023-09-30 01231854 e:Director1 2022-10-01 2023-09-30 01231854 e:Director1 2023-09-30 01231854 e:Director2 2022-10-01 2023-09-30 01231854 e:Director2 2023-09-30 01231854 e:Director3 2022-10-01 2023-09-30 01231854 e:Director3 2023-09-30 01231854 e:Director4 2022-10-01 2023-09-30 01231854 e:Director4 2023-09-30 01231854 e:Director5 2022-10-01 2023-09-30 01231854 e:Director5 2023-09-30 01231854 e:RegisteredOffice 2022-10-01 2023-09-30 01231854 e:Agent1 2022-10-01 2023-09-30 01231854 d:Buildings 2022-10-01 2023-09-30 01231854 d:Buildings 2023-09-30 01231854 d:Buildings 2022-09-30 01231854 d:Buildings d:OwnedOrFreeholdAssets 2022-10-01 2023-09-30 01231854 d:Buildings d:LongLeaseholdAssets 2022-10-01 2023-09-30 01231854 d:Buildings d:LongLeaseholdAssets 2023-09-30 01231854 d:Buildings d:LongLeaseholdAssets 2022-09-30 01231854 d:MotorVehicles 2022-10-01 2023-09-30 01231854 d:MotorVehicles 2023-09-30 01231854 d:MotorVehicles 2022-09-30 01231854 d:MotorVehicles d:OwnedOrFreeholdAssets 2022-10-01 2023-09-30 01231854 d:FurnitureFittings 2022-10-01 2023-09-30 01231854 d:FurnitureFittings 2023-09-30 01231854 d:FurnitureFittings 2022-09-30 01231854 d:FurnitureFittings d:OwnedOrFreeholdAssets 2022-10-01 2023-09-30 01231854 d:ComputerEquipment 2022-10-01 2023-09-30 01231854 d:ComputerEquipment 2023-09-30 01231854 d:ComputerEquipment 2022-09-30 01231854 d:ComputerEquipment d:OwnedOrFreeholdAssets 2022-10-01 2023-09-30 01231854 d:OwnedOrFreeholdAssets 2022-10-01 2023-09-30 01231854 d:DevelopmentCostsCapitalisedDevelopmentExpenditure 2023-09-30 01231854 d:DevelopmentCostsCapitalisedDevelopmentExpenditure 2022-09-30 01231854 d:Goodwill 2022-10-01 2023-09-30 01231854 d:Goodwill 2023-09-30 01231854 d:Goodwill 2022-09-30 01231854 d:ComputerSoftware 2023-09-30 01231854 d:ComputerSoftware 2022-09-30 01231854 d:CurrentFinancialInstruments 2023-09-30 01231854 d:CurrentFinancialInstruments 2022-09-30 01231854 d:Non-currentFinancialInstruments 2023-09-30 01231854 d:Non-currentFinancialInstruments 2022-09-30 01231854 d:CurrentFinancialInstruments d:WithinOneYear 2023-09-30 01231854 d:CurrentFinancialInstruments d:WithinOneYear 2022-09-30 01231854 d:Non-currentFinancialInstruments d:AfterOneYear 2023-09-30 01231854 d:Non-currentFinancialInstruments d:AfterOneYear 2022-09-30 01231854 d:Non-currentFinancialInstruments d:BetweenTwoFiveYears 2023-09-30 01231854 d:Non-currentFinancialInstruments d:BetweenTwoFiveYears 2022-09-30 01231854 d:ReportableOperatingSegment1 2022-10-01 2023-09-30 01231854 d:ReportableOperatingSegment1 2021-10-01 2022-09-30 01231854 f:UnitedKingdom 2022-10-01 2023-09-30 01231854 f:UnitedKingdom 2021-10-01 2022-09-30 01231854 f:RestWorldOutsideUK 2022-10-01 2023-09-30 01231854 f:RestWorldOutsideUK 2021-10-01 2022-09-30 01231854 d:UKTax 2022-10-01 2023-09-30 01231854 d:UKTax 2021-10-01 2022-09-30 01231854 d:ShareCapital 2022-10-01 2023-09-30 01231854 d:ShareCapital 2023-09-30 01231854 d:ShareCapital 2021-10-01 2022-09-30 01231854 d:ShareCapital 2022-09-30 01231854 d:ShareCapital 2021-10-01 01231854 d:RevaluationReserve 2022-10-01 2023-09-30 01231854 d:RevaluationReserve 2023-09-30 01231854 d:RevaluationReserve 5 2022-10-01 2023-09-30 01231854 d:RevaluationReserve 2021-10-01 2022-09-30 01231854 d:RevaluationReserve 2022-09-30 01231854 d:RevaluationReserve 2021-10-01 01231854 d:RetainedEarningsAccumulatedLosses 2022-10-01 2023-09-30 01231854 d:RetainedEarningsAccumulatedLosses 2023-09-30 01231854 d:RetainedEarningsAccumulatedLosses 2021-10-01 2022-09-30 01231854 d:RetainedEarningsAccumulatedLosses 2022-09-30 01231854 d:RetainedEarningsAccumulatedLosses 2021-10-01 01231854 d:AcceleratedTaxDepreciationDeferredTax 2023-09-30 01231854 d:AcceleratedTaxDepreciationDeferredTax 2022-09-30 01231854 d:TaxLossesCarry-forwardsDeferredTax 2023-09-30 01231854 d:TaxLossesCarry-forwardsDeferredTax 2022-09-30 01231854 d:RetirementBenefitObligationsDeferredTax 2023-09-30 01231854 d:RetirementBenefitObligationsDeferredTax 2022-09-30 01231854 d:OtherDeferredTax 2023-09-30 01231854 d:OtherDeferredTax 2022-09-30 01231854 e:OrdinaryShareClass1 2022-10-01 2023-09-30 01231854 e:OrdinaryShareClass1 2023-09-30 01231854 e:FRS102 2022-10-01 2023-09-30 01231854 e:Audited 2022-10-01 2023-09-30 01231854 e:FullAccounts 2022-10-01 2023-09-30 01231854 e:PrivateLimitedCompanyLtd 2022-10-01 2023-09-30 01231854 d:WithinOneYear 2023-09-30 01231854 d:WithinOneYear 2022-09-30 01231854 d:BetweenOneFiveYears 2023-09-30 01231854 d:BetweenOneFiveYears 2022-09-30 01231854 d:MoreThanFiveYears 2023-09-30 01231854 d:MoreThanFiveYears 2022-09-30 01231854 d:PlantEquipmentOtherAssetsUnderOperatingLeases 2023-09-30 01231854 d:PlantEquipmentOtherAssetsUnderOperatingLeases 2022-09-30 01231854 d:PlantEquipmentOtherAssetsUnderOperatingLeases d:WithinOneYear 2023-09-30 01231854 d:PlantEquipmentOtherAssetsUnderOperatingLeases d:WithinOneYear 2022-09-30 01231854 d:PlantEquipmentOtherAssetsUnderOperatingLeases d:BetweenOneFiveYears 2023-09-30 01231854 d:PlantEquipmentOtherAssetsUnderOperatingLeases d:BetweenOneFiveYears 2022-09-30 01231854 5 2022-10-01 2023-09-30 01231854 6 2022-10-01 2023-09-30 01231854 d:Goodwill d:OwnedIntangibleAssets 2022-10-01 2023-09-30 01231854 d:DevelopmentCostsCapitalisedDevelopmentExpenditure d:OwnedIntangibleAssets 2022-10-01 2023-09-30 01231854 d:ComputerSoftware d:OwnedIntangibleAssets 2022-10-01 2023-09-30 iso4217:GBP xbrli:shares xbrli:pure
Registered Number:01231854













MOVAC GROUP LIMITED






FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2023











 
MOVAC GROUP LIMITED
 

 
COMPANY INFORMATION


Directors
M C P Smith (resigned 1 June 2023)
R Lang (appointed 1 June 2023, resigned 19 July 2024)
C P Matthews (appointed 1 June 2023, resigned 19 July 2024)
K Parvin (appointed 1 June 2023, resigned 2 August 2024)
P U Barnard (appointed 19 July 2024)




Registered number
01231854



Registered office
11 Portman Road

Ipswich

Suffolk

IP1 2BP




Independent auditor
Sumer Auditco Limited

Fitzroy House

Crown Street

Ipswich

Suffolk

IP1 3LG




Bankers
The Royal Bank Scotland plc
49 Charing Cross

London

SW1A 2DX




Solicitors
Ashton Legal
Waterfront House

1a Wherry Quay

Ipswich

Suffolk

IP4 1AS






 
MOVAC GROUP LIMITED
 


CONTENTS



Pages
Strategic Report
1 - 3
Director's Report
4 - 5
Independent Auditor's Report
6 - 9
Statement of Comprehensive Income
10
Balance Sheet
11 - 12
Statement of Changes in Equity
13
Notes to the Financial Statements
14 - 33



 
MOVAC GROUP LIMITED
 

 
STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2023

The Director presents the Annual Report and the financial statements for the year ended 30 September 2023.

Principal activities and business review
 
The principal activities of the Company are trading as a distributor of coatings for the automotive and industrial sectors, including sundries and motor accessories.
The company has faced economic difficulties during the year ended 30 September 2023 and post year end the company has new management.
On 19 July 2024, The ultimate holding company of Movac Group Limited was purchased by Soft Auto's Limited, following this purchase on 11th September 2024, Soft Auto's Limited purchased Movac Group Limited from Movac Holdings Limited (the former intermediate holding company) and it is not a direct subsidiary of Soft Auto's Limited. The ultimate controlling party of Soft Auto's and new Director Pieter-Uys Barnard is looking forward to the future with new strategies to improve the business moving forward and restructure the company.
Sales for the year reached £15.5m an increase of 9% [2022: £14.1m].  The Company continues to implement new directives and appropriate measures which mitigate against potential future impact to ensure the Company is well placed within the UK Market.  The Economic and Political environment across the Company’s local and national network is constantly under review as well as the global impacts on supply chain. During the year management continued to invest in human capital into both divisions has enabled the Company to maintain its strategic goals despite continued challenging economic uncertainties during the year and the company continues to put in place appropriate measures to mitigate and protect itself from any impacts the economic climate presents. Since the change in ownership, management have reviewed headcount and job roles with the aim of increasing efficiency and reducing cost.
Bad debts for the Company were limited once again with the credit control department performing exceptionally well considering the UK market and cash availability challenges.  Greater controls on KPI’s for all customers new and existing with use of credit houses ensuring the Company continues to mitigate against bad debt risk.
The director continues to consider the turnover, stock turnover, and gross profit percentage to be the most appropriate key performance indicators for the Company.
The Company is satisfied with the actions they have taken since acquiring the Company in the post balance sheet period and are confident that they have been made for the betterment of the business and its future.

Future developments
Since acquiring control of the business, the Management of Soft Auto have been undertaking a detailed review of the operations and cost base of Movac Group Limited.  The aim of this review is to identify and implement cost efficiencies that will enhance the Company’s liquidity and enable it to be more efficient in its approach developing and improving its market conditions.  Through this the Management of Soft Auto believe that they will be able to return the Company to profitability and improve the Companies working capital position.


- 1 -



 
MOVAC GROUP LIMITED
 


STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023

Principal risks and uncertainties
 
The director has considered the financial risks of the Company and put in place suitable procedures and policies to mitigate the risks to an acceptable level.  In particular, full company restructure with a new Managing Director to be announced in the coming week, head count will be reduced to approximately 40 employees.  Revised budget and cash forecasts have been prepared in response to the continuing economic uncertainties and the requirement to restructure the business in line with future forecast.  Raw materials and supply chain have proven to be challenging due to global increases in raw material costs and inflation, however Movac has forged new partnerships with Suppliers and continues to negotiate more favourable terms.   
Credit risk
The Company's principal financial assets are cash and trade debtors. The credit risk associated with the cash balances is limited as the counterparties have high credit ratings assigned by international credit-rating agencies. The principal credit risk arises therefore from the Company's trade debtors. In order to manage credit risk, the Director and management set limits for customers based on a combination of payment history and third-party credit verification procedures. The recoverability of trade debtors is reviewed on a regular basis through review of debtor aging and collection history and provision is made for doubtful debts where necessary.
Liquidity risk
The Company manages its cash and borrowing requirements on a regular basis in order to minimise the interest expense, whilst ensuring that the Company has sufficient liquid resources to meet the operating needs of the business. Working capital is primarily received through an Invoice Discounting Facility.  This facility is currently with RBS at a level of 64% however we are currently completing an application with HSBC which will then move the level to 90% potentially and is further supported through an overdraft facility and a bank loan.  The bank overdraft facility is renewed on an annual basis and was renewed in November 2023 for a further year at the same rate.  As we are now in September 2024 we are discussing with both RBS and HSBC to decide what is best for the business moving forward. The bank loan was refinanced in September 2021 with an expiry date of September 2026 with fixed rate terms similar to those of the previous agreement.
Interest rate risk
The Company is exposed to cash flow interest rate risk on its bank loan, overdraft and invoice discounting facility. The risk is mitigated through rates of each facility being fixed to track the bank base rate; this risk will also be reduced over the coming 8-12 weeks as we move across to HSBC once we have finished our review of all options available.

Financial instruments
 
The Company's principal financial instruments include the bank overdraft, invoice discounting facility and bank loan, the purpose of which is to provide sufficient finance for the Company's day to day operations. In addition, the Company has various other financial assets and liabilities, such as trade debtors and trade creditors arising directly from its operations.

Other key performance indicators
 
The Company measures performance on a regular basis utilising management reports designed to provide the Director with key operational information.


- 2 -



 
MOVAC GROUP LIMITED
 


STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023


This report was approved by the Board on 21 October 2024 and signed on its behalf.



P U Barnard
Director


- 3 -



 
MOVAC GROUP LIMITED
 

 
DIRECTOR'S REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2023

The Director presents his report and the financial statements for the year ended 30 September 2023.

Director's responsibilities statement

The Director is responsible for preparing the Strategic Report, the Director's Report and the financial statements in accordance with applicable law and regulations.
 
Company law requires the Director to prepare financial statements for each financial year. Under that law the Director has 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 Director must not approve the financial statements unless he is 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 Director is required to:


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

make judgements and accounting estimates that are reasonable and prudent; and

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

The Director is 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 him to ensure that the financial statements comply with the Companies Act 2006He is 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 year, after taxation, amounted to £1,944,612 (2022 - profit £123,289).

The Director does not recommend the payment of a final dividend for the year (2022 - £257,860). 

Directors

The Director who served during the year and to the date of this report were:

M C P Smith (resigned 1 June 2023)
R Lang (appointed 1 June 2023, resigned 19 July 2024)
C P Matthews (appointed 1 June 2023, resigned 19 July 2024)
K Parvin (appointed 1 June 2023, resigned 2 August 2024)

Qualifying third party indemnity provisions

The Company has made qualifying third party indemnity provisions for the benefit of the Directors which were in place during the year and remain in force at the date of this report.


- 4 -



 
MOVAC GROUP LIMITED
 

 
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023

Matters covered in the Strategic Report

Information regarding the performance of the Company, principal risks and uncertainties and details of any significant future developments have been disclosed in the Strategic Report.

Disclosure of information to auditor

The Directors at the time when this Director's Report is approved has confirmed that:
• so far as the Director is aware, there is no relevant audit information of which the Company's auditor is 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 auditor is aware of that information.

Post balance sheet events

On 19 July 2024 Movac Coatings (Holdings) Limited, the ultimate parent company of Movac Group Limited was purchased by Soft Auto Limited, of which P U Barnard is the ultimate controlling party. On 11 September 2024. Soft Auto Limited purchased the shares of Movac Group Limited from Movac Holdings Limited (the intermediate holding company of the Movac Coatings (Holdings Limited) Group. 

Auditor

On 28 March 2024 our auditor, SB Audit LLP, merged with Sumer Auditco Limited.
Accordingly SB Audit LLP formally resigned as the Company's auditor with the Directors duly appointing Sumer
Auditco Limited to fill the vacancy arising. The auditor, Sumer Auditco Limited, will be proposed for
reappointment in accordance with section 485 of the Companies Act 2006.
The auditor, Sumer Auditco Limited, will be proposed for reappointment in accordance with section 485 of the
Companies Act 2006.

This report was approved by the Board on 21 October 2024 and signed on its behalf.
 





P U Barnard
Director


- 5 -



 
MOVAC GROUP LIMITED
 

 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF MOVAC GROUP LIMITED

Opinion


We have audited the financial statements of Movac Group Limited (the 'Company') for the year ended 30 September 2023, which comprise of the Statement of Comprehensive Income, the Balance Sheet, 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 30 September 2023 and of its loss 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 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 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.


Emphasis of matter - post year end restructuring


We draw your attention to note 2.3 of the financial statements which describes the actions taken by the new management team following the change of control in the post balance sheet period. This describes the actions being taken to improve the competitiveness, efficiency, and liquidity of the Company. The challenging economic conditions faced by the Company in recent years have adversely impacted the Company's trading and liquidity, the new management teams ability to implement their plans will be key in ensuring the Company is able to develop its market position and generate the working capital it requires to continue to meet its liabilities as they fall due for payment.  Our opinion is not modified in respect of this matter.


Conclusions relating to going concern


In auditing the financial statements, we have concluded that the Director's 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 Director with respect to going concern are described in the relevant sections of this report.



- 6 -



 
MOVAC GROUP LIMITED
 

 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF MOVAC GROUP LIMITED (CONTINUED)

Other information


The other information comprises the information included in the Annual Report other than the financial statements and  our Auditor's Report thereon.  The Director is responsible for the other information contained within the Annual 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. 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 Director's Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic Report and the Director's 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 Director's 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 Director's remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of the Director
 

As explained more fully in the Director's Responsibilities Statement, set out on page 4, the Director is 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 Director determines 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 Director is 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 Director either intends to liquidate the Company or to cease operations, or have no realistic alternative but to do so.



- 7 -



 
MOVAC GROUP LIMITED
 

 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF MOVAC GROUP LIMITED (CONTINUED)

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.


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial experience and through discussions and enquiries of the Director and management. During the engagement team briefing, the outcomes of these discussions were shared with the team, as well as consideration as to where and how fraud may occur in the Company.
The following laws and regulations were identified as being of significance to the Company:
• Those laws and regulations considered to have a direct effect on the financial statements including UK financial reporting standards, UK Company Law and taxation legislation; and
• Those laws and regulations considered to have an indirect effect on the financial statements including The Health & Safety Act 1974, GDPR, anti-bribery and corruption, human rights and  Employment law.

Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised of: enquiries of management and those charged with governance as to whether the Company complies with such regulations; enquiries of management and those charged with governance concerning any actual or potential litigation or claims, inspection of relevant legal documentation, review of board minutes, testing of journal entries, performance of analytical review to identify any unexpected movements in account balances which may be indicative of fraud.
There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).


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.



- 8 -



 
MOVAC GROUP LIMITED
 

 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF MOVAC GROUP LIMITED (CONTINUED)

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 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.





John Perry (Senior Statutory Auditor)
  
for and on behalf of
Sumer Auditco Limited
 
Statutory Auditor
  
Fitzroy House
Crown Street
Ipswich
Suffolk
IP1 3LG

21 October 2024

- 9 -



 
MOVAC GROUP LIMITED
 

 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 SEPTEMBER 2023

2023
2022
Note
£
£

  

Turnover
 4 
15,254,359
14,171,520

Cost of sales
  
(10,308,429)
(9,271,479)

Gross profit
  
4,945,930
4,900,041

Administrative expenses
  
(5,926,376)
(4,754,907)

Other operating income
 5 
74,235
45,000

Operating (loss)/profit
 6 
(906,211)
190,134

Amounts written off investments
  
(765,071)
-

Interest receivable and similar income
 9 
51
2,594

Interest payable and similar expenses
 10 
(170,008)
(82,328)

(Loss)/profit before tax
  
(1,841,239)
110,400

Tax on (loss)/profit
 11 
(103,373)
12,889

(Loss)/profit for the financial year
  
(1,944,612)
123,289

Other comprehensive income for the year
  

Unrealised surplus on revaluation of tangible fixed assets
  
914,899
-

Other comprehensive income for the year
  
914,899
-

Total comprehensive income for the year
  
(1,029,713)
123,289

The notes on pages 14 to 33 form part of these financial statements.


- 10 -



 
MOVAC GROUP LIMITED
REGISTERED NUMBER:01231854


BALANCE SHEET
AS AT 30 SEPTEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Intangible assets
 13 
33,051
42,639

Tangible assets
 14 
2,310,423
1,490,169

Investments
 15 
1
1

  
2,343,475
1,532,809

Current assets
  

Stocks
 16 
1,693,251
1,636,680

Debtors: amounts falling due within one year
 17 
3,022,799
4,317,495

Cash at bank and in hand
 18 
1,331
26,035

  
4,717,381
5,980,210

Creditors: amounts falling due within one year
 19 
(6,032,958)
(5,510,835)

Net current (liabilities)/assets
  
 
 
(1,315,577)
 
 
469,375

Total assets less current liabilities
  
1,027,898
2,002,184

Creditors: amounts falling due after more than one year
 20 
(700,312)
(748,258)

Provisions for liabilities
  

Deferred tax
 22 
(123,926)
(20,553)

  
 
 
(123,926)
 
 
(20,553)

Net assets
  
203,660
1,233,373


Capital and reserves
  

Called up share capital 
 23 
30,000
30,000

Revaluation reserve
 24 
1,072,872
157,973

Profit and loss account
 24 
(899,212)
1,045,400

  
203,660
1,233,373



- 11 -



 
MOVAC GROUP LIMITED
REGISTERED NUMBER:01231854

    
BALANCE SHEET (CONTINUED)
AS AT 30 SEPTEMBER 2023

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 21 October 2024.




P U Barnard
Director

The notes on pages 14 to 33 form part of these financial statements.


- 12 -



 
MOVAC GROUP LIMITED
 


STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2023


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

£
£
£
£


At 1 October 2021
30,000
157,973
1,179,971
1,367,944


Comprehensive income for the year

Profit for the year
-
-
123,289
123,289
Total comprehensive income for the year
-
-
123,289
123,289


Contributions by and distributions to owners

Dividends: Equity capital
-
-
(257,860)
(257,860)



At 1 October 2022
30,000
157,973
1,045,400
1,233,373


Comprehensive income for the year

Profit for the year
-
-
(1,944,612)
(1,944,612)

Surplus on revaluation of freehold property
-
914,899
-
914,899


Other comprehensive income for the year
-
914,899
-
914,899


Total comprehensive income for the year
-
914,899
(1,944,612)
(1,029,713)


Total transactions with owner
-
-
-
-


At 30 September 2023
30,000
1,072,872
(899,212)
203,660


The notes on pages 14 to 33 form part of these financial statements.


- 13 -



 
MOVAC GROUP LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

1.


General information

Movac Group Limited (the "Company") is a private company limited by shares, domiciled and incorporated in England and Wales. The address of the registered office is 11 Portman Road, Ipswich, Suffolk IP1 2BP.
The principal activity of the Company during the year was trading as a distributor of coatings for the automotive and industrial sectors, including sundries and motor accessories.

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 financial statements are presented in sterling which is the functional currency of the Company and rounded to the nearest £.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement 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 Movac Coatings (Holdings) Limited as at 30 September 2023 and these financial statements may be obtained from Companies House, Crown Way, Cardiff CF14 3UZ.


- 14 -



 
MOVAC GROUP LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

2.Accounting policies (continued)

 
2.3

Going concern

The Company's business activities together with the factors likely to affect its future development, its financial position and principal risks and uncertainties are set out in the Strategic Report. The Director and management have prepared detailed forecasts that show that the Company will have sufficient financial resources to continue in operational existence for the foreseeable future, being at least 12 months from the date of approval of these financial statements, providing they obtain the new invoice discounting facility as detailed below and suppliers do not recall their liabilities. The Director of the Company has other business interests that are a supplier to Movac Group Limited. The Director has confirmed that he will continue to support Movac Group Limited and will not call in the balances due until the Company has sufficient resources.
The balance sheet shows a net current liabilities position of £1,315,577, of this £1,844,291, relates to the invoice discounting facility and therefore as detailed above the Company is dependant upon the continuation of this facility.
On 19 July 2024 Movac Coatings (Holdings) Limited, the ultimate parent company of Movac Group Limited was purchased by Soft Auto Limited, of which P U Barnard is the ultimate controlling party. On 11 September 2024. Soft Auto Limited purchased the shares of Movac Group Limited from Movac Holdings Limited (the intermediate holding company of the Movac Coatings (Holdings) Limited group. 
Under new management, the Company is undergoing a detailed review of the it's operations as part of a reorganisation programme to improve efficiencies. Plans to achieve improved liquidity include, changing the Invoice Discounting Facility to a new provider, which will then move the current level from 64% up to a potential 90%, if this is achieved this will have a positive impact on cashflow by accelerating the receipt of funds following the sale of goods. Management are also reviewing the Company's overdraft facility loan arrangements. The Company's current overdraft facility is due for renewal in November 2024 and there is no indication that this will not be agreed on similar terms and the bank loan was refinanced in the previous year such that repayments will occur over the period to September 2026. Whilst the Company's current Invoice Discounting facility has a notice period of one month, the Director has received no indication from the Company's bankers that the facility will cease to be made available.
As at the time of approving these financial statements, managements review of the Company's operational arrangements is ongoing and the Director will be making further changes to the Company's operations with the aim of improving trading efficiency and liquidity.
In preparing the forecasts, the Director and management have made certain assumptions around forecasts revenues and cash flows, which they believe are prudent and reflecting the likely impact of the ongoing cost of living crisis and the wider global economic environment.
There is always uncertainty when preparing business forecasts, and the Director recognises that the current global economic environment potentially increases the level of uncertainty when preparing its cash flow and trading forecasts. However, given the current trading results of the business, its success in adapting its operations, along with the renewal of certain bank facilities, the Director does not believe that uncertainty casts significant doubt over the ability to continue to meet its liabilities as they fall due. Accordingly, the Director has continued to prepare these financial statements on a going concern basis.


- 15 -



 
MOVAC GROUP LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

2.Accounting policies (continued)

 
2.4

Turnover

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.

  
2.5

Defined contribution pension scheme

The Company operates a defined contribution pension scheme for its employees. A defined contribution pension scheme 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 Other Creditors as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.


- 16 -



 
MOVAC GROUP LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

2.Accounting policies (continued)

 
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

Goodwill

Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the Statement of Comprehensive Income over its useful economic life.

Other 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.


- 17 -



 
MOVAC GROUP LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 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.

Having considered the accounting treatment of the freehold property, management consider that the fair value basis provides a better indication of the value of these assets rather than the depreciated historic cost basis that had been adopted in the pasts.  Therefore, when preparing these financial statements the Director has taken the decision to revise that accounting for the freehold property to the fair value model of accounting.

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.

Depreciation is provided on the following basis:

Freehold property
-
0-2% straight line
Leasehold Property
-
over the lease term on a straight line basis
Motor vehicles
-
25% straight line
Fixtures and fittings
-
10% straight line
Computer equipment
-
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.

No depreciation has been provided on freehold property during the year as following the receipt of valuation reports from a third party the Director considers the amounts included in note 14 to represent the fair value at the year end date.
At each year end, the Company reviews the carrying values of each individual tangible fixed asset for impairment indicators. Where impairment indicators are identified then the recoverable amount is compared to the carrying value in the financial statements and where necessary an impairment charge is recognised in the Statement of Comprehensive Income.


- 18 -



 
MOVAC GROUP LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

2.Accounting policies (continued)

 
2.9

Revaluation of tangible fixed assets

Individual freehold and leasehold properties are carried at current year value 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.

 
2.10

Investment

The investment is measured at cost less accumulated impairment charges. 

 
2.11

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 weighted average 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.

 
2.12

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.

 
2.13

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.

 
2.14

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.


- 19 -



 
MOVAC GROUP LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

2.Accounting policies (continued)

 
2.15

Provision for liabilities

Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Balance Sheet.

 
2.16

Financial instruments

The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks, loans to related parties and investments in ordinary shares.
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows 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 arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a Director in the case of a small company, or a public benefit entity concessionary loan.

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 objective evidence of impairment is found, an impairment loss is recognised in the Statement of Comprehensive Income.

Financial assets and liabilities are offset and the net amount reported in the Balance Sheet when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

  
2.17

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an Annual General Meeting.


- 20 -



 
MOVAC GROUP LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

3.


Judgements in applying accounting policies and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgments, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date, and the amounts reported for income and expenditure during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date that have a risk of causing a material adjustment to the carrying amount of assets and liabilities within the next financial year are mentioned below:
Useful economic lives of property, plant and equipment
The annual depreciation charge for property, plant and equipment is sensitive to changes in the useful economic lives and residual values of assets. The economic lives and residual values are re-assessed annually. They are revised when necessary to reflect current estimates, based on recoverability and expected economic utilisation of the asset.
Useful economic lives of intangible fixed assets
The annual amortisation charge for intangible fixed assets is sensitive to changes in the useful economic lives and residual values of assets. The economic lives and residual values are re-assessed annually. They are revised when necessary to reflect current estimates, based on recoverability and expected economic utilisation of the asset.
Recoverability of trade debtors
A provision for bad debts is made where it is identified that a trade debtor may not be recoverable in full by the Company. The bad debt provision is made on a specific basis against customer balances where they are not considered recoverable based upon payment history and aging profile.
Valuation of stock
Stock is held at the lower of cost and net realisable value. Management reviews the stock holdings and make a provision for slow moving and obsolete stock where the recoverable amount on a stock item has fallen below the cost. Slow moving stock is typically provided against where the stock line has not been sold in the past 2 years.
Recoverability of amounts due from a related party
Amounts receivable from a related party is assessed individually against the net assets and future expected short term profits of the counterparty. Provisions are made for any of the receivable that is considered to be irrecoverable in the short term.
Fair value of freehold property 
The determination of the value of the freehold property is based on advice received from external parties, it is however subject to significant estimation and judgement due to the subjective nature of property valuations. As such there is the potential that the amounts realised in an open market sale could differ to the amounts at which these properties are stated in the financial statements.
 


- 21 -



 
MOVAC GROUP LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

4.


Turnover

An analysis of turnover by class of business is as follows:


2023
2022
£
£

Sale of goods
15,254,359
14,171,520


Analysis of turnover by country of destination:

2023
2022
£
£

United Kingdom
15,056,024
14,030,490

Rest of the World
198,335
141,030

15,254,359
14,171,520



5.


Other operating income

2023
2022
£
£

Management fee income from related party (see note 27)
74,235
45,000



6.


Operating (loss)/profit

The operating profit is stated after charging/(crediting):

2023
2022
£
£

Depreciation of tangible fixed assets
180,464
171,295

Amortisation of intangible assets, including goodwill
(9,588)
(9,861)

Defined contribution pension cost
188,593
128,489

The Company has taken advantage of the exemption not to disclose amounts paid for non audit services as these are disclosed in the consolidated financial statements of the ultimate parent undertaking.


- 22 -



 
MOVAC GROUP LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

7.


Employees

Staff costs, including Director's remuneration, were as follows:


2023
2022
£
£

Wages and salaries
2,909,398
2,818,611

Social security costs
291,575
282,748

Cost of defined contribution pension scheme
188,593
128,489

3,389,566
3,229,848


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


        2023
        2022
            No.
            No.







Sales and branch staff
65
65



Office and management
23
23

88
88


8.


Director's remuneration

2023
2022
£
£

Director's emoluments
187,978
164,033

Company contributions to defined contribution pension schemes
24,150
25,800

212,128
189,833


During the year retirement benefits were accruing to the Director (2022 - 1) in respect of the defined contribution pension scheme.


9.


Interest receivable and similar income

2023
2022
£
£


Interest receivable on Director's loan account
51
2,594


- 23 -



 
MOVAC GROUP LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

10.


Interest payable and similar expenses

2023
2022
£
£


Bank overdraft interest payable
20,561
9,504

Bank loan interest payable
22,516
24,369

Invoice discounting facility interest payable
126,931
48,455

170,008
82,328


11.


Taxation


2023
2022
£
£

Current tax


Adjustments in respect of prior years
-
(30,596)


Deferred tax


Origination and reversal of timing differences
103,373
17,707


Taxation on profit on ordinary activities
103,373
(12,889)

- 24 -



 
MOVAC GROUP LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
 
11.Taxation (continued)


Factors affecting tax (credit)/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 19% (2022 - 19%). The differences are explained below:

2023
2022
£
£


(Loss)/profit on ordinary activities before tax
(1,841,239)
110,400


(Loss)/profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2022 - 19%)
(349,835)
20,976

Effects of:


Expenses not deductible for tax purposes
245,387
6,424

Unrecognised deferred tax asset
87,596
-

Adjustments to tax charge in respect of prior years
-
(30,596)

Capital gains
120,225
-

Effect of changes in tax rate
-
(9,693)

Total tax (credit)/charge for the year
103,373
(12,889)


Factors that may affect future tax charges

In the Spring Budget 2021 the UK Government announced that the rate of UK Corporation tax would increase to 25% from 1 April 2023 with an introduction of a small profits rate of 19% at the same point in time. These changes were substantively enacted into law when the Finance Act 2021 was given Royal Assent on 10 June 2021.
Accordingly any deferred tax assets and liabilities are stated at 25% (2021 - 25%).


12.


Dividends

2023
2022
£
£


Interim dividends paid on Ordinary shares
-
257,860


- 25 -



 
MOVAC GROUP LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

13.


Intangible assets




Computer software
Website develop-
ment
Goodwill
Total

£
£
£
£



Cost


At 1 October 2022
315,788
42,192
774,924
1,132,904



At 30 September 2023

315,788
42,192
774,924
1,132,904



Amortisation


At 1 October 2022
314,638
703
774,924
1,090,265


Charge for the year on owned assets
1,150
8,438
-
9,588



At 30 September 2023

315,788
9,141
774,924
1,099,853



Net book value



At 30 September 2023
-
33,051
-
33,051



At 30 September 2022
1,150
41,489
-
42,639


The computer software and website development costs are both being amortised on a straight-line basis of 5 years from the date that the asset is available for use by the Company. The amortisation charge is recognised within administrative expenses.



- 26 -



 
MOVAC GROUP LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

14.


Tangible fixed assets





Freehold properties
Leasehold properties
Motor vehicles
Fixtures 
and 
fittings
Computer equipment
Total

£
£
£
£
£
£



Cost or valuation


At 1 October 2022
1,120,402
111,980
436,628
662,859
267,213
2,599,082


Additions
-
-
-
39,502
48,154
87,656


Disposals
-
-
(17,640)
-
-
(17,640)


Revaluations
764,598
-
-
-
-
764,598



At 30 September 2023

1,885,000
111,980
418,988
702,361
315,367
3,433,696



Depreciation


At 1 October 2022
140,281
89,039
205,378
465,605
208,610
1,108,913


Charge for the year on owned assets
10,020
-
92,362
43,126
34,956
180,464


Disposals
-
-
(15,803)
-
-
(15,803)


On revalued assets
(150,301)
-
-
-
-
(150,301)



At 30 September 2023

-
89,039
281,937
508,731
243,566
1,123,273



Net book value



At 30 September 2023
1,885,000
22,941
137,051
193,630
71,801
2,310,423



At 30 September 
2022
980,121
22,941
231,250
197,254
58,603
1,490,169

During the year the Company has taken the decision to revise the accounting for the freehold property to the fair value model of accounting. The Company's freehold properties have been revalued on 29 January 2024 by Eddisons on the basis of open market value with vacant possession. Their historic cost less depreciation amounted to £970,101. 


- 27 -



 
MOVAC GROUP LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

15.


Fixed asset investments





Other investment

£



Cost and net book value


At 1 October 2022
1



At 30 September 2023
1




The fixed asset investment relates to a shareholding in Saxon Way Management Company Limited with 6.25% of the voting rights.


16.


Stocks

2023
2022
£
£

Finished goods and goods for resale
1,693,251
1,636,680


The carrying value of stocks are stated net of impairment losses amounting to £50,399 (2022 - £100,724) During the year an impairment charge amounting to £Nil (2022 - £50,325)was recognised in the Statement of Comprehensive Income.


17.


Debtors

2023
2022
£
£


Trade debtors
2,635,324
2,972,998

Amounts owed by group undertakings
-
427,561

Other debtors
16,244
363,562

Prepayments and accrued income
371,231
553,374

3,022,799
4,317,495



- 28 -



 
MOVAC GROUP LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

18.


Cash and cash equivalents

2023
2022
£
£

Cash at bank and in hand
1,331
26,035

Less: bank overdrafts
(2,134,742)
(2,039,827)

(2,133,411)
(2,013,792)



19.


Creditors: Amounts falling due within one year

2023
2022
£
£

Bank overdrafts
2,134,742
2,039,827

Bank loans
47,732
46,319

Trade creditors
3,449,117
2,978,181

Other taxation and social security
209,861
310,304

Other creditors
146,505
116,933

Accruals and deferred income
45,001
19,271

6,032,958
5,510,835


Included within Bank overdrafts are amounts owed to the Company's bankers under an Invoice Discounting facility, amounting to £1,844,291 (2022 - £1,743,486).
Included within other creditors is a loan from the Director, amounting to £100,357 (2022 - £101,468). See note 27 for further details.


20.


Creditors: Amounts falling due after more than one year

2023
2022
£
£

Bank loans
700,312
748,258


The bank overdraft, the Invoice Discounting Facility and the bank loans are all secured by a fixed and floating charge over the Company's assets, the book debts of the Company, and a first legal charge over the freehold properties and leasehold properties held by Royal Bank of Scotland. The bank loans bear interest at fixed rates between 2.96% and 3.12%.


- 29 -



 
MOVAC GROUP LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

21.


Bank loans


Analysis of the maturity of the bank loans are as follows:


2023
2022
£
£

Amounts falling due within one year

Bank loans
47,732
46,319


Amounts falling due 2-5 years

Bank loans
700,312
748,258


748,044
794,577



22.


Deferred taxation




2023
2022


£

£






At beginning of year
20,553
2,846


Charge to profit or loss
103,373
17,707



At end of year
123,926
20,553

The deferred tax liability comprises:

2023
2022
£
£


Accelerated capital allowances
-
81,985

Tax losses
-
(59,551)

Other short term timing differences
-
(1,881)

Property revaluation timing differences
(123,926)
-

123,926
20,553


- 30 -



 
MOVAC GROUP LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

23.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



30,000  Ordinary shares of £1 each
30,000
30,000



24.


Reserves

Revaluation reserve

The revaluation reserve relates to the revaluation of freehold properties

Profit and loss account

The reserve includes all current and prior year retained profits and losses less dividends paid.


25.


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 cost charge represents contributions payable by the Company to the fund and amounted to £164,443 (2022 - £128,489). Included within other creditors at the year end is £17,292 (2022 - £15,465) of unpaid contributions.


- 31 -



 
MOVAC GROUP LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

26.


Commitments under operating leases

At 30 September 2023 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2023
2022
£
£

Land and buildings


Within 1 year
128,123
216,413

Later than 1 year and not later than 5 years
352,196
459,442

After 5 years
172,345
231,570

652,664
907,425

2023
2022

£
£

Other


Within 1 year
184,177
120,363

Later than 1 year and not later than 5 years
162,063
155,042

346,240
275,405


27.


Related party transactions

Transactions with fellow group undertaking
The Company has taken advantage of the exemption under FRS 102 to not disclose transactions with Movac Holdings Limited or Movac Coatings (Holdings) Limited as the Company was a wholly owned subsidiary.
Transactions with other related parties
During the year, the Company leased two properties from a pension scheme controlled by the former Director, M Smith. The Company paid the pension scheme £58,800 (2022 - £58,800) in relation to rental charges on these properties. No amounts were outstanding at either 30 September 2022 or 2023.
At 30 September  2023, the Company was owed £NIL (2022 - £316,338) from a company which was 100% owned by the Directors during the year, up until restructuring in June 2023. At 30 September 2023 is was a fellow group subsidiary of Movac Coatings (Holdings) Limited . During the year the Company charged the related party for property and management fees amounting to £74,235 (2022 - £45,000). In the prior year, the balance had no fixed repayment date, was interest free and included in other debtors. 
Transactions with the Director
At 30 September 2023, the Company owed the former Director (M Smith) £100,357 (2022 - £101,468), and is included within other creditors (2022 - included within other creditors). Interest accrues on the balance at 2.5% per annum. Interest receivable by the Company in the year amounted to £Nil (2022 - £2,594). The maximum overdrawn balance during the year was £Nil (2022 - £154,934). 


- 32 -



 
MOVAC GROUP LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

28.


Post balance sheet events

On 19 July 2024 Movac Coatings (Holdings) Limited, the ultimate parent company of Movac Group Limited was purchased by Soft Auto Limited, of which P U Barnard is the ultimate controlling party. On 11 September 2024. Soft Auto Limited purchased the shares of Movac Group Limited from Movac Holdings Limited (the intermediate holding company of the Movac Coatings (Holdings Limited group. 


29.


Controlling party

At 30 September 2023 the ultimate controlling party was R Lang, C Matthews and K Parvin by virtue of the majority shareholding in Movac Coatings (Holdings) Limited, the immediate parent undertaking is Movac Holdings Limited, and the ultimate parent undertaking is Movac Coatings (Holdings) Limited. Both these companies are incorporated in England and Wales.
The smallest and largest group of companies for which consolidated financial statements incorporating the results of the Company is headed by Movac Coatings (Holdings) Limited. Copies of the consolidated financial statements of Movac Coatings (Holdings) Limited are publicly available from Companies House, Crown Way, Cardiff CF14 3UZ.
Following the change of control in July 2024, the ultimate controlling party is P U Barnard.

 

- 33 -