Company registration number 10641482 (England and Wales)
Van National Limited
Annual report and financial statements
For the year ended 28 February 2024
Van National Limited
Company information
Directors
Mr G P Williams
Mr R S Allchin
Mr P Matthews
(Appointed 6 April 2023)
Company number
10641482
Registered office
The Glades
Festival Way
Festival Park
Stoke-on-Trent
Staffordshire
ST1 5SQ
Auditor
DJH Audit Limited
The Glades
Festival Way
Festival Park
Stoke-on-Trent
Staffordshire
ST1 5SQ
Van National Limited
Contents
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 24
Van National Limited
Strategic report
For the year ended 28 February 2024
- 1 -

The directors present the strategic report for the year ended 28 February 2024.

Principal activities

Van National Ltd’s principal business is the sale of used Light Commercial Vehicles. We operate a car supermarket style business within the LCV market offering all Brands from nearly new to 70,000 miles.

Review of the business

Investment

During 2023/24 the Business continued to invest in its premises in Stoke-On-Trent completing the final stages of internal works and finishing off the external phases. The decision was taken to seek a new dealer management system, this was chosen and given the green light in February 2024. This obviously will cause major disruption and cost in 2024/2025. However, the new premises and staff platform we have grown in 2023 will now be assisted by this digital investment assisting us towards our targets of growth and GP.

2023/2024 Trading

The company managed growth and additional GP during 2024 even during such a challenging year, turnover was up by 17.4% to £27,370,299.

The supply and distribution problems in the economy continued, day-to-day business and overhead rises were significant especially in direct advertising.

Interest rates rose again this year peaking at 5.25% during this financial year, increasing our stocking charges in 2023/24.

The effect of Brexit and Covid 19 retirees have pushed inflationary costs onto wages and in many cases caused the inability to employ key employees at all during 2023/24, we have seen some slight easing of this in late 2023 and early 2024.

 

Van National Limited
Strategic report (continued)
For the year ended 28 February 2024
- 2 -
Principal risks and uncertainties

The Directors consider that the principal risks and uncertainties faced by the company are the following:

Stock Availability

This is a huge concern, the lack of production of New LCV in 2020, 2021 and 2022, is causing massive shortages in the market, particularly during peak sales months of used LCV.

Interest Rates

The company uses several Stocking Facilities to manage its working capital. We continue to monitor this and ensure we try keep this as low as possible.

Economic Risk

The risk of inflation having an impact on the LCV market. The risk of unrealistic increases in stock and other costs impacting adversely on the competitiveness of the company and its main customers. The risks are monitored by experienced managers, cost control in different departments and our IT facilities.

Finance

Lack of growth caused by the unavailability of capital or loans.

Brand and Reputation

To maintain our position as one of the leading Omni Channel LCV retailers in the UK we must continue to invest in digital marketing and brand awareness across the UK innovating in our website experience, ensuring our current customers and new ones choose Van National when starting their purchase journey. Understanding what our customers are going to require as the future of digital continues and the consumers buying habits alter.

We recognise that the digital world can destroy a reputation very quickly in the new world of customers reviews and Social Media impact.

Staff

The inability to employ skilled employees to prepare vehicles for sale to the consumer. The Directors have and continue to train apprentices to fulfil these roles as the work force ages.

Health Safety and Welfare

The risk that accidents, hazards or incidents are caused by unsafe work practices that may cause injury death to our customers or employees.

 

On behalf of the board

Mr R S Allchin
Director
24 September 2024
Van National Limited
Directors' report
For the year ended 28 February 2024
- 3 -

The directors present their annual report and financial statements for the year ended 28 February 2024.

Results and dividends

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

Ordinary dividends were paid amounting to £178,261 (2023 - £107,000). The directors do not recommend payment of a final dividend.

Directors

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

Mr G P Williams
Mr R S Allchin
Mr P Matthews
(Appointed 6 April 2023)
Statement of directors' responsibilities

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.

Strategic report

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report.

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.

Van National Limited
Directors' report (continued)
For the year ended 28 February 2024
- 4 -
On behalf of the board
Mr R S Allchin
Director
24 September 2024
Van National Limited
Independent auditor's report
To the members of Van National Limited
- 5 -
Opinion

We have audited the financial statements of Van National Limited (the 'company') for the year ended 28 February 2024 which comprise the statement of comprehensive income, the balance sheet, 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 Auditor's 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 auditor's 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.

Van National Limited
Independent auditor's report (continued)
To the members of Van National Limited
- 6 -

Opinions on other matters prescribed by the Companies Act 2006

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

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 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.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities,

including fraud and non-compliance with laws and regulations, was as follows:

Van National Limited
Independent auditor's report (continued)
To the members of Van National Limited
- 7 -

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

To address the risk of fraud through management bias and override of controls, we:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed

procedures which included, but were not limited to:

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

 

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Stacey Parr FCCA
Senior Statutory Auditor
For and on behalf of DJH Audit Limited
7 November 2024
Accountants
Statutory Auditor
The Glades
Festival Way
Festival Park
Stoke-on-Trent
Staffordshire
ST1 5SQ
Van National Limited
Statement of comprehensive income
For the year ended 28 February 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
27,370,299
23,305,333
Cost of sales
(25,423,754)
(21,791,694)
Gross profit
1,946,545
1,513,639
Administrative expenses
(1,114,132)
(1,135,043)
Operating profit
4
832,413
378,596
Interest receivable and similar income
7
473
53
Interest payable and similar expenses
8
(572,153)
(355,982)
Profit before taxation
260,733
22,667
Tax on profit
9
(75,865)
11,920
Profit for the financial year
184,868
34,587
Van National Limited
Balance sheet
As at 28 February 2024
28 February 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
11
297,794
254,861
Current assets
Stocks
12
6,513,256
4,908,808
Debtors
13
607,330
796,980
Cash at bank and in hand
672,016
328,050
7,792,602
6,033,838
Creditors: amounts falling due within one year
14
(7,102,035)
(5,215,315)
Net current assets
690,567
818,523
Total assets less current liabilities
988,361
1,073,384
Creditors: amounts falling due after more than one year
15
(292,500)
(397,500)
Provisions for liabilities
Deferred tax liability
17
31,910
18,540
(31,910)
(18,540)
Net assets
663,951
657,344
Capital and reserves
Called up share capital
20
100
100
Profit and loss reserves
21
663,851
657,244
Total equity
663,951
657,344

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 24 September 2024 and are signed on its behalf by:
Mr G P Williams
Mr R S Allchin
Director
Director
Company registration number 10641482 (England and Wales)
Van National Limited
Statement of changes in equity
For the year ended 28 February 2024
- 10 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 March 2022
100
729,657
729,757
Year ended 28 February 2023:
Profit and total comprehensive income
-
34,587
34,587
Dividends
10
-
(107,000)
(107,000)
Balance at 28 February 2023
100
657,244
657,344
Year ended 28 February 2024:
Profit and total comprehensive income
-
184,868
184,868
Dividends
10
-
(178,261)
(178,261)
Balance at 28 February 2024
100
663,851
663,951
Van National Limited
Statement of cash flows
For the year ended 28 February 2024
- 11 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
26
(619,634)
574,466
Interest paid
(572,153)
(355,982)
Income taxes paid
(470)
(61,095)
Net cash (outflow)/inflow from operating activities
(1,192,257)
157,389
Investing activities
Purchase of tangible fixed assets
(82,964)
(175,674)
Interest received
473
53
Net cash used in investing activities
(82,491)
(175,621)
Financing activities
Proceeds from bank loans
1,901,975
36,503
Repayment of bank loans
(105,000)
(105,000)
Dividends paid
(178,261)
(107,000)
Net cash generated from/(used in) financing activities
1,618,714
(175,497)
Net increase/(decrease) in cash and cash equivalents
343,966
(193,729)
Cash and cash equivalents at beginning of year
328,050
521,779
Cash and cash equivalents at end of year
672,016
328,050
Van National Limited
Notes to the financial statements
For the year ended 28 February 2024
- 12 -
1
Accounting policies
Company information

Van National Limited is a private company limited by shares incorporated in England and Wales. The registered office is The Glades, Festival Way, Festival Park, Stoke-on-Trent, Staffordshire, ST1 5SQ.

 

The principal place of business is Clarence House, Clarence Road, Stoke-on-Trent, Staffordshire, ST3 1AZ.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

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

1.2
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Turnover is measured at the fair value of the consideration received or receivable, after discounts, returns and rebates, excluding value added tax and other sales taxes.

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 despatch 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
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:

Leasehold improvements
2% on cost
Plant and equipment
25% on cost
Fixtures and fittings
25% on cost
Computer equipment
25% on cost
Motor vehicles
24% on cost

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.

Van National Limited
Notes to the financial statements (continued)
For the year ended 28 February 2024
1
Accounting policies
(Continued)
- 13 -
1.5
Impairment of fixed 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).

1.6
Stocks

Stocks are stated at the lower of cost and net realisable value (estimated selling price less costs to complete and sell). Cost includes all costs of purchase and other costs incurred in bringing stock to its present location and condition. Cost is calculated using the first-in, first-out formula. Provision is made for damaged, obsolete and slow-moving stock where appropriate.

1.7
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand.

1.8
Financial instruments

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.

 

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.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

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.

Van National Limited
Notes to the financial statements (continued)
For the year ended 28 February 2024
1
Accounting policies
(Continued)
- 14 -
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 creditors and bank loans, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

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.

Van National Limited
Notes to the financial statements (continued)
For the year ended 28 February 2024
1
Accounting policies
(Continued)
- 15 -
Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The 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.

1.11
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

1.12
Retirement benefits

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

1.13
Share-based payments

Equity-settled share-based payments are measured at fair value at the date of grant by reference to the fair value of the equity instruments granted using the nominal values of shares. The fair value determined at the grant date is expensed on a straight-line basis over the vesting period, based on the estimate of shares that will eventually vest. A corresponding adjustment is made to equity.

1.14
Leases

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.

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.

In the directors' opinion there are no critical judgements or estimates that they have been made aware of in applying company's accounting policies and that have had a significant effect on the amounts recognised in the financial statements.

Van National Limited
Notes to the financial statements (continued)
For the year ended 28 February 2024
- 16 -
3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Van sales
26,522,715
22,568,206
Warranty & commission sales
847,584
737,127
27,370,299
23,305,333
2024
2023
£
£
Other revenue
Interest income
473
53
4
Operating profit
2024
2023
Operating profit for the year is stated after charging:
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
16,500
18,500
Depreciation of owned tangible fixed assets
40,031
47,821
Operating lease charges
166,893
164,216
5
Employees

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

2024
2023
Number
Number
Workshop, mechanics and other direct staff
25
19
Sales
12
13
Accounts and admin
7
9
Directors
2
1
Total
46
42
Van National Limited
Notes to the financial statements (continued)
For the year ended 28 February 2024
5
Employees
(Continued)
- 17 -

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
1,528,455
1,369,347
Social security costs
146,838
147,468
Pension costs
28,561
26,384
1,703,854
1,543,199
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
16,970
8,783
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
473
-
0
Other interest income
-
0
53
Total income
473
53
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
473
-
0
8
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
76,179
69,978
Other interest on financial liabilities
312,807
143,067
388,986
213,045
Other finance costs:
Stocking loan fees
183,167
142,937
572,153
355,982
Van National Limited
Notes to the financial statements (continued)
For the year ended 28 February 2024
- 18 -
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
55,975
-
0
Adjustments in respect of prior periods
6,520
(6,050)
Total current tax
62,495
(6,050)
Deferred tax
Origination and reversal of timing differences
13,370
(5,870)
Total tax charge/(credit)
75,865
(11,920)

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

2024
2023
£
£
Profit before taxation
260,733
22,667
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
65,183
4,307
Tax effect of expenses that are not deductible in determining taxable profit
4,124
2,775
Adjustments in respect of prior years
6,520
(6,050)
Effect of change in corporation tax rate
(2,161)
2,539
Depreciation on assets not qualifying for tax allowances
-
0
22
Tax relief on share options
(2,469)
-
0
Under/(over) provided in prior years
3,168
-
0
Deferred tax adjustments in respect of prior years
1,502
-
0
Superdeduction
(2)
(1,034)
Deferred tax not recognised
-
0
(14,479)
Taxation charge/(credit) for the year
75,865
(11,920)
10
Dividends
2024
2023
£
£
Interim paid
178,261
107,000
Van National Limited
Notes to the financial statements (continued)
For the year ended 28 February 2024
- 19 -
11
Tangible fixed assets
Leasehold improvements
Plant and equipment
Fixtures and fittings
Computer equipment
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 March 2023
186,215
49,516
25,535
45,803
56,950
364,019
Additions
-
0
3,679
-
0
4,840
74,445
82,964
Disposals
-
0
-
0
(874)
(1,353)
-
0
(2,227)
At 28 February 2024
186,215
53,195
24,661
49,290
131,395
444,756
Depreciation and impairment
At 1 March 2023
10,628
31,014
16,836
31,317
19,363
109,158
Depreciation charged in the year
3,690
9,820
1,979
7,635
16,907
40,031
Eliminated in respect of disposals
-
0
-
0
(874)
(1,353)
-
0
(2,227)
At 28 February 2024
14,318
40,834
17,941
37,599
36,270
146,962
Carrying amount
At 28 February 2024
171,897
12,361
6,720
11,691
95,125
297,794
At 28 February 2023
175,587
18,502
8,699
14,486
37,587
254,861
12
Stocks
2024
2023
£
£
Finished goods and goods for resale
6,513,256
4,908,808

The total carrying amount of stocks pledged as security for liabilities is £5,740,493 (2023: £3,536,372).

13
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
270,638
223,652
Unpaid share capital
20
20
Corporation tax recoverable
-
0
6,050
Other debtors
313,626
545,617
Prepayments and accrued income
23,046
21,641
607,330
796,980
Van National Limited
Notes to the financial statements (continued)
For the year ended 28 February 2024
- 20 -
14
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans
16
105,000
105,000
Other borrowings
16
5,340,614
3,438,639
Trade creditors
264,059
621,937
Corporation tax
55,975
-
0
Other taxation and social security
67,305
72,907
Other creditors
1,120,903
880,921
Accruals and deferred income
148,179
95,911
7,102,035
5,215,315

Included in others borrowings are stocking loans of £5,294,071 (2023 - £3,343,777) which are secured against the assets financed.

 

Bank loans of £105,000 (2023 - £105,000) are secured by way of a fixed charge and a floating charge on the assets of the company.

 

Included within other creditors falling due within one year is a directors loan account balance totalling £870,842 (2023 - £870,842) that is secured by a debenture containing fixed and floating charges.

 

15
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans and overdrafts
16
192,500
297,500
Other borrowings
16
100,000
100,000
292,500
397,500

Bank loans of £192,500 (2023 - £297,500) are secured by way of a fixed charge and a floating charge on the assets of the company.

Van National Limited
Notes to the financial statements (continued)
For the year ended 28 February 2024
- 21 -
16
Loans and overdrafts
2024
2023
£
£
Bank loans
297,500
402,500
Other loans
5,440,614
3,538,639
5,738,114
3,941,139
Payable within one year
5,445,614
3,543,639
Payable after one year
292,500
397,500
17
Deferred taxation

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

Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
31,910
18,540
2024
Movements in the year:
£
Liability at 1 March 2023
18,540
Charge to profit or loss
13,370
Liability at 28 February 2024
31,910
18
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
28,561
26,384

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

Contributions totalling £6,304 (2023 - £5,927) were payable to the fund at the balance sheet date and are included in creditors.

Van National Limited
Notes to the financial statements (continued)
For the year ended 28 February 2024
- 22 -
19
Share-based payment transactions
Number of share options
Weighted average exercise price
2024
2023
2024
2023
Number
Number
£
£
Outstanding at 1 March 2023
2
4
1.00
1.00
Exercised
(2)
(2)
1.00
1.00
Outstanding at 28 February 2024
-
0
2
-
0
-
0
Exercisable at 28 February 2024
-
0
-
0
-
0
-
0

The weighted average share price at the date of exercise for share options exercised during the year was £1 (2023 - £1).

The company operates a share option scheme for certain employees. The options are granted at a fixed exercisable price, are exercisable over five years from the date of grant, and expire ten years after the date of grant.

 

The fair value of share options at grant date is based on the nominal value of shares, as the scheme was set up prior to the commencement of trading activities.

 

No expense has been recognised in respect of these share options, as the amount is deemed insignificant to the financial statements. There were no outstanding options as at 28 February 2024.

20
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and not fully paid
of £1 each
100
100
100
100

The ordinary shares are eligible to receive dividends when declared and have full voting rights and full entitlement to return of capital upon winding up or other distribution.

20 ordinary shares of £1 per share were issued but are not fully paid.

21
Profit and loss reserves

The profit and loss account reserves relate to accumulated results of the business, less dividends declared and adjusted for transfers to/from other reserves.

22
Financial commitments, guarantees and contingent liabilities

At the balance sheet date, the company had guaranteed borrowings of related party companies. At 28 February 2024 these borrowings amounted to £345,161 (2023 - £379,573). As at the date of approval of these financial statements, the directors do not anticipate that the guarantees will be called upon.

Van National Limited
Notes to the financial statements (continued)
For the year ended 28 February 2024
- 23 -
23
Operating lease commitments
Lessee

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

2024
2023
£
£
Within one year
166,706
165,932
Between two and five years
427,917
592,881
594,623
758,813
24
Related party transactions

During the year, rent of £120,000 (2023: £80,000) was paid to a company with a common shareholder and director. At the year end, an unsecured balance of £46,543 (2023: £94,862) was due to this company, and is repayable on demand. Interest of £8,319 (2023: 1,830) was charged during the year on this balance.

 

At the year end there is an unsecured non-current balance of £100,000 (2023: £100,471) due to a related individual. Interest of £5,000 (2023: £5,000) was incurred in relation to the balance.

 

At the year end there is an unsecured balance of £870,842 (2023: £870,842) due to a Director. The balance is payable on demand. Interest of £45,607 (2023: £46,195) was charged in relation to the balance.

25
Directors' transactions
Description
% Rate
Opening balance
Amounts repaid
Closing balance
£
£
£
Director Loan Account
2.25
4,568
(4,568)
-
4,568
(4,568)
-
Van National Limited
Notes to the financial statements (continued)
For the year ended 28 February 2024
- 24 -
26
Cash (absorbed by)/generated from operations
2024
2023
£
£
Profit for the year after tax
184,868
34,587
Adjustments for:
Taxation charged/(credited)
75,865
(11,920)
Finance costs
572,153
355,982
Investment income
(473)
(53)
Depreciation and impairment of tangible fixed assets
40,031
47,821
Movements in working capital:
(Increase)/decrease in stocks
(1,604,448)
394,316
Decrease/(increase) in debtors
183,600
(572,021)
(Decrease)/increase in creditors
(71,230)
325,754
Cash (absorbed by)/generated from operations
(619,634)
574,466
27
Analysis of changes in net debt
1 March 2023
Cash flows
28 February 2024
£
£
£
Cash at bank and in hand
328,050
343,966
672,016
Borrowings excluding overdrafts
(3,941,139)
(1,796,975)
(5,738,114)
(3,613,089)
(1,453,009)
(5,066,098)
2024-02-282023-03-01falseCCH SoftwareCCH Accounts Production 2024.200Mr G P WilliamsMr R S AllchinMr P Matthewsfalsefalse106414822023-03-012024-02-2810641482bus:Director12023-03-012024-02-2810641482bus:Director22023-03-012024-02-2810641482bus:Director32023-03-012024-02-2810641482bus:RegisteredOffice2023-03-012024-02-28106414822024-02-28106414822022-03-012023-02-2810641482core:RetainedEarningsAccumulatedLosses2022-03-012023-02-2810641482core:RetainedEarningsAccumulatedLosses2023-03-012024-02-28106414822023-02-2810641482core:LeaseholdImprovements2024-02-2810641482core:PlantMachinery2024-02-2810641482core:FurnitureFittings2024-02-2810641482core:ComputerEquipment2024-02-2810641482core:MotorVehicles2024-02-2810641482core:LeaseholdImprovements2023-02-2810641482core:PlantMachinery2023-02-2810641482core:FurnitureFittings2023-02-2810641482core:ComputerEquipment2023-02-2810641482core:MotorVehicles2023-02-2810641482core:CurrentFinancialInstrumentscore:WithinOneYear2024-02-2810641482core:CurrentFinancialInstrumentscore:WithinOneYear2023-02-2810641482core:Non-currentFinancialInstrumentscore:AfterOneYear2024-02-2810641482core:Non-currentFinancialInstrumentscore:AfterOneYear2023-02-2810641482core:CurrentFinancialInstruments2024-02-2810641482core:CurrentFinancialInstruments2023-02-2810641482core:Non-currentFinancialInstruments2024-02-2810641482core:Non-currentFinancialInstruments2023-02-2810641482core:ShareCapital2024-02-2810641482core:ShareCapital2023-02-2810641482core:RetainedEarningsAccumulatedLosses2024-02-2810641482core:RetainedEarningsAccumulatedLosses2023-02-2810641482core:ShareCapital2022-02-2810641482core:RetainedEarningsAccumulatedLosses2022-02-281064148212023-03-012024-02-28106414822023-02-28106414822022-02-2810641482core:LeaseholdImprovements2023-03-012024-02-2810641482core:PlantMachinery2023-03-012024-02-2810641482core:FurnitureFittings2023-03-012024-02-2810641482core:ComputerEquipment2023-03-012024-02-2810641482core:MotorVehicles2023-03-012024-02-2810641482core:UKTax2023-03-012024-02-2810641482core:UKTax2022-03-012023-02-281064148212022-03-012023-02-281064148222023-03-012024-02-281064148222022-03-012023-02-281064148232023-03-012024-02-281064148232022-03-012023-02-281064148242023-03-012024-02-281064148242022-03-012023-02-2810641482core:LeaseholdImprovements2023-02-2810641482core:PlantMachinery2023-02-2810641482core:FurnitureFittings2023-02-2810641482core:ComputerEquipment2023-02-2810641482core:MotorVehicles2023-02-2810641482core:Share-basedArrangement12023-02-2810641482core:WithinOneYear2024-02-2810641482core:WithinOneYear2023-02-2810641482core:BetweenTwoFiveYears2024-02-2810641482core:BetweenTwoFiveYears2023-02-2810641482bus:PrivateLimitedCompanyLtd2023-03-012024-02-2810641482bus:FRS1022023-03-012024-02-2810641482bus:Audited2023-03-012024-02-2810641482bus:FullAccounts2023-03-012024-02-28xbrli:purexbrli:sharesiso4217:GBP