Company registration number 09947344 (England and Wales)
SPOTMECHANIC LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
SPOTMECHANIC LIMITED
COMPANY INFORMATION
Directors
Mr C Arvanitis
Mr G Dimopoulos
Mr J Iserte Vicente
Mr G Ioannidis
(Appointed 8 August 2023)
Company number
09947344
Registered office
21 Aylmer Parade
Aylmer Road
London
N2 0AT
Auditor
Cooper Parry Group Limited
St James Building
79 Oxford Street
Manchester
M1 6HT
SPOTMECHANIC LIMITED
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4 - 6
Independent auditor's report
7 - 10
Group statement of comprehensive income
11
Group statement of financial position
12 - 13
Group statement of changes in equity
14 - 15
Group statement of cash flows
16
Parent company statement of financial position
17
Parent company statement of changes in equity
18
Notes to the financial statements
19 - 43
SPOTMECHANIC LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

The directors present the strategic report for the year ended 31 December 2023.

Review of the business

Spotmechanic Ltd and its subsidiaries’ ("the group") main activity is trading and leasing of used vehicles, operating under the brand “Spotawheel”. The group’s main vision is to foster a team of exceptional people that will challenge and change the used cars status quo, delivering exceptional experiences for the customers and partners throughout Europe.

On-site inspection services for used cars are provided, including roadworthiness tests and audit reports ensuring that the vehicles are checked and safe. The group specialises in visual opinions, specialised equipment, floor checks and test drive inspections.

The group was incorporated in January 2016 and its’ registered head office is based in London, however it has subsidiaries in Greece, Poland, Germany and Romania.

Spotawheel has revolutionised the used car market by offering car trading and leasing services, based on trust and transparency, by doing the following:

1.

Selected used cars based on quality and reliability (and not profit),

2.

Written Technical Inspection Report of 200+ points,

3.

Demonstration and Test drive at our showroom or at the place desired by the buyer,

4.

Low costs and low profit margins so that value passes to the seller and buyer,

5.

Up to 5 years warranty as an added bonus,

6.

All available payment methods, exchange, financing and leasing,

7.

Delivery throughout Greece, Romania and Poland,

8.

7 days or 300 km Right to return the car, no questions asked,

9.

An easy and transparent process, from start to finish.

Principal risks and uncertainties

Key risks to the group fall into the one main category being operational risk.

Material operational risks have been identified as follows:

 

Liquidity risk

Liquidity risk is managed through ongoing short term (13 week) and longer term (1 year) cashflow forecasting. Working capital requirements are reviewed and monitored by senior management and are managed at a group level to ensure the most efficient use of available working capital resources.

 

Interest rate and financing risk

Interest rate and financing risks are material due to the financing of the growth and the higher interest rate environment. Debt levels and associated interest costs are monitored closely by senior management and the Directors are involved in the negotiation of lending arrangements and terms.

 

Credit risk

Credit risk is managed at the operating company level with oversight from the group especially around the monitoring of overdue receivables. Each subsidiary is responsible for assessing the credit risk of their customers.

SPOTMECHANIC LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Development and performance

The strategic targets of the group are as the follows:

 

In terms of performance the group is aiming to increase total sales (both trading and leasing) by 20%. Despite this growth in sales, total revenue is expected to increase by a lower percentage (approx. 15%) as the sales mix shifts towards leasing.

 

In 2024 the Group successfully raised a total of €6 million through two financing transactions, to support ongoing operations and its strategic targets.

Key performance indicators

 

2023

2022

2021

 

€000

€000

€000

Turnover

45,371

48,290

34,071

Gross profit (GP)

6,914

3,360

2,779

GP percentage (%)

15.2

7.0

8.2

Profit(Loss) before tax

(13,385)

(19,056)

(6,371)

Shareholders funds

7,152

10,163

(2,975)

Other non-financial key performance indicators

In terms of sales units, the group had 3,248 trading sales in 2023 (3,708 in 2022) and 2,509 new leasing contracts in 2023 (603 new leasing contracts in 2022, when leasing was introduced as a new product for Spotawheel).

 

Unique visitors in Spotawheel's website throughout the year decreased to 6.7 million in 2023 from 13.4 million in 2022. Number of PI's (Purchase intention) of 2023 amounted to 79 thousand while in 2022 the number was 82 thousand. Conversion rate (PIs turning to actual sale) increased from 5.2% in 2022 to 7.3% in 2023 at group level.

Our financial performance

The financial results for the period to 31 December 2023 are reflected in the financial statements and notes that follow.

Income

Gross profit is a key performance indicator of subsidiary company operations. Gross profit was €6.9 million for the period representing a healthy margin of 15.2% on group revenue of €45.4 million.

Consolidated revenues reflect the turnover of all of the entities in the group.

Expenditure

Operating expenditure represents operational costs incurred by the subsidiary entities as well as parent company expenses.

SPOTMECHANIC LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
Section 172(1) Statement

The Directors, in line with their duties under section 172 of the Companies Act 2006, act in a way they consider, in good faith, would be most likely to promote the success of the company for the benefit of its members, and in doing so have regard to a range of matters when making decisions for the long-term.

Key decisions and matters that are of strategic importance to the group are appropriately informed by section 172 factors.

Board training and support on section 172 duties

All Directors receive guidance on their statutory duties including section 172.

Stakeholders

The Board’s responsibility to promote the long-term success of the group relies on inputs from, and positive relationships with, a wide range of stakeholders.

Employees

The group's policy is to consult and discuss with employees, through meetings, on matters likely to affect employees' interests. Information on matters of concern to employees is given through periodic internal publications which seek to achieve a common awareness on the part of all employees of the strategic and economic factors affecting the group's performance. Employee resources are also available through the human resources functions in place at each subsidiary company.

Suppliers

We maintain strong relationships with our suppliers through consistent communication and reporting of key figures and statistics on a regular basis. The directors recognise the importance of the relationship with these suppliers and will continue to foster these strong relationships.

Principal decisions

When making decisions, the Directors have regard to the longer-term impact of such decisions and any possible impact on all stakeholders. All major business decisions are conducted at Board level and appropriate consideration is given to the various risk factors and long-term implications prior to these decisions being made. The day-to-day decisions are delegated to key members of management staff by the Board; however, these decisions are closely monitored through regular management meetings. Specialist external advice is also sought where appropriate for major decisions taken by the Board.

On behalf of the board

Mr C Arvanitis
Director
31 January 2025
SPOTMECHANIC LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -

The directors present their annual report and financial statements for the year ended 31 December 2023.

Principal activities

The principal activity of the group continued is to provide technical inspection, evaluation, buy, sell, promotion, rental, lease or any other automotive related services through any subsidiary (being 100% subsidiary) in any country, that is already established or will be established in the future.

Results and dividends

The results for the year are set out on page 11.

No ordinary dividends were paid. The directors do not recommend payment of a further dividend.

No preference dividends were paid. The directors do not recommend payment of a final 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 C Arvanitis
Mr G Dimopoulos
Mr J Iserte Vicente
Mr G Ioannidis
(Appointed 8 August 2023)
Supplier payment policy

The group's current policy concerning the payment of trade creditors is to follow the CBI's Prompt Payers Code (copies are available from the CBI, Centre Point, 103 New Oxford Street, London WC1A 1DU).

The group's current policy concerning the payment of trade creditors is to:

 

· settle the terms of payment with suppliers when agreeing the terms of each transaction;

· ensure that suppliers are made aware of the terms of payment by inclusion of the relevant terms in contracts; and

· pay in accordance with the company's contractual and other legal obligations.

 

Trade creditors of the group at the year end were equivalent to 21.8 day's purchases, based on the average daily amount invoiced by suppliers during the year.

Disabled persons

Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the company's continues and that the appropriate training is arranged. It is the policy of the company that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.

Employee involvement

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

 

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

 

The group, as a means of further encouraging the involvement of employees in the group's performance, has put in place a share-based payment agreements for its employees and executives. Based on the existing agreements, the employees and executives are granted the right to receive share-based payment agreements (shares) of the parent company, provided that certain vesting conditions have been met.

SPOTMECHANIC LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 5 -
Auditor

The audit business of UHY Hacker Young Manchester LLP was acquired by Cooper Parry Group Limited on 30 September 2024. UHY Hacker Young Manchester LLP has resigned as auditor and Cooper Parry Group Limited has been appointed in its place.

 

The auditors, Cooper Parry Group Limited, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

Energy and carbon report

As each subsidiary company is exempt from the requirements, they are excluded from the report. The parent Company is also considered to be exempt from the requirement on the basis that it consumes less than 40,000kWh.

Statement of directors' responsibilities

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the group and parent company financial statements in accordance with International Financial Reporting Standards (IFRSs) as adopted by the United Kingdom and have elected top prepare the parent company financial statements in accordance with UK accounting standards and applicable law including FRS 101 reduced disclosure framework. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period.

 

In preparing these financial statements, International Accounting Standard 1 requires that directors:

 

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.

Statement of disclosure to auditor

Each director in office at the date of approval of this annual report confirms that:

 

This confirmation is given and should be interpreted in accordance with the provisions of section 418 of the Companies Act 2006.

SPOTMECHANIC LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 6 -
On behalf of the board
Mr C Arvanitis
Director
31 January 2025
SPOTMECHANIC LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SPOTMECHANIC LIMITED
- 7 -
Opinion

We have audited the financial statements of Spotmechanic Limited (the ‘parent company’) and its subsidiaries (the ‘group’) for the year ended 31 December 2023 which comprise the group statement of comprehensive income, the group and parent company statement of financial position, the group and parent company statement of changes in equity, the group statement of cash flows and the group and parent company notes to the financial statements, including significant accounting policies.

 

The financial reporting framework that has been applied in the preparation of the group financial statements is applicable law and UK adopted international accounting standards. The financial reporting framework that has been applied in the preparation of the parent company financial statements is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 101 Reduced Disclosure Framework (United Kingdom Generally Accepted Accounting Practice). The financial reporting framework that has been applied in the parent company financial statements is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 101 Reduced Disclosure Framework (United Kingdom Generally Accepted Accounting Practice).

In our opinion:

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.

SPOTMECHANIC LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SPOTMECHANIC LIMITED
- 8 -

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.

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 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.

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

SPOTMECHANIC LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SPOTMECHANIC LIMITED
- 9 -

Identifying and assessing potential risks related to irregularities

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, we considered the following:

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas: fraudulent reporting and misappropriation of assets. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override and irregularities in the recording of revenue recognition.

We also obtained an understanding of the legal and regulatory frameworks the Company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act and tax legislation.

 

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the Company’s ability to operate or to avoid a material penalty. These include regulations around Health and Safety.

 

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.

Our procedures to respond to risks identified included the following:

 

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.

SPOTMECHANIC LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SPOTMECHANIC LIMITED
- 10 -

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.

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.

Ryan Wear BSc ACA (Senior Statutory Auditor)
For and on behalf of Cooper Parry Group Limited
3 February 2025
Statutory Auditor
St James Building
79 Oxford Street
Manchester
M1 6HT
SPOTMECHANIC LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
2023
2022
Notes
Revenue
3
45,370,984
48,290,004
Cost of sales
(38,457,195)
(44,929,870)
Gross profit
6,913,789
3,360,134
Other operating income
520,740
268,231
Distribution costs
(5,336,131)
(4,728,977)
Administrative expenses
(10,792,032)
(14,936,187)
Operating loss
5
(8,693,634)
(16,036,799)
Investment revenues
9
4,702
27,639
Finance costs
10
(4,696,279)
(3,046,355)
Loss before taxation
(13,385,211)
(19,055,515)
Income tax expense
11
(146,974)
(33,029)
Loss for the year
(13,532,185)
(19,088,544)
Other comprehensive income:
Items that may be reclassified to profit or loss
Currency translation differences:
- Translation gain/(loss) arising in the year
131,807
(44,750)
Total items that may be reclassified to profit or loss
131,807
(44,750)
Total other comprehensive income for the year
131,807
(44,750)
Total comprehensive income for the year
(13,400,378)
(19,133,294)
Loss for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.

The income statement has been prepared on the basis that all operations are continuing operations.

SPOTMECHANIC LIMITED
GROUP STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2023
31 December 2023
- 12 -
2023
2022
Notes
Non-current assets
Intangible assets
13
28,850
29,055
Property, plant and equipment
14
30,683,648
8,352,055
Right-of-use assets
14
2,282,997
2,495,116
Other receivables
17
188,628
104,292
Deferred tax asset
31
238,889
118,182
33,423,012
11,098,700
Current assets
Inventories
16
29,890,010
35,485,000
Trade and other receivables
17
8,071,601
3,323,198
Cash and cash equivalents
5,203,889
13,145,702
43,165,500
51,953,900
Current liabilities
Trade and other payables
24
4,739,023
4,664,238
Current tax liabilities
174,381
91,467
Borrowings
20
1,767,482
2,732,254
Lease liabilities
30
621,379
432,455
7,302,265
7,920,414
Net current assets
35,863,235
44,033,486
Non-current liabilities
Trade and other payables
24
1,840,976
98,293
Borrowings
20
58,324,128
42,691,836
Lease liabilities
30
1,770,792
2,162,037
Deferred tax liabilities
31
174,358
1,687
Retirement benefit obligations
32
23,721
15,245
62,133,975
44,969,098
Net assets
7,152,272
10,163,088
Equity
Called up share capital
28
718,418
491,314
Share premium account
29
50,507,082
40,221,186
Other reserve
33
1,259,657
1,377,659
Reserve from business combination
34
65,000
65,000
Currency translation reserve
35
(89,501)
(221,308)
Retained earnings
(45,308,384)
(31,770,763)
Total equity
7,152,272
10,163,088
SPOTMECHANIC LIMITED
GROUP STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT
31 DECEMBER 2023
31 December 2023
- 13 -
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:
Mr C Arvanitis
Director
Company registration number 09947344 (England and Wales)
SPOTMECHANIC LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
Share capital
Share premium account
Other reserve
Reserve from business combination
Currency translation reserve
Retained earnings
Total
Notes
Balance at 1 January 2022
363,983
8,991,017
463,585
65,000
(176,558)
(12,682,219)
(2,975,192)
Year ended 31 December 2022:
Loss
-
-
-
-
-
(19,088,544)
(19,088,544)
Other comprehensive income:
Currency translation differences
-
-
-
-
(44,750)
-
0
(44,750)
Total comprehensive income
-
-
-
-
(44,750)
(19,088,544)
(19,133,294)
Transactions with owners:
Issue of share capital
28
127,331
31,230,169
-
-
-
-
31,357,500
Reserve for share based payments
-
-
909,981
-
-
-
909,981
Remeasurements of defined benefit pension plans
-
-
5,231
-
-
-
5,231
Deferred tax on revaluation of accrued pensions
-
-
(1,138)
-
-
-
(1,138)
Balance at 31 December 2022
491,314
40,221,186
1,377,659
65,000
(221,308)
(31,770,763)
10,163,088
SPOTMECHANIC LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
Share capital
Share premium account
Other reserve
Reserve from business combination
Currency translation reserve
Retained earnings
Total
Notes
- 15 -
Year ended 31 December 2023:
Loss
-
-
-
-
-
(13,532,185)
(13,532,185)
Other comprehensive income:
Currency translation differences
-
-
-
-
131,807
-
0
131,807
Total comprehensive income
-
-
-
-
131,807
(13,532,185)
(13,400,378)
Transactions with owners:
Issue of share capital
28
227,102
10,285,896
-
-
-
-
10,512,998
Transfer to other reserves
-
-
5,296
-
-
(5,296)
-
Reserve for share based payments
-
-
(129,796)
-
-
-
(129,796)
Remeasurements of defined benefit pension plans
-
-
6,498
-
-
-
6,498
Other movements
2
-
-
-
-
-
2
Balance at 31 December 2023
718,418
50,507,082
1,259,657
65,000
(89,501)
(45,308,384)
7,152,272
SPOTMECHANIC LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 16 -
2023
2022
Notes
Cash flows from operating activities
Cash absorbed by operations
39
(3,108,387)
(40,396,584)
Interest paid
(4,712,232)
(3,046,355)
Income taxes paid
(69,429)
(162,145)
Net cash outflow from operating activities
(7,890,048)
(43,605,084)
Investing activities
Purchase of intangible assets
-
0
(1,029)
Purchase of property, plant and equipment
(25,333,606)
(7,811,884)
Proceeds from disposal of property, plant and equipment
430,749
16,978
Interest received
4,702
27,639
Net cash used in investing activities
(24,898,155)
(7,768,296)
Financing activities
Proceeds from issue of shares
10,512,998
25,497,500
Proceeds from borrowings
22,522,212
40,037,442
Repayment of borrowings
(7,854,692)
(2,926,989)
Proceeds from leases
1,206,240
1,635,597
Payment of lease liabilities
(1,408,561)
(944,154)
Net cash generated from financing activities
24,978,197
63,299,396
Net (decrease)/increase in cash and cash equivalents
(7,810,006)
11,926,016
Cash and cash equivalents at beginning of year
13,145,702
1,174,936
Effect of foreign exchange rates
(131,807)
44,750
Cash and cash equivalents at end of year
5,203,889
13,145,702
SPOTMECHANIC LIMITED
COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023
31 December 2023
- 17 -
2023
2022
Notes
Non-current assets
Investments
12
49,960,000
37,315,000
Current assets
Trade and other receivables
18
4,668,591
-
Cash and cash equivalents
467,990
9,147,456
5,136,581
9,147,456
Current liabilities
(1,630,988)
(1,988,549)
Net current assets
3,505,593
7,158,907
Total assets less current liabilities
53,465,593
44,473,907
Non-current liabilities
(2,941,228)
(4,044,217)
Net assets
50,524,365
40,429,690
Equity
Called up share capital
718,418
491,314
Share premium account
50,507,082
40,221,186
Other reserves
65,000
65,000
Retained earnings
(766,135)
(347,810)
Total equity
50,524,365
40,429,690

As permitted by trues408 Companies Act 2006, the company has not presented its own income statement and related notes. The company’s loss for the year was €418,325 (2022 - €84,981).

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 C Arvanitis
Director
Company registration number 09947344 (England and Wales)
SPOTMECHANIC LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 18 -
Share capital
Share premium account
Other reserve
Retained earnings
Total
Notes
Balance at 1 January 2022
363,983
9,056,017
-
(432,791)
8,987,209
Year ended 31 December 2022:
Profit and total comprehensive income
-
-
-
84,981
84,981
Transactions with owners:
Issue of share capital
127,331
31,230,169
-
-
31,357,500
Other reserves
-
(65,000)
65,000
-
-
Balance at 31 December 2022
491,314
40,221,186
65,000
(347,810)
40,429,690
Year ended 31 December 2023:
Loss and total comprehensive income
-
-
-
(418,325)
(418,325)
Transactions with owners:
Issue of share capital
227,102
10,285,896
-
-
10,512,998
Other reserves
2
-
-
-
2
Balance at 31 December 2023
718,418
50,507,082
65,000
(766,135)
50,524,365
SPOTMECHANIC LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 19 -
1
Accounting policies
Company information

Spotmechanic Limited is a private company limited by shares incorporated in England and Wales. The registered office is 21 Aylmer Parade, Aylmer Road, London, N2 0AT. The company's principal activities and nature of its operations are disclosed in the directors' report.

 

The group consists of Spotmechanic Limited and all of its subsidiaries.

1.1
Accounting convention

The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted for use in the United Kingdom and with those parts of the Companies Act 2006 applicable to companies reporting under IFRS, except as otherwise stated.

 

The parent company financial statements have been prepared in accordance with Financial Reporting Standard 101 Reduced Disclosure Framework (“FRS 101”). In preparing these financial statements, the Company applies the recognition, measurement and disclosure requirements of UK-adopted International Financial Reporting Standards, but makes amendments where necessary in order to comply with Companies Act 2006 and has taken advantage of the FRS 101 disclosure exemptions for financial instruments, presentation of a cash flow statement, and disclosure of related party transactions.

The financial statements are prepared in euros, which is the functional currency of the group. 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.

1.2
Business combinations

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.

1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Spotmechanic Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 31 December 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

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.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

SPOTMECHANIC LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 20 -
1.4
Going concern

In determining the appropriate basis of preparation of the financial statements for the period ended 31true December 2023, the directors are required to consider whether the group and parent company can continue in operational existence for the foreseeable future, being a period of at least 12 months from the date of approval of these financial statements (the “going concern period”).

 

The group has prepared and the Board has reviewed cash flow forecasts for a period of twelve months from the date of approval of these financial statements and also considered whether significant matters are expected to arise thereafter. The directors have reviewed the group’s plans to meet obligations as they fall due and are satisfied at the current time that these plans are appropriate and adequate.

 

Based on the above analysis, the directors believe that the group’s borrowing facilities and anticipated future cash inflows from operations will provide adequate funding over the going concern period. The group is well placed to manage business risk effectively and the Board reviews the group’s performance against budgets and forecasts on a regular basis and is satisfied that the group is performing in line with expectations.

 

The directors have at the time of approving the financial statements, 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
Revenue

Revenue is measured based on the consideration specified in a contract with a customer and excludes amounts collected on behalf of third parties. The group recognises revenue when it transfers control of a product or service to a customer.

 

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.

The group recognises revenue from the following major sources:

The nature, timing of satisfaction of performance obligations and significant payment terms of the group's major sources of revenue are as follows:

Sale of Goods

The revenue from the sale of goods is recognised when the risks and benefits of owning the goods have been transferred to the buyer, usually after goods have been sent.

Revenue from provision of services

The revenue from provision of services is accounted for based on the stage of completion of the service in relation to its estimated total cost.

Commissions

The revenue from commission is recognised at the point the provision of service has been provided usually at the stage of completion.

SPOTMECHANIC LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 21 -
Other income

Other income is comprised of income from interest which is recognised using the effective rate method which is the rate that accurately discounts estimated future cash flows to be collected or paid in cash during the estimated life cycle of the financial asset or liability, or when required for a shorter period of time, with its net book value.

1.6
Intangible assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

 

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

1.7
Property, plant and equipment

Property, plant and equipment are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.

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

Freehold buildings
25 years straight line
Leasehold buildings
over the term of the lease (2-8 years straight line)
Fixtures and fittings
5-10 years straight line
Plant and equipment
5-10 years straight line
Motor vehicles
10 years 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 income statement.

1.8
Non-current investments

Interests in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

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

1.9
Impairment of tangible and intangible assets

At each reporting 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 group estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for impairment annually, and whenever there is an indication that the asset may be impaired.

SPOTMECHANIC LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 22 -

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.

 

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

1.10
Inventories

Inventories 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 inventories to their present location and condition.

 

• Raw materials: purchase cost on a first-in/first-out basis.

• Finished goods: purchase cost on a first-in/first-out basis.

1.11
Cash and cash equivalents

Cash and cash equivalents 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 assets

Financial assets are recognised in the group's statement of financial position when the group becomes party to the contractual provisions of the instrument. Financial assets are classified into specified categories, depending on the nature and purpose of the financial assets.

 

At initial recognition, financial assets classified as fair value through profit and loss are measured at fair value and any transaction costs are recognised in profit or loss. Financial assets not classified as fair value through profit and loss are initially measured at fair value plus transaction costs.

Financial assets at fair value through profit or loss

When any of the above-mentioned conditions for classification of financial assets is not met, a financial asset is classified as measured at fair value through profit or loss. Financial assets measured at fair value through profit or loss are recognized initially at fair value and any transaction costs are recognised in profit or loss when incurred. A gain or loss on a financial asset measured at fair value through profit or loss is recognised in profit or loss, and is included within finance income or finance costs in the statement of income for the reporting period in which it arises.

Financial assets held at amortised cost

Financial instruments are classified as financial assets measured at amortised cost where the objective is to hold these assets in order to collect contractual cash flows, and the contractual cash flows are solely payments of principal and interest. They arise principally from the provision of goods and services to customers (eg trade receivables). They are initially recognised at fair value plus transaction costs directly attributable to their acquisition or issue, and are subsequently carried at amortised cost using the effective interest rate method, less provision for impairment where necessary.

SPOTMECHANIC LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 23 -
Financial assets at fair value through other comprehensive income

Debt instruments are classified as financial assets measured at fair value through other comprehensive income where the financial assets are held within the group’s business model whose objective is achieved by both collecting contractual cash flows and selling financial assets, and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

 

A debt instrument measured at fair value through other comprehensive income is recognised initially at fair value plus transaction costs directly attributable to the asset. After initial recognition, each asset is measured at fair value, with changes in fair value included in other comprehensive income. Accumulated gains or losses recognised through other comprehensive income are directly transferred to profit or loss when the debt instrument is derecognised.

The parent company has made an irrevocable election to recognize changes in fair value of investments in equity instruments through other comprehensive income, not through profit or loss. A gain or loss from fair value changes will be shown in other comprehensive income and will not be reclassified subsequently to profit or loss. Equity instruments measured at fair value through other comprehensive income are recognized initially at fair value plus transaction cost directly attributable to the asset. After initial recognition, each asset is measured at fair value, with changes in fair value included in other comprehensive income. Accumulated gains or losses recognized through other comprehensive income are directly transferred to retained earnings when the equity instrument is derecognized or its fair value substantially decreased. Dividends are recognized as finance income in profit or loss.

Impairment of financial assets

Financial assets carried at amortised cost and FVOCI are assessed for indicators of impairment at each reporting end date.

 

The expected credit losses associated with these assets are estimated on a forward-looking basis. A broad range of information is considered when assessing credit risk and measuring expected credit losses, including past events, current conditions, and reasonable and supportable forecasts that affect the expected collectability of the future cash flows of the instrument.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership to another entity.

1.13
Financial liabilities

The group recognises financial debt when the group becomes a party to the contractual provisions of the instruments. Financial liabilities are classified as either 'financial liabilities at fair value through profit or loss' or 'other financial liabilities'.

Other financial liabilities

Other financial liabilities, including borrowings, trade payables and other short-term monetary liabilities, are initially measured at fair value net of transaction costs directly attributable to the issuance of the financial liability. They are subsequently measured at amortised cost using the effective interest method. For the purposes of each financial liability, interest expense includes initial transaction costs and any premium payable on redemption, as well as any interest or coupon payable while the liability is outstanding.

Derecognition of financial liabilities

Financial liabilities are derecognised when, and only when, the group’s obligations are discharged, cancelled, or they expire.

SPOTMECHANIC LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 24 -
1.14
Equity instruments

Equity instruments issued by the parent company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer payable at the discretion of the company.

1.15
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 income statement 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 is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary 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 income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the group has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.16
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 inventories or non-current 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 group is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.17
Retirement benefits

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

The cost of providing benefits under defined benefit plans is determined separately for each plan using the projected unit credit method, and is based on actuarial advice.

 

The change in the net defined benefit liability arising from employee service during the year is recognised as an employee cost. The cost of plan introductions, benefit changes, settlements and curtailments are recognised as an expense in measuring profit or loss in the period in which they arise.

SPOTMECHANIC LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 25 -

The net interest element is determined by multiplying the net defined benefit liability by the discount rate, taking into account any changes in the net defined benefit liability during the period as a result of contribution and benefit payments. The net interest is recognised in profit or loss as other finance revenue or cost.

 

Remeasurement changes comprise actuarial gains and losses, the effect of the asset ceiling and the return on the net defined benefit liability excluding amounts included in net interest. These are recognised immediately in other comprehensive income in the period in which they occur and are not reclassified to profit and loss in subsequent periods.

The net defined benefit pension asset or liability in the balance sheet comprises the total for each plan of the present value of the defined benefit obligation (using a discount rate based on high quality corporate bonds), less the fair value of plan assets out of which the obligations are to be settled directly. Fair value is based on market price information, and in the case of quoted securities is the published bid price. The value of a net pension benefit asset is limited to the amount that may be recovered either through reduced contributions or agreed refunds from the scheme.

1.18
Share-based payments

Equity-settled share-based payments are measured at fair value at the date of grant by reference to the fair value of the equity instruments granted using the fair value model. The fair value determined at the grant date is expensed on a straight-line basis over the vesting period, based on the estimate of shares that will eventually vest. A corresponding adjustment is made to equity.

1.19
Leases

At inception, the group assesses whether a contract is, or contains, a lease within the scope of IFRS 16. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Where a tangible asset is acquired through a lease, the group recognises a right-of-use asset and a lease liability at the lease commencement date. Right-of-use assets are included within property, plant and equipment, apart from those that meet the definition of investment property.

The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date plus any initial direct costs and an estimate of the cost of obligations to dismantle, remove, refurbish or restore the underlying asset and the site on which it is located, less any lease incentives received.

 

The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The estimated useful lives of right-of-use assets are determined on the same basis as those of other property, plant and equipment. The right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.

The lease liability is initially measured at the present value of the lease payments that are unpaid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the group's incremental borrowing rate. Lease payments included in the measurement of the lease liability comprise fixed payments, variable lease payments that depend on an index or a rate, amounts expected to be payable under a residual value guarantee, and the cost of any options that the group is reasonably certain to exercise, such as the exercise price under a purchase option, lease payments in an optional renewal period, or penalties for early termination of a lease.

The lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is a change in: future lease payments arising from a change in an index or rate; the group's estimate of the amount expected to be payable under a residual value guarantee; or the group's assessment of whether it will exercise a purchase, extension or termination option. When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.

SPOTMECHANIC LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 26 -

The group has elected not to recognise right-of-use assets and lease liabilities for short-term leases of machinery that have a lease term of 12 months or less, or for leases of low-value assets including IT equipment. The payments associated with these leases are recognised in profit or loss on a straight-line basis over the lease term.

1.20
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.

1.21

New standards not yet effective

At the date of authorisation of these financial statements, there are no relevant and material new standards, amendments to standards, or interpretations which are not yet effective for the period ended 31 December 2023.

2
Critical accounting estimates and judgements

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, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

 

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are outlined below.

Key sources of estimation uncertainty
Useful economic lives of tangible assets

The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See Tangible fixed assets note for the carrying amount of property, plant and equipment and the depreciation accounting policy note above for the useful economic lives for each class of asset.

Used vehicle stock

Used vehicle stock is a depreciating stock item and devalues monthly, making the estimated stock value uncertain. The carrying value of used vehicle stock at the year end of the period was €29,890,010 (2022 - €35,485,000). Consideration has been given by the directors to the level of provision against vehicle stocks. In determining the provision required the directors have used guidance from independent valuation tools and their knowledge of the industry.

SPOTMECHANIC LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 27 -
3
Revenue
2023
2022
Revenue analysed by class of business
Sales of goods
37,021,622
44,553,958
Income from services provided
6,230,177
2,654,224
Commissions
2,119,185
1,060,126
Other income
-
21,696
45,370,984
48,290,004
2023
2022
Revenue analysed by geographical market
Europe
45,370,984
48,290,004
4
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
For audit services
Audit of the financial statements of the group and company
51,960
48,590
Audit of the financial statements of the company's subsidiaries
103,040
89,000
155,000
137,590
5
Operating loss
2023
2022
Operating loss for the year is stated after charging/(crediting):
Depreciation of property, plant and equipment
2,830,023
868,798
Amortisation of intangible assets (included within administrative expenses)
310
8,741
Expenses relating to short-term and low value leases
756,531
1,017,281
6
Employees

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

2023
2022
Number
Number
Total
253
300
SPOTMECHANIC LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
6
Employees
(Continued)
- 28 -

Their aggregate remuneration comprised:

2023
2022
Wages and salaries
4,985,364
7,015,433
Social security costs
863,028
1,168,933
Pension costs
14,973
75,989
5,863,365
8,260,355
7
Employees Company
The Company had no employees during the period.
8
Directors' remuneration
2023
2022
Remuneration for qualifying services
77,020
106,307
9
Investment income
2023
2022
Interest income
Financial instruments measured at amortised cost:
Bank deposits
4,702
27,639
10
Finance costs
2023
2022
Interest on bank overdrafts and loans
5,156,538
2,865,681
Interest on lease liabilities
110,576
180,674
Profit or loss on foreign exchange
(570,835)
-
0
Total interest expense
4,696,279
3,046,355
SPOTMECHANIC LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 29 -
11
Income tax expense
2023
2022
Current tax
UK corporation tax on profits for the current period
146,974
33,029

The charge for the year can be reconciled to the loss per the income statement as follows:

2023
2022
Loss before taxation
(13,385,211)
(19,055,515)
Expected tax credit based on a corporation tax rate of 23.52% (2022: 19.00%)
(3,148,202)
(3,620,548)
Effect of expenses not deductible in determining taxable profit
318,011
110,638
Income not taxable
(165,189)
(94,533)
Unutilised tax losses carried forward
(38,905)
(74,884)
Change in unrecognised deferred tax assets
3,035,039
5,837,538
Adjustment in respect of prior years
-
1,718
Effect from different tax rates in foreign subsidiaries
216,771
(2,126,900)
Other
(70,551)
-
Taxation charge for the year
146,974
33,029
12
Investments Company
Current
Non-current
2023
2022
2023
2022
Investments in subsidiaries
-
0
-
0
49,960,000
37,315,000
Fair value of financial assets carried at amortised cost

Except as detailed below the directors believe that the carrying amounts of financial assets carried at amortised cost in the financial statements approximate to their fair values.

Investment in subsidiary undertakings

Details of the company's principal operating subsidiaries are included in note 15.

SPOTMECHANIC LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
12
Investments Company
(Continued)
- 30 -
Movements in non-current investments
Shares in subsidiaries
Cost or valuation
At 1 January 2023
37,315,000
Additions
16,645,000
Disposals
(4,000,000)
At 31 December 2023
49,960,000
Carrying amount
At 31 December 2023
49,960,000
At 31 December 2022
37,315,000

During the year there was a further investments €16,645,000 into the subsidiary Spotawheel Group GmbH, and a return of €4,000,000 on the invested in AutoSP Poland.

13
Intangible assets
Computer Software
Cost
At 1 January 2022
40,800
Additions
1,036
At 31 December 2022
41,836
Foreign currency adjustments
105
At 31 December 2023
41,941
Amortisation and impairment
At 1 January 2022
4,040
Charge for the year
8,741
At 31 December 2022
12,781
Charge for the year
310
At 31 December 2023
13,091
Carrying amount
At 31 December 2023
28,850
At 31 December 2022
29,055
At 31 December 2021
36,768
SPOTMECHANIC LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 31 -
14
Property, plant and equipment
Freehold buildings
Leasehold buildings
Assets under construction
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
Cost
At 1 January 2022
207,503
1,890,516
98,269
388,006
265,415
34,866
2,884,575
Additions
100,638
1,635,597
261,037
201,872
280,675
7,286,902
9,766,721
Disposals
-
0
(527,288)
-
0
-
0
(2,958)
(14,020)
(544,266)
Reclassification of assets
-
0
338,195
(338,195)
-
0
-
0
-
0
-
0
Foreign currency adjustments
-
0
(20,775)
-
0
(19)
-
0
1,613
(19,181)
At 31 December 2022
308,141
3,316,245
21,111
589,859
543,132
7,309,361
12,087,849
Additions
11,472
1,206,240
12,871
16,147
32,274
26,107,146
27,386,150
Disposals
-
0
(499,175)
(6,853)
-
0
(7,311)
(2,188,393)
(2,701,732)
Reclassification of assets
-
0
-
0
(12,317)
-
0
-
0
-
0
(12,317)
Foreign currency adjustments
20,807
110,572
(10,013)
27,824
8,680
109,487
267,357
At 31 December 2023
340,420
4,133,882
4,799
633,830
576,775
31,337,601
37,027,307
Accumulated depreciation and impairment
At 1 January 2022
3,023
299,161
39
2,000
39,280
3,249
346,752
Charge for the year
10,698
493,634
-
0
71,183
70,256
223,027
868,798
Eliminated on disposal
-
0
-
0
-
0
-
0
(2,958)
(279)
(3,237)
Foreign currency adjustments
-
0
28,334
-
0
(1)
-
0
32
28,365
At 31 December 2022
13,721
821,129
39
73,182
106,578
226,029
1,240,678
Charge for the year
15,325
1,001,718
-
0
76,861
65,381
1,670,738
2,830,023
Impairment loss (profit or loss)
-
0
-
0
-
0
-
0
-
0
42,004
42,004
Eliminated on disposal
-
0
-
0
-
0
-
0
(1,520)
(104,999)
(106,519)
Foreign currency adjustments
-
0
28,038
-
0
26,438
-
0
-
0
54,476
At 31 December 2023
29,046
1,850,885
39
176,481
170,439
1,833,772
4,060,662
SPOTMECHANIC LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
14
Property, plant and equipment
Freehold buildings
Leasehold buildings
Assets under construction
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
(Continued)
- 32 -
Carrying amount analysed between owned assets and right-of-use assets
At 31 December 2023
Owned assets
311,374
-
4,760
457,349
406,336
29,503,829
30,683,648
Right-of-use assets
-
2,282,997
-
-
-
-
2,282,997
311,374
2,282,997
4,760
457,349
406,336
29,503,829
32,966,645
At 31 December 2022
Owned assets
294,420
-
21,072
516,677
436,554
7,083,332
8,352,055
Right-of-use assets
-
2,495,116
-
-
-
-
2,495,116
294,420
2,495,116
21,072
516,677
436,554
7,083,332
10,847,171
SPOTMECHANIC LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 33 -

The group has lease contracts for certain land and buildings from which it operates. Terms can vary significantly and the leases at the period end had up to 10 years remaining, with some due to end within 12 months. In addition, the group uses short-term leases (with a term of 12 months or less) where considered appropriate, and takes advantage of the recognition exemptions for such leases.

 

Property, plant and equipment includes right-of-use assets, as follows:

Right-of-use assets
2023
2022
Net values at the year end
Property
2,282,997
2,495,116
Total additions in the year
1,206,240
1,635,597
Depreciation charge for the year
Property
1,001,718
493,634
15
Subsidiaries

Details of the company's subsidiaries at 31 December 2023 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Indirect
AUTOSP GOC SINGLE MEMBER P.C.
Greece
Ordinary
100.00
-
AUTOSP POL SP. ZO.O.
Poland
Ordinary
100.00
-
SPOTAWHEEL GROUP Gmbh
Germany
Ordinary
100.00
-
TRADESPOT HOLDINGS Gmbh
Germany
Ordinary
100.00
-
TRADESP SINGLE MEMBER SOCIETE ANONYME
Greece
Ordinary
-
100.00
AUTOSP ROM S.R.L.
Romania
Ordinary
-
100.00
TRADESPOT GRE SINGLE MEMBER S.A.
Greece
Ordinary
-
100.00
TRADESPOT POL SP. ZO.O
Poland
Ordinary
-
100.00
TRADESPOT ROM S.R.L
Romania
Ordinary
-
100.00

The subsidiaries’ primary activity comprises of the provision of technical inspection, evaluation, buy, sell, promotion, rental, lease or any other automotive related services.

16
Inventories
2023
2022
Raw materials
32,115
98,035
Finished goods
29,857,895
35,386,965
29,890,010
35,485,000
SPOTMECHANIC LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
16
Inventories
(Continued)
- 34 -

Included within finished goods are goods in transit totalling €26,000 (2022 - €130,300) as well as provisions for obsolete inventory totalling €1,058,702 (2022 - €189,656).

17
Trade and other receivables
Current
Non-current
2023
2022
2023
2022
Trade receivables
5,850,669
1,869,983
-
-
Other receivables
1,579,733
1,347,579
188,628
104,292
Prepayments
641,199
105,636
-
-
8,071,601
3,323,198
188,628
104,292
18
Trade and other receivables Company
Current
Non-current
2023
2022
2023
2022
VAT recoverable
480
-
-
-
Amounts owed by fellow group undertakings
248,111
-
0
-
0
-
0
Other receivables
-
-
4,420,000
-
248,591
-
4,420,000
-
19
Trade receivables - credit risk
Fair value of trade receivables

The directors consider that the carrying amount of trade and other receivables differs from fair value as follows:

Carrying value
Fair value
2023
2022
2023
2022
Trade receivables net of allowances
5,850,669
1,869,983
5,850,669
1,869,983
Other debtors
1,768,361
1,451,871
1,768,361
1,451,871
Prepayments
641,199
105,636
641,199
105,636
8,260,229
3,427,490
8,260,229
3,427,490

No significant receivable balances are impaired at the reporting end date.

Exposure to credit risk in respect of trade receivables is mitigated by the group’s policy of only granting credit to certain customers after an appropriate evaluation of risk coupled with the findings from external reference agencies.

SPOTMECHANIC LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 35 -
20
Borrowings
Current
Non-current
2023
2022
2023
2022
Borrowings held at amortised cost:
Bank loans
1,590,783
2,685,641
58,100,391
42,426,733
Other loans
176,699
46,613
223,737
265,103
1,767,482
2,732,254
58,324,128
42,691,836

Included within bank loan are loans from Fasanara totalling €53,462,000 (2022 - €37,222,000) held in Tradespot Holdings GmbH. These loans are secured against the shares of the subsidiaries of Tradespot Holdings GmbH and their bank accounts have been pledged as collateral. This loan is divided into two classes, Class A and Class B, carrying interest of 10% and 13% respectively.

 

Included within bank loan are loans from Santander totalling €1,485,539 (2022 - €1,432,442) held in TradeSP SM SA, the loan is secured against the inventories. This facility carries interest at the Eurobank's base rate plus 0.6%.

21
Borrowings Company
Current
Non-current
2023
2022
2023
2022
Borrowings held at amortised cost:
Bank loans
1,590,783
955,783
2,941,228
4,044,217
Other loans
-
1,000,000
-
-
22
Liquidity risk
Up to 6 months
6 months to 1 year
1 – 5 years
5+ years
Total
At 31 December 2022
Borrowing
1,342,821
1,389,433
5,469,836
37,222,000
45,424,090
Lease liabilities
216,227
216,228
1,657,037
505,000
2,594,492
Trade payables
2,278,679
-
-
-
2,278,679
Other liabilities
2,385,559
-
98,293
-
2,483,852
6,223,286
1,605,661
7,225,166
37,727,000
52,781,113
At 31 December 2023
Borrowing
35,333
2,352,431
57,703,846
-
60,091,610
Lease liabilities
312,530
308,849
1,530,325
240,467
2,392,171
Trade payables
2,192,647
-
-
-
2,192,647
Other liabilities
2,546,376
-
1,840,976
-
4,387,352
5,086,886
2,661,280
61,075,147
240,467
69,063,780
SPOTMECHANIC LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
22
Liquidity risk
(Continued)
- 36 -
Liquidity risk management

Liquidity risk is the risk that the group will not be able to meet its financial obligations as they fall due. Liquidity is managed by the group’s central treasury function within policy guidelines set by the Board with prime areas of focus being liquidity and interest rate exposure. The group is financed primarily by revolving credit facilities. The directors have assessed the future funding requirements of the group and compared them to the level of committed available borrowing facilities. Committed facilities are maintained at levels in excess of planned requirements. The assessment included a review of financial forecasts, financial instruments, and cash flow projections. These forecasts and projections show that the group, taking account of reasonably possible scenarios, should be able to operate within the level of its borrowing facilities for the foreseeable future.

23
Fair value of financial liabilities

Except as detailed below, the directors consider that the carrying amounts of financial liabilities carried at amortised cost in the financial statements approximate to their fair values.

24
Trade and other payables
Current
Non-current
2023
2022
2023
2022
Trade payables
2,192,647
2,278,679
-
0
-
0
Accruals
1,816,531
628,134
-
0
-
0
Social security and other taxation
284,247
939,541
-
0
-
0
Other payables
445,598
817,884
1,840,976
98,293
4,739,023
4,664,238
1,840,976
98,293
25
Trade and other payables Company
2023
2022
Trade payables
438
-
0
Accruals
39,767
32,766
40,205
32,766
26
Fair value of financial liabilities Company

Except as detailed below, the directors consider that the carrying amounts of financial liabilities carried at amortised cost in the financial statements approximate to their fair values.

SPOTMECHANIC LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 37 -
27
Share-based payments

The group has implemented share based payments for its employees and executives, in particular, based on the existing agreements, the employees and executives of the subsidiaries of the group are granted with the right to receive equity shares of the parent company, given that specific vesting conditions have been met. None of the existing share based payment agreements are settled in cash. Services received in exchange for equity settled share based payments are measured at their fair value. In particular the fair value of the services received by executives and employees is recognised in accordance with IFRS 2 as an expense in the Statement of Comprehensive Income, with a corresponding increase in equity during the period in which the services are received. The fair value of the options is measured by the adoption of an appropriate valuation model according to the terms of each program.

Number of share options
Average exercise price
2023
2022
2023
2022
Outstanding at 1 January 2023
13,369
9,605
108.52
51.05
Granted in the period
20,360
3,764
102.10
255.16
Forfeited in the period
(2,270)
-
0
178.58
-
0
Outstanding at 31 December 2023
31,459
13,369
99.31
108.52
Exercisable at 31 December 2023
12,254
13,369
99.31
108.52
Options outstanding

All existing options are outstanding at the end of the current or comparative financial period.

28
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
Issued and fully paid
Ordinary A of €1.17192 each
100,000
100,000
117,192
117,190
Ordinary B of €1.15643 each
102,550
36,550
118,592
41,988
202,550
136,550
235,784
159,178
SPOTMECHANIC LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
28
Share capital
(Continued)
- 38 -
2023
2022
2023
2022
Preference share capital
Number
Number
Issued and fully paid
Preferred A of €1 each
79,568
79,568
79,568
79,568
Preferred B of €1 each
59,147
59,147
59,147
59,147
Preferred C of €1 each
68,348
68,348
68,348
68,348
Preferred D of €1 each
125,073
125,073
125,073
125,073
Preferred D2 of €1 each
19,199
-
19,199
-
Preferred E of €1 each
131,299
-
131,299
-
482,634
332,136
482,634
332,136
Preference shares classified as equity
482,634
332,136
Total equity share capital
718,418
491,314

In FY2021, the company issued a convertible loan (“CL”) totally amounting to €5,860,000. The convertible loan bears and accrues no interest and can be converted into company’s Preferred D Shares at any time before or on the maturity (being the date falling 18 months from the date of the CL agreement). Based on the contractual agreements, there is no repayment option for the convertible Loan. On April 1st, 2022, following the signing of the Shareholders Agreement the Convertible Loan was converted into company’s Preferred D Shares.

In the prior year, as per the Shareholders’ Agreement dated 01 April 2022 the Company issued 125,073 Preferred D Shares. As a result, the Company’s share capital and share premium increased by €31,230,169, out of which an amount of €25,370,169 relates to new subscriptions that were fully covered during the year and €5,860,000 relates to the settlement of the Convertible Loan issued in FY2021 as above.

 

In FY2023, as per the Shareholders agreement dated 08 August 2023, the company issued 66,000 ordinary B shares and 19,199 preference D2 and 131,299 preference E shares. As a result, the Company’s share capital and share premium increased by €10,513,000.

29
Share premium account
2023
2022
At the beginning of the year
40,221,186
8,991,017
Issue of new shares
10,285,896
31,230,169
At the end of the year
50,507,082
40,221,186

Details of the movements in share premium during the year are included in note 28.

SPOTMECHANIC LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 39 -
30
Lease liabilities
2023
2022
Maturity analysis
Within one year
687,245
650,793
In two to five years
1,614,996
1,994,933
In over five years
560,000
505,000
Total undiscounted liabilities
2,862,241
3,150,726
Future finance charges and other adjustments
(470,070)
(556,234)
Lease liabilities in the financial statements
2,392,171
2,594,492

Lease liabilities are classified based on the amounts that are expected to be settled within the next 12 months and after more than 12 months from the reporting date, as follows:

2023
2022
Current liabilities
621,379
432,455
Non-current liabilities
1,770,792
2,162,037
2,392,171
2,594,492
2023
2022
Amounts recognised in profit or loss include the following:
Interest on lease liabilities
110,576
180,674
31
Deferred taxation
2023
2022
Deferred tax liabilities
174,358
1,687
Deferred tax assets
(238,889)
(118,182)
(64,531)
(116,495)
Deferred tax assets are expected to be recovered after more than one year.

The following are the major deferred tax liabilities and assets recognised by the group and movements thereon during the current and prior reporting period.

SPOTMECHANIC LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
31
Deferred taxation
(Continued)
- 40 -
Tax losses
Retirement benefit obligations
Other short-term timing differences
Total
Liability at 1 January 2022
-
(2,422)
(26,818)
(29,240)
Deferred tax movements in prior year
Charge/(credit) to profit or loss
(6,735)
(15,055)
(65,465)
(87,255)
Liability at 1 January 2023
-
0
-
0
1,687
1,687
Asset at 1 January 2023
(6,735)
(17,477)
(93,970)
(118,182)
Deferred tax movements in current year
Charge/(credit) to profit or loss
6,735
-
45,453
52,188
Charge/(credit) to other comprehensive income
-
(224)
-
(224)
Liability at 31 December 2023
-
0
-
0
174,358
174,358
Asset at 31 December 2023
-
0
(17,701)
(221,188)
(238,889)
32
Retirement benefit schemes
2023
2022
Defined contribution schemes
Charge to profit or loss in respect of defined contribution schemes
14,973
75,989

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

Defined benefit scheme

The group also operates a defined benefit scheme for qualifying employees. Under the scheme the employees are entitled to retirement benefits of final salary on attainment of retirement age. No other post retirement benefits are provided.

 

The most recent actuarial valuations of plan assets and the present value of the defined benefit obligation were carried out at 31 December 2023 by RiAct Actuaries, Fellow of the Institute of Actuaries. The present value of the defined benefit obligation, the related current service cost and past service cost were measured using the projected unit credit method.

2023
2022
Key assumptions
%
%
Discount rate
3.2
3.8
Pension growth rate
2.1
2.2
Salary growth rate
2.5
2.5
Mortality Table
EA2012P
EAE2012P
Macauley Duration
6.80
6.84
Average remaining working life
23.17
22.99
SPOTMECHANIC LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
32
Retirement benefit schemes
(Continued)
- 41 -

The amounts included in the statement of financial position arising from the group's obligations in respect of defined benefit plans are as follows:

2023
2022
Present value of defined benefit obligations
30,219
16,839
Fair value of plan assets
(6,498)
(1,594)
Deficit in scheme
23,721
15,245
2023
2022
Movements in the present value of defined benefit obligations
At 1 January 2023
15,246
11,010
Current service cost
14,394
8,160
Benefits paid
-
(35,279)
Interest cost
579
110
Other
-
0
32,838
At 31 December 2023
30,219
16,839
2023
2022
The defined benefit obligations arise from plans funded as follows:
Wholly unfunded obligations
30,219
16,839
30,219
16,839
2023
2022
Movements in the fair value of plan assets
At 31 December 2022 & at 31 December 2023
-
-
0
Return on plan assets (excluding amounts included in net interest)
6,498
1,594
Sensitivity of the defined benefit obligations to changes in assumptions
Amounts recognised in the income statement
2023
2022
Costs/(income):
Current service cost
14,394
8,160
Net interest on defined benefit liability/(asset)
579
110
Total costs
14,973
8,270
SPOTMECHANIC LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
32
Retirement benefit schemes
(Continued)
- 42 -
Amounts recognised in other comprehensive income
2023
2022
Costs/(income):
Actuarial changes related to plan assets
(6,498)
(1,594)
Quoted
Unquoted
Quoted
Unquoted
2023
2023
2022
2022
Fair value of plan assets
Debt instruments
6,498
-
1,594
-
33
Other reserve
2023
2022
At the beginning of the year
1,377,659
463,585
Additions
(118,002)
914,074
At the end of the year
1,259,657
1,377,659

Other reserves consists of reserves for share based payments, remeasurement of defined benefit pension plans and deferred tax on defined benefit pension plans.

34
Reserve from business combination
2023
2022
At the beginning and end of the year
65,000
65,000
35
Currency translation reserve
2023
2022
At the beginning of the year
(221,308)
(176,558)
Translation gain/(loss) arising in the year
131,807
(44,750)
At the end of the year
(89,501)
(221,308)
36
Capital risk management

The group is not subject to any externally imposed capital requirements.

SPOTMECHANIC LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 43 -
37
Related party transactions

The company has taken advantage of the exemption contained within in FRS 101 and has therefore not disclosed transactions with wholly-owned entities which form part of the group.

38
Controlling party

The company and group are under control of Charilaos Arvanitis due to his significant shareholding.

39
Cash absorbed by operations
2023
2022
Loss for the year before income tax
(13,385,211)
(19,055,515)
Adjustments for:
Finance costs
4,696,279
3,046,355
Investment income
(4,702)
(27,639)
Depreciation and impairment of property, plant and equipment
2,872,027
877,539
Foreign exchange gains on cash equivalents
(131,807)
(44,750)
Other gains and losses
(570,835)
288,621
Pension scheme non-cash movement
8,475
4,236
Stock option plan to personnel
(92,000)
913,325
Increase in provisions
828,772
152,263
Movements in working capital:
Decrease/(increase) in inventories
4,766,220
(24,979,187)
Increase in trade and other receivables
(3,913,073)
(1,563,626)
Increase/(decrease) in trade and other payables
1,817,468
(8,206)
Cash absorbed by operations
(3,108,387)
(40,396,584)
2023-12-312023-01-01falseCCH SoftwareCCH Accounts Production 2024.310Mr C ArvanitisMr G DimopoulosMr J Iserte VicenteMr G 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