Company registration number 00586621 (England and Wales)
HAWKINS MOTORS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
HAWKINS MOTORS LIMITED
COMPANY INFORMATION
Directors
Mr W A J Hawkins
Mr W J Hawkins
Mr A J Hawkins
Company number
00586621
Auditor
Phillips Frith LLP
9 Tregarne Terrace
St Austell
Cornwall
PL25 4DD
HAWKINS MOTORS LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Statement of income and retained earnings
7
Statement of financial position
8
Statement of cash flows
9
Notes to the financial statements
10 - 21
HAWKINS MOTORS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 1 -

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

Fair review of the business

The directors consider that the company's key financial performance indicators are those that communicate the financial performance and strengths of the company as a whole, these being turnover, net profit and reserves.

 

The company has achieved another year of record sales, a trend that appears to be reflected in the motor trade in general. Used vehicle values have stabilised following a period of flux, though prices could be set to rise with the flow of new vehicle stock into the marketplace being squeezed by manufacturers.

 

The company experienced growth across its vehicle sales and parts departments. The company has reported another year of profit, with margins holding steady.

 

Looking forward, the company holds a significant order book for new vehicles and since the year end, has opened a new Kia showroom and premium used vehicle forecourt.

 

At present the company trades from seven different locations throughout Cornwall and holds six different franchises as well as having a centralised parts hub. The directors believe that this diversification provides the best model for continued success.

Principal risks and uncertainties

The principal business risk facing the company continues to be the general economic climate. However, the directors do not consider that this will significantly curtail the operations of the business.

 

Demand for both new and used vehicles has increased over the past year. However, new vehicle targets have been set to meet the phasing out of fossil fuel vehicles, which are challenging. New vehicle stock is not as readily available as it has previously been. This may lead to an increase in used vehicle demand and subsequently, prices.

 

The directors are pleased to still be in a strong financial position having no external borrowing and a well diversified selection of dealer franchises, although they continue to apply a more cautious approach to trading and investment for the foreseeable future.

Section 172(1) statement

The directors consider, in good faith, that they have complied with the requirements of Section 172(1)(a)-(f) of the Companies Act 2006 in their decision making and the performance of their duties. Key decisions are always discussed at director level where there are over 150 years automotive industry experience.

On behalf of the board

Mr W J Hawkins
Mr A J Hawkins
Director
Director
20 December 2024
HAWKINS MOTORS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 2 -

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

 

The principal activity of the company continued to be that of a motor dealership.

Directors

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

Mr W A J Hawkins
Mr W J Hawkins
Mr A J Hawkins
Results and dividends

The results for the year are set out on page 7.

Ordinary dividends were paid amounting to £4,600,000. The directors do not recommend payment of a further dividend.

Energy and Emissions Reporting

This section includes the company's mandatory reporting of energy and greenhouse gas emissions for the year end 30th June 2023, pursuant to the Companies (Directors Report) and Limited Liability Partnership (Energy and Carbon Report) Regulations 2018, implementing the governments Streamlined Energy and Carbon Reporting (SECR) policy.

 

The table below includes energy consumption (reported as kWh) and greenhouse gas emissions for the sources required by the regulations, along with the intensity ratio:

2024
2023
Total energy consumption - Used for Emissions Calcualtion (kWh)
1,388,200
1,539,300
Emissions - purchased electricty (tCO2e)
65.37
47.21
Emissions - purchased gas (tCO2e)
7.96
12.84
Emissions - transport fuel, scope 1 (tCO2e)
254.10
258.69
Total Gross reported emissions
327.43
318.74
Turnover (£m)
117
109
Intensity ratio: Tunover (tCO2e/£m)
2.80
2.92

We have followed the 2019 HM Government Environmental Reporting Guidelines. We have also used the GHG Reporting Protocol – Corporate Standard and have used the 2020 UK Government’s Conversion Factors for Company Reporting.

The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2e per £ of turnover, the recommended ratio for the sector.

During the reporting period, the following energy efficiency actions have been taken:

- Investment in electric charging points across the group

- A PV system is installed at some of our sites

- Investment has been made in LED lighting, particularly at our new Blackwater and Indian Queens showrooms

- The use of electric vehicles for business related travel by staff and as company vehicles where possible.

- Having a fleet of electric delivery vans for use in the parts department

Research and development

The company does not carry out any research and development activities.

HAWKINS MOTORS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 3 -
Employee involvement

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

 

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

Statement of directors' responsibilities

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

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

Strategic Report

The information required by schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 is included in the Strategic Report on page 1 in accordance with Section 414C (11) of the Companies Act 2006.

On behalf of the board
Mr W J Hawkins
Mr A J Hawkins
Director
Director
20 December 2024
HAWKINS MOTORS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF HAWKINS MOTORS LIMITED
- 4 -
Opinion

We have audited the financial statements of Hawkins Motors Limited (the 'company') for the year ended 30 June 2024 which comprise the statement of income and retained earnings, the balance sheet, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the 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 company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

HAWKINS MOTORS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF HAWKINS MOTORS LIMITED
- 5 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified 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 company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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.

- Enquiry of management and those charged with governance around actual and potential litigation and claims plus consideration of compliance functions to identify any instances of non-compliance with laws and regulations.

- Reviewing legal fee invoices to identify any instances of non-compliance with laws and regulations.

- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.

- Auditing the risk of management override of controls, including through review of journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business.

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

 

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

HAWKINS MOTORS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF HAWKINS MOTORS LIMITED
- 6 -

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.

Amy Sole
(Senior Statutory Auditor)
for and on behalf of Phillips Frith LLP
Chartered Accountants
9 Tregarne Terrace
St Austell
Cornwall
PL25 4DD
Date:
23 December 2024
HAWKINS MOTORS LIMITED
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 30 JUNE 2024
- 7 -
2024
2023
Notes
£
£
Turnover
117,160,846
108,568,251
Cost of sales
(104,038,675)
(96,289,700)
Gross profit
13,122,171
12,278,551
Administrative expenses
(9,098,971)
(8,674,234)
Other operating income
9,000
9,750
Operating profit
3
4,032,200
3,614,067
Interest payable and similar expenses
7
(251,114)
(282,330)
Profit before taxation
3,781,086
3,331,737
Taxation
8
(948,699)
(765,220)
Profit for the financial year
2,832,387
2,566,517
Retained earnings at 1 July 2023
27,425,479
24,858,962
Dividends
(4,600,000)
-
0
Retained earnings at 30 June 2024
25,657,866
27,425,479

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

HAWKINS MOTORS LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
30 JUNE 2024
30 June 2024
- 8 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
9
3,000
3,000
Tangible assets
10
1,291,571
1,285,915
Investments
11
130,538
130,538
1,425,109
1,419,453
Current assets
Stocks
12
16,607,451
19,279,589
Debtors
13
16,201,052
18,853,032
Cash at bank and in hand
4,505,256
1,570,540
37,313,759
39,703,161
Creditors: amounts falling due within one year
14
(12,729,621)
(13,335,906)
Net current assets
24,584,138
26,367,255
Total assets less current liabilities
26,009,247
27,786,708
Provisions for liabilities
15
(346,806)
(356,654)
Net assets
25,662,441
27,430,054
Capital and reserves
Called up share capital
18
1,902
1,902
Revaluation reserve
2,575
2,575
Capital redemption reserve
98
98
Profit and loss reserves
25,657,866
27,425,479
Total equity
25,662,441
27,430,054
The financial statements were approved by the board of directors and authorised for issue on 20 December 2024 and are signed on its behalf by:
Mr W J Hawkins
Mr A J Hawkins
Director
Director
Company Registration No. 00586621
HAWKINS MOTORS LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2024
- 9 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
21
8,557,975
(1,097,593)
Interest paid
(251,114)
(282,330)
Income taxes paid
(565,351)
(1,068,392)
Net cash inflow/(outflow) from operating activities
7,741,510
(2,448,315)
Investing activities
Purchase of tangible fixed assets
(242,754)
(297,474)
Proceeds on disposal of tangible fixed assets
35,960
181,653
Net cash used in investing activities
(206,794)
(115,821)
Financing activities
Dividends paid
(4,600,000)
-
0
Net cash used in financing activities
(4,600,000)
-
0
Net increase/(decrease) in cash and cash equivalents
2,934,716
(2,564,136)
Cash and cash equivalents at beginning of year
1,570,540
4,134,676
Cash and cash equivalents at end of year
4,505,256
1,570,540
HAWKINS MOTORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
- 10 -
1
Accounting policies
Company information

Hawkins Motors Limited is a company limited by shares incorporated in England and Wales. The registered office is 57 Gwindra Road, St Stephen, St Austell, Cornwall PL26 7LB.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out in the directors report.

1.2
Going concern

The accounts have been prepared on the assumption that the company is able to carry on business as a going concerntrue, which the directors consider appropriate.

 

Trade since the year end has remained consistent. The company has no financial borrowing, healthy reserves and a strong balance sheet position that will enable it to withstand any adverse economic effects arising in the foreseeable future.

1.3
Turnover

Turnover represents the net amount invoiced to customers less discounts, excluding VAT and sales of fixed assets. In the opinion of the directors the markets supplied do not differ substantially from each other nor has the company carried on business of substantially different classes. The turnover and profit before taxation are attributable to the principal activities of the company and all arises in the United Kingdom.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on handover of the vehicle) and the amount of revenue can be measured reliably.

Revenue from the provision of workshop services is recognised on completion when the invoice is raised.

1.4
Tangible fixed assets

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

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

Leasehold improvements
2% per annum on the straight line method
Plant, machinery and equipment
20% per annum on the straight line and reducing balance methods
Computer equipment
20% per annum on the straight line method
Motor vehicles
25% per annum on the reducing balance method
Cruiser
5% per annum on the straight line method

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

HAWKINS MOTORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 11 -
1.5
Impairment of fixed assets

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

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.

1.6
Stock

Stock and work in progress are stated at the lower of cost and estimated selling price.

 

Estimated selling price less costs to complete and sell is based on the estimated selling price of the goods less any estimated completion or selling costs likely to be incurred on the sale.

 

The company has applied the accounting treatment required by FRS 102 Section 13 to its vehicle consignment stock.

Where the interest free consignment period has expired, vehicles are included in the statement of financial position as stock with a matching liability for the purchase price included in trade creditors.

 

A review for obsolete stock is carried out on a timely basis and any losses of stocks are recognised as an expense in the period in which the write-down or loss occurs.

1.7
Cash and cash equivalents

Cash at bank and in hand are basic financial assets and includes only cash in hand.

1.8
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price. Financial assets are all receivable within one year are therefore not amortised.

HAWKINS MOTORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 12 -
Basic financial liabilities

Basic financial liabilities, including creditors and loans from fellow group companies, are initially recognised at transaction price. Financial liabilities are all potentially payable within one year are therefore not amortised.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities as payment is due within one year or less.

Derecognition of financial liabilities

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

Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.

1.9
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

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.

1.10
Provisions

Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

 

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation.

 

1.11
Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

1.12
Retirement benefits

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

HAWKINS MOTORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 13 -
2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on experience and industry knowledge. Actual results may differ from these estimates.

 

The primary judgements and estimates made in the financial statements are depreciation rates of fixed assets and adjustments to the carrying value of stock and provisions.

 

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.

These judgements and estimates are not material to the company.

3
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Depreciation of owned tangible fixed assets
204,646
232,098
Profit on disposal of tangible fixed assets
(3,508)
(39,789)
Cost of stocks recognised as an expense
102,158,517
95,007,057
4
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
43,865
41,600
For other services
All other non-audit services
10,375
8,750
5
Employees

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

2024
2023
Number
Number
Sales
95
92
Servicing and repairs
101
96
Administration and clerical
41
38
Total
237
226
HAWKINS MOTORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
5
Employees
(Continued)
- 14 -

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
5,949,886
5,775,479
Social security costs
726,873
658,191
Pension costs
288,134
261,570
6,964,893
6,695,240
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
130,924
110,924
Directors pension
89,996
79,490
220,920
190,414
7
Interest payable and similar expenses
2024
2023
£
£
Other finance costs:
Other interest
251,114
282,330
8
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
958,547
665,352
Deferred tax
Origination and reversal of timing differences
(9,848)
99,868
Total tax charge
948,699
765,220
HAWKINS MOTORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
8
Taxation
(Continued)
- 15 -

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

2024
2023
£
£
Profit before taxation
3,781,086
3,331,737
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 20.49%)
945,272
682,673
Tax effect of expenses that are not deductible in determining taxable profit
1,625
6,867
Deferred tax charge/ (credit) for the year
(9,848)
99,868
Depreciation in excess of capital allowances
21,903
25,718
Corporation tax effect of profit on disposal of assets
(877)
(8,148)
Group loss relief
(9,376)
(41,758)
Tax expense for the year
948,699
765,220
9
Intangible fixed assets
Apartment rights
£
Cost
At 1 July 2023 and 30 June 2024
3,000
Amortisation and impairment
At 1 July 2023 and 30 June 2024
-
0
Carrying amount
At 30 June 2024
3,000
At 30 June 2023
3,000

The historical cost of the apartment rights was £23,000 in 1990.

HAWKINS MOTORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 16 -
10
Tangible fixed assets
Freehold land
Leasehold improvements
Plant, machinery and equipment
Computer equipment
Motor vehicles
Cruiser
Total
£
£
£
£
£
£
£
Cost
At 1 July 2023
5,550
538,505
2,212,121
174,482
718,339
311,401
3,960,398
Additions
-
0
-
0
91,550
-
0
151,204
-
0
242,754
Disposals
-
0
-
0
-
0
-
0
(59,978)
-
0
(59,978)
At 30 June 2024
5,550
538,505
2,303,671
174,482
809,565
311,401
4,143,174
Depreciation and impairment
At 1 July 2023
-
0
109,895
1,601,787
172,082
479,318
311,401
2,674,483
Depreciation charged in the year
-
0
10,629
139,467
2,400
52,150
-
0
204,646
Eliminated in respect of disposals
-
0
-
0
-
0
-
0
(27,526)
-
0
(27,526)
At 30 June 2024
-
0
120,524
1,741,254
174,482
503,942
311,401
2,851,603
Carrying amount
At 30 June 2024
5,550
417,981
562,417
-
0
305,623
-
0
1,291,571
At 30 June 2023
5,550
428,610
610,334
2,400
239,021
-
0
1,285,915
HAWKINS MOTORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 17 -
11
Fixed asset investments
2024
2023
£
£
Vintage motorcycles
130,538
130,538

The cost of the assets is £136,344 (2023: £136,344).

12
Inventories
2024
2023
£
£
Work in progress
429,201
447,864
Finished goods and goods for resale
16,178,250
18,831,725
16,607,451
19,279,589

Included within finished goods and goods for resale is vehicle consignment stock of £569,328 (2023: £1,373,878) which are considered to be, in substance, assets of the company as at the statement of financial position date.

13
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
6,529,924
6,699,582
Amounts owed by group undertakings
17,085
3,593,706
Amounts due from connected companies
9,604,536
8,526,615
Prepayments and accrued income
49,507
33,129
16,201,052
18,853,032
14
Creditors: amounts falling due within one year
2024
2023
£
£
Payments received on account
359,761
416,259
Trade creditors
8,909,329
11,071,865
Corporation tax
658,269
265,074
Other taxation and social security
525,913
203,345
Other creditors
1,406,511
781,318
Accruals and deferred income
869,838
598,045
12,729,621
13,335,906
HAWKINS MOTORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 18 -
15
Provisions for liabilities
2024
2023
£
£
Potential GAP insurance and PCP contract claims
159,100
159,100
Movements on provisions:
Potential GAP insurance and PCP contract claims
£
At 1 July 2023 and 30 June 2024
159,100

A provision of £159,100 (2023: £159,100) is recognised at the year end for potential claims in respect of GAP insurance policies and PCP contracts sold in earlier years. The costs to settle these claims are expected to be incurred in the coming financial years. The provision is a calculated estimate based on claims to date, the total income received in the prior years and the number of policies and/ or contracts sold.

 

16
Deferred taxation

Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
187,706
197,554
There were no deferred tax movements in the year.
17
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
198,138
182,080

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

HAWKINS MOTORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 19 -
18
Share capital
2024
2023
£
£
Ordinary share capital
Allotted, issued and fully paid
1,902 ordinary shares of £1 each
1,902
1,902
1,902
1,902

The company has one class of ordinary shares which carry no right to fixed income.

19
Ultimate controlling party

Throughout the year the immediate parent company was Hawkins Holdings Limited (a company incorporated in the UK) which was controlled by members of the Hawkins family who are directors of Hawkins Motors Limited. Its registered office is 57 Gwindra Road, St Stephen, St Austell, Cornwall PL26 7LB. The ultimate controlling parties were the members of the Hawkins family who are the shareholders in Hawkins Holdings Limited.

HAWKINS MOTORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 20 -
20
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2024
2023
£
£
Aggregate compensation
130,924
110,924
Transactions
During the year the company had the following transactions with related parties:
2024
2023
Net
Balance at
Net
Balance at
Transactions
year end
Transactions
year end
Related party:
£
£
£
£
First City Rental Limited, a company controlled by the directors of Hawkins Motors Limited:
Purchases from First City Rental Limited
3,383,662
155,465
4,482,829
659,173
Sales to First City Rental Limited
3,126,816
200,185
4,346,657
913,989
Loan from First City Rental Limited
400,000
1,144,352
-
744,352
Vehicle Equipment Limited, a company controlled by WJ Hawkins (director):
Purchases from Vehicle Equipment Limited
638,859
57,569
349,406
97,825
Sales to Vehicle Equipment Limited
-
-
7,274
4,283
H Developments Cornwall Limited, a company controlled by WJ Hawkins and AJ Hawkins (directors):
Loan to H Developments Cornwall Limited
2,440
1,415,116
5,339
1,412,676
A30 Business Park Limited, a 100% subsidiary of H Developments Cornwall Limited:
Loan to A30 Business Park Limited
1,406,532
6,146,756
911,896
4,740,224
Hayle Housing Limited, a 100% subsidiary company of Hawkins Holdings Limited:
Loan to Hayle Housing Limited
-
1,484,820
51,738
1,484,820
H Construction (Cornwall) Limited, a company controlled by WJ Hawkins and AJ Hawkins (directors):
Loan to H Construction (Cornwall) Limited
-
402,491
20,000
402,491
Blue Water Construction (Cornwall) Limited, a company controlled by the brother of WJ Hawkins and AJ Hawkins (directors):
Loan to Blue Water Construction (Cornwall) Limited
335
171,674
7,064
171,339
HAWKINS MOTORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
20
Related party transactions
(Continued)
- 21 -
Guarantees
Hawkins Motors Limited has given security to Lloyds TSB in the form of a guarantee up to £300,000 for the liabilities of First City Rental Limited.
Disclosure of group transactions
The company was a wholly owned subsidiary of Hawkins Holdings Limited and has used the exemption in FRS102 Section 33 for disclosure of group transactions.
Advances and credits with directors
There were no transactions with directors during the period.
21
Cash generated from operations
2024
2023
£
£
Profit for the year after tax
2,832,387
2,566,517
Adjustments for:
Taxation charged
948,699
765,220
Finance costs
251,114
282,330
Gain on disposal of tangible fixed assets
(3,508)
(39,789)
Depreciation and impairment of tangible fixed assets
204,646
232,098
Movements in working capital:
Decrease/(increase) in stocks
2,672,137
(4,746,474)
Decrease/(increase) in debtors
2,525,275
(3,575,325)
(Decrease)/increase in creditors
(872,775)
3,417,830
Cash generated from/(absorbed by) operations
8,557,975
(1,097,593)
22
Analysis of changes in net funds
1 July 2023
Cash flows
30 June 2024
£
£
£
Cash at bank and in hand
1,570,540
2,934,716
4,505,256
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