Registered number
05452662
Independent Car Sales & Servicing Ltd
Report and Accounts
31 May 2024
Independent Car Sales & Servicing Ltd
Report and accounts
Contents
Page
Directors' report 1
Accountants' report 2
Profit and loss account 3
Balance sheet 4
Statement of changes in equity 5
Notes to the accounts 6
Independent Car Sales & Servicing Ltd
Registered number: 05452662
Balance Sheet
as at 31 May 2024
Notes 2024 2023
£ £
Fixed assets
Tangible assets 3 12,200 12,058
Current assets
Stocks 6,000 6,000
Debtors 4 43,173 125,362
Cash at bank and in hand 88,519 69,138
137,692 200,500
Creditors: amounts falling due within one year 5 (103,198) (167,100)
Net current assets 34,494 33,400
Total assets less current liabilities 46,694 45,458
Provisions for liabilities (1,942) (1,342)
Net assets 44,752 44,116
Capital and reserves
Called up share capital 40 40
Profit and loss account 44,712 44,076
Shareholders' funds 44,752 44,116
The directors are satisfied that the company is entitled to exemption from the requirement to obtain an audit under section 477 of the Companies Act 2006.
The members have not required the company to obtain an audit in accordance with section 476 of the Act.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of accounts.
The accounts have been prepared and delivered in accordance with the special provisions applicable to companies subject to the small companies regime. The profit and loss account has not been delivered to the Registrar of Companies.
Mr R Johnston
Director
Approved by the board on 17 February 2025
Independent Car Sales & Servicing Ltd
Notes to the Accounts
for the year ended 31 May 2024
1 Accounting policies
Basis of preparation
The accounts have been prepared under the historical cost convention and in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland.
Turnover
Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services. Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer. Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs.
Tangible fixed assets
Tangible fixed assets are measured at cost less accumulative depreciation and any accumulative impairment losses. Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write off the cost, less estimated residual value, of each asset evenly over its expected useful life, as follows:
Plant and machinery 25% Reducing Balance
Fixtures, fittings, tools and equipment 25% Reducing Balance
Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first in first out method. The carrying amount of stock sold is recognised as an expense in the period in which the related revenue is recognised.
Debtors
Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts.
Creditors
Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method.
Taxation
A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period. Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted.
Provisions
Provisions (ie liabilities of uncertain timing or amount) are recognised when there is an obligation at the reporting date as a result of a past event, it is probable that economic benefit will be transferred to settle the obligation and the amount of the obligation can be estimated reliably.
Leased assets
A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. All other leases are classified as operating leases. The rights of use and obligations under finance leases are initially recognised as assets and liabilities at amounts equal to the fair value of the leased assets or, if lower, the present value of the minimum lease payments. Minimum lease payments are apportioned between the finance charge and the reduction in the outstanding liability using the effective interest rate method. The finance charge is allocated to each period during the lease so as to produce a constant periodic rate of interest on the remaining balance of the liability. Leased assets are depreciated in accordance with the company's policy for tangible fixed assets. If there is no reasonable certainty that ownership will be obtained at the end of the lease term, the asset is depreciated over the lower of the lease term and its useful life. Operating lease payments are recognised as an expense on a straight line basis over the lease term.
Pensions
Contributions to defined contribution plans are expensed in the period to which they relate.
2 Employees 2024 2023
Number Number
Average number of persons employed by the company 14 14
3 Tangible fixed assets
Plant and machinery etc Motor vehicles Total
£ £ £
Cost
At 1 June 2023 153,120 32,559 185,679
Additions - 4,052 4,052
At 31 May 2024 153,120 36,611 189,731
Depreciation
At 1 June 2023 143,207 30,414 173,621
Charge for the year 2,478 1,432 3,910
At 31 May 2024 145,685 31,846 177,531
Net book value
At 31 May 2024 7,435 4,765 12,200
At 31 May 2023 9,913 2,145 12,058
4 Debtors 2024 2023
£ £
Trade debtors 15,006 9,268
Other debtors 28,167 116,094
43,173 125,362
5 Creditors: amounts falling due within one year 2024 2023
£ £
Bank loans and overdrafts 3,465 3,059
Trade creditors 29,876 124,818
Corporation tax 48,153 36,963
Other taxes and social security costs 9,798 -
Other creditors 11,906 2,260
103,198 167,100
6 Events after the reporting date
Subsequent to the year-end, the parent company has made repayments of £22,951 against the loan guaranteed by the company. At the date of approval of these financial statements, the outstanding balance of the loan guaranteed is £263,101.
7 Contingent liabilities
The company has provided a guarantee over a loan facility obtained by its parent company for the purchase of the company’s own shares. The total amount guaranteed as of 31st May 2024 is £275,000. No amount has been recognised as a liability at the reporting date, as the directors do not expect any claims to arise under the guarantee.
8 Related party transactions
The company has provided a financial guarantee in favour of RLJ Holdings Ltd, its parent company. This guarantee relates to a loan facility of £275,000 obtained by the parent company during the year for the purpose of acquiring the shares of the company. The guarantee is considered to be a related party transaction under Section 33 of FRS 102. No fees or consideration were received by the company for providing this guarantee.
9 Other information
Independent Car Sales & Servicing Ltd is a private company limited by shares and incorporated in England. Its registered office is:
Independent House, School Lane
Chandlers Ford
Eastleigh
Hampshire
SO53 4DQ
Independent Car Sales & Servicing Ltd 05452662 false 2023-06-01 2024-05-31 2024-05-31 VT Final Accounts July 2024 Mr R Johnston No description of principal activity 05452662 2022-06-01 2023-05-31 05452662 core:WithinOneYear 2023-05-31 05452662 core:ShareCapital 2023-05-31 05452662 core:RetainedEarningsAccumulatedLosses 2023-05-31 05452662 2023-06-01 2024-05-31 05452662 bus:PrivateLimitedCompanyLtd 2023-06-01 2024-05-31 05452662 bus:AuditExemptWithAccountantsReport 2023-06-01 2024-05-31 05452662 bus:Director40 2023-06-01 2024-05-31 05452662 1 2023-06-01 2024-05-31 05452662 2 2023-06-01 2024-05-31 05452662 core:PlantMachinery 2023-06-01 2024-05-31 05452662 core:Vehicles 2023-06-01 2024-05-31 05452662 1 2023-06-01 2024-05-31 05452662 countries:England 2023-06-01 2024-05-31 05452662 bus:FRS102 2023-06-01 2024-05-31 05452662 bus:FilletedAccounts 2023-06-01 2024-05-31 05452662 2024-05-31 05452662 core:WithinOneYear 2024-05-31 05452662 core:ShareCapital 2024-05-31 05452662 core:RetainedEarningsAccumulatedLosses 2024-05-31 05452662 core:PlantMachinery 2024-05-31 05452662 core:Vehicles 2024-05-31 05452662 2023-05-31 05452662 core:PlantMachinery 2023-05-31 05452662 core:Vehicles 2023-05-31 iso4217:GBP xbrli:pure