Company registration number 03604992 (England and Wales)
MOTOR PARTS DIRECT LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
MOTOR PARTS DIRECT LIMITED
COMPANY INFORMATION
Directors
S de Waal
N Lynch
R G Truscott
D Wykes
Company number
03604992
Registered office
40 Springwood Drive
Springwood Industrial Estate
Braintree
CM7 2YN
Auditor
Deloitte LLP
Statutory Auditor
Four Brindleyplace
Birmingham
United Kingdom
B1 2HZ
MOTOR PARTS DIRECT LIMITED
CONTENTS
Page
Strategic report
1 - 4
Directors' report
5 - 9
Independent auditor's report
10 - 12
Statement of comprehensive income
13
Balance sheet
14
Statement of changes in equity
15
Statement of cash flows
16
Notes to the financial statements
17 - 31
MOTOR PARTS DIRECT LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 1 -

The directors present the strategic report for the year ended 30 June 2024.

Principal activities

Motor Parts Direct (MPD) business activity is the distribution of motor vehicle spare parts and accessories, specialising in two key areas - trade and retail - its major customer base being independent garages, some key account customers and walk in trade supported through its nationwide branch network and some distribution centres. It sources goods from key local suppliers and sells primarily to the UK market.

BUSINESS REVIEW AND FUTURE DEVELOPMENTS

 

The principal business of the company is the wholesaling of motor vehicle components and accessories through a growing network of 178 branches, from 175 branches as reported for the prior period.

 

During the year, the business was successful in growing both revenue and profitability compared to the prior equivalent period as explained further in the review of key performance indicators below. This was enabled by continuing positive independent after-market conditions as well as a slight increase in the number of wholesale outlets.

 

A number of strategic initiatives are underway to secure ongoing growth, including the opening of new greenfield sites and pursuing new product ranges to enhance the existing sales offering to customers.

PRINCIPAL RISKS AND UNCERTAINTIES

 

The management of the business and the execution of the company's activities are subject to risk, the key risk factor being competition in the market place, the economic climate, liquidity risk and customer credit risk.

 

Competition

 

Competition risk is being managed through opening new greenfield sites, seeking new product ranges as well as improving buying terms with suppliers and ensuring that goods are supplied to consumers on a timely basis, optimising sales revenue.

 

Economic climate

 

The success of the business is reliant on consumer spending. During periods of economic instability the reduction in consumer and business to business spending will have a direct impact on the income achieved by the company.

 

In response to this risk, management aim to keep abreast of economic conditions and constantly review and modify marketing and pricing strategies in response to changing market conditions.

 

Labour supply shortages continue due in part to the reverse migration of European workers creating national skill shortages, and leading to vacancies within the transport and other sectors. This in turn has resulted in wage inflation as manufacturers and distributors deal with increasing costs in securing supply chains.

 

 

The company is overcoming these challenges through the redeployment of internal resources, raising the company profile and developing our own in-house capability by continuing to invest in apprenticeships.

MOTOR PARTS DIRECT LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 2 -

PRINCIPAL RISKS AND UNCERTAINTIES (Continued)

 

Liquidity risk

 

The objective of the company in managing liquidity risk is to ensure that it can meet its financial obligations as and when these fall due. The company expects to meet its financial obligations through operating cash flows and working capital management.

 

Trade creditors liquidity risk is managed by ensuring funds are available to meet amounts due to suppliers.

 

Customer credit risk

 

The company offers credit terms to its customers which allows payment of the debt after delivery of the goods. The company is at risk to the extent that a customer may be unable to pay the debt by the specified due date. This risk is mitigated by the strong on-going customer relationships and carefully managed credit control.

KEY PERFORMANCE INDICATORS - FINANCIAL AND NON FINANCIAL

 

The directors monitor the performance of the company by reference to key performance indicators and cash flow.

 

The key financial and other performance indicators during the year were as follows:

 

 

2024

12 months

2023

18 months

 

 

Turnover

 

231,335,295

 

299,406,455

 

Operating profit

31,684,163

26,628,165

 

Stocks

Working capital

43,528,294

49,867,416

42,602,991

37,612,108

 

 

 

Comparative figures in these financial statements relate to the 18 month period through to 30 June 2023, resulting from the requirement to align the reporting with the parent company.

Turnover growth success has largely been due to organic growth and through new branch openings, with, several new branches opened during the year. On average it takes approximately 3 years for a new branch to reach full maturity. On a pro rata basis, current year turnover can be compared to prior year sales of £199.6m indicating significant turnover growth, though not adjusting here for seasonality.

Total operating profit on a year on year basis increased by 78.5% and resulted from increased sales of £31.7m. The additional revenue arose from the new branches opened and the continued organic growth in maturing branches. In addition, the operating profit figures in the table above are not directly comparable as a result of seasonal fluctuations of sales across the 12 month and 18 month periods as well as one off items of expenditure arising in the prior period in which the acquisition of the company took place.

Closing stock balances are broadly comparable and the marginal increase can be attributed to the stocking of additional sites.

Working capital has increased due to the profitability of the business and resultant increase in cash balances, partly applied in the payment of one off expenditure items. It will be further optimised going forward through the dividend payments made to Motus Group companies.

Costs are controlled through strong payment governance as well as cost saving exercises and management's continued efforts in maintaining efficiency in the delivery of the company's products and services.

 

The company also monitors its performance by tracking other non-financial indicators including inventory management, HSE, compliance and general housekeeping which the directors believe are important to monitor the growth of the business.

MOTOR PARTS DIRECT LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 3 -
DIRECTORS' RESPONSIBILITY UNDER SECTION 172 AND STATEMENT OF ENGAGEMENT WITH SUPPLIERS, CUSTOMERS, AND OTHERS IN A BUSINESS RELATIONSHIP WITH THE COMPANY

 

The directors are fully aware of their duty to promote the success of the company in accordance with the requirement under Section 172 of the Companies Act 2006.

 

The Board recognises the importance of the company's wider stakeholders when performing their duties under Section 172 (1) of the Companies Act and their duties to act in the way they consider, in good faith, would be most likely to promote the success of the company for the benefit its members as a whole, and in doing so have regard (amongst other matters) to:

 

  1. the likely consequences of any decision in the long term;

  2. the interests of the company's employees;

  3. the need to foster the company's business relationships with customers, suppliers and others:

  4. the impact of the company's operations on the community and the environment;

  5. the desirability of the company maintaining a reputation for high standards of business conduct; and

  6. the need to act fairly as between members of the company.

Long term decision making

Whilst our business strategies and operations must constantly evolve in response to an ever-changing marketplace, our purpose and values remain a constant.

 

Company leadership make decisions with a long-term view in mind and with the highest standards of conduct in line with company policies. To fulfil their duties, senior management take care to have regard to the likely consequences on all stakeholders of the decisions and actions which they take. Where possible and relevant, decisions are discussed with affected stakeholders and are therefore fully understood and supported when taken. The Board also consistently evaluates the long-term implications of its strategic decisions.

 

Employees’ interests

We recognise our staff as our most important asset and aim to be a responsible employer in our approach to the pay and benefits our employees receive. Employees have been rewarded through ongoing staff bonus schemes and loyalty programmes. The company continues to offer learning and development opportunities to staff in the form of apprenticeships and internal informal engagement with all staff at branch level.

 

The health, safety and wellbeing of our employees are of the highest importance and ensuring these as one of our primary considerations in the way we do business.

Fostering business relationships

Caring for our customers is fundamentally important to the success of our business and we endeavor to serve them to the best of our ability, in all our branches and in their businesses, in person and through our vast delivery network. The key to our success is the broad stock range that we carry and our ability to source parts at short notice from all our key suppliers.

 

We also aim to act responsibly and fairly with suppliers, regulators, bankers and insurers. All our suppliers are paid in accordance with their agreed terms. We respond quickly and fully to any concerns or queries arising from our stakeholders, providing our funders with monthly updates on our performance, and the opportunity to ask questions to our Senior Management.

 

Community and environment


The way in which we engage with our stakeholders defines the way we work and live our values as a responsible business, with consideration for the communities we serve and our environmental impact.

 

Specific initiatives have been implemented to reduce the company’s carbon footprint and referenced in the Directors’ report.

MOTOR PARTS DIRECT LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 4 -

Reputation

Our intention is always to behave responsibly and continue to ensure that the business operates in a reasonable manner, adhering to high standards of business conduct. We recognise that maintaining our good reputation, founded on reasonable business behaviour demonstrated over more than ten years, is fundamental to our continuing ability to achieve sustainable profitable growth for the benefit of all our stakeholders in the future.

 

Fair Treatment of Members


The company only has one shareholder with which we maintain open and transparent communication through regular reporting and quarterly review meetings.

Approved by the Board of Directors and signed on its behalf by

S de Waal
Director
24 January 2025
MOTOR PARTS DIRECT LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 5 -

The directors present their annual report and financial statements for the year ended 30 June 2024.

Results and dividends

The results for the year are set out on page 13.

Ordinary dividends were paid amounting to £10,700,000. The directors do not recommend payment of a further dividend.

 

Going concern

The company has been highly cash generative during the year with a closing cash balance in excess of £16m and expects the profitability of the business and cash generation to continue for the foreseeable future. This also manifests in the increasing net assets, stated at close to £60m at the year ended 30 June 2024, compared to £46m at the start of the year, further demonstrating the financial strength of the company.

 

Motor Parts Direct Limited operates a pooled bank facility with other Motus Group entities through Barclays. The UK bank pool has an uncommitted overdraft facility of £10m.

 

Management have prepared a profit and loss and cash flow forecast for the period to 31 January 2026, indicating that the company is forecast to remain comfortably within the existing bank facility limits throughout the period to 31 January 2026, with no requirement to access the uncommitted bank overdraft facility at any point. This forecast has been reviewed and approved by the Board.

 

By their very nature forecasts and projections are inherently uncertain. Due to the inherent level of uncertainty over future financial performance and cash flows, as well as the importance of the key assumptions underpinning the Company’s projections, sensitivity analysis has been performed to model the impact of more adverse trends compared to those included in the financial projections. These sensitivities model the impact of severe but plausible downside risks to the achievement of the financial projections. In particular, in the scenario of a reduction in forecast revenues of 20%, the forecasted cash flow projections indicate that sufficient funds would be available and there would be no requirement to access the uncommitted bank overdraft facility at any point.

 

Based on the detailed forecasts prepared by management, the Board has a reasonable expectation that Motor Parts Direct Limited has adequate resources to continue to trade for the foreseeable future, being a period of at least 12 months from the date of signing and approving these financial statements. Accordingly, the Board continues to adopt the going concern basis when preparing this Annual Report and Financial Statements.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

C de Klerk
(Resigned 21 November 2024)
S de Waal
O Janse Van Rensburg
(Resigned 26 January 2024)
N Lynch
M J Perrie
(Resigned 21 November 2024)
R G Truscott
D Wykes
Qualifying third party indemnity provisions

The company has made qualifying third party indemnity provisions for the benefit of its directors during the year. These provisions remain in force at the reporting date.

Financial instruments

Details of the financial instruments are noted in the going concern assessment above.

MOTOR PARTS DIRECT LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 6 -
Employees
Motor Parts Direct's people, its culture and its values are at the heart of the company's strategy and the directors believe this to be a source of its competitive advantage. Motor Parts Direct endeavours to create a workplace that is both welcoming and challenging for all employees. The company values diversity in its workforce and works to ensure that the company is inclusive of all people, regardless of their background or style. To enhance diversity, the company aims to create opportunities that are attractive to a wide range of candidates, including those with disabilities.
Employment of disabled persons

The company is committed to a policy of recruitment and promotion on the basis of aptitude and ability without discrimination of any kind. Particular attention is given to training and promotion of disabled employees to ensure that their career development is not unfairly restricted by their disability, or perceptions of it.

 

It is the company's policy to continue wherever possible the employment of members of staff who may become disabled and to ensure that suitable training, career development and promotion is afforded to such persons.

Employee involvement

The company's policy is to consult and discuss with employees, through unions, staff councils and at meetings, matters likely to affect employees' interests.

 

Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the company's performance.

 

There is no employee share scheme at present, but the directors are considering the introduction of such a scheme as a means of further encouraging the involvement of employees in the company's performance.

The company regularly communicates with employees in many ways including regular briefings by management, regular branch visits by management, face to face meetings during performance appraisals and regional managers board meetings.

Environment policies
The company regularly monitors its fleet with particular regard to mpg and emissions. The policy on new vehicles is driven by those vehicles that are proven to be more efficient and therefore 'greener'.

All staff are aware of the company's commitment to recycling and are involved in the sorting of the company's waste material in order to maximise this.
Post reporting date events

There have been no events after the reporting date which would have a material effect on the Company's financial statements as at 30 June 2024.

Future developments

The directors aim to maintain the management policies which have resulted in the company's substantial growth and profitability. They consider that the remaining part of 2024 will show a further growth in sales and revenues from continuing operations.

MOTOR PARTS DIRECT LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 7 -
Energy and carbon report

In line with the Companies (Directors' Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018, the company's energy and greenhouse gas (CHG) emissions are set out below.

 

The data relates to the UK emissions of the company to the legislation, for the 12 month period from 1st July 2023 to 30 June 2024:

2024
2023
Energy consumption
kWh
kWh
12 months
18 months
Aggregate of energy consumption in the period
30,372,639
47,094,946
2024
2023
Emissions of CO2 equivalent
metric tonnes
metric tonnes
12 months
18 months
Scope 1 - direct emissions
- Gas combustion
385.95
833.73
- From combustion of fuel for the purposes of transport
6,128.21
8,925.59
6,514.16
9,759.32
Scope 2 - indirect emissions
- Emissions from the consumption of purchased electricity, including for transport
781.04
1,147.47
Total gross emissions
7,295.20
10,906.79
Intensity ratio
Emissions per £m turnover
31.54
36.43
Quantification and reporting methodology

The directors report the company's emissions with reference to the latest Greenhouse Gas Protocol Corporate Accounting and reporting Standard (GHG Protocol). The 2022 UK Government GHG Conversion Factors for Company Reporting published by the UK Department for Environment Food & Rural Affairs (DEFRA) are used to convert energy used in the company's operations to emissions of CO2. Carbon emission factors for purchased electricity are calculated according to the 'location-based grid average' method. This reflects the average emissions of the organisations grid where the energy consumption occurs. Data sources include billing from the energy supplier and the organisations internal fuel usage systems.

Intensity measurement

The directors have chosen to report the company's gross emissions against £m turnover.

MOTOR PARTS DIRECT LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 8 -

Our environmental objectives

 

The company is committed to responsible business practice. We will acknowledge, measure and minimise our environmental impact. We will:

 

 

Energy efficiency actions

 

Motor Parts Direct have reviewed the recommendations of the ESOS report. The directors continue to undertake energy efficiency measures as follows:

 

Environmental policies

The company regularly monitors its fleet with particular regard to mpg and emissions. The policy on new vehicles is driven by those vehicles that are proven to be more efficient and therefore 'greener'.

 

All staff are aware of the company's commitment to recycling and are involved in the sorting of the company's waste material in order to maximise this.

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. The directors are responsible for the maintenance and integrity of the corporate and financial information included on the company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

MOTOR PARTS DIRECT LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 9 -
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.

Approved by the Board of Directors and signed on its behalf by
S de Waal
Director
24 January 2025
MOTOR PARTS DIRECT LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF MOTOR PARTS DIRECT LIMITED
- 10 -
Opinion

In our opinion the financial statements of Motor Parts Direct Limited (the ‘company’):

We have audited the financial statements which comprise:

 

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).

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 Financial Reporting Council’s (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.

MOTOR PARTS DIRECT LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF MOTOR PARTS DIRECT LIMITED
- 11 -
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.

A further description of our responsibilities for the audit of the financial statements is located on the FRC’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

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

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 considered the nature of the company’s industry and its control environment, and reviewed the company’s documentation of their policies and procedures relating to fraud and compliance with laws and regulations. We also enquired of management and the directors about their own identification and assessment of the risks of irregularities, including those that are specific to the company’s business sector.

We obtained an understanding of the legal and regulatory frameworks that the company operates in, and identified the key laws and regulations that:

We discussed among the audit engagement team including relevant internal specialists such as IT specialists regarding the opportunities and incentives that may exist within the organisation for fraud and how and where fraud might occur in the financial statements.

 

As a result of performing the above, we identified the greatest potential for fraud in the following area, and our procedures performed to address it are described below:

 

 

MOTOR PARTS DIRECT LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF MOTOR PARTS DIRECT LIMITED
- 12 -

In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments; assessed whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business.

 

In addition to the above, our procedures to respond to the risks identified included the following:

Report on other legal and regulatory requirements

 

Opinions on other matters prescribed by the Companies Act 2006

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

 

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 any material misstatements in the strategic report or the directors’ report.

Matters on which we are required to report by exception

Under the Companies Act 2006 we are required to report in respect of the following matters if, in our opinion:

 

We have nothing to report in respect of these matters.

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.

Manmeet Kalsi ACA (Senior statutory auditor)
For and on behalf of Deloitte LLP
Statutory Auditor
Birmingham, United Kingdom
24 January 2025
MOTOR PARTS DIRECT LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2024
- 13 -
12 month Period
18 month Period
ended
ended
30 June
30 June
2024
2023
Notes
£
£
Turnover
3
231,335,295
299,406,455
Cost of sales
(124,308,416)
(163,764,227)
Gross profit
107,026,879
135,642,228
Distribution costs
(46,321,329)
(60,744,065)
Administrative expenses
(29,125,800)
(48,346,667)
Other operating income
104,413
76,669
Operating profit
4
31,684,163
26,628,165
Interest receivable and similar income
8
581,821
699,494
Interest payable and similar expenses
9
(88,572)
(196,804)
Profit before taxation
32,177,412
27,130,855
Tax on profit
10
(8,079,343)
(5,057,988)
Profit for the financial period
24,098,069
22,072,867

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

MOTOR PARTS DIRECT LIMITED
BALANCE SHEET
AS AT
30 JUNE 2024
30 June 2024
- 14 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
11
10,833,628
9,205,684
Current assets
Stocks
12
43,528,294
42,602,991
Debtors falling due after more than one year
13
30,725
30,725
Debtors falling due within one year
13
34,757,461
39,749,115
Cash at bank and in hand
16,728,843
11,248,002
95,045,323
93,630,833
Creditors: amounts falling due within one year
14
(45,177,907)
(56,018,725)
Net current assets
49,867,416
37,612,108
Total assets less current liabilities
60,701,044
46,817,792
Creditors: amounts falling due after more than one year
15
-
0
(536,061)
Provisions for liabilities
Deferred tax liability
17
(1,021,244)
-
(1,021,244)
-
Net assets
59,679,800
46,281,731
Capital and reserves
Called up share capital
19
1,000
1,000
Profit and loss account
59,678,800
46,280,731
Shareholders Funds
59,679,800
46,281,731
The financial statements were approved by the board of directors and authorised for issue on 24 January 2025 and are signed on its behalf by:
S de Waal
Director
Company registration number 03604992 (England and Wales)
MOTOR PARTS DIRECT LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024
- 15 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 January 2022
1,000
49,085,256
49,086,256
18 month Period ended 30 June 2023:
Profit and total comprehensive income
-
22,072,867
22,072,867
Dividends
-
(24,877,392)
(24,877,392)
Balance at 30 June 2023
1,000
46,280,731
46,281,731
12 month Period ended 30 June 2024:
Profit and total comprehensive income
-
24,098,069
24,098,069
Dividends
-
(10,700,000)
(10,700,000)
Balance at 30 June 2024
1,000
59,678,800
59,679,800
MOTOR PARTS DIRECT LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2024
- 16 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
24
29,723,268
53,903,172
Income taxes paid
(7,901,933)
(10,024,439)
Net cash inflow from operating activities
21,821,335
43,878,733
Investing activities
Purchase of tangible fixed assets
(5,584,008)
(5,990,621)
Proceeds from disposal of tangible fixed assets
971,960
3,360,997
Proceeds from disposal of investment property
-
0
2,558,550
Interest received
581,821
699,494
Net cash (used in)/generated from investing activities
(4,030,227)
628,420
Financing activities
Payment of finance leases obligations
(1,521,695)
(1,822,354)
Interest paid
(88,572)
(196,804)
Dividends paid
(10,700,000)
(24,877,392)
Net cash used in financing activities
(12,310,267)
(26,896,550)
Net increase in cash and cash equivalents
5,480,841
17,610,603
Cash and cash equivalents at beginning of year
11,248,002
(6,362,601)
Cash and cash equivalents at end of year
16,728,843
11,248,002
MOTOR PARTS DIRECT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
- 17 -
1
Accounting policies
Company information

Motor Parts Direct Limited is a private company limited by shares incorporated in England and Wales. The registered office is 40 Springwood Drive, Springwood Industrial Estate, Braintree, CM7 2YN.

1.1
Reporting period

The financial statements in the prior period are presented for a period of 18 months, not one year, to align the period with that of the parent company. The comparative amounts presented are not entirely comparable.

1.2
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, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.3
Going concern

The company has been highly cash generative during the year with a closing cash balance in excess of £16m and expects the profitability of the business and cash generation to continue for the foreseeable future. This also manifests in the increasing net assets, stated at close to £60m at the year ended 30 June 2024, compared to £46m at the start of the year, further demonstrating the financial strength of the company.true

 

Motor Parts Direct Limited operates a pooled bank facility with other Motus Group entities through Barclays. The UK bank pool has an uncommitted overdraft facility of £10m.

 

Management have prepared a profit and loss and cash flow forecast for the period to 31 January 2026, indicating that the company is forecast to remain comfortably within the existing bank facility limits throughout the period to 31 January 2026, with no requirement to access the uncommitted bank overdraft facility at any point. This forecast has been reviewed and approved by the Board.

 

By their very nature forecasts and projections are inherently uncertain. Due to the inherent level of uncertainty over future financial performance and cash flows, as well as the importance of the key assumptions underpinning the Company’s projections, sensitivity analysis has been performed to model the impact of more adverse trends compared to those included in the financial projections. These sensitivities model the impact of severe but plausible downside risks to the achievement of the financial projections. In particular, in the scenario of a reduction in forecast revenues of 20%, the forecasted cash flow projections indicate that sufficient funds would be available and there would be no requirement to access the uncommitted bank overdraft facility at any point.

 

Based on the detailed forecasts prepared by management, the Board has a reasonable expectation that Motor Parts Direct Limited has adequate resources to continue to trade for the foreseeable future, being a period of at least 12 months from the date of signing and approving these financial statements. Accordingly, the Board continues to adopt the going concern basis when preparing this Annual Report and Financial Statements.

1.4
Turnover

Turnover is the total receivable by the company for goods supplied, excluding VAT, trade discounts and rebates.

MOTOR PARTS DIRECT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 18 -

Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods has passed to the buyer. This is usually the point that the customer has taken delivery of the stock.

1.5
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Plant and equipment
20% reducing balance
Computer equipment
20% - 33.33% straight line
Motor vehicles
25% - 33.33% reducing balance

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.6
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.7
Stocks

Stocks are valued on the weighted average method and carried at the lower of cost and net realisable value. Provisions are made for obsolete and slow moving items based on management's regular assessment of the condition and age of the inventory.

1.8
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.

MOTOR PARTS DIRECT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 19 -
1.9
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.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

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

MOTOR PARTS DIRECT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 20 -
Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

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

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.10
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.

1.11
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.

MOTOR PARTS DIRECT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 21 -
Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and 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. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.12
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.

1.13
Retirement benefits

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

1.14
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

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.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

MOTOR PARTS DIRECT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 22 -
2
Critical accounting judgement and key sources of estimation uncertainty

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.

Critical estimates

The following area of the business requires the application of a degree of estimation and is considered to have had the most significant effect on amounts recognised in the financial statements.

Stock valuation

The stock valuation calculation employed by the company is based on formulae which determines the number of years (stock turnover) it would take to sell a stock item and then applying appropriate percentage reductions to the category a stock item would fall into. Changes in order levels may move individual items into a different category from one year to another and this method of valuation may cause stock profits or losses to arise. The company is required to value stock on the basis of the lower of cost and net realisable value.

 

Management is of the view that the method of valuation used achieves this very objective. The company actively and holistically reviews the stock valuation on an ongoing basis considering the impact of economic factors and product supply changes while maintaining a consistent approach for comparability purposes.

 

In view of the nature of the method of valuation, and comparing one year against the next, it is not possible to determine the amount, if any, of the impairment loss or the reversal of any impairment loss in an earlier year.

3
Turnover

Turnover and profit before taxation are attributable to one class of business only that are generated in the UK.

 

4
Operating profit
2024
2023
Operating profit for the period is stated after charging/(crediting):
£
£
Exchange losses
1,540
12,656
Depreciation of owned tangible fixed assets
3,141,479
4,581,215
Profit on disposal of tangible fixed assets
(157,375)
(104,679)
Operating lease charges
5,782,231
7,664,961
MOTOR PARTS DIRECT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 23 -
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
300,000
281,500
For other services
Audit-related assurance services
-
0
111,700
300,000
393,200

Audit-related assurance services arose in the prior year in connection with the acquisition of the company by Motus Holdings UK Limited.

6
Employees

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

2024
2023
Number
Number
Selling and distribution
1,677
1,599
Administration
233
231
Total
1,910
1,830

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
46,072,129
63,752,762
Social security costs
3,446,450
5,386,490
Pension costs
874,385
1,410,580
50,392,964
70,549,832
MOTOR PARTS DIRECT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 24 -
7
Directors' remuneration
The amounts shown in note 6 include remuneration in respect of highest paid director as follows:
2024
2023
£
£
Emoluments
299,834
210,970
Company pension contributions to defined contribution schemes
51,321
35,550
351,155
246,520

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2023: 2).

8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
509,179
12,079
Other interest income
72,642
687,415
Total income
581,821
699,494
9
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
14,125
14,034
Other interest on financial liabilities
104
-
0
14,229
14,034
Other finance costs:
Interest on finance leases and hire purchase contracts
74,343
179,470
Other interest
-
0
3,300
88,572
196,804
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
6,298,948
6,312,011
Adjustments in respect of prior periods
(133,489)
6,703
Total current tax
6,165,459
6,318,714
MOTOR PARTS DIRECT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
10
Taxation
2024
2023
£
£
(Continued)
- 25 -
Deferred tax
Origination and reversal of timing differences
1,913,884
(1,260,726)
Total tax charge
8,079,343
5,057,988

The standard rate of corporation tax in the UK was 19% to 31 March 2023 and increased to 25% from 1 April 2023.

 

The tax rate applied in the current period is 25% (2023: 20%).

 

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

2024
2023
£
£
Profit before taxation
32,177,412
27,130,855
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 20.00%)
8,044,353
5,426,171
Tax effect of income not taxable in determining taxable profit
-
0
(17,865)
Gains not taxable
(39,344)
(20,936)
Adjustments in respect of prior years
(133,489)
6,703
Effect of change in corporation tax rate
-
0
143,134
Permanent capital allowances in excess of depreciation
(763,794)
(692,302)
Short term timing difference leading to an increase/(decrease) in taxation
1,913,884
(1,260,725)
Expenses not deductible for tax & income not taxable
(942,267)
1,473,808
Taxation charge for the period
8,079,343
5,057,988
MOTOR PARTS DIRECT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 26 -
11
Tangible fixed assets
Plant and equipment
Computer equipment
Motor vehicles
Total
£
£
£
£
Cost
At 1 July 2023
9,072,963
800,697
11,948,940
21,822,600
Additions
311,609
149,499
5,122,900
5,584,008
Disposals
(352,250)
-
0
(2,461,512)
(2,813,762)
At 30 June 2024
9,032,322
950,196
14,610,328
24,592,846
Depreciation and impairment
At 1 July 2023
5,704,400
490,104
6,422,412
12,616,916
Depreciation charged in the year
620,499
237,008
2,283,972
3,141,479
Eliminated in respect of disposals
(72,635)
-
0
(1,926,542)
(1,999,177)
At 30 June 2024
6,252,264
727,112
6,779,842
13,759,218
Carrying amount
At 30 June 2024
2,780,058
223,084
7,830,486
10,833,628
At 30 June 2023
3,368,563
310,593
5,526,528
9,205,684

Assets under hire purchase or finance lease arrangements are pledged as security under those lease contracts.

 

There were no capital commitments at balance sheet date.

 

Included within motor vehicles are assets with a net book value of £1,229,701 (2023: £1,696,098) being acquired under hire purchase finance contracts.

12
Stocks
2024
2023
£
£
Finished goods and goods for resale
43,528,294
42,602,991

Stock recognised in cost of sales during the year was £161,100,383 (2023: £216,080,435).

MOTOR PARTS DIRECT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 27 -
13
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
22,533,524
22,758,310
Corporation tax recoverable
2,717,615
981,141
Amounts owed by group undertakings
104,000
-
0
Other debtors
809,593
18,124
Prepayments
1,919,572
2,070,587
Accrued income
6,673,157
13,028,313
34,757,461
38,856,475
Deferred tax asset (note 17)
-
0
892,640
34,757,461
39,749,115
2024
2023
Amounts falling due after more than one year:
£
£
Other debtors
30,725
30,725
Total debtors
34,788,186
39,779,840

Amounts owed by group undertakings relate to a short term unsecured loan to Motor Parts Direct (Holdings) Limited which has subsequently been repaid.

 

Other debtors due after more than one year relate to rent deposits repayable at the end of the lease terms.

14
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Obligations under finance leases
16
605,551
1,591,185
Trade creditors
28,477,945
28,601,284
Taxation and social security
3,567,759
3,666,287
Other creditors
136,881
6,862,236
Accruals
12,389,771
15,297,733
45,177,907
56,018,725

The hire purchase finance obligations are secured against the assets acquired under these contracts.

15
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Obligations under finance leases
16
-
0
536,061
MOTOR PARTS DIRECT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 28 -
16
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
605,551
1,591,185
In two to five years
-
0
536,061
In over five years
-
0
-
0
605,551
2,127,246

The hire purchase finance obligations are secured against the assets acquired under these contracts.

 

17
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
Assets
Assets
2024
2023
2024
2023
Balances:
£
£
£
£
Accelerated capital allowances
1,021,244
-
-
892,640
2024
Movements in the year:
£
Asset at 1 July 2023
(892,640)
Charge to profit or loss
1,913,884
Liability at 30 June 2024
1,021,244

The deferred tax liability, determined using a corporation tax rate of 25%, set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.

 

The deferred tax asset at the end of the prior period reversed out following the release of provisions made in respect of tax deductible staff costs.

MOTOR PARTS DIRECT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 29 -
18
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
874,385
1,410,580

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.

 

Accrued employer contributions under auto enrolment at the balance sheet date totalled £70,761 (2023: £63,285).

 

19
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
1,000
1,000
1,000
1,000
20
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2024
2023
£
£
Within one year
5,659,456
5,516,438
Between two and five years
19,954,900
19,075,513
In over five years
8,527,671
6,816,300
34,142,027
31,408,251

There are no long term hire purchase finance obligations remaining as at 30 June 2024 due to recent commercial decisions made to purchase company vehicles outright.

21
Events after the reporting date

There have been no events after the reporting date which would have a material effect on the Company's financial statements as at 30 June 2024.

MOTOR PARTS DIRECT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 30 -
22
Related party transactions

At the year end, the Company was a wholly owned subsidiary of Motor Parts Direct (Holdings) Limited.  The directors regard Motus Holdings Limited as the ultimate parent company and controlling party.

 

It is also the parent company of the largest and smallest group for which group financial statements are prepared. Copies of the consolidated financial statements of Motus Holdings Limited can be obtained from the company's registered office; l Van Buuren Road, Corner Geldenhuis and Van Dort Streets, Bedfordview, 2007, South Africa.

 

The Company has taken advantage of the exemption within FRS102 section 33, not to disclose transactions with directly or indirectly wholly owned group companies. During the year there were no transactions with associates that were not directly or indirectly wholly owned group companies of the group.

23
Ultimate controlling party

The immediate parent undertaking is Motor Parts Direct (Holdings) Limited which is registered in England and Wales.

 

The ultimate operating holding company is Motus Holdings Ltd, a company registered in South Africa, whose registered office is Bedfordview, 1 Van Buuren Road, Cnr Geldenhuis and Van Dort Streets, 2008 South Africa. It is listed on the Johannesburg Stock Exchange.

It is also the parent company of the largest and smallest undertakings to consolidate these financial statements at 30 June 2024.

 

Copies of the consolidated financial statements of Motus Holdings Limited can be obtained from the company registered office; 1 Van Buuren Road, Corner Geldenhuis and Van Dort Streets, Bedfordview, 2007, South Africa.

 

24
Cash generated from operations
2024
2023
£
£
Profit for the year after tax
24,098,069
22,072,867
Adjustments for:
Taxation charged
8,079,343
5,057,988
Finance costs
88,572
196,804
Investment income
(581,821)
(699,494)
Gain on disposal of tangible fixed assets
(157,375)
(104,679)
Depreciation and impairment of tangible fixed assets
3,141,479
4,581,215
Movements in working capital:
Increase in stocks
(925,303)
(10,968,830)
Decrease in debtors
5,835,488
2,081,120
(Decrease)/increase in creditors
(9,855,184)
31,686,181
Cash generated from operations
29,723,268
53,903,172
MOTOR PARTS DIRECT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 31 -
25
Analysis of changes in net funds
1 July 2023
Cash flows
30 June 2024
£
£
£
Cash at bank and in hand
11,248,002
5,480,841
16,728,843
Obligations under finance leases
(2,127,246)
1,521,695
(605,551)
9,120,756
7,002,536
16,123,292
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