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COMPANY REGISTRATION NUMBER: 01875002
Cawdor Cars (Newcastle Emlyn) Limited
Financial Statements
30 April 2024
Cawdor Cars (Newcastle Emlyn) Limited
Financial Statements
Year ended 30 April 2024
Contents
Page
Officers and professional advisers
1
Strategic report
2
Directors' report
4
Independent auditor's report to the member
6
Consolidated statement of income and retained earnings
10
Company statement of income and retained earnings
11
Consolidated statement of financial position
12
Company statement of financial position
13
Consolidated statement of cash flows
14
Notes to the financial statements
15
Cawdor Cars (Newcastle Emlyn) Limited
Officers and Professional Advisers
The board of directors
Mr D K L Davies
Mrs R A M Davies
Mr G W Davies
Mr D W Evans
Mr D G Davies
Company secretary
Mrs R A M Davies
Registered office
Cawdor Garage
New Road
Newcastle Emlyn
Dyfed
SA38 9BA
Auditor
Clements Jones
Chartered accountants & statutory auditor
1 Picton Lane
Swansea
SA1 4AF
Bankers
Barclays Bank Plc
1 Churchill Place
London
United Kingdom
E14 5HP
Cawdor Cars (Newcastle Emlyn) Limited
Strategic Report
Year ended 30 April 2024
The business model
The principal activity of the Group during the year was that of a Motor Dealership with both sales and servicing franchises as well as providers of vehicle finance . The dealerships are based across six sites, Aberystwyth, Cardigan, Carmarthen, Llanelli, Llanybydder and Newcastle Emlyn. The group are always looking for opportunities to expand current franchise partnerships and develop new ones where there is a good strategic fit.
Fair review of business
For the financial year ending 30th April 2024, Cawdor Cars (Newcastle Emlyn) Ltd has continued to demonstrate solid growth in turnover, reflecting the group’s resilience and ability to maintain its market position amidst ongoing challenges. However, despite this growth, the group have faced significant challenges, notably tighter profit margins and escalating business costs, which have directly impacted net profits. The group have achieved a positive increase in turnover for the year, driven by strong customer demand, a solid and expanding product range, and continued efforts to strengthen its market presence. The team’s commitment to excellent customer service and providing quality vehicles has remained a cornerstone of the business strategy. While the top-line performance remains positive, Cawdor Cars has faced increasing pressure on margins. The key contributing factors to these tighter margins are the rising costs of vehicles, fuel, logistics, and the necessary maintenance of service infrastructure. In particular, the group have had to absorb substantial increases in operational expenses across various facets of the business, which have impacted profitability. The group's subsidiary also improved its financial performance during the year through efficiency measures despite a small decrease in turnover. Pre-tax profits have increased to £78,599 (2023 £68,497) and the Company has a sufficient financial assets for the foreseeable future.
Key performance indicators
The Directors undertake detailed analysis of the group's position during the year and at the year end using turnover and profitability as the key performance indicators.
2024 2023 2022 2021 2020
£ £ £ £ £
Sales 36,179,635 31,084,134 30,435,223 23,478,090 22,207,817
Gross Profit 2,561,707 2,587,897 2,545,001 2,199,298 1,336,382
Operating Profit 313,736 1,005,776 770,397 1,016,776 15,498
Principal risks and uncertainties
The impact of general inflationary pressures, the ongoing cost of doing business has been exacerbated by a significant rise in supply chain and operational costs. The global situation, particularly the economic ramifications of the war in Ukraine, has significantly affected supply chains, energy costs, and the broader financial markets, leading to increased costs across both the automotive and service sectors. In addition to the direct impact of the war in Ukraine, the broader economic environment has resulted in persistent inflation, which have further restricted the group's margins. The automotive industry, in particular, has seen an increase in the cost of raw materials and supply chain disruptions, pushing prices up. Furthermore, overhead costs related to staffing, compliance, and technological infrastructure have also seen significant rises, adding pressure to the bottom line. Despite these challenges, Cawdor Cars remains focused on maintaining operational efficiency, but it has become increasingly difficult to offset these rising costs without compromising on quality or customer satisfaction. The group has continued to implement cost-saving measures, streamline operations, and optimize inventory management, though margins remain under pressure.
Future outlook
As Cawdor Cars looks to the year ahead, the company remains committed to navigating the complexities of a challenging economic landscape. The priority will be to continue delivering strong customer value, optimizing operational efficiency, and managing costs effectively. However, external factors, such as the ongoing geopolitical situation, the state of global supply chains, and inflationary pressures, will continue to impact the company's performance in the short term. The management team remains confident that with careful strategic planning, investment in key areas, and adaptability, Cawdor Cars will continue to grow sustainably and return to a trajectory of improved profitability as market conditions become more favourable.
This report was approved by the board of directors on 28 January 2025 and signed on behalf of the board by:
Mr D K L Davies
Director
Cawdor Cars (Newcastle Emlyn) Limited
Directors' Report
Year ended 30 April 2024
The directors present their report and the financial statements of the group for the year ended 30 April 2024 .
Directors
The directors who served the company during the year were as follows:
Mr D K L Davies
Mrs R A M Davies
Mr G W Davies
Mr D W Evans
Mr D G Davies
Dividends
The directors do not recommend the payment of a dividend.
Disclosure of information in the strategic report
The directors, in preparing the strategic report, have complied with s414C of the Companies Act 2006.
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 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 group and the company and the profit or loss of the group 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 group and 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 group and the company's auditor is aware of that information. The auditor is deemed to have been re-appointed in accordance with section 487 of the Companies Act 2006.
This report was approved by the board of directors on 28 January 2025 and signed on behalf of the board by:
Mr D K L Davies
Director
Cawdor Cars (Newcastle Emlyn) Limited
Independent Auditor's Report to the Member of Cawdor Cars (Newcastle Emlyn) Limited
Year ended 30 April 2024
Opinion
We have audited the financial statements of Cawdor Cars (Newcastle Emlyn) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 April 2024 which comprise the consolidated statement of income and retained earnings, company statement of income and retained earnings, consolidated statement of financial position, company statement of financial position, consolidated statement of cash flows 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 group's and of the parent company's affairs as at 30 April 2024 and of the group's profit for the year 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 group 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 group's or the parent 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. 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 year 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 group and the parent 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or - the parent company 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 group's and the parent 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 group or the parent 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: Based on our understanding of the group and industry, we identified that the principal risks of non-compliance with laws and regulations related to health and safety, consumer credit act, licencing, employment law and UK Companies Act and we considered the extent to which any non-compliance might have a material effect on the financial statements. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to the posting of fraudulent journal entries and transactions or bias in estimates. Audit procedures performed by the engagement team included: - Enquiries with management (including correspondence with legal counsel) regarding their consideration of known or suspected instances of non-compliance with laws and regulation and fraud; - Understood the company's policies and controls in relation to the group's compliance with relevant licence requirements; - Identifying and testing journal entries, in particular any journal entries posted with certain unusual account combinations, or with unusual descriptions, and - Challenging assumptions and judgements made by management in respect of critical accounting judgements and significant accounting estimates; There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentation, or through collusion. 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. 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 group's 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 group's or the parent 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 group or the parent 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. - Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion. 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 member, 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 member 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 member as a body, for our audit work, for this report, or for the opinions we have formed.
Mr Matthew Clements
(Senior Statutory Auditor)
For and on behalf of
Clements Jones
Chartered accountants & statutory auditor
1 Picton Lane
Swansea
SA1 4AF
30 January 2025
Cawdor Cars (Newcastle Emlyn) Limited
Consolidated Statement of Income and Retained Earnings
Year ended 30 April 2024
2024
2023
Note
£
£
Turnover
4
36,179,635
31,084,134
Cost of sales
33,617,928
28,496,237
-------------
-------------
Gross profit
2,561,707
2,587,897
Administrative expenses
2,307,971
1,582,121
Other operating income
5
60,000
------------
------------
Operating profit
6
313,736
1,005,776
Other interest receivable and similar income
10
216,503
25
Interest payable and similar expenses
11
69,124
67,010
------------
------------
Profit before taxation
461,115
938,791
Tax on profit
12
122,382
171,895
---------
---------
Profit for the financial year and total comprehensive income
338,733
766,896
---------
---------
Retained earnings at the start of the year
8,344,272
7,577,376
------------
------------
Retained earnings at the end of the year
8,683,005
8,344,272
------------
------------
All the activities of the group are from continuing operations.
Cawdor Cars (Newcastle Emlyn) Limited
Company Statement of Income and Retained Earnings
Year ended 30 April 2024
2024
2023
Note
£
£
Profit for the financial year and total comprehensive income
279,784
711,751
Retained earnings at the start of the year
7,662,795
6,951,044
------------
------------
Retained earnings at the end of the year
7,942,579
7,662,795
------------
------------
Cawdor Cars (Newcastle Emlyn) Limited
Consolidated Statement of Financial Position
30 April 2024
2024
2023
Note
£
£
Fixed assets
Tangible assets
14
2,069,748
1,766,475
Current assets
Stocks
16
5,932,345
5,561,892
Debtors
17
6,789,532
6,342,546
Cash at bank and in hand
48,667
-------------
-------------
12,721,877
11,953,105
Creditors: amounts falling due within one year
19
5,937,769
5,281,948
-------------
-------------
Net current assets
6,784,108
6,671,157
------------
------------
Total assets less current liabilities
8,853,856
8,437,632
Provisions
Taxation including deferred tax
20
165,851
88,360
------------
------------
Net assets
8,688,005
8,349,272
------------
------------
Capital and reserves
Called up share capital
23
5,000
5,000
Profit and loss account
24
8,683,005
8,344,272
------------
------------
Shareholder funds
8,688,005
8,349,272
------------
------------
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 28 January 2025 , and are signed on behalf of the board by:
Mr D K L Davies
Director
Company registration number: 01875002
Cawdor Cars (Newcastle Emlyn) Limited
Company Statement of Financial Position
30 April 2024
2024
2023
Note
£
£
Fixed assets
Tangible assets
14
2,069,748
1,766,475
Investments
15
2
2
------------
------------
2,069,750
1,766,477
Current assets
Stocks
16
5,932,345
5,561,892
Debtors
17
6,570,678
5,936,263
-------------
-------------
12,503,023
11,498,155
Creditors: amounts falling due within one year
19
6,459,343
5,508,477
-------------
-------------
Net current assets
6,043,680
5,989,678
------------
------------
Total assets less current liabilities
8,113,430
7,756,155
Provisions
Taxation including deferred tax
20
165,851
88,360
------------
------------
Net assets
7,947,579
7,667,795
------------
------------
Capital and reserves
Called up share capital
23
5,000
5,000
Profit and loss account
24
7,942,579
7,662,795
------------
------------
Shareholder funds
7,947,579
7,667,795
------------
------------
The profit for the financial year of the parent company was £ 279,784 (2023: £ 711,751 ).
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 28 January 2025 , and are signed on behalf of the board by:
Mr D K L Davies
Director
Company registration number: 01875002
Cawdor Cars (Newcastle Emlyn) Limited
Consolidated Statement of Cash Flows
Year ended 30 April 2024
2024
2023
Note
£
£
Cash flows from operating activities
Profit for the financial year
338,733
766,896
Adjustments for:
Depreciation of tangible assets
182,962
377,976
Other interest receivable and similar income
( 216,503)
( 25)
Interest payable and similar expenses
69,124
67,010
Gains on disposal of tangible assets
( 59,435)
( 71,518)
Tax on profit
122,382
171,895
Accrued income
( 241,392)
( 254,332)
Changes in:
Stocks
( 370,453)
( 1,151,299)
Trade and other debtors
( 446,986)
1,209,507
Trade and other creditors
685,683
101,388
---------
------------
Cash generated from operations
64,115
1,217,498
Interest paid
( 69,124)
( 67,010)
Interest received
216,503
25
Tax paid
( 247,300)
( 164,536)
---------
------------
Net cash (used in)/from operating activities
( 35,806)
985,977
---------
------------
Cash flows from investing activities
Purchase of tangible assets
( 489,987)
( 286,601)
Proceeds from sale of tangible assets
63,187
98,767
---------
------------
Net cash used in investing activities
( 426,800)
( 187,834)
---------
------------
Cash flows from financing activities
Proceeds from borrowings
( 362,728)
---------
------------
Net cash used in financing activities
( 362,728)
---------
------------
Net (decrease)/increase in cash and cash equivalents
( 462,606)
435,415
Cash and cash equivalents at beginning of year
48,667
(386,748)
---------
---------
Cash and cash equivalents at end of year
18
( 413,939)
48,667
---------
---------
Cawdor Cars (Newcastle Emlyn) Limited
Notes to the Financial Statements
Year ended 30 April 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 Cawdor Garage, New Road, Newcastle Emlyn, SA38 9BA, Dyfed.
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.
Financial instruments
Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as either financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.
Disclosure exemptions
The parent company satisfies the criteria of being a qualifying entity as defined in FRS 102. As such, advantage has been taken of the following reduced disclosures available under FRS 102: (a) No cash flow statement has been presented for the company.
Consolidation
The consolidated financial statements incorporate the financial statements of the company and all group undertakings. These are adjusted, where appropriate, to conform to group accounting policies. As a consolidated profit and loss account is published, a separate profit and loss account for the parent company is omitted from the group financial statements by virtue of section 408 of the Companies Act 2006.
Judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions 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.
Revenue recognition
Turnover is the total amount receivable by the group for goods supplied and services provided, excluding VAT and trade discounts. Revenue from the rendering of services is measured by reference to the stage of completion of the service transaction at the end of the reporting period provided that the outcome can be reliably estimated. When the outcome cannot be reliably estimated, revenue is recognised only to the extent that it is probable the expenses recognised will be recovered.
Taxation
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 on all timing differences where the transactions or events that give the company an obligation to pay more tax in the future, or a right to pay less tax in the future, have occurred by the balance sheet date. Deferred tax assets are recognised when it is more likely than not that they will be recovered. Deferred tax is measured using rates of tax that have been enacted or substantially enacted by the balance sheet date.
Goodwill
Goodwill arises on business acquisitions and represents the excess of the cost of the acquisition over the company's interest in the net amount of the identifiable assets, liabilities and contingent liabilities of the acquired business. Goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. It is amortised on a straight-line basis over its useful life. Where a reliable estimate of the useful life of goodwill or intangible assets cannot be made, the life is presumed not to exceed ten years.
Amortisation
Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows:
Goodwill
-
50% straight line
If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.
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.
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:
Freehold property
-
2% straight line
Short leasehold property
-
4% straight line
Plant and machinery
-
15%-33% straight line
Motor vehicles
-
20%-50% straight line
Investment property
Investment property is initially recorded at cost, which includes purchase price and any directly attributable expenditure. Investment property is revalued to its fair value at each reporting date and any changes in fair value are recognised in profit or loss.
Investments
Fixed asset investments are initially recorded at cost, and subsequently stated at cost less any accumulated impairment losses.
Listed investments are measured at fair value with changes in fair value being recognised in profit or loss.
Stocks
Stocks are stated at the lower of cost and net realisable value. Under supply agreements with motor manufacturers, the company has access to"consignment stock" during the consignment period. Where the nature of these supply agreements transfers the risks and rewards to the company, which in substance gives the company control over the stock during the consignment period and liabilities in respect of holding costs, the company recognises this stock in the balance sheet together with an equivalent 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. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
4. Turnover
Turnover arises from:
2024
2023
£
£
Vehicle sales
32,282,925
27,055,802
Parts, bodyshop and service sales
2,876,234
2,697,479
Bonus and finance income
529,215
806,620
Rental and miscellaneous income
491,261
524,233
-------------
-------------
36,179,635
31,084,134
-------------
-------------
The turnover of the company is attributable in whole to its principle activities in the UK.
5. Other operating income
2024
2023
£
£
Management charges receivable
60,000
--------
----
6. Operating profit
Operating profit or loss is stated after charging/crediting:
2024
2023
£
£
Depreciation of tangible assets
182,962
377,976
Gains on disposal of tangible assets
( 59,435)
( 71,518)
Impairment of trade debtors
118,515
33,676
---------
---------
7. Auditor's remuneration
2024
2023
£
£
Fees payable for the audit of the financial statements
18,000
18,000
--------
--------
8. Staff costs
The average number of persons employed by the company during the year amounted to 69 (2023: 66 ).
The aggregate payroll costs incurred during the year, relating to the above, were:
2024
2023
£
£
Wages and salaries
2,062,004
1,785,200
Social security costs
110,520
124,495
Other pension costs
624,591
29,536
------------
------------
2,797,115
1,939,231
------------
------------
9. Directors' remuneration
The directors' aggregate remuneration in respect of qualifying services was:
2024
2023
£
£
Remuneration
809,134
175,782
---------
---------
Remuneration of the highest paid director in respect of qualifying services:
2024
2023
£
£
Aggregate remuneration
255,814
112,354
---------
---------
10. Other interest receivable and similar income
2024
2023
£
£
Interest on cash and cash equivalents
398
Other interest receivable and similar income
216,105
25
---------
----
216,503
25
---------
----
11. Interest payable and similar expenses
2024
2023
£
£
Interest on banks loans and overdrafts
53,303
25,219
Other interest payable and similar charges
15,821
41,791
--------
--------
69,124
67,010
--------
--------
12. Tax on profit
Major components of tax expense
2024
2023
£
£
Current tax:
UK current tax expense
46,437
202,409
Adjustments in respect of prior periods
( 1,546)
( 1,633)
--------
---------
Total current tax
44,891
200,776
--------
---------
Deferred tax:
Origination and reversal of timing differences
77,491
( 28,881)
---------
---------
Tax on profit
122,382
171,895
---------
---------
Reconciliation of tax expense
The tax assessed on the profit on ordinary activities for the year is higher than (2023: lower than) the standard rate of corporation tax in the UK of 25 % (2023: 19.49 %).
2024
2023
£
£
Profit on ordinary activities before taxation
461,115
938,791
---------
---------
Profit on ordinary activities by rate of tax
116,446
182,972
Adjustment to tax charge in respect of prior periods
( 1,546)
( 1,633)
Effect of expenses not deductible for tax purposes
1,607
2,699
Effect of capital allowances and depreciation
5,876
( 12,151)
Rounding on tax charge
( 1)
8
---------
---------
Tax on profit
122,382
171,895
---------
---------
13. Intangible assets
Group and company
Goodwill
£
Cost
At 1 May 2023 and 30 April 2024
168,117
---------
Amortisation
At 1 May 2023 and 30 April 2024
168,117
---------
Carrying amount
At 1 May 2023 and 30 April 2024
---------
At 30 April 2023
---------
14. Tangible assets
Group and company
Freehold property
Short leasehold property
Plant and machinery
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 May 2023
1,430,661
241,426
1,491,421
1,062,216
4,225,724
Additions
63,015
426,972
489,987
Disposals
( 76,544)
( 76,544)
------------
---------
------------
------------
------------
At 30 April 2024
1,430,661
241,426
1,554,436
1,412,644
4,639,167
------------
---------
------------
------------
------------
Depreciation
At 1 May 2023
209,816
103,446
1,300,282
845,705
2,459,249
Charge for the year
8,589
7,680
54,414
112,279
182,962
Disposals
( 72,792)
( 72,792)
------------
---------
------------
------------
------------
At 30 April 2024
218,405
111,126
1,354,696
885,192
2,569,419
------------
---------
------------
------------
------------
Carrying amount
At 30 April 2024
1,212,256
130,300
199,740
527,452
2,069,748
------------
---------
------------
------------
------------
At 30 April 2023
1,220,845
137,980
191,139
216,511
1,766,475
------------
---------
------------
------------
------------
Included within the above is investment property as follows:
Group
Company
£
£
At 1 May 2023 and 30 April 2024
350,000
350,000
------------
---------
At 1 May 2023
350,000
350,000
------------
---------
Mr D K L Davies , a director, has determined that the value of the investment property remains unchanged from it's acquisition value at the balance sheet date based on his knowledge of the local property market.
15. Investments
The group has no investments.
Company
Shares in group undertakings
£
Cost
At 1 May 2023 and 30 April 2024
2
----
Impairment
At 1 May 2023 and 30 April 2024
----
Carrying amount
At 1 May 2023 and 30 April 2024
2
----
At 30 April 2023
2
----
Subsidiaries, associates and other investments
Details of the investments in which the parent company has an interest of 20% or more are as follows:
Class of share
Percentage of shares held
Subsidiary undertakings
CFS (UK) Limited
Ordinary
100
16. Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Raw materials and consumables
5,932,345
5,561,892
5,932,345
5,561,892
------------
------------
------------
------------
17. Debtors
Group
Company
2024
2023
2024
2023
£
£
£
£
Trade debtors
1,452,403
937,088
1,451,913
941,522
Amounts owed by group undertakings
478,364
478,364
Prepayments and accrued income
160,626
182,298
160,626
182,298
Corporation tax repayable
91,052
110,701
Directors loan account
138,643
20,934
138,643
20,934
Other debtors
4,946,808
5,202,226
4,230,431
4,313,145
------------
------------
------------
------------
6,789,532
6,342,546
6,570,678
5,936,263
------------
------------
------------
------------
18. Cash and cash equivalents
Cash and cash equivalents comprise the following:
2024
2023
£
£
Cash at bank and in hand
48,667
Bank overdrafts
( 413,939)
---------
--------
( 413,939)
48,667
---------
--------
19. Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans and overdrafts
413,939
935,514
241,869
Trade creditors
3,760,115
3,733,641
3,760,114
3,732,452
Accruals and deferred income
260,675
502,067
260,675
501,268
Corporation tax
202,409
189,057
Social security and other taxes
37,728
40,769
37,728
40,769
Other creditors
1,465,312
803,062
1,465,312
803,062
------------
------------
------------
------------
5,937,769
5,281,948
6,459,343
5,508,477
------------
------------
------------
------------
The company has a cross guarantee between itself and Datblygau Davies Developments Limited, a company controlled by Mr DKL Davies. The guarantee is secured against land and property held by the company.
The company is also guarantor for it's subsidiary, CFS (UK) Limited.
The company also has a loan from Cawdor Cars (Newcastle Emlyn) Limited Retirements Benefit Scheme, company pension fund of which the directors are trustees. The loan was secured against land and property held by the company.
20. Provisions
Group and company
Deferred tax (note 21)
£
At 1 May 2023
88,360
Additions
77,491
---------
At 30 April 2024
165,851
---------
21. Deferred tax
The deferred tax included in the statement of financial position is as follows:
Group
Company
2024
2023
2024
2023
£
£
£
£
Included in provisions (note 20)
165,851
88,360
165,851
88,360
---------
--------
---------
--------
The deferred tax account consists of the tax effect of timing differences in respect of:
Group
Company
2024
2023
2024
2023
£
£
£
£
Accelerated capital allowances
165,851
88,360
165,851
88,360
---------
--------
---------
--------
22. Employee benefits
Defined contribution plans
The amount recognised in profit or loss as an expense in relation to defined contribution plans was £ 624,591 (2023: £ 29,536 ).
23. Called up share capital
Authorised share capital
2024
2023
No.
£
No.
£
Ordinary shares of £ 1 each
5,000
5,000
5,000
5,000
-------
-------
-------
-------
Issued, called up and fully paid
2024
2023
No.
£
No.
£
Ordinary shares of £ 1 each
5,000
5,000
5,000
5,000
-------
-------
-------
-------
24. Reserves
Profit and loss account - This reserve records retained earnings and accumulated losses.
25. Analysis of changes in net debt
At 1 May 2023
Cash flows
At 30 Apr 2024
£
£
£
Cash at bank and in hand
48,667
(48,667)
Bank overdrafts
(413,939)
(413,939)
--------
---------
---------
48,667
( 462,606)
( 413,939)
--------
---------
---------
26. Directors' advances, credits and guarantees
During the year Mr DKL Davies and Mrs RAM Davies, both directors, had expenses and taxes paid for by the company totalling £116,983 (2023 - £418,817) and provided funds totalling £Nil (2023 - £30,850) to the company during the year. As at 30 April 2024 Mr DKL Davies and Mrs RAM Davies owed the company £120,419 (2023 - £3,437). Mr GW Davies, a director of the company, owed the company £9,569 (2023 - £8,842) at 30 April 2024. Mr DW Evans, a director of the company, owed the company £8,654 (2023 - £8,654) at 30 April 2024.
27. Related party transactions
Company
DSDMG Limited, a company under common management control , was owed £275,237 (2023 - £282,308) by the company at the year end. Datblygiau Davies Developments Limited, a company ultimately controlled by Mr DKL Davies , were provided with an interest free funding totalling £Nil (2023 - £17,323) and repaid £375,000 (2023 - £1,779,739). At the 30 April 2024 £1,003,908 (2023 - £1,378,908) was still outstanding to Cawdor Cars (Newcastle Emlyn) Limited. Eiddo Cawdor Properties Limited, a company owned by Mr DKL Davies , were provided with funding totalling £Nil (2023 - £95) during the year and has repaid £175,000. The amount outstanding in other debtors at 30 April 2024 was £2,526,318 (2023 - £2,701,318). Eiddo Davies Properties Llanarth Limited, a company controlled and owned by Mr DKL Davies , owed the company £163,227 (2023 - £163,227) at the balance sheet date . Cawdor Holdings CYF, a company owned by Mr DKL Davies , is owed £431,237 (2023 - £432,445) at the end of the financial year. The Cawdor Cars Retirement Benefit Scheme, an entity controlled by key management personnel , provided loans to the company totalling £2,100,000 during the year. The Company has repaid £1,400,000 and £700,000 was still outstanding at the balance sheet date. Interest of £15,821 was charged on the loans during the year. Lili Wen Bridal Ltd, a related party , was provided with loans totalling £400,000 during the year and this was included in other debtors at the balance sheet date . The company is also exempt under the terms of FRS 102, related party disclosures, from disclosing related party transactions with entities that are wholly owned members of the Cawdor Cars (Newcastle Emlyn) Limited group.
Cawdor Cars (Newcastle Emlyn) Limited
Notes to the Financial Statements (continued)
Year ended 30 April 2024
28. Controlling party
The ultimate controlling party is Mr DKL Davies who owns 100% of the issued share capital of the company.