Company registration number 11812482 (England and Wales)
SPECTRUM VEHICLE REPAIRERS BODYSHOP GROUP LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
SPECTRUM VEHICLE REPAIRERS BODYSHOP GROUP LIMITED
COMPANY INFORMATION
Directors
Mr MRJ Watts
Mrs L D Watts
Company number
11812482
Registered office
Spectrum House
Sandy Lane
West Thurrock
Grays
Essex
RM20 4BH
Auditor
Hardy & Company
Chartered Accountants
860-862 Garratt Lane
London
SW17 0NB
SPECTRUM VEHICLE REPAIRERS BODYSHOP GROUP LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 7
Profit and loss account
8
Group statement of comprehensive income
9
Group balance sheet
10
Company balance sheet
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Notes to the financial statements
15 - 32
SPECTRUM VEHICLE REPAIRERS BODYSHOP GROUP LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 APRIL 2024
- 1 -

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

Review of the business

The principal activity of the group continues to be that of vehicle repairs. All the turnover arises in the UK.

 

The results for the group for the period, set out on page 8, show a profit before tax of £1,805,959 (2023: £2,071,982). The shareholders' funds in the group total £5,715,957 (2023: £4,221,968).

 

The group will continue its focus on professional expertise to get their customers back on the road with minimum disruption, ensuring repeat business through quality care and high service standards. The directors expect the business environment to remain challenging for the foreseeable future.

 

 

Financial key performance indicators

 

The group monitors a variety of financial key performance indicators including the followings.

 

2024     2023    

 

Sales for the period: £13.1m £12.6m        

Gross profit margin: 39.2%     38.4%     

Sales credit period: 48 days 63 days     

Purchase credit period: 53 days 50 days

 

Financial risks

 

The group sources its spare parts and materials from UK suppliers hence is not exposed to any currency risks.

 

Trade debtors are managed closely by reference to the credit risk, and credit limits are reviewed regularly.

 

 

Development and performance

 

The group's objective is for its continued organic growth based on the high quality workmanship and customer service. 

On behalf of the board

Mr MRJ Watts
Director
31 January 2025
SPECTRUM VEHICLE REPAIRERS BODYSHOP GROUP LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 APRIL 2024
- 2 -

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

Principal activities

The principal activity of the company during the period was of a group holding company.

 

Results and dividends

The results for the year are set out on page 8.

Ordinary dividends were paid amounting to £2,000. The directors do not recommend payment of a further dividend.

Directors

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

Mr MRJ Watts
Mrs L D Watts
Auditor

Hardy & Company were appointed as auditor to the group and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

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 auditor of the company 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 auditor of the company is aware of that information.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
Mr MRJ Watts
Director
31 January 2025
SPECTRUM VEHICLE REPAIRERS BODYSHOP GROUP LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 APRIL 2024
- 3 -

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 group and company, and of the profit or loss of the group 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 group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

SPECTRUM VEHICLE REPAIRERS BODYSHOP GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SPECTRUM VEHICLE REPAIRERS BODYSHOP GROUP LIMITED
- 4 -
Opinion

We have audited the financial statements of Spectrum Vehicle Repairers Bodyshop Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 April 2024 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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 and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and 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 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.

SPECTRUM VEHICLE REPAIRERS BODYSHOP GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SPECTRUM VEHICLE REPAIRERS BODYSHOP GROUP LIMITED
- 5 -

Opinions on other matters prescribed by the Companies Act 2006

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

 

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 their 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:

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 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 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.

SPECTRUM VEHICLE REPAIRERS BODYSHOP GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SPECTRUM VEHICLE REPAIRERS BODYSHOP GROUP LIMITED
- 6 -

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 company and the industry in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to the acts by the company, which were contrary to applicable laws and regulations including fraud, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006. 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 incomplete revenue recognition.

 

Audit procedures performed included: review of the financial statement disclosures to underlying supporting documentation, including review of correspondence with legal advisors, enquiries of management and review of internal audit reports in so far as they related to the financial statements, and testing of journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.

 

There are inherent limitations in the audit procedures described above and the further removed noncompliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. 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 misrepresentations, or through collusion.

As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:

 

 

 

 

 

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

SPECTRUM VEHICLE REPAIRERS BODYSHOP GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SPECTRUM VEHICLE REPAIRERS BODYSHOP GROUP LIMITED
- 7 -

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.

Rehan Shah Khan (Senior Statutory Auditor)
For and on behalf of Hardy & Company, Statutory Auditor
Chartered Accountants
860-862 Garratt Lane
London
SW17 0NB
31 January 2025
SPECTRUM VEHICLE REPAIRERS BODYSHOP GROUP LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 APRIL 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
13,105,320
12,609,990
Cost of sales
(7,969,183)
(7,768,962)
Gross profit
5,136,137
4,841,028
Administrative expenses
(2,811,722)
(2,490,545)
Operating profit
4
2,324,415
2,350,483
Interest receivable and similar income
6
22,131
22,421
Interest payable and similar expenses
7
(540,587)
(300,922)
Profit before taxation
1,805,959
2,071,982
Tax on profit
8
(309,970)
(496,610)
Profit for the financial year
1,495,989
1,575,372
Profit for the financial year is all attributable to the owners of the parent company.
SPECTRUM VEHICLE REPAIRERS BODYSHOP GROUP LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 APRIL 2024
- 9 -
2024
2023
£
£
Profit for the year
1,495,989
1,575,372
Other comprehensive income
-
-
Cash flow hedges gain arising in the year
-
0
-
0
Total comprehensive income for the year
1,495,989
1,575,372
Total comprehensive income for the year is all attributable to the owners of the parent company.
SPECTRUM VEHICLE REPAIRERS BODYSHOP GROUP LIMITED
GROUP BALANCE SHEET
AS AT 30 APRIL 2024
30 April 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
10
1,500,000
1,800,000
Tangible assets
11
9,612,130
5,737,554
11,112,130
7,537,554
Current assets
Stocks
13
71,214
184,566
Debtors
14
2,473,083
2,959,616
Cash at bank and in hand
25,253
486,526
2,569,550
3,630,708
Creditors: amounts falling due within one year
15
(3,871,020)
(3,859,191)
Net current liabilities
(1,301,470)
(228,483)
Total assets less current liabilities
9,810,660
7,309,071
Creditors: amounts falling due after more than one year
16
(4,067,071)
(3,023,292)
Provisions for liabilities
Deferred tax liability
19
27,632
63,811
(27,632)
(63,811)
Net assets
5,715,957
4,221,968
Capital and reserves
Called up share capital
21
300
300
Profit and loss reserves
5,715,657
4,221,668
Total equity
5,715,957
4,221,968

These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.

The financial statements were approved by the board of directors and authorised for issue on 31 January 2025 and are signed on its behalf by:
31 January 2025
Mr MRJ Watts
Mrs L D Watts
Director
Director
Company registration number 11812482 (England and Wales)
SPECTRUM VEHICLE REPAIRERS BODYSHOP GROUP LIMITED
COMPANY BALANCE SHEET
AS AT 30 APRIL 2024
30 April 2024
- 11 -
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
10
1,500,000
1,800,000
Tangible assets
11
57,272
236,092
Investments
750,200
750,200
2,307,472
2,786,292
Current assets
Debtors
14
63,809
182,274
Cash at bank and in hand
2,114
270,885
65,923
453,159
Creditors: amounts falling due within one year
15
(2,221,894)
(2,946,943)
Net current liabilities
(2,155,971)
(2,493,784)
Total assets less current liabilities
151,501
292,508
Creditors: amounts falling due after more than one year
16
(111,650)
(250,001)
Net assets
39,851
42,507
Capital and reserves
Called up share capital
21
300
300
Profit and loss reserves
39,551
42,207
Total equity
39,851
42,507

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £656 (2023 - £94,834).

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 31 January 2025 and are signed on its behalf by:
31 January 2025
Mr MRJ Watts
Mrs L D Watts
Director
Director
Company registration number 11812482 (England and Wales)
SPECTRUM VEHICLE REPAIRERS BODYSHOP GROUP LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2024
- 12 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 May 2022
300
2,836,809
2,837,109
Year ended 30 April 2023:
Profit and total comprehensive income
-
1,575,372
1,575,372
Dividends
9
-
(4,000)
(4,000)
Equity element of shareholders loan previously discounted to present value now reinstated to cost
-
(186,513)
(186,513)
Balance at 30 April 2023
300
4,221,668
4,221,968
Year ended 30 April 2024:
Profit and total comprehensive income
-
1,495,989
1,495,989
Dividends
9
-
(2,000)
(2,000)
Balance at 30 April 2024
300
5,715,657
5,715,957
SPECTRUM VEHICLE REPAIRERS BODYSHOP GROUP LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2024
- 13 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 May 2022
300
203,213
203,513
Year ended 30 April 2023:
Loss and total comprehensive income for the year
-
(94,834)
(94,834)
Dividends
9
-
(4,000)
(4,000)
Equity element of shareholders loan previously discounted to present value now reinstated to cost
-
(62,172)
(62,172)
Balance at 30 April 2023
300
42,207
42,507
Year ended 30 April 2024:
Profit and total comprehensive income
-
(656)
(656)
Dividends
9
-
(2,000)
(2,000)
Balance at 30 April 2024
300
39,551
39,851
SPECTRUM VEHICLE REPAIRERS BODYSHOP GROUP LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 APRIL 2024
- 14 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
26
3,186,648
2,874,114
Interest paid
(540,587)
(300,922)
Income taxes paid
(582,605)
(473,445)
Net cash inflow from operating activities
2,063,456
2,099,747
Investing activities
Purchase of tangible fixed assets
(4,322,242)
(585,228)
Proceeds from disposal of tangible fixed assets
67,794
113,724
Repayment of loans
-
(186,512)
Interest received
22,131
22,421
Net cash used in investing activities
(4,232,317)
(635,595)
Financing activities
Repayment of borrowings
(305,003)
(604,217)
Repayment of bank loans
905,903
(284,633)
Payment of finance leases obligations
554,817
(27,515)
Dividends paid to equity shareholders
(2,000)
(4,000)
Net cash generated from/(used in) financing activities
1,153,717
(920,365)
Net (decrease)/increase in cash and cash equivalents
(1,015,144)
543,787
Cash and cash equivalents at beginning of year
(75,238)
(619,025)
Cash and cash equivalents at end of year
(1,090,382)
(75,238)
Relating to:
Cash at bank and in hand
25,253
486,526
Bank overdrafts included in creditors payable within one year
(1,115,635)
(561,764)
SPECTRUM VEHICLE REPAIRERS BODYSHOP GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
- 15 -
1
Accounting policies
Company information

Spectrum Vehicle Repairers Bodyshop Group Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Spectrum House, Sandy Lane, West Thurrock, Grays, Essex, RM20 4BH.

 

The group consists of Spectrum Vehicle Repairers Bodyshop Group Limited and all of its subsidiaries

1.1
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. The principal accounting policies adopted are set out below.

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

 

1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

SPECTRUM VEHICLE REPAIRERS BODYSHOP GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 16 -
1.3
Basis of consolidation

The financial statements comprise the results, assets and laibiities of the parent company and its subsidiaries from the date of acquisition until the date of disposal.

 

The company’s investments in Spectrum Vehicle Repairers (Essex) Limited and Spectrum Vehicle Repairers (Kent) Limited are included in the parent company financial statements under the acquisition method. Under the acquisition method, the cost of such a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill.

 

Since these subsidiaries were acquired on the initial and subsequent share issues at par, the only costs were the nominal value of the shares.

 

The investments in Spectrum Commercial Bodyshop Limited and Maxemil Limited are included under the merger method of accounting as permitted by FRS 102 in cases of group reconstructions. The purchase of these two companies qualifies as a group reconstruction as it involves the transfer into a group of two or more entities that before the combination had the same equity holders. Under merger accounting the assets and liabilities are not adjusted to fair value and they, together with the results and cash flows are brought into consolidated accounts from the beginning of the financial period in which the business combination occurred, adjusted so as to achieve uniformity of accounting policies.

 

All financial statements are made up to 30 April 2024.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

 

1.4
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.5
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

SPECTRUM VEHICLE REPAIRERS BODYSHOP GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 17 -
1.6
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.7
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:

Freehold land and buildings
5% Straight line
Leasehold land and buildings
Over the term of lease
Plant and equipment
20% Straight line
Fixtures and fittings
20% Straight line
Computers
20% Straight line
Motor vehicles
20% Straight line

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 recognised in the profit and loss account.

1.8
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

SPECTRUM VEHICLE REPAIRERS BODYSHOP GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 18 -

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

 

Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.

 

Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.

 

In the parent company financial statements, investments in associates are accounted for at cost less impairment.

Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

1.9
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible 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.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

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.

SPECTRUM VEHICLE REPAIRERS BODYSHOP GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 19 -
1.10
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.11
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.

1.12
Financial instruments

The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and 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.

SPECTRUM VEHICLE REPAIRERS BODYSHOP GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 20 -
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 group 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 group after deducting all of its liabilities.

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.

SPECTRUM VEHICLE REPAIRERS BODYSHOP GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 21 -
Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.13
Equity instruments

Equity instruments issued by the group 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 group.

1.14
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 group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

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 if, and only if, there is 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.

1.15
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.

1.16
Retirement benefits

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

SPECTRUM VEHICLE REPAIRERS BODYSHOP GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 22 -
1.17
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 leased asset are consumed.

1.18
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Judgements and key sources of estimation uncertainty

In the application of the group’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.

3
Turnover and other revenue
2024
2023
£
£
Other revenue
Interest income
22,131
22,421
4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Fees payable to the group's auditor for the audit of the group's financial statements
14,300
4,100
Depreciation of owned tangible fixed assets
371,654
353,644
Loss/(profit) on disposal of tangible fixed assets
8,218
(54,331)
Amortisation of intangible assets
300,000
300,000
Operating lease charges
339,528
354,614
SPECTRUM VEHICLE REPAIRERS BODYSHOP GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 23 -
5
Employees

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

Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
89
89
9
9

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
4,031,476
3,778,943
353,693
304,524
Social security costs
409,426
397,440
33,835
30,483
Pension costs
67,474
63,456
6,238
5,274
4,508,376
4,239,839
393,766
340,281
6
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
22,131
22,421
7
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
313,025
93,844
Interest on invoice finance arrangements
30,114
22,986
Other interest on financial liabilities
180,519
170,000
Interest on finance leases and hire purchase contracts
16,929
14,092
Total finance costs
540,587
300,922
8
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
346,149
494,424
Adjustments in respect of prior periods
-
0
(1,234)
Total current tax
346,149
493,190
SPECTRUM VEHICLE REPAIRERS BODYSHOP GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
8
Taxation
2024
2023
£
£
(Continued)
- 24 -
Deferred tax
Origination and reversal of timing differences
(36,179)
3,420
Total tax charge
309,970
496,610

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
1,805,959
2,071,982
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.50%)
451,490
404,036
Tax effect of expenses that are not deductible in determining taxable profit
27,442
13,225
Change in unrecognised deferred tax assets
26,660
128
Adjustments in respect of prior years
-
0
(1,234)
Effect of change in corporation tax rate
-
19,071
Permanent capital allowances in excess of depreciation
(283,399)
(7,073)
Depreciation on assets not qualifying for tax allowances
12,777
2,644
Amortisation on assets not qualifying for tax allowances
75,000
65,813
Taxation charge
309,970
496,610
9
Dividends
2024
2023
Recognised as distributions to equity holders:
£
£
Final paid
2,000
4,000
10
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 May 2023 and 30 April 2024
3,000,000
Amortisation and impairment
At 1 May 2023
1,200,000
Amortisation charged for the year
300,000
At 30 April 2024
1,500,000
SPECTRUM VEHICLE REPAIRERS BODYSHOP GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
10
Intangible fixed assets
(Continued)
- 25 -
Carrying amount
At 30 April 2024
1,500,000
At 30 April 2023
1,800,000
Company
Goodwill
£
Cost
At 1 May 2023 and 30 April 2024
3,000,000
Amortisation and impairment
At 1 May 2023
1,200,000
Amortisation charged for the year
300,000
At 30 April 2024
1,500,000
Carrying amount
At 30 April 2024
1,500,000
At 30 April 2023
1,800,000

More information on impairment movements in the year is given in note .

SPECTRUM VEHICLE REPAIRERS BODYSHOP GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 26 -
11
Tangible fixed assets
Group
Freehold land and buildings
Leasehold land and buildings
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
£
Cost
At 1 May 2023
5,215,024
79,862
678,751
64,891
157,874
749,113
6,945,515
Additions
4,011,335
34,853
10,825
-
0
1,749
263,480
4,322,242
Disposals
-
0
-
0
-
0
-
0
-
0
(116,396)
(116,396)
Transfers
-
0
-
0
-
0
(12,128)
12,128
-
0
-
0
At 30 April 2024
9,226,359
114,715
689,576
52,763
171,751
896,197
11,151,361
Depreciation and impairment
At 1 May 2023
210,740
32,314
533,637
26,303
78,751
326,216
1,207,961
Depreciation charged in the year
45,000
8,430
101,020
4,178
33,849
179,177
371,654
Eliminated in respect of disposals
-
0
-
0
-
0
-
0
-
0
(40,384)
(40,384)
At 30 April 2024
255,740
40,744
634,657
30,481
112,600
465,009
1,539,231
Carrying amount
At 30 April 2024
8,970,619
73,971
54,919
22,282
59,151
431,188
9,612,130
At 30 April 2023
5,004,284
47,548
145,114
38,588
79,123
422,897
5,737,554
SPECTRUM VEHICLE REPAIRERS BODYSHOP GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 27 -
Company
Leasehold land and buildings
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 May 2023
38,588
392,516
43,232
61,763
160,923
697,022
Additions
-
0
-
0
-
0
1,749
-
0
1,749
Disposals
-
0
-
0
-
0
-
0
(116,396)
(116,396)
Transfers
-
0
-
0
(2,825)
2,825
-
0
-
0
At 30 April 2024
38,588
392,516
40,407
66,337
44,527
582,375
Depreciation and impairment
At 1 May 2023
9,995
313,640
19,892
45,774
71,629
460,930
Depreciation charged in the year
1,930
78,503
1,994
13,267
8,863
104,557
Eliminated in respect of disposals
-
0
-
0
-
0
-
0
(40,384)
(40,384)
At 30 April 2024
11,925
392,143
21,886
59,041
40,108
525,103
Carrying amount
At 30 April 2024
26,663
373
18,521
7,296
4,419
57,272
At 30 April 2023
28,593
78,876
23,340
15,989
89,294
236,092
12
Subsidiaries

Details of the company's subsidiaries at 30 April 2024 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Spectrum Vehicle Repairers (Essex) Limited
United Kingdom
Ordinary
100.00
Spectrum Vehicle Repairers (Kent) Limited
United Kingdom
Ordinary
100.00
Spectrum Commercial Bodyshop Limited
United Kingdom
Ordinary
100.00
Maxemil Limited
United Kingdom
Ordinary
100.00
13
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Work in progress
71,214
184,566
-
-
SPECTRUM VEHICLE REPAIRERS BODYSHOP GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 28 -
14
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
2,077,211
2,603,941
532
588
Amounts owed by group undertakings
-
-
-
121,705
Other debtors
88,045
6,758
4,030
-
0
Prepayments and accrued income
307,827
348,917
59,247
59,981
2,473,083
2,959,616
63,809
182,274
15
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
17
1,400,267
846,396
16,491
1,134
Obligations under finance leases
18
235,834
123,896
-
0
-
0
Trade creditors
1,397,505
1,279,708
43,833
26,873
Amounts owed to group undertakings
-
0
-
0
2,151,970
2,754,944
Corporation tax payable
173,968
410,424
(20,000)
79,812
Other taxation and social security
478,626
580,632
21,500
67,965
Other creditors
138,376
549,969
2,000
4,000
Accruals and deferred income
46,444
68,166
6,100
12,215
3,871,020
3,859,191
2,221,894
2,946,943
16
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
17
2,518,823
1,612,920
-
0
-
0
Obligations under finance leases
18
617,460
174,581
-
0
-
0
Other borrowings
17
930,788
1,235,791
111,650
250,001
4,067,071
3,023,292
111,650
250,001
SPECTRUM VEHICLE REPAIRERS BODYSHOP GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 29 -
17
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans
2,803,455
1,897,552
-
0
-
0
Bank overdrafts
1,115,635
561,764
16,491
1,134
Other loans
930,788
1,235,791
111,650
250,001
4,849,878
3,695,107
128,141
251,135
Payable within one year
1,400,267
846,396
16,491
1,134
Payable after one year
3,449,611
2,848,711
111,650
250,001

The bank borrowings are secured by fixed charges over the freehold properties of the group and cross guarantee & debenture between all the intergroup companies.

18
Finance lease obligations
Group
Company
2024
2023
2024
2023
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
235,834
123,896
-
0
-
0
In two to five years
617,460
174,581
-
0
-
0
853,294
298,477
-
-

Finance lease payments represent rentals payable by the company or group for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

19
Deferred taxation

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

Liabilities
Liabilities
2024
2023
Group
£
£
Accelerated capital allowances
27,632
63,811
The company has no deferred tax assets or liabilities.
SPECTRUM VEHICLE REPAIRERS BODYSHOP GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
19
Deferred taxation
(Continued)
- 30 -
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 May 2023
63,811
-
Credit to profit or loss
(36,179)
-
Liability at 30 April 2024
27,632
-
20
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
67,474
63,456

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

21
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
300
300
300
300
22
Operating lease commitments
Lessee

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

Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
275,504
275,504
-
-
Between two and five years
860,160
860,160
-
-
In over five years
1,502,160
1,777,664
-
-
2,637,824
2,913,328
-
-
SPECTRUM VEHICLE REPAIRERS BODYSHOP GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 31 -
23
Related party transactions

The following amounts were outstanding at the reporting end date:

Amounts due to related parties
2024
2023
£
£
Group
Mr and Mrs Watts
-
1,435,968
Company
Mr and Mrs Watts
126,050
254,000

The amounts outstanding are unsecured and and interest is payable at different rates but at rates not exceeding 15% per annum.

 

The total interest charged in the accounts relating to the above loans is £170,000 (2023: £170,000)

24
Directors' transactions

Dividends totalling £2,000 (2023 - £4,000) were paid in the year in respect of shares held by the company's directors.

25
Controlling party

During the period the company was under the control of Mr and Mrs Watts who are both directors and shareholders of the company.

26
Cash generated from group operations
2024
2023
£
£
Profit after taxation
1,495,989
1,575,372
Adjustments for:
Taxation charged
309,970
496,610
Finance costs
540,587
300,922
Investment income
(22,131)
(22,421)
Loss/(gain) on disposal of tangible fixed assets
8,218
(54,331)
Amortisation and impairment of intangible assets
300,000
300,000
Depreciation and impairment of tangible fixed assets
371,654
353,645
Movements in working capital:
Decrease/(increase) in stocks
113,352
(76,334)
Decrease/(increase) in debtors
486,533
(40,569)
(Decrease)/increase in creditors
(417,524)
41,220
Cash generated from operations
3,186,648
2,874,114
SPECTRUM VEHICLE REPAIRERS BODYSHOP GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 32 -
27
Analysis of changes in net debt - group
1 May 2023
Cash flows
30 April 2024
£
£
£
Cash at bank and in hand
486,526
(461,273)
25,253
Bank overdrafts
(561,764)
(553,871)
(1,115,635)
(75,238)
(1,015,144)
(1,090,382)
Borrowings excluding overdrafts
(3,133,343)
(600,900)
(3,734,243)
Obligations under finance leases
(298,477)
(554,817)
(853,294)
(3,507,058)
(2,170,861)
(5,677,919)
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