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Registration number: 02523314

Motovario Limited

Filleted Financial Statements

for the Year Ended 31 December 2024

 

Motovario Limited

Contents

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3 to 10

 

Motovario Limited

Company Information

Directors

G Cheetham

F Pacini

M Boninsegna

Registered office

Unit 335 Rushock Trading Estate
Rushock
Droitwich
Worcestershire
WR9 0NR

Auditors

Ballards LLP
Chartered Accountants
Oakmoore Court
11C Kingswood Road
Hampton Lovett
Droitwich
Worcestershire
WR9 0QH

 

Motovario Limited

(Registration number: 02523314)
Balance Sheet as at 31 December 2024

Note

2024
£

2023
£

Fixed assets

 

Tangible assets

4

652,858

673,803

Investments

5

1,000

1,000

 

653,858

674,803

Current assets

 

Stocks

6

1,123,859

942,912

Debtors

7

1,464,106

1,691,536

Cash at bank

 

87,323

83,425

 

2,675,288

2,717,873

Creditors: Amounts falling due within one year

8

(2,616,064)

(2,870,396)

Net current assets/(liabilities)

 

59,224

(152,523)

Total assets less current liabilities

 

713,082

522,280

Creditors: Amounts falling due after more than one year

8

(25,905)

(35,621)

Provisions for liabilities

(33,794)

(34,638)

Net assets

 

653,383

452,021

Capital and reserves

 

Called up share capital

364,335

364,335

Revaluation reserve

101,379

103,914

Retained earnings

187,669

(16,228)

Shareholders' funds

 

653,383

452,021

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime. As permitted by section 444 (5A) of the Companies Act 2006, the directors have not delivered to the registrar a copy of the Profit and Loss Account.

Approved and authorised by the Board on 17 January 2025 and signed on its behalf by:
 

.........................................
G Cheetham
Director

   
     
 

Motovario Limited

Notes to the Financial Statements for the Year Ended 31 December 2024

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Unit 335 Rushock Trading Estate
Rushock
Droitwich
Worcestershire
WR9 0NR

2

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 have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).

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.

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

Going concern

The Directors consider that the company will remain a going concern for a period of more than twelve months from the date of approval of the accounts, following continued financial support from Motovario Spa.

The Company has again performed very well under difficult circumstances and protected the EBITDA which produced a positive result. Despite lower sales of £6.8M the Operating costs were well controlled and margins increased significantly which produced a positive bottom line result. The EBITDA produced was a positive £119K despite the geopolitical challenges we all faced and tough market conditions. The first six months of the year continued where 2023 left off with tough trading conditions. However in the second half of the year the results were more positive and so we approach 2025 with cautious optimism .

The budget for 2025 is £8.3M which is around €10M and whilst this is still stretch it is more realistic. The Company is in a strong position to grow in 2025 and we hope to maintain strong margins which will again produce a positive result . Oxford Economics are now more positive regarding the UK outlook for 2025 especially in the second half of the year. We have a strong order book and backlog of goods to be invoiced of over £1.5M which will assist our growth and contribute significantly to this years sales target of £8.3M.

 

Motovario Limited

Notes to the Financial Statements for the Year Ended 31 December 2024

Audit report

The Independent Auditor's Report was unqualified. The name of the Senior Statutory Auditor who signed the audit report on 17 January 2025 was Mark Skellum BSc (Hons) FCA, who signed for and on behalf of Ballards LLP.

Judgements

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the Company’s activities. Turnover is shown net of value added tax, returns, rebates and discounts.

The Company recognises revenue when the amount of revenue can be reliably measured and it is probable that future economic benefits will flow to the entity.

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rate on the date when the fair value is re-measured.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

Tax

Deferred income tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the Company. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

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:

 

Motovario Limited

Notes to the Financial Statements for the Year Ended 31 December 2024

Asset class

Depreciation method and rate

Freehold properties

2% on cost

Plant and machinery

10% on cost

Computer equipment

20% on cost

Motor vehicles

25% on cost

Fixtures and fittings

10% on cost

Business combinations

Business combinations are accounted for using the purchase method. The consideration for each acquisition is measured at the aggregate of the fair values at acquisition date of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquired, plus any costs directly attributable to the business combination. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the group includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably.

Investments

Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.

Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.

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.

Trade debtors

Trade debtors are amounts due from customers for goods sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the Company will not be able to collect all amounts due according to the original terms of the receivables.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell, after making due allowance for obsolete and slow moving stock.

Cost is determined using the first-in, first-out (FIFO) method.

 

Motovario Limited

Notes to the Financial Statements for the Year Ended 31 December 2024

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

3

Staff numbers

The average number of persons employed by the company (including directors) during the year, was 21 (2023 - 24).

 

Motovario Limited

Notes to the Financial Statements for the Year Ended 31 December 2024

4

Tangible assets

Land and buildings
£

Furniture, fittings and equipment
 £

Other property, plant and equipment
 £

Total
£

Cost or valuation

At 1 January 2024

760,000

72,171

153,373

985,544

At 31 December 2024

760,000

72,171

153,373

985,544

Depreciation

At 1 January 2024

136,800

72,171

102,771

311,742

Charge for the year

15,200

-

5,744

20,944

At 31 December 2024

152,000

72,171

108,515

332,686

Carrying amount

At 31 December 2024

608,000

-

44,858

652,858

At 31 December 2023

623,200

-

50,603

673,803

Included within the net book value of land and buildings above is £608,000 (2023 - £623,200) in respect of freehold land and buildings.
 

 

Motovario Limited

Notes to the Financial Statements for the Year Ended 31 December 2024

5

Investments

2024
£

2023
£

Investments in subsidiaries

1,000

1,000

Subsidiaries

£

Cost or valuation

At 1 January 2024

1,000

Carrying amount

At 31 December 2024

1,000

At 31 December 2023

1,000

Details of undertakings

Details of the investments (including principal place of business of unincorporated entities) in which the company holds 20% or more of the nominal value of any class of share capital are as follows:

Undertaking

Registered office

Holding

Proportion of voting rights and shares held

2024

2023

Subsidiary undertakings

Gorton Engineering Products Limited

Unit 11 Rushock Trading Estate
Rushock
Droitwich
Worcestershire
WR9 0NR

United Kingdom

Ordinary

100%

100%

Subsidiary undertakings

Gorton Engineering Products Limited

The principal activity of Gorton Engineering Products Limited is Business support service activities.

6

Stocks

2024
 £

2023
 £

Finished goods

1,123,859

942,912

 

Motovario Limited

Notes to the Financial Statements for the Year Ended 31 December 2024

7

Debtors

Current

2024
£

2023
£

Trade debtors

1,431,548

1,672,163

Prepayments

26,250

14,759

Other debtors

6,308

4,614

 

1,464,106

1,691,536

8

Creditors

2024
 £

2023
 £

Due within one year

Trade creditors

206,846

198,295

Amounts owed to group undertakings

2,022,386

2,284,424

Taxation and social security

302,057

312,639

Other creditors

75,058

65,321

Loans and borrowings

9,717

9,717

2,616,064

2,870,396

Due after one year

Loans and borrowings

25,905

35,621

9

Loans and borrowings

2024
£

2023
£

Non-current loans and borrowings

Hire purchase and finance lease liability

25,905

35,621

2024
£

2023
£

Current loans and borrowings

Hire purchase and finance lease liability

9,717

9,717

10

Financial commitments, guarantees and contingencies

Amounts not provided for in the balance sheet

The total amount of financial commitments not included in the balance sheet is £83,907 (2023 - £63,353). This relates to motor vehicles and office equipment.

 

Motovario Limited

Notes to the Financial Statements for the Year Ended 31 December 2024

11

Related party transactions

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

12

Parent and ultimate parent undertaking

The company's immediate parent is Motovario S.p.A, incorporated in Italy.

 The ultimate parent is Teco Electric & Machinery Co., Limited, incorporated in Taiwan.

  These financial statements are available upon request from 5F, No. 19-9, San Chong Rd., Nan-Kang, Taipei 11501, Taiwan.