STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 29 FEBRUARY 2024 |
FOR |
KEITH MOTORS (CHRISTCHURCH) LIMITED |
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: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
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: |
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. |
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: |
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. |
for and on behalf of |
Chartered Accountants |
5th Floor |
Waverley House |
115-119 Holdenhurst Road |
Bournemouth |
Dorset |
BH8 8DY |
KEITH MOTORS (CHRISTCHURCH) LIMITED (REGISTERED NUMBER: 00791927) |
INCOME STATEMENT |
For The Year Ended 29 February 2024 |
2024 | 2023 |
Notes | £ | £ |
TURNOVER | 3 |
Cost of sales | ( |
) | ( |
) |
GROSS PROFIT |
Administrative expenses | ( |
) | ( |
) |
365,143 | 636,455 |
Other operating income | 4 |
OPERATING PROFIT | 6 |
Other finance costs | 19 | ( |
) |
PROFIT BEFORE TAXATION |
Tax on profit | 7 | ( |
) | ( |
) |
PROFIT FOR THE FINANCIAL YEAR |
KEITH MOTORS (CHRISTCHURCH) LIMITED (REGISTERED NUMBER: 00791927) |
OTHER COMPREHENSIVE INCOME |
For The Year Ended 29 February 2024 |
2024 | 2023 |
Notes | £ | £ |
PROFIT FOR THE YEAR |
OTHER COMPREHENSIVE (LOSS)/INCOME |
Remeasurement gain/(loss) on defined |
benefit pension plan | ( |
) |
Deferred tax (cost)/benefit on |
actuarial gains | ( |
) |
Income tax relating to components of other comprehensive (loss)/income |
OTHER COMPREHENSIVE (LOSS)/INCOME FOR THE YEAR, NET OF INCOME TAX |
( |
) |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
KEITH MOTORS (CHRISTCHURCH) LIMITED (REGISTERED NUMBER: 00791927) |
BALANCE SHEET |
29 February 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 9 |
Tangible assets | 10 |
CURRENT ASSETS |
Stocks | 11 |
Debtors | 12 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 13 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
PROVISIONS FOR LIABILITIES | 16 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 17 |
Share premium | 18 |
Capital redemption reserve | 18 |
Retained earnings | 18 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
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 |
Changes in equity |
Dividends | - | ( |
) | - | - | ( |
) |
Total comprehensive income | - | - |
Balance at 28 February 2023 |
Changes in equity |
Dividends | - | ( |
) | - | - | ( |
) |
Total comprehensive income | - | - |
Balance at 29 February 2024 |
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 |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
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 |
Long leasehold | - |
Plant and machinery | - |
Motor vehicles | - |
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 |
£ | £ |
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 |
Social security costs |
The average number of employees during the year was as follows: |
2024 | 2023 |
Workshop | 9 | 40 |
Sales | 22 | 22 |
Administration | 41 | 9 |
Social security costs include pension contributions of £38,288 (2023 - £36,109). |
2024 | 2023 |
£ | £ |
Directors' remuneration |
The number of directors to whom retirement benefits were accruing was as follows: |
Defined benefit schemes |
Information regarding the highest paid director is as follows: |
2024 | 2023 |
£ | £ |
Emoluments etc |
6. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2024 | 2023 |
£ | £ |
Depreciation - owned assets |
Profit on disposal of fixed assets | ( |
) | ( |
) |
Auditors' remuneration |
Other operating lease rentals |
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: |
2024 | 2023 |
£ | £ |
Current tax: |
UK corporation tax | 83,539 | 111,216 |
Deferred tax | (2,374 | ) | 3,024 |
Tax on profit | 81.165 | 114,240 |
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: |
2024 | 2023 |
£ | £ |
Profit before tax | 385,143 | 643,455 |
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 purposes | 375 | 3,552 |
Depreciation in excess of capital allowances | 1,145 | - |
Capital allowances in excess of depreciation | - | (2,778 | ) |
Allowable pension contributions | (14,634 | ) | (15,894 | ) |
Deferred tax rate differential | (50 | ) | 7,104 |
Total tax charge | 81,165 | 114,240 |
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 |
2024 | 2023 |
£ | £ |
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 |
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 |
AMORTISATION |
At 1 March 2023 |
and 29 February 2024 |
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 |
Additions |
Disposals | ( |
) | ( |
) |
At 29 February 2024 |
DEPRECIATION |
At 1 March 2023 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
At 29 February 2024 |
NET BOOK VALUE |
At 29 February 2024 |
At 28 February 2023 |
11. | STOCKS |
2024 | 2023 |
£ | £ |
Raw materials |
Work-in-progress |
Finished goods |
12. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2024 | 2023 |
£ | £ |
Trade debtors |
Prepayments |
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 |
Trade creditors |
Amounts owed to group undertakings |
Corporation tax |
Social security and other taxes |
Other creditors |
Accruals and deferred income |
14. | LEASING AGREEMENTS |
Minimum lease payments under non-cancellable operating leases fall due as follows: |
2024 | 2023 |
£ | £ |
Within one year |
Between one and five years |
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 |
Credit to Income Statement during year | ( |
) |
Balance at 29 February 2024 |
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: | £ | £ |
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 | 472,783 |
Profit for the year |
Dividends | ( |
) | ( |
) |
Actuarial gain/ (loss) | (59,750 | ) | - | - | (59,750 | ) |
At 29 February 2024 | 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 |
- | 13,000 |
Actual return on plan assets | ( |
) |
Changes in the present value of the defined benefit obligation are as follows: |
Defined benefit |
pension plans |
2024 | 2023 |
£ | £ |
Opening defined benefit obligation |
Interest cost |
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 |
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 |
Contributions by employer |
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 | ) |
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 | ( |
) |
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 |
Inflation (RPI) |
Inflation (CPI) |
5% per annum CPI |
5% per annum RPI |
3% per annum RPI |
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 2024 | 21.8 |
Female retiring in 2024 | 23.0 |
Male retiring in 2044 | 23.9 |
Female retiring in 2044 | 25.4 |
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 £ |
23. | ULTIMATE CONTROLLING PARTY |
There is no ultimate controlling party in the parent company. |