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STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 29 FEBRUARY 2024

FOR

KEITH MOTORS (CHRISTCHURCH) LIMITED

KEITH MOTORS (CHRISTCHURCH) LIMITED (REGISTERED NUMBER: 00791927)






CONTENTS OF THE FINANCIAL STATEMENTS
For The Year Ended 29 February 2024




Page

Company Information 1

Strategic Report 2

Report of the Directors 4

Report of the Independent Auditors 5

Income Statement 7

Other Comprehensive Income 8

Balance Sheet 9

Statement of Changes in Equity 10

Notes to the Financial Statements 11


KEITH MOTORS (CHRISTCHURCH) LIMITED

COMPANY INFORMATION
For The Year Ended 29 February 2024







DIRECTORS: R E Keith
J M Keith
B M Keith
R C Keith
S M Keith
J S O'Connell
T M O'Connell





REGISTERED OFFICE: Keith Motors (Christchurch) Limited
Lyndhurst Rd
Christchurch
Dorset
BH23 4SB





REGISTERED NUMBER: 00791927 (England and Wales)





AUDITORS: Schofields
Chartered Accountants
5th Floor
Waverley House
115-119 Holdenhurst Road
Bournemouth
Dorset
BH8 8DY

KEITH MOTORS (CHRISTCHURCH) LIMITED (REGISTERED NUMBER: 00791927)

STRATEGIC REPORT
For The Year Ended 29 February 2024

The directors present their strategic report for the year ended 29 February 2024.

REVIEW OF BUSINESS
The company's main activities continue to be the provision of new and used vehicles, parts and servicing. Turnover from continuing activities for the year ended 29 February 2024 was £39,233,956 (2023 - £35,472,309). Profit before tax was £385,143 (2023 - £643,455). The key financial highlights are shown as follows:

2024 2023 2022 2021
£'000 £'000 £'000 £'000
Vehicle sales 35,380 32,278 30,278 22,696
After sales and other income 3,854 3,194 3,174 2,730
Total sales 39,234 35,472 33,452 25,426
Gross profit 2,644 2,826 2,815 1,429
Net profit before tax 385 643 754 438

% % % %
Turnover growth 10.60 6.04 31.57 (22.87)
Gross profit margin 6.74 7.97 8.41 5.62
Net profit margin 0.98 1.81 2.25 1.72

This proved to be a challenging year for both new and used car sales, caused by issues with new car stock availability and a drop off in used car values in the second half of the year. Despite these challenges, the company posted record sales figures albeit at reduced profit margins. Our aftersales departments have performed , admirably, compensating for the difficulties faced in vehicle sales operations.

The company remains high in customer satisfaction scores, attained passes in 'Mystery Shop' exercises and achieved several of the Ford incentive programs. Management continue to invest in staff training, health and wellbeing to ensure the company meets customer expectations.

In the face of high level inflation and increased costs, management continue to control these costs efficiently and review all key performance indicators and ratios. This ensures that the company adapts accordingly and manages working capital effectively, enabling the company to overcome challenges within the industry and the economy as a whole.

In light of the challenges faced within the industry, the board are pleased with company's performance and, with a recovering market, are optimistic for the year ahead.

PRINCIPAL RISKS AND UNCERTAINTIES
The board closely monitors and identifies mitigating actions to limit the exposure of material risks and uncertainties that are fundamental to the operation of the company. Principal risks have been identified as follows:

Economic risk
The board continually monitors economic risk whereby negative economic conditions may affect the company's operations. This risk is carefully considered when factoring in the current economy with high inflation and a rise in costs generally.

The company also operates a defined benefit pension scheme. Assumptions adopted in its valuation, including RPI/CPI inflation and discount rates, are largely impacted by economic conditions.

The impact of changing economic conditions is carefully managed through close engagement with Ford and the Trustees of the defined benefit pension scheme, along with strong working capital management.

Operational risk
The board recognise the continued importance of a strong relationship and the supply of new vehicles from our franchisor. We further recognise the motor retail market in which the company operates is highly competitive.

The company is committed to providing the highest levels of customer service and provide regular staff training in order to continually meet these standards. Our dedication to this has resulted in a number of awards in recent years, including the Ford Chairman's award for excellent customer service.

We further mitigate operational risk through focusing on our other core business areas including used vehicle sales, parts and service sales.


KEITH MOTORS (CHRISTCHURCH) LIMITED (REGISTERED NUMBER: 00791927)

STRATEGIC REPORT
For The Year Ended 29 February 2024

PRINCIPAL RISKS AND UNCERTAINTIES (CONTINUED)
Financial risk
The company's operations expose it to a variety of financial risks that include the effects of credit risk and interest rate fluctuations on company loans.

Credit risk is limited to after sales invoices raised to trade customers whereby bad debts will detrimentally affect the cash flow and ultimate profitability of the company. Credit risk is mitigated through determining the credit worthiness of each customer and setting appropriate credit limits.

Fluctuating interest rates can potentially give the company uncertainty over the amount of debt servicing cash payments. Vehicle stocking loans are funded through a Ford credit facility. Exposure to the rise in short-term interest rates is reduced through prompt repayment of credit provided.

ON BEHALF OF THE BOARD:





R E Keith - Director


17 October 2024

KEITH MOTORS (CHRISTCHURCH) LIMITED (REGISTERED NUMBER: 00791927)

REPORT OF THE DIRECTORS
For The Year Ended 29 February 2024

The directors present their report with the financial statements of the company for the year ended 29 February 2024.

DIVIDENDS
The total distribution of dividends for the year ended 29 February 2024 will be £200,000.

FUTURE DEVELOPMENTS
Despite the uncertain economic outlook over the foreseeable future, the board are confident that the company's policies and strategies in place will ensure that it can positively adapt and embrace the forthcoming challenges and changes in the industry.


EVENTS SINCE END OF THE YEAR
There have been no subsequent events after the balance sheet date that have a material effect on the financial statements.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 March 2023 to the date of this report.

R E Keith
J M Keith
B M Keith
R C Keith
S M Keith
J S O'Connell
T M O'Connell

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors 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). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-select suitable accounting policies and then apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and 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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS
The auditors, Schofields, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





R E Keith - Director


17 October 2024

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
KEITH MOTORS (CHRISTCHURCH) LIMITED

Opinion
We have audited the financial statements of Keith Motors (Christchurch) Limited (the 'company') for the year ended 29 February 2024 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of significant accounting policies. 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).

In our opinion the financial statements:
-give a true and fair view of the state of the company's affairs as at 29 February 2024 and of its profit for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including 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 directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

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.

In connection with our audit of the financial statements, 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 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.

Opinions 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 Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors 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 Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page four, 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 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.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
KEITH MOTORS (CHRISTCHURCH) LIMITED


Auditors' responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

An understanding of the legal and regulatory framework the company operates in was obtained through discussions with directors and other management in addition to our general industry and sector experience. The most significant laws and regulations identified, being those that have a direct effect on material amounts and disclosures in the financial statements, are FRS 102, Companies Act 2006 and HM Revenue & Customs (HMRC) Tax Legislation.

We also considered other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company's ability to operate, or to avoid material penalty. These included the requirements of the various health and safety regulations, employment law and money laundering.

Audit procedures were performed to obtain sufficient evidence regarding compliance. These procedures include making enquiries to directors and other management in addition to the inspection of applicable regulatory and legal correspondence. Financial statement disclosures were reviewed and tested to supporting documentation.

Enquiries were also made to the directors and other management to assess the company's internal control environment and their policies and procedures on fraud risk. The company's systems and controls were documented, and audit procedures were designed to test these controls. Further, the risk of management override of controls was addressed through testing journal entries and other adjustments for appropriateness. The judgements made in making accounting estimates were assessed for any indication of potential bias, and the business rationale of significant transactions outside the normal course of the business was evaluated.

We have properly planned and performed the audit in accordance with auditing standards and all members of the engagement team have the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations. However, the inherent nature of the audit, and the limited procedures performed, means there is an unavoidable risk that some irregularities may have gone undetected. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

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 Report of the Auditors.

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 a Report of the Auditors 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.




Mr D Leatham FCA FCCA (Senior Statutory Auditor)
for and on behalf of Schofields
Chartered Accountants
5th Floor
Waverley House
115-119 Holdenhurst Road
Bournemouth
Dorset
BH8 8DY

17 October 2024

KEITH MOTORS (CHRISTCHURCH) LIMITED (REGISTERED NUMBER: 00791927)

INCOME STATEMENT
For The Year Ended 29 February 2024

2024 2023
Notes £    £   

TURNOVER 3 39,233,956 35,472,309

Cost of sales (36,590,081 ) (32,646,257 )
GROSS PROFIT 2,643,875 2,826,052

Administrative expenses (2,278,732 ) (2,189,597 )
365,143 636,455

Other operating income 4 20,000 20,000
OPERATING PROFIT 6 385,143 656,455


Other finance costs 19 - (13,000 )
PROFIT BEFORE TAXATION 385,143 643,455

Tax on profit 7 (81,165 ) (114,240 )
PROFIT FOR THE FINANCIAL YEAR 303,978 529,215

KEITH MOTORS (CHRISTCHURCH) LIMITED (REGISTERED NUMBER: 00791927)

OTHER COMPREHENSIVE INCOME
For The Year Ended 29 February 2024

2024 2023
Notes £    £   

PROFIT FOR THE YEAR 303,978 529,215


OTHER COMPREHENSIVE (LOSS)/INCOME
Remeasurement gain/(loss) on defined
benefit pension plan (59,750 ) 349,650
Deferred tax (cost)/benefit on
actuarial gains - (79,857 )
Income tax relating to components of other
comprehensive (loss)/income

-

-
OTHER COMPREHENSIVE (LOSS)/INCOME
FOR THE YEAR, NET OF INCOME TAX

(59,750

)

269,793
TOTAL COMPREHENSIVE INCOME FOR THE
YEAR

244,228

799,008

KEITH MOTORS (CHRISTCHURCH) LIMITED (REGISTERED NUMBER: 00791927)

BALANCE SHEET
29 February 2024

2024 2023
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 9 - -
Tangible assets 10 249,302 170,916
249,302 170,916

CURRENT ASSETS
Stocks 11 4,716,869 4,672,254
Debtors 12 187,856 248,035
Cash at bank and in hand 445,655 414,135
5,350,380 5,334,424
CREDITORS
Amounts falling due within one year 13 5,020,112 4,967,624
NET CURRENT ASSETS 330,268 366,800
TOTAL ASSETS LESS CURRENT LIABILITIES 579,570 537,716

PROVISIONS FOR LIABILITIES 16 27,227 29,601
NET ASSETS 552,343 508,115

CAPITAL AND RESERVES
Called up share capital 17 35,332 35,332
Share premium 18 41,590 41,590
Capital redemption reserve 18 700 700
Retained earnings 18 474,721 430,493
SHAREHOLDERS' FUNDS 552,343 508,115

The financial statements were approved by the Board of Directors and authorised for issue on 17 October 2024 and were signed on its behalf by:




R E Keith - Director



B M Keith - Director


KEITH MOTORS (CHRISTCHURCH) LIMITED (REGISTERED NUMBER: 00791927)

STATEMENT OF CHANGES IN EQUITY
For The Year Ended 29 February 2024

Called up Capital
share Retained Share redemption Total
capital earnings premium reserve equity
£    £    £    £    £   
Balance at 1 March 2022 35,332 231,485 41,590 700 309,107

Changes in equity
Dividends - (600,000 ) - - (600,000 )
Total comprehensive income - 799,008 - - 799,008
Balance at 28 February 2023 35,332 430,493 41,590 700 508,115

Changes in equity
Dividends - (200,000 ) - - (200,000 )
Total comprehensive income - 244,228 - - 244,228
Balance at 29 February 2024 35,332 474,721 41,590 700 552,343

KEITH MOTORS (CHRISTCHURCH) LIMITED (REGISTERED NUMBER: 00791927)

NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 29 February 2024

1. STATUTORY INFORMATION

Keith Motors (Christchurch) Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2. ACCOUNTING POLICIES

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

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 FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

the requirements of Section 7 Statement of Cash Flows;
the requirement of paragraph 3.17(d);
the requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
the requirements of paragraphs 12.26, 12.27, 12.29(a), 12.29(b) and 12.29A.

The information is included in the consolidated financial statements of Birchclaim Limited as at 28 February 2023 and these financial statements may be obtained from the registered office of the company.

Significant judgements and estimates
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenue and expenses during the year. However the nature of estimation means the actual outcomes could differ from those involving estimates. The company constantly re-evaluates these significant factors and makes adjustments where facts and circumstances dictate.

The directors have made the following judgements and estimates deemed applicable to the financial statements:

Pensions
The company operates a defined benefit pension scheme in the UK. This is a separate trustee administered fund holding the pension scheme assets to meet the long term pension liabilities, which requires estimates of the present value of projected future payments to all participants. The assumptions adopted for disclosure are appropriate to meet the requirements of Section 28 of FRS102. The assumptions have been set consistently with previous years, using the same market indices and adjustments unless there is a major plan event change. The assumptions include mortality projections, retirement rates, RPI and CPI inflation, discount rates and expected contributions which are all disclosed in the financial statements.

Stock
In determining the net realisable value of stocks, management take into account the most reliable evidence available at the dates estimates are made. Future realisation of the carrying amounts of stocks is affected by price changes in different market segments.The directors have used guidance from valuation tools and their knowledge of the industry when assessing the level of provisions required.

Turnover
Turnover represents amounts invoiced for goods and services net of VAT. Sale of motor vehicles are recognised on the earlier of full payment or delivery to the customer. Service and parts work are recognised on the completion of the agreed work.

Intangible assets
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Long leasehold - 15% on cost
Plant and machinery - at varying rates on cost
Motor vehicles - 33% on cost

KEITH MOTORS (CHRISTCHURCH) LIMITED (REGISTERED NUMBER: 00791927)

NOTES TO THE FINANCIAL STATEMENTS - continued
For The Year Ended 29 February 2024

2. ACCOUNTING POLICIES - continued

Stocks
Stocks are stated at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. Cost includes all expenditure incurred in bringing each item to its present location and condition. Stock provisions are made by management based on age and condition of stock and related costs using industry valuation tools and their knowledge of the business.

Raw material parts stock are valued at average cost, with work in progress and finished goods being valued at their direct cost.

Consignment stock is recognised in the balance sheet when the company bears the risk and responsibilities of ownership following shipment from the manufacturer holding centre.

Financial instruments
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account.

Loans and borrowings are initially recognised at the transaction price including transaction costs. Subsequently, they are measured as amortised cost using the effective interest rate method, less impairment.

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

Current or deferred taxation assets and liabilities are not discounted.

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

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

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

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

Retirement benefits
The company operates both a defined contribution pension scheme and a defined benefit pension scheme.

Pension contributions for the defined contribution plan are charged against profits as they fall due.

A liability for the company's obligations under the defined benefit plan is recognised net of plan assets. A plan surplus is recognised only to the extent that it is able to recover the surplus either through reduced contributions in the future or through refunds from the plan. The change in the net defined benefit liability is recognised as the cost of the defined benefit plan during the period. Pension plan assets are measured at fair value and the defined benefit obligation is measured on an actuarial basis.

3. TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by class of business is given below:

2024 2023
£    £   
Vehicle sales 35,379,651 32,277,642
After sales and other income 3,854,305 3,194,667
39,233,956 35,472,309

All turnover arose within the United Kingdom.

KEITH MOTORS (CHRISTCHURCH) LIMITED (REGISTERED NUMBER: 00791927)

NOTES TO THE FINANCIAL STATEMENTS - continued
For The Year Ended 29 February 2024

4. OTHER OPERATING INCOME
2024 2023
£    £   
Management charges 20,000 20,000

5. EMPLOYEES AND DIRECTORS
2024 2023
£    £   
Wages and salaries 2,321,624 2,242,540
Social security costs 289,488 326,531
2,611,112 2,569,071

The average number of employees during the year was as follows:
2024 2023

Workshop 9 40
Sales 22 22
Administration 41 9
72 71

Social security costs include pension contributions of £38,288 (2023 - £36,109).

2024 2023
£    £   
Directors' remuneration 431,624 399,623

The number of directors to whom retirement benefits were accruing was as follows:

Defined benefit schemes 3 3

Information regarding the highest paid director is as follows:
2024 2023
£    £   
Emoluments etc 105,014 95,473

6. OPERATING PROFIT

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

2024 2023
£    £   
Depreciation - owned assets 54,944 45,536
Profit on disposal of fixed assets (8,172 ) (822 )
Auditors' remuneration 18,000 17,200
Other operating lease rentals 56,403 55,200

KEITH MOTORS (CHRISTCHURCH) LIMITED (REGISTERED NUMBER: 00791927)

NOTES TO THE FINANCIAL STATEMENTS - continued
For The Year Ended 29 February 2024

7. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:

20242023
£   £   
Current tax:
UK corporation tax83,539111,216

Deferred tax(2,374)3,024
Tax on profit81.165114,240

UK corporation tax has been charged at 24.492%.

Reconciliation of total tax charged included in profit and loss
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

20242023
£   £   
Profit before tax385,143643,455

Profit multiplied by the standard rate of corporation tax in the UK of 24.492% (2023 -
19%)

94,329

122,256
Effects of:
Expenses not deductible for tax purposes3753,552
Depreciation in excess of capital allowances1,145-
Capital allowances in excess of depreciation-(2,778)
Allowable pension contributions(14,634)(15,894)
Deferred tax rate differential(50)7,104
Total tax charge81,165114,240

In addition to the amount recognised in the income statement, the following amounts relating to tax have been recognised in the statement of other comprehensive income:

Deferred Tax
20242023
£   £   
Arising on income and expenses recognised in other comprehensive income:

Deferred tax (cost)/benefit arising on actuarial gains/losses -(79,857)
Total recognised in other comprehensive income -(79,857)

8. DIVIDENDS
2024 2023
£    £   
Ordinary 'A' shares of £1 each
Interim 200,000 600,000

KEITH MOTORS (CHRISTCHURCH) LIMITED (REGISTERED NUMBER: 00791927)

NOTES TO THE FINANCIAL STATEMENTS - continued
For The Year Ended 29 February 2024

9. INTANGIBLE FIXED ASSETS
Goodwill
£   
COST
At 1 March 2023
and 29 February 2024 10,000
AMORTISATION
At 1 March 2023
and 29 February 2024 10,000
NET BOOK VALUE
At 29 February 2024 -
At 28 February 2023 -

10. TANGIBLE FIXED ASSETS
Long Plant and Motor
leasehold machinery vehicles Totals
£    £    £    £   
COST
At 1 March 2023 20,346 777,840 66,741 864,927
Additions - 40,055 99,262 139,317
Disposals - - (31,795 ) (31,795 )
At 29 February 2024 20,346 817,895 134,208 972,449
DEPRECIATION
At 1 March 2023 20,345 628,494 45,172 694,011
Charge for year - 31,562 23,382 54,944
Eliminated on disposal - - (25,808 ) (25,808 )
At 29 February 2024 20,345 660,056 42,746 723,147
NET BOOK VALUE
At 29 February 2024 1 157,839 91,462 249,302
At 28 February 2023 1 149,346 21,569 170,916

11. STOCKS
2024 2023
£    £   
Raw materials 154,549 121,526
Work-in-progress 20,474 31,218
Finished goods 4,541,846 4,519,510
4,716,869 4,672,254

12. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Trade debtors 135,617 129,090
Prepayments 52,239 118,945
187,856 248,035

KEITH MOTORS (CHRISTCHURCH) LIMITED (REGISTERED NUMBER: 00791927)

NOTES TO THE FINANCIAL STATEMENTS - continued
For The Year Ended 29 February 2024

13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Vehicle stocking loans 1,875,037 1,899,102
Trade creditors 451,697 380,530
Amounts owed to group undertakings 1,747,516 1,690,923
Corporation tax 83,539 111,217
Social security and other taxes 303,996 216,390
Other creditors 222,326 256,110
Accruals and deferred income 336,001 413,352
5,020,112 4,967,624

14. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
2024 2023
£    £   
Within one year 58,079 51,733
Between one and five years 167,025 191,667
225,104 243,400

15. SECURED DEBTS

Vehicle stocking loans amounting to £1,875,037 (2023 - £1,899,102) relate to new vehicles that the company bears the risk and rewards of ownership. The vehicle stocking loans hold security over all new and used vehicle stock.

The bank overdraft facility is secured by way of a debenture and a fixed and floating charge over all of the company's assets.

16. PROVISIONS FOR LIABILITIES
2024 2023
£    £   
Deferred tax 27,227 29,601

Deferred
tax
£   
Balance at 1 March 2023 29,601
Credit to Income Statement during year (2,374 )
Balance at 29 February 2024 27,227

Deferred tax represents capital allowances in advance of depreciation.

17. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2024 2023
value: £    £   
35,332 Ordinary 'A' £1 35,332 35,332

KEITH MOTORS (CHRISTCHURCH) LIMITED (REGISTERED NUMBER: 00791927)

NOTES TO THE FINANCIAL STATEMENTS - continued
For The Year Ended 29 February 2024

18. RESERVES
Capital
Retained Share redemption
earnings premium reserve Totals
£    £    £    £   

At 1 March 2023 430,493 41,590 700 472,783
Profit for the year 303,978 303,978
Dividends (200,000 ) (200,000 )
Actuarial gain/ (loss) (59,750 ) - - (59,750 )
At 29 February 2024 474,721 41,590 700 517,011

Retained earnings represents cumulative profits and losses net of dividends and other adjustments.

The share premium reserve records the amount above the nominal value received for shares sold, less transaction costs.

The capital redemption reserve records the nominal value of shares repurchased by the company.

19. EMPLOYEE BENEFIT OBLIGATIONS

The company operates a defined benefit plan in the UK. The scheme is administered by an independent trustee. The company funds the scheme by paying in contributions that are calculated at a level intended to balance the pensions liability with investment assets. The contribution rates are set at the time of the full formal actuarial valuation. This valuation was last performed as at 5 April 2022 with an update carried out at 29 February 2024 for FRS 102 reporting purposes by a qualified actuary. The assumptions used at 29 February 2024 are outlined further in the note. The current contribution rate is set at £71,700 per annum, with administration expenses generally met by the company and charged directly to the profit and loss as a business expense.

The amounts recognised in profit or loss are as follows:

Defined benefit
pension plans
2024 2023
£    £   
Current service cost - -
Net interest from net defined benefit asset/liability - 11,000
Past service cost - -
Administrative expenses - 2,000
- 13,000

Actual return on plan assets 137,000 (325,300 )

Changes in the present value of the defined benefit obligation are as follows:

Defined benefit
pension plans
2024 2023
£    £   
Opening defined benefit obligation 2,801,000 4,180,000
Interest cost 137,000 107,000
Admin expenses - 2,000
Net benefit outgoings (113,000 ) (104,000 )
Remeasurements:
Actuarial (gains)/losses from changes in
demographic assumptions

(93,000

)

(1,438,000

)
Experience gains and losses arising on plan
liabilities

-

54,000
2,732,000 2,801,000

KEITH MOTORS (CHRISTCHURCH) LIMITED (REGISTERED NUMBER: 00791927)

NOTES TO THE FINANCIAL STATEMENTS - continued
For The Year Ended 29 February 2024

19. EMPLOYEE BENEFIT OBLIGATIONS - continued

Changes in the fair value of scheme assets are as follows:

Defined benefit
pension plans
2024 2023
£    £   
Opening fair value of scheme assets 2,801,000 3,759,700
Contributions by employer 59,750 83,650
Interest income 137,000 96,000
Benefits paid (113,000 ) (104,000 )
Effect of asset ceiling (269,750 ) (306,700 )
Return on plan assets (excluding interest income) 117,000 (727,650 )
2,732,000 2,801,000

The amounts recognised in other comprehensive income are as follows:

Defined benefit
pension plans
2024 2023
£    £   
Actuarial (gains)/losses from changes in
demographic assumptions

93,000

1,438,000
Experience gains and losses arising on plan
liabilities

-

(54,000

)
Return on plan assets (excluding interest income) 117,000 (727,650 )
Effect of asset ceiling - (306,700 )
210,000 349,650

The major categories of scheme assets as a percentage of total scheme assets are as follows:

Defined benefit
pension plans
2024 2023
Gilts, Bonds and Cash 100% 100%
100.00% 100.00%

Principal actuarial assumptions at the balance sheet date (expressed as weighted averages):

2024 2023
Discount rate 5.20% 5.00%
Inflation (RPI) 3.20% 3.20%
Inflation (CPI) 2.70% 2.70%
5% per annum CPI 2.70% 2.70%
5% per annum RPI 3.00% 3.00%
3% per annum RPI 2.30% 2.30%
2.5% per annum RPI 2.00% 2.00%

The mortality assumptions adopted at 28 February 2024 imply the following life expectancies:

Life expectancy at age 65(Years)
Male retiring in 202421.8
Female retiring in 202423.0
Male retiring in 204423.9
Female retiring in 204425.4

The best estimate of contributions to be paid by the company to the plan for the period commencing 1 March 2024 is £71,700.

KEITH MOTORS (CHRISTCHURCH) LIMITED (REGISTERED NUMBER: 00791927)

NOTES TO THE FINANCIAL STATEMENTS - continued
For The Year Ended 29 February 2024

19. - continued

Defined contribution scheme

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. The amount recognised as an expense in the period for the defined contribution pension plan was £38,288 (2023 - £36,109).

20. ULTIMATE PARENT COMPANY

Birchclaim Limited is both the company's ultimate parent company and the parent undertaking of the group for which consolidated financial statements are prepared. These financial statements, along with registered office details, are available at Companies House.

21. CONTINGENT LIABILITIES

The company has provided a cross guarantee in respect of bank loans held in the parent company Birchclaim Limited. As at 29 February 2024 the outstanding bank loan balances in Birchclaim Limited amounted to £625,424 (2023 - £682,191).

The parent company has provided a cross guarantee with Barclays Bank in respect of the overdraft in the company.

22. RELATED PARTY DISCLOSURES

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

During the year, a total of key management personnel compensation of £ 973,436 (2023 - £ 759,536 ) was paid.

23. ULTIMATE CONTROLLING PARTY

There is no ultimate controlling party in the parent company.