REGISTERED NUMBER: |
SPARSHATTS GROUP LIMITED |
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2024 |
REGISTERED NUMBER: |
SPARSHATTS GROUP LIMITED |
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2024 |
SPARSHATTS GROUP LIMITED (REGISTERED NUMBER: 11809056) |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MAY 2024 |
Page |
Company Information | 1 |
Balance Sheet | 2 |
Notes to the Financial Statements | 3 |
SPARSHATTS GROUP LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31 MAY 2024 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Statutory Auditors |
Chartered Accountants |
Fryern House |
125 Winchester Road |
Chandlers Ford |
Hampshire |
SO53 2DR |
SPARSHATTS GROUP LIMITED (REGISTERED NUMBER: 11809056) |
BALANCE SHEET |
31 MAY 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 4 |
CURRENT ASSETS |
Stocks | 5 |
Debtors | 6 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 7 |
NET CURRENT (LIABILITIES)/ASSETS | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
( |
) |
PROVISIONS FOR LIABILITIES | 10 |
NET (LIABILITIES)/ASSETS | ( |
) |
CAPITAL AND RESERVES |
Called up share capital |
Retained earnings | ( |
) |
SHAREHOLDERS' FUNDS | ( |
) |
In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered. |
The financial statements were approved by the Board of Directors and authorised for issue on |
SPARSHATTS GROUP LIMITED (REGISTERED NUMBER: 11809056) |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MAY 2024 |
1. | COMPANY INFORMATION |
Sparshatts Group Limited was incorporated on 6 February 2019 under the Companies Act 2006, as a private company limited by shares and is registered in England and Wales. The principal activity of Sparshatts Group Limited is the sale and service of second hand vehicles. The address of its head office and registered office is Unit 2, Station Industrial Estate, Duncan Road, Park Gate, Southampton, SO31 1BX. |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Finanical Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention. |
The presentation currency is £ sterling. |
Going concern |
The company is reliant on the continued support from its parent company and the directors, who believe it is appropriate for the financial statements to be prepared on the going concern basis. |
Related party exemption |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with the parent company of the group. |
Significant judgements and estimates |
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date, and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. |
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements. |
1) Leases |
A lease that does not transfer substantially all of the risks and rewards of ownership is classified as an operating lease and is therefore not included in the balance sheet. |
Turnover |
Turnover represents net sales during the year (excluding value added tax and discounts) adjusted for accrued and deferred income where applicable. |
Turnover relates to the sale and servicing of vehicles and commissions receivable. Vehicle sales are recognised when the goods are delivered to or collected by the customer. Turnover from the service of vehicles is recognised when the work is complete. Turnover arising from commissions is recognised when the customer is in receipt of the goods the commission relates to. |
SPARSHATTS GROUP LIMITED (REGISTERED NUMBER: 11809056) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2024 |
2. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
All fixed assets are initially recognised at cost and subsequently carried at cost less accumulated depreciation and accumulated impairment losses. |
The cost of fixed assets initially recognised includes its purchase price and any cost that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in a manner intended by management. |
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life as follows: |
Fixtures and fittings | 12 - 36 months straight line |
Motor vehicles | 12 - 36 months straight line |
Computer equipment | 12 - 36 months straight line |
The assets' residual values and useful lives are reviewed and adjusted, if appropriate, at the end of each reporting period. The effect of any change is accounted for prospectively. |
Fixed assets are derecognised on disposal or when no future economic benefits are expected. On disposal, the difference between the net disposal proceeds and the carrying amount is recognised in the Income Statement. |
Stocks |
Stock is stated at the lower of cost and net realisable value. |
Vehicle stock is based on the purchase price of the vehicle plus any costs in bringing the vehicle to a suitable condition to sell. Provisions against cost are made where appropriate where the directors assess the estimated selling price to be lower than cost. |
Work in progress is measured at the cost of labour and materials. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date except that the recognition of deferred tax assets is limited to the extent that the company anticipates generating sufficient taxable profits in the future to fully absorb the reversal of the underlying timing differences. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Operating lease commitments |
Rentals paid under operating leases are charged to the Income Statement on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to the Income Statement in the period to which they relate. |
Financial instruments |
Basic financial instruments are measured at amortised cost. |
Cash and cash equivalents |
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held on call with other banks and other short-term liquid investments with original maturities of three months or less. |
SPARSHATTS GROUP LIMITED (REGISTERED NUMBER: 11809056) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2024 |
2. | ACCOUNTING POLICIES - continued |
Warranty provision |
The warranty provision represents the expected future costs to be incurred in order to repair vehicles under the period of the warranty. |
3. | EMPLOYEES AND DIRECTORS |
The average number of employees during the year was |
4. | TANGIBLE FIXED ASSETS |
Fixtures |
and | Motor | Computer |
fittings | vehicles | equipment | Totals |
£ | £ | £ | £ |
COST |
At 1 June 2023 |
and 31 May 2024 |
DEPRECIATION |
At 1 June 2023 |
Charge for year |
At 31 May 2024 |
NET BOOK VALUE |
At 31 May 2024 |
At 31 May 2023 |
5. | STOCKS |
2024 | 2023 |
£ | £ |
Finished goods |
Work-in-progress |
The carrying value of stock includes £3,800,538 (2023: £3,416,498) pledged as security for liabilities. |
6. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2024 | 2023 |
£ | £ |
Trade debtors |
Other debtors |
Prepayments and accrued income |
SPARSHATTS GROUP LIMITED (REGISTERED NUMBER: 11809056) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2024 |
7. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2024 | 2023 |
£ | £ |
Vehicle stocking loan |
Trade creditors |
Amounts owed to group undertakings |
Corporation tax |
Social security and other taxes |
VAT | 168,994 | 219,686 |
Other creditors |
Accruals and deferred income |
8. | LEASING AGREEMENTS |
Minimum lease payments under non-cancellable operating leases fall due as follows: |
2024 | 2023 |
£ | £ |
Within one year |
Between one and five years |
In more than five years |
9. | SECURED DEBTS |
The following secured debts are included within creditors: |
2024 | 2023 |
£ | £ |
Other loans |
Accruals and deferred income |
The vehicle stocking loan (included in other loans) falling due within one year is secured against the stock items to which they relate. |
Within accruals and deferred income falling due within one year is an advance commission facility. This is secured against the property and assets of the company. |
10. | PROVISIONS FOR LIABILITIES |
2024 | 2023 |
£ | £ |
Other provisions |
Warranty provision | 125,306 | 204,403 |
Warranty provision |
£ |
Balance at 31 May 2023 | 204,403 |
Utilised during the year | (79,097 | ) |
Balance at 31 May 2024 | 125,306 |
SPARSHATTS GROUP LIMITED (REGISTERED NUMBER: 11809056) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2024 |
11. | DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006 |
The Report of the Auditors was unqualified. |
for and on behalf of |
12. | CONTINGENT LIABILITIES |
The company has entered into a guarantee arrangement in respect the bank borrowings of its parent company, All About The Buildings Limited. The bank loans are secured by way of a fixed and floating charge over all the company's assets. The total indebtedness at the balance sheet date is £1,930,418 (2023: £2,207,917). |
13. | RELATED PARTY DISCLOSURES |
During the period, purchases of £420,509 (2023: £491,333) were made from MediaQuest Ltd, a company in which Mr L Jones is a shareholder and director. The balance due to MediaQuest Ltd at the year end was £39,272 (2023: £38,548). |
14. | ULTIMATE PARENT COMPANY AND ULTIMATE CONTROLLING PARTY |
The company is a subsidiary of All About The Buildings Limited which is the ultimate parent company incorporated in England & Wales. The registered office address is Unit 2, Station Industrial Estate, Duncan Road, Park Gate, Southampton, SO31 1BX. |
The largest and smallest group in which the results of the company are consolidated is that headed by All About The Buildings Limited, incorporated in England & Wales. The consolidated accounts of this company are available to the public and may be obtained from Companies House. No other group accounts include the results of the company. |
The directors do not consider there to be any one individual controlling party. |