Registered number:
FOR THE YEAR ENDED 31 DECEMBER 2023
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TRANS CITY CAR CENTRE LIMITED
COMPANY INFORMATION
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TRANS CITY CAR CENTRE LIMITED
CONTENTS
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TRANS CITY CAR CENTRE LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
We present our strategic report with the financial statements of the company for the year ended 31 December 2023.
The principal activity of the company is that of motor dealing, servicing and associated activities. There was no change in this activity during the year.
The director is pleased with the performance of the company, considering the prevailing market conditions during the year under review. During the year, the company achieved pre-tax profits of £2,418,321 (2022 - £3,226,823). In 2022, demand for new and used cars increased leading to an increase in values. Values of used cars, in particular, reduced as demand cooled in 2023, leading to reduced margins. However, the director managed this fluctuation to mitigate the impact of this and continue to extend and maintain beneficial business relationships with customers.
The principal risks and uncertainties identified by the director of the company relate to factors concerning the overall state of the UK economy, in particular the effects on the motor industry. The global economy also affects the company's ability to import vehicles for resale.
The fluctuations in used car values are monitored so the company can respond to mitigate the risk of stock losses. The company also continues to diversify in order to manage the risks involved in each business sector.
The director considers that the key financial performance indicators are as follows:
Gross profit percentage - The director confirms that the gross profit percentage has decreased to 3.8% (2022 - 6%). The company's net value - The director is pleased to confirm that the net value of the company has increased by £1,635,242. This is due to the company's profitability for the year being reinvested into reserves.
Under section 172 of the Companies Act 2006 the director of the company has a duty to promote the success of the company for the benefit of its members as a whole. While performing this duty, the director discusses and considers the likely long term consequence of any decision that is made. As a Skoda main dealer, the company works hard to foster positive relationships with Skoda and customers for the long term success of the company and these parties. The company wants customers to enjoy the very best motoring experience and make it as affordable as possible. The interests of employees are also important to the director and any decisions made consider them as essential stakeholders of the business both in the short term and long term. The operations of the company can have an impact on the community and environment. The company is based within the ULEZ zone and provides a tool for customers to check whether their vehicle is ULEZ friendly and has a large stock of ULEZ compliant cars to help to promote low emissions motoring. The director ensures the company maintains a reputation for high standards of business conduct and strives to act fairly between all members of company.
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TRANS CITY CAR CENTRE LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
This report was approved by the board on 31 October 2024 and signed on its behalf.
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TRANS CITY CAR CENTRE LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
The director presents his report and the financial statements for the year ended 31 December 2023.
The director is responsible for preparing the Strategic report, the Director's report and the financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the director is required to:
∙select suitable accounting policies for the company's financial statements and then apply them consistently;
∙make judgments and accounting estimates that are reasonable and prudent;
∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The director is 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 to enable him to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The profit for the year, after taxation, amounted to £1,845,242 (2022 - £2,549,843).
Further information on the performance of the company during the year and the company's state of affairs at the balance sheet date is noted within the strategic report on page 1.
During the year dividends were paid totalling £210,000 (2022- £210,000). The director does not recommend the payment of a further dividend.
The director who served during the year was:
Details of movements in fixed assets are set out in the notes to the accounts.
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TRANS CITY CAR CENTRE LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
The director is not aware of any future developments which would have a significant effect on the company.
The company is not involved in any major research and development projects.
The company is a close company within the meaning of S.439 CTA 2010.
The company has not disclosed information in respect of greenhouse gas emissions, energy consumption and energy efficiency action as its energy consumption in the United Kingdom for the year is 40,000kWh or lower.
There have been no significant events affecting the company since the year end.
Under section 487(2) of the Companies Act 2006, Clay Ratnage Strevens & Hills will be deemed to have been reappointed as auditors 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.
This report was approved by the board on
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TRANS CITY CAR CENTRE LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF TRANS CITY CAR CENTRE LIMITED
We have audited the financial statements of Trans City Car Centre Limited (the 'company') for the year ended 31 December 2023, which comprise the Statement of comprehensive income, the Balance sheet, the Statement of cash flows, the Statement of changes in equity and the related notes, 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).
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 United Kingdom, including the Financial Reporting Council'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.
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 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.
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' 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.
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TRANS CITY CAR CENTRE LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF TRANS CITY CAR CENTRE LIMITED (CONTINUED)
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Strategic report and the Director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Strategic report and the Director's report have been prepared in accordance with applicable legal requirements.
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 Director's report.
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TRANS CITY CAR CENTRE LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF TRANS CITY CAR CENTRE LIMITED (CONTINUED)
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 Auditors' 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.
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:
To identify risks of material misstatement due to fraud (“fraud risks”) we assessed events or conditions that could indicate an incentive or pressure to commit fraud or provide an opportunity to commit fraud. Our risk assessment procedures included:
• Obtaining an understanding of the legal and regulatory frameworks applicable to the company and the sector in which they operate. • Obtained an understanding of how the company are complying with those legal and regulatory frameworks by making enquiries to the management of the company’s accounting department, and management itself. • The susceptibility of the company’s financial statements to material misstatement caused by fraud or other irregularities were assessed with the following procedures: o Identifying and assessing the design effectiveness of controls which management have in place to prevent and detect fraud o Understanding how those charged with governance considered and addressed the potential for override of controls and management biases o Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations o Assessing the extent of compliance with the relevant laws and regulations o Assessing the extent to which pressures existed which may have increased the risk of fraudulent revenue recognition Potential fraud risks that had been identified throughout the planning and commencement of the audit were communicated to the audit team. The inherent limitations of audit present an unavoidable risk that we, the auditors, may not have detected some material misstatements within the financial statements despite proper planning and performance of our duties as auditors. Equally, there remains a risk of the non-detection of fraud which could involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. The audit procedures carried out are designed to detect material misstatements within the financial statements, and as such we take no responsibility for preventing non-compliance or fraud 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 Auditors' report.
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TRANS CITY CAR CENTRE LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF TRANS CITY CAR CENTRE LIMITED (CONTINUED)
for and on behalf of
Chartered Accountants & Statutory Auditors
Suite D, The Business Centre
Faringdon Avenue
Essex
RM3 8EN
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TRANS CITY CAR CENTRE LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
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TRANS CITY CAR CENTRE LIMITED
REGISTERED NUMBER: 03254798
BALANCE SHEET
AS AT 31 DECEMBER 2023
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TRANS CITY CAR CENTRE LIMITED
REGISTERED NUMBER: 03254798
BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2023
The financial statements were approved and authorised for issue by the board and were signed on its behalf on
The notes on pages 16 to 29 form part of these financial statements.
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TRANS CITY CAR CENTRE LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
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TRANS CITY CAR CENTRE LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
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TRANS CITY CAR CENTRE LIMITED
STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
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TRANS CITY CAR CENTRE LIMITED
ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 DECEMBER 2023
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TRANS CITY CAR CENTRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Trans City Car Centre Limited is a private company limited by shares, incorporated in England, United Kingdom. The address of the registered office is Suite D, The Business Centre, Faringdon Avenue, Romford, Essex, RM3 8EN. The company's principal place of business is 65-71 Hoe Street, Walthamstow, London, E17 4SA. The company's principal activity continued to be that of motor dealing, servicing and associated activities.
2.Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the company's accounting policies (see note 3).
The financial information in the accounts is rounded to the nearest £1.
The following principal accounting policies have been applied:
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TRANS CITY CAR CENTRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Accounting policies (continued)
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line or reducing balance method.
Depreciation is provided on the following bases:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
Stock is valued at the lower of cost and net realisable value after making due allowance for obsolete and
slow-moving stocks. The stock at the year end includes consignment stock and so a corresponding liability to
the manufacturer has been included within creditors. At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.
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TRANS CITY CAR CENTRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Accounting policies (continued)
The company 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 company's Balance sheet when the company becomes party to the contractual provisions of the instrument.
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TRANS CITY CAR CENTRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Accounting policies (continued)
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
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TRANS CITY CAR CENTRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
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TRANS CITY CAR CENTRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
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TRANS CITY CAR CENTRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
There were no factors that may affect future tax charges.
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TRANS CITY CAR CENTRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
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TRANS CITY CAR CENTRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
The 2023 valuations were made by the director, on an open market value for existing use basis.
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TRANS CITY CAR CENTRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
14.Debtors (continued)
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TRANS CITY CAR CENTRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
A loan of £150,000 is secured against 8 Winton Square, being freehold investment property. The remaining loans are secured by personal all moneys guarantees from W Blackburn, the director, and B Blackburn, a shareholder, totalling £100,000 and £500,000 respectively. An unlimited debenture is held by Lloyds bank over all Trans City Car Centre Limited assets. A legal charge is held by Lloyds bank over the freehold property at 65-71 Hoe Street.
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TRANS CITY CAR CENTRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
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TRANS CITY CAR CENTRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Non-distributable reserves
Profit and loss account
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TRANS CITY CAR CENTRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
The company operates a defined contributions 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 and amounted to £16,750 (2022 - £12,324). Contributions totalling £Nil (2022 - £Nil) were payable to the fund at the reporting date.
During the year the director received advances of £232,407 and credits of £172,600 were repaid during the year. The balance at the year end was £651,298 (2022 - £591,491) and is included within other debtors. The director is charged interest at the official rate of interest.
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