Registration number:
Phillips (Lisburn) Limited
for the Year Ended 29 February 2024
Phillips (Lisburn) Limited
Company Information
Directors |
Mr T G Phillips Mrs M Phillips |
Company secretary |
Mrs M Phillips |
Registered office |
|
Auditors |
|
Solicitors |
|
Phillips (Lisburn) Limited
Directors' Report for the Year Ended 29 February 2024
The directors present their report and the financial statements for the year ended 29 February 2024.
Directors of the company
The directors who held office during the year were as follows:
Statement of Directors' Responsibilities
The directors acknowledge their responsibilities 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:
• |
select suitable accounting policies and apply them consistently; |
• |
make judgements and accounting estimates that are reasonable and prudent; |
• |
state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and |
• |
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company 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 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.
Required disclosures dealt with in the strategic report
In accordance with the provisions of S414c(11) of the Companies Act 2006, the following matters, otherwise required for inclusion in the Directors’ Report, have been included in the Strategic Report
• Financial instruments incorporating financial risk management objectives and policies, and
• Likely future developments in the business of the Company.
Dividends
The Directors recommended, and paid, a dividend of £38,500 during the year.
Reappointment of auditors
In accordance with section 485 of the Companies Act 2006, a resolution for the re-appointment of Stevenson & Wilson as auditors of the company is to be proposed at the forthcoming Annual General Meeting.
Phillips (Lisburn) Limited
Directors' Report for the Year Ended 29 February 2024
Disclosure of information to the auditors
Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.
Approved and authorised by the
......................................... |
Phillips (Lisburn) Limited
Strategic Report for the Year Ended 29 February 2024
The directors present their strategic report for the year ended 29 February 2024.
Review of the business
The impact that the pandemic had on the vehicle industry was well documented, and it took longer than anticipated for the market to return to stability following this period of volatility. It was really only through the year to February 2024 that the directors felt that market operating conditions had returned to normality.
That being said, high levels of inflation and the resulting squeeze on household incomes might have had the potential to restrict levels of consumer demand, but the directors were pleased that this didn’t seem to materialise.
The Directors are encouraged to be reporting a high increase in vehicle sale volumes which has resulted in increased turnover and gross profit. This is expected to continue into the next financial year.
Overall, the directors are pleased with the results for the year and in the manner in which the Company has conducted its business. They remain committed to engaging openly and fairly with all stakeholders. Consistent senior management, low staff turnover and the cultivation of long-standing customer relationships reflect this commitment and are also key drivers in the Company’s continued success.
Principal risks and uncertainties
The principle risks affecting the Company’s performance are the levels of local business and consumer spending as well as the vehicle manufacturers’ approach to maintaining their dealership networks.
A summary of the key performance indicators is given below: |
|||||
Key performance indicators |
2024 |
2023 |
Variance |
||
£ |
£ |
% |
|||
Turnover |
26,293,871 |
20,832,624 |
26.2% |
||
Gross profit |
2,530,260 |
2,158,618 |
17.2% |
||
Net profit before tax |
1,116,027 |
1,048,873 |
6.4% |
||
Financial instruments
The Company does not have any necessity to engage in any form of hedging activities nor is the utilisation of any other form of financial instrument required.
With a high level of cash resources and no borrowings the Company is not facing any liquidity or cash flow risk.
Approved and authorised by the
......................................... |
Phillips (Lisburn) Limited
Independent Auditor's Report to the Members of Phillips (Lisburn) Limited
Opinion
We have audited the financial statements of Phillips (Lisburn) Limited (the 'company') for the year ended 29 February 2024, which comprise the Profit and Loss Account, Balance Sheet, Statement of Changes in Equity, Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
• | give a true and fair view of the state of the company's affairs as at 29 February 2024 and of its 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 auditor 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 director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were 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 directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. 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.
In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.
Phillips (Lisburn) Limited
Independent Auditor's Report to the Members of Phillips (Lisburn) Limited
Opinion on other matter 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 Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
• |
the Strategic Report and 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 our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Directors' Report.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
• | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
• | the 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 Statement of Directors' Responsibilities [set out on page 2], 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 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.
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 identified the laws and regulations applicable to the company through discussions with directors and key personnel, and from our own knowledge and experience of the automotive industry. 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 taxation legislation, while also giving consideration to data protection regulations, employment law and health and safety legislation. |
• |
The engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations and the team remained alert to the possibility of fraud and non-compliance throughout the audit. |
Phillips (Lisburn) Limited
Independent Auditor's Report to the Members of Phillips (Lisburn) Limited
• |
We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur. We did so through discussions with management as to their assessment of areas where fraud or non-compliance might occur, as well as considering the internal controls in place to mitigate risks of fraud and non-compliance. |
• |
In order to ascertain the extent of compliance with the laws and regulations, we made enquiries of management as to whether there was any actual or potential litigation, we reviewed legal correspondence, we inspected tax correspondence and we performed analytical procedures to identify any unusual or unexpected activity. |
A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
......................................
For and on behalf of
22-30 Broadway Avenue
Co. Antrim
BT43 7AA
Phillips (Lisburn) Limited
Profit and Loss Account for the Year Ended 29 February 2024
Note |
2024 |
2023 |
|
Turnover |
|
|
|
Cost of sales |
( |
( |
|
Gross profit |
|
|
|
Administrative expenses |
( |
( |
|
Other operating income |
|
|
|
Operating profit |
848,217 |
1,000,150 |
|
Other interest receivable and similar income |
|
|
|
Interest payable and similar expenses |
( |
( |
|
Profit before tax |
|
|
|
Tax on profit |
( |
( |
|
Profit for the financial year |
|
|
The above results were derived from continuing operations.
The company has no recognised gains or losses for the year other than the results above.
Phillips (Lisburn) Limited
(Registration number: NI020891)
Balance Sheet as at 29 February 2024
Note |
2024 |
2023 |
|
Fixed assets |
|||
Tangible assets |
|
|
|
Current assets |
|||
Stocks |
|
|
|
Debtors |
|
|
|
Cash at bank and in hand |
|
|
|
|
|
||
Creditors : due within one year |
( |
( |
|
Net current assets |
|
|
|
Total assets less current liabilities |
|
|
|
Provisions for liabilities |
( |
( |
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
35,000 |
35,000 |
|
Retained earnings |
14,733,311 |
13,928,494 |
|
Shareholders' funds |
14,768,311 |
13,963,494 |
Approved and authorised by the
......................................... |
Phillips (Lisburn) Limited
Statement of Cash Flows for the Year Ended 29 February 2024
Note |
2024 |
2023 |
|
Cash flows from operating activities |
|||
Profit for the year |
|
|
|
Adjustments to cash flows from non-cash items |
|||
Depreciation and amortisation |
|
|
|
Finance income |
( |
( |
|
Finance costs |
|
|
|
Income tax expense |
|
|
|
|
|
||
Working capital adjustments |
|||
Increase in stocks |
( |
( |
|
Decrease/(increase) in trade debtors |
|
( |
|
Increase in trade creditors |
|
|
|
Cash generated from operations |
|
|
|
Income taxes paid |
( |
( |
|
Net cash flow from operating activities |
|
|
|
Cash flows from investing activities |
|||
Interest received |
|
|
|
Acquisitions of tangible assets |
( |
( |
|
Net cash flows from investing activities |
|
|
|
Cash flows from financing activities |
|||
Interest paid |
( |
( |
|
Dividends paid |
( |
( |
|
Net cash flows from financing activities |
( |
( |
|
Net increase in cash and cash equivalents |
|
|
|
Cash and cash equivalents at 1 March |
|
|
|
Cash and cash equivalents at 29 February |
9,785,512 |
9,197,300 |
Phillips (Lisburn) Limited
Statement of Changes in Equity for the Year Ended 29 February 2024
Share capital |
Retained earnings |
Total |
|
At 1 March 2023 |
|
|
|
Profit for the year |
- |
|
|
Dividends |
- |
( |
( |
At 29 February 2024 |
|
|
|
Share capital |
Retained earnings |
Total |
|
At 1 March 2022 |
|
|
|
Profit for the year |
- |
|
|
Dividends |
- |
( |
( |
At 28 February 2023 |
35,000 |
13,928,494 |
13,963,494 |
Phillips (Lisburn) Limited
Notes to the Financial Statements for the Year Ended 29 February 2024
General information |
The company is a private company limited by share capital, incorporated in Northern Ireland.
The address of its registered office is:
These financial statements were authorised for issue by the
Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.
Basis of preparation
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
Revenue recognition
Turnover, which excludes value added tax and trade discounts, is measured at the fair value of consideration received or receivable and represents the invoiced value of goods and services supplied. Turnover from the sale of goods is recognised when the Company has completed its performance obligations under the terms of the sale which is typically upon goods delivery and at which the point the risks and rewards associated with the ownership of the goods have passed to the purchaser. Turnover from the rendering of services is recognised on completion of the work, at which point the Company has earned entitlement to the consideration.
Tangible assets
Tangible fixed assets are stated at cost less accumulated depreciation and provision for impairment. Cost includes acquisition price together with directly attributable expenditure associated with bringing the asset to a position suitable for intended use.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
Asset class |
Depreciation method and rate |
Freehold land |
Not depreciated |
Fixtures and equipment |
10 - 20% per year |
Leasehold improvements |
10% per year |
Stock and work in progress
Stocks and work in progress are valued at the lower of cost and net realisable value with provision made for obsolete and slow-moving items. Net realisable value is calculated as expected selling price, less costs to completion. Cost is based on purchase price including related delivery and conversion costs. Raw material stock is valued on a ‘first-in, first-out’ basis.
Phillips (Lisburn) Limited
Notes to the Financial Statements for the Year Ended 29 February 2024
Short-term debtors and creditors
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the income statement in operating expenses.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Taxation
Current tax is recognised as the amount of income tax payable in respect of the profit for the current and past periods. It is calculated using the tax rates that have been enacted or substantively enacted by the reporting date.
Deferred tax is accounted for on all differences arising from the inclusion of items of income and expenditure in taxation computations in periods different from those in which they are included in the financial statements. Deferred tax is calculated using the tax rates that have been enacted or substantively enacted by the reporting date and which are expected to apply to the reversal of the timing difference. Deferred tax assets have not been recognised on the grounds that future reversal and recoverability is uncertain.
Pension scheme
The Company pension scheme is a defined contribution insured scheme operated by a life assurance company and is available to all staff. The assets of the scheme are held separately from those of the Company in an independently administered fund. The premiums payable by the Company are charged in the accounts in the year in which they are paid.
Turnover |
The analysis of the company's revenue for the year from continuing operations is as follows:
2024 |
2023 |
|
Sale of goods |
|
|
Rendering of services |
|
|
|
|
Phillips (Lisburn) Limited
Notes to the Financial Statements for the Year Ended 29 February 2024
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
2024 |
2023 |
|
Wages and salaries |
|
|
Pension contributions to employees personal pension schemes |
|
|
Social security costs |
|
|
|
|
The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:
2024 |
2023 |
|
Directors |
|
|
Administration and support |
|
|
Sales |
|
|
|
|
Directors' remuneration |
The directors' remuneration for the year was as follows:
2024 |
2023 |
|
Remuneration |
|
|
Pension contributions |
|
- |
382,612 |
22,612 |
Operating profit |
Arrived at after charging/(crediting)
2024 |
2023 |
|
Depreciation expense |
|
|
Auditor's remuneration - The audit of the company's annual accounts |
6,500 |
6,000 |
Interest payable and similar expenses |
2024 |
2023 |
|
Interest and charges payable on financing interest |
|
|
Phillips (Lisburn) Limited
Notes to the Financial Statements for the Year Ended 29 February 2024
Taxation |
Tax charged/(credited) in the income statement
2024 |
2023 |
|
Current taxation |
||
UK corporation tax |
|
|
UK corporation tax adjustment to prior periods |
( |
- |
287,903 |
207,255 |
|
Deferred taxation |
||
Arising from origination and reversal of timing differences |
( |
|
Tax expense in the income statement |
|
|
The taxation charge differs from the standard rate of corporation tax in the UK. differences are explained below:
2024 |
2023 |
|
Profit before tax |
|
|
Corporation tax at standard rate |
|
|
Accelerated capital allowances and other timing differences |
- |
( |
Adjustment to deferred tax due to change of tax rate |
( |
|
Adjustment in respect of prior years |
( |
- |
Total tax charge |
|
|
Dividends |
2024 |
2023 |
|||
Equity dividends paid |
|
|
||
Phillips (Lisburn) Limited
Notes to the Financial Statements for the Year Ended 29 February 2024
Tangible assets |
Land and buildings |
Furniture, fittings and equipment |
Total |
|
Cost or valuation |
|||
At 1 March 2023 |
|
|
|
Additions |
- |
|
|
At 29 February 2024 |
|
|
|
Depreciation |
|||
At 1 March 2023 |
|
|
|
Charge for the year |
|
|
|
At 29 February 2024 |
|
|
|
Carrying amount |
|||
At 29 February 2024 |
|
|
|
At 28 February 2023 |
|
|
|
Stocks |
2024 |
2023 |
|
Goods for resale |
|
|
Work in progress |
|
|
|
|
Debtors |
2024 |
2023 |
|
Trade debtors |
|
|
Other debtors |
|
|
Prepayments and accrued income |
|
|
|
|
Phillips (Lisburn) Limited
Notes to the Financial Statements for the Year Ended 29 February 2024
Creditors: due within one year |
2024 |
2023 |
|
Trade creditors |
|
|
Payments on account |
|
|
Other tax and social security |
|
|
Accruals and deferred income |
|
|
Corporation tax |
288,219 |
207,571 |
Other creditors |
|
|
|
|
Provisions for liabilities |
Deferred tax |
Total |
|
At 1 March 2023 |
|
|
Increase (decrease) in existing provisions |
( |
( |
At 29 February 2024 |
|
|
|
Share capital |
Allotted, called up and fully paid shares
2024 |
2023 |
|||
No. |
£ |
No. |
£ |
|
|
|
35,000 |
|
35,000 |
The Company has only one class of ordinary shares. They entitle the holder to full voting rights, dividend entitlement and any repayment of capital.
Commitments |
Capital commitments
There were no commitments at the balance sheet date (2023 - £Nil).
Parent and ultimate parent undertaking |
The directors
Related party transactions |
The balance due from the Directors at the year end totals £15,495 in aggregate (2023: £53,995). It is included within the other debtors’ balance as disclosed in note 12 to these accounts.