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Registered number: 05082322









Clare James Automotive Limited









Annual Report and Financial Statements

For the Year Ended 31 March 2024

 
Clare James Automotive Limited
 
 
Company Information


Directors
I J Rutter 
J Millington 




Company secretary
S A Richardson



Registered number
05082322



Registered office
The Pinnacle
170 Midsummer Boulevard

Milton Keynes

MK9 1FE




Independent auditors
Hurst Accountants Limited
Chartered Accountants & Statutory Auditors

3 Stockport Exchange

Stockport

Cheshire

SK1 3GG




Bankers
HSBC Bank plc
4 Hardman Square

Spinningfields

Manchester

M3 3EB




Solicitors
Dentons UK MEA LLP
The Pinnacle

170 Midsummer Boulevard

Milton Keynes

MK9 1FE
 
Howes Percival LLP
Bell House
Seebeck Place
Knowhill
Milton Keynes
MK5 8FR





 
Clare James Automotive Limited
 

Contents



Page
Group Strategic Report
 
1 - 3
Directors' Report
 
4 - 5
Independent Auditors' Report
 
6 - 9
Consolidated Statement of Income and Retained Earnings
 
10
Consolidated Balance Sheet
 
11
Company Balance Sheet
 
12 - 13
Consolidated Statement of Changes in Equity
 
14
Company Statement of Changes in Equity
 
15
Consolidated Statement of Cash Flows
 
16 - 17
Consolidated Analysis of Net Debt
 
17
Notes to the Financial Statements
 
18 - 36


 
Clare James Automotive Limited
 
 
Group Strategic Report
For the Year Ended 31 March 2024

Business review
 
The Group’s activities comprise the Lightcliffe Skoda Warrington Retailer and five VWG Trade Parts Specialist businesses.  The directors report that in the year ended 31 March 2024 these businesses generated a group profit before taxation of £404,264 (2023: £840,553).
Whilst customer demand for new and used cars was consistent with the previous year, new car gross margins were adversely impacted by an increase in the Motability content in the sales mix from 33% to 58% and, as expected, there was increased pressure on used car margins.
The VWG Trade Parts Specialist businesses was impacted by reduced demand for parts in both the mechanical and accident repair channels.  The independent repair specialists, who form the core of the mechanical parts channel, experienced reduced footfall and a number have withdrawn from the market.  The reduced supply of parts to accident repairers was a result of fewer accidents during a mild winter and repairers and insurers moving away from genuine parts in order to reduce repair costs.
Future developments
Looking to the future, the businesses continue to be operating in a difficult economic climate despite positive news in respect of inflation, interest rates, energy and fuel costs which impact consumer spending and the costs of operating the business.  However, we are optimistic that new and used car demand will be sustainable.

Principal risks and uncertainties
 
The management of the business and the execution of the Group's strategy is subject to a number of risks. The factors described below highlight risks and uncertainties which affect the Group, but they are not intended to be an exhaustive analysis of all the potential risks which may arise in the ordinary course of business. 
The directors are of the opinion that sufficient internal controls have been implemented to monitor these factors and to enable timely management action to be taken to mitigate the risks.  
Financial and business risks
The key financial risks faced by the Group remain that of interest rate risk, ongoing adequacy of funding and credit risk.  The key business risks faced by the Group remain that of regulatory and compliance risk, competition risk, manufacturer risk, product supply risk, employee risk and information systems risks.
Interest rate risk
The Group is exposed to interest rate risk on its borrowings, and changes in interest rates can impact the cost of servicing this debt. The directors are of the opinion that the increases in Bank of England Base Rate experienced in 2022 and 2023 have now peaked and these rates have been factored into the budgets for 2024.  In light of this, the use of financial instruments to mitigate potential financial exposure would not be appropriate at this time.  
Adequacy of funding
The directors are confident that the current banking and finance facilities are adequate for the Group's anticipated working capital requirements. The Group manages its cash flow on a long term, medium term and daily basis to ensure that there is sufficient liquidity to meet foreseeable day-to-day trading and the long-term requirements of the business, including expected capital investment. Short-term flexibility can be managed by the availability of overdraft facilities. 
 
Page 1

 
Clare James Automotive Limited
 

Group Strategic Report (continued)
For the Year Ended 31 March 2024

Credit risk
The Group has low credit risk in relation to its trade debts. Vehicles are not released to retail customers until cleared funds have been received or confirmation that a customer's application for finance has been accepted and paid out by the finance house. 
Where customers are granted credit terms in respect of fleet vehicle purchases, vehicle repairs and parts, credit checks are carried out and credit limits are set which are reviewed on a regular basis in conjunction with debt ageing and collection experience. 
The directors are satisfied that credit risk is adequately managed, and the level of bad debts is consistent with the nature of the industry. 
Regulatory and compliance risk
The Group is subject to a regulatory compliance risk which can arise from failing to comply with applicable laws, regulations and codes set out by, amongst others, the Financial Conduct Authority ("FCA"), Trading Standards, the Driver & Vehicle Standards Agency (''DVSA''), Information Commissioner's Office ("ICO"), local authorities and the manufacturers it represents. Non-compliance can lead to financial penalties, enforced suspension from sales of finance and insurance products or, in the extreme, closure of parts of the business. 
The Group is fully aware of these risks and its policies are designed to ensure that all members of staff are aware of the risks, which are mitigated by appropriate training and the correct application of policies. With regards to FCA requirements, the Group is an Appointed Representative of Automotive Compliance Limited which is authorised and regulated by the Financial Conduct Authority. The Group also engages an internal Compliance Officer to monitor compliance. 
Competition risk
The Group competes for the sale of new and used vehicles, the performance of repairs, routine maintenance business and the supply of spare parts with other franchised and independent motor retailers, suppliers of parts and internet-based suppliers. 
The principal competitive factors are customer service, product price and brand reputation. Continued investment in people, brands, facilities, and systems enables the Group to maintain its competitive advantage by implementing industry-leading initiatives. 
Manufacturer risk
The Group depends upon the ability of its manufacturer partner to respond to changes in consumer tastes, technological developments, and methods of delivery of products and services. The timing, frequency, and efficiency of managing the new product life cycle can materially affect the Group's business. 
The Group is well aware of the potential reputational and financial impact on retailers of the reputation of its manufacturer partners.  Strategic management of the franchise the Group represents is therefore critical to the Group's success. The directors are not aware of any current circumstances which may jeopardise the Group's current franchise agreement. 
The Group works closely with its manufacturing partner to maintain a mutually beneficial long-term relationship. 
Employee risk
The Group is dependent on all team members, both management and other skilled individuals. The Group's future financial performance depends on its ability to recruit and retain skilled members who embody the Group's culture and values. The Group invests in staff development and career progression opportunities, offering a positive working environment.
 
Page 2

 
Clare James Automotive Limited
 

Group Strategic Report (continued)
For the Year Ended 31 March 2024

Information system risk
The Group is dependent on its information technology and computer systems and those of its manufacturer partners, as any disruption to their operation could have a detrimental effect on the business. The company invests in robust IT infrastructure, implements regular security updates, and follows best practices in data protection and cyber security. A robust business continuity planning process is followed with alternative conduits for data and communications in the event of business disruption.
 

Key performance indicators for the year are set out below:
 


2024
2023
Year-on-year movement %
Turnover (£)
21,875,667
21,958,100
(0.4%)
Gross profit (£)
1,890,131
2,159,047
(12.4%)
Gross profit percentage (%)
8.6%
9.8%

Profit before taxation (£)
404,264
840,553
(51.9%)
Return on sales (%)
1.8%
3.8%

EBITDA
846,629
1,187,019
(32.8%)




New vehicle units sold
512
503
1.8%
Used vehicle retail units sold
318
333
(4.5%)
Labour sales
534,334
567,637
(2.4%)
VWG Trade Parts Specialist business net profit
496,371
689,482
(28.0%)

This report was approved by the board and signed on its behalf.



I J Rutter
Director

Date: 7 November 2024

Page 3

 
Clare James Automotive Limited
 
 
 
Directors' Report
For the Year Ended 31 March 2024

The directors present their report and the financial statements for the year ended 31 March 2024.

Directors' responsibilities statement

The directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 the Group and of the profit or loss of the Group for that period.

 In preparing these financial statements, the directors are required to:


select suitable accounting policies for the Group's financial statements and then apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and the Group and to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Principal activity

The principal activity of the Group and Company is that of a motor vehicle retailer including the sale of new and used vehicles, parts and accessories together with the provision of mechanical and body repair services. 

Results and dividends

The loss for the year, after taxation and minority interests, amounted to £92,107 (2023 - profit £151,073).

Dividends of £Nil (2023: £Nil) were declared during the year. The directors do not recommend the payment of a final dividend.

Directors

The directors who served during the year were:

I J Rutter 
J Millington 

Future developments

The likely future developments in the Group's business are referred to in the Group Strategic Report.
Financial instruments risks
The Group's risks in relation to financial instruments are referred to in the Group Strategic Report.

Page 4

 
Clare James Automotive Limited
 
 
 
Directors' Report (continued)
For the Year Ended 31 March 2024

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company and the Group's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company and the Group's auditors are aware of that information.

Post balance sheet events

On 10 June 2024, the Group completed the sale of a property held within Fixed Assets for total proceeds of £500,000. The net book value of the property at the time of sale was £399,185, and the associated costs of disposal amounted to £9,680. This resulted in a net profit on disposal of £91,135.

Auditors

The auditorsHurst Accountants Limitedwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf.
 





I J Rutter
Director

Date: 7 November 2024

Page 5

 
Clare James Automotive Limited
 
 
 
Independent Auditors' Report to the Members of Clare James Automotive Limited
 

Opinion


We have audited the financial statements of Clare James Automotive Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 March 2024, which comprise the Consolidated Statement of Income and Retained Earnings, the Consolidated Balance Sheet, the Company Balance Sheet, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the Group's and of the parent Company's affairs as at 31 March 2024 and of the Group's profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group 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.


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 Group's or the parent 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.


Page 6

 
Clare James Automotive Limited
 
 
 
Independent Auditors' Report to the Members of Clare James Automotive Limited (continued)


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 ReportOur 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.


Opinion on other matters prescribed by the Companies Act 2006
 

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


the information given in the Group Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Group Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group 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:


adequate accounting records have not been kept by the parent Company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent Company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

As explained more fully in the Directors' Responsibilities Statement set out on page 4, 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 Group's and the parent 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 Group or the parent Company or to cease operations, or have no realistic alternative but to do so.


Page 7

 
Clare James Automotive Limited
 
 
 
Independent Auditors' Report to the Members of Clare James Automotive Limited (continued)


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 Group 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:

We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.
Identifying and assessing potential risks related to irregularities
In identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:
 
The nature of the industry and sector in which the company operates; the control environment and business performance including key drivers for directors' remuneration, bonus levels and performance targets.
The outcome of enquiries of local management and parent company management, including whether management was aware of any instances of non-compliance with laws and regulations, and whether management had knowledge of any actual, suspected, or alleged fraud. 
Supporting documentation relating to the Company's policies and procedures for:
°Identifying, evaluating, and complying with laws and regulations
°Detecting and responding to the risks of fraud
The internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations.
The outcome of discussions amongst the engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.
The legal and regulatory framework in which the Company operates, particularly those laws and regulations which have a direct effect on the financial statements, such as the Companies Act 2006, pensions and tax legislation, or which had a fundamental effect on the operations of the Company, including General Data Protection requirements,and Anti-bribery and Corruption.

Audit response to risks identified
Our procedures to respond to the risks identified included the following:
 
Reviewing the financial statements disclosures and testing to supporting documentation to assess compliance with the provisions of those relevant laws and regulations which have a direct effect on the financial statements.
Discussions with management, including consideration of known or suspected instances of non-compliance with laws and regulations and fraud.
Evaluation and testing of the operating effectiveness of management’s controls designed to prevent and detect irregularities.
Enquiring of management about any actual and potential litigation and claims.
Performing analytical procedures to identify any unusual or unexpected relationships which may indicate risks of material misstatement due to fraud.

Page 8

 
Clare James Automotive Limited
 
 
 
Independent Auditors' Report to the Members of Clare James Automotive Limited (continued)


We have also considered the risk of fraud through management override of controls by:
 
Testing the appropriateness of journal entries and other adjustments. We have used data analytics software to identify accounting transactions which may pose a heightened risk of material misstatement, whether due to fraud or error;Testing the appropriateness of journal entries and other adjustments. 
Challenging assumptions made by management in their significant accounting estimates, and assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and
Evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.
There are inherent limitations in the audit procedures described above, and the further removed non-compliance with laws and regulations are from the events and transactions reflected in the financial statements, the less likely we would become aware of them.  Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.


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.


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 2006Our 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 Auditors' 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.





Helen Besant-Roberts (Senior Statutory Auditor)
for and on behalf of
Hurst Accountants Limited
Chartered Accountants & Statutory Auditors
3 Stockport Exchange
Stockport
Cheshire
SK1 3GG

11 November 2024
Page 9

 
Clare James Automotive Limited
 
 
Consolidated Statement of Income and Retained Earnings
For the Year Ended 31 March 2024

2024
2023
Note
£
£

  

Turnover
 4 
21,875,667
21,958,100

Cost of sales
  
(19,985,536)
(19,799,053)

Gross profit
  
1,890,131
2,159,047

Administrative expenses
  
(1,341,557)
(1,249,647)

Other operating income
 5 
90,000
90,000

Operating profit
 6 
638,574
999,400

Interest receivable and similar income
 10 
2,877
8,877

Interest payable and similar expenses
 11 
(237,187)
(167,724)

Profit before tax
  
404,264
840,553

Tax on profit
 12 
-
-

Profit after tax
  
404,264
840,553

  

  

Retained earnings at the beginning of the year
  
1,938,428
1,787,355

(Loss)/profit for the year attributable to the owners of the parent
  
(92,107)
151,073

Retained earnings at the end of the year
  
1,846,321
1,938,428

Non-controlling interest at the beginning of the year
  
246,647
225,088

Profit for the year attributable to the non-controlling interest
  
496,371
689,480

Other NCI share movements
  
(638,571)
(667,921)

Non-controlling interest at the end of the year
  
104,447
246,647

The notes on pages 18 to 36 form part of these financial statements.

Page 10

 
Clare James Automotive Limited
Registered number: 05082322

Consolidated Balance Sheet
As at 31 March 2024

2024
2023
Note
£
£

Fixed assets
  

Tangible assets
 13 
2,249,346
2,323,785

Fixed asset investments
  
1,410
1,482

Investment property
 15 
1,474,027
1,569,853

  
3,724,783
3,895,120

Current assets
  

Stocks
 16 
2,683,708
1,438,250

Debtors: amounts falling due within one year
 17 
2,260,353
1,617,942

Cash at bank and in hand
 18 
17,792
104,007

  
4,961,853
3,160,199

Creditors: amounts falling due within one year
 19 
(5,117,219)
(2,947,557)

Net current (liabilities)/assets
  
 
 
(155,366)
 
 
212,642

Total assets less current liabilities
  
3,569,417
4,107,762

Creditors: amounts falling due after more than one year
 20 
(1,468,649)
(1,772,687)

Net assets
  
2,100,768
2,335,075


Capital and reserves
  

Called up share capital 
 23 
120,000
120,000

Capital redemption reserve
 24 
30,000
30,000

Profit and loss account
 24 
1,846,321
1,938,428

Equity attributable to owners of the parent Company
  
1,996,321
2,088,428

Non-controlling interests
  
104,447
246,647

  
2,100,768
2,335,075


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 

I J Rutter
Director

Date: 7 November 2024

The notes on pages 18 to 36 form part of these financial statements.

Page 11

 
Clare James Automotive Limited
Registered number: 05082322

Company Balance Sheet
As at 31 March 2024

2024
2023
Note
£
£

Fixed assets
  

Tangible assets
 13 
2,249,346
2,323,785

Fixed asset investments
  
1,410
1,482

Investment Property
 15 
1,474,027
1,569,853

  
3,724,783
3,895,120

Current assets
  

Stocks
 16 
2,683,708
1,438,250

Debtors: amounts falling due within one year
 17 
2,246,170
854,274

Cash at bank and in hand
 18 
12,628
91,950

  
4,942,506
2,384,474

Creditors: amounts falling due within one year
 19 
(5,195,314)
(2,411,474)

Net current liabilities
  
 
 
(252,808)
 
 
(27,000)

Total assets less current liabilities
  
3,471,975
3,868,120

  

Creditors: amounts falling due after more than one year
 20 
(1,468,649)
(1,772,687)

  

Net assets excluding pension asset
  
2,003,326
2,095,433

Net assets
  
2,003,326
2,095,433


Capital and reserves
  

Called up share capital 
 23 
120,000
120,000

Capital redemption reserve
 24 
30,000
30,000

Profit and loss account brought forward
  
1,945,433
1,794,360

Loss/(profit) for the year

  

(92,107)
151,073

Profit and loss account carried forward
  
1,853,326
1,945,433

  
2,003,326
2,095,433


Page 12

 
Clare James Automotive Limited
Registered number: 05082322
    
Company Balance Sheet (continued)
As at 31 March 2024

The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 





I J Rutter
Director
Date: 7 November 2024

The notes on pages 18 to 36 form part of these financial statements.

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements. 

Page 13

 
Clare James Automotive Limited
 

Consolidated Statement of Changes in Equity
For the Year Ended 31 March 2024


Called up share capital
Capital redemption reserve
Profit and loss account
Equity attributable to owners of parent Company
Non-controlling interests
Total equity

£
£
£
£
£
£


At 1 April 2022
120,000
30,000
1,787,355
1,937,355
225,088
2,162,443


Comprehensive income for the year

Profit for the year
-
-
151,073
151,073
689,480
840,553

Payments to non-controlling interest
-
-
-
-
(667,921)
(667,921)
Total comprehensive income for the year
-
-
151,073
151,073
21,559
172,632



At 1 April 2023
120,000
30,000
1,938,428
2,088,428
246,647
2,335,075


Comprehensive income for the year

Profit/(loss) for the year
-
-
(92,107)
(92,107)
496,371
404,264

Payments to non-controlling interest
-
-
-
-
(638,571)
(638,571)
Total comprehensive income for the year
-
-
(92,107)
(92,107)
(142,200)
(234,307)


At 31 March 2024
120,000
30,000
1,846,321
1,996,321
104,447
2,100,768


The notes on pages 18 to 36 form part of these financial statements.

Page 14

 
Clare James Automotive Limited
 

Company Statement of Changes in Equity
For the Year Ended 31 March 2024


Called up share capital
Capital redemption reserve
Profit and loss account
Total equity

£
£
£
£


At 1 April 2022
120,000
30,000
1,794,360
1,944,360


Comprehensive income for the year

Profit for the year
-
-
151,073
151,073



At 1 April 2023
120,000
30,000
1,945,433
2,095,433


Comprehensive income for the year

Loss for the year
-
-
(92,107)
(92,107)


At 31 March 2024
120,000
30,000
1,853,326
2,003,326


The notes on pages 18 to 36 form part of these financial statements.

Page 15

 
Clare James Automotive Limited
 

Consolidated Statement of Cash Flows
For the Year Ended 31 March 2024

2024
2023
£
£

Cash flows from operating activities

Profit for the financial year
404,264
840,553

Adjustments for:

Depreciation of tangible assets
208,055
187,547

Profit on disposal of tangible assets
-
(46,808)

Interest paid
237,187
167,724

Interest received
(2,877)
(8,877)

(Increase)/decrease in stocks
(1,245,458)
538,834

(Increase)/decrease in debtors
(663,756)
37,709

Increase/(decrease) in creditors
1,804,337
(546,432)

Corporation tax received
21,345
-

Amortisation of other fixed asset investment
72
72

Net cash generated from operating activities

763,169
1,170,322


Cash flows from investing activities

Purchase of tangible fixed assets
(133,616)
(253,963)

Sale of tangible fixed assets
-
84,167

Interest received
2,877
8,877

HP interest paid
(8,792)
(8,130)

Net cash from investing activities

(139,531)
(169,049)

Cash flows from financing activities

New secured loans
-
200,000

Repayment of loans
(290,620)
(219,766)

New finance leases
-
255,580

Repayment of finance leases
(86,451)
(340,836)

Dividends paid
-
(100,000)

Interest paid
(228,395)
(159,594)

Payments made to non controlling interests
(638,571)
(667,921)

Net cash used in financing activities

(1,244,037)
(1,032,537)
Page 16

 
Clare James Automotive Limited
 

Consolidated Statement of Cash Flows (continued)
For the Year Ended 31 March 2024


2024
2023

£
£



Net (decrease) in cash and cash equivalents
(620,399)
(31,264)

Cash and cash equivalents at beginning of year
104,007
135,271

Cash and cash equivalents at the end of year
(516,392)
104,007


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
17,792
104,007

Bank overdrafts
(534,184)
-

(516,392)
104,007



Consolidated Analysis of Net Debt
For the Year Ended 31 March 2024





At 1 April 2023
Cash flows
Other non-cash changes
At 31 March 2024
£

£

£

£

Cash at bank and in hand

104,007

(86,215)

-

17,792

Bank overdrafts

-

(534,184)

-

(534,184)

Debt due after 1 year

(1,542,191)

-

252,436

(1,289,755)

Debt due within 1 year

(377,593)

290,620

(252,436)

(339,409)

Finance leases

(322,785)

86,451

-

(236,334)


(2,138,562)
(243,328)
-
(2,381,890)

The notes on pages 18 to 36 form part of these financial statements.

Page 17

 
Clare James Automotive Limited
 
 
 
Notes to the Financial Statements
For the Year Ended 31 March 2024

1.


General information

Clare James Automotive Limited is a private company limited by share capital and incorporated in the United Kingdom.  The Company's registered number is 05082322 and its registered office is The Pinnacle, 170 Midsummer Boulevard, Milton Keynes, MK9 1FE.
The principal activity of the Group and Company is that of a motor vehicle retailer including the sale of new and used vehicles, parts and accessories together with the provision of mechanical and body repair services. 

2.Accounting policies

 
2.1

Basis of preparation of financial statements

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 Group management to exercise judgement in applying the Group's accounting policies (see note 3).

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Income and Retained Earnings and Statement of Cash Flow in these financial statements.

The following principal accounting policies have been applied:

 
2.2

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance Sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Income and Retained Earnings from the date on which control is obtained. They are deconsolidated from the date control ceases.

 
2.3

Going concern

The financial statements have been prepared on a going concern basis.  The following paragraphs set out the basis on which the directors have reached their conclusion.
The Group has a profit before tax of £404,264 
(2023: £840,553) and net assets totalling £2,100,738 (2023: £2,335,075) at 31 March 2024.
The Group currently meets its working capital requirements through its cash balances and credit facilities and monitors its cash flow forecasts for the short, medium and long term on an ongoing basis.  Based on the Group's forecasts and projections the directors believe they have sufficient facilities to trade through the next twelve months.
The directors believe it is appropriate, therefore, to prepare the consolidated financial statements to 31 March 2024 on a going concern basis and the Group and Company will remain solvent in the twelve months after the date of approval of the financial statements.

Page 18

 
Clare James Automotive Limited
 
 
 
Notes to the Financial Statements
For the Year Ended 31 March 2024

2.Accounting policies (continued)

 
2.4

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Revenue is measured based on the consideration specified in a contract with a customer. Revenue is recognised by the Group when it transfers control over a product or service to a customer.
Revenue is measured at invoice price, excluding value added taxes, and principally comprises external vehicle sales, parts, servicing and bodyshop sales. Vehicle and parts sales are recognised when control over the vehicles or parts have been transferred to the customer. This is generally at the time of delivery to the customer. Service and bodyshop sales are recognised in-line with the work performed.
The subsidiary acts as an agent, and receives commission, for the supply of parts on behalf of Volkswagen Group United Kingdom. Commission income is recognised within revenue in the period in which the related product is sold and receipt of payment can be assured.

 
2.5

Operating leases: the Group as lessor

Rental income from operating leases is credited to profit or loss on a straight-line basis over the lease term.

Amounts paid and payable as an incentive to sign an operating lease are recognised as a reduction to income over the lease term on a straight-line basis, unless another systematic basis is representative of the time pattern over which the lessor's benefit from the leased asset is diminished.

 
2.6

Operating leases: the Group as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

 
2.7

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.8

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

Page 19

 
Clare James Automotive Limited
 
 
 
Notes to the Financial Statements
For the Year Ended 31 March 2024

2.Accounting policies (continued)

 
2.9

Pensions

Defined contribution pension plan

The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Group in independently administered funds.

 
2.10

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Freehold property
-
50 years straight line
Leasehold improvements
-
5 - 10 years straight line
Plant and machinery
-
10 years straight line
Motor vehicles
-
3 - 5 years straight line
Fixtures and fittings
-
5 -10 years straight line
Computer equipment
-
3 - 5 years straight line
Freehold land
-
Not depreciated

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.

 
2.11

Investment property

Investment property is carried at fair value determined annually by external valuers and derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset. No depreciation is provided. Changes in fair value are recognised in profit or loss.

 
2.12

Fixed asset investments

Investments are measured at cost less accumulated impairment.

Page 20

 
Clare James Automotive Limited
 
 
 
Notes to the Financial Statements
For the Year Ended 31 March 2024

2.Accounting policies (continued)

 
2.13

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet 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.

Vehicles on consignment from manufacturers that are subject to interest or other charges are included in stock at cost when there has been a substantial transfer of the risks and rewards of ownership. The associated liability is recorded in creditors. 

 
2.14

Debtors

Short-term debtors are measured at transaction price, less any impairment. 

 
2.15

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours.

In the Consolidated Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.

 
2.16

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.17

Financial instruments

The Group has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

Basic financial assets

Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The Group's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.


 

Page 21

 
Clare James Automotive Limited
 
 
 
Notes to the Financial Statements
For the Year Ended 31 March 2024

2.Accounting policies (continued)


2.17
Financial instruments (continued)

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting date. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

Financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instruments any contract that evidences a residual interest in the assets of the Group after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other payables, bank loans, other loans and loans due to fellow group companies are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.

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

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Group transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Group will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

Financial liabilities are derecognised when the Group's contractual obligations expire or are discharged or cancelled.

Page 22

 
Clare James Automotive Limited
 
 
 
Notes to the Financial Statements
For the Year Ended 31 March 2024

3.


Judgements in applying accounting policies and key sources of estimation uncertainty

Preparation of the financial statements requires management to make significant judgements, estimates and assumptions that affect the amounts reported for assets and liabilities at the balance sheet date and amounts reported for revenues and expenses during the year. The nature of estimation means that actual outcomes could be different from those estimates. The items in the financial statements where these judgements and estimates have been made include:
Investment property - Judgement
The fair value of investment properties is determined at each reporting date. Management has applied judgement in estimating the fair value of the property due to the nature of the property market and economic conditions. The fair value is determined by independent external valuers or by the company’s directors using market data and comparable transactions. The group has investment property with a carrying value of £1,474,027 (2023: £1,569,853)
Stock provison - Estimate
Management reviews the stock valuation using third-party data. Provision for impairment is made where net realisable value is less than the cost based on best estimates by the management. As at 31 March 2024, the value of stock net of provision was £2,683,708 (2023: £1,370,015).


4.


Turnover

An analysis of turnover by class of business is as follows:


2024
2023
£
£

Sale of vehicles, parts and accessories
21,258,783
21,236,368

Commissions receivable
616,884
721,732

21,875,667
21,958,100


All turnover arose within the United Kingdom.


5.


Other operating income

2024
2023
£
£

Net rents receivable
90,000
90,000


Page 23

 
Clare James Automotive Limited
 
 
 
Notes to the Financial Statements
For the Year Ended 31 March 2024

6.


Operating profit

The operating profit is stated after charging:

2024
2023
£
£

Operating lease rentals
205,469
207,160


7.


Auditors' remuneration

2024
2023
£
£

Fees payable to the Company's auditors for the audit of the consolidated and parent Company's financial statements
15,040
15,070

 
Fees payable to the Group's auditor and its associates in respect of:

Taxation compliance services
3,835
3,850


8.


Employees

Staff costs, including directors' remuneration, were as follows:


Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£


Wages and salaries
3,318,841
3,129,767
1,055,258
1,049,788

Social security costs
303,811
292,263
95,009
95,873

Cost of defined contribution scheme
113,658
120,614
44,420
59,876

3,736,310
3,542,644
1,194,687
1,205,537


The average monthly number of employees, including the directors, during the year was as follows:


        2024
        2023
            No.
            No.







Apprentices and technicians
8
7



Productive
56
52



Support
63
63

127
122

Page 24

 
Clare James Automotive Limited
 
 
 
Notes to the Financial Statements
For the Year Ended 31 March 2024

9.


Directors' remuneration

2024
2023
£
£

Directors' emoluments
72,783
66,223

Group contributions to defined contribution pension schemes
17,400
17,400

90,183
83,623


During the year retirement benefits were accruing to 1 director (2023 - 1) in respect of defined contribution pension schemes.


10.


Interest receivable

2024
2023
£
£


Other interest receivable
2,877
8,877


11.


Interest payable and similar expenses

2024
2023
£
£


Bank interest payable
208,000
103,985

Other loan interest payable
20,395
55,609

Finance leases and hire purchase contracts
8,792
8,130

237,187
167,724

Page 25

 
Clare James Automotive Limited
 
 
 
Notes to the Financial Statements
For the Year Ended 31 March 2024

12.


Taxation


2024
2023
£
£


Total current tax
-
-

Total deferred tax
 
-
 
-


Taxation on profit on ordinary activities
-
-

Factors affecting tax charge for the year

The tax assessed for the year is lower than (2023 - lower than) the standard rate of corporation tax in the UK of 25% (2023 - 19%). The differences are explained below:

2024
2023
£
£


Profit on ordinary activities before tax
404,264
840,553


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 19%)
101,066
159,705

Effects of:


Non-tax deductible amortisation of goodwill and impairment
-
14

Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
45
(280)

Capital allowances for year in excess of depreciation
25,902
(16,979)

Utilisation of tax losses
-
(11,459)

Movement in deferred tax not recognised
(2,920)
-

Income from subsidiary taxable on other partners
(124,093)
(131,001)

Total tax charge for the year
-
-


Factors that may affect future tax charges

The company has trading losses of £428,924 (2023: £448,768) available to carry forward and offset against future taxable profits. These losses have not been recognised as a deferred tax asset in the financial statements.

Page 26

 
Clare James Automotive Limited
 
 
 
Notes to the Financial Statements
For the Year Ended 31 March 2024

13.


Tangible fixed assets

Group and Company






Freehold property
Plant and machinery
Motor vehicles
Fixtures and fittings
Computer equipment
Total

£
£
£
£
£
£



Cost


At 1 April 2023
2,506,560
423,618
290,507
144,104
421,814
3,786,603


Additions
66,579
36,554
20,858
474
9,151
133,616



At 31 March 2024

2,573,139
460,172
311,365
144,578
430,965
3,920,219



Depreciation


At 1 April 2023
608,638
315,045
87,655
131,645
319,835
1,462,818


Charge for the year
76,103
30,626
66,312
4,867
30,147
208,055



At 31 March 2024

684,741
345,671
153,967
136,512
349,982
1,670,873



Net book value



At 31 March 2024
1,888,398
114,501
157,398
8,066
80,983
2,249,346



At 31 March 2023
1,897,922
108,573
202,852
12,459
101,979
2,323,785

The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:


2024
2023
£
£



Motor vehicles
135,770
169,586

Page 27

 
Clare James Automotive Limited
 
 
 
Notes to the Financial Statements
For the Year Ended 31 March 2024

14.


Fixed asset investments

Group





Other fixed asset investments

£



Cost or valuation


At 1 April 2023
3,602



At 31 March 2024

3,602



Impairment


At 1 April 2023
2,120


Charge for the period
72



At 31 March 2024

2,192



Net book value



At 31 March 2024
1,410



At 31 March 2023
1,482

Page 28

 
Clare James Automotive Limited
 
 
 
Notes to the Financial Statements
For the Year Ended 31 March 2024
Company





Other fixed asset investments

£



Cost or valuation


At 1 April 2023
3,602



At 31 March 2024

3,602



Impairment


At 1 April 2023
2,120


Charge for the period
72



At 31 March 2024

2,192



Net book value



At 31 March 2024
1,410



At 31 March 2023
1,482

Page 29

 
Clare James Automotive Limited
 
 
 
Notes to the Financial Statements
For the Year Ended 31 March 2024

15.


Investment property

Group and Company


Freehold investment property

£



Valuation


At 1 April 2023
1,569,853


Deficit on revaluation
(95,826)



At 31 March 2024
1,474,027

The 2024 valuations were made by the directors, on an open market value for existing use basis.



If the Investment properties had been accounted for under the historic cost accounting rules, the properties would have been measured as follows:

2024
2023
£
£


Historic cost
1,841,199
1,841,199

Accumulated depreciation and impairments
(391,580)
(368,919)

1,449,619
1,472,280


16.


Stocks

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Parts
88,289
62,217
88,289
62,217

Vehicles
2,595,419
1,376,033
2,595,419
1,376,033

2,683,708
1,438,250
2,683,708
1,438,250


The difference between purchase price or production cost of stocks and their replacement cost is not material.

Vehicles include consignment stock of £1,310,031 (2023: £345,833).
At the reporting date, the company has made a provision for obsolete and slow-moving inventory amounting to £133,971
 (2023: £63,348)

Page 30

 
Clare James Automotive Limited
 
 
 
Notes to the Financial Statements
For the Year Ended 31 March 2024

17.


Debtors

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£


Trade debtors
1,151,295
734,254
663,568
283,074

Amounts owed by group undertakings
-
-
845,823
186,400

Other debtors
667,311
412,911
424,241
48,026

Prepayments and accrued income
441,747
449,432
312,538
315,429

Tax recoverable
-
21,345
-
21,345

2,260,353
1,617,942
2,246,170
854,274



18.


Cash and cash equivalents

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Cash at bank and in hand
17,792
104,007
12,628
91,950

Less: bank overdrafts
(534,184)
-
(545,088)
-

(516,392)
104,007
(532,460)
91,950


Page 31

 
Clare James Automotive Limited
 
 
 
Notes to the Financial Statements
For the Year Ended 31 March 2024

19.


Creditors: Amounts falling due within one year

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Bank overdrafts
534,184
-
545,088
-

Bank loans
339,409
377,593
339,409
377,593

Trade creditors
3,402,560
1,677,342
3,273,536
1,587,548

Amounts owed to group undertakings
-
-
708,307
-

Other taxation and social security
257,000
194,238
96,807
30,737

Obligations under finance lease and hire purchase contracts
57,440
92,289
57,440
61,686

Other creditors
61,606
16,326
13,093
6,278

Accruals and deferred income
465,020
589,769
161,634
347,632

5,117,219
2,947,557
5,195,314
2,411,474


Trade creditors include amounts due under vehicle finance arrangements of £2,610,604 (2023: £1,249,911) effectively secured against the relevant vehicle stock.
 
Bank overdraft facilities are provided by HSBC Bank plc and any borrowings are secured by:
 
•  Debentures comprising fixed and floating charges over the assets and undertakings of Clare James     Automotive Limited and Clare James Trade Parts LLP.
•  Unlimited composite company cross-guarantee given by Clare James Automotive Limited and Clare James    Trade Parts LLP to secure all liabilities to each other.
•  Legal charges over freehold properties at Winwick Road Warrington WA2 8QF and Shay Syke, Halifax,    HX1 2ND.
Obligations under finance lease and hire purchase contracts are secured against the assets to which they relate.


20.


Creditors: Amounts falling due after more than one year

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Bank loans
1,289,755
1,542,191
1,289,755
1,542,191

Net obligations under finance leases and hire purchase contracts
178,894
230,496
178,894
230,496

1,468,649
1,772,687
1,468,649
1,772,687


Obligations under finance lease and hire purchase contracts are secured against the assets to which they relate.

Page 32

 
Clare James Automotive Limited
 
 
 
Notes to the Financial Statements
For the Year Ended 31 March 2024

21.


Loans


Analysis of the maturity of loans is given below:


Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Amounts falling due within one year

Bank loans
339,409
377,593
339,409
377,593

Amounts falling due 1-2 years

Bank loans
348,176
368,406
348,176
368,406

Amounts falling due 2-5 years

Bank loans
726,945
1,008,225
726,945
1,008,225

Amounts falling due after more than 5 years

Bank loans
214,634
165,560
214,634
165,560

1,629,164
1,919,784
1,629,164
1,919,784


HSBC provided a facility under the Coronavirus Business Interruption scheme amounting to £500,000. The facility is repayable in 54 monthly installments commencing November 2022. Interest is payable at 3.99% above the Bank of England Base rate.
Included in bank loans due within one year are loans of:
• £308,144 (2023: £362,593) due to HSBC Bank plc which are secured against the assets to which they relate;
• £11,042 (2023: £15,000) due to Volkswagen Bank GmbH which are secured by existing Legal and General charges.

Included in bank loans due after more than one year are loans of:
• £1,277,477 (2023: £1,499,691) due to HSBC Bank plc secured against the assets to which they relate
• £42,500 (2022: £57,513) due to Volkswagen Bank GmbH  secured by existing Legal and General charges.
All Volkswagen Bank GmbH loan securities are governed by a Deed of Priority between (1) Clare James Automotive Limited, (2) Clare James  Trade Parts LLP, (3) HSBC  Bank  plc, (4) Volkswagen Bank GmbH trading as Volkswagen Bank United Kingdom Branch and (5) Volkswagen Financial Services (UK) Limited.
The loans due to HSBC Bank plc are repayable by monthly instalments and bear interest at 1.62% above Bank of England Base Rate. The loans due to Volkswagen Bank GmbH are repayable by monthly instalments and bear interest at 2.16% and 2.36% over Finance House Base Rate or such other rate as may be determined by Volkswagen Bank GmbH.

Page 33

 
Clare James Automotive Limited
 
 
 
Notes to the Financial Statements
For the Year Ended 31 March 2024

22.


Hire purchase and finance leases


Minimum lease payments under hire purchase fall due as follows:

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Within one year
58,291
107,770
58,291
75,965

Between 1-5 years
123,667
201,105
123,667
201,105

181,958
308,875
181,958
277,070


23.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



76,500 (2023 - 76,500) Ordinary 'A' shares of £1.00 each
76,500
76,500
43,500 (2023 -43,500) Ordinary 'B' shares of £1.00 each
43,500
43,500

120,000

120,000

The shares rank pari passu in all respects, meaning they carry equal rights to dividends, voting, and capital distributions, including on a winding up of the company, without any preference or priority between them.



24.


Reserves

Capital redemption reserve

The capital redemption reserve is a non-distributable reserve into which amounts are transferred following the redemption or purchase of a company's own shares. 

Profit and loss account

The profit and loss account includes all current and prior period profit and losses. 


25.


Pension commitments

The Group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Group in an independently administered fund. The pension cost charge represents contributions payable by the Group to the fund and amounted to £113,658 (2023: £120,614). Contributions totalling £17,633 (2023: £15,914) were payable to the fund at the balance sheet date.

Page 34

 
Clare James Automotive Limited
 
 
 
Notes to the Financial Statements
For the Year Ended 31 March 2024

26.


Commitments under operating leases

At 31 March 2024 the Group and the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:


Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Not later than 1 year
218,307
213,352
2,168
2,467

Later than 1 year and not later than 5 years
523,072
570,921
4,777
5,972

Later than 5 years
194,994
180,723
-
-

936,373
964,996
6,945
8,439


27.


Future operating lease payments receivable

At 31 March 2023, the Group had future minimum lease payments receivable under non-cancellable operating leases as follows:


2024
2023
£
£



Not later than 1 year
90,000
90,000

Later than 1 year and not later than 5 years
360,000
360,000

Later than 5 years
60,000
150,000

510,000
600,000


28.


Related party transactions

Key Management:
Total remuneration payable to personnel considered to be key management in the year was £90,183 (2023: £83,623).
Related Party Loans:
The company provided a new loan to a company under common control during the year. The loan amount was £375,000. It is unsecured, bears no interest, and has no fixed terms for repayment.  The full amount remains outstanding at the year end and is included in Other Debtors..
At the year end £48,026 (2023: £48,026) was due from a company under common control and is included within other debtors. This loan is unsecured, bears no interest, and has no fixed terms for repayment.
During the year, the company paid remuneration to close family members of a director of £67,778.

Page 35

 
Clare James Automotive Limited
 
 
 
Notes to the Financial Statements
For the Year Ended 31 March 2024

29.


Post balance sheet events

On 10 June 2024, the Group completed the sale of a property held within Fixed Assets for total proceeds of £500,000. The net book value of the property at the time of sale was £399,185, and the associated costs of disposal amounted to £9,680. This resulted in a net profit on disposal of £91,135.


30.


Controlling party

The ultimate controlling party of the group is I J Rutter, by virtue of his majority shareholding.

 
Page 36