Company registration number 00559275 (England and Wales)
C WALTON LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
C WALTON LIMITED
COMPANY INFORMATION
Directors
M Forbes
F Sheikh
(Appointed 1 July 2024)
Company number
00559275
Registered office
Central House
Leeds Road
Rothwell
Leeds
West Yorkshire
United Kingdom
LS26 0JE
Auditor
Deloitte LLP
Statutory Auditor
1 City Square
Leeds
United Kingdom
LS1 2AL
Bankers
Barclays Bank Plc
PO Box 6539
Leicester
United Kingdom
LE87 2GA
Solicitors
CMS Cameron McKenna Nabarro Olswang LLP
Cannon Place
78 Cannon Street
London
United Kingdom
EC4N 6AF
C WALTON LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Directors' responsibilities statement
5
Independent auditor's report
6 - 8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Notes to the financial statements
12 - 25
C WALTON LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

The Directors present the Strategic Report for C Walton Limited ('the Company') for the year ended 31 December 2023.

 

The Company is a member of the Manheim Global Management Services UK Limited group of companies ('the Group'). The Group is part of the Cox Automotive Incorporated division within Cox Enterprises Incorporated, based in the United States of America.

Fair review of the business

During the year the Company generated increased volumes in every month compared to the prior year, as volumes

returned from the retraction seen in the previous 12 months. Volumes are measured by worklines, which are individual billable jobs completed. As volumes returned, the business adapted to heightened activity levels, requiring additional resources to meet demand. Agency staff for example, required at short notice, drove up overall costs of labour. The impact on financial performance is presented in the key performance indicators section below.

 

Persistent inflation continued to impact underlying costs as in prior year. Overheads increased due to the heightened volume activity. Despite challenges, the Company again delivered on commitments to key customers.

 

Profitability is driven by mix of work lines and volume. Profitability was positively impacted by more higher margin work lines over prior year in terms of mix and volume. Margins were supported by securing price increases and identifying more efficient ways of working, such as driving supplier savings during annual contract negotiations. Overall Revenue per workline improved year on year.

Analysis based on Key Performance Indicators

Financial key performance indicators ('KPIs') include revenue and profit.

 

Turnover increased during the year by a significant 40%, £19.2m to £66.4m (2022: £47.3m), as volumes returned following the drop in the prior year. Storage fees increased due to the higher volume of vehicles on site. A damaged workshop, offline due to a fire for part of the prior year, was brought back online during the year supporting additional volumes. The changing mix of services also generated higher fees per workline. Additional shifts were introduced to support growing volumes and ensure service delivery levels were achieved.

 

Margins were also impacted by higher utilisation of agency staff to meet rapid growth in demand. Increased volumes drove up overheads, primarily rates, waste removal, and sundries. Insurance premiums increased following claims made during prior year. This all impacted the Operating loss.

 

Insurance settlements of £2.1m were received in relation to a business interruption claim following the fire in prior year. £0.5m related to restoration of leased assets damaged by the incident.

 

Management views the Operating losses of £5.8m (2022: £6.8m) as below expectations. Whilst the Company benefited from a rapid return of volumes after a period of retraction, high costs were incurred in order to meet service level agreements, mainly driven by inflationary pressure.

 

Non-financial KPIs include the number of arrivals and dispatches of stock. Arrivals increased 31% (2022: fell 5%) and despatches increased 31% (2022: fell 23%), reflecting the markedly high volumes experienced. Work line volumes are also monitored as a KPI, being the number of individual elements of servicing completed. Management notes that workline volumes increased 37% year-on-year (2022: 1.5% increase).

Principal Risks and Uncertainties

Principal risks and uncertainties affecting the Company are captured by a risk assessment completed at the Group level. Given the Group operates in the same market across multiple companies and areas, centralised risk assessment is the most efficient approach to risk management. The principal risks and uncertainties relate to vehicle volumes, macroeconomic and regulatory environments and IT risks surrounding key systems. Group risks are presented in the Annual report and financial statements of Manheim Global Management UK Limited available from UK Companies House.

C WALTON LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Companies Act 2006 Section 172(1) statement

The Directors consider that they have acted in the way they believe in good faith would be most likely to promote the success of the Company (having regard to the stakeholders and matters set out in secton 172(1)(a-f) of the Companies Act 2006 in the decisions taken during the period. These matters are set out in detail in the Manheim Global Management UK Limited Annual report and financial statements for the year ended 31 December 2023 and are summarised below:

 

 

Decision-making within the Company is integrated with the wider Group and therefore the approach taken to promote success is consistent with that presented in the Manheim Global Management UK Limited Annual report and financial statements for the year-ended 31 December 2023. Given the Company shares common directors with the Group and common management exists between Group entities, performance management and stakeholder analysis occurs centrally at Group level.

Approved by the Board of Directors and signed on behalf of the Board

M Forbes
Director
30 September 2024
C WALTON LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -

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

Principal activities

The principal activity of the Company is to provide physical operations required by manufacturers, fleets and dealers for the operation of scalable and intelligent retail, in-life and defleet programmes. The Company operates under the Manheim brand, part of the Cox Automotive family of brands and companies.

Results and dividends

The results for the year are set out on page 9.

No ordinary dividends were paid (2022: £nil). The directors do not recommend payment of a final dividend.

Directors

The Directors who held office during the year and up to the date of signature of the financial statements were as follows:

R Carson
(Resigned 1 July 2024)
M Forbes
D Mornin
(Resigned 28 June 2023)
F Sheikh
(Appointed 1 July 2024)
Qualifying third party indemnity provisions

The Company has made qualifying third party indemnity provisions for the benefit of its directors during the year. These provisions remain in force at the reporting date.

Financial instruments
Treasury operations, interest rate, foreign currency and credit risk management

Finance related procedures are subject to overarching Group policies designed to mitigate financial risk to sufficiently acceptable levels. Treasury operations are centrally managed in the Group. Financing is made available from a fellow group company and the Company is party to central management of cash flows across the Group.

 

Daily Group level cash flow forecasting ensures borrowing limits are not exceeded on a pooled basis. The risk of insufficient funds occurring is deemed low given the availability of intercompany borrowing. There is no exchange rates risk as all operations are UK based. Interest rate risk is deemed low as loans are repayable on demand and attract a low margin of interest on an acceptable benchmark rate.

Events after the reporting date

There have been no significant events since the balance sheet date.

Future developments

The Directors intend to continue to identify and implement operational efficiencies, increase volume capacity in an efficient way, improving profitability through cost and price management and ultimately will continue to grow market share and customer base.

Auditor

The auditor, Deloitte LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Energy and carbon report

The SECR disclosures relating to the Company are included within the SECR disclosures presented in the Annual report of Manheim Global Management UK Limited, the parent undertaking of the largest group of undertakings to consolidate these financial statements. The Company has taken advantage of the exemption from the requirement to make SECR disclosures in these financial statements.

C WALTON LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

Going Concern

The Company is a subsidiary in the Manheim Global Management UK Limited Group (‘MGMUK’). The Company is in a net current liabilities position at the year-end and not forecast to generate sufficient cash to cover its liabilities as reported. Therefore, the Company obtained a letter of support from MGMUK confirming the necessary funds will be made available for the Company to meet its liabilities as they fall due for at least 12 months from the date of signing its Annual report and financial statements.

 

MGMUK operates a centralised treasury function and cash pooling for all UK based entities. MGMUK debt facilities currently available are a £10.0m overdraft facility provided by Barclays Bank Plc, repayable on demand. At the date of this report, MGMUK reports net cash of £10.1m and undrawn facilities of £10.0m.

 

The Company shares common Directors with MGMUK, who in their assessment of going concern considered the ability of MGMUK and its subsidiaries to operate on a cash pooled basis with the resources available to it.

 

The Directors have prepared cash flow forecasts for the MGMUK group with the following considerations:

 

 

The Directors consider MGMUK maintains sufficient available cash balances and committed facilities to meet its financial obligations and to provide support as required to the Company in meeting its financial liabilities as they fall due for at least 12 months from the date of signing these financial statements.

 

Accordingly, the Directors have adopted the going concern basis in preparing the Company’s financial statements.

Approved by the Board of Directors and signed on behalf of the Board
M Forbes
Director
30 September 2024
C WALTON LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 5 -

The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

 

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

 

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

 

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

The Directors are responsible for the maintenance and integrity of the company website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

C WALTON LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF C WALTON LIMITED
- 6 -
Opinion

In our opinion the financial statements of C Walton Limited (the ‘company’):

We have audited the financial statements which comprise:

 

The 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).

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor's responsibilities for the audit of the financial statements section of our report.

 

We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the Financial Reporting Council’s (the ‘FRC’s’) Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The directors are 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.

C WALTON LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF C WALTON LIMITED
- 7 -
Responsibilities of directors

As explained more fully in the directors’ responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

 

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

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.

 

A further description of our responsibilities for the audit of the financial statements is located on the FRC’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Extent to which the audit was considered capable of detecting irregularities, including fraud

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

 

We considered the nature of the company’s industry and its control environment, and reviewed the company’s documentation of their policies and procedures relating to fraud and compliance with laws and regulations. We also enquired of management and the directors about their own identification and assessment of the risks of irregularities, including those that are specific to the company’s business sector.

We obtained an understanding of the legal and regulatory framework that the company operates in, and identified the key laws and regulations that:

 

We discussed among the audit engagement team including relevant internal specialists such as tax and IT, regarding the opportunities and incentives that may exist within the organisation for fraud and how and where fraud might occur in the financial statements.

As a result of performing the above, we identified the greatest potential for fraud in the following area, and our procedures performed to address it are described below:

C WALTON LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF C WALTON LIMITED
- 8 -

In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments; assessed whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business.

In addition to the above, our procedures to respond to the risks identified included the following:

Report on other legal and regulatory requirements

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

 

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 any material misstatements in the strategic report or the directors’ report.

Matters on which we are required to report by exception

Under the Companies Act 2006 we are required to report in respect of the following matters if, in our opinion:

 

We have nothing to report in respect of these matters.

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 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Sarah Miller ACA
Senior Statutory Auditor
For and on behalf of Deloitte LLP
Statutory Auditor
London
United Kingdom
30 September 2024
C WALTON LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
2023
2022
Notes
£'000
£'000
Turnover
3
66,445
47,245
Cost of sales
(54,131)
(41,370)
Gross profit
12,314
5,875
Distribution costs
(1,109)
(496)
Administrative expenses
(19,441)
(12,709)
Other operating income
2,477
536
Operating loss
4
(5,759)
(6,794)
Interest receivable and similar income
8
12
51
Interest payable and similar expenses
9
(483)
-
0
Loss before taxation
(6,230)
(6,743)
Tax on loss
10
1,796
150
Loss and total comprehensive expense for the financial year
(4,434)
(6,593)

The statement of comprehensive income has been prepared on the basis that all operations are continuing operations.

C WALTON LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 10 -
2023
2022
Notes
£'000
£'000
£'000
£'000
Fixed assets
Intangible assets
11
641
-
0
Tangible assets
12
8,607
8,827
9,248
8,827
Current assets
Stocks
13
87
61
Debtors falling due after more than one year
14
1,728
-
0
Debtors falling due within one year
14
20,687
19,044
Cash at bank and in hand
7,006
2,151
29,508
21,256
Creditors: amounts falling due within one year
15
(25,736)
(12,561)
Net current assets
3,772
8,695
Total assets less current liabilities
13,020
17,522
Provisions for liabilities
Deferred tax liability
16
10
78
(10)
(78)
Net assets
13,010
17,444
Capital and reserves
Called up share capital
18
10
10
Profit and loss reserves
13,000
17,434
Total shareholders' funds
13,010
17,444

The notes on pages 12 to 25 form part of these financial statements.

The financial statements were approved by the board of directors and authorised for issue on 30 September 2024 and are signed on its behalf by:
M Forbes
Director
Company Registration No. 00559275
C WALTON LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
Share capital
Profit and loss reserves
Total
£'000
£'000
£'000
Balance at 1 January 2022
10
24,027
24,037
Loss and total comprehensive expense
-
(6,593)
(6,593)
Balance at 31 December 2022
10
17,434
17,444
Loss and total comprehensive expense
-
(4,434)
(4,434)
Balance at 31 December 2023
10
13,000
13,010
C WALTON LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
1
Accounting policies
Company information

C Walton Limited is a private company limited by shares incorporated in England and Wales under Companies Act 2006. The registered office is Central House, Leeds Road, Rothwell, Leeds, West Yorkshire, United Kingdom, LS26 0JE.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £'000.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

 

 

The financial statements of the Company are consolidated in the financial statements of Manheim Global Management UK Limited.These consolidated financial statements are available from its registered office, Central House, Leeds Road, Rothwell, Leeds, LS26 0JE.

C WALTON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 13 -
1.2
Going concern

The Company is a subsidiary in the Manheim Global Management UK Limited Group (‘MGMUK’). The Company is in a net current liabilities position at the year-end and not forecast to generate sufficient cash to cover its liabilities as reported. Therefore, the Company obtained a letter of support from MGMUK confirming the necessary funds will be made available for the Company to meet its liabilities as they fall due for at least 12 months from the date of signing its Annual report and financial statements.true

 

MGMUK operates a centralised treasury function and cash pooling for all UK based entities. MGMUK debt facilities currently available are a £10.0m overdraft facility provided by Barclays Bank Plc, repayable on demand. At the date of this report, MGMUK reports net cash of £10.1m and undrawn facilities of £10.0m.

 

The Company shares common Directors with MGMUK, who in their assessment of going concern considered the ability of MGMUK and its subsidiaries to operate on a cash pooled basis with the resources available to it.

 

The Directors have prepared cash flow forecasts for the MGMUK group with the following considerations:

 

 

The Directors consider MGMUK maintains sufficient available cash balances and committed facilities to meet its financial obligations and to provide support as required to the Company in meeting its financial liabilities as they fall due for at least 12 months from the date of signing these financial statements.

 

Accordingly, the Directors have adopted the going concern basis in preparing the Company’s financial statements.

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

Investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalisation.

C WALTON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -
1.4
Intangible fixed assets other than goodwill

Development costs that are directly attributable to the design of software products controlled by the Company are recognized as intangible fixed assets when the following criteria are met:

 

 

Development expenditures that do not meet these criteria are recognized as an expense as incurred.

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Software
On a straight-line basis over 3 years
1.5
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Leasehold land and buildings
10% of cost
Plant and equipment
10% to 33.3% of cost

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.6
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

C WALTON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.7
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.8
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.9
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally 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.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

C WALTON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -
Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.10
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

C WALTON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -
Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.11
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.12
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.13
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The Company has considered areas of judgement and sources of estimation uncertainty that have the most significant effect on the amounts recognised in the financial statements.

Management consider there to be no areas of judgement of sources of estimation uncertainty to the business.

C WALTON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 18 -
3
Turnover and other revenue
2023
2022
£'000
£'000
Turnover analysed by class of business
Vehicle refurbishment services
64,439
46,425
Proving ground sales
86
159
Auction turnover
298
145
Rental turnover
444
82
Other turnover
323
434
Other revenue
855
-
66,445
47,245
2023
2022
£'000
£'000
Turnover analysed by geographical market
United Kingdom
66,445
47,245
2023
2022
£'000
£'000
Other revenue
Interest income
12
51
Insurance proceeds
2,317
-
Profit on disposal of fixed assets
160
-
4
Operating loss
2023
2022
Operating loss for the year is stated after charging:
£'000
£'000
Depreciation of owned tangible fixed assets
2,362
869
Amortisation of intangible assets
114
-
Operating lease charges
5,621
5,444
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£'000
£'000
For audit services
Audit of the financial statements of the company
34
33
For other services
Taxation compliance services
9
15
C WALTON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 19 -
6
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2023
2022
Number
Number
Operations
150
131
Administration
71
69
Sales
19
19
Total
240
219

Their aggregate remuneration comprised:

2023
2022
£'000
£'000
Wages and salaries
17,095
14,347
Social security costs
734
695
Pension costs
467
353
18,296
15,395
C WALTON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
7
Directors' remuneration

None of the directors received any remuneration from the Company in relation to their services to the Company in the current year or the prior year. The remuneration of one of the directors is borne by Manheim Limited and the remuneration of one of the directors is borne by Cox Automotive, Inc. The remuneration of the director who resigned in the year was borne by Manheim Limited. It is not practicable to ascertain the proportion of the directors’ emoluments for these directors that specifically relate to this Company.

8
Interest receivable and similar income
2023
2022
£'000
£'000
Interest income
Interest receivable from group companies
-
0
51
Other interest income
12
-
0
Total income
12
51
9
Interest payable and similar expenses
2023
2022
£'000
£'000
Interest payable to group undertakings
483
-
0
10
Taxation
2023
2022
£'000
£'000
Current tax
Adjustments in respect of prior periods
-
0
(380)
Deferred tax
Origination and reversal of timing differences
(199)
248
Changes in tax rates
(13)
-
0
Adjustment in respect of prior periods
(1,584)
(18)
Total deferred tax
(1,796)
230
Total tax credit
(1,796)
(150)
C WALTON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
10
Taxation
(Continued)
- 21 -

The actual credit for the year can be reconciled to the expected credit for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£'000
£'000
Loss before taxation
(6,230)
(6,743)
Expected tax credit based on the standard rate of corporation tax in the UK of 23.50% (2022: 19.00%)
(1,464)
(1,281)
Tax effect of expenses that are not deductible in determining taxable profit
11
1
Unutilised tax losses carried forward
126
-
0
Adjustments in respect of prior years
(1,584)
(398)
Effect of change in corporation tax rate
-
0
60
Group relief
1,128
1,489
Permanent capital allowances in excess of depreciation
-
0
(21)
Rate difference on deferred tax
(13)
-
0
Taxation credit for the year
(1,796)
(150)

The Company has no unprovided deferred tax (2022: £nil).

 

Factors affecting tax charge in future years

Finance Act 2020, which was substantively enacted on 24 May 2021, included an increase in the main rate of UK Corporation tax from 19% to 25% from 1 April 2023. A blended rate had been applied to any brought forward balances where is was known that the associated temporary difference was going to reverse prior to 1 April 2023. All deferred tax balances as at 31 December 2023 have been calculated at 25%.

Pillar Two legislation has been enacted or substantively enacted in certain jurisdictions the Company’s Ultimate Parent Entity (“UPE”), Cox Enterprises, operates, including the UK. The legislation will be effective for the UPE’s financial year beginning 1 January 2024. The UPE is in scope of the enacted or substantively enacted legislation and is in the process of assessing the potential exposure arising from Pillar Two legislation as at 31 December 2023.

 

The UPE will disclose known or reasonably estimable information that helps users of financial statements to understand its exposure to Pillar Two corporation taxes in the UPE’s annual consolidated financial statements in which the Pillar Two legislation has been enacted or substantially enacted and will disclose separately corporation tax expense/credit related to Pillar Two corporation taxes when it is in effect.

C WALTON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
11
Intangible fixed assets
Software
£'000
Cost
At 1 January 2023
-
0
Additions
755
At 31 December 2023
755
Amortisation and impairment
At 1 January 2023
-
0
Amortisation charged for the year
114
At 31 December 2023
114
Carrying amount
At 31 December 2023
641
At 31 December 2022
-
0
12
Tangible fixed assets
Leasehold land and buildings
Plant and equipment
Total
£'000
£'000
£'000
Cost
At 1 January 2023
5,974
7,191
13,165
Additions
590
1,556
2,146
Disposals
-
0
(1,747)
(1,747)
At 31 December 2023
6,564
7,000
13,564
Depreciation and impairment
At 1 January 2023
330
4,008
4,338
Depreciation charged in the year
645
1,717
2,362
Eliminated in respect of disposals
-
0
(1,743)
(1,743)
At 31 December 2023
975
3,982
4,957
Carrying amount
At 31 December 2023
5,589
3,018
8,607
At 31 December 2022
5,644
3,183
8,827
13
Stocks
2023
2022
£'000
£'000
Finished goods and goods for resale
87
61
C WALTON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
13
Stocks
(Continued)
- 23 -

There is no material difference between the balance sheet value of stocks and their replacement cost.

14
Debtors
2023
2022
Amounts falling due within one year:
£'000
£'000
Trade debtors
11,039
11,364
Corporation tax recoverable
-
0
461
Other debtors
661
506
Prepayments
1,789
1,271
Accrued income
7,198
5,442
20,687
19,044
2023
2022
Amounts falling due after more than one year:
£'000
£'000
Deferred tax asset (note 16)
1,728
-
0
Total debtors
22,415
19,044

Due to the short-term nature of the financial assets included in this note they are held at undiscounted cost, are repayable on demand and are unsecured. The financial assets include trade debtors.

Interest is not charged on any of the financial assets.

15
Creditors: amounts falling due within one year
2023
2022
£'000
£'000
Trade creditors
1,161
1,317
Amounts owed to group undertakings
21,083
8,804
Corporation tax
320
-
0
Accruals
3,172
2,440
25,736
12,561

Due to the short-term nature of the financial liabilities included in this note they are held at undiscounted cost, are repayable on demand and are unsecured.

The group undertaking is Manheim Limited. Interest is charged on amounts owed to group undertaking at a rate of LIBOR + 2.5%.

 

C WALTON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 24 -
16
Deferred taxation

The following are the deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
Assets
Assets
2023
2022
2023
2022
Balances:
£'000
£'000
£'000
£'000
Accelerated capital allowances
10
436
-
-
Tax losses
-
(358)
1,728
-
10
78
1,728
-
2023
Movements in the year:
£'000
Liability at 1 January 2023
78
Credit to profit or loss
(1,796)
Asset at 31 December 2023
(1,718)

The deferred tax asset set out above is expected to reverse in more than 12 months and relates to the utilisation of tax losses against future expected profits of the same period. The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances.

17
Retirement benefit schemes
2023
2022
Defined contribution schemes
£'000
£'000
Charge to profit or loss in respect of defined contribution schemes
467
353

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

18
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£'000
£'000
Issued and fully paid
Ordinary A Shares of 1 each
10,000
10,000
10
10

The Company’s reserves are as follows:

The profit and loss reserve represents cumulative profits or losses, net of dividends.

C WALTON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 25 -
19
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2023
2022
£'000
£'000
Within one year
5,582
5,598
Between two and five years
22,210
24,152
In over five years
120,027
124,308
147,819
154,058
20
Ultimate controlling party

The Company’s ultimate parent company and ultimate controlling party is Cox Enterprises, Inc. The registered office of Cox Enterprises, Inc. is at 251 Little Falls Drive, Wilmington, Delaware 19808, United States of America. The parent undertaking of the largest Company, which includes the Company and for which group financial statements are prepared is Cox Enterprises, Inc. The financial statements of Cox Enterprises, Inc. are not publicly available.

The immediate parent company is BIAS 2020 Limited. The registered office of BIAS 2020 Limited is Central House, Leeds Road, Rothwell, Leeds, LS26 0JE. The parent undertaking of the smallest Company, which includes the Company and for which group financial statements are prepared, is Manheim Global Management UK Limited. Copies of the financial statements of Manheim Global Management UK Limited can be obtained from Companies House, Crown Way, Cardiff CF14 3UZ, United Kingdom.

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