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COMPANY REGISTRATION NUMBER: 00662809
Kent Auto Panels Limited
Financial Statements
31 March 2024
Kent Auto Panels Limited
Financial Statements
Period from 1 January 2023 to 31 March 2024
Contents
Page
Strategic report
1
Directors' report
3
Independent auditor's report to the members
5
Income statement
9
Statement of comprehensive income
10
Statement of financial position
11
Statement of changes in equity
12
Notes to the financial statements
13
Kent Auto Panels Limited
Strategic Report
Period from 1 January 2023 to 31 March 2024
Introduction The Directors present their strategic report for the extended 15-month financial year ended 31 March 2024. This period has seen substantial changes and challenges, as we adapted to evolving market conditions and implemented significant operational adjustments. Business review 2023/24 has been a pivotal period for KAP, marked by transitions, market challenges, and operational refinements. Despite the complexities of the past year, we remain committed to sustainable growth and long-term stability. The key developments throughout the year consist of the below: Transition from Nissan to Omoda and Jaecoo: In October 2023, we ceased selling Nissan vehicles and launched the Omoda and Jaecoo brands. This shift required investment in a new showroom and additional operational costs, particularly in early 2024. We retained our full sales team during the transition, incurring increased staffing expenses. Used Vehicle Operations: The used car division achieved strong sales volumes, though tighter margins persisted due to rising acquisition costs and the normalisation of depreciation rates. These factors underscore the importance of disciplined stock acquisition and pricing strategies. Aftersales Focus: Our aftersales department remains a cornerstone of our business, serving customers of Ford, Renault, Dacia, and legacy Nissan vehicles. Despite rising costs, including parts delays that affected workshop efficiency, we implemented a higher labour rate to partially offset these challenges. Parts Write-Off: As part of a review of legacy operations, we wrote off parts inventory linked to previously closed sites, streamlining our balance sheet and ensuring a more accurate representation of current assets. Energy Costs: Energy rates increased by more than 50% compared to 2022, significantly impacting operational costs. To mitigate volatility, we transition to a yearly fixed energy tariff, providing stability while retaining the flexibility to switch if better rates become available. Principal risks and uncertainties KAP faces various risks categorised as financial, trading, and operational. Financial Risk: The rise in energy rates has added significant pressure to operating expenses. While the new yearly fixed tariff mitigates short-term volatility, ongoing monitoring remains critical. Furthermore, industry-wide scrutiny regarding finance commission disclosures has led to a few information requests. We are addressing these inquiries proactively to maintain compliance and trust. Trading Risk: The introduction of Omoda and Jaecoo presents opportunities but also challenges as we establish these brands in a competitive market. In addition, margins in the used car market have tightened due to rising acquisition costs and normalising depreciation rates. Strategic stock management is essential to navigate these pressures. Operational Risk: Supply chain disruptions continue to impact parts availability, reducing workshop efficiency and customer satisfaction. This, along with, increased costs across labour, consumables, and operational expenses require continuous reviews of pricing and efficiency measures. Strategic Responses To address these challenges, we have implemented several strategies: Enhancing Efficiency: Streamlining workshop operations to maximise throughput despite parts delays. Along with, implementing a slightly higher labour rate to offset rising costs. Focusing on Customer Retention: Strengthening our service plan and warranty offerings to maintain customer loyalty. Building New Brand Awareness: Investing in marketing and customer engagement for Omoda and Jaecoo to establish a strong market presence. Mitigating Energy Costs: Transitioning to a yearly fixed energy tariff to reduce cost volatility and improve predictability. Addressing Industry Concerns: Proactively managing inquiries related to finance commission disclosures to ensure compliance. Financial key performance indicators Turnover and Gross Margin: Our used car and aftersales operations remain central to revenue generation, with pricing adjustments made to account for rising costs. Net Profit Performance: Despite transitional costs, we anticipate a positive outlook driven by strategic cost management and new revenue streams from Omoda and Jaecoo. Future Outlook The Directors are optimistic about the company's prospects despite the challenges faced during this transitional period. Key areas of focus for the coming year include; maximising the potential of Omoda and Jaecoo, by establishing the brands as key players in our portfolio through targeted marketing and sales strategies. Strengthening used vehicle operations, including the enhancement of stock acquisition strategies to navigate tightening margins effectively. Optimising aftersales, by improving workshop efficiency and customer satisfaction despite supply chain disruptions. Finally exploring Sustainable Energy Solutions, through the assessment of renewable energy options to further reduce costs and improve environmental sustainability. The Directors remain confident in KAP's ability to adapt, innovate, and thrive in a dynamic market environment.
This report was approved by the board of directors on 6 January 2025 and signed on behalf of the board by:
Dr A J Furneaux
Director
Registered office:
Shorncliffe Motor Park
Ross Way
Folkestone
Kent
CT20 3UJ
Kent Auto Panels Limited
Directors' Report
Period from 1 January 2023 to 31 March 2024
The directors present their report and the financial statements of the company for the period ended 31 March 2024 .
Directors
The directors who served the company during the period were as follows:
Dr A J Furneaux
Mr C G Furneaux
Mr G I Furneaux
Mr R G A Furneaux
(Resigned 31 March 2023)
Dividends
The directors do not recommend the payment of a dividend.
Disclosure of information in the strategic report
The directors have prepared a Strategic Report in accordance with section 414C(11) of the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013, which includes their review of the business, risks and uncertainties and management thereof.
Directors' responsibilities statement
The directors are responsible for preparing the strategic report, directors' report and the financial statements in accordance with applicable law and regulations. Company law requires the directors to prepare financial statements for each financial period. 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 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 then apply them consistently; - make judgments 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 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. Auditor
Each of the persons who is a director at the date of approval of this report confirms that:
- so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.
This report was approved by the board of directors on 6 January 2025 and signed on behalf of the board by:
Dr A J Furneaux
Director
Registered office:
Shorncliffe Motor Park
Ross Way
Folkestone
Kent
CT20 3UJ
Kent Auto Panels Limited
Independent Auditor's Report to the Members of Kent Auto Panels Limited
Period from 1 January 2023 to 31 March 2024
Opinion
We have audited the financial statements of Kent Auto Panels Limited (the 'company') for the period ended 31 March 2024 which comprise the income statement, statement of comprehensive income, statement of financial position, statement of changes in equity and the related notes, 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 FRS 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 31 March 2024 and of its loss for the period then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; - 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'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.
Emphasis of matter
We draw attention to the going concern policy shown in note 3 of the financial statements, which outlines the directors' consideration of the company's ability to continue as a going concern, given the reliance on amounts owed by group undertakings of £4,792,191 as at 31st March 2024. As stated in the note, the company is reliant on the ongoing support of its group companies to meet its liabilities as they fall due. Without this support, there would be material uncertainty regarding the company's ability to continue as a going concern. The directors have received confirmation from the group of their intention to provide such support, and therefore the financial statements have been prepared on a going concern basis. Our opinion is not modified in respect of this matter.
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. 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.
Opinions 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 strategic report and the directors' report for the financial period for which the financial statements are prepared is consistent with the financial statements; and
- the 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 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: - 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 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. 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. In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we have considered; the nature of the industry, control environment and business performance. We also consider the results of our enquiries of management and the finance team, relating to their own identification and assessment of the risks of irregularities and possible related fraud. This includes asking questions and reviewing available documentation on their policies and procedures and performing tests of controls to evidence their effectiveness. Throughout the audit testing we are considering the incentives that may exist within the organisation for fraud. Key areas include timing of recognising income around the year end and posting of unusual journals. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. We ensure we have an understanding of the relevant laws and regulations and remain alert to possible non-compliance throughout the audit. Despite proper planning and audit work in accordance with auditing standards there are inherent limitations and unavoidable risk that we may not detect some irregularities and material misstatements in the financial statements. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations. As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also: - Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. - Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. 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.
Richard Stewart FCA
(Senior Statutory Auditor)
For and on behalf of
Burgess Hodgson LLP
Chartered accountants & statutory auditor
Camburgh House
27 New Dover Road
Canterbury
Kent
CT1 3DN
7 January 2025
Kent Auto Panels Limited
Income Statement
Period from 1 January 2023 to 31 March 2024
Period from
1 Jan 23 to
Year to
31 Mar 24
31 Dec 22
Note
£
£
Turnover
4
22,874,330
16,307,983
Cost of sales
21,331,500
15,134,595
-------------
-------------
Gross profit
1,542,830
1,173,388
Administrative expenses
2,976,822
2,485,829
Other operating income
5
389,358
271,500
------------
------------
Operating loss
6
( 1,044,634)
( 1,040,941)
Interest payable and similar expenses
10
360,829
161,606
------------
------------
Loss before taxation
( 1,405,463)
( 1,202,547)
Tax on loss
11
( 438,696)
159,873
------------
------------
Loss for the financial period
( 966,767)
( 1,362,420)
------------
------------
All the activities of the company are from continuing operations.
Kent Auto Panels Limited
Statement of Comprehensive Income
Period from 1 January 2023 to 31 March 2024
Period from
1 Jan 23 to
Year to
31 Mar 24
31 Dec 22
£
£
Loss for the financial period
( 966,767)
( 1,362,420)
Revaluation of tangible assets
( 4,817,680)
680,000
------------
------------
Other comprehensive income for the period
( 4,817,680)
680,000
------------
------------
Total comprehensive income for the period
( 5,784,447)
( 682,420)
------------
------------
Kent Auto Panels Limited
Statement of Financial Position
31 March 2024
31 Mar 24
31 Dec 22
Note
£
£
Fixed assets
Tangible assets
12
1,068,705
10,368,235
Current assets
Stocks
13
2,971,734
5,285,025
Debtors
14
5,215,236
437,912
Cash at bank and in hand
641,636
620,037
------------
------------
8,828,606
6,342,974
Creditors: amounts falling due within one year
15
6,267,597
6,618,876
------------
------------
Net current assets/(liabilities)
2,561,009
( 275,902)
------------
-------------
Total assets less current liabilities
3,629,714
10,092,333
Creditors: amounts falling due after more than one year
16
2,280,341
2,448,440
Provisions
Taxation including deferred tax
17
( 101,562)
526,531
Other provisions
17
153,596
107,443
---------
---------
52,034
633,974
------------
-------------
Net assets
1,297,339
7,009,919
------------
-------------
Capital and reserves
Called up share capital
21
1,000
1,000
Revaluation reserve
22
4,817,680
Other reserves, including the fair value reserve
22
262,494
190,627
Profit and loss account
22
1,033,845
2,000,612
------------
------------
Shareholders funds
1,297,339
7,009,919
------------
------------
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the medium companies regime.
These financial statements were approved by the board of directors and authorised for issue on 6 January 2025 , and are signed on behalf of the board by:
Dr A J Furneaux
Director
Company registration number: 00662809
Kent Auto Panels Limited
Statement of Changes in Equity
Period from 1 January 2023 to 31 March 2024
Called up share capital
Revaluation reserve
Other reserves, including the fair value reserve
Profit and loss account
Total
Note
£
£
£
£
£
At 1 January 2022
1,000
4,137,680
130,159
3,363,032
7,631,871
Loss for the period
( 1,362,420)
( 1,362,420)
Other comprehensive income for the period
20
680,000
680,000
-------
------------
---------
------------
------------
Total comprehensive income for the period
680,000
( 1,362,420)
( 682,420)
Capital contribution
60,468
60,468
-------
------------
---------
------------
------------
Total investments by and distributions to owners
60,468
60,468
At 31 December 2022
1,000
4,817,680
190,627
2,000,612
7,009,919
Loss for the period
( 966,767)
( 966,767)
Other comprehensive income for the period
20
( 4,817,680)
( 4,817,680)
-------
------------
---------
------------
------------
Total comprehensive income for the period
( 4,817,680)
( 966,767)
( 5,784,447)
Capital contribution
71,867
71,867
----
----
--------
----
--------
Total investments by and distributions to owners
71,867
71,867
-------
----
---------
------------
------------
At 31 March 2024
1,000
262,494
1,033,845
1,297,339
-------
----
---------
------------
------------
Kent Auto Panels Limited
Notes to the Financial Statements
Period from 1 January 2023 to 31 March 2024
1. General information
The company is a private company limited by shares, registered in England and Wales. The address of the registered office is Shorncliffe Motor Park, Ross Way, Folkestone, Kent, CT20 3UJ.
2. Statement of compliance
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.
The financial statements are prepared in sterling, which is the functional currency of the entity.
Going concern
The directors have considered going concern with particular reference to the reliance on amounts owed by group undertakings of £4,792,191 (2022: £Nil). In making their assessment, they have communicated with the lender to whom they owe £2,136,549 (2022 £2,516,926) and confirmed they are satisfied with the company's financial performance and position. The directors have also received confirmation of support from the other companies in the group that they will continue to support the entity to meet its liabilities as they fall due. Without the support, there would be material uncertainty in the company's ability to continue as a going concern. The directors have no reason to believe that this will not be received, if required, and continue to prepare the accounts on this basis.
Disclosure exemptions
The entity satisfies the criteria of being a qualifying entity as defined in FRS 102. Its financial statements are consolidated into the financial statements of Tudor Group Holdings Limited as at 30th December 2023 which can be obtained from Camburgh House, 27 New Dover Road, Canterbury, Kent, United Kingdom, CT1 3DN. As such, advantage has been taken of the following disclosure exemptions available under paragraph 1.12 of FRS 102: (a) No cash flow statement has been presented for the company. (b) Disclosures in respect of financial instruments have not been presented. (c) Disclosures in respect of share-based payments have not been presented. (d) No disclosure has been given for the aggregate remuneration of key management personnel. These exemptions have been applied on the basis that Tudor Group Holdings Limited includes equivalent disclosures for Kent Auto Panels Limited in its consolidated financial statements prepared in accordance with UK GAAP.
Judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements and estimates that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The items in the financial statements where these judgments and estimates have been made are set out below: Key sources of estimation uncertainty i. Stock provision Stock is measured at the lower of cost and net realisable value. The financial statements include a provision for goods held that may be sold below cost or disposed of, due to perishability or changing demand conditions. When calculating this provision, management considers sales forecasts, stocks held and past experience. ii. Useful economic life of tangible assets The annual depreciation charge depends on the estimated useful economic lives of the assets in question. These are re-assessed annually and amended where necessary to reflect current best estimates. iii. Warranty provision Provisions are initially measured at the best estimate of the amount required to settle to obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle to obligation.
Revenue recognition
Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax. Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably.
Income tax
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.
Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
Tangible assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss. Land and buildings Land and buildings are recorded at cost. Any land and buildings carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Plant and machinery
-
10% straight line
Fixtures and fittings
-
10% straight line
Motor vehicles
-
20% straight line
The entity elects, under FRS 102 Section 17 Property, Plant and Equipment, not to depreciate its freehold properties. This accounting policy applies to all freehold properties held unless stated otherwise. The entity has assessed that the useful life of its freehold property is indefinite. The buildings situated on the freehold land are considered to have extremely long and indeterminable useful lives due to its use within the business, are maintained to current standards and in the view of the directors have not suffered any impairment. Consequently, annual depreciation is not considered appropriate.
Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.
Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.
Finance leases and hire purchase contracts
Assets held under finance leases and hire purchase contracts are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.
Provisions
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset.
Financial instruments
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. 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 profit and loss account in other administrative expenses. Loans and borrowings are initially recognised at the transaction price including transaction costs. Subsequently, they are measured at amortised cost using the effective interest rate method, less impairment. If an arrangement constitutes a finance transaction it is measured at present value.
4. Turnover
The whole of turnover is attributable to the principal activity of the company.
All turnover arose within the United Kingdom.
5. Other operating income
Period from
1 Jan 23 to
Year to
31 Mar 24
31 Dec 22
£
£
Other operating income
389,358
271,500
---------
---------
6. Operating loss
Operating profit or loss is stated after charging/crediting:
Period from
1 Jan 23 to
Year to
31 Mar 24
31 Dec 22
£
£
Depreciation of tangible assets
315,162
370,035
Gains on disposal of tangible assets
( 650)
Gains on disposal of investment property
( 4,817,680)
Impairment of trade debtors
4,817,185
45,539
------------
---------
7. Auditor's remuneration
Period from
1 Jan 23 to
Year to
31 Mar 24
31 Dec 22
£
£
Fees payable for the audit of the financial statements
15,375
12,300
--------
--------
8. Staff costs
The average number of persons employed by the company during the period, including the directors, amounted to:
31 Mar 24
31 Dec 22
No.
No.
Production staff
53
52
Administrative staff
23
24
Management staff
4
5
Number of selling staff
5
6
----
----
85
87
----
----
The aggregate payroll costs incurred during the period, relating to the above, were:
Period from
1 Jan 23 to
Year to
31 Mar 24
31 Dec 22
£
£
Wages and salaries
3,052,132
2,243,661
Social security costs
301,852
210,745
Other pension costs
56,148
122,141
------------
------------
3,410,132
2,576,547
------------
------------
9. Directors' remuneration
The directors' aggregate remuneration in respect of qualifying services was:
Period from
1 Jan 23 to
Year to
31 Mar 24
31 Dec 22
£
£
Remuneration
160,414
66,567
Company contributions to defined contribution pension plans
27
80,261
---------
---------
160,441
146,828
---------
---------
The number of directors who accrued benefits under company pension plans was as follows:
31 Mar 24
31 Dec 22
No.
No.
Defined contribution plans
1
2
----
----
10. Interest payable and similar expenses
Period from
1 Jan 23 to
Year to
31 Mar 24
31 Dec 22
£
£
Interest on banks loans and overdrafts
141,840
70,909
Interest on obligations under finance leases and hire purchase contracts
218,989
90,697
---------
---------
360,829
161,606
---------
---------
11. Tax on loss
Major components of tax (income)/expense
Period from
1 Jan 23 to
Year to
31 Mar 24
31 Dec 22
£
£
Current tax:
UK current tax income
( 367,130)
Deferred tax:
Origination and reversal of timing differences
( 71,566)
159,873
---------
---------
Tax on loss
( 438,696)
159,873
---------
---------
Reconciliation of tax (income)/expense
The tax assessed on the loss on ordinary activities for the period is lower than (2022: higher than) the standard rate of corporation tax in the UK of 24.05 % (2022: 19 %).
Period from
1 Jan 23 to
Year to
31 Mar 24
31 Dec 22
£
£
Loss on ordinary activities before taxation
( 1,405,463)
( 1,202,547)
------------
------------
Loss on ordinary activities by rate of tax
( 338,014)
( 228,484)
Effect of expenses not deductible for tax purposes
( 6,835)
Effect of capital allowances and depreciation
20,712
50,140
Short term timing difference leading to an increase (decrease) in taxation
( 70,174)
159,873
Group relief
( 51,220)
185,179
------------
------------
Tax on loss
( 438,696)
159,873
------------
------------
12. Tangible assets
Land and buildings
Plant and machinery
Fixtures and fittings
Motor vehicles
Investment property
Total
£
£
£
£
£
£
Cost
At 1 Jan 2023
5,936,285
1,077,357
963,931
101,495
3,630,000
11,709,068
Additions
88,707
14,587
478,623
581,917
Disposals
( 5,936,285)
( 4,237)
( 3,630,000)
( 9,570,522)
------------
------------
---------
---------
------------
-------------
At 31 Mar 2024
1,166,064
978,518
575,881
2,720,463
------------
------------
---------
---------
------------
-------------
Depreciation
At 1 Jan 2023
776,100
517,553
47,180
1,340,833
Charge for the period
81,632
100,099
133,431
315,162
Disposals
( 4,237)
( 4,237)
------------
------------
---------
---------
------------
-------------
At 31 Mar 2024
857,732
617,652
176,374
1,651,758
------------
------------
---------
---------
------------
-------------
Carrying amount
At 31 Mar 2024
308,332
360,866
399,507
1,068,705
------------
------------
---------
---------
------------
-------------
At 31 Dec 2022
5,936,285
301,257
446,378
54,315
3,630,000
10,368,235
------------
------------
---------
---------
------------
-------------
13. Stocks
31 Mar 24
31 Dec 22
£
£
Raw materials and consumables
2,890,424
5,206,500
Work in progress
81,310
78,525
------------
------------
2,971,734
5,285,025
------------
------------
14. Debtors
31 Mar 24
31 Dec 22
£
£
Trade debtors
411,074
392,452
Amounts owed by group undertakings
4,792,191
Prepayments and accrued income
11,371
45,460
Other debtors
600
------------
---------
5,215,236
437,912
------------
---------
15. Creditors: amounts falling due within one year
31 Mar 24
31 Dec 22
£
£
Bank loans and overdrafts
993,714
1,277,859
Trade creditors
2,100,110
3,823,208
Amounts owed to group undertakings
2,506,644
1,014,920
Accruals and deferred income
447,882
236,788
Social security and other taxes
217,992
266,101
Other creditors
1,255
------------
------------
6,267,597
6,618,876
------------
------------
As at the balance sheet date, the total value of goods held which are subject to the reservation of title clause and for which legal ownership has not passed, amounted to £459,482 (2022: £367,706).
16. Creditors: amounts falling due after more than one year
31 Mar 24
31 Dec 22
£
£
Bank loans and overdrafts
1,142,835
1,239,067
Amounts owed to group undertakings
1,137,506
1,209,373
------------
------------
2,280,341
2,448,440
------------
------------
Bank borrowings are secured by a cross guarantee between all companies within the Tudor Group Holdings Limited group, a debenture over all of the company's assets and legal charges over the freehold properties.
17. Provisions
MOT and warranty provision
Deferred tax (note 18)
Total
£
£
£
At 1 January 2023
107,443
526,531
633,974
Additions
153,173
( 628,093)
( 474,920)
Charge against provision
( 107,020)
( 107,020)
---------
---------
---------
At 31 March 2024
153,596
( 101,562)
52,034
---------
---------
---------
The company offers its customers KAP backed warranties on their car sales. The anticipated costs of providing each warranty are recorded and costs relating to each warranty recorded against this provision. When the warranty expires the company takes any profit or loss on the warranty to the profit and loss account. The company offers its used car customers free or reduced MOTs and makes a provision for the anticipated future costs of this offer based on the cost of an MOT and the number of cars entitled to receive this offer.
18. Deferred tax
The deferred tax included in the statement of financial position is as follows:
31 Mar 24
31 Dec 22
£
£
Included in provisions (note 17)
( 101,562)
526,531
---------
---------
The deferred tax account consists of the tax effect of timing differences in respect of:
31 Mar 24
31 Dec 22
£
£
Accelerated capital allowances
( 46,037)
( 54,708)
Revaluation of tangible assets
556,527
Unused tax losses
( 93,923)
Provisions
38,398
24,712
---------
---------
(101,562)
526,531
---------
---------
19. Employee benefits
Defined contribution plans
The amount recognised in profit or loss as an expense in relation to defined contribution plans was £ 56,148 (2022: £ 122,141 ).
20. Analysis of other comprehensive income
Revaluation reserve
£
Period ended 31 March 2024
Revaluation of tangible assets
( 4,817,680)
------------
Period ended 31 December 2022
Revaluation of tangible assets
680,000
---------
21. Called up share capital
Issued, called up and fully paid
31 Mar 24
31 Dec 22
No.
£
No.
£
Ordinary shares of £ 1 each
1,000
1,000
1,000
1,000
-------
-------
-------
-------
22. Reserves
Revaluation reserve - This reserve records the value of Freehold Property and Investment Property revaluations and fair value movements on these assets recognised in other comprehensive income. Profit and loss account - This reserve records retained earnings and accumulated profits and losses. Capital contribution - There is an intercompany creditor balance that is due over one year, with no interest being charged. The discounted element is in capital contribution and is transferred to the profit and loss when unwound.
23. Contingencies
Prior to 2021, we operated as an agent on behalf of various finance companies, facilitating customer finance arrangements for the purchase of its products under discretionary commission agreements. In light of recent rulings by the Financial Ombudsman, the Financial Conduct Authority (FCA) has commenced a review of motor finance commission arrangements and sales practices across multiple finance companies. Should the FCA determine that there has been widespread misconduct, it will assess the most appropriate methods to ensure affected consumers are compensated. The FCA's review is expected to conclude imminently. While we believe that our practices were compliant with the applicable regulations at the time, inherent uncertainties remain regarding the review's outcome. These include the potential nature, scope, and timing of any required compensation arrangements, as well as responsibility for such measures. Consequently, it is not currently practicable to estimate the timing or extent of any potential financial impact on the Group.
24. Related party transactions
At the period end, the Company owed £3,644,150 (2022: £2,224,293) to group companies. The Company was also owed £4,792,191 (2022: £Nil) by group companies. During the period, the Company transferred freehold and investment property with a carrying value of £9,566,285 to a group company. The revalued amount of £4,817,680 previously held in the revaluation reserve was written off.
Kent Auto Panels Limited
Notes to the Financial Statements (continued)
Period from 1 January 2023 to 31 March 2024
25. Controlling party
The immediate parent of the company is Tudor Holdings (UK) Limited. The ultimate parent and controlling party, and the parent of both the largest and smallest group for which consolidated accounts are available, is Tudor Group Holdings Limited. Both companies are registered at Camburgh House, 27 New Dover Road, Canterbury, Kent, CT1 3DN.