Company registration number 10434556 (England and Wales)
ZAMAX ENTERPRISES LIMITED
ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024
ZAMAX ENTERPRISES LIMITED
COMPANY INFORMATION
Director
M G Leighton
Company number
10434556
Registered office
Unit 1
Dodds Close
Rotherham
South Yorkshire
S60 1BX
Auditor
Cooper Parry Group Limited
St James Building
79 Oxford Street
Manchester
M1 6HT
ZAMAX ENTERPRISES LIMITED
CONTENTS
Page
Strategic report
1 - 2
Director's report
3 - 4
Independent auditor's report
5 - 7
Group statement of comprehensive income
8
Group balance sheet
9
Company balance sheet
10
Group statement of changes in equity
11
Company statement of changes in equity
12
Group statement of cash flows
13
Notes to the financial statements
14 - 30
ZAMAX ENTERPRISES LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 JANUARY 2024
- 1 -

The director presents the strategic report for the year ended 31 January 2024.

Review of the business

The year ended January 2024 saw the economic environment continue to provide challenging conditions for businesses and consumers. Whilst inflation fell from the high of 10.4% at the start of our reporting period to 3.2% at close, the business has seen continued and sustained pressure from all suppliers to increase costs, which consequently have impacted on margins. In addition the Bank of England’s decision to increase base rate to 5.25% has led to higher costs in the business, where possible management have mitigated this increase by challenging lending margins and moving to cheaper facilities. Both these factors have impacted on customers both in terms of available funds to spend, confidence and the cost of obtaining credit, ensuring the retail environment continues to be challenging.

In the context of the economic factors the management are pleased to report an increase in turnover to £25.0M. This growth was driven across all income channels, new vehicles, used vehicles, parts sales and upgrade sales.

As the supply of new vehicles started to increase, we saw an increase in revenue from those sales as turnover increased from £3M in prior year to £11M in this period, however as volume increased vehicle margin reduced. As expected, used vehicles fell back from turnover of £11M in the prior year to a still healthy £7M in this period, but in common with new vehicles margins fell. In both cases the reduced margins were due to an increase in supply in the market, reduced customer confidence.

The parts element of our business had another strong year with revenue growing 16% to £5.7M for the full year. As new vehicles came back into the market this helped with that increase but in addition pro-active marketing, competitive pricing and a constantly improving offering also drove the increase. Due to all the known factors margins were impacted in the business, the only positive being the sharp reduction in container costs. The year also extensive development work in new product ensuring that as new vehicles come to market the business will have a highly competitive range of products guaranteeing the future of the business.

After what has been a challenging year the management are pleased with the progress of the business, growing not only revenue, but customers, product and infrastructure leaving the business well placed for the coming year.

Principal risks and uncertainties

The management of the business and the nature of the group's strategy are subject to a number of risks. The directors have set out below the principal risks facing the business.

 

Manufacturers supply of new and improved products

The group is reliant on new vehicle products from its manufacturer partner. This exposes the group to risks in a number of areas as the group is dependent on its manufacturer / supplier in respect of:

 

 

The directors are confident that future new products from its manufacturer / supplier will continue to be competitively priced and high quality and therefore consider that this "manufacturer risk" is minimal. It is, in any case, mitigated by the other core business areas of the group, including used vehicle sales, parts sales and service work.

 

Used vehicle price variation

Used vehicle prices can decline significantly. As a significant proportion of the business comprises used vehicle sales, these declines can have a material impact on the business. The impact of declines in used vehicle prices can result in reduced profits on sales and also write-downs in the value of used vehicle stock.

 

Competition

The group competes with other franchised vehicle dealerships, independent used vehicle sellers, private buyers and sellers, internet-based dealers, independent service and repair shops and vehicle manufacturers who have entered the retail market. The group competes for the sale of new and used vehicles, the performance of warranty repairs, non-warranty repairs, routine maintenance business and for the provision of spare parts. The principal competitive factors in service and parts sales are price, familiarity with a manufacturer's brands and models and the quality of customer service.

ZAMAX ENTERPRISES LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 2 -

Group, people and reputation

The group has invested heavily in its people and its reputation over a number of years. It is therefore reliant on these individuals to a degree in delivering the group result and reinforcing the underlying group brand. The group undertakes a regular review of remuneration and packages to ensure that it attracts and retains the best people.

Economic Downturn

The success of the business is reliant on consumer spending. An economic downturn, resulting in the reduction of consumer spending power will have a direct impact on the income achieved by the group. In response to this risk senior management aim to keep abreast of economic conditions. In cases of severe economic downturn marketing and pricing strategies are modified to reflect the new market conditions.

On behalf of the board

M G Leighton
Director
31 October 2024
ZAMAX ENTERPRISES LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 JANUARY 2024
- 3 -

The director presents his annual report and financial statements for the year ended 31 January 2024.

Principal activities

The principal activity of the company and group continued to be that of purchasing, selling and repairing motor vehicles and other ancillary services, together with the contract hire and leasing of motor vehicles and the rental of the investment properties.

Results and dividends

The results for the year are set out on page 8.

Ordinary dividends were paid amounting to £405,400. The director does not recommend payment of a further dividend.

Director

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

M G Leighton
Financial instruments

The group uses various financial instruments which include bank, financial institution and stock loans, cash and various items such as trade debtors and trade creditors that arise directly from operations. The main purpose of these financial instruments is to raise finance for the group’s operations. Their existence exposes the group to a number of financial risks.

 

The main risks arising from the group’s financial instruments are liquidity risk, interest rate risk and credit risk. The directors review and agree policies for managing each of these risks which are summarised below.

Liquidity risk

The group seeks to manage risk by ensuring sufficient liquidity is available to meet foreseeable needs to invest cash assets safely and profitably.

 

The group's policy throughout the year has been to achieve this objective through the day to day involvement of management in business decisions rather than through setting maximum or minimum liquidity ratios.

Interest rate risk

The group finances its operations through a mixture of bank and other external borrowings. The group's exposure to interest rate fluctuations on its borrowings is managed by the use of fixed and floating facilities. The balance sheet includes trade debtors and creditors which do not attract interest and are therefore subject to fair value interest rate risk.

Foreign currency risk

The business purchases foreign currency in order to import products from around the world, primarily in US Dollars. We have access to a full range of FX solutions which are used as management deem appropriate.

Credit risk

The group's principal financial assets are cash and trade debtors. The credit risk associated with cash is limited as the counterparties have high credit ratings assigned by international credit-rating agencies. The principal credit risk therefore arises from its trade debtors.

 

In order to manage credit risk, the directors set credit limits for customers based on a combination of payment history and third party credit references. Credit limits are reviewed by the finance director on a regular basis in conjunction with debt ageing and collection history.

ZAMAX ENTERPRISES LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 4 -
Auditor

The audit business of UHY Hacker Young Manchester LLP was acquired by Cooper Parry Group Limited on 30 September 2024. UHY Hacker Young Manchester LLP has resigned as auditor and Cooper Parry Group Limited has been appointed in its place. The auditor, , is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Statement of director's responsibilities

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

 

Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the director is required to:

 

 

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

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 auditor of the company 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 auditor of the company is aware of that information.

On behalf of the board
M G Leighton
Director
31 October 2024
ZAMAX ENTERPRISES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ZAMAX ENTERPRISES LIMITED
- 5 -
Opinion

We have audited the financial statements of Zamax Enterprises Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 January 2024 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including 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:

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 group and parent 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 director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

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

 

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

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The director is responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

ZAMAX ENTERPRISES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ZAMAX ENTERPRISES LIMITED
- 6 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the director's report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of director

As explained more fully in the director's responsibilities statement, the director is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the director determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the director is responsible for assessing the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the parent company or to cease operations, or has 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.

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.

Identifying and assessing potential risks related to irregularities

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, we considered the following:

 

 

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas: valuation of used vehicle stocks and recognition of supplier incentives. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.

ZAMAX ENTERPRISES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ZAMAX ENTERPRISES LIMITED
- 7 -

We also obtained an understanding of the legal and regulatory frameworks the group operates in, focussing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act and tax legislation.

 

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the group's ability to operate or to avoid a material penalty. These included the group's FCA regulatory requirements.

 

Our procedures to respond to risks identified included the following:

 

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

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.

Ian McMahon FCCA FMAAT
For and on behalf of
31 October 2024
Cooper Parry Group Limited
Statutory Auditor
St James Building
79 Oxford Street
Manchester
M1 6HT
ZAMAX ENTERPRISES LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 JANUARY 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
24,957,273
21,086,181
Cost of sales
(19,998,323)
(16,025,347)
Gross profit
4,958,950
5,060,834
Administrative expenses
(3,484,113)
(3,318,397)
Other operating income
47,035
8,817
Operating profit
4
1,521,872
1,751,254
Interest payable and similar expenses
6
(602,865)
(479,361)
Profit before taxation
919,007
1,271,893
Tax on profit
7
(263,785)
(44,198)
Profit for the financial year
23
655,222
1,227,695
Other comprehensive income
Revaluation of tangible fixed assets
-
0
85,381
Tax relating to other comprehensive income
-
0
(5,369)
Total comprehensive income for the year
655,222
1,307,707
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.
ZAMAX ENTERPRISES LIMITED
GROUP BALANCE SHEET
AS AT 31 JANUARY 2024
31 January 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
9
62,555
51,990
Tangible assets
10
10,852,453
6,551,230
Investment property
11
439,540
439,541
Investments
12
211,591
-
0
11,566,139
7,042,761
Current assets
Stocks
14
8,337,789
4,831,514
Debtors
15
1,899,076
984,320
Cash at bank and in hand
729,327
1,336,694
10,966,192
7,152,528
Creditors: amounts falling due within one year
16
(10,790,386)
(4,323,068)
Net current assets
175,806
2,829,460
Total assets less current liabilities
11,741,945
9,872,221
Creditors: amounts falling due after more than one year
17
(5,244,710)
(3,888,593)
Provisions for liabilities
Deferred tax liability
20
1,169,292
905,507
(1,169,292)
(905,507)
Net assets
5,327,943
5,078,121
Capital and reserves
Called up share capital
22
111
111
Revaluation reserve
23
80,012
80,012
Profit and loss reserves
23
5,247,820
4,997,998
Total equity
5,327,943
5,078,121
The financial statements were approved and signed by the director and authorised for issue on 31 October 2024
31 October 2024
M G Leighton
Director
Company registration number 10434556 (England and Wales)
ZAMAX ENTERPRISES LIMITED
COMPANY BALANCE SHEET
AS AT 31 JANUARY 2024
31 January 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
10
2,126,390
2,108,200
Investment property
11
439,540
439,541
Investments
12
11
11
2,565,941
2,547,752
Current assets
Debtors
15
340,703
-
0
Cash at bank and in hand
29,557
37,332
370,260
37,332
Creditors: amounts falling due within one year
16
(686,790)
(279,173)
Net current liabilities
(316,530)
(241,841)
Total assets less current liabilities
2,249,411
2,305,911
Creditors: amounts falling due after more than one year
17
(1,609,811)
(1,716,597)
Provisions for liabilities
Deferred tax liability
20
17,867
5,369
(17,867)
(5,369)
Net assets
621,733
583,945
Capital and reserves
Called up share capital
22
111
111
Revaluation reserve
23
80,012
80,012
Profit and loss reserves
23
541,610
503,822
Total equity
621,733
583,945

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £443,188 (2023 - £230,189 profit).

The financial statements were approved and signed by the director and authorised for issue on 31 October 2024
31 October 2024
M G Leighton
Director
Company registration number 10434556 (England and Wales)
ZAMAX ENTERPRISES LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JANUARY 2024
- 11 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 February 2022
111
-
0
3,940,303
3,940,414
Year ended 31 January 2023:
Profit for the year
-
-
1,227,695
1,227,695
Other comprehensive income:
Revaluation of tangible fixed assets
-
85,381
-
85,381
Tax relating to other comprehensive income
-
(5,369)
-
0
(5,369)
Total comprehensive income
-
80,012
1,227,695
1,307,707
Dividends
8
-
-
(170,000)
(170,000)
Balance at 31 January 2023
111
80,012
4,997,998
5,078,121
Year ended 31 January 2024:
Profit and total comprehensive income
-
-
655,222
655,222
Dividends
8
-
-
(405,400)
(405,400)
Balance at 31 January 2024
111
80,012
5,247,820
5,327,943
ZAMAX ENTERPRISES LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JANUARY 2024
- 12 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 February 2022
111
-
0
443,633
443,744
Year ended 31 January 2023:
Profit for the year
-
-
230,189
230,189
Other comprehensive income:
Revaluation of tangible fixed assets
-
85,381
-
85,381
Tax relating to other comprehensive income
-
(5,369)
-
0
(5,369)
Total comprehensive income
-
80,012
230,189
310,201
Dividends
8
-
-
(170,000)
(170,000)
Balance at 31 January 2023
111
80,012
503,822
583,945
Year ended 31 January 2024:
Profit and total comprehensive income
-
-
443,188
443,188
Dividends
8
-
-
(405,400)
(405,400)
Balance at 31 January 2024
111
80,012
541,610
621,733
ZAMAX ENTERPRISES LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 JANUARY 2024
- 13 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
27
6,587,065
(240,484)
Interest paid
(602,865)
(479,361)
Income taxes refunded/(paid)
130,068
(125,000)
Net cash inflow/(outflow) from operating activities
6,114,268
(844,845)
Investing activities
Purchase of intangible assets
(31,469)
(19,796)
Purchase of tangible fixed assets
(6,856,542)
(1,375,426)
Proceeds from disposal of tangible fixed assets
2,002,665
3,765,058
Purchase of investment property
-
(228,831)
Directors loan account
(494,073)
(13,688)
Net cash (used in)/generated from investing activities
(5,379,419)
2,127,317
Financing activities
Repayment of borrowings
-
(23,056)
Repayment of bank loans
(71,572)
(435,466)
Payment of finance leases obligations
(865,244)
(943,636)
Dividends paid to equity shareholders
(405,400)
(170,000)
Net cash used in financing activities
(1,342,216)
(1,572,158)
Net decrease in cash and cash equivalents
(607,367)
(289,686)
Cash and cash equivalents at beginning of year
1,336,694
1,626,380
Cash and cash equivalents at end of year
729,327
1,336,694
ZAMAX ENTERPRISES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024
- 14 -
1
Accounting policies
Company information

Zamax Enterprises Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Unit 1, Dodds Close, Rotherham, South Yorkshire, S60 1BX.

 

The group consists of Zamax Enterprises Limited and all of its subsidiaries.

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 £.

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

The 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 for parent company information presented within the consolidated financial statements:

 

1.2
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Zamax Enterprises Limited together with all entities controlled by the parent company (its subsidiaries) which are material to the group.

 

All financial statements are made up to 31 January 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

 

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

1.3
Going concern

At the time of approving the financial statements, the director has a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.

ZAMAX ENTERPRISES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 15 -
1.4
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.

 

Sales of motor vehicles, parts and accessories are recognised on the earlier of full payment by, or delivery date to, the customer. Any other manufacturer income in relation to achieving targets is recognised on an accrual basis. Servicing revenue is recognised on the completion of the agreed work.

Turnover from commission's receivable is recognised when the amount can be reliably measured and it is probable that the company will receive the consideration.

1.5
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.

1.6
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

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:

Other
5% straight line
1.7
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:

Freehold land and buildings
land nil, buildings 2% straight line
Leasehold land and buildings
2-20% straight line
Plant and machinery
20-33% straight line
Fixtures and fittings
20-33% straight line
Computers
20-33% straight line
Motor vehicles
5-50% straight line

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 recognised in the profit and loss account.

ZAMAX ENTERPRISES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 16 -
1.8
Investment property

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.

1.9
Fixed asset investments

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.10
Impairment of fixed assets

At each reporting period end date, the group 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.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

1.11
Stocks

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

At each reporting date, 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.

1.12
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.

1.13
Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments' of FRS 102 to all of its financial instruments.

 

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

 

Financial assets and liabilities are offset and 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.

ZAMAX ENTERPRISES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 17 -
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 group 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 group 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 group's contractual obligations expire or are discharged or cancelled.

1.14
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

1.15
Taxation

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

ZAMAX ENTERPRISES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 18 -
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 group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

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 if, and only if, there is 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.

1.16
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.

1.17
Retirement benefits

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

1.18
Leases

Assets held under hire purchase are capitalised in the Statement of Financial Position. Those held under hire purchase contracts are depreciated over their estimated useful lives. The interest element of these obligations is charged to the Statement of Comprehensive Income over the relevant period. The capital element of the future payments is treated as a liability in the Statement of Financial Position.

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 leased asset are consumed.

 

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

ZAMAX ENTERPRISES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 19 -
2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the director is 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.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Stock valuation

Stock valuation is regularly monitored against age profile and market demand. Management use a number of market tools during the appraisal process. The directors maintain oversight of ageing stock profiles and a monthly review of any provision required is performed.

Useful lives of intangible and tangible fixed assets

The annual depreciation/amortisation charge for tangible and intangible assets is sensitive to changes in the estimated useful economic lives of the assets so these are re-assessed annually and amended when necessary to reflect current estimates. See the accounting policies note for the useful economic lives for each class of assets.

3
Turnover
2024
2023
£
£
Turnover analysed by class of business
Sale of goods
23,807,719
20,189,454
Rendering of services
1,149,554
874,104
Commissions receivable
-
22,623
24,957,273
21,086,181
4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange gains
(5,428)
(8,817)
Fees payable to the group's auditor for the audit of the group's financial statements
2,200
3,575
Depreciation of owned tangible fixed assets
531,439
470,128
Loss/(profit) on disposal of tangible fixed assets
13,075
(27,261)
Amortisation of intangible assets
29,044
15,950
Operating lease charges
-
1,598
ZAMAX ENTERPRISES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 20 -
5
Employees

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

Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Director
1
4
1
1
Finance
3
2
-
-
Marketing
4
2
-
-
Sales and aftersales
35
27
-
-
Total
43
35
1
1

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
1,251,963
1,134,855
-
0
-
0
Social security costs
121,181
25,880
-
-
Pension costs
24,285
21,498
-
0
-
0
1,397,429
1,182,233
-
0
-
0
6
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
152,790
91,721
Interest on finance leases and hire purchase contracts
204,563
165,968
Stocking loan interest
245,512
221,672
Total finance costs
602,865
479,361
7
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
-
0
539,232
Adjustments in respect of prior periods
-
0
(228,609)
Total current tax
-
0
310,623
ZAMAX ENTERPRISES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
7
Taxation
2024
2023
£
£
(Continued)
- 21 -
Deferred tax
Origination and reversal of timing differences
263,785
(378,371)
Adjustment in respect of prior periods
-
0
111,946
Total deferred tax
263,785
(266,425)
Total tax charge
263,785
44,198

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

2024
2023
£
£
Profit before taxation
919,007
1,271,893
Expected tax charge based on the standard rate of corporation tax in the UK of 24.03% (2023: 19.00%)
220,837
241,660
Tax effect of expenses that are not deductible in determining taxable profit
1,333
2,374
Adjustments in respect of prior years
24,703
(203,273)
Depreciation on assets not qualifying for tax allowances
7,201
6,662
Deferred tax adjustments in respect of prior years
-
0
111,946
Prior year adjustment impact
-
0
(25,336)
Remeasurement of deferred tax for changes in tax rates
8,770
(94,360)
Intangibles TWDV adjustments
-
0
(8,638)
Movement in deferred tax not recognised
822
14,795
Super-deduction expenditure adjustments
-
(1,632)
Amounts (charged)/credited directly to STRGL
119
-
Taxation charge
263,785
44,198

In addition to the amount charged to the profit and loss account, the following amounts relating to tax have been recognised directly in other comprehensive income:

2024
2023
£
£
Deferred tax arising on:
Revaluation of property
-
5,369
ZAMAX ENTERPRISES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 22 -
8
Dividends
2024
2023
Recognised as distributions to equity holders:
£
£
Final paid
405,400
170,000
9
Intangible fixed assets
Group
Goodwill
Other
Total
£
£
£
Cost
At 1 February 2023
35,000
96,476
131,476
Additions
-
0
31,469
31,469
Transfers
-
0
8,140
8,140
At 31 January 2024
35,000
136,085
171,085
Amortisation and impairment
At 1 February 2023
35,000
44,486
79,486
Amortisation charged for the year
-
0
29,044
29,044
At 31 January 2024
35,000
73,530
108,530
Carrying amount
At 31 January 2024
-
0
62,555
62,555
At 31 January 2023
-
0
51,990
51,990
The company had no intangible fixed assets at 31 January 2024 or 31 January 2023.
ZAMAX ENTERPRISES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 23 -
10
Tangible fixed assets
Group
Freehold land and buildings
Leasehold land and buildings
Assets under construction
Plant and machinery
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
£
£
Cost or valuation
At 1 February 2023
2,140,000
435,576
98,092
1,163,430
97,803
33,579
3,520,212
7,488,692
Additions
-
0
60,600
52,674
157,386
14,645
29,067
6,534,030
6,848,402
Disposals
-
0
-
0
-
0
-
0
-
0
-
0
(2,133,696)
(2,133,696)
Transfers
-
0
-
0
(95,092)
77,455
9,497
-
0
-
0
(8,140)
At 31 January 2024
2,140,000
496,176
55,674
1,398,271
121,945
62,646
7,920,546
12,195,258
Depreciation and impairment
At 1 February 2023
31,800
139,995
-
0
536,138
74,130
21,602
133,797
937,462
Depreciation charged in the year
31,800
67,171
-
0
298,739
12,731
11,906
109,092
531,439
Eliminated in respect of disposals
-
0
-
0
-
0
-
0
-
0
-
0
(126,096)
(126,096)
At 31 January 2024
63,600
207,166
-
0
834,877
86,861
33,508
116,793
1,342,805
Carrying amount
At 31 January 2024
2,076,400
289,010
55,674
563,394
35,084
29,138
7,803,753
10,852,453
At 31 January 2023
2,108,200
295,581
98,092
627,292
23,673
11,977
3,386,415
6,551,230
ZAMAX ENTERPRISES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 24 -
Company
Freehold land and buildings
Plant and machinery
Motor vehicles
Total
£
£
£
£
Cost or valuation
At 1 February 2023
2,140,000
6,899
-
0
2,146,899
Additions
-
0
-
0
49,990
49,990
At 31 January 2024
2,140,000
6,899
49,990
2,196,889
Depreciation and impairment
At 1 February 2023
31,800
6,899
-
0
38,699
Depreciation charged in the year
31,800
-
0
-
0
31,800
At 31 January 2024
63,600
6,899
-
0
70,499
Carrying amount
At 31 January 2024
2,076,400
-
0
49,990
2,126,390
At 31 January 2023
2,108,200
-
0
-
0
2,108,200

Included in freehold property is land at a cost of £550,000 (2023: £550,000) which is not depreciated.

Land and buildings with a carrying amount of £2,054,619 were revalued at 11 October 2022 by Sanderson Weatherall, independent valuers not connected with the company on the basis of market value. The valuation conforms to International Valuation Standards and was based on recent market transactions on arm's length terms for similar properties.

The following assets are carried at valuation. If the assets were measured using the cost model, the carrying amounts would be as follows:

2024
2023
£
£
Group
Cost
2,054,619
2,054,619
Accumulated depreciation
(126,518)
(96,426)
Carrying value
1,928,101
1,958,193
11
Investment property
Group
Company
2024
2024
£
£
Fair value
At 1 February 2023 and 31 January 2024
439,540
439,540

The director believes this cost remains the fair value.

ZAMAX ENTERPRISES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 25 -
12
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
13
-
0
-
0
11
11
Loans
211,591
-
0
-
0
-
0
211,591
-
0
11
11
Movements in fixed asset investments
Group
Loans
£
Cost or valuation
At 1 February 2023
-
Additions
211,591
At 31 January 2024
211,591
Carrying amount
At 31 January 2024
211,591
At 31 January 2023
-

Included within investments are invoices of amounts advanced to Leighton Vans B.V. and Leighton Vans Australia Pty Ltd, net of impairments.

Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 February 2023 and 31 January 2024
11
Carrying amount
At 31 January 2024
11
At 31 January 2023
11
13
Subsidiaries

Details of the company's subsidiaries at 31 January 2024 are as follows:

Name of undertaking
Address
Class of
% Held
shares held
Direct
Indirect
Leighton Vans Limited
1
Ordinary
100.00
-
Leighton Drive Limited
1
Ordinary
100.00
-
Leighton Vans B.V.
Netherlands
Ordinary
-
100.00
Leighton Vans Australia Pty Ltd
Australia
Ordinary
-
85.00
ZAMAX ENTERPRISES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
13
Subsidiaries
(Continued)
- 26 -

Registered office addresses (all UK unless otherwise indicated):

1
Unit 1 Dodds Close, Rotherham, South Yorkshire, United Kingdom, S60 1BX
14
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Parts stock
1,614,877
1,068,567
-
-
Work in progress
348,746
192,498
-
-
Vehicle stock
6,374,166
3,570,449
-
0
-
0
8,337,789
4,831,514
-
-
15
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
605,293
434,227
-
0
-
0
Other debtors
1,177,038
391,476
340,703
-
0
Prepayments and accrued income
116,745
158,617
-
0
-
0
1,899,076
984,320
340,703
-
16
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans
18
618,755
340,894
62,075
17,365
Obligations under finance leases
19
834,968
742,980
-
0
-
0
Trade creditors
5,790,265
2,522,374
-
0
-
0
Amounts owed to group undertakings
-
0
-
0
602,904
212,485
Corporation tax payable
521,309
391,241
-
0
22,900
Other taxation and social security
36,190
53,682
-
9,170
Other creditors
2,619,232
167,298
-
0
-
0
Accruals and deferred income
369,667
104,599
21,811
17,253
10,790,386
4,323,068
686,790
279,173

The vehicle funding creditor amounting to £4,910,068 (2023: £1,921,760) included within trade creditors is secured directly over the vehicles to which it relates.

ZAMAX ENTERPRISES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 27 -
17
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
18
1,609,811
1,959,244
1,609,811
1,716,597
Obligations under finance leases
19
3,634,899
1,929,349
-
0
-
0
5,244,710
3,888,593
1,609,811
1,716,597
Amounts included above which fall due after five years are as follows:
Payable by instalments
1,485,660
1,335,702
-
1,335,702
18
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans
2,228,566
2,300,138
1,671,886
1,733,962
Payable within one year
618,755
340,894
62,075
17,365
Payable after one year
1,609,811
1,959,244
1,609,811
1,716,597

The bank overdraft and loans are secured by a fixed charge over the property of the company together with a fixed and floating charge over all the assets of the company.

The first bank loan, amounting to £242,647 (2023: £566,176), is a loan underwritten by the Coronavirus Business Interruption Loan Scheme in which the UK Government has offered to cover the first 12 months of interest payments under the UK Government's Business Interruption Payment (BIP). In addition to this, no repayments had to made over the first 12 months. After this period, the loan is to be repaid in equal monthly instalments of £29,961 until October 2024. Interest is charged at 3.00% above the bank base rate.

 

The second bank loan, amounting to £314,033 (2023: £nil) bears interest at a rate of 3.30% above the bank base rate and is due to be repaid by November 2024.

 

A third bank loan, amounting to £1,335,870 (2023: £1,397,946) bears interest at a rate of 3% above the bank base rate and is due to be repaid by November 2036.

 

A first interest only mortgage, amounting to £175,725 (2023: £175,725) bears interest at a fixed rate of 3.24% for 5 years before changing to a variable rate for 15 years.

 

A second interest only mortgage, amounting to £160,291 (2023: £160,291) bears interest at a fixed rate of 3.24% for 5 years before changing to a variable rate for 15 years.

ZAMAX ENTERPRISES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 28 -
19
Hire purchase contracts
Group
Company
2024
2023
2024
2023
£
£
£
£
Future minimum lease payments due under hire purchase contracts:
Within one year
812,213
742,980
-
0
-
0
In two to five years
3,657,654
1,929,349
-
0
-
0
4,469,867
2,672,329
-
-
20
Deferred taxation

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

Liabilities
Liabilities
2024
2023
Group
£
£
Accelerated capital allowances
1,364,771
905,686
Short term timing differences
(5,145)
(5,548)
Losses
(195,703)
-
Capital gains
5,369
5,369
1,169,292
905,507
Liabilities
Liabilities
2024
2023
Company
£
£
Accelerated capital allowances
12,498
-
Capital gains
5,369
5,369
17,867
5,369
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 February 2023
905,507
5,369
Charge to profit or loss
263,785
12,498
Liability at 31 January 2024
1,169,292
17,867
ZAMAX ENTERPRISES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 29 -
21
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
24,285
21,498

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

22
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
111
111
111
111
23
Reserves
Revaluation reserve

This reserve is used to record the increase/decrease in the fair value of freehold land and buildings.

Profit and loss reserves

This reserve includes all current and prior period retained profits and losses, less dividends voted.

24
Related party transactions

At year end a balance of £148,455 (2023: £nil) was owed by a related party by virtue of common directorship.

25
Directors' transactions

Included within debtors due within one year are directors' loan accounts totalling £383,663 (2023: £95,451).

26
Controlling party

M G Leighton is the immediate and ultimate controlling party by virtue of his majority shareholding in the company.

ZAMAX ENTERPRISES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 30 -
27
Cash generated from/(absorbed by) group operations
2024
2023
£
£
Profit for the year after tax
655,222
1,227,695
Adjustments for:
Taxation charged
263,785
44,198
Finance costs
602,865
479,361
Loss/(gain) on disposal of tangible fixed assets
13,075
(27,261)
Amortisation and impairment of intangible assets
29,044
15,950
Depreciation and impairment of tangible fixed assets
531,439
470,128
Movements in working capital:
Increase in stocks
(3,506,275)
(185,848)
Increase in debtors
(588,774)
(233,585)
Increase/(decrease) in creditors
8,586,684
(2,031,122)
Cash generated from/(absorbed by) operations
6,587,065
(240,484)
28
Analysis of changes in net debt - group
1 February 2023
Cash flows
31 January 2024
£
£
£
Cash at bank and in hand
1,336,694
(607,367)
729,327
Borrowings excluding overdrafts
(2,300,138)
71,572
(2,228,566)
Obligations under finance leases
(2,672,329)
(1,797,538)
(4,469,867)
(3,635,773)
(2,333,333)
(5,969,106)
2024-01-312023-02-01falseCCH SoftwareCCH Accounts Production 2024.210M G Leightonfalsefalse10434556bus:Consolidated2023-02-012024-01-31104345562023-02-012024-01-3110434556bus:Director12023-02-012024-01-3110434556bus:RegisteredOffice2023-02-012024-01-31104345562024-01-3110434556bus:Consolidated2024-01-3110434556bus:Consolidated2022-02-012023-01-31104345562022-02-012023-01-3110434556core:RevaluationReservebus:Consolidated2022-02-012023-01-3110434556core:RevenueReservesInvestmentFundsOnlybus:Consolidated2022-02-012023-01-3110434556core:RevaluationReserve2022-02-012023-01-3110434556core:RetainedEarningsAccumulatedLosses2022-02-012023-01-3110434556core:OtherResidualIntangibleAssetsbus:Consolidated2024-01-3110434556core:OtherResidualIntangibleAssetsbus:Consolidated2023-01-3110434556core:Goodwillbus:Consolidated2024-01-3110434556core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwillbus:Consolidated2024-01-3110434556core:Goodwillbus:Consolidated2023-01-3110434556core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwillbus:Consolidated2023-01-3110434556bus:Consolidated2023-01-31104345562023-01-3110434556core:LandBuildingscore:OwnedOrFreeholdAssetsbus:Consolidated2024-01-3110434556core:LandBuildingscore:LeasedAssetsHeldAsLesseebus:Consolidated2024-01-3110434556core:ConstructionInProgressAssetsUnderConstructionbus:Consolidated2024-01-3110434556core:PlantMachinerybus:Consolidated2024-01-3110434556core:FurnitureFittingsbus:Consolidated2024-01-3110434556core:ComputerEquipmentbus:Consolidated2024-01-3110434556core:MotorVehiclesbus:Consolidated2024-01-3110434556core:LandBuildingscore:OwnedOrFreeholdAssetsbus:Consolidated2023-01-3110434556core:LandBuildingscore:LeasedAssetsHeldAsLesseebus:Consolidated2023-01-3110434556core:ConstructionInProgressAssetsUnderConstructionbus:Consolidated2023-01-3110434556core:PlantMachinerybus:Consolidated2023-01-3110434556core:FurnitureFittingsbus:Consolidated2023-01-3110434556core:ComputerEquipmentbus:Consolidated2023-01-3110434556core:MotorVehiclesbus:Consolidated2023-01-3110434556core:LandBuildingscore:OwnedOrFreeholdAssets2024-01-3110434556core:PlantMachinery2024-01-3110434556core:MotorVehicles2024-01-3110434556core:LandBuildingscore:OwnedOrFreeholdAssets2023-01-3110434556core:PlantMachinery2023-01-3110434556core:MotorVehicles2023-01-3110434556core:ShareCapitalbus:Consolidated2024-01-3110434556core:ShareCapitalbus:Consolidated2023-01-3110434556core:RevaluationReservebus:Consolidated2024-01-3110434556core:RevaluationReservebus:Consolidated2023-01-3110434556core:ShareCapital2024-01-3110434556core:ShareCapital2023-01-3110434556core:RevaluationReserve2024-01-3110434556core:RevaluationReserve2023-01-3110434556core:RetainedEarningsAccumulatedLosses2024-01-3110434556core:ShareCapitalbus:Consolidated2022-01-3110434556core:SharePremiumbus:Consolidated2022-01-31104345562022-01-3110434556core:RetainedEarningsAccumulatedLossesbus:Consolidated2023-01-3110434556core:RetainedEarningsAccumulatedLossesbus:Consolidated2024-01-3110434556core:ShareCapital2022-01-3110434556core:RevaluationReserve2022-01-3110434556core:RetainedEarningsAccumulatedLosses2022-01-3110434556core:RetainedEarningsAccumulatedLosses2023-01-3110434556bus:Consolidated2022-01-3110434556core:Goodwill2023-02-012024-01-3110434556core:IntangibleAssetsOtherThanGoodwill2023-02-012024-01-3110434556core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwill2023-02-012024-01-3110434556core:LandBuildingscore:OwnedOrFreeholdAssets2023-02-012024-01-3110434556core:LandBuildingscore:LongLeaseholdAssets2023-02-012024-01-3110434556core:PlantMachinery2023-02-012024-01-3110434556core:FurnitureFittings2023-02-012024-01-3110434556core:ComputerEquipment2023-02-012024-01-3110434556core:MotorVehicles2023-02-012024-01-3110434556core:UKTaxbus:Consolidated2023-02-012024-01-3110434556core:UKTaxbus:Consolidated2022-02-012023-01-3110434556bus:Consolidated12023-02-012024-01-3110434556bus:Consolidated12022-02-012023-01-3110434556bus:Consolidated22023-02-012024-01-3110434556bus:Consolidated22022-02-012023-01-3110434556bus:Consolidated32023-02-012024-01-3110434556bus:Consolidated32022-02-012023-01-3110434556core:Goodwillbus:Consolidated2023-01-3110434556core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwillbus:Consolidated2023-01-3110434556bus:Consolidated2023-01-3110434556core:Goodwillcore:ExternallyAcquiredIntangibleAssetsbus:Consolidated2023-02-012024-01-3110434556core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwillcore:ExternallyAcquiredIntangibleAssetsbus:Consolidated2023-02-012024-01-3110434556core:ExternallyAcquiredIntangibleAssetsbus:Consolidated2023-02-012024-01-3110434556core:Goodwillbus:Consolidated2023-02-012024-01-3110434556core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwillbus:Consolidated2023-02-012024-01-3110434556core:LandBuildingscore:OwnedOrFreeholdAssetsbus:Consolidated2023-01-3110434556core:LandBuildingscore:LeasedAssetsHeldAsLesseebus:Consolidated2023-01-3110434556core:ConstructionInProgressAssetsUnderConstructionbus:Consolidated2023-01-3110434556core:PlantMachinerybus:Consolidated2023-01-3110434556core:FurnitureFittingsbus:Consolidated2023-01-3110434556core:ComputerEquipmentbus:Consolidated2023-01-3110434556core:MotorVehiclesbus:Consolidated2023-01-3110434556core:LandBuildingscore:OwnedOrFreeholdAssets2023-01-3110434556core:PlantMachinery2023-01-3110434556core:MotorVehicles2023-01-31104345562023-01-3110434556core:LandBuildingscore:OwnedOrFreeholdAssetsbus:Consolidated2023-02-012024-01-3110434556core:LandBuildingscore:LeasedAssetsHeldAsLesseebus:Consolidated2023-02-012024-01-3110434556core:ConstructionInProgressAssetsUnderConstructionbus:Consolidated2023-02-012024-01-3110434556core:PlantMachinerybus:Consolidated2023-02-012024-01-3110434556core:FurnitureFittingsbus:Consolidated2023-02-012024-01-3110434556core:ComputerEquipmentbus:Consolidated2023-02-012024-01-3110434556core:MotorVehiclesbus:Consolidated2023-02-012024-01-3110434556core:CurrentFinancialInstruments2024-01-3110434556core:CurrentFinancialInstruments2023-01-3110434556core:CurrentFinancialInstrumentsbus:Consolidated2024-01-3110434556core:CurrentFinancialInstrumentsbus:Consolidated2023-01-3110434556core:WithinOneYearbus:Consolidated2024-01-3110434556core:WithinOneYearbus:Consolidated2023-01-3110434556core:CurrentFinancialInstrumentscore:WithinOneYear2024-01-3110434556core:CurrentFinancialInstrumentscore:WithinOneYear2023-01-3110434556core:Non-currentFinancialInstrumentscore:AfterOneYearbus:Consolidated2024-01-3110434556core:Non-currentFinancialInstrumentscore:AfterOneYearbus:Consolidated2023-01-3110434556core:Non-currentFinancialInstrumentscore:AfterOneYear2024-01-3110434556core:Non-currentFinancialInstrumentscore:AfterOneYear2023-01-3110434556core:Non-currentFinancialInstrumentsbus:Consolidated2024-01-3110434556core:Non-currentFinancialInstrumentsbus:Consolidated2023-01-3110434556core:Non-currentFinancialInstruments2024-01-3110434556core:Non-currentFinancialInstruments2023-01-3110434556core:CurrentFinancialInstrumentscore:WithinOneYearbus:Consolidated2024-01-3110434556core:CurrentFinancialInstrumentscore:WithinOneYearbus:Consolidated2023-01-3110434556core:WithinOneYear2024-01-3110434556core:WithinOneYear2023-01-3110434556core:BetweenTwoFiveYearsbus:Consolidated2024-01-3110434556core:BetweenTwoFiveYearsbus:Consolidated2023-01-3110434556core:BetweenTwoFiveYears2024-01-3110434556core:BetweenTwoFiveYears2023-01-3110434556bus:PrivateLimitedCompanyLtd2023-02-012024-01-3110434556bus:FRS1022023-02-012024-01-3110434556bus:Audited2023-02-012024-01-3110434556bus:ConsolidatedGroupCompanyAccounts2023-02-012024-01-3110434556bus:FullAccounts2023-02-012024-01-31xbrli:purexbrli:sharesiso4217:GBP