Company registration number 08884731 (England and Wales)
AUTOZONE (UK) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 OCTOBER 2023
AUTOZONE (UK) LIMITED
COMPANY INFORMATION
Directors
J.S. Gardiner
C.A. Gill
Company number
08884731
Registered office
Hilltop Garage
Doncaster Road
Barnsley
S70 3RD
Auditor
GBAC Limited
Old Linen Court
83-85 Shambles Street
Barnsley
South Yorkshire
S70 2SB
AUTOZONE (UK) LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditors' report
4 - 6
Income statement
7
Statement of financial position
8
Statement of changes in equity
9
Statement of cash flows
10
Notes to the financial statements
11 - 21
AUTOZONE (UK) LIMITED
STRATEGIC REPORT
FOR THE PERIOD ENDED 31 OCTOBER 2023
- 1 -

The directors present the strategic report for the period ended 31 October 2023.

Fair review of the business

Turnover for the year is £32,365,123. The directors consider the profit on ordinary activities before taxation to be satisfactory.

 

The group has maintained a reasonable level of turnover and gross profit margin over the year. Current market trends indicate trade to be reasonably stable considering the climate.

 

The directors are confident that the group will continue to maintain and grow turnover and profitability in the future period.

 

The group has at the end of the period, total equity of £1,341,353 and the directors consider the state of affairs of the group to be satisfactory.

Principal risks and uncertainties

 

Risk Management

The company's financial instruments comprise bank balances, trade creditors, trade debtors and loan facilities. The main purpose of these instruments is to raise funds and finance the company operations.

 

Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits. Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.

Key performance indicators

 

2023

2022

2021

 

 

 

 

Turnover

£32,365,123

£12,492,710

£8,741,294

 

 

 

 

Gross profit margin (percent)

14.3%

17.1%

17.4%

 

 

 

 

Profit / (loss) before tax

£172,381

£554,927

£884,990

On behalf of the board

C.A. Gill
Director
8 November 2024
AUTOZONE (UK) LIMITED
DIRECTORS' REPORT
FOR THE PERIOD ENDED 31 OCTOBER 2023
- 2 -

The directors present their annual report and financial statements for the period ended 31 October 2023.

Principal activities

The principal activity of the company continued to be the sale of second hand motor vehicles.

Directors

The directors who held office during the period and up to the date of signature of the financial statements were as follows:

J.S. Gardiner
C.A. Gill
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 company’s auditor 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 company’s auditor is aware of that information.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
C.A. Gill
Director
8 November 2024
AUTOZONE (UK) LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE PERIOD ENDED 31 OCTOBER 2023
- 3 -

The directors are responsible for preparing the annual report 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:

 

 

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.

AUTOZONE (UK) LIMITED
INDEPENDENT AUDITORS' REPORT
TO THE MEMBER OF AUTOZONE (UK) LIMITED
- 4 -
Opinion

We have audited the financial statements of Autozone (UK) Limited (the 'company') for the period ended 31 October 2023 which comprise the income statement, the statement of financial position, the statement of changes in equity, the 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 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 other information comprises the information included in the annual report other than the financial statements and our auditors' report thereon. The directors are 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:

AUTOZONE (UK) LIMITED
INDEPENDENT AUDITORS' REPORT
TO THE MEMBER OF AUTOZONE (UK) LIMITED (CONTINUED)
- 5 -
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 and the directors' 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 directors

As explained more fully in the directors' responsibilities statement, 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 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 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.

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 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.

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

We obtained an understanding of the company and the sector in which it operates to identify laws and regulations that could reasonably be expected to have a direct effect on the financial statements. We obtained our understanding in this regard through discussions with management, application of cumulative audit knowledge and experience of the sector.

We designed our audit procedures to ensure the audit team considered whether there were any indications of non-compliance by the company with those laws and regulations. These procedures included, but were not limited to; a review of general ledger transactions and discussions with management.

We also identified the risks of material misstatement of the financial statements due to fraud. We considered, in addition to the non-rebuttable presumption of a risk of fraud arising from management override of controls, including the potential for management bias identified in relation to the provisions and estimates and and we addressed this by challenging the assumptions and judgements made by management when auditing that significant accounting estimate.

As in all of our audits, we addressed the risk of fraud arising from management override of controls by performing audit procedures which included, but were not limited to: the testing of journals; reviewing accounting estimates for evidence of bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditors/audit-assurance-ethics/auditors-responsibilities-for-the-audit. This description forms part of our auditors' report.

AUTOZONE (UK) LIMITED
INDEPENDENT AUDITORS' REPORT
TO THE MEMBER OF AUTOZONE (UK) LIMITED (CONTINUED)
- 6 -

Other matters which we are required to address

The prior period comparative figures are unaudited.

Mrs Pamela Parker
Senior Statutory Auditor
For and on behalf of GBAC Limited
8 November 2024
Statutory Auditor
Old Linen Court
83-85 Shambles Street
Barnsley
South Yorkshire
S70 2SB
AUTOZONE (UK) LIMITED
INCOME STATEMENT
FOR THE PERIOD ENDED 31 OCTOBER 2023
- 7 -
Period
Year
ended
ended
31 October
30 April
2023
2022
Notes
£
£
Revenue
32,365,123
12,492,710
Cost of sales
(27,737,945)
(10,356,224)
Gross profit
4,627,178
2,136,486
Administrative expenses
(4,744,757)
(1,600,900)
Other operating income
382,445
58,754
Operating profit
264,866
594,340
Investment income
-
0
4
Finance costs
(92,485)
(39,417)
Profit before taxation
172,381
554,927
Tax on profit
4
(64,169)
(98,856)
Profit for the financial period
108,212
456,071

The income statement has been prepared on the basis that all operations are continuing operations.

AUTOZONE (UK) LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT 31 OCTOBER 2023
31 October 2023
- 8 -
31 October 2023
30 April 2022
Notes
£
£
£
£
Non-current assets
Property, plant and equipment
5
1,028,246
821,165
Current assets
Inventories
6
1,956,855
1,522,147
Trade and other receivables
7
1,324,261
1,114,019
Cash and cash equivalents
135,383
288,448
3,416,499
2,924,614
Current liabilities
8
(2,661,381)
(1,566,256)
Net current assets
755,118
1,358,358
Total assets less current liabilities
1,783,364
2,179,523
Non-current liabilities
9
(397,449)
(614,657)
Provisions for liabilities
(44,562)
(19,509)
Net assets
1,341,353
1,545,357
Equity
Called up share capital
10
100
200
Revaluation reserve
229,105
-
0
Capital redemption reserve
100
-
0
Retained earnings
1,112,048
1,545,157
Total equity
1,341,353
1,545,357

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 8 November 2024 and are signed on its behalf by:
C.A. Gill
Director
Company registration number 08884731 (England and Wales)
AUTOZONE (UK) LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 OCTOBER 2023
- 9 -
Share capital
Revaluation reserve
Capital redemption reserve
Retained earnings
Total
Notes
£
£
£
£
£
Balance at 1 May 2021
200
-
0
-
0
1,269,086
1,269,286
Year ended 30 April 2022:
Profit and total comprehensive income
-
-
-
456,071
456,071
Dividends
-
-
-
(180,000)
(180,000)
Balance at 30 April 2022
200
-
0
-
0
1,545,157
1,545,357
Period ended 31 October 2023:
Profit
-
-
-
108,212
108,212
Other comprehensive income:
Revaluation of property, plant and equipment
-
229,105
-
-
229,105
Total comprehensive income
-
229,105
-
108,212
337,317
Dividends
-
-
-
(541,321)
(541,321)
Redemption of shares
10
(100)
-
100
-
0
-
0
Balance at 31 October 2023
100
229,105
100
1,112,048
1,341,353
AUTOZONE (UK) LIMITED
STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 31 OCTOBER 2023
- 10 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
13
(46,818)
708,350
Interest paid
(92,485)
(39,417)
Income taxes paid
(240,734)
(111,864)
Net cash (outflow)/inflow from operating activities
(380,037)
557,069
Investing activities
Purchase of property, plant and equipment
(113,377)
(760,232)
Proceeds from disposal of property, plant and equipment
33,932
-
0
Repayment of loans
257,895
(257,895)
Interest received
-
0
4
Net cash generated from/(used in) investing activities
178,450
(1,018,123)
Financing activities
Repayment of borrowings
956,347
432,928
Repayment of bank loans
(223,852)
240,992
Payment of finance leases obligations
(42,862)
42,862
Dividends paid
(541,321)
(180,000)
Net cash generated from financing activities
148,312
536,782
Net (decrease)/increase in cash and cash equivalents
(53,275)
75,728
Cash and cash equivalents at beginning of period
174,044
98,316
Cash and cash equivalents at end of period
120,769
174,044
Relating to:
Cash at bank and in hand
135,383
288,448
Bank overdrafts included in creditors payable within one year
(14,614)
(114,404)
AUTOZONE (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 OCTOBER 2023
- 11 -
1
Accounting policies
Company information

Autozone (UK) Limited is a private company limited by shares incorporated in England and Wales. The registered office is Hilltop Garage, Doncaster Road, Barnsley, S70 3RD.

1.1
Reporting period

The reporting period for the financial statements is the 18 months to 31 October 2023. The comparative reporting period is the year to 30 April 2022. Comparative amounts presented in the financial statements (including the related notes) are therefore not entirely comparable. The reporting date was charged in order to align with other group companies.

1.2
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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

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.

1.3
Revenue

Revenue 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.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.4
Property, plant and equipment

Property, plant and equipment 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
No depreciation provided
Plant and equipment
20% reducing balance
Fixtures and fittings
20% on cost
IT equipment
20% on cost
Motor vehicles
25% reducing balance

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 credited or charged to profit or loss.

AUTOZONE (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 12 -
1.5
Impairment of non-current assets

At each reporting period end date, the company reviews the carrying amounts of its tangible 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.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.6
Inventories

Inventories are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition.

 

Inventories held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of inventories 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.

1.7
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.

1.8
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with 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.

AUTOZONE (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 13 -
Basic financial assets

Basic financial assets, which include trade and other receivables 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.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

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 company 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 company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including trade and other payables, 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 payables 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 payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

AUTOZONE (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 14 -
Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.9
Equity instruments

Equity instruments issued by the company 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 company.

1.10
Taxation

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

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement 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 company’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 income statement, 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 when the company has 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.

AUTOZONE (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 15 -
1.11
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 non-current 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.

1.12
Retirement benefits

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

1.13
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the statement of financial position as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

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 leases 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.

1.14
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

1.15
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

AUTOZONE (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 OCTOBER 2023
- 16 -
2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are 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.

3
Employees

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

2023
2022
Number
Number
Total
66
75
4
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
37,405
98,856
Adjustments in respect of prior periods
1,711
-
0
Total current tax
39,116
98,856
Deferred tax
Origination and reversal of timing differences
25,053
-
0
Total tax charge
64,169
98,856

On 1 April 2023 the rate of corporation tax increased from 19% to 25%.

AUTOZONE (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 OCTOBER 2023
4
Taxation
(Continued)
- 17 -

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

2023
2022
£
£
Profit before taxation
172,381
554,927
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2022: 19.00%)
43,095
105,436
Tax effect of expenses that are not deductible in determining taxable profit
828
1,917
Adjustments in respect of prior years
1,711
-
0
Effect of change in corporation tax rate
(4,708)
-
0
Permanent capital allowances in excess of depreciation
(1,810)
(7,452)
Other non-reversing timing differences
25,053
-
0
Allowable expenses capitalised
-
0
(1,045)
Taxation charge for the period
64,169
98,856
5
Property, plant and equipment
Freehold land and buildings
Plant and equipment
Fixtures and fittings
IT equipment
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 May 2022
607,035
-
0
246,314
18,843
39,667
911,859
Additions
13,860
57,855
27,755
13,907
-
0
113,377
Disposals
-
0
-
0
-
0
-
0
(39,667)
(39,667)
Revaluation
229,105
-
0
-
0
-
0
-
0
229,105
At 31 October 2023
850,000
57,855
274,069
32,750
-
0
1,214,674
Depreciation and impairment
At 1 May 2022
-
0
-
0
82,938
3,075
4,681
90,694
Depreciation charged in the period
-
0
12,803
79,297
8,315
12,398
112,813
Eliminated in respect of disposals
-
0
-
0
-
0
-
0
(17,079)
(17,079)
At 31 October 2023
-
0
12,803
162,235
11,390
-
0
186,428
Carrying amount
At 31 October 2023
850,000
45,052
111,834
21,360
-
0
1,028,246
At 30 April 2022
607,035
-
0
163,376
15,768
34,986
821,165
AUTOZONE (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 OCTOBER 2023
- 18 -
6
Inventories
2023
2022
£
£
Inventories
1,956,855
1,522,147
7
Trade and other receivables
2023
2022
Amounts falling due within one year:
£
£
Trade receivables
31,653
83,855
Amounts owed by group undertakings
1,242,412
-
0
Other receivables
50,196
1,030,164
1,324,261
1,114,019
8
Current liabilities
2023
2022
£
£
Bank loans and overdrafts
122,604
263,169
Trade payables
592,909
287,319
Corporation tax
110,690
312,308
Other taxation and social security
117,536
62,403
Other payables
1,717,642
641,057
2,661,381
1,566,256

Bank loan balances due within one year totalling £93,783 are secured by personal guarantees given by the directors. A mortgage balance due within one year of £14,206 is secured by personal guarantees of the directors, legal charges over properties held by the company and a debenture over the company's assets.

 

Other payables includes a stock funding loan of £1,389,275 which is secured upon the funded vehicles held in stock.

9
Non-current liabilities
2023
2022
£
£
Bank loans and overdrafts
397,449
580,526
Other payables
-
0
34,131
397,449
614,657

Bank loan balances due after one year totalling £76,000 are secured by personal guarantees given by the directors. A mortgage balance due after one year of £321,449 is secured by personal guarantees of the directors, legal charges over properties held by the company and a debenture over the company's assets.

AUTOZONE (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 OCTOBER 2023
9
Non-current liabilities
(Continued)
- 19 -
Creditors which fall due after five years are as follows:
2023
2022
£
£
Payable by instalments
250,709
261,851
AUTOZONE (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 OCTOBER 2023
- 20 -
10
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100
100
100
100
Ordinary A shares of £1 each
-
25
-
25
Ordinary B shares of £1 each
-
25
-
25
Ordinary C shares of £1 each
-
25
-
25
Ordinary D shares of £1 each
-
25
-
25
100
200
100
200

During the reporting period the company purchased the Ordinary A, B, C and D shares at par.

11
Operating lease commitments
Lessee

Operating lease payments represent rentals payable by the company for certain of its properties. Leases are negotiated for an average term of 5 years and rentals are fixed for an average of 5 years.

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:

2023
2022
£
£
25,938
119,312
12
Parent company

The parent company is Gill & Gardiner Holdings Ltd, whose registered office is Old Linen Court, 83-85 Shambles St, Barnsley S70 2SB.

 

The ultimate controlling parties are Chris Gill and Jon Gardiner by virtue of their controlling interests in Cagill Limted and Investiverse Limited , The registered office of Cagill Limited and Investiverse Limited is Old Linen Court, 83-85 Shambles St, Barnsley S70 2SB.

AUTOZONE (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 OCTOBER 2023
- 21 -
13
Cash (absorbed by)/generated from operations
2023
2022
£
£
Profit for the period after tax
108,212
456,071
Adjustments for:
Taxation charged
64,169
98,856
Finance costs
92,485
39,417
Investment income
-
0
(4)
Gain on disposal of property, plant and equipment
(11,344)
-
Depreciation and impairment of property, plant and equipment
112,813
41,747
Movements in working capital:
Increase in inventories
(434,708)
(670,344)
(Increase)/decrease in trade and other receivables
(468,137)
590,113
Increase in trade and other payables
489,692
152,494
Cash (absorbed by)/generated from operations
(46,818)
708,350
14
Analysis of changes in net debt
1 May 2022
Cash flows
31 October 2023
£
£
£
Cash at bank and in hand
288,448
(153,065)
135,383
Bank overdrafts
(114,404)
99,790
(14,614)
174,044
(53,275)
120,769
Borrowings excluding overdrafts
(1,162,219)
(732,495)
(1,894,714)
Obligations under finance leases
(42,862)
42,862
-
(1,031,037)
(742,908)
(1,773,945)
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