Company registration number 14692508 (England and Wales)
TIA TYRES LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
TIA TYRES LIMITED
COMPANY INFORMATION
Directors
Ms H Pei
(Appointed 27 February 2023)
Mr P J Smith
(Appointed 27 February 2023)
Mr M J Smith
(Appointed 27 February 2023)
Company number
14692508
Registered office
Units B2-B4
Halesfield 14
Telford
Shropshire
TF7 4QR
Auditor
CK Audit
No 4 Castle Court 2
Castlegate Way
Dudley
West Midlands
DY1 4RH
Business address
Units B2-B4
Halesfield 14
Telford
Shropshire
TF7 4QR
TIA TYRES 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
Notes to the financial statements
11 - 15
TIA TYRES LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 1 -

The directors present the strategic report for the year ended 31 March 2024.

Review of the business

The company was newly incorporated on 27th February 2023 and began trading in October 2023, this is the first trading period. The business is the UK tyre sales for the TIA Group. The board of directors is pleased with the first period of trading and expect the company to continue to prosper in the future.

The company’s turnover for the period amounted to £18.82 million. This is in line with our expectations in what has been a very competitive market.

Gross Profit was £2.31 million with a Gross Profit Margin of 12.29%, this is in line with management expectations. The management team continues to monitor costs year on year to ensure profitability remains at the optimum level with service levels remaining very high.

In this financial period, the company has gained momentum to take in to future years and continue to grow.

Principal risks and uncertainties

The business environment in which the company operates continues to be very challenging and competitive pricing across the industry continues to put pressure on margins.

Currency fluctuations remain one of the biggest challenges, this has become more prevalent since the Brexit vote and ongoing negotiations, this is something many small and medium-sized entities (SMEs) are not entirely comfortable with. We have hedged against a sudden depreciation in sterling and have managed to mitigate our risk by being able to rely upon our internal systems and controls, as well as our market knowledge and experience. My own review of our last three years shows just how well we have managed our business, the difficulty’s we have encountered have been such that they required our management team to concentrate on an at time almost hourly basis on exchange rates and market movements.

An Anti – Dumping Duty (ADD) on Chinese Tyre & Bus Radial Tyres has been in operation in Europe since 2018, although this led to great uncertainty in the market this has now stabilised within the market.

We believe that there will be further duties imposed on Chinese products in the future, including Passenger Car Radial Tyres. This will impact the market immensely and could lead to an overall increase in tyre prices.

This had led us to slightly diversify our supplier base, although the large majority of our purchases still do come from China and will continue to do so in the future, we have looked at sourcing products from different markets during the period. This process has led us towards other supply markets and we are confident that this will help our business in the future.

The group has continued to manage the risks presented through close management, good internal communication and planning processes that can sustain the business long into the future.

Key performance indicators

We consider Gross Profit Margin to be the key financial KPI for this business, at 12.29%, we feel this is at an appropriate level for the market and business for the period. This is attributable to cost controls in place for the group.

All other administrative costs have been closely monitored and reviewed throughout the year and have been maintained at an acceptable level.

The directors do not believe that there any non – financial key performance indicators that are relevant.

TIA TYRES LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -

Future Developments

All of our efforts are focused on our core business going forward and growth within the UK market, the core business has continued to trade in a very competitive and challenging market and environment and we will continue to look for growth in the future.

In closing we want to thank all of our stakeholders, especially our employees, who have been key to the growth and success of the group during the period, and we look forward to continuing to involve all of those who have contributed so much to the business growing in their roles and with the business.

On behalf of the board

Mr P J Smith
Director
27 November 2024
TIA TYRES LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -

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

Principal activities

The principal activity of the company was that of tyre and wheel wholesale.

Results and dividends

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

No ordinary dividends were paid. 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:

Ms H Pei
(Appointed 27 February 2023)
Mr P J Smith
(Appointed 27 February 2023)
Mr M J Smith
(Appointed 27 February 2023)
Financial instruments
Liquidity risk

The company manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring the company has sufficient liquid resources to meet the operating needs of the business.

Interest rate risk

The company is exposed to fair value interest rate risk on its fixed rate borrowings and cash flow interest rate risk on floating rate deposits, bank overdrafts and loans. The company uses interest rate derivatives to manage the mix of fixed and variable rate debt so as to reduce its exposure to changes in interest rates.

Foreign currency risk

The company’s principal foreign currency exposures arise from trading with overseas companies. Company policy permits but does not demand that these exposures may be hedged in order to fix the cost in sterling. This hedging activity involves the use of foreign exchange forward contracts.

Auditor

CK Audit were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

TIA TYRES LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 4 -
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.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

Medium-sized companies exemption

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

On behalf of the board
Mr P J Smith
Director
27 November 2024
TIA TYRES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF TIA TYRES LIMITED
- 5 -
Opinion

We have audited the financial statements of TIA Tyres Limited (the 'company') for the year ended 31 March 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity 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.

Opinions on other matters prescribed by the Companies Act 2006

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

TIA TYRES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF TIA TYRES LIMITED (CONTINUED)
- 6 -
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.

Extent to which the audit was considered capable of detecting irregularities, including fraud

We identified and assessed the risks of material misstatement of the financial statements, in respect of irregularities whether due to fraud or error, or non compliance with laws and regulations and then designed and performed audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

We obtained an understanding of the legal and regulatory frameworks that are applicable to the Company by discussion and enquiry with the directors and management team and our general knowledge and experience of the tyre wholesale sector.

 

We focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, and legislation surrounding taxation, import of goods, employment, and health and safety.

TIA TYRES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF TIA TYRES LIMITED (CONTINUED)
- 7 -
Audit response to risks identified

We assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and reviewing correspondence with relevant regulators.

We assessed the susceptibility of the Company’s financial statements to material misstatement, including how fraud might occur. Audit procedures performed included but were not limited to:

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. 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.

Mark Nicholls
Senior Statutory Auditor
For and on behalf of CK Audit
27 November 2024
Chartered Accountants
Statutory Auditor
No 4 Castle Court 2
Castlegate Way
Dudley
West Midlands
DY1 4RH
TIA TYRES LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024
- 8 -
2024
Notes
£
Turnover
18,822,632
Cost of sales
(16,508,145)
Gross profit
2,314,487
Administrative expenses
(1,138,150)
Profit before taxation
1,176,337
Tax on profit
5
(289,266)
Profit for the financial year
887,071

The profit and loss account has been prepared on the basis that all operations are continuing operations.

The notes on pages 11 to 15 form part of these financial statements.

TIA TYRES LIMITED
BALANCE SHEET
AS AT
31 MARCH 2024
31 March 2024
- 9 -
2024
Notes
£
£
Current assets
Stocks
6
10,730,536
Debtors
7
10,116,019
Cash at bank and in hand
199,120
21,045,675
Creditors: amounts falling due within one year
8
(20,157,604)
Net current assets
888,071
Capital and reserves
Called up share capital
10
1,000
Profit and loss reserves
887,071
Total equity
888,071

The notes on pages 11 to 15 form part of these financial statements.

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 27 November 2024 and are signed on its behalf by:
Mr P J Smith
Director
Company registration number 14692508 (England and Wales)
TIA TYRES LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 10 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 27 February 2023
-
0
-
0
-
Year ended 31 March 2024:
Profit and total comprehensive income
-
887,071
887,071
Issue of share capital
10
1,000
-
1,000
Balance at 31 March 2024
1,000
887,071
888,071

The notes on pages 11 to 15 form part of these financial statements.

TIA TYRES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 11 -
1
Accounting policies
Company information

TIA Tyres Limited is a private company limited by shares incorporated in England and Wales. The registered office is Units B2-B4, Halesfield 14, Telford, Shropshire, TF7 4QR.

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.

The company has taken advantage of the reduced disclosure exemptions for subsidiaries as follows:

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 recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

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

1.4
Stocks

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

 

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

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

TIA TYRES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 12 -
1.5
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.6
Financial instruments

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

 

Financial instruments are recognised in the company's 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.

1.7
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.

1.8
Taxation

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

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the 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.

1.9
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

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

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.10
Retirement benefits

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

1.11
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.

TIA TYRES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 13 -
2
Operating profit
2024
Operating profit for the year is stated after charging/(crediting):
£
Exchange gains
(38,670)
Fees payable to the company's auditor for the audit of the company's financial statements
6,500
Operating lease charges
283,828
3
Employees

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

2024
Number
Sales
15
Warehouse
19
Total
34

Their aggregate remuneration comprised:

2024
£
Wages and salaries
507,584
Social security costs
48,236
Pension costs
9,537
565,357
4
Directors' remuneration

No remuneration was paid to the directors.

5
Taxation
2024
£
Current tax
UK corporation tax on profits for the current period
289,266
TIA TYRES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
5
Taxation
(Continued)
- 14 -

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

2024
£
Profit before taxation
1,176,337
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00%
294,084
Tax effect of expenses that are not deductible in determining taxable profit
1,044
Effect of change in corporation tax rate
(5,862)
Taxation charge for the year
289,266
6
Stocks
2024
£
Finished goods and goods for resale
10,730,536
7
Debtors
2024
Amounts falling due within one year:
£
Trade debtors
9,787,483
Unpaid share capital
1,000
Amounts owed by group undertakings
88,347
Prepayments and accrued income
239,189
10,116,019
8
Creditors: amounts falling due within one year
2024
£
Trade creditors
3,823,551
Amounts owed to group undertakings
15,287,235
Corporation tax
289,266
Other taxation and social security
20,921
Other creditors
9,205
Accruals and deferred income
727,426
20,157,604
TIA TYRES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 15 -
9
Retirement benefit schemes
2024
Defined contribution schemes
£
Charge to profit or loss in respect of defined contribution schemes
9,537

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.

10
Share capital
2024
2024
Ordinary share capital
Number
£
Issued and not fully paid
''A' Ordinary Shares of £1 each
900
900
''B' Ordinary Shares of £1 each
100
100
1,000
1,000
11
Ultimate controlling party

The ultimate controlling party is Peter Smith by virtue of his 70% shareholding in the parent company, T.I.A. (GB) Limited.

 

Consolidated financial statements are produced by T.I.A (GB) Limited, the address of the registered office is Units C&D, Halesfield 14, Telford, Shropshire, TF7 4QR.

The following are the parents of the largest and smallest groups in which this company's results are consolidated:

Largest group
T.I.A. (GB) Limited
Smallest group
T.I.A. (GB) Limited
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