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2022-10-01
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COMPANY REGISTRATION NUMBER:
SC173818
Richard Lawson (Autoecosse) Limited |
|
Filleted Unaudited Financial Statements |
|
Richard Lawson (Autoecosse) Limited |
|
Statement of Financial Position |
|
30 September 2023
Fixed assets
Tangible assets |
5 |
|
149,864 |
182,160 |
|
|
|
|
|
Current assets
Stocks |
2,131,515 |
|
1,976,575 |
Debtors |
6 |
477,472 |
|
517,438 |
Cash at bank and in hand |
19,760 |
|
8,827 |
|
------------ |
|
------------ |
|
2,628,747 |
|
2,502,840 |
|
|
|
|
|
Creditors: amounts falling due within one year |
7 |
1,872,517 |
|
1,902,842 |
|
------------ |
|
------------ |
Net current assets |
|
756,230 |
599,998 |
|
|
--------- |
--------- |
Total assets less current liabilities |
|
906,094 |
782,158 |
|
|
|
|
|
Creditors: amounts falling due after more than one year |
8 |
|
281,286 |
220,254 |
|
|
--------- |
--------- |
Net assets |
|
624,808 |
561,904 |
|
|
--------- |
--------- |
|
|
|
|
|
Richard Lawson (Autoecosse) Limited |
|
Statement of Financial Position (continued) |
|
30 September 2023
Capital and reserves
Called up share capital |
10 |
|
1,350,000 |
1,350,000 |
Profit and loss account |
|
(
725,192) |
(
788,096) |
|
|
------------ |
------------ |
Shareholders funds |
|
624,808 |
561,904 |
|
|
------------ |
------------ |
|
|
|
|
|
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with Section 1A of FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
In accordance with section 444 of the Companies Act 2006, the statement of income and retained earnings has not been delivered.
For the year ending 30 September 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Director's responsibilities:
-
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476
;
-
The director acknowledges his responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements
.
These financial statements were approved by the
board of directors
and authorised for issue on
31 October 2024
, and are signed on behalf of the board by:
Company registration number:
SC173818
Richard Lawson (Autoecosse) Limited |
|
Notes to the Financial Statements |
|
Year ended 30 September 2023
1.
General information
The company is a private company limited by shares, registered in Scotland. The address of the registered office is High Street, Burrelton, Perthshire, PH13 9NX.
2.
Statement of compliance
These financial statements have been prepared in compliance with Section 1A of FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.
3.
Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis. The financial statements are prepared in sterling, which is the functional currency of the entity.
Going concern
The company made a profit for the year to 30 September 2023 of £62,904 (2022 - loss for the year of £147,795) and at 30 September 2023 it had shareholders funds of £624,808 (2022 - funds of £561,904). The director is satisfied that, in the year to 30 September 2023, the company performed satisfactorily by focusing on marketing pre owned cars and light commercial and pick-ups. The new car franchise structure in the UK is now clearly under the control of the large multi brand dealer groups so any opportunity for smaller dealer operators is very limited. The benefits of a used vehicle sales operation result in lower operating costs and the ability to establish a stock mix that reflects consumer and business demand. The marketing of used vehicles can now be undertaken on a pan UK basis by online interaction with a prospective customer whereby the sales transaction can be progressed to a conclusion as they have received sufficient information to reach a balanced decision to purchase the vehicle of their choice. Equally we welcome customers to our dealership to view our extensive stock and the quality of our preparation standards where they can inspect vehicles at their leisure. However the used car market continues to experience change with one of the big disruptors that had planned to revolutionise the used car industry ceasing trading in the past year despite massive marketing and sponsorship costs. This showed this new business model was not a success and that the sale and marketing of used vehicles would continue to be dominated by a dealer network albeit using internet based solutions to reach their prospective market. Whilst some consumers are comfortable with a remote and impersonal buying process the vast majority still wish to interact with a dealer and establish a personal relationship. However consumers are now comfortable with researching their choice of car across the UK and dealers need to adapt to providing the information the customer is looking for and to create confidence with the customer. The company continues to respond to these market dynamics with regular upgrades of their web-site that provides significant vehicle data including 40 plus photographs and a video on each vehicle that is on offer. The web-site information is complemented with a wide range of social media marketing campaigns with our main marketing done on on-line platforms. The company's website facilitates various additional features that included Part Exchange valuations and appraisals, and Finance options. All of these features allow prospective customers to progress their interest in the comfort of their home or office. In relation to the sourcing of used vehicles, there has been significant management focus and activity using up to date market analysis information to secure stock vehicles that best reflect the current trends in consumer demand for specific brands and models. The director is satisfied that the rationalisation of the business operations in the past year has reduced the operating costs but still allowed turnover to increase resulting in profitable trading. Further overhead efficiencies are planned in 2024 which will yield further benefits and margin opportunity. The director is assured that the benefits of the changes made and described above will allow the company to continue trading in a profitable manner and establish positive cash flows from trading activities. The director considers that, after making appropriate enquiries, he has reasonable expectation that the company will have adequate financial resources from its trading operations, as well as from the continuation of bank lending and trade facilities from the company's main bank and its main trade finance funders, to meet its financial obligations as they fall due for the foreseeable future. For this reason, the director considers that the going concern basis continues to be an appropriate basis for preparing the financial statements.
Judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Revenue recognition
The turnover represents the invoiced amounts for the sale and servicing of motor vehicles, stated net of value added tax.
Operating leases
Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.
Tangible assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
|
Tenants Improvements |
- |
10%, 20% and 50% Straight line |
|
Office Equipment |
- |
10%, 20% and 33.33% Straight line
|
|
Motor Vehicles |
- |
20% and 33.33% Straight line
|
|
|
|
|
Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.
Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell, excluding VAT. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.
Finance leases and hire purchase contracts
Assets held under finance leases and hire purchase contracts are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.
Financial instruments
A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided.
4.
Employee numbers
The average number of persons employed by the company during the year amounted to
21
(2022:
25
).
5.
Tangible assets
|
Tenants improvements |
Office Equipment |
Motor vehicles |
Total |
|
£ |
£ |
£ |
£ |
Cost |
|
|
|
|
At 1 October 2022 |
112,840 |
184,654 |
141,289 |
438,783 |
Additions |
– |
7,670 |
34,636 |
42,306 |
Disposals |
– |
– |
(
17,917) |
(
17,917) |
|
--------- |
--------- |
--------- |
--------- |
At 30 September 2023 |
112,840 |
192,324 |
158,008 |
463,172 |
|
--------- |
--------- |
--------- |
--------- |
Depreciation |
|
|
|
|
At 1 October 2022 |
94,698 |
138,629 |
23,296 |
256,623 |
Charge for the year |
10,091 |
19,164 |
32,506 |
61,761 |
Disposals |
– |
– |
(
5,076) |
(
5,076) |
|
--------- |
--------- |
--------- |
--------- |
At 30 September 2023 |
104,789 |
157,793 |
50,726 |
313,308 |
|
--------- |
--------- |
--------- |
--------- |
Carrying amount |
|
|
|
|
At 30 September 2023 |
8,051 |
34,531 |
107,282 |
149,864 |
|
--------- |
--------- |
--------- |
--------- |
At 30 September 2022 |
18,142 |
46,025 |
117,993 |
182,160 |
|
--------- |
--------- |
--------- |
--------- |
|
|
|
|
|
Finance leases and hire purchase contracts
Included within the carrying value of tangible assets are the following amounts relating to assets held under finance leases or hire purchase agreements:
|
Motor vehicles |
|
£ |
At 30 September 2023 |
106,807 |
|
--------- |
At 30 September 2022 |
115,404 |
|
--------- |
|
|
6.
Debtors
|
2023 |
2022 |
|
£ |
£ |
Trade debtors |
150,239 |
129,846 |
Amounts owed by associated companies |
– |
73,567 |
Other debtors |
327,233 |
314,025 |
|
--------- |
--------- |
|
477,472 |
517,438 |
|
--------- |
--------- |
|
|
|
7.
Creditors:
amounts falling due within one year
|
2023 |
2022 |
|
£ |
£ |
Bank loans and overdrafts |
114,770 |
181,106 |
Trade creditors |
474,808 |
314,853 |
Amounts owed to associated companies |
47,623 |
– |
Accruals and deferred income |
27,821 |
25,897 |
Social security and other taxes |
344,967 |
362,027 |
Obligations under finance leases and hire purchase contracts |
30,124 |
28,270 |
Other creditors |
832,404 |
990,689 |
|
------------ |
------------ |
|
1,872,517 |
1,902,842 |
|
------------ |
------------ |
|
|
|
Included in Other creditors above are amounts due to funders in respect of new and used car funding amounting to £812,476 (2022 - £936.587). This funding is secured against the corresponding stock units.
Funding amounts received from vehicle stock funding providers reflect the full invoice value of the vehicles purchased for stock, including the VAT element of the invoice, while the vehicles are held in stock at their cost excluding VAT. The vehicle funding is mainly settled on the sale of the corresponding stock vehicle or after 6 months, whichever event comes first, with part settlements made of 5% after 90, 120 and 150 days to certain funders.
8.
Creditors:
amounts falling due after more than one year
|
2023 |
2022 |
|
£ |
£ |
Bank loans and overdrafts |
164,733 |
157,219 |
Obligations under finance leases and hire purchase contracts |
30,994 |
44,301 |
Director loan accounts |
85,559 |
– |
Other creditors |
– |
18,734 |
|
--------- |
--------- |
|
281,286 |
220,254 |
|
--------- |
--------- |
|
|
|
Bank loans and the bank overdraft are secured by way of a floating charge over the assets of the company. In addition, the director,
Mr R. H. Lawson
, has provided a personal guarantee amounting to £200,000 (2022 - £200,000).
9.
Employee benefits
Defined contribution plans
The amount recognised in profit or loss as an expense in relation to defined contribution plans was £
9,140
(2022: £
6,482
).
10.
Called up share capital
Issued, called up and fully paid
|
2023 |
2022 |
|
No. |
£ |
No. |
£ |
Ordinary shares of £ 1 each |
1,250,000 |
1,250,000 |
1,250,000 |
1,250,000 |
Preference shares of £ 1 each |
100,000 |
100,000 |
100,000 |
100,000 |
|
------------ |
------------ |
------------ |
------------ |
|
1,350,000 |
1,350,000 |
1,350,000 |
1,350,000 |
|
------------ |
------------ |
------------ |
------------ |
|
|
|
|
|
The Ordinary and Preference shares have the same rights and rank pari passu in a winding up.
11.
Operating leases
The total future minimum lease payments under non-cancellable operating leases are as follows:
|
2023 |
2022 |
|
£ |
£ |
Not later than 1 year |
68,218 |
68,218 |
Later than 1 year and not later than 5 years |
52,417 |
120,635 |
|
--------- |
--------- |
|
120,635 |
188,853 |
|
--------- |
--------- |
|
|
|
12.
Director's advances, credits and guarantees
Mr R H Lawson has a loan account with a balance due from the company (2022 - due to the company). During the year,
Mr R. H. Lawson
made cash advances to the company, paid company liabilities on behalf of the company and transferred personally owned assets to the company all at market value. Additionally, during the year, the company made cash repayments to the director, paid amounts on his behalf and provided goods and services
to Mr R. H. Lawson
or businesses operated by him personally on commercial terms. The value of these transactions with Mr R H Lawson has been adjusted against the loan account. Following all of these transactions, at the year end, the company was due to pay Mr R. H. Lawson
£85,559 (2022 - Mr R. H. Lawson
was due to pay the company £58,430).
13.
Related party transactions
The company was under the control of Mr R.H. Lawson throughout the current and previous period. Mr R.H. Lawson is the company's managing director and sole shareholder. During the year, the company provided and obtained goods and services, and recharged costs to other business entities in which Mr R.H. Lawson has an interest. All transactions were done at arms length and on commercial terms.